Counselor Top 40 distributor Standard Register (asi/333647) has announced total Q3 sales of $219.4 million, a year-over-year increase of 10%. The company did not break out its ad specialty revenue, but reported its Business Solutions unit sales reached $153.7 million for the quarter, an increase of 12.6%. The company said that “growth in promotional products sales contributed” to that increase.
“We are continuing to see the results from our efforts to increase sales of our entire portfolio of products and solutions, improve margins through consolidation of operations and contain all other costs,” said Joseph Morgan Jr., president of Standard Register. “The focused, purposeful investments we have made in growth areas are also producing results, including penetration of our customer base for promotional products.”
In a conference call with investors, according to the Dayton Business Journal, Morgan acknowledged the integration of WorkflowOne – which Standard Register acquired last year – was requiring more cash than originally expected. Still, the company is expected to achieve savings of $24 million in the first three quarters of 2014 from the restructuring and integration of WorkflowOne and realize $40 million in annual savings once the integration is complete at the end of 2015.
For the first nine months of this year, Standard Register’s total sales have increased by 40.9% to $673.2 million. Business Solutions revenue has jumped 50.8% to $478.3 million for 2014. Standard Register’s other major business unit – its healthcare segment – grew 4.5% year-over-year in Q3. Gross margin as a percentage of revenue improved to 28.3% in the third quarter from 26.9% the prior year, an improvement the company attributed to its “integration efforts and the reduction of 19 facilities that have been exited since the acquisition of WorkflowOne .”
Counselor ranks Standard Register as the 12th largest distributor in the industry, after the firm reported 2013 North American ad specialty sales of $112.1 million.