-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IxM5Rpz63hcYtBwNiPLGimoD6n2/7zleRI3yIhP87WgeLDs7uXHjAaV6fdPUa8IE ueS7BP2F4dbXKHdEMv0+Pg== 0000093456-94-000001.txt : 19940525 0000093456-94-000001.hdr.sgml : 19940525 ACCESSION NUMBER: 0000093456-94-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940403 FILED AS OF DATE: 19940516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STANDARD REGISTER CO CENTRAL INDEX KEY: 0000093456 STANDARD INDUSTRIAL CLASSIFICATION: 2761 IRS NUMBER: 310455440 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-01097 FILM NUMBER: 94528769 BUSINESS ADDRESS: STREET 1: 600 ALBANY ST CITY: DAYTON STATE: OH ZIP: 45401 BUSINESS PHONE: 5134341000 MAIL ADDRESS: STREET 1: 600 ALBANY STREET STREET 2: P.O. BOX 1167 CITY: DAYTON STATE: OH ZIP: 45401-1167 10-Q 1 THE STANDARD REGISTER COMPANY 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended April 3, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From to Commission File Number 01-1097 THE STANDARD REGISTER COMPANY OHIO CORPORATION 31-0455440 600 ALBANY STREET, DAYTON, OHIO 45401 TELEPHONE NUMBER 513-443-1000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Secu- rities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No. CLASS OUTSTANDING AS OF APRIL 3, 1994 Common Stock - $1.00 Par Value 23,994,546 Class A Stock - $1.00 Par Value 4,725,000 - 1 of 8 - No Exhibits Filed 2 THE STANDARD REGISTER COMPANY INDEX Page No. PART I - FINANCIAL STATEMENTS Consolidated Balance Sheet April 3, 1994, January 2, 1994 3 Consolidated Statement of Income 13 Weeks Ended April 3, 1994 and April 4, 1993 4 Consolidated Statement of Cash Flows 13 Weeks Ended April 3, 1994 and April 4, 1993 5 The consolidated financial statements of the Registrant included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although certain information normally included in financial statements prepared in accordance with generally accepted accounting principles has been condensed or omitted, the Registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K of the Registrant for the year ended January 2, 1994. The consolidated financial statements included herein reflect all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary to present a fair statement of the results for the interim periods. The results for interim periods are not necessarily indicative of trends or of results to be expected for a full year. Management's Discussion and Analysis of the Interim Financial Statements 6 PART II - OTHER INFORMATION AND SIGNATURE 8 - 2 - 3 THE STANDARD REGISTER COMPANY CONSOLIDATED BALANCE SHEET (Dollars in Thousands) (Unaudited)
April 3, January 2, 1994 1994 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 74,587 $ 78,994 Accounts Receivable, less Allowance for Losses 128,293 135,067 Inventories 100,927 98,248 Deferred Income Tax 10,860 10,860 Prepaid Expense 4,797 4,558 Total Current Assets $319,464 $327,727 PLANT AND EQUIPMENT Buildings and Improvements $ 54,878 $ 54,688 Machinery and Equipment 188,179 181,645 Office Equipment 34,304 36,041 Total 277,361 272,374 Less Accumulated Depreciation 124,491 118,411 Depreciated Cost 152,870 153,963 Construction in Process 20,532 17,801 Land 2,509 2,488 Total Plant and Equipment $175,911 $174,252 OTHER ASSETS Patents, Notes, and Other $ 276 $ 354 TOTAL ASSETS $495,651 $502,333 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current Maturities of Long-Term Debt $ 6,472 $ 6,471 Accounts Payable 14,753 20,582 Dividends Payable - 4,874 Accrued Compensation 20,024 27,224 Accrued Retirement Expense 4,138 7,805 Accrued Other Expense (267) 1,223 Accrued Taxes, except Income 4,353 4,574 Income Taxes Payable 6,614 4,761 Deferred Service Contract Income 10,389 6,640 Total Current Liabilities $ 66,476 $ 84,154 LONG-TERM LIABILITIES Long-Term Debt $ 17,541 $ 17,546 Retiree Healthcare 24,482 24,482 Deferred Income Taxes 15,168 15,168 Total Long-Term Liabilities $ 57,191 $ 57,196 SHAREHOLDERS' EQUITY Common Stock, $1.00 Par Value 24,084,632 Shares Issued in 1994 $ 24,085 24,036,796 Shares Issued in 1993 $ 24,037 Class A Stock, $1.00 Par Value 4,725,000 Shares Outstanding 4,725 4,725 Capital in Excess of Stated Value 26,508 25,562 Retained Earnings 318,420 308,413 Treasury Stock, 90,086 Shares at Cost (1,754) (1,754) Total Shareholders' Equity $371,984 $360,983 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $495,651 $502,333 - 3 -
4 THE STANDARD REGISTER COMPANY CONSOLIDATED STATEMENT OF INCOME (In Thousands except Data Per Share) (Unaudited)
First Quarter 13 Weeks Ended April 3, April 4, 1994 1993 TOTAL REVENUE $ 183,875 $ 169,295 COSTS AND EXPENSES Cost of Products Sold $ 116,258 $105,073 Engineering & Research 1,896 1,918 Selling and Administrative 42,385 40,503 Depreciation and Amortization 6,311 6,252 Interest 206 323 Total Costs and Expenses $ 167,056 $ 154,069 INCOME BEFORE INCOME TAXES $ 16,819 $ 15,226 Income Taxes 6,803 5,860 NET INCOME $ 10,016 $ 9,366 Average Number of Shares Outstanding (000) 28,713 28,755 DATA PER SHARE Net Income Primary and Fully Diluted $ 0.35 $ 0.33 Dividends Paid $ 0.17 $ 0.16 - 4 -
5 THE STANDARD REGISTER COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in Thousands) (Unaudited)
