FROM LAST YEAR'S ANNUAL REPORT:
The first year of the new century brought a loud wake-up call for Standard Register.... It became clear that incremental change would not rectify the situation; dramatic action would be required....
     2001 will be a year of transition ... as we complete our restructuring actions and change organizational models. Once complete, the Renewal Plan will deliver a revitalized company with increased value based on improved performance and growth. We believe the plan is well-defined, logical and compelling....


 ONE YEAR LATER:
The company's 2001 fourth quarter represented its first period of operation following the completion of nine months of restructuring. The transformation is highlighted below with a comparison to the 2000 fourth quarter, which represented the last quarter completed prior to the restructuring.
FINANCIAL HIGHLIGHTS  
(Dollars in millions except per share amounts) FOURTH
QUARTER
2001		  
  OPERATING PERFORMANCE  
Revenue (1) $ 286  
Before Restructuring & Other
Non-Operating Adjustments (2)		  
   Net Income $   14  
   Earnings Per Diluted Share $ 0.51  
   Annualized Return on Equity   13%  
Including Restructuring & Other
Non-Operating Adjustments (2)		  
   Net Income (Loss) $ 11   
   Earnings (Loss) Per Diluted $ 0.41
 
FINANCIAL CONDITION  
Net Assets Invested (3) $ 454
Net Asset Turnover   2.52x
Total Debt $ 203
Cash & Short-Term Investments $ 164
Net Debt (4): Total Capital   9%
 
SHAREHOLDER DATA  
Ending Shares Outstanding(Millions)   27.6
Ending Stock Price $ 18.53
Quarterly Dividend Paid Per $ 0.23
Annualized Dividend Yield   5.0%
 
 
 
 
 Fourth Quarter Percent Increase (Decrease)
 
$ 351   (19%)

 
  $ 9   56%  
$ 0.32   59%
  7%    

 
  $ (46)    
$ (1.67)  
 
 
  $ 641   (29%)  
  2.19x   15%
$ 204   0%
$ 57   188%
  23%    
 
 
    27.6   0%  
  $ 14.25   30%  
  $ 0.23   0%  
    6.5%      
(1) The company has reclassified shipping and handling revenue and cost in accordance with EITF 00-10. This
resulted in an increase in revenue and cost of sales; thus, the reclassification had no impact on reported net income.
(2) Restructuring expense was $4 million and $3 million after tax for the 4th quarter of 2000 and 4th quarter of 2001, respectively. In addtion, charges in the 4th quarter of 2000 for asset impairment and current asset write-offs were $51 million after tax.
(3) Total assets, less cash and short-term investments, less operating (non-debt) liabilities.
(4) Total debt less cash and short-term investments.

The revenue decline reflects the elimination
of low-margin business,
in line with the
restructuring plan.

Standard Register
emerged from
restructuring a more focused and more
profitable company.

The company's financial condition remains strong.