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Outlook Graphics--Wisconsin 7/27/92 [OA 7577] [1]
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Outlook Graphics--Wisconsin 7/27/92 [OA 7577] [1]
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Speech Backup Chronological Files
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administrative marker by the George Bush Presidential
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Record Group/Collection:
George H.W. Bush Presidential Records
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Speechwriting, White House Office of
Series:
Speech File Backup Files
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Chron File, 1989-1993
OA/ID Number:
13823
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13823-005
Folder Title:
Outlook Graphics--Wisconsin 7/27/92 [OA 7577] [1]
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G
26
22
6
6
JUL-24-'92
FRI
10:02
Mailing Address:
Tommy G. Thorapson
Post Office Box 7868
Governor
Madison, WI 53707-7868
James R. Klaumer
Secretary
State of Wisconsin
Department of Administration
101 South Webster Street Madison. Wisconsin
July 22, 1992
TO:
Stephanie Smith
FROM: Rick Berg
RE:
Issues Surrounding July 27 Presidential visit
A variety of issues have emerged - and will continue to emerge -
regarding the anticipated visit by President Bush on July 27 to
the Fox River Valley. I thought they should be passed along to
you.
1) The President - and the Governor - should use the opportunity
to praise business, education, labor and government for
working together to create hope and opportunity for young
people. This initiative should be showcased as an
example of what can be accomplished when differences are set
aside on behalf of children and parallels initiative that
the President is pushing at the federal level through his
Departments of Labor and Education.
2) I would suggest that the President avoid discussion of school
choice and instead focus on this effort as a positive step
toward reforming public education and bringing business into
a positive and meaningful relationship with education.
'Business is no longer just complaining, but is getting
involved' sort of thing.
3) This is a great opportunity for the President to be visionary
and talk about job security, preserving the American standard
of living, giving young people hope for the future, need to
upgrade the skills of new workers AND the existing workforce,
and ensuring that America will keep its competitive edge in
a very competitive global economy.
4) President should praise Governor Thompson for putting these
reforms and initiatives into motion and for keeping them
moving ahead. Wisconsin should be cited for leading the
nation in this area and for providing a model of success that
can be transported across America.
5) The President has designated Wisconsin as one of six states
leading in this area and, as a result of this designation,
Wisconsin has recently received a $200,000 award from the
U.S. Department of Labor (which has not yet been publicly
announced) to further these efforts. The President can say
he is counting on Governor Thompson and Wisconsin to
continue this leadership position - as we have in so many
other areas.
These are a few of the topics which have arisen. I will keep you
informed as others develop.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:05AM ;
4562983-
2024566218:#10
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft One
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
JULY 27, 1992
2:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
It's a great pleasure to be here. For any sports fan, it's
a thrill to be at the birthplace of America's sports trading
cards. And for me it's a little humbling, too. I don't dare ask
you how many hundreds of George Bush cards you have to trade to
get even one Michael Jordan.
I've come here to talk a little bit about our future
...
about the kind of nation we want for ourselves and our
children. The world has undergone remarkable changes the past
few years. Today our kids worry about the usual things ...
about
school, friends, about such earth-shattering questions as
...
where can I get an olympic "Dream Team" card. But I can tell you
one thing they don't worry about anymore -- one thing they might
have worried about just a short while ago ...
the specter of
nuclear war.
Today, America is safer than ever before. Safer than we
were a decade ago. Safer than we were a year ago. Safer than we
were just a few weeks ago ... when I sat down with Boris Yeltsin
and agreed to eliminate some of the most dangerous nuclear
weapons on earth.
SENT BY:Xercx Telecopier 7020 ; 7-27-92 ; 9:05AM ;
4562983-
2024566218:#11
2
Now that we have changed the world it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make America's families more like the Waltons
and a little bit less like the Simpsons. And how to take back
our streets from the crack dealers and the criminals.
This election year, we are told, is about how we can change
to seet these challenges. But this election is not just about
change, because change has a flip side. It's called trust. When
you get down to it, this election will be like every other. When
you go into that voting booth and pull the curtain behind you:
"trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or asking how we should stand up to a
bully halfway around the world. The American people need to know
that the man who answers the phone has the experience, the
seasoning, to do the right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is even more
than that. I'm a Texan -- raised my children there, built my
business there. I believe our country's heartbeat can be felt in
places like Neenah, Wisconsin ... not Washington, DC. And so I
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:06AM ;
4562883-
20245662181#12
3
stake my claim in a simple philosophy: to lead a great nation you
must first trust the people you lead.
If you look at almost every important issue we face
...
you
see a clear choice
a choice between those who put their faith
in average Americans
and those who put their faith in
government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is ...
"who
will care for the kids while we're working?" A few years ago,
Washington wanted to help, but their idea was to rock the cradle
with the heavy hand of the bureaucracy. All the plans boiled
down to creating some new kind of government apparatus
like a
-
Pentagon for child care.
I fought for a different approach
...
and won. Our landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home or church.
When it comes to raising children
I say: why not trust
the people?
What about our education system? To renew America we must
renew our schools
we all know this, but money alone won't do
it. We already spend more money per student than almost any
other country; and our kids still rank near the bottom in crucial
subjects like math and science. Again: a lot of ideas floating
around, most of them to pump more tax money into the same system.
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:06AM ;
4562983-
2024566218:#13
4
I say try something different. Open up schools to
competition, and trust you to decide whether you want your kids
to learn in a public school, a private school or a religious
school.
When it comes to education again I say: "why not trust
the people."
What about government regulation? Sure, some of it is
necessary, even essential. But if you believe that there is a
government solution to every problem, an alphabet agency for
every issue, than you look at regulation not as a necessary evil,
but as a necessary way to reign in people's evil tendencies. The
results can be crazy, as this story proves.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
workers being infected from putting someone else's hard hat on
their head. The alarms went off. The bureaucratic blood boiled.
One small fact was overlooked. There wasn't a single documented
case, anywhere in the United States, of anyone getting infected
from wearing someone else's hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $13 million a year. Measurable benefit:
slightly less than zero.
SENT BY:Xerex Telecopier 7020 ; 7-27-92 ; 9:07AM ;
4562983->
2024566218:#14
5
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive, without hard
hat regulation.
