Outlook Group Earnings Increase in Q2, Fourth Consecutive Improvement
Press release from the issuing company
NEENAH, Wis.--Dec. 23, 2002--Outlook Group Corp. today reported net earnings of $484,000 or $0.14 per diluted share for the second quarter of fiscal 2003 ended November 30, 2002, a 30.1% increase from earnings of $372,000 or $0.11 per diluted share, excluding after-tax special facility relocation charges, for the second quarter of fiscal 2002. Including after-tax special facility relocation charges of $122,000 or $0.04 per diluted share, net earnings for the second quarter of fiscal 2002 were $250,000 or $0.07 per diluted share. Net sales for the second quarter of fiscal 2003 were $17,320,000, a 4.2% decrease from sales of $18,077,000 for the same period in the prior year.
For the first half of fiscal 2003, net sales were $34,318,000, compared to sales of $35,700,000 for the first half of the prior year. Net earnings for the first half of fiscal 2003 were $1,142,000 or $0.34 per diluted share, compared to earnings of $661,000 or $0.19 per diluted share, excluding special facility relocation and legal settlement charges, for the first half of fiscal 2002. Including the after-tax special charges of $895,000 or $0.26 per diluted share, the company reported a net loss of $234,000 or $0.07 per diluted share for the first half of fiscal 2002.
"We are continuing to realize the benefits of consolidating our operations at our two facilities in Neenah, Wisconsin, and our ongoing efforts to increase productivity and reduce operating costs. Profit margins continued to improve in the second quarter, enabling us to report our fourth consecutive quarter of increased earnings," said Joseph J. Baksha, president and chief operating officer of Outlook Group.
Baksha said the slightly lower sales reflected the continued soft market for promotional projects, especially direct mail, as well as competitive pricing throughout the industry. "In spite of this challenging industry environment, we added several new customers in the second quarter as part of our long-term strategy to grow the business by expanding our customer base," he said.
"We enter the second half of the year with a strong financial position and improved earnings. We believe our strength and stability is a competitive advantage in a very difficult market for our industry," Baksha added.
Baksha noted that Outlook Group recently announced the declaration of its second quarterly cash dividend payment of $0.05 per share. The company initiated quarterly cash dividend payments in October 2002.
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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