DAYTON, Ohio, April 28 -- Standard Register today reported financial results for the first quarter ended April 3, 2005. Results of Operations Total revenue on continuing operations was $232.0 million, an increase of 5.3 percent over the $220.3 million reported for the comparable quarter of 2004. Net income was $2.4 million or $0.08 per share, compared with a net loss of $6.5 million or $0.23 per share for the prior period. "We've seen good progress on our sales initiatives," said Dennis Rediker, president and chief executive officer of Standard Register. "Our core Document and Label Systems and our Print-On-Demand Services businesses each reported 4 percent revenue growth, plus we had a significant revenue increase in our new commercial print operation. During the quarter, we also received several multi-year commitments from new customers that will contribute to future revenue. The hard work of our associates is clearly beginning to pay off." The continuing margin improvement reflects our progress in recovering last year's three paper cost hikes, plus the positive results from our company-wide cost reduction and productivity improvement programs. The table below isolates the effects of restructuring and the amortization of prior years' pension losses on profitability. Restructuring expense was $.5 million in the current quarter, primarily residual lease facility costs related to actions undertaken in previous periods. Pension loss amortization was $5.1 million, originating in large part from weak stock market returns in earlier years. All other operations contributed $9.5 million in the current period, versus a $3.3 million deficit in the prior year -- the $12.8 million favorable swing was primarily driven by higher revenue and lower fixed operating costs. The Company recorded a $0.2 million change, net of tax, in estimated reserves in connection with the gain from the fourth quarter 2004 sale of its equipment services business. Financial Condition The Company continued to maintain its strong balance sheet. Net debt at quarter-end was $42.8 million -- total debt of $71.3 million less cash and cash equivalents of $28.5 million. The net borrowing position represented 17% of total invested capital. Capital expenditures were $6.1 million in the quarter, in-line with the lower end of the $25 - $30 million expected range for the year, and dividends paid were $0.23 per share or $6.6 million, consistent with payments made in recent quarters. Net debt rose in the quarter by $5.5 million, reflecting restructuring spending of $2.0 million and the payment of annual sales management and other associate incentives earned in 2004. Excluding spending for acquisitions, divestitures, and restructuring related to reshaping the Company's portfolio and cost structure, Standard Register has generated $19.0 million of positive net cash flow over the last four quarters -- after satisfying $24.1 million of capital expenditures and $26.4 million of dividends. Outlook "In line with previous guidance, we expect our total year revenue to show modest growth on a 52-week fiscal year basis (2004 contained 53 weeks) and for our margins to continue to improve," said Rediker. "Our specific margin goal, first announced in mid-2004, remains to achieve a five-point improvement in pretax operating profit as a percent of revenue for the second half 2005, compared to the first half 2004." The Company expects to replace its existing $150 million revolving credit agreement with a new $100 million secured revolving credit agreement prior to the May 2005 expiration of the current agreement. Dividend Standard Register's board of directors today declared a quarterly dividend of $0.23 per share to be paid on June 10, 2005 to shareholders of record as of May 27, 2005.