Converted by EDGARwiz

0000906318-10-000096.txt : 20101029 0000906318-10-000096.hdr.sgml : 20101029 20101029152708 ACCESSION NUMBER: 0000906318-10-000096 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20101029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101029 DATE AS OF CHANGE: 20101029 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: 0103 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11699 FILM NUMBER: 101151672 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 8-K 1 sr8k102910.htm FORM 8-K Converted by EDGARwiz

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report: October 29, 2010

(Date of earliest event reported)

THE STANDARD REGISTER COMPANY

(Exact name of Registrant as specified in its Charter)

Ohio

(State or other jurisdiction of incorporation)

1-1097

(Commission File No.)

31-0455440

(IRS Employer Identification Number)


600 Albany Street, Dayton, Ohio	45417
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (937) 221-1000

N/A

(Former name or former address, if changed since last report)

Item 2.02 Results of Operations and Financial Condition

The information in this Item 2.02 (including the exhibit referenced below) is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

On October 29, 2010, the Company issued an earnings release announcing its financial results for the third quarter ended October 3, 2010. A copy of the earnings press release is attached as Exhibit 99.1 and is furnished under this Item 2.02.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.

Description

99.1

Press Release dated October 29, 2010

99.2

Third Quarter 2010 Investor Conference Call

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 hereunto duly authorized.


REGISTRANT	THE STANDARD REGISTER COMPANY


Date: October 29, 2010	By: /s/Gerard D. Sowar
	Gerard D. Sowar, Vice President, General Counsel and Secretary

EX-99 2 ex991.htm EXHIBIT 99.1 Converted by EDGARwiz

Standard Register

600 Albany St. · Dayton, OH 45417

Investor and media contact:

937.221.1000 · 937.221.1486 (fax)

Shaun C. Smith · 937.221.1504

www.standardregister.com

shaun.smith@standardregister.com

For Release on October 29, 2010 at 8:00AM EDT

Standard Register Reports Third Quarter 2010 Financial Results

Increased Profits, Cash Flow and Stabilized Revenue During Quarter

DAYTON, Ohio (October 29, 2010) – Standard Register (NYSE: SR) today announced its financial results for the third quarter, which ended October 3, 2010. For the quarter, the Company reported revenue of $163.6 million and a net profit of $1.4 million, or $0.05 per share. The third quarter results compare to last year’s revenue of $163.5 million and a net loss of $5.5 million, or $0.19 per share, which included $10.6 million, or $0.22 per share after tax, of restructuring expense primarily related to the MyC3 strategic earnings improvement initiative announced during the quarter. Through the first nine months, the Company reported revenue of $495.7 million and a net profit of $0.5 million, or $0.02 per share. The first nine-month results compare to last year’s revenue of $509.2 million and a net loss of $13.3 million, or $0.46 per share, which in addition to the MyC3 restructuring incurred du ring the quarter, included pension settlement charges of $20.4 million, or $0.43 per share after tax.

Results from Operations

The Company posted its sixth consecutive quarter of stabilizing revenue trends resulting in growth for the quarter of $0.1 million, net income of $1.4 million, and positive cash flow of $7.7 million when measured from a non-GAAP net debt basis.

“Returning the Company to growth has been a principal objective of our turnaround,” stated Joseph Morgan, president and chief executive officer. “Revenue, profits and cash flow are the key metrics that we use internally to measure our progress. To see all three metrics move in a positive direction during the quarter provides validation that our strategy is working.”

Healthcare rebounded from the prior quarter posting one percent revenue growth over the prior year third quarter with solid growth in patient communications, wristbands and labels, and workflow solutions. The Industrial market segment continues to show steady growth of twelve percent over the prior year, primarily due to continued but moderating economic recovery within its manufacturing customer base, growth from new customers in both our Mexico and domestic operations and new revenues from in-mold labeling solutions. Within our Commercial business unit, Financial Services continued to reduce their revenue declines by bringing on new customers, although not overcoming continued challenges in technology automation and other printed product unit declines. Only the Emerging market segment showed signs of weakening revenue trends as the Company intentionally began balancing the pursuit of unit gr owth in a highly commoditized and aggressively priced product categories against improving overall profitability within the segment. Across all business units, we experienced double-digit growth within our marketing solutions.

Gross margin as a percent of revenue was 31.7 for the quarter versus 32.5 in the prior year. LIFO inventory adjustments continue to be the major difference between the two periods as a favorable $0.7 million was recorded for the current period versus a favorable $2.3 million for the same period last year. Through nine months, gross margin was identical between the two years at 31.7 percent of revenue with LIFO at $2.6 million favorable for the current year, versus $3.0 million favorable for the prior year. The cost containment portions of the MyC3 initiative, announced last year, allowed the Company to maintain the gross margin from operations despite lower revenue units.

