Results of Operations
Total Revenue on Continuing Operations was
As previously reported, the Company sold its Digital Solutions start-up
business in April for
The Company took action in the quarter to reduce its DLS cost structure,
closing its Middlebury, Vermont plant and redistributing most of its output
capacity to other manufacturing facilities. Restructuring expense in the
quarter was
The Company expects to incur some additional restructuring, training, and
relocation-related costs before the realignment actions conclude late in the
third quarter; on-going annualized savings are estimated at approximately
The amortization of prior years' pension gains and losses produced a first
quarter expense of
Operating income on continuing operations before the above expenses for
restructuring, impairment, and prior years' pension losses was
The table below reconciles the preceding non-GAAP figures to the Company's net operating results after tax.
[$ Millions, rounded] 1st Quarter
CONTINUING OPERATIONS 2007 2006 Chg
Income from Continuing Operations
Before Restructuring, Impairment,
and Amortization of Past Pension
Losses 9.4 14.2 -4.8
Restructuring Expense -2.4 -1.1 -1.3
Impairment Expense 0.4 -1.7 2.1
Amortization of Past Pension Losses -7.0 -6.0 -1.0
Income on Continuing Operations 0.4 5.4 -5.1
Interest & Other Income / (Expense) -0.7 -0.5 -0.3
Pretax Income / (Loss) -0.4 5.0 -5.3
Income Taxes -0.2 2.1 -2.3
Net Income / (Loss) on Continuing
Operations -0.2 2.9 -3.1
DISCONTINUED OPERATIONS -0.6 -1.5 0.8
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE 0.1 -0.1
TOTAL NET INCOME / (LOSS) -0.8 1.5 -2.3
Including restructuring, impairment, and amortization of past years'
pension losses, the Company reported an income on continuing operations of
The Company's net debt, total debt less cash and short-term investments,
increased
Outlook
'We are encouraged by the strong showing in our growth businesses,' said
Rediker, 'and we expect our total year to show low-to-mid single digit top-
line growth overall. Capital spending should be in the
Dividend
Standard Register's board of directors declared on
Presentation of Information in This Press Release
This press release presents information that excludes restructuring, impairment charges and amortization of past pension losses. These financial measures are considered non-GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows where amounts are either excluded or included not in accordance with generally accepted accounting principles (GAAP). This information is intended to enhance an overall understanding of the financial performance due to the non-operational nature of these items and the significant change from period to period. This presentation is consistent with the manner in which the Board of Directors internally evaluates performance.
The presentation of non-GAAP information is not meant to be considered in
isolation or as a substitute for results prepared in accordance with
principles generally accepted in the
Conference Call
Standard Register president and chief executive officer
About Standard Register
Standard Register is a premier document services provider, trusted by
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Safe Harbor Statement
This report includes forward-looking statements covered by the Private Securities Litigation Reform Act of 1995. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results for fiscal year 2007 and beyond could differ materially from the Company's current expectations.
Forward-looking statements are identified by words such as 'anticipates,'
'projects,' 'expects,' 'plans,' 'intends,' 'believes,' 'estimates,' 'targets,'
and other similar expressions that indicate trends and future events.
Factors that could cause the Company's results to differ materially from those
expressed in forward-looking statements include, without limitation, variation
in demand and acceptance of the Company's products and services, the
frequency, magnitude and timing of paper and other raw-material-price changes,
general business and economic conditions beyond the Company's control, timing
of the completion and integration of acquisitions, the consequences of
competitive factors in the marketplace, cost-containment strategies, and the
Company's success in attracting and retaining key personnel. Additional
information concerning factors that could cause actual results to differ
materially from those projected is contained in the Company's filing with The
Securities and Exchange Commission, including its report on Form 10-K for the
year ended
THE STANDARD REGISTER COMPANY
STATEMENT OF OPERATIONS Y-T-D
(In Thousands, except Per Share Amounts) 13 Weeks Ended 13 Weeks Ended
1-Apr-07 2-Apr-06
TOTAL REVENUE $227,431 $228,521
COST OF SALES 151,496 146,718
GROSS MARGIN 75,935 81,803
COSTS AND EXPENSES
Selling, General and Administrative 66,918 66,246
Depreciation and Amortization 6,655 7,327
Asset Impairment (409) 1,694
Restructuring 2,406 1,090
TOTAL COSTS AND EXPENSES 75,570 76,357
INCOME FROM CONTINUING OPERATIONS 365 5,446
OTHER INCOME (EXPENSE)
Interest Expense (797) (514)
Other income 68 36
Total Other Expense (729) (478)
(LOSS) INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (364) 4,968
Income Tax (Benefit) Expense (175) 2,090
NET (LOSS) INCOME FROM CONTINUING OPERATIONS (189) 2,878
DISCONTINUED OPERATIONS
Loss from discontinued operations, net of taxes (639) (1,458)
NET (LOSS) INCOME BEFORE CUMULATIVE EFFECT OF A
CHANGE IN ACCOUNTING PRINCIPLE (828) 1,420
Cumulative effect of a change in accounting
principle, net of taxes - 78
NET (LOSS) INCOME ($828) $1,498
Average Number of Shares Outstanding - Basic 28,635 28,738
Average Number of Shares Outstanding - Diluted 28,635 28,766
BASIC AND DILUTED EARNINGS (LOSS) INCOME PER SHARE
(Loss) income from continuing operations ($0.01) $0.10
Loss from discontinued operations (0.02) (0.05)
Net (loss) income per share ($0.03) $0.05
Dividends Paid Per Share $0.23 $0.23
BALANCE SHEET
(In Thousands) 1-Apr-07 31-Dec-06
ASSETS
Cash & Short Term Investments $1,688 $488
Accounts Receivable 127,274 135,839
Inventories 49,092 49,242
Other Current Assets 32,034 32,201
Total Current Assets 210,088 217,770
Plant and Equipment 119,931 119,339
Goodwill and Intangible Assets 8,070 8,168
Deferred Taxes 84,797 86,710
Other Assets 21,646 20,092
Total Assets $444,532 $452,079
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Portion Long-Term Debt $224 $358
Current Liabilities 81,728 100,956
Deferred Compensation 16,866 17,190
Long-Term Debt 52,355 41,021
Retiree Healthcare 20,448 20,398
Pension Liability 150,739 153,953
Other Long-Term Liabilities 1,294 36
Shareholders' Equity 120,878 118,167
Total Liabilities and Shareholders' Equity $444,532 $452,079
SOURCE Standard Register
