DAYTON, Ohio -- Standard Register today reported its financial results for the second quarter ended June 28, 2009.

Results of Operations

Net Income for the second quarter 2009 was $3.2 million or $0.11 per share, compared to $1.4 million or $0.05 per share in the comparable quarter of 2008. For the first six months, a net loss of $7.8 million or $0.27 per share compares to net income of $3.9 million or $0.14 per share in the prior year. The year to date net loss was primarily due to considerable non-cash pension settlement charges of $11.9 million or $0.41 per share on an after-tax basis. Cash flow on a net debt basis was strong in the quarter at $7.8 million due to the reduction in the dividend payment, additional cost savings and improvements in working capital.

Revenue for the quarter was $171.0 million, compared to $198.8 in the same quarter of 2008. On a year to date basis, revenue was $345.6 versus $406.0 in the prior year. "Our revenue continues to be challenged by significant unit declines in our traditional product offerings; however, we are seeing an increased level of activity in our core markets," said Joe Morgan, president and chief executive officer. "The majority of the unit decline is related to economic weakness and advancements in the use of technology," added Morgan. Despite the shortfall of $27.8 million in revenue in the quarter, gross margins as a percent of revenue remained stable at 31.7 percent compared to 32.0 percent in the prior year. "Our 2008 $33 million cost reduction plan, coupled with the successful achievement of $40 million in 2007, continued to positively impact gross margins while reducing SG&A expenses," added Morgan. SG&A was $48.2 million in the quarter versus $61.5 million in the prior quarter, down $13.3 million.

Capital expenditures were $5.0 million through the first half and are expected to end the year in the $10-13 million range. Pension funding was $14.5 million through six months with an additional $10.5 million currently planned for the balance of the year.

Dividend

Standard Register's board of directors today declared a quarterly dividend of $0.05 per share to be paid on September 4, 2009, to shareholders of record as of August 21, 2009. The board will consider future dividend payments on a quarter-by-quarter basis in accordance with its normal practice.

Conference Call

Standard Register's president and chief executive officer Joe Morgan and chief financial officer Bob Ginnan will host a conference call at 10 a.m. EDT on July 24, 2009, to review the second quarter results. The call can be accessed via an audio web cast which is accessible at: http://www.standardregister.com/investorcenter.