Outlook Group Reports Q4 2004 Results: Net Sales Up 36%
Press release from the issuing company
NEENAH, Wis.--July 20, 2004-- Outlook Group Corp. today reported net sales of $19,158,000 for the fourth quarter ended May 31, 2004, a 35.9% increase from net sales of $14,100,000 for the same period in the prior year. Net earnings were $519,000 or $0.15 per diluted share for the fourth quarter of fiscal 2004, compared to a net loss of $835,000 or $(0.25) per diluted share for the fourth quarter of the prior year.
For fiscal 2004, Outlook Group reported net sales of $72,797,000, a 19.3% increase from sales of $61,014,000 for the prior year. Net earnings were $1,074,000 or $0.32 per diluted share for fiscal 2004, compared to a net loss of $567,000 or $(0.17) per diluted share in the prior year. The results for fiscal 2003 include a cumulative effect after-tax charge of $236,000 or $(0.07) per diluted share related to the impairment of goodwill as a result of the adoption of SFAS 142.
"In fiscal 2004, we began to realize the benefits of our strategy to differentiate Outlook Group in the marketplace," said Joseph J. Baksha, president and chief operating officer of Outlook Group. "Our improved financial performance in fiscal 2004 is due primarily to our focus on expanding our continuing relationships by offering a complete portfolio of supply chain managed solutions. Our results for the fourth quarter of fiscal 2003 included expenses for equipment and training for a new client, which positioned us for the significant improvement in fiscal 2004. As a result of these strategies, continuing contracts accounted for approximately 70% of our total sales in fiscal 2004, up from 40% the previous year and a minimal amount just a few years before that."
Baksha said the increased fourth quarter earnings reflected the higher sales and productivity improvements that were implemented during the year. "As a measure of our improved productivity, our level of sales per employee in fiscal 2004 significantly outperformed the industry average," he added.
"Outlook Group continues to be financially strong. We ended fiscal 2004 with a debt to total capitalization ratio of 5.7%. In addition to maintaining a low level of debt, we paid cash dividends totaling $0.20 per share for the year and continued to invest in new equipment, training and other operational improvements," said Richard C. Fischer, chairman and chief executive officer of Outlook Group.
Baksha said Outlook Group is continuing to build momentum, with recent announcements of extended contracts. In May, the company announced extensions of existing agreements with Compact Industries, Inc. and Unisource, and in June announced the extension of its agreement with Service Graphics, Inc.
"With our strong balance sheet, successful supply chain management strategy and solid base of long-term clients, we believe Outlook Group is positioned for continued growth," added Baksha.
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