But can you imagine what might have happened, if these
enterprising regulators had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?//
Some believe the solution to our problems is more government
regulation. I take a different view. I've put a moratorium on
new federal regulations, to give businesses like this one room to
breathe, and grow and create jobs.
On child care, education, regulation, it's a matter of trust
trusting Americans to make their own choices.
-
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
You'll find a good example of what government can do right
here at Outlook. Last April, I challenged the nation's governors
to join me in a new national job training effort for young
people. I introduced a program called "The Youth Apprenticeship
Act" in Congress. The program is geared particularly to
teenagers
who want to work
want to learn a skill
but
may be tempted to drop out of school. True to form, Gov. Tommy
Thompson is already reaching out to these young people along with
concerned businessmen and community leaders. The youth
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:07AM ;
4562983-
2024566218:#15
6
apprenticeship program will encourage them to complete a sound
high-school education, while getting on-the-job training at
companies like Outlook. This program connects education with
the real world of work. Government can help make that connection
-- and I salute Gov. Thompson for helping me create a workforce
that's up and ready for the challenges of the next century./
So I believe we can give Americans the tools ... and then
it's a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
of trust is not just a nuisance; it can be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
-
Santiago.
Can the U.S. compete ... now that everyone is playing our
game? I know we can. Despite all the criticism you've heard
lately, keep in mind a few facts. We are the largest economy in
the world. Inflation -- the Jesse James who robs the middle
class of dreams -- has been put safely behind bars. The last
time interest rates were this low, the Brady Bunch weren't even
on television. Despite all the stories about our problems, our
workers are still the most productive in the world -- more
productive than the English, the Germans, the Japanese. 11
But while our economy is growing, it must grow faster. The
question is: How? The other side suggests a simple two-part
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:08AM ;
4562983-
2024566218:#16
7
solution. First, raise government spending! And then: raise
taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, you already work 126 days just to pay your taxes --
before you earn a single dime to spend on your family. Does
anyone want to go for 127?//
All this talk of spending and taxes causes me to wonder
...
if the other side is a little hard of hearing. Abraham Lincoln
spoke of government "of the people, by the people, for the
people." But they seem to keep saying
...
of the government, by
the government and for the government.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to get this economy
-
moving faster, right now. The plan included tax initiatives to
encourage businesses to hire new workers and breaks for young
families who want to buy a first home. Half a million jobs would
have been created, if Congress had acted right away.
But they didn't. Instead Congress sent back what you might
call an "anti-trust" program. New government spending, and new
taxes.
So I sent their plan back. I'm still waiting ... almost 200
days later. This economic recovery plan is being held hostage
and the ransom note reads -- "wait till after the election."
Today I say to the Congress and the Senate especially, release
the economy, approve this jobs program, and put America back to
work ... now.//
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:08AM ;
4562983-
2024566218:#17
8
You
see
it all comes down to a question of trust. I
trust you to spend and save your money more wisely than any
budget planner in Washington.
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first." But if you
look real close
the people they put first are all on a
government payroll.
A leader of a free people must understand that government
can not only help, it can hinder. He must have the confidence to
say: "I trust you." I trust the people.//
And ultimately you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be people whose only
enthusiasm is for government, who measure progress by programs
created and special interests satisfied.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice, It's
going to be the small businesswoman who takes a risk on a new
SENT BY:Xerox Telecopier 7020 ; 7-27-92 ; 9:09AM ;
4562983-
2024566218:#18
9
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you and God bless the United States
of America.
-
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft Two
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
JULY 27, 1992
2:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
It's a great pleasure to be here. For any sports fan, it's
a thrill to be with the producers of America's sports trading
cards. ((And for me it's a little humbling. I don't dare ask
you how many hundreds of George Bush cards you have to trade to
get even one Michael Jordan.))
I've come here to talk a little bit about our future
...
about the kind of nation we want for ourselves
...
and our
over
children. The world has undergone remarkable changes the past
few years. Today our kids worry about the usual things
...
about
school, friends, about such earth-shattering questions. as
...
where can I get an Olympic "Dream Team" card. But I can tell you
one thing they don't worry about any more -- one thing they might
have worried about just a short while ago
...
the spectre of
nuclear war.
Today
...
America is safer than ever before. Safer than we
were a decade ago. Safer than we were a year ago. Safer than we
were just a few weeks ago ... when I sat down with Boris Yeltsin
and agreed to eliminate some of the most dangerous nuclear
weapons on earth.
2
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make America's families more like the Waltons,
and less like the Simpsons. And how to take back our streets
from the crack dealers and the criminals.
This election year, we are told, is about how we can change
to meet these challenges. But this election is not just about
change, because change has a flip side. It's called trust. When
you get down to it, this election will be like every other. When
you go into that voting booth and pull the curtain behind you:
"trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers that phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business there. I've learned that our country's heartbeat can be
felt in places like Neenah, Wisconsin
not Washington, D.C.
3
And so I stake my claim on a simple philosophy: to lead a great
nation you must first trust the people you lead.
If you look at almost every important issue we face
you
see a clear choice -- a choice between those who put their faith
in average Americans
---
and those who put their faith in
government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is --- "who
will care for the kids while we're working?" A few years ago,
Washington wanted to help, but their idea was to rock the cradle
with the heavy hand of bureaucracy. All the plans boiled down to
creating some new kind of government apparatus, like a Pentagon
for child care.
I fought for a different approach and won. Our landmark
legislation allows parents -- not the government -- to decide
whether your children are cared for in school, a relative's home,
or church.
When it comes to raising children, I say: why not trust the
people?
What about our education system? To renew America we must
renew our schools, we all know this, but money alone won't do it.
We already spend more money per student than almost any other
country; and our kids still rank near the bottom in crucial
subjects like math and science. Again: a lot of ideas floating
around, most of them to pump more tax money into the same system.
4
I say try something different. Open up schools to
competition, and trust you to decide whether you want your kids
to learn in a public school, a private school or a religious
school.
When it comes to education, again I say: "why not trust the
people?"
What about government regulation? Sure, some of it is
necessary, even essential. But if you believe that there is a
government solution to every problem, an alphabet agency for
every issue, than you look at regulation not as a necessary evil,
but as a necessary way to rein in people's evil tendencies. The
results can be crazy, as this story proves.
