NEENAH, Wis.--March 17, 2005-- Outlook Group Corp. today reported increased earnings for the third quarter ended February 26, 2005.
Net sales for the third quarter of fiscal 2005 were $17,147,000, compared to net sales of $17,236,000 for the third quarter of fiscal 2004. Net earnings were $570,000 or $0.17 per diluted share for the third quarter of fiscal 2005, a 175% increase from net earnings of $207,000 or $0.06 per diluted share for the same period in the prior year.
For the first three quarters of fiscal 2005, net sales were $54,092,000, compared to sales of $53,639,000 for the same period in the prior year. Net earnings were $2,551,000 or $0.74 per diluted share for the first three quarters of fiscal 2005, an increase from earnings of $555,000 or $0.16 per diluted share for the comparable prior period. The net earnings for the first nine months of fiscal 2005 include a previously disclosed recovery of bad debt of $747,000 (after-tax) related to a note that was written off in prior years.
"Direct marketing activity continued to be strong in the third quarter and we also benefited from a number of profitable projects in our flexible packaging area. In addition, net earnings for the third quarter of fiscal 2005 include a business interruption insurance recovery of $108,000 (after-tax) related to a fire in our plant in the first quarter," said Joseph J. Baksha, president and chief operating officer of Outlook Group.
"The industry is continuing to improve, although competition remains fierce and there is still some overcapacity. We also continue to be challenged by higher costs of raw materials. Our ability to significantly improve our net earnings in this environment is the result of our strategy to offer complete supply chain management services, rather than printing alone. Our top line has remained steady due to our large number of long-term contracts and continuing growth, while our bottom line is benefiting in part from the repeat business and our use of Six Sigma methodology to improve profitability," said Baksha. "We believe we have a successful formula and are continuing to pursue additional long-term business."
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