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Standard Register Announces Strategic Restructuring, Workforce Reduction

January 23, 2012
DAYTON, OH—Jan. 23, 2012—Standard Register announced a strategic restructuring program to better align the company’s resources in support of its growing core solutions business and to reduce costs to offset the impact of declining revenue in its legacy operations. The restructuring is expected to result in an estimated $45 million in annual savings and the elimination of 12-15 percent of its workforce over the next 6 to 9 months.

“The actions we’ve announced today will more appropriately align our resources with our revenue expectations and in support of our core solutions business,” said Joseph P. Morgan, Jr., president and CEO. “Importantly, they will also assist us in achieving positive cash flow and in making investments in talent, technology and operational infrastructure, as well as sales and marketing optimization, to drive growth.

“We are accelerating our strategy of providing solutions to enable our customers to align their brand communications with their corporate priorities and standards. We have a solid base of customers as well as significant opportunities to grow market share in each of our market-facing business units.”

Morgan continued, “Despite today’s news, we generated modest revenue gains in the fourth quarter supported in particular by strong results in our financial services segment and healthcare technology. We will continue to aggressively execute our strategic plan. Today’s announcement is another important step forward in stabilizing our position and will result in sufficient liquidity and capital resources to fund our near-term operations and growth objectives.”

Standard Register has realigned its business to focus on four markets where it has deep industry knowledge and strong relationships—healthcare, financial services, commercial markets and industrial. Its customer base includes approximately half of the Fortune 100 as well as a variety of mid-sized organizations and small businesses.

The company’s core solutions help customers operate more efficiently, build brand consistency, and reduce risk through the use of the company’s secure distributed digital network with digital color production and distribution. In addition to its core solutions, the company delivers market-specific solutions in the areas of software and consulting as well as more traditional products and services such as forms printing, transactional labels, commercial print and digital black and white printing.

Costs associated with the restructuring program are expected to reduce fourth quarter 2011 earnings by approximately $5.5 million net of tax. The balance of the costs will reduce 2012 earnings by approximately $1.5 million net of tax.
 

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