Outlook Group Reports Increased First Quarter Earnings
Press release from the issuing company
NEENAH, Wis.--Sept. 23, 2002--Outlook Group Corp. today reported net earnings of $658,000 or $0.20 per diluted share for the first quarter of fiscal 2003 (ended August 31, 2002), more than double the earnings of $288,000 or $0.08 per diluted share for the first quarter of the prior year, excluding one-time charges in the prior fiscal year of $772,000 or $0.22 per diluted share for facility relocation and legal settlement expenses. Including the one-time charges, the company reported a net loss of $484,000 or $(0.14) per diluted share for the first quarter of fiscal 2002 ended (September 1, 2001). Net sales for the first quarter of fiscal 2003 were $16,998,000, down 4% from sales of $17,623,000 for the first quarter of fiscal 2002.
"This was our third consecutive quarter of significant earnings improvement. The fact that we were able to generate a significant increase in earnings on a slight decrease in sales confirms that the actions we have taken to consolidate operations and reduce expenses have had a positive impact on profit margins," said Joseph J. Baksha, president and chief operating officer of Outlook Group.
"We believe that we have been outperforming many of our competitors because we have taken the necessary steps to reduce the size of our company in response to the overall downturn in our markets," said Baksha.
Baksha noted that first quarter sales were affected by reduced selling prices and increased competition in the industry, as well as a number of projects that were deferred by customers from the first quarter to later in the company's fiscal year.
"This continues to be a challenging period for the printing industry. Our strategy in weathering the storm has been successful because we are concentrating our efforts on increasing sales while at the same time reducing expenses and increasing operating efficiencies throughout our operations," he added.
In June 2002, Outlook Group acquired the assets and operations of Paragon Direct of Milwaukee for $1.4 million. Paragon Direct provides computer-based information management services for clients in the direct marketing industry. "The addition of Paragon Direct's services further enhances our direct marketing capabilities. We are pursuing opportunities to cross-sell these services to both existing and new clients," said Baksha.
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.
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