Dayton, Ohio - Standard Register today reported its fourth quarter and total year 2010 results. For the quarter, the Company reported revenue of $172.7 million and a net profit of $2.2 million, or $0.08 per share. The current year fourth quarter 13-week results compare to last year's 14-week revenue of $184.9 million and a net profit of $0.9 million, or $0.03 per share. For the year, the Company reported revenue of $668.4 million and a net profit of $2.6 million, or $0.09 per share. The current year 52-week results compare to last year's 53-week revenue of $694.0 million and a net loss of $12.4 million, or $0.43 per share.
"We have made great progress during the year to stabilize revenue, improve profits and manage cash toward break-even," stated Joseph Morgan, president and chief executive officer. "As a result, we are entering 2011 a financially stronger and more focused organization that will take advantage of the emerging opportunities in those markets in which we participate."
Results of Operations
Revenue comparisons to the prior year are not consistent given the extra week reported during the fourth quarter 2009. However, during the quarter the Company continued to see expansion of its customer base through new contracts and growth in priority solutions even including the extra week from the prior year.
Gross margin as a percent of revenue was improved to 32.7 for the quarter versus 31.9 in the prior year. For the year, gross margin was at 32.0 percent of revenue versus 31.8 percent of revenue in the prior year. Favorable LIFO inventory adjustments were $1.2 million for the current quarter and $3.8 million for the year. This compares to favorable LIFO adjustments of $1.9 million and $4.9 million for the fourth quarter and total year 2009. Continuous improvement initiatives allowed the Company to enhance gross margin despite lower revenue units.
Selling, general and administrative expenses are also not consistent given the extra week reported during the fourth quarter 2009. However, savings initiatives during the quarter continue to offset planned investments in technology, materials science, and key expertise to support our market development.
"All business units have shown great progress during the year in improving their operating profits," noted Morgan. "It is encouraging to see that the investments we made previously to support these businesses are now beginning to provide the returns we had anticipated."
Adjusting for pension loss amortization, pension settlement losses and restructuring and impairment charges, non-GAAP adjusted net income was $5.7 million, or $0.21 per share for the fourth quarter of 2010, compared with non-GAAP adjusted net income of $3.2 million, or $0.11 per share for the fourth quarter of 2009. On a year-to-date basis, adjusting for pension loss amortization, pension settlement losses and restructuring and impairment charges, non-GAAP adjusted net income was $15.5 million, or $0.54 per share compared with non-GAAP adjusted net income of $16.4 million, or $0.58 per share for the prior year.
Capital expenditures were $14.7 million for the year using a combination of $8.4 million in cash and $6.3 million through operating and capital lease agreements. In addition, the Company purchased the assets of Fusion Graphics, Inc. for $2.5 million during the second quarter. Pension funding was $24.0 million for the year. Non-GAAP cash on a net debt basis was $5.9 million negative for the year.
"We came short of our expectations for cash this year as our year-end receivables balance grew $13 million from the previous quarter," commented Morgan. "On the upside, this has resulted in strong positive cash flow for the start of 2011."