The time had come recently for a government agency to update
its rules on hard hats. That's right: hard hats. And someone in
that agency stumbled upon a potential national crisis --- workers
being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from someone else's hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $13 million a year. Measurable benefit:
slightly less than zero.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
5
the books, and said: we think America can survive, without this
particular hard hat regulation.
But can you imagine what might have happened, if these
enterprising regulators had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?//
Some believe the solution to our problems is more government
regulation. I take a different view. I've put a moratorium on
new federal regulations, to give businesses like this one room to
breathe, and grow and create jobs.
In child care, education, health care and regulation, it's a
matter of trust --- trusting Americans to make their own choices.
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
You'll find a good example of what government can do right
here at Outlook. Last April, I challenged the nation's governors
to join me in helping our young people enter the world of work.
I am particularly concerned about teenagers
who want to work
want to learn a skill
but may be tempted to drop out of
school. True to form, Gov. Tommy Thompson is already reaching
out to these young people, along with concerned businessmen and
community leaders. The youth apprenticeship program will
encourage these kids to complete a sound high-school education,
while getting on-the-job training at companies like Outlook.
This program connects education with the real world of work.
6
Government can help make that connection -- and I salute Gov.
Thompson for helping me create a workforce that's up and ready
for the challenges of the next century.
So I believe we can give Americans the tools and then
it's a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
is not just a nuisance; it can be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
...
now that everyone is playing our
game? I know we can. Despite all the criticism you've heard
lately, keep in mind a few facts. We are the largest economy in
the world. Inflation, the Willie Sutton who robs the middle
class of dreams, has been put safely behind bars. The last time
interest rates stayed this low, the Brady Bunch hadn't even
started re-runs yet. Despite all the stories about our problems,
our workers are still the most productive in the world -- more
productive than the English, the Germans, the Japanese.
But while our economy is growing, it must grow faster. The
question is: how do we do it? The other side suggests a simple
two-part solution. First, jack up government spending! And
then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, whether you like it or not, you already work 126 days
7
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 127?//
All this talk of spending and taxes causes me to wonder
...
if the other side is a little hard of hearing. Abraham Lincoln
spoke of government "of the people, by the people, for the
people." But they seem to keep saying ... of the government, by
the government, and for the government.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense, comprehensive plan to get
this economy moving faster, now.
The first sound of a strong economy is usually the sound of
hammers pounding away at new homesites. So I proposed tax
incentives to build new homes, and a $5,000 break tax for families
V
who want to buy their first one. Here in Wisconsin, that equals
nine months of mortgage payments on the average house.
I understand that private enterprise is the horse that pulls
our wagon -- no government program ever created a real job
((although government did keep Johnny Carson in business for 30
years) So I proposed incentives for businesses to grow and
hire. It's estimated those incentives would have spurred the
creation of at least half a million jobs ...
if they had been
approved when I proposed them.
But they weren't approved. Instead, Congress sent back
what you might call an "anti-trust" program. New government
spending, and new taxes.
8
So I sent their plan back. I told them to try again. But
they still haven't done anything. And it leads me to a theory.
check
16
In your business, certain numbers mean something. Number 12 is
Joe Montana, Number 34 is Nolan Ryan, Number 33 is Patrick Ewing.
But there's another number that tells you all you need to know
about what's wrong with Washington: Number 38. That's how many
years the same party has had control of Congress. I say it's
time to trade in old Number 38. Give me a Republican Congress so
America can stay Number One.
You see
it all comes down to a question of trust. I
trust you to spend and save your money more wisely than any
budget planner in Washington.
This is common sense, and I agree. But there's a certain
type of person attracted to government for whom the word "trust"
has a strange meaning. Most of them have spent their lives in
government, and don't have much experience in the real world.
They say they want to ... "put people first." But if you
look closely at what they're advocating
...
the people they put
first are all on a government payroll.
A leader of a free people must understand that government
can not only help, it can hinder. He must have the confidence to
say: "I trust you." I trust the people. / /
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
9
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you, and God bless the United States
of America.
#
#
2
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
economy. How to make America's families more like the Waltons,
and less like the Simpsons. And how to take back our streets
from the crack dealers and the criminals.
This election year, we are told, is about how we can change
to meet these challenges. But this election is not just about
change, because change has a flip side. It's called trust. When
you get down to it, this election will be like every other. When
you go into that voting booth and pull the curtain behind you:
"trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers that phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is more even
than that. I'm a Texan -- raised my children there, built my
business there. I've learned that our country's heartbeat can be
felt in places like Neenah, Wisconsin
not Washington, D.C.
3
And so I stake my claim on a simple philosophy: to lead a great
nation you must first trust the people you lead.
If you look at almost every important issue we face
you
see a clear choice -- a choice between those who put their faith
in average Americans
---
and those who put their faith in
government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago,
Washington wanted to help, but their idea was to rock the cradle
with the heavy hand of bureaucracy. All the plans boiled down to
creating some new kind of government apparatus, like a Pentagon
for child care.
I fought for a different approach
and won. Our landmark
legislation allows parents -- not the government -- to decide
whether your children are cared for in school, a relative's home,
or church.
When it comes to raising children, I say: why not trust the
people?
What about our education system? To renew America we must
renew our schools, we all know this, but money alone won't do it.
We already spend more money per student than almost any other
country; and our kids still rank near the bottom in crucial
subjects like math and science. Again: a lot of ideas floating
around, most of them to pump more tax money into the same system.
4
I say try something different. Open up schools to
competition, and trust you to decide whether you want your kids
to learn in a public school, a private school or a religious
school.
When it comes to education, again I say: "why not trust the
people?"
What about government regulation? Sure, some of it is
necessary, even essential. But if you believe that there is a
government solution to every problem, an alphabet agency for
every issue, than you look at regulation not as a necessary evil,
but as a necessary way to rein in people's evil tendencies. The
results can be crazy, as this story proves.
The time had come recently for a government agency to update
its rules on hard hats. That's right: hard hats. And someone in
that agency stumbled upon a potential national crisis --- workers
being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from someone else's hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
disinfected before one worker passed it to another. Estimated
cost to business: $13 million a year. Measurable benefit:
slightly less than zero.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
5
the books, and said: we think America can survive without this
particular hard hat regulation.
But can you imagine what might have happened if these
enterprising regulators had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?//
Some believe the solution to our problems is more government
regulation. I take a different view. I've put a moratorium on
new federal regulations, to give businesses like this one room to
breathe, and grow and create jobs.
