ARC Group Worldwide, Inc. Reports Fourth Quarter Net Income Of $1.6 Million And $3.0 Million For The Full Fiscal Year Ended June

 ARC Group Worldwide, Inc. Reports Fourth Quarter Net Income Of $1.6 Million
        And $3.0 Million For The Full Fiscal Year Ended June 30, 2013

PR Newswire

DELAND, Fla., Oct. 4, 2013

DELAND, Fla., Oct.4, 2013 /PRNewswire/ --

Fourth Quarter June 30, 2013 and Full Fiscal Year Highlights

  oFourth quarter reported Net Revenues grew 153.7% over fourth quarter of
    the prior year. Full fiscal year reported Net Revenues grew 125.3% over
    prior year results.
  oFourth quarter Adjusted Earnings of $1.7 million and full fiscal year
    Adjusted Earnings of $4.7 million. Fourth quarter Adjusted EPS was $0.30
    and full fiscal year Adjusted EPS was $0.85
  oFull-year Adjusted EBITDA of $10.1 million
  oFull fiscal year Cash Flow Provided by Operating Activities was up $7.4
    million
  oBank Debt issued in connection with recent acquisition pay down of 35%

ARC Group Worldwide, Inc. (NASDAQ Capital Market: ARCW; "ARC") ARC Group
Worldwide, Inc. ("ARC" or "the Company") reported today fourth quarter 2013
net income of $1.6 million and $3.0 million for fiscal year ending June 30,
2013. The fourth quarter and full year results are driven by improved
performance in all of our manufacturing operations and higher sales revenue
resulting from the reverse acquisition between ARC and Quadrant Metals
Technologies (QMT) and the acquisition of Advanced Forming Technologies, Inc.
(AFT) and AFT-Hungary Kft., (AFT-H). ARC also reported adjusted earnings per
share (Adjusted EPS) of $0.30 for the fourth quarter 2013 and $0.85 for the
fiscal year ending June 30, 2013.

For the fiscal year ending June 30, 2013, the Company's total sales were $68.5
million, growth of 125.3%, or $38.1 million, over $30.4 million in fiscal year
2012. Sales for the fourth quarter ending June 30, 2013 amounted to $19.5
million compared to $7.7 million in the prior year fourth quarter an increase
of 153.7% or $11.8 million.

Growth in the precision components segment of the Company's business has been
driven by increased demand for components manufactured by the Company's three
metal injection molding ("MIM") businesses. These three companies, FloMet LLC,
AFT, and AFT-H are the pioneers and recognized technological leaders in the
industry. MIM is a cost effective method of producing high volume precision
metal components and is gaining increasing adoption throughout industries such
as medical devices, automotive, consumer durables, defense and firearms. The
MIM businesses have had a positive impact on the Company's sales and we
anticipate sales to continue to increase as the market demand for components
increases. The Company's continuous improvement focus and strategic
investments in technologically advanced capital equipment, like robotics and
automation, have allowed it to increase efficiencies and reduce costs while
also significantly increasing available capacity for growing demand. The
Company reported 27% gross margins for the fiscal year ending June 30, 2013
and 28% in the fourth quarter 2013.

Commenting on the recent MIM performance, Robert Marten, CEO of the QMT-MIM
division stated, "We now unequivocally have the world leader in MIM and have
integrated our three MIM factories into a world class, global MIM operation.
We are focused on continuing to provide exceptional product quality and
service to our customers, as well as further strengthening our position in the
MIM industry by growing our existing operations, vertically integrating and
opportunistically evaluating acquisitions."

"We are very pleased to now run the world's leader in MIM and look forward to
continued growth in that division," said ARC Chairman and CEO Jason Young.
"While we continue to build our MIM division, we are trying to build similar
market dominance in our other manufacturing divisions, through organic growth,
as well as acquisitions both horizontally and vertically. We are also big
believers in US manufacturing, as well as bringing technology and innovation
to traditional manufacturing. We have brought significant technology to our
various businesses, and view the continued adoption of robotics, automation
and 3D printing as key drivers to growth in manufacturing, particularly in the
US."

