Standard Register Reports Positive Preliminary 2005 Results
Press release from the issuing company
DAYTON, Ohio, Feb. 23 -- Standard Register today announced preliminary financial results for the fourth quarter and total year ended January 1, 2006.
Management and audit work related to income taxes has not yet been completed. The Company has elected to release its preliminary pre-tax results in order to provide useful information to investors in the expected timeframe. The Company expects to make its full earnings release shortly.
Results of Continuing Operations
Revenue on Continuing Operations was $223.0 million in the quarter, compared to $236.2 million for the fourth quarter 2004. The prior year reporting period included an extra accounting week, which added an approximation of $17.0 million to 2004's fourth-quarter and total-year revenues. On a normalized 13-week quarter basis, revenue was up 1.8 percent. Total 2005 Revenue on Continuing Operations was $901.9 million, up 1.3 percent from the prior year; adjusting for the extra week, revenue increased by an estimated 3.3 percent.
Pre-tax income on Continuing Operations was $2.4 million for the fourth quarter, compared to $0.4 million in 2004. For the total year, pre-tax income on Continuing Operations improved from a loss last year of $73.1 million to a profit of $8.9 million. The improved 2005 operating profit is primarily attributed to the increase in revenue, lower costs, and significantly reduced restructuring and impairment expenses.
The table isolates the effects of restructuring and impairment for the fourth quarter and total years 2005 and 2004.
"We continued to make good operating progress in 2005," said Dennis Rediker, president and chief executive officer of Standard Register. "Setting aside restructuring and impairment charges, our 2005 pre-tax income on Continuing Operations increased $21.9 million over 2004 and was $36.0 million higher than in 2003."
The Company continued to generate cash and pay down debt. "The Company netted positive cash flow of $15.9 million during 2005 -- after funding all of our operating needs, $20.2 million in capital expenditures, $15.0 million in pension contributions, $5.2 million in restructuring costs, and $26.6 million in dividend payments," said Rediker. The balance sheet remains very strong with net debt (total debt less cash and short-term investments) ending the year at $21.4 million. End-of-year net debt balances for 2004 and 2003 were $37.3 million and $48.1 million, respectively.
"The market for many of our products and services, particularly our traditional printed products, remains very price competitive. Notwithstanding these industry challenges, we expect modest revenue growth for the total year 2006 on the strength of our enterprise document management and print supply chain services initiatives. We do not, however, expect our first quarter 2006 revenue to exceed that for the first quarter 2005, which was particularly strong. We will also continue to focus on productivity improvements, asset management, and maintaining a strong balance sheet," said Rediker.
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