On child care, education, regulation, it's a matter of trust
--- trusting Americans to make their own choices.
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
You'll find a good example of what government can do right
here at Outlook. Last April, I challenged the nation's governors
to join me in helping our young people enter the world of work.
I am particularly concerned about teenagers
who want to work
want to learn a skill
but may be tempted to drop out of
school. True to form, Gov. Tommy Thompson is already reaching
out to these young people, along with concerned businessmen and
community leaders. The youth apprenticeship program will
encourage these kids to complete a sound high-school education,
while getting on-the-job training at companies like Outlook.
This program connects education with the real world of work.
6
Government can help make that connection -- and I salute Gov.
Thompson for helping me create a workforce that's up and ready
for the challenges of the next century.
So I believe we can give Americans the tools
and then
it's a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
of trust is not just a nuisance; it can be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Despite all the criticism you've heard
lately, keep in mind a few facts. We are the largest economy in
the world. Inflation, the Willie Sutton who robs the middle
class of dreams, has been put safely behind bars. The last time
interest rates stayed this low, the Brady Bunch hadn't even
started re-runs yet. Despite all the stories about our problems,
our workers are still the most productive in the world -- more
productive than the English, the Germans, the Japanese.
But while our economy is growing, it must grow faster. The
question is: how do we do it? The other side suggests a simple
two-part solution. First, jack up government spending! And
then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, whether you like it or not, you already work 126 days
7
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 127?//
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
spoke of government "of the people, by the people, for the
people.' But they seem to keep saying
of the government, by
the government, and for the government.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense, comprehensive plan to get
this economy moving faster, now.
The first sound of a strong economy is usually the sound of
hammers pounding away at new homesites. So I proposed tax
incentives to build new homes, and a $5,000 tax break for
families who want to buy their first one. Here in Wisconsin,
that equals nine months of mortgage payments on the average
house.
I understand that private enterprise is the horse that pulls
our wagon -- no government program ever created a real job
((although government did keep Johnny Carson in business for 30
years) ) So I proposed incentives for businesses to grow and
hire. It's estimated those incentives would have spurred the
creation of at least half a million jobs
if they had been
approved when I proposed them.
8
But they weren't approved. Instead, Congress sent back
what you might call an "anti-trust" program. New government
spending, and new taxes.
So I sent their plan back. I told them to try again. But
they still haven't done anything. And it leads me to a theory.
In your business, certain numbers mean something. Number 16 is
Joe Montana, Number 34 is Nolan Ryan, Number 33 is Patrick Ewing.
But there's another number that tells you all you need to know
about what's wrong with Washington: Number 38. That's how many
years the same party has had control of Congress. I say it's
time to trade in old Number 38. Give me a Republican Congress so
America can stay Number One.
You see
it all comes down to a question of trust. I
trust you to spend and save your money more wisely than any
budget planner in Washington.
This is common sense, and I agree. But there's a certain
type of person attracted to government for whom the word "trust"
has a strange meaning. Most of them have spent their lives in
government, and don't have much experience in the real world.
They say they want to "put people first." But if you
look closely at what they're advocating
the people they put
first are all on a government payroll.
A leader of a free people must understand that government
can not only help, it can hinder. He must have the confidence to
say: "I trust you." I trust the people. //
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you, and God bless the United States
of America.
#
#
To MICHELLE
Date
Time 9:40
WHILE YOU WERE OUT
M RICKBERG
Phone 608 264 6181
of
Area Code
TELEPHONED
Number PLEASE CALL Extension X
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message
Operator
AMPAD
EFFICIENCY®
23-023 CARBONLESS
Mich: 5-7 128 days
Wise : 5-5 126 days
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft One
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
100/2 billioncards
JULY 27, 1992
2:00 PM
300 per pusin
Thank you and good afternoon everyone.
(Acknowledgments)
cards
I can't tell you what a pleasure it is to be here. For any
sports fan, it's a thrill to be at the birthplace of America's
John
sports trading cards. And for me it's a little humbling, too.
I
Wrley
don't dare ask you how many hundreds of George Bush cards you
Outlook
have to trade to get even one Michael Jordan.
I've come here to talk a little bit about our future
about the kind of nation we want for us
...
and our children.
The world has undergone positive change the past few years.
Today our kids worry about the usual things
...
about school,
friends, about such earth-shattering questions as
...
where can I
get an of (Magic Johnson) "exclusive edition" card. But I can tell
Dream Team card.
you one thing they don't worry about
...
the specter of nuclear
war.
Today
America is safer than before. Safer than we were
a decade ago. Safer than we were a year ago. Safer than we were
just a few months ago
when I sat down with Boris Yeltsin and
eliminated nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
2
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is even more
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities.
Our heartbeat can be felt in places
like Neenah
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
3
If you look at almost every important issue we face
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plans
boiled down to creating some new kind of government apparatus
like a Pentagon for child care.
I fought for a different approach
and won. Our landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home
or in church.
When it comes to raising children
I say: trust the
parents.
What about our education system? To renew America we must
renew our schools
we all know this
but money alone won't
do it. The U.S. already spends more on education per student
than almost any other country; but our kids still trail most of
the industrial world in crucial areas like math and science
education. Again: a lot of ideas floating around, most of them
to pump more tax money into the same system.
4
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. " I say: Let parents, not the government, choose their
children's schools.
One more example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Four
Thirty-seven million Americans
a population larger than the
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it
and tax incentives so that small
businesses can pool their resources and cover more of their
people. // When it comes to deciding what doctor? What hospital?
I say
trust the people to choose.
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
A good example of what government can do is starting right
here at Outlook. Last April, I challenged the nation's governors
5
to join me in helping our young people enter the world of work.
I am particularly concerned about teenagers
who want to work
want to learn a skill
but may be tempted to drop out of
has been reaching
school. True to form, Gov. Tommy Thompson reached out to these
n
young people. His apprenticeship program will encourage them to
complete a sound high-school education, while getting on-the-job
training at companies like Outlook. This program connects
education with the real world of work. Government can help make
that connection -- and I salute Gov. Thompson for helping me
create a workforce that's up and ready for the challenges of the
next century. //
So I believe we can give Americans the tools
and then
it's a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
isn't just bad judgment; it could be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars.
