Outlook Group Reports Increased Sales and Earnings for Fiscal 2005
Press release from the issuing company
NEENAH, Wis.--July 21, 2005-- Outlook Group Corp. today reported net sales of $21,761,000 for the fourth quarter of fiscal 2005, a 13.6% increase from sales of $19,158,000 for the same period in the prior fiscal year. Net earnings increased 30.3% to $676,000 or $0.20 per diluted share for the fourth quarter of fiscal 2005, from earnings of $519,000 or $0.15 per diluted share for the comparable prior period.
For fiscal 2005, net sales were $75,589,000, a 3.8% increase from sales of $72,797,000 in fiscal 2004. Net earnings were $3,227,000 or $0.94 per diluted share for fiscal 2005, compared to earnings of $1,074,000 or $0.32 per diluted share for the prior year. The fiscal 2005 earnings include a previously disclosed after-tax bad-debt recovery of $722,000 or $0.21 per diluted share, related to a customer note that was written off in prior years.
"Our strong performance in fiscal 2005 is a direct result of our continuing strategy to differentiate Outlook Group in the marketplace by offering complete supply chain managed solutions. This strategy focuses on expanding our long-term relationships to improve our performance and add stability to our operations. Continuing contractual relationships now account for approximately 80% of our sales, highlighting our execution of this strategy," said Joseph J. Baksha, president and chief executive officer of Outlook Group.
"With recent industry statistics showing that the overall market for commercial printing remains relatively flat, we believe our increased sales indicate we are gaining market share. In fiscal 2005, we signed new contracts and contract extensions with a value of approximately $35-40 million over the lives of the contracts, many of which are for two or three years. In addition, since the start of fiscal 2006, we have signed new contracts with a value of approximately $22 million," said Baksha. "The improvement in our bottom line reflects the benefits of the long-term agreements as well as our continued focus on operating efficiency using Six Sigma methodology."
Baksha said capital expenditures of $7,900,000 for the year were invested in equipment needed for the company's customer contracts and for productivity improvements. In addition, the company acquired a new digital press. "We increased our quarterly cash dividend payment by 20% during the year to $0.06 per share and long-term debt continued to be under 15% of total capitalization. We are pleased with our performance in fiscal 2005 and look forward to continuing our efforts to achieve additional progress in the years ahead," he said.
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