Standard Register Announces Q3 Growth of 10 Percent in Revenue Compared to Previous Year
Adjusted EBITDA was $44.1 million for the first three quarters of 2014 compared to $29.5 million for the same period last year.
Business Solutions revenue increased 50.8 percent to $478.3 million and compares to $317.2 million for the prior year first three quarters. Healthcare revenue increased 21.4 percent to $194.9 million from $160.6 million for the first three quarters of 2013. Business added from the acquisition contributed to the increase.
Operating profit in both business units increased significantly with Business Solutions at $5.1 million for the first three quarters of 2014 compared to $2.4 million last year and Healthcare reporting $10.1 million in 2014 compared to $6.0 million last year.
Gross margin as a percentage of revenue was 27.9 percent for the first three quarters of 2014 compared to 28.2 percent last year. SG&A expenses were $171.3 million for the first three quarters of 2014 compared to $124.5 million last year. The increase is primarily attributable to the inclusion of WorkflowOne.
Savings achieved in the first three quarters from the restructuring and integration of WorkflowOne are approximately $24.0 million. The Company expects to realize approximately $40.0 million in annual savings when the integration of the two companies is complete at the end of 2015. The Company spent $21.3 million on restructuring and integration in the first three quarters of 2014.
The Company used cash of $24.0 million through the first three quarters of 2014 on a net debt basis compared to $6.6 million used last year. Spending in 2014 was primarily for restructuring and integration, capital expenditures and pension contributions.
Capital expenditures, including capital leases, for the first three quarters of 2014 were $19.9 million compared $9.2 million in the same period in 2013. The Company continues to invest in the areas with growth potential, including digital printing, label operations in Mexico, product marking and decorative technology, software development and its SMARTworks workflow platform.