Standard Register Reports Earnings, Revenue Down 5% in 2000
Press release from the issuing company
(DAYTON, OHIO), January 25, 2001... Standard Register (NYSE: SR) today reported fourth quarter revenue of $327 million, down 3 percent from the $338 million reported for the comparable quarter of 1999. This decline primarily reflected a drop in traditional business forms sales. Fourth quarter Net Income from Continuing Operations, before restructuring and asset write-downs that were recorded in the quarter, was $8.8 million or $0.32 per fully diluted share, compared to $12.3 million and $0.44 per fully diluted share for the fourth quarter 1999. The decline in revenue was the major contributing factor to the decline in operating profit. The Company closed its Dayton, Ohio forms printing plant in the fourth quarter 2000, recording a $7.4 million pre-tax restructuring charge, equivalent to $0.17 per fully diluted share after tax. The Company also recorded an $81.5 million pre-tax charge related to a write-off of goodwill and other assets, outlined below. The write-downs lowered fourth quarter earnings by $1.82 per fully diluted share. In total, the Company reported a net loss of $46.0 million or $1.67 per fully diluted share.
Items of note during the quarter included the signing of a five-year, $100 million contract with Quest Diagnostics. Hearst Publishing and Ingersol-Rand also signed document management agreements valued at $2.0 million per year and $1.5 million per year, respectively. And, South Carolina became the ninth state to use Standard Register’s products for vehicle registrations.
Total Year 2000 Results
Revenue for the total year 2000 was $1.266 billion, down 5 percent from the $1.327 billion recorded in 1999. 2000 Net Income from Continuing Operations, excluding the asset write-downs and the restructuring actions taken in the first and fourth quarters, was $36.4 million compared to $55.7 million reported in 1999; earnings per share on a comparable basis were $1.33 in 2000 vs. $1.98 for the prior year.
The restructuring actions and the asset write-downs lowered total year per share earnings by $0.57 and $1.82, respectively, producing a total year Net Loss on Continuing Operations of $29.2 million or $1.06 per fully diluted share.
The $81.5 million pre-tax charge above recognizes the impairment of $48.1 million of goodwill related to the 1998 acquisition of UARCO, $17.3 million in idled production equipment, $6.3 million of replaced application software, and a $2.1 million write-down of an investment. Also included were $7.7 million in write-downs of current assets.
“The results for the quarter and year are in line with our expectations,” says Chief Executive Officer Dennis Rediker. “They are, however, wholly unsatisfactory and serve to reinforce the conclusion reached six months ago that significant changes are necessary to put the Company on a new course.” In a separate release today, the Company is announcing its new strategy-the product of six months of analysis and planning focused on improving total shareholder return.
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