Selling, general and administrative (SG&A) expenses were reduced $1.6 million during the quarter as MyC3 savings begin to offset planned investments in technology, materials science, and key expertise to support our market development. On a year-to-date basis, SG&A expenses are up $2.9 million relative to the prior year.

Net income for the quarter was $1.4 million, or $0.05 per share, compared with a loss of $5.5 million, or $0.19 per share for the prior year quarter. Adjusting for pension loss amortization, pension settlement losses and restructuring and impairment charges, non-GAAP adjusted net income was $4.2 million, or $0.15 per share for the third quarter of 2010, compared with non-GAAP adjusted net income of $3.4 million, or $0.11 per share for the prior year quarter. On a year-to-date basis, net income of $0.5

million, or $0.02 per share compared with a net loss of $13.3 million, or $0.46 per share for the prior year. Adjusting for pension loss amortization, pension settlement losses and restructuring and impairment charges, non-GAAP adjusted net income was $9.8 million, or $0.34 per share compared with non-GAAP adjusted net income of $13.1 million, or $0.46 per share for the prior year.

Capital expenditures were $12.8 million through the first nine months using a combination of $6.5 million in cash and $6.3 million through operating and capital lease agreements. In addition, the Company purchased the assets of Fusion Graphics, Inc. for $2.5 million during the second quarter. Capital expenditures are expected to end the year in the $15-17 million range. Pension funding was $17.7 million through the first nine months with an additional $7.6 million planned for the fourth quarter. Although positive during the quarter, non-GAAP cash on a net debt basis was $3.2 million negative for the first nine months.

Dividend

On Thursday, October 28, 2010, Standard Register’s board of directors declared a quarterly dividend of $0.05 per share payable on December 10, 2010, to shareholders of record as of November 26, 2010. The board will consider future dividend payments on a quarter-by-quarter basis in accordance with its normal practice.

Conference Call

Standard Register’s President and Chief Executive Officer Joe Morgan and Chief Financial Officer Bob Ginnan will host a conference call at 10:00 a.m. EDT on October 29, 2010, to review the third quarter results. The call can be accessed via an audio web cast accessible at: http://www.standardregister.com/investorcenter.

About Standard Register

Standard Register is a premier document services provider, trusted by companies to manage the critical documents they need to thrive in today’s competitive climate. Employing nearly a century of industry expertise, Lean Six Sigma methodologies and other leading technologies, the Company helps organizations increase efficiency, reduce costs, mitigate risks, grow revenue and meet the challenges of a changing business landscape. The Company offers document and label solutions, technology solutions, consulting and print supply chain services to help clients manage documents throughout their enterprises. More information is available at http://www.standardregister.com.

Safe Harbor Statement

This report includes forward-looking statements covered by the Private Securities Litigation Reform Act of 1995. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. All statements regarding our expected future financial condition, revenues or revenue growth, projected costs or cost savings, cash flows and future cash obligations, dividends, capital expenditures, business strategy, competitive positions, market shares, growth opportunities for existing products or products under development, and objectives of management are forward-looking statements that involve certain risks and uncertainties. In addition, forward-looking statements include statements in which we use words such as “anticipates,” “projects,” “expects,” “plans,” “intends,” “believes,” “estimates,” “targets,&# 148; and other similar expressions that indicate trends and future events. These forward-looking statements are based on current expectations and estimates. We cannot assure you that such expectations will prove to be correct. The Company undertakes no obligation to update forward-looking statements as a result of new information, since these statements may no longer be accurate or timely. Because such statements deal with future events, actual results for fiscal year 2010 and beyond could differ materially from our current expectations.

Factors that could cause the Company’s results to differ materially from those expressed in forward-looking statements include, without limitation, variation in demand and acceptance of the Company’s products and services, the frequency, magnitude and timing of paper and other raw material price changes, general business and economic conditions beyond the Company’s control, timing of the completion and integration of acquisitions, the consequences of competitive factors in the marketplace including the ability to attract and retain customers, results of the MyC3 initiative and other cost-containment strategies, and the Company’s success in attracting and retaining key personnel. Additional information concerning factors that could cause actual results to differ materially from those projected is contained in the Company’s filing with The Securities and Exchange Commission, including its report on Form 10- K for the year ended January 3, 2010.

