Standard Register Launches New Corporate Strategy, Posts Financial ResultsApril 28, 2011
“Even the world’s top companies need help executing critical communications and managing inherent compliance, safety and security risks, because they often don’t have the required resources or expertise in-house. We have a compelling portfolio of solutions that often can be applied enterprise-wide to help customers address their strategic issues. We can help them develop innovative solutions to build, protect and enhance their brands,” he said.
The company’s portfolio is comprised of document management and process improvement services and solutions that are customized for its respective markets.
• Its commercial business provides marketing, training and customer communications solutions that help companies ensure brand consistency, increase customer loyalty and enhance security.
• In healthcare, Standard Register offers solutions to accelerate performance, attract and educate patients, enhance patient safety and improve the quality of care.
• Its Industrial business helps manufacturers realize efficiencies by removing waste from the manufacturing process, reduce product liability claims through improved compliance, and gain distinction with the latest product decoration technology.
Morgan said that the company’s refined strategy is already gaining traction. “Market analysis showed us we have significant opportunities to grow market share in each of our three segments, and it’s evident we are on the right path. We’ve stabilized the company, made significant investments in technology, and introduced new solutions and services that are driving growth.”
Other First Quarter 2011 Financial Results
Gross margin as a percent of revenue improved to 32.5 percent for the quarter vs. 32.0 percent in the prior year. LIFO inventory adjustment was negligible for the current quarter versus a favorable LIFO adjustment of $1.7 million for the prior year. Selling, general and administrative expenses, excluding pension loss amortization were down $3.3 million from the prior year. Continuous improvement initiatives allowed the Company to enhance its cost structure which, allowed all three business units to show increases in their operating profit over the prior year.
Adjusting for pension loss amortization and restructuring charges, non-GAAP net income was $4.2 million for the current quarter compared with non-GAAP net income of $2.3 million for the prior year quarter.
During the quarter, capital expenditures were $1.9 million and are expected to be in the range of $18-21 million for the year, the majority of which will support the advancement of our core growth solutions. Pension funding contributions were $8.0 million during the quarter and are expected to be approximately $30 million for the year. Non-GAAP cash on a net debt basis was $5.8 million positive for the quarter, driven by working capital improvements previously predicted.
“Generating profit and positive cash flow during the quarter demonstrates our progress toward a more enduring environment,” noted Morgan. “However, we know that to be a sustainable organization, we need to deliver growth on the top-line as well. Driving revenue growth by advancing our core growth solutions is the primary focus for this year.”
About Standard Register
Standard Register (NYSE:SR) is trusted by the world’s leading companies to advance their reputations by aligning their communications with corporate standards and priorities. Providing market-specific insights and a compelling portfolio of solutions to address the changing business landscape in healthcare, commercial and industrial markets, Standard Register is the recognized leader in the management and execution of mission-critical communications. More information is available at www.standardregister.com.
Source: company release.