The last time interest rates were this low
the Brady Bunch
hade 4 started Rans
wasn even on television. Despite all the stories about our
problems
our workers are still the most productive in the
6
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, whether you like it or not, you already work 126 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 127?
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
talked about government "of the people, by the people, for the
people." I think most Americans agree with him. But there are
others who keep wanting to say
...
government of the people, by
the people, on the people.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to jumpstart the
economy, help us over the bumps in the road.
I wanted to free up the energies of our entrepreneurs with
tax cuts; to give a $5,000 break to young couples trying to buy
their first home. Here in Wisconsin, that $5,000 would have been
equal to nine months of mortgage payments.
If they had passed it when I asked them to
...
we could have
created 500,000 jobs.
7
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back. I told them to try again. And I'm
still waiting. And I'm beginning to get the distinct impression
that the only way to get rid of the deadlock in Washington
is to clean a little deadwood in Congress.
Send me a new Congress that will work with me
and I'll
get this economy moving faster than Desmond Howard.
It all comes down to a question of trust. I trust you to
spend and save your money more wisely than any budget planner in
Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
moratorium on federal regulations -- to untangle the red tape
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
workers being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
8
fix
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
...
without
this particular hard hat regulation.
But can you imagine what might have happened
...
if these
enterprising regulator guys had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
...
"put people first. " But if you
look closely
...
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you. " I trust the people.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- no government ever created a single job
(although it did keep Johnny Carson around for 30 years.)
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you
Thank you and God bless you.
#
#
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft Two
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
JULY 27, 1992
2:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
It's a great pleasure to be here. For any sports fan, it's
a thrill to be with the producers of America's sports trading
cards. ((And for me it's a little humbling. I don't dare ask
you how many hundreds of George Bush cards you have to trade to
get even one Michael Jordan.))
I've come here to talk a little bit about our future
about the kind of nation we want for ourselves
and our
children. The world has undergone remarkable changes the past
few years. Today our kids worry about the usual things
about
school, friends, about such earth-shattering questions as
where can I get an Olympic "Dream Team" card. But I can tell you
one thing they don't worry about any more -- one thing they might
have worried about just a short while ago
the spectre of
nuclear war.
Today
America is safer than ever before. Safer than we
were a decade ago. Safer than we were a year ago. Safer than we
were just a few weeks ago
when I sat down with Boris Yeltsin
and agreed to eliminate some of the most dangerous nuclear
weapons on earth.
michele,
Mark Samuals called(1622)
in he said to call Don Arbuckle
atomb (x7340) abou t the
anecdotes.
Moral
John 22
Chris
395-6880
To Michele
To Michele
Date
Time
Time 12:55
Date
WHILE YOU WERE OUT
WHILE YOU WERE OUT
M John Morrell
M Audy
of
Phone 6880
of
Phone
Area Code
Number
Extension
Area Code
Number
Extension
TELEPHONED
PLEASE CALL
4
TELEPHONED
PLEASE CALL
CALLED TO SEE YOU
WILL CALL AGAIN
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
WANTS TO SEE YOU
URGENT
x
RETURNED YOUR CALL
RETURNED YOUR CALL
Message
Message see him
URGENT
JOH
Operator
Operator
AMPAD
EFFICIENCY®
23-023
CARBONLESS
AMPAD
EFFICIENCY®
23-023 CARBONLESS
To Michele
Date
Time 12:50
WHILE YOU WERE OUT
of M John Manel
Phone
Area Code
Number
Extension
TELEPHONED
PLEASE CALL
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message
JOH
Operator
AMPAD
EFFICIENCY®
23-023 CARBONLESS
City/State: NeeNah, WI
Event: Outlook Graphics
Date: July 22 , 1992
OFFICE OF PRESIDENTIAL ADVANCE event date: 7/27/92
CONTACT SHEET
Name
Office
Phone Number
Presidential Advance Office
202/456-7565
Presidential Advance Fax Number
202/456-2820
UlNNie Mincy
Presidential Advance 456-7565
Peggy Hazeling
Presidential Advance 202/456-7565
John Herrick
"
"
Jim Milslagle
Banta Corp
722-7777
Scott Schnoller
Wisconsin Dept. of Advistration (608) 267-2704
JiLL HANSON
BUSH-QUAYLE '92
202-336-7145
Tim Alexander
U.S. Secret Service
202-395-6074
RUSTY SCHORSEN
MILITARY AIDE
(202) 395 - 1347
Russ CANCILLA
Military AndE
202-395-1747
BOB MARLOW
WHITE HOUSE ADVANCE
202-754 7565
DAVE ERDMANN
OuTLook
414-722-2333
John Wiley
Outlook.
414-722-2333
ED WALTERS
WH SPEECHWRITING
(202)456-7750
fax (202)456-6218
MICK CHANDRANI
U.S. SECRET SERVICE
(414)733-8000
CLIFF DECKARD
U.S Secret Service
414-297-3587
GARY R. GROTH,
U.S. Secret Service
733-8000
LYNN R. PETERS
FOX CITIES CHAMBER
734-7101
Craig Bergstrom
W.H. Press Advance
733 - 8000
SCOTT FASSETT
W. H. PRESS ADVANCE LEAD
733-8000
GREG HUNT
Fox Cities Chamber of Commerce
734-7101
Mark Flexing
Banta Corp.
722-7777
RICHARD AUSTIN
OUTLOOK GRAPHICS -SECURITY MGR. 414-731-0505
MARK BARNETT
WHITE HOUSR COMMUNICATIONS
(202)757-2442
GORDON ERRINGTON
WHITE HOUSR comm
(202) 757-5000
DAW BARKLOW
Ats Coller
WHITE House ADVANCE
Outlook Graphics
(202)456-7565
414 722 2333
Mailing Address:
Tommy G. Thompson
Post Office Box 7868
Governor
Madison, WI 53707-7868
James R. Klaumer
Secretary
State of Wisconsin
Department of Administration
101 South Webster Street Madison, Wisconsin
July 24, 1992
TO:
Michelle Nix
FROM:
White Rick Wisconsin Berg House Rz
Administration
RE:
Background Information
I have attached a variety of documents which provide perspective
and background on the Wisconsin Youth Apprenticeship System and
our overall school-to-work initiative.
I have provided more information than what you may want and some
of what I have sent you may have, but I felt - in this case -
more is better.
