Stadium Capital's ownership of ARC stock: How much stock does Stadium Capital actually own?

Well, call me “clueless”!!!

Yesterday on Reprographics 101, I put up an “update post” on Stadium Capital’s ownership of ARC stock, and, for some reason I have yet to figure out, the total shares owned by Stadium Capital reported in the last line of the schedule included in yesterday’s post does not equal the total shares owned by Stadium Capital reported by MSN.com finance, one of the web-sites I generally visit for financial research.

Evidently, there are two different Stadium Capital “entities”; one called “Stadium Capital Partners”, the other called “Stadium Capital Management”. The schedule I’ve been updating and posting reflects Stadium Capital Partners’ ownership in ARC shares.

Note, below, that the ARC-share-ownership figures I’ve been reporting (in Table 1) do agree (do reconcile to) the ARC-share-ownership currently reported on Yahoo.com Finance (Table 2.)

But, when I compare those numbers (# of shares owned) to the numbers currently reported on MSN.com finance, there’s a discrepancy, a difference, of 476,000 shares. In addition to that difference, MSN.com finance is reporting that the 5,848,036 shares are owned by Stadium Capital Management, and I don’t think that’s correct, for the Form 4 filings I’ve looked at say that Stadium Capital Partners is the “greater than 10% owner” that’s been reporting.

Could it be that SC’s second entity, Stadium Capital Management, owns 476,000 shares in addition to the 5,372,034 shares owned by Stadium Capital Partners?

If you go with the numbers reported on MSN.com finance, Stadium Capital now owns more shares than Micro Device, Inc. [Micro Device was the corporate name of Ford Graphics, and Micro Device is owned by Mohan and Suri. (I think Bill Thomas of Thomas Reprographics was formerly one of the owners of Micro Device, but I’m fairly sure that he cashed out of his shares quite some time ago, when ARC’s stock was trading well above where it’s been the past couple of years.) I’m pretty sure that Mohan also owns stock individually (and maybe in a trust), I’m pretty sure that Suri also owns ARC stock individually (and maybe in a trust), I’m pretty sure that Mohan and Suri still own ARC shares through their ownership of Dietrich Post Co, Inc., and I know that other ARC management team members (and Directors) own shares of ARC stock; all this meaning that, even if the Stadium Capital ARC-share-ownership numbers currently reported on MSN.com finance are correct, Stadium Capital still owns fewer ARC shares than all of the other ARC insiders own collectively. Not that any of that really matters, for I’m doubtful that Stadium Capital is interested in taking control of ARC. But, what do I know, anyway?

If someone knows anything that could clear up the picture – how much ARC stock does Stadium Capital (both SC entities, together) actually own, I’d appreciate you sharing that information with me (as well as the source of your information.)

Table 1. Stadium Capital Partners ownership of ARC shares; this comes from the last line of the table I posted yesterday (Dec 13^th post), and the source of the information for that table is Stadium Capital’s Form 4 filings with the SEC:

Last Transaction Date	Purchase Price	# of Shares Purchased	# of shares owned, after purchase	%age of O/S Stock Owned
12/8/11	$4.18	14,804	5,372,034	11.62%

Table 2. Stadium Capital Partners ownership of ARC shares; this Information per Yahoo.com Finance (as of this morning):

HOLDER NAME	Total Shares Owned	Thru Latest Transaction Date
Stadium Capital Partners	5,372,035	12/8/11

Table 3. Stadium Capital Management ownership of ARC shares: this list, supposedly, shows the five largest “5% or more” holders of ARC stock; this list was copied off MSN.com this morning (Dec 14^th):

HOLDER NAME	SHS HELD	$ MARKET VALUE	% OUT	RPT DATE
Stadium Capital Management, LLC	5,848,036	24,210,868	12.6	12/7/11
Micro Device, Inc.	5,684,842	58,838,116	12.3	3/10/11
T. Rowe Price Associates, Inc.	3,977,290	13,363,694	8.6	9/30/11
Pzena Investment Management, LLC	2,999,359	10,077,846	6.5	9/30/11
T. Rowe Price Small Cap Stock Fund	2,538,400	8,529,024	5.5	9/30/11

Stadium Capital continues building its position in American Reprographics Co (ARC) shares (information updated for purchases through 11/1/2011)

I’ve done several previous posts on Reprographics 101 about Stadium Capital continuing to build its position in ARC shares. Today is an “update post.”

Since the last time I posted about Stadium Capital’s ownership (and purchases) of ARC shares, Stadium Capital has made subsequent purchases of ARC shares. Here’s the latest table reflecting Stadium Capital’s purchases of ARC shares from August 23, 2011 through November 1, 2011:

Transaction Date	Purchase Price	# of Shares Purchased	# of shares owned, after purchase	%age of O/S Stock Owned
8/23/11	$3.79	30,600	4,676,921	10.12%
8/24/11	$3.88	17,991	4,694,912	10.16%
8/25/11	$3.80	244,000	4,938,912	10.69%
9/2/11	$3.54	29,315	4,968,227	10.75%
9/6/11	$3.45	1,833	4,970,060	10.75%
9/8/11	$3.57	6,591	4,976,651	10.77%
9/9/11	$3.49	11,641	4,988,292	10.79%
9/12/11	$3.54	17,256	5,005,548	10.83%
9/20/11	$3.56	13,737	5,019,285	10.86%
9/21/11	$3.50	9,170	5,028,455	10.88%
9/26/11	$3.47	5,500	5,033,955	10.89%
9/28/11	$3.33	27,524	5,061,479	10.95%
9/29/11	$3.29	22,203	5,083,682	11.00%
9/30/11	$3.35	41,019	5,124,701	11.09%
10/3/11	$3.20	18,348	5,143,049	11.13%
10/17/11	$3.64	15,497	5,158,546	11.16%
11/1/11	$3.89	2,201	5,160,747	11.17%

From August 23, 2011 through November 1, 2011, Stadium Capital purchased an additional 514,426 shares, at an average cost of $3.64 per share. I check ARC’s stock price a couple of minutes ago – and it was at $4.94 per share. So at this point, Stadium Capital has an unrealized gain of $667,130 on the ARC shares it has purchased during the period mentioned above. That’s a gain on an investment of $1,874,134. Nice gain, huh! Well......

What I did not mention in the paragraph above – because I don’t actually know the facts – is that, inasmuch as Stadium Capital began acquiring ARC shares (Stadium Capital had amassed 4,646,321 shares prior to August 23^rd) when ARC’s shares were at a substantially higher price-per-share, I think that Stadium Capital’s investment in ARC stock is still seriously underwater. But, time will tell, perhaps 2, 3 or 4 years from now, if Stadium Capital’s significant bet on ARC will pay off.