Non-GAAP Measures Presented in This Press Release

financial position, or cash flows where amounts are either excluded or included, not in accordance with generally accepted accounting principles. We discuss several measures of operating performance including adjusted net income and earnings per share and cash flow on a net debt basis, which are not calculated in accordance with GAAP. These non-GAAP measures should not be considered as substitutes for, or superior to, results determined in accordance with GAAP.

Management evaluates the Company’s results excluding pension loss amortization, pension settlements, restructuring charges, and asset impairments. We believe that this non-GAAP financial measure is useful to investors because it provides a more complete understanding of our current underlying operating performance, a clearer comparison of current period results with past reports of financial performance, and greater transparency regarding information used by management in its decision making. Internally, management and our Board of Directors use this non-GAAP measure to evaluate our business performance and to establish incentive compensation.

In addition, because our credit facility is borrowed under a revolving credit agreement, which currently permits us to borrow and repay at will up to a balance of $100 million (subject to limitations related to receivables, inventories, and letters of credit), we take the measure of cash flow performance prior to borrowing or repayment of the credit facility. In effect, we evaluate cash flow as the change in net debt (credit facility debt less cash and cash equivalents).

The table below provides a reconciliation of these non-GAAP measures to their most comparable measure calculated in accordance with GAAP.


THE STANDARD REGISTER COMPANY
		STATEMENT OF OPERATIONS
		(Dollars in thousands, except per share amounts)
Third Quarter			Y-T-D
13 Weeks Ended	13 Weeks Ended		39 Weeks Ended	39 Weeks Ended
3-Oct-10	27-Sep-09		3-Oct-10	27-Sep-09
$ 163,588	$ 163,528	TOTAL REVENUE	$ 495,693	$ 509,163

111,811	110,365	COST OF SALES	338,589	347,583

51,777	53,163	GROSS MARGIN	157,104	161,580

		COSTS AND EXPENSES
49,276	50,867	Selling, general and administrative	153,929	151,000
-	665	Pension settlement losses	-	20,412
(803)	182	Environmental remediation	(803)	106
-	-	Asset impairments	-	850
32	10,558	Restructuring and other exit costs	1,490	10,765

48,505	62,272	TOTAL COSTS AND EXPENSES	154,616	183,133

3,272	(9,109)	INCOME (LOSS) FROM OPERATIONS	2,488	(21,553)

		OTHER INCOME (EXPENSE)
(626)	(288)	Interest expense	(1,617)	(924)
11	98	Other income	203	355
(615)	(190)	Total other expense	(1,414)	(569)

2,657	(9,299)	INCOME (LOSS) BEFORE INCOME TAXES	1,074	(22,122)


1,276	(3,832)	Income Tax Expense (Benefit)	616	(8,853)

$ 1,381	$ (5,467)	NET INCOME (LOSS)	$ 458	$ (13,269)

28,933	28,848	Average Number of Shares Outstanding - Basic	28,906	28,827
28,934	28,848	Average Number of Shares Outstanding - Diluted	28,940	28,827

$ 0.05	$ (0.19)	BASIC AND DILUTED INCOME (LOSS) PER SHARE	$ 0.02	$ (0.46)

$ 0.05	$ 0.05	Dividends per share declared for the period	$ 0.15	$ 0.33

		MEMO:
$ 5,469	$ 5,723	Depreciation and amortization	$ 17,748	$ 18,143
$ 4,668	$ 3,551	Pension loss amortization	$ 14,004	$ 11,754

		SEGMENT OPERATING RESULTS
		(Dollars in thousands)
Third Quarter			Y-T-D
13 Weeks Ended	13 Weeks Ended		39 Weeks Ended	39 Weeks Ended
3-Oct-10	27-Sep-09		3-Oct-10	27-Sep-09
		REVENUE
$ 43,665	$ 44,932	Financial Services	$ 131,785	$ 142,346
38,937	40,243	Emerging	122,244	123,880
82,602	85,175	Total Commercial	254,029	266,226

61,384	60,913	Healthcare	184,648	195,493
19,602	17,440	Industrial	57,016	47,444
$ 163,588	$ 163,528	Total Revenue	$ 495,693	$ 509,163

		GROSS MARGIN
$ 12,363	$ 12,992	Financial Services	$ 39,139	$ 41,393
10,316	11,002	Emerging	31,687	33,883
22,679	23,994	Total Commercial	70,826	75,276

22,153	21,998	Healthcare	67,155	70,245
6,256	4,878	Industrial	16,563	13,074
689	2,293	LIFO adjustment	2,560	2,985
$ 51,777	$ 53,163	Total Gross Margin	$ 157,104	$ 161,580

