CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME		 The Standard Register Company

                     
      52 WEEKS ENDED     52 Weeks Ended   52 Weeks Ended  
    
   DECEMBER 30,       December 31,   January 2,     
  (Dollars in thousands, except per share amounts)   2001     2000   2000  
  REVENUE                
      Produces   $ 984,188     $1,142,393   $1,203,564  
      Services   212,247     211,366   190,422  
          Total revenue   1,196,435     1,353,759   1,393,986  
  OPERATING EXPENSES                
      Cost of sales   781,339     872,603   888,356  
      Engineering and research   14,385     10,289   8,875  
      Selling and administrative   304,499     354,542   344,388  
      Depreciation and amortization   45,419     54,694   50,858  
      Asset impairments   41,512     73,746   —  
      Restructuring charges   84,014     24,633   —  
          Total cost and expense   1,271,168     1,390,507   1,292,477  
  INCOME (LOSS) FROM OPERATIONS   (74,733)     (36,748)   101,509  
  OTHER INCOME (EXPENSE)                
      Interest expense   (12,755)     (12,691)   (13,850)  
      Investment income and other   3,171     2,750   1,878  
          Total other expense   (9,584)     (9,941)   (11,972)  
  INCOME (LOSS) FROM CONTINUING                
      OPERATIONS BEFORE INCOME TAXES   (84,317)     (46,689)   89,537  
  INCOME TAXES (BENEFIT)   (34,984)     (17,514)   33,797  
  INCOME (LOSS) FROM CONTINUING OPERATIONS DISCONTINUED OPERATIONS   (49,333)     (29,175)   55,740  
      Loss from operations, net of applicable                
          income taxes of ($350)   —     —   (509)  
      Gain on sale, net of applicable income                
          taxes of $10,568   —     —   15,670  
  NET INCOME (LOSS)   $ (49,333)     $ (29,175)   $ 70,901  
  BASIC EARNINGS PER SHARE                
      Income (loss) from continuing operations   $ (1.79)     $ (1.06)   $ 1.99  
      Loss from discontinued operations   —     —   (0.02)  
      Gain on sale of discontinued operations   —     —   0.56  
      Net income (loss)   $ (1.79)     $ (1.06)   $ 2.53  
  DILUTED EARNINGS PER SHARE                
      Income (loss) from continuing operations   $ (1.79)     $ (1.06)   $ 1.98  
      Loss from discontinued operations   —     —   (0.02)  
      Gain on sale of discontinued operations   —     —   0.56  
      Net income (loss)   $ (1.79)     $ (1.06)   $ 2.52  
  NET INCOME (LOSS)   $ (49,333)     $ (29,175)   $ 70,901  
      Minimum pension liability adjustment, net of                
          $134, $349, and $(501) deferred income tax                
          (expense) benefit   (199)     (517)   744  
      Deferred cost on interest rate swap, net of $4,095                
          deferred income tax benefit   (6,075)     —   —  
  COMPREHENSIVE INCOME (LOSS)   $ (55,607)     $ (29,692)   $ 71,645  
 
See accompanying notes.

                

Standard Register                          
2001 Annual Report