-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ju6ldZ3CEE3U2Dgjx5/fY/FTJtCwvcxZPGVAnHidYNOuiu3I6Q0aQ3SV+MVLMdsf 80sFTPA3Fgv7UPkFlq8Qyw== 0000093456-96-000003.txt : 19960517 0000093456-96-000003.hdr.sgml : 19960517 ACCESSION NUMBER: 0000093456-96-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: STANDARD REGISTER CO CENTRAL INDEX KEY: 0000093456 STANDARD INDUSTRIAL CLASSIFICATION: MANIFOLD BUSINESS FORMS [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: 001-11699 FILM NUMBER: 96567177 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 > 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1996 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 March 31, 1996 Common Stock - $1.00 Par Value 23,969,867 Class A Stock - $1.00 Par Value 4,725,000 - 1 of 10 - 2 THE STANDARD REGISTER COMPANY INDEX Page No. PART I - FINANCIAL STATEMENTS Balance Sheet March 31, 1996, December 31, 1995 3 Statement of Income 13 Weeks Ended March 31, 1996 and April 2, 1995 4 Statement of Cash Flows 13 Weeks Ended March 31, 1996 and April 2, 1995 5 The 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 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 December 31, 1995. The 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 6-7 PART II - OTHER INFORMATION AND SIGNATURE 8-10 - 2 - 3 THE STANDARD REGISTER COMPANY BALANCE SHEET (Dollars in Thousands) (Unaudited)
March 31, December 31, 1996 1995 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 63,559 $ 33,646 Investment held to maturity 1,315 1,330 Accounts Receivable, less Allowance for Losses 164,445 181,709 Inventories 97,069 97,817 Deferred Income Tax 10,610 10,611 Prepaid Expense 5,218 3,878 Total Current Assets 342,216 328,991 PLANT AND EQUIPMENT Buildings and Improvements 57,500 57,340 Machinery and Equipment 215,060 212,221 Office Equipment 48,210 43,945 Total 320,770 313,506 Less Accumulated Depreciation 136,042 127,871 Depreciated Cost 184,728 185,635 Construction in Process 32,155 27,027 Land 3,312 3,312 Total Plant and Equipment 220,195 215,974 OTHER ASSETS Goodwill, Patents, and Other 2,790 2,842 Investment in F3 2,760 3,150 Investment in Polyforms Joint Venture 4,610 4,546 Total Other Assets 10,160 10,538 TOTAL ASSETS 572,571 555,503 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current Maturities of Long-Term Debt 6,471 6,471 Accounts Payable 19,309 19,025 Dividends Payable - 5,441 Accrued Compensation 23,687 31,973 Accrued Retirement Expense 4,871 2,886 Accrued Other Expense 4,116 6,774 Accrued Taxes, except Income 6,211 5,140 Income Taxes Payable 9,163 2,534 Customer Deposits 14,838 8,334 Deferred Service Contract Income 10,765 8,455 Total Current Liabilities 99,431 97,033 LONG-TERM LIABILITIES Long-Term Debt 4,600 4,600 Retiree Healthcare 26,101 26,101 Deferred Income Taxes 16,552 16,552 Total Long-Term Liabilities 47,253 47,253 SHAREHOLDERS' EQUITY Common Stock, $1.00 Par Value 24,197,313 Shares Issued in 1996 24,197 24,141,758 Shares Issued in 1995 24,142 Class A Stock, $1.00 Par Value 4,725,000 Shares Outstanding 4,725 4,725 Capital in Excess of Stated Value 28,513 27,450 Retained Earnings 372,886 359,334 Treasury Stock, 201,741 Shares at Cost (4,434) (4,434) Total Shareholders' Equity 425,887 411,217 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $572,571 $555,503 - 3 -
4 THE STANDARD REGISTER COMPANY STATEMENT OF INCOME (In Thousands except Data Per Share) (Unaudited)
First Quarter 13 Weeks Ended March 31, April 2, 1996 1995 TOTAL REVENUE $229,673 $204,499 COSTS AND EXPENSES Cost of Products Sold 144,383 129,990 Engineering & Research 2,019 2,012 Selling and Administrative 52,168 46,805 Depreciation and Amortization 8,255 7,375 Interest 165 277 Total Costs and Expenses 206,990 186,459 INCOME BEFORE INCOME TAXES 22,683 18,040 Income Taxes 9,120 7,259 NET INCOME $ 13,563 $ 10,781 Average Number of Shares Outstanding (000) 28,687 28,657 DATA PER SHARE Net Income Primary and Fully Diluted $ 0.47 $ 0.38 Dividends Paid 0.19 0.18 - 4 -
5 THE STANDARD REGISTER COMPANY STATEMENT OF CASH FLOWS (Dollars in Thousands) (Unaudited)
