Outlook Group Reports Q4: Results Improve in Last Half of Fiscal Year
Friday, July 19, 2002
NEENAH, Wis.--July 18, 2002--Outlook Group Corp. today reported net sales of $15,694,000 for the fourth quarter ended May 31, 2002, a 13.2% increase from sales of $13,869,000 for the same period in the prior year. Excluding the recovery of settlement-related costs for a lawsuit related to a former customer, earnings for the fourth quarter of fiscal 2002 were $428,000 or $0.13 per diluted share, compared to earnings of $58,000 or $0.02 per diluted share for the comparable prior period. Including the after-tax settlement recovery of $83,000 or $0.02 per share, the company reported net earnings of $511,000 or $0.15 per diluted share for the fourth quarter of fiscal 2002. For fiscal 2002, Outlook Group reported net sales of $67,207,000, compared to sales of $70,660,000 in fiscal 2001. Excluding facility relocation and legal settlement expenses, earnings for fiscal 2002 were $1,213,000 or $0.35 per diluted share, compared to earnings of $1,296,000 or $0.34 per share in fiscal 2001. Including the after-tax facility and legal settlement expenses of $550,000 or $0.16 per share, Outlook Group reported net earnings of $663,000 or $0.19 per diluted share for fiscal 2002. "Our focus on operational and financial stability enabled Outlook Group to weather a very difficult year for the industry. We believe this is a noteworthy achievement in view of overall industry results, with many companies reporting double-digit decreases in sales and earnings for the fiscal year period," said Joseph J. Baksha, president and chief operating officer of Outlook Group. "We believe that our strategy to concentrate on the basic elements of consolidating operations, reducing expenses, increasing operating efficiency and generating profitable new sales is working, as evidenced by the turnaround in the last half of the fiscal year. Excluding recoveries of legal settlement expenses of $0.09 per share, net earnings for the last two quarters of fiscal 2002 were $506,000 or $0.15 per diluted share, compared to a loss of $572,000 or $0.14 per diluted share for the same period in fiscal 2001," said Baksha. "We are working to differentiate Outlook Group in the marketplace. In fiscal 2002, we optimized existing equipment, expanded our capabilities to meet the requirements of specific longer-term projects and strengthened our direct mail capabilities. These steps are designed to add value to client relationships and enhance our position as a single-source supplier for large consumer products companies," Baksha said. "Our solid financial position is also an asset. We paid off all of our long-term debt during fiscal 2002 and continued to generate strong cash flow. We believe that we are solidly positioned to leverage our strengths and capitalize on potential growth opportunities in the years ahead," he added. Baksha said the recovery of the lawsuit settlement costs were from a third party and an insurance company relating to a previously disclosed customer lawsuit. "We have now recovered substantially all of the legal fees and settlement costs related to that lawsuit," he said. During fiscal 2002, Outlook Group repurchased a total of 192,500 shares of its common stock. Outlook Group Corp. is a printing, packaging and direct marketing company offering a variety of related services to clients in markets including contract packaging, collateral information management and distribution, direct marketing components and services, packaging components and materials, and specialty print related services. The company leverages its core competencies by cross-selling services to provide a single-source solution for its clients.