		OPERATING INCOME (LOSS)
$ 1,456	$ 1,336	Financial Services	$ 4,923	$ 6,063
(589)	(997)	Emerging	(3,509)	(1,891)
867	339	Total Commercial	1,414	4,172

4,875	3,959	Healthcare	12,899	16,526
728	(376)	Industrial	(421)	(949)
(3,813)	(13,221)	Unallocated	(12,818)	(41,871)
$ 2,657	$ (9,299)	Total Operating Income (Loss)	$ 1,074	$ (22,122)


		BALANCE SHEET
		(Dollars in thousands)
			3-Oct-10	3-Jan-10
		ASSETS
		Cash and cash equivalents	$ 476	$ 2,404
		Accounts and notes receivable	109,551	108,524
		Inventories	30,131	33,625
		Other current assets	25,611	24,504
		Total current assets	165,769	169,057
		Plant and equipment	78,172	85,740
		Goodwill and intangible assets	8,860	6,557
		Deferred taxes	100,035	104,691
		Other assets	11,450	13,676
		Total assets	$ 364,286	$ 379,721
		LIABILITIES AND SHAREHOLDERS' EQUITY
		Current portion long-term debt	$ 1,443	$ 35,868
		Other current liabilities	73,012	77,349
		Deferred compensation	6,385	7,699
		Long-term debt	40,574	-
		Retiree healthcare obligation	7,023	7,425
		Pension benefit obligation	181,326	202,146
		Other long-term liabilities	6,640	7,080
		Shareholders' equity	47,883	42,154
		Total liabilities and shareholders' equity	$ 364,286	$ 379,721

		CONSOLIDATED STATEMENTS OF CASH FLOWS
		(Dollars in thousands)
		(Unaudited)
			39 Weeks Ended
			3-Oct-10	27-Sep-09
		Net income (loss) plus non-cash items	$ 31,903	$ 40,199
		Working capital	4,142	7,853
		Restructuring payments	(4,361)	(5,521)
		Contributions to qualified pension plan	(17,700)	(20,600)
		Other (1)	(3,057)	(9,084)
		Net cash provided by operating activities	10,927	12,847
		Capital expenditures, net	(6,458)	(6,108)
		Acquisition	(2,460)	-
		Proceeds from sale of equipment	164	634
		Net cash used in investing activities	(8,754)	(5,474)
		Net change in borrowings under credit facility	1,291	2,056
		Principal payments on long-term debt	(1,124)	(159)
		Dividends paid	(4,356)	(9,589)
		Other	110	154
		Net cash used in financing activities	(4,079)	(7,538)
		Effect of exchange rate	(22)	101
		Net change in cash	$ (1,928)	$ (64)
		(1) Includes deferred compensation an non-qualified pension payments and changes in other non-current assets and liabilities

		RECONCILIATION OF GAAP TO NON-GAAP MEASURES
		(Dollars in thousands, except per share amounts)
Third Quarter			Y-T-D
13 Weeks Ended	13 Weeks Ended		39 Weeks Ended	39 Weeks Ended
3-Oct-10	27-Sep-09		3-Oct-10	27-Sep-09
$ 1,381	$ (5,467)	GAAP Net Income (Loss)	$ 458	$ (13,269)
		Adjustments, net of tax:
2,814	2,141	Pension loss amortization	8,443	7,086
-	401	Pension settlement losses	-	12,306
19	6,365	Restructuring and impairment charges	898	7,003
$ 4,214	$ 3,440	Non-GAAP Net Income	$ 9,799	$ 13,126
$ 0.05	$ (0.19)	GAAP Income (Loss) Per Share	$ 0.02	$ (0.46)
		Adjustments, net of tax:
0.10	0.07	Pension loss amortization	0.29	0.25
-	0.01	Pension settlement losses	-	0.43
-	0.22	Restructuring and impairment charges	0.03	0.24
$ 0.15	$ 0.11	Non-GAAP Income Per Share	$ 0.34	$ 0.46

		GAAP Net Cash Flow	$ (1,928)	$ (64)
		Adjustments:
		Credit facility paid (borrowed)	(1,291)	(2,056)
		Non-GAAP Net Cash Flow	$ (3,219)	$ (2,120)

EX-99 3 ex992.htm EXHIBIT 99.2 Converted by EDGARwiz

Standard Register

Third Quarter 2010

Investor Conference Call

October 29, 2010

10:00 AM EDT

Safe Harbor Statement

This presentation includes forward-looking statements covered by the Private Securities Litigation Reform Act of 1995. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results for fiscal year 2010 and beyond could differ materially from the Company’s current expectations. Forward-looking statements are identified by words such as “anticipates,” “projects,” “expects,” “plans,” “intends,” “believes,” “estimates,” “targets,” and other similar expressions that indicate trends and future events.

