NEENAH, Wis.--Sept. 25, 2003-- Outlook Group Corp. today reported net sales of $17,061,000 for the first quarter ended August 30, 2003, an increase from sales of $16,998,000 for the same period in the prior year. The company reported a loss of $207,000 or $(0.06) per diluted share for the first quarter of fiscal 2004, compared to earnings of $422,000 or $0.13 per diluted share for the first quarter of fiscal 2003. Before the effect of a change in accounting principles, earnings for the first quarter of fiscal 2003 were $658,000 or $0.20 per diluted share.
"Our first quarter results are on track with our plan, as we completed the majority of the start-up phases for three new long-term contracts. These new contracts are expected to provide over $14 million in sales in fiscal 2004, barring any changes in customer orders or other developments," said Joseph J. Baksha, president and chief operating officer of Outlook Group. "Although the start-up and other expenses have reduced our results for the past three quarters, we believe these investments provide the capabilities we need to serve our major new customers and to pursue additional long-term growth opportunities."
Baksha said the printing industry continued to suffer from overcapacity and severe pricing pressures. "We believe the continuation of this challenging industry environment supports our strategy to differentiate Outlook Group in the market by focusing on long-term contracts for complete supply chain management services. This strategy combines our printing capabilities with packaging, mailing list development and direct mail services in an integrated package that provides a complete turnkey solution for our customers," he said.
"Instead of investing in an outside acquisition, we have elected to invest in equipment and training to build our business by providing customized supply chain managed solutions for selected clients. With the great majority of the start-up expenses for the new contracts now behind us, we believe we are well positioned for improved performance and to benefit from these investments in the future," said Baksha.
WhatTheyThink is the global printing industry's go-to information source with both print and digital offerings, including WhatTheyThink.com, WhatTheyThink Email Newsletters, and the WhatTheyThink magazine. Our mission is to inform, educate, and inspire the industry. We provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today's printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.