I should also note that the paper entitled: "A Discussion Paper:
Wisconsin's Youth Apprenticeship Program" was accepted by the
Executive Cabinet for a Quality Workforce and is the official
framework for Wisconsin's Youth Apprenticeship System.
If I can assist in any other way with your efforts on behalf of
the President's anticipated visit to Wisconsin, please call me at
608-264-6181 or at home over the weekend at 608-277-0763.
JUL-24-'92
FRI
00:01
B
WISCONSIN YOUTH APPRENTICESHIP SYSTEM
1) In 1991, legislation was enacted and signed into law which
created Wisconsin's Youth Apprenticeship System.
The word "system" is important because this is not a
stand-alone, job training program (like Arkansas), but
is instead a key part of an ambitious education reform
movement, which links improvement in education to
improvement in workforce quality.
Wisconsin's Youth Apprenticeship System is part of
the state's overall School-to-Work Initiative, which
also includes Tech-Prep and college-prep. The thrust
is to broaden student options while still in high
school by identifying major pathways to success, i.e.
high skill, high wage jobs.
This system is designed to better link school work to
the world of work and, in the process, provide for a
higher skilled workforce.
The Youth Apprenticeship system is under the direct
supervision of the Department of Labor, Industry &
Human Relations, but operates with significant input
and involvement from the state's Vocational, Technical
and Adult Education system, the Department of Public
Instruction, local school districts, business and
labor.
2) on September 3, 1991, Governor Thompson signs Executive
Order #127 (copy attached) which creates the Executive
Cabinet for a Quality Workforce.
The Executive Cabinet brings together leaders from.
government, business, education and labor. Executive
Cabinet is chaired by James Klauser.
The Executive Cabinet is charged with the responsibility
of implementing Wisconsin's school-to-work initiative,
notably the Youth Apprenticeship System.
* In January, 1992, the Executive Cabinet created
'Implementation Groups' which were to assist the Executive
Cabinet in developing recommendations for implementation
of the school-to-work initiative. One of these groups
was the Printing Implementation Group (list of members
is attached). This group was chaired by Jim Milslagle
of Banta Corporation,
In April, 1992, the Printing Implementation Group came
back with a set of recommendations for developing a
printing youth apprenticeship program. These
recommendations were adopted by the cabinet and
implementation for the fall of 1992 was underway.
six companies in the Menasha/Neenah/Appleton area
form a consortium to support the work-based training
component in the Fox River Valley Printing Youth
Apprenticeship System. Banta continues to lead the
way. Rather than attending their 'home' high schools,
enrolled students will receive on-site, work-based
training through one of these companies and will
receive classroom instruction through local VTAE
campus. At the end of the two-year program, they
will receive a high school degree along with a
certificate of occupational proficiency which will
have currency throughout the state.
At about the same time, John Torinus, President of
Serigraph Printing in West Bend and a member of the
Printing Implementation Group, was working on establishing
a similar program between Serigraph and the West Bend
School District. This program has also enrolled students
for this fall.
3) Why is this important.
Wisconsin is the first state in the nation to pass and
implement legislation creating a youth apprenticeship
credentials system (Arkansas legislation predated
Wisconsin by months, but allows only for demonstration
projects and is not as fully developed as our initiative).
This is an example of what can be accomplished when
business, government, education and labor work together on
behalf of children. Contrast this with a congress
unwilling to move on the Presidents federal initiative,
which more or less parallels the Wisconsin system.
Program provides, at the same time, high school diploma
and a certificate of occupational proficiency which opens
direct access to the world of work, advanced standing in
a traditional apprenticeship program, credits in a
technical college or admission to a four-year university.
This system allows Wisconsin to adapt to state's economic
and demographic conditions by targeting occupational
areas with great potential for career progression and
high wages.
Links 11th grade students into competency-based classroom
instruction with paid and structured work-based employment
supervised by industry mentors.
Offers the perfect blend of school, which provides
theoretical instruction, and the workplace, which supplies
the experience and technological literacy to better
prepare for high-skill demands of an increasingly
competitive workplace.
JUL-24-192
FRI
ATTACHMENT
A
The State of isconsing
OFFICE OFTHE GOVERNOR
EXECUTIVE ORDER #127
Relating to Creating the Exacutive Cabinet
for 2 Quality Markforce
WHEREAS, the National Governors' Association has found that
"changes in global economics and national demographics have heightened
demands for improvements in this country's workforce development:* and
WHEREAS. the Governor's Commission for & Quality Horkforce and
other studies have determined that 2 new long-range strategy for the
preparation of Wisconsin's workforce is critical to the state's aconomic
future and to the well-baing of its citizens: and
WHEREAS, implementing the policy recommendations of the Commission
and other studies will require a coordinated effort of state. and local
educational, tabor and social service agencies as well as private sector
business and labor; and
MHEREAS. state government has untque opportunities to faster the
coordination needed to establish & sustained workforce readiness
initiative:
HOH. THEREFORE. I. TOMMY G. THOMPSON. Governor of the State of
Wisconsin. by the authority vested in me by the Constitution and the laws
of this State. and specifically by Hisconsin Statute section 14.019, do
hereby:
1. Establish the Executive Cabinet for a Quality Workforce to oversee
implemantation of & new workforce readiness initiative to ensure that
Wisconsin's workforce will be world class by the end of the century.
2. Appoint the following members to the Cabinet:
a. The Secretary of the Department of Administration. who shall
serve as chairman:
b. The State Superintendent of Public Instruction:
C. The Secretary of the Department Industry. Labor and Human
Relations:
d. The Secretary of the Department of Health and Social Services;
e. The State Director of the Wisconsin Board for Vocational,
Technical and Adult Education:
f. A member of the University of Hisconsin Soard of Regants:
Workfores: g. The chairman of the Governor's Commission for a Quality
h. The President of Wisconsin Manufacturers and Commerce: and
1. The President of the Hisconsin AFL-CIO.
3. Direct that the Executive Cabinet for & Quality Horkforce shall:
a. Identify and implement. in cooperation with the Department of
Public Instruction. the Wisconsin Scard of Vocational. Technical
and Adult Education. employers and lagor, the education and
training policy cariens needed to prepare high school-age youth
for entry into a skilled workforce and other postsacondary career
cortons. These cotions should include programs to better prepare
these youth for entry into postsacondary education programs
(tech-orea and academic prep) and for direct entry into the
workforce or apprenticaship programs through work-based learning
(a.g. youth apprenticashis programs):
D. Identify barriers limiting minorities. vomen and disabled
persons access to high skill. high vage employment and design
strategies to overcome these barriers.