ARC reported Adjusted Earnings Per Share (Adjusted EPS) of $0.30 for the
fourth quarter ending June 30, 2013 and $0.85 for the fiscal year ending June
30, 2013 compared to prior fiscal year's Earning Per Share (EPS) of $1.12 and
$0.24 for the prior year's fourth quarter. Adjusted Earnings before interest,
taxes, depreciation and amortization ("Adjusted EBITDA") for the full year was
$10.1 million. Adjusted Earnings, Adjusted EPS and Adjusted EBITDA are
non-GAAP financial measures. Adjusted earnings represent results of
operations of the company net of non-cash amortization of debt discounts, and
net of the merger expenses related to the reverse acquisition transaction
between ARC and QMT and the acquisition of AFT and AFT-H. We have provided
this non-GAAP financial information to aid in better understanding the
company's performance. Non-GAAP financial measures are not in accordance with,
or an alternative for, generally accepted accounting principles in the United
States. The Company's non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP financial
measures, and should be read only in conjunction with the Company's
consolidated financial statements prepared in accordance with GAAP. The
reconciliation to GAAP is as follows (in thousands, except for share and per
share amounts):

GAAP to Non-GAAP Reconciliation
Fourth Quarter ended June 30,                             2013      2012
Reported Earnings (GAAP)                                  $1,583    $949
Adjustments:
Merger Expenses                                           -         -
Gain on Bargain Purchase                                  -         -
Non-Cash Amortization of Debt Discount                    103       -
Adjusted Earnings (Non-GAAP) and Reported Earnings (GAAP) $1,686    $949
Add Back:
Interest                                                  603       104
Tax                                                       283       -
Depreciation and Other Amortization                       774       146
Adjusted EBITDA (Non-GAAP)                                $3,346    $1,199
Weighted Average Common Shares                            5,672,618 4,029,700
Adjusted Earnings Per Share                               $0.30     $0.24
Fiscal Year Ending June 30,                               2013      2012
Reported Earnings (GAAP)                                  $3,039    $4,518
Adjustments:
Merger Expenses                                           1,637     -
Gain on Bargain Purchase                                  (381)     -
Non-Cash Amortization of Debt Discount                    378       -
Adjusted Earnings (Non-GAAP) and Reported Earnings (GAAP) $4,673    $4,518
Add Back:
Interest                                                  1,142     454
Tax                                                       723       -
Depreciation and Other Amortization                       3,524     740
Adjusted EBITDA (Non-GAAP)                                $10,062   $5,712
Weighted Average Common Shares                            5,497,073 4,029,700
Adjusted Earnings Per Share                               $0.85     $1.12

The company has maintained a strong cash position for the twelve months ended
June 30, 2013; cash flow provided by our operating activities amounted to $7.4
million. In the first quarter of fiscal year 2013 the Company recorded $40.5
million in total debt issued in connection with the reverse acquisition
between ARC and QMT and the acquisition of AFT and AFT-H, of which, $15.5
million was in the form of a discounted convertible note and $25.0 million in
the form of bank debt. As of June 30 2013, the balance on the bank debt was
paid down by 35%, or $8.8 million.

About ARC
ARC, through its operating subsidiaries AFT, AFT-H, QMT, ARC Wireless LLC, and
ARC Wireless Ltd., is a global diversified manufacturer, active in MIM,
specialty hermetic seals, flanges and wireless equipment. For more
information about ARC and its subsidiaries, please visit
www.arcgroupworldwide.net, www.aftmim.com, www.quadrantmetals.com, and
www.antennas.com.

ARC's mission is to bring innovation to traditional manufacturing. ARC is
focused on building its core manufacturing businesses in precision components,
flanges, fittings and wireless equipment. The Company focuses on building
these units through organic growth, as well as vertical and horizontal
acquisitions. In addition to making acquisitions that are strategic to ARC,
the Company evaluates new manufacturing niches that fit into its broader
objectives, which are bringing manufacturing back to the US, bringing
technology to traditional manufacturing, as well as optimally position the
Company within the global manufacturing supply chain.

About QMT
Quadrant Metals Technologies LLC ("QMT") is a holding company that owns a
majority interest in multiple manufacturing businesses (FloMet LLC
www.flomet.com, Tekna Seal LLC www.teknaseal.com and General Flange & Forge
LLC www.generalflange.com).

IMPORTANT INFORMATION
This press release may contain "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995, which are based on ARC and
QMT's current expectations, estimates and projections about future events.
These include, but are not limited to, statements, if any, regarding business
plans and integration efforts related to the recent transactions, pro-forma
statements and financial projections, ARC and QMT's ability to expand its
services and realize growth and efficiencies through the acquisitions
discussed herein, merger-related expenses and the impact of the transaction on
ARC's earnings, market share and capital position. These statements are not
historical facts or guarantees of future performance, events or results. Such
statements involve potential risks and uncertainties, such as ARC's ability to
integrate QMT and AFT as planned and the general effects of financial,
economic, and regulatory conditions affecting our industries. Accordingly,
actual results may differ materially. Neither ARC nor QMT nor AFT undertake
any obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. For
additional factors that may affect future results, please see filings made by
ARC with the Securities and Exchange Commission ("SEC"), including its Form
10-K for the fiscal year ending June 30, 2013.

CONTACT:
Mark Jeske
Investor Relations
PHONE: (303) 467-5236

SOURCE ARC Group Worldwide, Inc.

Website: http://www.arcgroupworldwide.net