First Quarter 13 Weeks Ended April 3, April 4, 1994 1993 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 10,016 $ 9,366 Add (Deduct) Items not Affecting Cash: Depreciation and Amortization $ 6,311 $ 6,252 Loss on Sale of Facilities 33 1 Net Change to Post-Retirement Healthcare - 150 Increase (Decrease) in Cash Arising from Changes in Asset and Liabilities: Accounts Receivable 6,774 6,479 Inventories (2,680) (5,464) Other Assets (215) 827 Accounts Payable (5,830) (5,977) Accrued Expenses (12,578) (10,461) Income Taxes Payable 1,852 2,553 Deferred Service Income 3,749 3,397 Net Adjustments (2,584) (2,243) Net Cash Provided by Operating Activities $ 7,432 $ 7,123 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Facilities $ 2 $ 17 Additions to Plant and Equipment (7,950) (6,670) Net Cash (Used in) Investing Activities $ (7,948) $ (6,653) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Long-Term Debt $ (2) $ (354) Proceeds from Issuance of Common Stock 993 909 Dividends Paid (4,882) (4,602) Net Cash (Used in) by Financing Activities $ (3,891) $ (4,047) NET (DECREASE) IN CASH AND CASH EQUIVALENTS $ (4,407) $ (3,577) Cash and Cash Equivalents at Beginning of Year $ 78,994 $ 86,203 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 74,587 $ 82,626 - 5 -
6 THE STANDARD REGISTER COMPANY MANAGEMENT DISCUSSION AND ANALYSIS OF THE INTERIM FINANCIAL STATEMENTS Net income for the first quarter 1994 was $10.0 million, a 6.9% increase compared to the $9.4 million result for the comparable quarter of 1993; earnings per share were $.35 vs. $.33 a year earlier. Total revenue increased 8.6%, reflecting strong shipment levels of business forms and promotional direct mail. New equipment installations were weaker than the year earlier period, but equipment maintenance revenues were up sharply as a result of new third party service contracts. The cost of products sold increased faster than revenue--10.6% compared to the 8.6% revenue increase mentioned above, reducing the percentage gross margin from 37.9% in first quarter 1993 to 36.8% in the current quarter. Among the factors contributing to this change was an increase in forms price discounts and start-up costs related to the expanded third party equipment service program. The company has had success recently in its program to capture large national forms management accounts from competitors. These accounts ordinarily involve the company's purchase of the remaining inventory stored by the competitor to enable Standard Register to begin servicing the new account immediately; this product is distributed to the customer until depleted, generally over several months, at no product margin. The higher volume of these "buyout" shipments depressed the percentage margin for the quarter, but will lead to improved volume and margins in the future. Paper costs were generally in line with year earlier levels, but should begin to show favorable prior year comparisons in the second and third quarters if current prices persist. There is significant pressure by paper companies, however, to raise prices to repair their depressed margins. If the paper companies are successful in establishing higher prices, the company would attempt to recover the increases by raising forms prices. Selling and administrative costs were up 4.6% and were generally in line with management expectations. Interest expense was down 36.2% as a result of lower debt balances. Engineering & Research and depreciation expenses were close to the 1993 levels. The AMS division reported a loss but showed significant improvement in comparison to the prior year. The company continues to believe the division will return to profitable quarterly operations late in 1994. The preceding factors caused pretax profits to rise 10.5%, but a higher income tax rate reduced the net profit increase to 6.9%. The effective tax rate in the first quarter 1994 was 40.4% compared to 38.5% in the - 6 - 7 comparable 1993 quarter, reflecting the one percent 1993 hike in the federal rate not reported by the company until the fourth quarter 1993 and higher state and local tax rates. Net cash provided by operating activities was $7.4 million, comprised of $16.3 million from net profit and non-cash expenses less $8.9 million in working capital increases. The working capital increase was in line with the $8.6 million increase in the comparable quarter of the previous year. Net cash outflow for the quarter, after allowing for capital spending and dividends, was $4.4 million compared to a $3.6 million outflow for the first quarter 1993. The major reason for the higher outflow in the current period was increased capital spending. The $8.0 million in first quarter capital spending is in line with management's expectation to spend $30 million to $35 million for the total year 1994, excluding any acquisitions. The company's financial condition continues to be very strong. Cash and cash equivalents at quarter-end totalled $74.6 million compared to $24.0 million in total debt, producing a "net cash" position of $50.6 million. This compares to a "net cash" position at the end of the first quarter 1993 of $51.8 million. The company expects to meet its near-term financing needs, including dividends, capital spending, and scheduled debt reduction from a combination of internally generated funds and existing cash reserves. - 7 - 8 THE STANDARD REGISTER COMPANY PART II - OTHER INFORMATION ITEMS 1 THRU 6 None SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. May 3, 1994 THE STANDARD REGISTER COMPANY /s/ C. J. Brown By C. J. Brown, Vice President- Finance, Treasurer & Chief Financial Officer - 8 - -----END PRIVACY-ENHANCED MESSAGE-----