Standard Register Reports Revenue Increase of 4% in Q3
Press release from the issuing company
DAYTON, Ohio, Oct. 27 -- Standard Register today reported financial results for the third quarter ended October 2, 2005.
Results of Operations
Revenue for the third quarter was $221.4 million, an increase of 4.0 percent over the $213.0 million for the prior year. Through nine months, revenue was $678.9 million, versus $654.1 million, an increase of 3.8 percent. "Each of our segments contributed to the quarter's revenue increase, which represented the fourth consecutive quarter of top-line growth, versus the previous year," said Dennis L. Rediker, Standard Register's president and chief executive officer. "Despite a competitive marketplace, we recorded unit growth in both the quarter and year-to-date periods and continue to make good progress in recovering the 2004 and 2005 material cost increases," added Rediker.
For the third quarter, pre-tax income from continuing operations was $2.3 million, compared with a pre-tax loss of $56.0 million in the prior year. For the first nine months of the year, pre-tax income from continuing operations was $6.5 million, versus a loss in 2004 of $73.5 million. Restructuring and impairment charges contributed significantly to the prior year losses, as indicated in the table that follows. Excluding these charges, third quarter operating results, before interest, swung from a loss of $1.3 million in 2004 to a $3.1 million profit in the current year. Through nine months, operating results, excluding restructuring, impairment, and interest, improved by $21.8 million from an $11.2 million deficit in the prior year to a $10.6 million income this year.
"The improvement in operating margins this year primarily reflects the revenue growth, lower SG&A expense levels and reduced depreciation," said Rediker.
On an after-tax basis, the Company reported total net profit in the quarter of $1.4 million or $0.05 per share, compared with a net loss of $34.5 million or $1.21 per share in the prior quarter. On a year-to-date basis, net profit was $1.4 million or $0.05 per share, versus a loss of $43.6 million, or $1.53 per share in 2004.
Through the first nine months of the year, the Company has paid $19.8 million in dividends, made $12.8 million in voluntary pension contributions, incurred $4.3 million in restructuring spending, and invested $15.6 million in long-term capital projects. Net debt (total debt less cash and short-term investments) ended the quarter at $39.8 million, up $2.5 million compared to the outset of the year. "Our 16.8 percent ratio of net debt to total capital reflects our continuing strong balance sheet," said Rediker.
"Our guidance remains unchanged from last quarter," said Rediker. "We continue to expect modest revenue growth for the full year, adjusted for the extra accounting week in 2004, and meaningful improvement in second-half 2005 percentage operating margins (excluding restructuring and impairment charges), versus the first-half 2004 base period.
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