Standard Register Launches New Corporate Strategy, Posts Financial Results
• 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.