The Company announced the following financial goals for the restructuring:

• Complete the elimination of low-margin business within the first three quarters of 2001 while maintaining good customer service.

• Reduce annualized fixed operating costs by $125 million.

• Achieve Net Income of $0.45 per diluted share before restructuring expenses in the fourth quarter 2001. This would represent a 41% increase over the $0.32 per share operating result (net income before impairment and restructuring costs) for the fourth quarter 2000.

• Finance the cash restructuring costs from internally generated funds and maintain a strong financial condition.

    The table below presents an analysis of the quarterly results of operations for the fourth quarter 2000 through the fourth quarter 2001, segregating restructuring expense, impairment expense, and other non-operating write-offs and adjustments from the underlying operations of the Company. The reader's attention is drawn, in particular, to the comparison of the 2000 and 2001 fourth quarters, which bracketed the restructuring period.
    The discussion of sequential quarterly results that follows is consistent with the manner in which the Company planned and communicated its restructuring. A discussion of annual results follows the quarterly discussion.

 

STANDARD REGISTER COMPANY
SUMMARY OF OPERATIONS

   
        Restructuring Period       
          4Q00           1Q01        2Q01        3Q01        4Q01       
  OPERATIONS                          
  Revenue   $351     $318   $306   $278   $286    
  Gross Margin   125     114   105   90   112    
  % Revenue   35.5%     35.8%   34.3%   32.2%   39.0%    
  SG&A Expense   96     88   80   75   76    
  EBITDA   29     26   25   14   36    
  % Revenue   8.3%     8.2%   8.1%   5.1%   12.4%    
  Depreciation & Amortization   12     14   13   11   9    
  EBIT   17     12   12   4   27    
  Interest Expense   3     3   3   3   3    
  Investment Income   (1)     (1)   (1)   (1)   (1)    
  Pretax Income   14     10   10   1   25    
  Net Income Before Non-Operating Items   9     6   6   2   14    
  Earnings Per Diluted Share   0.32     0.22   0.22   0.06   0.51    
                             
  NON-OPERATING ITEMS                          
  Restructuring   (7)     (71)   (2)   (5)   (5)    
  Asset Impairment   (74)     (42)   0   0   0    
  Write-Offs/Adjustments   (8)     0   (5)   0   0    
  Pretax Effect   (89)     (113)   (7)   (5)   (5)    
  Net Income Effect   (55)     (67)   (4)   (3)   (3)    
  TOTAL NET INCOME (LOSS)   $(46)     $(61)   $ 2   $ (1)   $ 11    
  Earnings Per Diluted Share (Loss)   (1.67)     (2.22)   0.07   (0.05)   0.41    
 


Standard Register                          
2001 Annual Report