It was the first time Morgan had publicly offered information on Standard Register headquarters plans in the wake of its August acquisition of a one-time local rival, WorkflowOne. Morgan said employees have been informed of those plans.
The company also said Monday it is in compliance with New York Stock Exchange listing standards.
Last week, Standard Register filed documents with the government outlining a nearly $30 million restructuring plan and saying it seeks approval to increase the number of its corporate directors.
In late September, the company’s board approved a “new strategic restructuring program” tied to its recent acquisition of WorkflowOne.
Total costs of the restructuring, expected to continue through the end of 2015, are expected to be some $29.8 million, Standard Register said in a filing with the U.S. Securities and Exchange Commission last week.
That includes $9.4 million for employee severance; contract termination costs of $7 million, from exiting leased facilities; and other costs of $13.4 million to consolidate facilities and move equipment and inventory, costs to consolidate its headquarters, and costs with the write-off of inventory, the business said.
“The company expects to achieve $40 million in annual savings when the integration of the two companies is complete,” Standard Register said in an SEC filing.
Morgan on Monday said he could not go beyond that filing. He said the company is working with business consultant AlixParters on its restructuring, although it does not yet necessarily have specific employee-number targets.
“There will be facilities that will be rationalized,” Morgan said.
Immediately after the Workflow One acquisition, the company had some 920 Dayton employees and about 4,000 employees total.
The NYSE warned the company in April and May 2012 that its shares were not in compliance with the exchange’s listing standards. At the time, its shares (NYSE: SR) were trading at about $1.14. The NYSE’s minimum bid listing standard is $1 per share for 30 consecutive trading days.
In May 2013, the documents services company completed a reverse stock split, decreasing the number of the company’s outstanding shares. The 1-for-5 stock split meant that every five shares of Standard Register’s common and class A stock converted to one share.
The split increased the value of individual shares. On Monday afternoon, shares of SR were trading at about $10.28, down six cents.
Standard Register said it will be subject to a 12-month “follow-up period” to ensure that it remains in compliance with NYSE standards.
“We are energized and confident that we are on the right path for long-term sustainable growth,” Morgan said in a statement.
Also last week, the company filed a notice with the SEC for a special shareholders meeting, set for 11 a.m. Oct. 24. The meeting will allow shareholders to consider the issuance of up to more than 2.6 million shares of the company’s common stock and the increase of the number of directors from seven to nine.
After the WorkflowOne acquisition, the company is required to appoint two directors designated by minority shareholders, Standard Register said in its SEC filing.
As part of the acquisition, Standard Register acquired WorkflowOne’s debt and issued to that company’s lenders warrants to acquire up to 2,645,952 shares of Standard Register’s common stock, the company said.
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