Factors that could cause the Company’s results to differ materially from those expressed in forward-looking statements include, without limitation, variation in demand and acceptance of the Company’s products and services, the frequency, magnitude and timing of paper and other raw-material-price changes, general business and economic conditions beyond the Company’s control, timing of the completion and integration of acquisitions, the consequences of competitive factors in the marketplace including the ability to attract and retain customers, results of the MyC3 initiative and other cost-containment strategies, and the Company’s success in attracting and retaining key personnel. Additional information concerning factors that could cause actual results to differ materially from those projected is contained in the Company’s filing with The Securities and Exchange Commission, including i ts report on Form 10-K for the year ended January 3, 2010.

The Company undertakes no obligation to update forward-looking statements as a result of new information since these statements may no longer be accurate or timely.

Listed

NYSE

Standard Register

Investment Presentation Statement

The Company reports its results in accordance with Generally Accepted Accounting Principles in the United States (GAAP). However, we believe that certain non-GAAP measures found in this press release when presented in conjunction with comparable GAAP measures are useful for investors. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows where amounts are either excluded or included not in accordance with generally accepted accounting principles. We discuss several measures of operating performance including adjusted net income, earnings per share, and cash flow and capital structure on a net debt basis which are not calculated in accordance with GAAP. These non-GAAP measures should not be considered as substitutes for or superior to results determined in accordance with GAAP.

Management evaluates the Company’s results excluding pension loss amortization, pension settlements, restructuring charges, and asset impairments. We believe that this non-GAAP financial measure is useful to investors because it provides a more complete understanding of our current underlying operating performance, a clearer comparison of current period results with past reports of financial performance, and greater transparency regarding information used by management in its decision-making. Internally, management and our Board of Directors use this non-GAAP measure to evaluate our business performance and to establish incentive compensation.

In addition, because our credit facility is borrowed under a revolving credit agreement which currently permits us to borrow and repay at will up to a balance of $100 million (subject to limitations related to receivables, inventories, and letters of credit), we take the measure of cash flow performance prior to borrowing or repayment of the credit facility. In effect, we evaluate cash flow as the change in net debt (credit facility debt less cash and cash equivalents).

Listed

NYSE

Standard Register

Opening Remarks

Joseph P. Morgan, Jr.
President & Chief Executive Officer

Q3 Financial Highlights

•

Revenue

$0.1 million increase

Sixth consecutive quarter of stability

•

Gross Margin

Slight improvement on a % basis when factoring out LIFO effect

•

SG&A

Decreased by $1.6 million

MyC3 savings begin to offset planned investments

•

Net Income

$1.4 million or $0.05 per share

Non-GAAP adjusted income up $0.8 million from prior year

•

Cash Flow

$7.7 million positive for quarter

$3.2 million negative YTD – intend to be near breakeven by year-end

Listed

NYSE

Standard Register

Our turnaround plan is in process

•

In 2009, we began a turnaround designed to…

Stabilize revenue

Improve earnings

Generate cash flow to fund pension, investments and dividends

•

The key steps were to…

Establish an operational framework – 5 Points of Change

Advance the culture - Market & customer focused

Establish a growth strategy – Outside-In

Listed

NYSE

Standard Register

We are on track with our goals

•

Our goals were to…

√ Stabilize revenue

√ Improve earnings

√ Generate cash


	Revenue Change ($Millions)	Earnings Per Share	Non-GAAP Cash Flow ($Millions)
Q109	-32.6	-0.38	-7.6
Q209	-27.8	0.11	7.9
Q309	-25.5	-0.19	-2.5
Q409*	-20	0.03	2.2
Q110	-7.2	-0.03	1.9
Q210	-6.3	0	-12.9
Q310	0.1	0.05	7.7

*Adjusted to remove extra week

Listed

NYSE

Standard Register

Our transformation plan is straight-forward

•

Grow share and optimize

Retain existing customers through superior customer service

Aggressively acquire new customers in target markets

Develop partnerships to take advantage of current production capacity in legacy products