C. Facilitate the effort to implement in statute. by 1995-96.
requirements for a Certificate of Initial Mastary as recomended
by the Commission for à Quality Horkforce as a prerequisits for
participation in job-training opportunities for high school-age
youth:
d. Identify and implement. in cooperation with the Wisconsin
Department or Industry. Labor and Human Relations. employers and
labor, the training policies and programs needed to reskill the
existing workforce and the uneamloyed:
e. Work with the Vocational. Technical and Adult Education system
and amployers across the state to improve access to training:
f. Contribute to the development of educational and training
programs responsive to changing employer skill needs:
g. Report annually to the Governor and Legislature on the
progress of Hisconsin's workforce readtness initiative: and
h. Advise the Governor on Legislative initiatives needed to
improve this.
4. Direct the state agencies represented on the Cabinet to provide staff
support for the Cabines.
5. Direct the Secretary of the Department of Administration to provide
the Cabinet with sums of money that are necessary and proper for the
legitimate travel and operating expenses of the Cabinet under Section
20.505(3)(a) of the Wisconsin Statures.
IN TESTIMONY WHEREOF. I have
hereunts set my hand and
caused the Great Seal of the
State or Hisconsin at be
affixed. Done at the Capitol
in the City of Madison this
third day of September la the
year one thousand nine hundred
and sinety-one.
Governor
By the Governor:
Darls. 1,7allette
DOUGLAS LA FOLLETTE
Secretary of State
Tommy G. Thompson
Mailing Address:
Governor
Post Office Box 7868
James R. Klasser
Madison, WI 53707-7868
Secretary
State of Wisconsin
Department of Administration
101 South Webster Street Madison, Wisconsin
BACKGROUND PAPER
EXECUTIVE CABINET FOR A QUALITY WORKFORCE
FEBRUARY 1992
In recent years, a remarkable consensus has emerged on the
urgent need to improve the training of American workers. A
steady stream of task forces and commissions have painted a
bleak picture of a workforce unequipped for the high-tech
future and not fully prepared for the needs of today's
employers. Without immediate and drastic changes in our
educational and job training systems, they warn, America
will continue to lose high-wage, high-skill jobs to overseas
competitors. The situation was summed up by the title of
the influential report of the Commission on the Skills of
the American Workforce: "America's Choice: High Skills or
Low Wages."
A number of forces have combined to produce this situation.
Low-skill, high-wage jobs of past decades have fled to
cheaper foreign labor markets. High paying jobs have become
more and more demanding, requiring higher levels of
technical competency and often postsecondary training. The
nation's economy has become increasingly globalized, with
even small companies facing fierce competition from foreign
firms.
while the world is becoming smaller, more competitive, and
more complex, American young people emerge from school
equipped with the skills needed thirty years ago. They
receive little job training and career education and are
competent only in the most basic academic skills. While
other nations have sophisticated job training systems and
hold all their students to high achievement standards, we
ignore our non-college bound students and rank at the bottom
of international academic achievement tests. Since
expanding access to higher education has been a principle
goal, we have provided the non-college bound with a weak
curriculum and almost no preparation for life after high
school. We have failed to articulate clear performance
standards for either the college bound or non-college bound
and have avoided establishing methods of assessing their
performance.
As a result of these trends, employers have found it
increasingly difficult to find enough skilled workers to
meet their needs. While their international competitors can
draw on a pool of highly trained workers, American firms
lack the personnel to remain competitive or expand. Already
the economy is showing the effects: high trade deficits,
low productivity growth, and flat earnings.
Two recent state commissions, the "Governor's Commission for
a Quality Workforce," chaired by Carl Weigell of Motor
Castings Co., and the "Joint Task Force on Implementing
Occupational Options in Wisconsin," chaired by James Haney,
president of Wisconsin Manufacturers and Commerce, concluded
that Wisconsin faces similar problems. Among their findings
were:
* 60 percent of employers face rising skill
requirements in the next five years;
90 percent find it difficult to find skilled workers;
72 percent say a shortage of skilled workers has hurt
their productivity;
25 percent rate the basic skills of their front-line
workers as poor, citing problems with writing,
reading, and using fractions;
70 percent of Wisconsin students do not obtain a
college degree;
Only 11 percent of high school graduates enroll in a
technical college after graduation.
Another troubling sign for Wisconsin's economy is the amount
of remedial instruction and training the state's businesses
and postsecondary institutions must provide. Approximately
19 percent of the VTAE system's 409,000 students are
enrolled in some type of remedial course, at a cost of about
$51 million. Of freshman entering the University of
Wisconsin System in the fall of 1990, 10 percent needed
remedial instruction in English; 20 percent required
remediation in mathematics. In addition, roughly one third
of workers entering the carpentry apprenticeship program
perform unsatisfactorily on a test of basic math skills.
Along with consensus about the problem, there is also wide
agreement in the state on how to solve it. Following the
recommendations of national reports, the Weigell and Haney
commissions, and State Superintendent of Public Instruction
Dr. Herbert J. Grover's School-to-Work Initiative, the state
will introduce three options, college prep, tech prep, youth
apprenticeship, at the high school level. The Youth
Apprenticeship Program is patterned after the highly-touted
German system of worker training. All students will also
take a tenth grade "gateway assessment", the results of
which will help them plan future education and training
options. For their last two years of high school, students
will be able to choose either a college prep program, a tech
prep program or a youth apprenticeship program. The latter
will involve a combination of technical training, either at
the high school or a technical college, and actual work-
based experience. Students will earn not only a high school
diploma but also a youth apprenticeship certificate of
competency in specific technical areas. Both the Weigell
and Haney commissions also recommended that technical
colleges upgrade the quality and accessibility of their
programs to improve the training of the current workforce.
The state's policymakers, educators, and business and labor
leaders have been hard at work implementing reforms to
improve workforce quality. In fact, the state leads the
nation in the development of school-to-work initiatives.
Wisconsin is the first state to pass legislation enabling
the development of a statewide youth apprenticeship program.
In addition, the state will allow high school students to
enroll in courses for high school credit in the state's
public and private colleges and VTAE system starting in the
1992-93 school year. A tenth grade Gateway Assessment
package is currently under development.
