Outlook Group Reports Lower Third Quarter Results; Year-To-Date Performance Still Up Over Prior Year.Business Editors NEENAH, Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--March 22, 2001 Outlook Group Corp. (NASDAQ/NMS: OUTL) today reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $14,141,000 for the third quarter ended March 3, 2001, compared to sales of $17,784,000 for the same period in the prior year. The company reported a net loss of $630,000 or ($0.16) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the third quarter of fiscal 2001, compared to earnings of $303,000 or $0.07 per diluted share for the comparable prior period. For the first nine months of fiscal 2001, net sales were $55,528,000, a 7.2% increase from sales of $51,786,000 for the first nine months of fiscal 2000. Net earnings were $1,238,000 or $0.32 per diluted share for the first nine months of fiscal 2001, compared to earnings of $1,375,000 or $0.31 per diluted share for the same period in the prior year. "Along with many other companies in our industry, Outlook Group has been affected by the general slowdown in the economy, beginning with the soft December for retailers nationwide. In addition, many clients moved their promotional direct mail projects into November to avoid the postal rate increase that became effective in early January. This boosted our second quarter performance, but created an imbalance of orders Imbalance of Orders A situation when too many orders of a particular type - either buy, sell or limit - for listed securities and not enough of the other, matching orders are received by an exchange. Also referred to as "order imbalance". in the first two months of the third quarter. While February was profitable for us, it was not enough to offset the weak December and January results," said Joseph J. Baksha, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Outlook Group. "In response to these industry and economic conditions, we have moved aggressively to reduce operating costs operating costs npl → gastos mpl operacionales . We consolidated the assets of our Troy, Ohio Troy is a city in Miami County, Ohio, United States. The population was 21,999 at the 2000 census. It is the county seat of Miami CountyGR6 Troy was one of the cities impacted by severe flooding in the Great Dayton Flood of 1913. , label facility into our Neenah location in late January and are taking other actions to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. at all of our locations," Baksha said. "We anticipate that the steps we are taking to reduce operating costs will enable us to return to profitability in the fourth quarter of the fiscal year." "Although we are disappointed with this slowdown in our performance, our results are better than many other companies in the industry. For example, the general softness in the industry resulted in the closing of several paper mills and large printing operations around the country. We believe that with our strong financial position and operating flexibility, Outlook will be able to weather the current economic situation and return to the steady increases in profitability that we have achieved in the past," said Baksha. He noted that operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was positive for the third quarter and first nine months of the fiscal year, in spite of the third quarter loss. In addition, the company continued to reduce its debt, ending the quarter with $2,800,000 in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The ratio of debt-to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. was reduced to 7.7% at the end of the period. Outlook Group Corp. is a printing, packaging and direct marketing company offering a variety of related services to clients in markets including contract packaging, collateral information management and distribution, direct marketing components and services, packaging components and materials, and specialty print related services. The company leverages its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
The discussions of potential future occurrences and operations in this press release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " intended to qualify for the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability established by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those anticipated. Outlook's periodic filings with the Securities and Exchange Commission discuss a number of other factors which may affect Outlook's future operations, including: possible changes in customer relationships; changes in project mix and timing; the effects of industry competition, overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. and acquisition activity; general market conditions; availability of cash resources for share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. ; and the possible need for future capital investments or equipment enhancements. Readers are urged to consider these factors carefully in evaluating the forward-looking statements.
OUTLOOK GROUP CORP.
Condensed Consolidated Statements of Operations (Unaudited)
-----------------------------------------------------------
(in thousands, except share and per share amounts)
Three-Month Period Ended Nine-Month Period Ended
------------------------ -----------------------
Mar. 3 Feb. 26 Mar. 3, Feb. 26,
2001 2000 2001 2000
---- ---- ---- ----
Net sales $ 14,141 $ 17,784 $ 55,528 $ 51,786
Cost of goods sold 12,439 14,299 44,093 40,968
---------- ----------- ---------- -----------
Gross profit 1,702 3,485 11,435 10,818
Selling, general
and administrative
expenses 2,684 2,916 9,267 8,533
---------- ----------- ---------- -----------
Operating profit (982) 569 2,168 2,285
Other income (expense):
Interest expense (63) (189) (334) (419)
Interest and other
income 92 113 259 391
---------- ----------- ---------- -----------
Earnings from operations
before income taxes (953) 493 2,093 2,257
Income tax expense (323) 190 855 882
---------- ----------- ---------- -----------
Net earnings $ (630) $ 303 $ 1,238 $ 1,375
========== =========== ========== ===========
Net earnings per share:
Basic $ (0.16) $ 0.07 $ 0.32 $ 0.31
Diluted $ (0.16) $ 0.07 $ 0.32 $ 0.31
Weighted average number
of shares outstanding:
Basic 3,843,368 4,172,825 3,868,169 4,422,127
========== =========== ========== ===========
Diluted 3,894,925 4,190,623 3,928,689 4,431,748
========== =========== ========== ===========
Selected Consolidated Balance Sheet Data (Unaudited)
( Dollars in thousands)
March 3, 2001 February 26, 2000
------------- -----------------
Total current assets $ 18,630 $ 23,886
Total current liabilities $ 4,859 $ 10,433
Total long term debt
(including current
maturities) $ 2,800 $ 6,636
Shareholders' equity and
redeemable equity $ 33,707 $ 33,409
Current ratio 3.83 2.29
Long-term debt-to total
capitalization 7.7% 16.6%
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