Optimize our supply chain and go-to-market approach

•

Develop new solutions for growth and durability

Obtain critical market expertise to support future needs

Leverage leadership position within focus markets to drive new solutions

Advance our portfolio through a robust make vs. buy process

Listed

NYSE

Standard Register

The MyC3 earnings improvement announced Q3 2009 is on track

•

We committed to generate $30-40 million improvement in net annual earnings by 2012

•

To date we have completed 397 ideas projected to improve earnings by >$40 million

•

Of those ideas we have realized $19 million YTD

•

We have purposely reinvested $12 million into technology enhancements, go-to-market, employee development and incentives

•

Net earnings through nine months = $7 million

Listed

NYSE

Standard Register

The Digital Print Network refresh started

Q1 2010 is essentially complete

•

$10mm investment to transform five regional print centers into “super centers,” equipping each with the high-speed, high-quality color printing, and in-line finishing and bindery capabilities as well as wide-format printers

•

In addition, three of the largest satellite facilities were upgraded with the latest high-speed, monochrome printing equipment.

•

Our digital transformation will deliver:

Quality improvements associated with high print quality and enhanced color management technology

Workflow software that will seamlessly move customer orders from their desktop through our production process without manual intervention

New integrated bindery capabilities that add features customers are demanding like perfect binding, square edge, comb and coil

An improved work environment for Standard Register’s manufacturing associates that provides less ozone, better ergonomics, enhanced safety, and machine uptime

Industry leading machine speeds that allow digital printing to replace offset production at higher quantities

Environmental improvements including a 75% reduction in energy consumption versus our existing fleet of printers, and equipment constructed of recycled and recyclable materials

Listed

NYSE

Standard Register

The SMARTworks® upgrade announced

Q2 2010 was successfully completed

•

SMARTworks, our strategic, web-based technology platform, enables: competitive advantage, value to our customers, and delivery of products and services

The SMARTworks platform has grown to support 800,000 users and 80% of our order volume

•

We are advancing a 7 year IT relationship

•

Key benefits of this initiative:

Demonstrates our commitment to advancing our web-based technology

SMARTworks will be hosted in a next generation data center, one of the most advanced data centers in the world

SMARTworks will deliver the highest levels of stability, security, and performance available for web-based technology

A complete upgrade of the technical infrastructure results in a state of the art, highly virtualized, architecture resulting in a more green footprint and nearly seamless scalability and recovery

Listed

NYSE

Standard Register

The Precision Dynamics agreement announced

Q2 2010 quickly made an impact

•

Provides a cross manufacturing agreement that creates new revenue streams for both organizations

•

Positions SR to increase revenue in patient ID and labeling by leveraging SMARTworks® and SR’s go to market channel

•

Leverages the capabilities of two leading Patient ID companies – SR and PDC

Listed

NYSE

Standard Register

The Fusion Graphics acquisition of Q2 2010 is allowing us to advance our innovation

•

The acquisition provides us with increased intellectual property for In-Mold Labeling

9 registered patents

3 patents pending

1 registered trademark for Grafilm®

•

We launched Grafilm-Roto at the International Association of Rotational Molders annual meeting October 5

Meets manufacturer’s needs for large plastic products such as storage tanks, kayaks and children’s playground equipment

Listed

NYSE

Standard Register

Our business model is making progress


Commercial	· Signed $6.8 million of new contracts YTD, $9.3 million realized from 2009/2010 wins · Revenue continues to stabilize; Profit trends improving · Marketing solutions continue double digit growth

Healthcare	· Signed $12.7 million of new contracts YTD, $9.5 million realized from prior 2009/2010 wins · Novation - renewed majority of base, secured $12 million new & $31 million opportunities · 49% growth in technology revenue; $2.4 million new installs YTD · Patient ID advances: Premier, Broadlane, Precision Dynamics and JL Group

Industrial	· Q3 Revenue growth of 12% over prior year; 20% YTD · Mexico surpassed 2009 full year revenue in nine months, 180% CAGR from start · Signed $6.2 million of new MPS contracts YTD, $5.9 million realized from 2009/2010 wins · Signed $3 million of new In-Mold Labeling opportunities YTD, $47 million opportunities

Shared Services	· MyC3 Initiative on track with $30-40 million earnings improvement · SMARTworks® platform successfully transitioned to new data center · Digital print network refresh essentially complete · Client loyalty measure improving

Listed

NYSE

Standard Register

We extended our position within Premier creating new opportunities

•

Renewed multi-year agreement to provide document management products to Premier members

•

Secured new contract for print shop management services, electronic forms, electronic content management solutions and document imaging services

•

Opportunity to sell to 2,400 hospitals and nearly 70,000 other healthcare sites that comprise the Premier Health Alliance

