Standard Register Reports Solid 1Q Results, Well Positioned for Acquisitions
Press release from the issuing company
DAYTON, Ohio--April 18, 2002--Standard Register today reported 2002 first-quarter net income of $11 million or $0.39 per diluted share for the period ended March 31, 2002.
The performance represents growth of approximately 80 percent over 2001 first-quarter operating performance, where net income excluding restructuring charges was $6 million or $0.22 per diluted share. In the 2001 quarter, including the effects of restructuring charges, thecompany reported a loss of $2.22 per diluted share.
"We are pleased to see that our 2001 restructuring, portfolio management and ongoing cost-control efforts are paying off,"said Dennis Rediker, president and chief executive officer of Standard Register. "We are doing the right things to deliver value to shareholders as well as to our customers and associates."
The company's revenue in the 2002 first quarter was $264 million compared to $318 million for the same period last year. The revenue decline was a result of Standard Register's 2001 plan to discontinue approximately $250 million in business, on an annualized basis, that did not provide an adequate return on assets.
"Throughout 2002 we will be investing to strengthen our long-term competitive advantage,"Rediker said. "We are expanding our Six Sigma effort and have launched various other operational excellence and digitization initiatives. We also are investing to strengthen our marketing and sales efforts and continually bolster our technology offerings.
"For 2002, assuming modest revenue growth, we continue to target earnings of approximately $2.00 per diluted share. This performance would represent about 15-percent growth over the 2001 EPS run rate of $1.75 which is based on annualized and seasonally adjusted 2001 fourth-quarter earnings.
"If our typical quarterly seasonality holds true as we move through the year, we should see higher revenue in the second quarter, modest third-quarter revenue, and stronger fourth-quarter performance with revenue that is up 5 to 7 percent over the 2001 fourth quarter."
Acquisitions provide upside growth opportunities for the company.
"With our strong cash flow, $179 million in cash reserves and a low debt ratio, we have the resources to invest in acquisitions as well as internal initiatives,"Rediker said.
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