When it comes to managing communication, The Standard Register Company (SRC) helps businesses maintain a certain set of standards. SRC primarily provides print services (both digital and traditional) for healthcare, manufacturing, financial services, and other commercial businesses, helping manage their communications so that they align with corporate standards and priorities. Formerly a provider of traditional document services, the company is now focused on providing market-driven communication services that help companies in specific industries build and enhance their brands and reputations, reduce risk, and operate more efficiently. The 100-year-old firm was founded by John Q. Sherman in 1912.
In 2011 SRC launched a strategy that eschewed document services for more general business communication consulting that targets four specific markets: healthcare, commercial, financial services, and industrial. SRC believes these markets offer the best opportunity for growth and for it to leverage its years of expertise in document management. The adoption of digital technologies, slack demand for its traditional products, and pricing pressures as a result of the down economy were factors in SRC's shift in its business model. Specifically, the company's sales had declined for the past four years.
Healthcare, accounting for about 37% of SRC's total sales, is the company's largest business segment. Currently, SRC counts nearly 65% of US hospitals as customers. Healthcare offerings include patient wristbands, photos, data, and information software, as well as patient education materials, billing statements, explanation of benefits, and healthcare plan enrollment kits.
Total revenue and net income declined during fiscal year 2011. At its healthcare segment, the company was negatively affected by decreased sales of administrative and clinical forms due to adoption of digital technologies and lower-than-expected rates of expansion in label and wristband products. In addition, net income declined due to pension loss amortization and settlement, as well as charges related to restructuring, taxes, and post-retirement termination benefits. The company is continuing cost-cutting efforts including restructuring actions; in 2011 SRC announced plans to eliminate up to 15% of its workforce.
The company is investing in new technologies to offset declines from its print business. In 2011 SRC launched a new retail website, SR-Promo.com, to sell its suite of new promotional products (such as industry-specific branded apparel and work clothes, awards, computer accessories, clocks and watches, and pens and notebooks). Also in 2011 the company acquired Dialog Medical, a provider of services that manage the patient informed consent process, for about $5 million. It made the deal to further strengthen its healthcare business.
A trust owned by the family of the late founder owns more than 50% of the company's shares and controls about 38% of the voting power.