Standard Register to Revise Financial Results
Friday, March 14, 2003
DAYTON, Ohio--March 12, 2003--Standard Register announced the revision of its previously reported results of operations for two items, in response to a request by the Securities and Exchange Commission (SEC). In July 2001, the company identified and reported a charge to 2001 results for accounting errors and other adjustments, primarily related to the installation of a new cost system; a portion of this charge was related to prior years' activities. The SEC has requested that the company restate its 2001 and 2000 results to show the effect in each of those years. The restatement reduces the net loss in 2001 by $6.0 million and increases the net loss in 2000 by $5.6 million. (The company incurred significant restructuring and impairment charges in 2000 and 2001, resulting in reported losses.) The restatement, which is limited to the two-year period, does not impact reported year-end 2001 shareholders' equity. In July 2002, the company acquired InSystems Technologies, Inc. The resulting purchase price allocation produced $16 million in intangible assets that the company originally judged to be non-amortizable. The SEC has since requested that the company amortize these assets over an estimated life. The effect of this revision will be a reduction to 2002 net income of $0.4 million, or $0.02 per diluted share on a rounded basis, representing a half-year's amortization. With this adjustment, Standard Register's 2002 net income was $32.6 million or $1.14 per diluted share, compared to a loss in 2001 of $43.3 million or $1.57 per share. Standard Register expects to file its 2002 10-K report on or about March 17, which will include the above restatement of 2000 and 2001 results and the 2002 revision.