Protecting $56 million revenue base

Access to ~$25 million of new revenue opportunities

•

Sole supplier to members participating in Premier’s ASCEND (Accelerated Supply Chain Endeavor) program, which is designed to help participants achieve and sustain rapid supply chain performance improvement

Access to $8-10 million of new revenue opportunities

Listed

NYSE

Standard Register

Healthcare continues to advance our Patient Identification solutions

•

Broadlane GPO Contract Expansion

Signed three-year agreement to expand current effective October 1, 2010

Expanded previous document management contract to offer patient identification wristbands

Opportunity to sell to 1,100 acute care hospitals and nearly 50,000 other non-acute care facilities that the GPO serves

Access to $5-$6 million of new revenue opportunities

•

JL Group Limited

Trading partner located in the United Kingdom

Offering Standard Register laser wristbands marketed as PatientBand

Serving an estimated 60 million people through the National Health Service (NHS)

Listed

NYSE

Standard Register

We must continue to offset our challenges

•

Our portfolio is weighted heavily towards legacy products

•

Legacy products will decline due to technology

•

Price is stabilizing but is expected to continue as an issue

•

Pension remains a burden

•

Maintaining a neutral if not slightly positive cash flow is critical

Listed

NYSE

Standard Register

Third Quarter & Year-to-Date Financial Review

Robert M. Ginnan
VP, Treasurer & Chief Financial Officer

Operating Statement ($ in Millions)


Third Quarter				Operating Statement	Nine Months
2010		2009			2010		2009

163.6		163.5		Revenue	495.7		509.2
0.0%		-13.5%		% Change	-2.6%		-14.4%

51.8		53.2		Gross Margin	157.1		161.6
31.7%		32.5%		% Revenue	31.7%		31.7%
	% Rev		% Rev			% Rev		% Rev
49.3	30.1%	50.9	31.1%	SG&A Expense	153.9	31.1%	151.0	29.7%
0.0	0.0%	0.7	0.4%	Pension Settlement	0.0	0.0%	20.4	4.0%
-0.8	-0.5%	0.2	0.1%	Environmental Remediation	-0.8	-0.2%	0.1	0.0%
0.0	0.0%	10.6	6.5%	Restructuring & Impairment	1.5	0.3%	11.6	2.3%
0.6	0.4%	0.2	0.1%	Interest Expense & Other	1.4	0.3%	0.6	0.1%
2.7	1.6%	-9.3	-5.7%	Pretax Income / (Loss)	1.1	0.2%	-22.1	-4.3%

1.3	0.8%	-3.8	-2.3%	Income Taxes	0.6	0.1%	-8.9	-1.7%

1.4	0.8%	-5.5	-3.3%	Total Net Income / (Loss)	0.5	0.1%	-13.3	-2.6%
0.05		-0.19		Total Earnings per Share	0.02		-0.46

Listed

NYSE

Standard Register

Segment Operating Results ($ in Millions)


Third Quarter				Segment Operating Results	Nine Months
2010		2009			2010		2009
	% Chg		% Chg	Revenue		% Chg		% Chg
43.7	-2.8%	44.9	-15.6%	Financial Services	131.8	-7.4%	142.3	-15.8%
38.9	-3.2%	40.2	-16.1%	Emerging Markets	122.2	-1.3%	123.9	-18.5%
82.6	-3.0%	85.2	-15.8%	Total Commercial	254.0	-4.6%	266.2	-17.1%

61.4	0.8%	60.9	-10.9%	Healthcare	184.6	-5.5%	195.5	-7.7%
19.6	12.4%	17.4	-10.5%	Industrial	57.0	20.2%	47.4	-23.7%
163.6	0.0%	163.5	-13.5%	Total Revenue	495.7	-2.6%	509.2	-14.4%

	% Rev		% Rev	Gross Margin		% Rev		% Rev
12.4	28.3%	13.0	28.9%	Financial Services	39.1	29.7%	41.4	29.1%
10.3	26.5%	11.0	27.3%	Emerging Markets	31.7	25.9%	33.9	27.3%
22.7	27.5%	24.0	28.2%	Total Commercial	70.8	27.9%	75.3	28.3%

22.2	36.1%	22.0	36.1%	Healthcare	67.2	36.4%	70.2	35.9%
6.3	31.9%	4.9	28.0%	Industrial	16.6	29.1%	13.1	27.6%
0.7		2.3		LIFO Adjustment	2.6		3.0
51.8	31.7%	53.2	32.5%	Total Gross Margin	157.1	31.7%	161.6	31.7%