First Quarter 13 Wks Ended March 31, April 2, 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 13,563 $ 10,781 Add Items not Affecting Cash: Depreciation and Amortization 8,255 7,375 Loss on Sale of Facilities 1 5 Net change to Investments 390 - Increase (Decrease) in Cash Arising from Changes in Asset and Liabilities: Accounts Receivable 17,264 8,534 Inventories 749 (12,892) Other Assets (1,329) (2,061) Accounts Payable 284 (2,241) Accrued Expenses (7,887) (7,747) Income Taxes Payable 6,629 4,177 Customer Deposits 6,504 (2,995) Deferred Service Income 2,310 3,752 Net Adjustments 33,170 (4,093) Net Cash Provided by Operating Activities 46,733 6,688 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Facilities 18 57 Proceeds from Sale of Short-term investments 15 - Additions to Plant and Equipment (12,455) (15,974) Investment in Polyforms Joint Venture (64) (710) Net Cash (Used in) Investing Activities (12,486) (16,627) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Issuance of Common Stock 1,118 1,000 Dividends Paid (5,452) (5,160) Net Cash (Used in) by Financing Activities (4,334) (4,160) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,913 (14,099) Cash and Cash Equivalents, Beginning 33,646 55,235 CASH AND CASH EQUIVALENTS, ENDING $ 63,559 $ 41,136 - 5 -
6 THE STANDARD REGISTER COMPANY MANAGEMENT DISCUSSION AND ANALYSIS OF THE INTERIM FINANCIAL STATEMENTS Net income from the first quarter 1996 was $13.6 million, a 26% increase compared to the $10.8 million result for the comparable quarter of 1995; earnings per share were $.47 vs. $.38 a year earlier. The growth in net income was attributed to increased revenue, up 12% overall, and lower paper costs. The Document Management Division's revenue increased 15% to $181 million. Unit growth was 5%. Revenues from targeted growth segments, including Pressure Sensitive, Imaging, Stanfast, Distribution , and Electronic products and services were up 30%. By comparison, revenues from traditional business forms products rose 3%. Communicolor's revenue was $25 million, unchanged as a result of softened demand in the promotional mail market. Management expects the promotional mail market to improve during the second half of the year. The Document Systems Division's revenue rose 5% to $23 million resulting from a 9% increase in both equipment and supplies revenue and a 2% increase in maintenance revenue. Gross margin was 37.1% of revenue in the first quarter of 1996, compared to 36.4% in the comparable period of the prior year. The improvement was primarily attributable to a decrease in paper price levels and the absence of a LIFO inventory adjustment in the current quarter. The Company recorded a pretax LIFO inventory charge of $2.5 million or $.05 per share in the first quarter of 1995. At this writing, paper companies have announced increases in paper prices which will become effective over the next several months. Paper prices are expected to remain below year-end 1995 levels, however. Under this scenario, the Company would expect its year-end LIFO inventory adjustment to be favorable. Selling, administrative, and R&D expenses increased 11% overall reflecting higher sales commissions and increased sales support expenses associated with the 12% increase in revenue. Depreciation expense rose 12%, reflecting higher capital spending and the effect of the March, 1995 acquisition of FCA, a division of Capital Graphics, Inc. Interest expense decreased 40% as a result of a $6.5 million decrease in outstanding debt. The Company's financial condition remains exceptionally strong. Cash and investments exceeded total debt at the end of the quarter by $54 million; this net cash position compares favorably to $24 million at year-end 1995. - 6 - 7 This $30 million increase resulted from record first quarter net income, a 9% reduction in accounts receivable outstanding, and a $6.5 million increase in customer deposits. At quarter-end, cash and cash equivalents stood at $63.6 million. Current assets were 3.4 times the level of current liabilities. The company believes that a combination of internally generated funds and current cash reserves will be adequate to meet operating and financing needs for the near term. - 7 - 8 THE STANDARD REGISTER COMPANY PART II - OTHER INFORMATION ITEMS 1 THRU 5 None Item 6 (a) Exhibits Exhibit No. Description 27 Financial Data Schedule (b) There have been no reports on Form 8-K filed during the quarter for which this report on Form 10-Q is being filed. - 8 - 9 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. April 30, 1996 THE STANDARD REGISTER COMPANY /s/ C. J. Brown By C. J. Brown, Sr. Vice President, Administration, Treasurer & Chief Financial Officer - 9 - 10 EXHIBIT INDEX Number Description 27 Financial Data Schedule - 10 - EX-27 2
5 The Standard Register Company Financial Data Schedule This schedule contains summary financial information extracted from The Standard Register Company financial statements for the quarter ended March 31, 1996, and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS Dec-29-1996 Mar-31-1996 63,559 1,315 170,526 6,081 97,069 342,216 356,237 136,042 572,571 99,431 11,071 28,922 0 0 396,965 572,571 229,197 229,673 144,383 206,990 0 455 165 22,683 9,120 13,563 0 0 0 13,563 0.47 0.47
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