Outlook Group Reports Sales Increase, Bottom Line Break Even in Q3
Press release from the issuing company
NEENAH, Wis.--March 20, 2006-- Outlook Group Corp. today reported sales and earnings for the third quarter ended February 25, 2006.
Third Quarter Fiscal 2006 Highlights
* Net sales for the third quarter of fiscal 2006 increased 7.4% to $18,411,000, from sales of $17,147,000 for the same period in the prior year.
* Net earnings were $4,000 or $0.00 per diluted share for the third quarter of fiscal 2006, compared to earnings of $570,000 or $0.17 per diluted share for the third quarter of fiscal 2005.
* Net earnings for the third quarter of fiscal 2005 included an after-tax business interruption insurance recovery of $108,000, related to a fire in a company manufacturing plant in a prior period.
First Nine Months Fiscal 2006 Highlights
* Net sales for the first nine months of fiscal 2006 were $63,426,000, a 17.8% increase from sales of $53,828,000 for the same period in the prior year.
* Net earnings for the first nine months of fiscal 2006 were $1,860,000 or $0.54 per diluted share, compared to earnings of $2,551,000 or $0.74 per diluted share for the comparable period in fiscal 2005.
* The net earnings for the first nine months of fiscal 2005 included after-tax recovery of a prior period bad debt of $728,000 or $0.21 per diluted share.
"Although we are pleased with the increase in sales, the breakeven bottom line in the third quarter did not meet our expectations. This was due to a number of factors, including the installation of new equipment, the project mix and a shorter holiday selling season," said Joseph J. Baksha, president and chief executive officer of Outlook Group.
"During the quarter, we incurred start-up costs and manufacturing disruptions related to the installation of two new pieces of custom collating equipment. The largest collator, a one-of-a-kind intelligent collator, was installed as part of a recently announced long-term contract. In addition, the project mix in the third quarter trended toward lower-margin projects. Shipments of a number of higher-margin orders were delayed into the fourth quarter due to the timing of the holiday calendar, which had significantly fewer selling days than a typical holiday season," said Baksha.
"The third quarter also included substantial expenses relating to the acquisition transaction we announced today, in which Outlook Group has signed an agreement to be acquired by Vista Group Holdings, LLC, a financial investor," said Baksha. Additional information on the transaction is included in a separate news release issued today, March 20, 2006.
"The third quarter is historically our weakest period. We are encouraged by a very strong start in March and are optimistic that we will achieve improved performance for the fourth quarter and a solid fiscal 2006 overall," he added.
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