	% Rev		% Rev	Operating Income / (Loss)		% Rev		% Rev
1.5	3.3%	1.3	3.0%	Financial Services	4.9	3.7%	6.1	4.3%
-0.6	-1.5%	-1.0	-2.5%	Emerging Markets	-3.5	-2.9%	-1.9	-1.5%
0.9	1.0%	0.3	0.4%	Total Commercial	1.4	0.6%	4.2	1.6%

4.9	7.9%	4.0	6.5%	Healthcare	12.9	7.0%	16.5	8.5%
0.7	3.7%	-0.4	-2.2%	Industrial	-0.4	-0.7%	-0.9	-2.0%
-3.8		-13.2		Unallocated¹	-12.8		-41.9
2.7	1.6%	-9.3	-5.7%	Total Operating Income / (Loss)	1.1	0.2%	-22.1	-4.3%
¹A reconciliation of Unallocated is provided in Note 14 of the Form 10-Q for the quarterly period ended October 3, 2010.

Listed

NYSE

Standard Register

Balance Sheet Summary ($ in Millions)


		Operating Investment
Sep-10	Sep-09		Sep-10	Dec-09
92.3	82.3	Working Capital [Excl Cash & Debt]	92.3	89.3
9.1x	8.6x	Turnover	9.1x	7.8x

78.2	90.5	Capital Assets @ NBV	78.2	85.7
170.5	172.7	Total Working + Capital Assets	170.5	175.0
5.0x	4.1x	Turnover -- Working Capital + Capital Assets	5.0x	4.0x

38.5	40.9	Deferred Tax Asset [Excl Pension Liability¹]	38.5	38.7
0.3	-0.8	All Other Net LT Assets / (Liabilities)	0.3	-2.0
209.2	212.9	Net Operating Investment	209.2	211.8
		Capital Structure
Sep-10	Sep-09		Sep-10	Dec-09
37.0	35.8	Credit Facility	37.0	35.7
-0.5	-0.2	Less Cash & Short-term Investments	-0.5	-2.4
36.5	35.5	Net Debt	36.5	33.3
17.5%	16.7%	Net Debt : Total Capital	17.5%	15.7%

119.8	129.9	Pension Liability [Net of Tax¹]	119.8	136.1
3.9	0.0	Capitalized Lease Obligation	3.9	0.0
1.1	0.2	Loan Payable	1.1	0.2
161.3	165.6	Total Debt	161.3	169.6
77.1%	77.8%	Total Debt : Total Capital	77.1%	80.1%
46.7%	43.2%	Total Debt : Total Capital on a GAAP Basis	46.7%	46.0%

47.9	47.3	Shareholder's Equity	47.9	42.2
209.2	212.9	Total Capital	209.2	211.8
¹Deferred Tax Asset related to the Pension Liability is $64.1 September 2009, $66.0 December 2009 and $61.5 September 2010

Listed

NYSE

Standard Register

Cash Flow Summary ($ in Millions)


Third Quarter		Cash Flow Summary	Nine Months
2010	2009		2010	2009
16.6	8.2	From Operations¹	33.1	39.2

-2.1	-1.1	Capital Expenditures	-6.5	-6.1
-1.4	-1.4	Dividends Paid	-4.4	-9.6
0.0	0.0	Acquisition	-2.5	0.0
-4.2	-6.1	Pension Funding	-17.7	-20.6
-0.9	-2.7	Restructuring	-4.4	-5.5
-0.3	0.0	Principal Payments on LT Debt	-1.1	-0.2
0.1	0.6	Sale of Assets	0.2	0.6
7.7	-2.5	Non-GAAP Net Cash Flow	-3.2	-2.1
36.5	35.5	Ending Net Debt Balance	36.5	35.5

Reconciliation of GAAP to Non-GAAP
Third Quarter			Nine Months
2010	2009		2010	2009
13.1	-8.1	GAAP Net Cash Flow	-1.9	-0.1
-5.4	5.6	Credit facility paid (borrowed)	-1.3	-2.1
7.7	-2.5	Non-GAAP Net Cash Flow	-3.2	-2.1

¹Excluding Pension Funding and Restructuring

Listed

NYSE

Standard Register

For Additional Information

Shaun C. Smith
VP Finance and Investor Relations

The Standard Register Company

600 Albany Street, Dayton OH 45417

Tel: 937.221.1504

Fax: 937.221.1205

email: shaun.smith@standardregister.com

www.standardregister.com

Managing the documents you can't live without®

Listed

NYSE

Standard Register