Earnings Call Excerpt
The Standard Register Company (SR)
Q2 2008 Earnings Call
July 25, 2008 10:00 am ET
Executive
Bob Cestelli – Vice President of Investor Relations
Dennis Rediker - President and Chief Executive Officer
Craig Brown - Chief Financial Officer
Joe Morgan - Chief Operating Officer
Analysts
Charles Strauzer – CJS Securities
Jamie Clement – Sidoti & Company
Presentation
Operator
Welcome to the Standard Register’s second quarter conference call. (Operator Instructions) As a reminder the presentation slides for today’s conference are available by accessing the Investor Center's section of the Standard Register website at www.standardregister.com/investorcenter.
I will now turn the conference over to Bob Cestelli, Vice President of Investor Relation.
Bob Cestelli
Joining me are Dennis Rediker, President and Chief Executive Officer, Craig Brown, Chief Financial Officer, and Joe Morgan, Chief Operating Officer.
Please let me remind you that this conference call contains forward-looking-statements including language concerning future projections. This should be considered in conjunction with the Safe Harbor statement contained in our earnings news release as well as the Safe Harbor language that can be found by accessing the homepage of the Investor Center on the Company’s website.
In order to more effectively communicate the Company’s performance and plans, we are changing the order of the presentations. Dennis will provide an overview followed by Craig’s financial review. Joe will then address our key operational initiatives followed by Dennis reviewing our outlook and guidance. We will then address any questions. Now I will turn the call over to Dennis.
Dennis Rediker
Talking about the quarter, the revenue was down in the quarter mainly because of the soft business environment reducing demand for some of our products and a continuing price pressure in some segments as those customers strive to manage the economic environment themselves. However, our adjusted operating income, and to remind you, adjusted operating income is pre-tax profit before restructuring, impairment, pension amortization, and resettlement. So, our adjusted operating income is up $4.8 million compared to the second quarter of '07. The improvement of adjusted operating income is a result of improved gross margin that went from 31.8% last year to 34% this year in spite of lower revenue and that is really the result of our efforts on cost reductions from 2007 second quarter, as well as ongoing productivity gains and cost controls, and the lower SG&A that we set last year that has followed too. The SG&A is down $4.2 million from last year.
- To read the full transcript on Seeking Alpha, click here »
