<PAGE> 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
<PAGE>
<PAGE> 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 -<PAGE>
<PAGE> 3
<TABLE>
THE STANDARD REGISTER COMPANY
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
<CAPTION>
April 3, January 2,
1994 1994
ASSETS
<S> <C> <C>
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 -
</TABLE>
<PAGE> 4
<TABLE>
THE STANDARD REGISTER COMPANY
CONSOLIDATED STATEMENT OF INCOME
(In Thousands except Data Per Share)
(Unaudited)
<CAPTION>
First Quarter
13 Weeks Ended
April 3, April 4,
1994 1993
<S> <C> <C>
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 -
</TABLE>
<PAGE> 5
<TABLE>
THE STANDARD REGISTER COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
<CAPTION>
First Quarter
13 Weeks Ended
April 3, April 4,
1994 1993
<S>
CASH FLOWS FROM OPERATING ACTIVITIES
<C> <C>
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 -
</TABLE>
<PAGE> 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 -
<PAGE> 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 -
<PAGE> 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 -
