ARC Group Worldwide, Inc. Reports Record Quarterly Results

          ARC Group Worldwide, Inc. Reports Record Quarterly Results

For the quarter ended December 29, 2013, compared to the quarter ended
December 30, 2012 (fiscal second quarter):

- Record Net Revenues of $19.9 Million, An Increase of 14.6%

- Record Gross Profit of $6.3 Million, An Increase of 46.8%

- Record Adjusted EBITDA of $3.7 Million, An Increase of 110.3%

- Adjusted Earnings of $1.9 Million, An Increase of 135.6%

- Adjusted EPS of $0.32, An Increase of 127.4%

PR Newswire

DELAND, Fla., Feb. 12, 2014

DELAND, Fla., Feb. 12, 2014 /PRNewswire/ --ARC Group Worldwide, Inc. (NASDAQ:
ARCW; the "Company" or "ARC") today reported second quarter fiscal 2014
results, including record Net Revenue of $19.9 million, record Gross Profit of
$6.3 million, record Adjusted EBITDA of $3.7 million, and Net Income of $1.5
million, an increase of 91.3% over the comparable prior year period. ARC also
reported Adjusted Earnings Per Share ("Adjusted EPS") of $0.32 for the second
quarter fiscal 2014, compared to $0.14 in the prior year period. The second
quarter results are driven by robust performance across our manufacturing
operations and underlying strength in numerous client industries, including
medical, automotive, aerospace, and defense.

Mr. Jason Young, Chairman and CEO, said, "We are pleased to report strong
quarterly results that reflect sustained growth in revenue and operating
margins. At the same time, we continue to materially pay down our debt
utilizing the strong free cash flow generated from our businesses. This debt
reduction has significantly increased our capacity to add EBITDA through
acquisitions, while maintaining our conservative capital structure." He
further added, "We are also quite excited about the progress we have made with
our 3D printing and imaging efforts, as well as our newly launched online
quoting system at 3DMT, all of which dovetail with our existing business quite
well."

Company-Wide Operating Results

Net revenue for the fiscal year 2014 second quarter increased 14.6% to $19.9
million, compared to $17.4 million in the prior year period, due to the strong
demand in the high growth markets we serve.

The second quarter also showed an improvement in Gross Profit Margin,
increasing to 31.8% from 24.7% during the comparable prior year period. The
increase is attributed to a combination of top line sales growth, lean
manufacturing initiatives, continued realization of acquisition synergies, and
improved operational efficiencies through best practices.

ARC reported Adjusted EPS of $0.32 for the second quarter, an increase of
127.4% from $0.14 the prior year quarter. Adjusted Earnings before interest,
taxes, depreciation and amortization ("Adjusted EBITDA") for the second
quarter fiscal 2014 was a record $3.7 million.

Adjusted Earnings, Adjusted EPS and Adjusted EBITDA are non-GAAP financial
measures. Adjusted Earnings represents the results of operations net of
unusual expenses incurred during the period. We have provided this non-GAAP
financial information to aid in better understanding the company's performance
absence these charges. 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):

For the three months ended:
GAAP to Non-GAAP Reconciliation:             Dec 29, 2013 Dec 30, 2012
Reported Earnings (GAAP)                     $1,515       $792
    Plus: Reorganization Expenses            351          -
Adjusted Earnings (Non-GAAP)                 $1,866       $792
    Plus: Interest Expense, Net              293          225
    Plus: Income Taxes                       690          -
    Plus: Depreciation and Amortization      892          762
Adjusted EBITDA (Non-GAAP)                   $3,741       $1,779
Weighted Average Common Shares               5,877,314    5,672,618
Adjusted Earnings Per Share (Non-GAAP)       $0.32        $0.14
For the six months ended:
GAAP to Non-GAAP Reconciliation:             Dec 29, 2013 Dec 30, 2012
Reported Earnings (GAAP)                     $2,768       $704
    Plus: Merger Expense                     -            1,637
    Plus: Gain on Bargain Purchase           -            (381)
    Plus: Share-Based Executive Compensation 701          -
    Plus: Reorganization Expenses            351          -
Adjusted Earnings (Non-GAAP)                 $3,820       $1,960
    Plus: Interest Expense, Net              499          392
    Plus: Income Taxes                       1,076        -
    Plus: Depreciation and Amortization      1,790        1,330
Adjusted EBITDA (Non-GAAP)                   $7,185       $3,682
Weighted Average Common Shares               5,802,727    5,322,488
Adjusted Earnings Per Share (Non-GAAP)       $0.66        $0.37

Balance Sheet and Cash Flow Items

The Company strengthened its cash position during the quarter as cash flow
provided by operating activities generated $3.2 million, ending the quarter
with Senior Debt, net of Cash, of $7.6 million. Net Senior Debt currently
stands at 0.5x the second quarter annualized Adjusted EBITDA.

About ARC Group Worldwide, Inc.

ARC Group Worldwide is a diversified, global advanced manufacturing company,
as well as a world leader in MIM. ARC was founded in 1987 and has a long
history as a technology innovator in manufacturing. ARC has significant
expertise in lean manufacturing and utilizes cutting edge technology including
robotics, automation, and 3D printing. ARC's mission is to bring innovation
and technology to manufacturing. The Company provides a holistic
manufacturing solution to help its customers get to market quickly. ARC's
core manufacturing businesses are in precision components, 3D printing,
flanges, fittings, and wireless technology, through its operating
subsidiaries: www.ARCMIM.com, www.FloMet.com, www.AFTmim.com,
www.AFTmimHU.com, www.Injectamax.com, www.TeknaSeal.com,
www.3DMaterialTechnologies.com, www.GeneralFlange.com and
www.ArcWireless.net. For more information about ARC Group Worldwide, please
visit www.ArcGroupWorldwide.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's
current expectations, estimates and projections about future events. These
include, but are not limited to, statements, if any, regarding business plans,
pro-forma statements and financial projections, ARC's ability to expand its
services and realize growth. These statements are not historical facts or
guarantees of future performance, events or results. Such statements involve
potential risks and uncertainties, and the general effects of financial,
economic, and regulatory conditions affecting our industries. Accordingly,
actual results may differ materially. ARC does not have 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
ended June 30, 2013 and Form 10-Q for the period ended December 29, 2013, as
well as current reports on Form 8-K filed from time-to-time with the SEC.

CONTACT: Drew M. Kelley
PHONE: (303) 467-5236
Email: InvestorRelations@ArcGroupWorldwide.com

SOURCE ARC Group Worldwide, Inc.

Website: http://www.ArcGroupWorldwide.com
 
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