The industry demand for several categories of traditional business forms, which represent about two-thirds of this SBU's total revenue, has been flat or in modest decline in recent years as a result of inroads made by competing technologies. Notwithstanding this trend, the Company has a significant opportunity to increase its market share in accounts that value the Company's emphasis on quality, innovation, service, and workflow efficiency. The remaining one-third of this SBU, including Document Systems, Consulting, Print-on-Demand, and International have good growth potential.
    The decline in 2001 revenue and the improvement in operating profit reflect the restructuring described earlier. This SBU provides significant cash flow to the Company.

Fulfillment Services
This SBU helps its clients communicate effectively with their customers, providing information or marketing materials customized for each recipient. This may take the form of monthly billing statements, customized information kits, or one-to-one marketing communications. Its major markets are financial services, healthcare, and membership.

 
     FULFILLMENT SERVICES
SUMMARY OF OPERATIONS

     
    Quarters   Annual
     4Q00    1Q01    2Q01    3Q01    4Q01        2001    2000    1999
Revenue   $32.4   $28.6   $33.3   $29.5   $29.4   $120.8   $117.7   $101.9
% Change 2.6% 15.5%
                                 
Operating EBIT   $ 0.4   $(0.1)   $ 0.5   $(1.0)   $ 1.1   $ 0.5   $ 1.4   $ 0.6
% Revenue 1.2% (0.4)% 1.6% 3.5% 3.8% 0.4% 1.1% 0.6%
                                 
Identifiable Assets                   $ 46            
% Annual ized Return on Assets (1) 5.6%
                                 
(1) Fourth quarter Earnings Before interest &Tax (EBIT) times 4, converted to after tax basis, divided by assets.
 

    The growth in year 2001 revenue lagged behind that for 2000 as a result of business eliminated in the restructuring. The restructuring improved the mix of business, eliminated some overcapacity, and pushed percentage operating margins modestly higher by the fourth quarter 2001. The focus for this SBU in 2002 will be on a return to top-line growth and improvements in profitability, the latter to be achieved in part as a result of a concerted Six Sigma process-improvement effort.

Label Solutions
This SBU provides custom and stock labels on both a stand-alone basis and as part of an integrated labeling system.
Applications are sold primarily into healthcare, manufacturing, and distribution markets.

 
     LABEL SOLUTIONS
SUMMARY OF OPERATIONS

     
    Quarters   Annual
     4Q00    1Q01    2Q01    3Q01    4Q01        2001    2000    1999
Revenue   $41.2   $38.8   $37.0   $31.2   $31.7   $138.7   $173.8   $171.5
% Change (20.2)% 7.3%
                                 
Operating EBIT   $(0.l)   $ 0.5   $ 1.8   $ 2.0   $ 3.1   $ 7.4   $ 6.5   $ 11.2
% Revenue (0.2)% 1.2% 4.9% 6.6% 9.7% 5.3% 3.7% 6.5%
                                 
Identifiable Assets                   $ 51            
% Annual ized Return on Assets (1) 13.8%
                                 
(1) Fourth quarter Earnings Before interest &Tax (EBIT) times 4, converted to after lax basis, divided by assets.
 


Standard Register                          
2001 Annual Report