Standard Register Reports Q4 Results, Reduces LossFebruary 26, 2013
Dayton, Ohio-based Standard Register, a leader in critical communications management solutions, announced its financial results for the fourth quarter and full year 2012. The company reported fourth quarter 2012 revenue of $143.6 million and a net loss of $0.2 million or $0.01 per share. The results compare to 2011 fourth quarter revenue of $161.4 million and a net loss of $95.5 million or $3.28 per share. The 2011 fourth quarter loss included a non-cash charge of $89.5 million to establish a valuation allowance against certain deferred tax assets.
Non-GAAP net income from operations after adjustments for pension loss amortization, pension settlement, restructuring charges, postretirement plan termination, tax effect of adjustments and deferred tax valuation allowances was $4.0 million or $0.14 per share for the fourth quarter of 2012, compared to $0.9 million or $0.03 per share for the same period in 2011.
For the full 12 months of 2012, the company reported revenue of $602.0 million and a net loss of $9.1 million or $0.31 per share. The results compare to full year 2011 revenue of $648.1 million and a net loss of $87.7 million or $3.02 per share. Full year 2011 included the $89.5 million valuation allowance and a $20.2 million one-time gain from the termination of the postretirement health care plan.
Non-GAAP adjusted net income from operations for the full year 2012 was $12.2 million or $0.42 per share compared to non-GAAP adjusted net income of $7.7 million or $0.26 per share for the prior year.
"Operational performance continues to improve, which is an indicator that customers are seeing the value of our transition from a traditional printing company to a provider of communications and marketing solutions across multiple delivery channels," said Joseph P. Morgan, Jr., president and chief executive officer. "The restructuring plan that we introduced in January 2012 has resulted in improvements in efficiency as well as helping us align our cost structure with our resources. We are building a sustainable enterprise based on our recognized expertise in managing workflow and our platform of marketing, communications and program management for business and health care."
Morgan continued, "Macro-trends are affecting our traditional printing business, but Standard Register has maintained strong customer relationships. Our qualified pension plan is still a challenge in this low interest rate environment; however, we exceeded our 2012 obligation by funding $22.7 million in contributions to the plan during 2012. We are on track with our restructuring plan and ended the year with $8.2 million in positive cash flow on a net debt basis."
The company previously announced reductions in volume and freight business with a large financial services customer that reorganized its distribution channels and restructured its operations. Revenue from this customer declined $24.2 million ($17.6 million in Legacy products and $6.6 million in Core solutions) in 2012 and is estimated to decline an additional $18 million to $20 million in 2013.