The Standard Register Company (SR, Financial) filed Quarterly Report for the period ended 2009-09-27.
The Standard Register Company's primary business has been the design manufacture and sale of business forms. To meet the needs of today's business environment the business form has evolved to incorporate a wide range of sophisticated features and related services that facilitate the recording storage and communication of business transactions and information. The Standard Register Company has a market cap of $135.6 million; its shares were traded at around $4.7 with a P/E ratio of 17.4 and P/S ratio of 0.2. The dividend yield of The Standard Register Company stocks is 4.3%. The Standard Register Company had an annual average earning growth of 3.6% over the past 5 years.
As part of recording the settlement, we remeasured our pension obligations and plan assets under these plans as of March 1, 2009, the settlement date. The remeasurement resulted in an actuarial gain of $52.8 due to a change in the discount rate used to measure the benefit obligations from 5.75% at December 28, 2008 to 7.0% at March 1, 2009. The change in discount rate is primarily the result of increases in long-term interest rates during the period. Additionally, we updated the fair value of our plan assets and recognized a net actuarial loss of $28.1 due to the actual rate of investment return on our qualified plan being less than the expected rate of return. As a result, we realized a net actuarial gain of $24.7 million which will be amortized into income in future years. This gain reduced our pension liabilities by $24.7, decreased our deferred tax assets by $9.8 million, and reduced accumulated comprehensive losses by $14.9 million.
Additional lump-sum payments were paid in the third quarter of 2009 from our nonqualified retirement plan, which required us to record additional settlement charges of $0.7 this period. As part of recording the settlement, we also remeasured our pension obligation under the plan as of September 1, 2009. The remeasurement resulted in an actuarial loss of $1.3, primarily for a change in the discount rate used to measure the obligation from 7% at March 1, 2009 to 5.75% at September 1, 2009. This loss increased our liabilities by $1.3, increased accumulated other comprehensive losses by $0.8, and increased our deferred tax assets by $0.5.
Also during 2008, we began implementing a plan to redesign our client support infrastructure to more of a centralized model. We transitioned customer transactional and administrative functions from our field sales offices to one of three client support centers. The overall benefit of the change is an optimized client support model along with significant annualized cost savings. We originally expected these actions to generate approximately $5.6 million annually in compensation and related cost savings to be reflected in selling, general, and administrative expenses. We now expect the annual savings rate to be approximately $4.6 million after re-investing a portion of the savings into our client satisfaction operations. As a result of the extended implementation time, we expect to realize the full effect of these savings by the end of 2009. We expected to have involuntary termination costs of $1.5 million; however, as a result of the changes to the plan, we reversed approximately $0.4 million of these costs in the second quarter of 2009.
Year-to-date costs were $0.3 million and consisted of $0.8 for costs associated with the planned closing of facilities that are required to be expensed as incurred and a reversal of $0.5 for lower than expected involuntary termination costs.
On October 22, 2009, Standard Registers board of directors approved a restructuring plan as a result of the MyC3 Initiative. When fully implemented, the Company expects to achieve cost savings between $30 and $40 million, on an annual run-rate basis compared with the fourth quarter of 2009, through a combination of workforce reduction, strategic closure of production and distribution facilities, and other efficiency initiatives. We expect to have involuntary termination costs of $3.6 million; contract termination costs of $5.8 million; and other associated costs of $8.7 million. Of this amount, $10.5 million was recorded in the third quarter for estimated severance costs and third-party consulting costs, with the remaining to be recorded through 2014. Additionally, we will conduct an extensive review of the Companys assets in the fourth quarter and expect to incur between $1.5 and $2.5 million for asset impairments.
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The Standard Register Company's primary business has been the design manufacture and sale of business forms. To meet the needs of today's business environment the business form has evolved to incorporate a wide range of sophisticated features and related services that facilitate the recording storage and communication of business transactions and information. The Standard Register Company has a market cap of $135.6 million; its shares were traded at around $4.7 with a P/E ratio of 17.4 and P/S ratio of 0.2. The dividend yield of The Standard Register Company stocks is 4.3%. The Standard Register Company had an annual average earning growth of 3.6% over the past 5 years.
Highlight of Business Operations:
Third quarter net loss was ($5.5) million compared with income of $2.1 million in 2008. The year-to-date net loss was ($13.3) million, or ($0.46) per share compared with net income of $6.0 million, or $0.21 per share for 2008. On a per share basis, the pension settlements represented a loss of ($0.43) and restructuring charges represented a loss of ($0.22) per share for 2009.As part of recording the settlement, we remeasured our pension obligations and plan assets under these plans as of March 1, 2009, the settlement date. The remeasurement resulted in an actuarial gain of $52.8 due to a change in the discount rate used to measure the benefit obligations from 5.75% at December 28, 2008 to 7.0% at March 1, 2009. The change in discount rate is primarily the result of increases in long-term interest rates during the period. Additionally, we updated the fair value of our plan assets and recognized a net actuarial loss of $28.1 due to the actual rate of investment return on our qualified plan being less than the expected rate of return. As a result, we realized a net actuarial gain of $24.7 million which will be amortized into income in future years. This gain reduced our pension liabilities by $24.7, decreased our deferred tax assets by $9.8 million, and reduced accumulated comprehensive losses by $14.9 million.
Additional lump-sum payments were paid in the third quarter of 2009 from our nonqualified retirement plan, which required us to record additional settlement charges of $0.7 this period. As part of recording the settlement, we also remeasured our pension obligation under the plan as of September 1, 2009. The remeasurement resulted in an actuarial loss of $1.3, primarily for a change in the discount rate used to measure the obligation from 7% at March 1, 2009 to 5.75% at September 1, 2009. This loss increased our liabilities by $1.3, increased accumulated other comprehensive losses by $0.8, and increased our deferred tax assets by $0.5.
Also during 2008, we began implementing a plan to redesign our client support infrastructure to more of a centralized model. We transitioned customer transactional and administrative functions from our field sales offices to one of three client support centers. The overall benefit of the change is an optimized client support model along with significant annualized cost savings. We originally expected these actions to generate approximately $5.6 million annually in compensation and related cost savings to be reflected in selling, general, and administrative expenses. We now expect the annual savings rate to be approximately $4.6 million after re-investing a portion of the savings into our client satisfaction operations. As a result of the extended implementation time, we expect to realize the full effect of these savings by the end of 2009. We expected to have involuntary termination costs of $1.5 million; however, as a result of the changes to the plan, we reversed approximately $0.4 million of these costs in the second quarter of 2009.
Year-to-date costs were $0.3 million and consisted of $0.8 for costs associated with the planned closing of facilities that are required to be expensed as incurred and a reversal of $0.5 for lower than expected involuntary termination costs.
On October 22, 2009, Standard Registers board of directors approved a restructuring plan as a result of the MyC3 Initiative. When fully implemented, the Company expects to achieve cost savings between $30 and $40 million, on an annual run-rate basis compared with the fourth quarter of 2009, through a combination of workforce reduction, strategic closure of production and distribution facilities, and other efficiency initiatives. We expect to have involuntary termination costs of $3.6 million; contract termination costs of $5.8 million; and other associated costs of $8.7 million. Of this amount, $10.5 million was recorded in the third quarter for estimated severance costs and third-party consulting costs, with the remaining to be recorded through 2014. Additionally, we will conduct an extensive review of the Companys assets in the fourth quarter and expect to incur between $1.5 and $2.5 million for asset impairments.
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