To oversee the implementation of these programs, Governor
Thompson formed the Executive Cabinet for a Quality
Workforce through an executive order on September 3, 1991.
The members of the Executive Cabinet are:
James Klauser
Secretary, Department of
Administration, Chairman
Herbert Grover
State Superintendent of Public
Instruction
Carol Skornika
Secretary, Industry, Labor & Human
Resources
Gerald Whitburn
Secretary, Health & Social Services
Dwight York
Director, Vocational, Technical &
Adult Education
Erroll Davis
Member, University of Wisconsin
Board of Regents
Carl Weigell
Chairman, Governor's Commission
for a Quality Workforce
James Haney
President, Wisconsin Manufacturers
and Commerce
Jack Riehl
President, Wisconsin AFL-CIO
The Executive Cabinet is not a study group, but an
implementation team. Close cooperation between several
state agencies and input from the state's business, labor
and education communities are crucial to the success of the
workforce initiatives. The cabinet was created to
coordinate the efforts of these groups.
In January 1992, the Executive Cabinet created four
"implementation groups.' Two of the groups are charged with
creating apprenticeship programs in printing and
metalworking, to be ready for the 1992-93 school year. The
third group will overhaul counseling services for students
and workers, and the fourth will develop a Milwaukee
Initiative. Preliminary reports from these groups are
expected in mid to late April.
Fact Sheet
In a recent 15 nation assessment of student
achievement, the United States ranked second to last in
mathematics and third from the bottom in science.
American productivity growth is only one third of what
it was in the 1960s.
Real average weekly earnings have dropped 12 percent
since 1969.
Over the past 15 years, the earnings gap between white
collar professionals and skilled tradespeople has
increased from two to 37 percent.
25 million workers will need to upgrade their skills in
the 1990s if the nation's employment needs are to be
met and productivity gains made.
A recent survey of Wisconsin employers reveals that
-- 60 percent face rising skill requirements in the
next five years
-- 90 percent find it difficult to find skilled workers
-- 70 percent say a shortage of skilled workers has
hurt their productivity
-- 25 percent rate the basic skills of their front-line
workers as poor, citing problems with writing,
reading, and using fractions.
A University of Wisconsin study predicts the state's
economy will add 30,000 new jobs in the 1990s,an
increase of 12 percent, while the population will grow
by only 3.2 percent.
70 percent of the state's workforce in the year 2000 is
already working.
70 percent of jobs in the state require significant
specialized preparation and training beyond high
school, and 60 percent of new jobs will be in high
wage/high skill occupations.
Only 11 percent of Wisconsin high school graduates go
on to technical colleges, compared with 22 percent
nationwide.
Many executives cite a lack of skilled people as the
Milwaukee area's biggest economic problem.
19 percent of VTAE students take remedial courses, at a
cost of 51,000,000. Ten percent of freshman entering
the UW System need remediation in English, 20 percent
do in math.
A Discussion Paper:
Wisconsin's
Youth Apprenticeship
Program
February 1992
EXECUTIVE SUMMARY
The Youth Apprenticeship Program is one part of a broader effort to improve the
transition from high school to work, a registered apprenticeship, and/or where appropriate
to two or four year colleges. Youth apprenticeship is explicitly intended to link high school
students with business and industry through an integrated education and work-based
learning program leading to a statewide credential of proficiency.
Wisconsin Statute sec. 101.265 (created by 1991 Wis. Act 39) creates a Youth
Apprenticeship Program in the Department of Industry, Labor and Human Relations
(DILHR) and requires the agency to cooperate with the Department of Public Instruction
(DPI) and the Wisconsin Board of Vocational, Technical and Adult Education
(WBVTAE) to develop the program and maintain it statewide. A twelve member Youth
Apprenticeship Advisory Council is also created to advise and assist in the design and
development of the program.
Wisconsin's apprenticeship program has a long (80 years) and well respected history.
Apprenticeship, as a learning model, has been used for over 2,000 years. The basic premise
of traditional adult apprenticeship programs is that effective learning occurs through doing
it. The teaching is done by a skilled crafts person (journey worker) in an actual work
situation. Wisconsin's Youth Apprenticeship Program is designed to include important
features of it's registered apprenticeship program.
Local youth apprenticeship programs will be designed by a consortium of local
partners- the schools, the technical colleges, employers, labor organizations, the state's
apprenticeship agency and parents and students. The consortium must build on and
integrate with other ongoing or developing curricula in the schools which meet district and
state high school graduation standards. At the same time, all programs must include the
following core elements:
Prerequisite completion of career awareness/exploration and/or Education for
Employment with a career counseling component and satisfactory performance
on the 10th Grade Gateway Assessment.
Structured, sequenced classroom instruction linking academic and work-based
learning.
Work-based learning (on-the-job training) that follows a systematic schedule of
identified work activities.
Classroom instruction and work-based learning are competency-based.
Classroom instruction and work-based learning are integrated.
On-the-job training (work-based learning) is provided by a skilled mentor.
On-the-job training (work-based learning) is in a skilled occupational area.
Program completers receive a state certificate of academic and occupational
proficiency.
Completers receive a high school diploma.
The certificate of proficiency translates into eligibility for work experience
credit in a traditional apprenticeship, advanced standing or credit in a technical
college program and/or facilitated entry into a four year college program.
TABLE OF CONTENTS
I.
INTRODUCTION
Page
A.
Program Objectives
1
B.
The Program's Policy Approach
2
C.
Apprenticeship as a Model for the Transition From School to Work
3
D.
Other Features of the Youth Apprenticeship Program
4
II.
A YOUTH APPRENTICESHIP MODEL FOR WISCONSIN
A.
The Youth Apprenticeship Model Coordinated with Tech-Prep
5
B.
Governance and Operation of the Youth Apprenticeship Program
7
III. ROLES AND RESPONSIBILITIES OF THE PARTNERS
A.
Youth Apprenticeship Advisory Council
8
B.
DILHR'S Bureau of Apprenticeship Standards (BAS)
9
C.
Department of Public Instruction
10
D.
Local Public Schools
11
E.
Wisconsin Board of Vocational, Technical, and Adult Education
12
F.
Technical Colleges
12
G.
Employers in the Program
13
H.
Industry Trade Groups, Labor Associations
14
I.
Labor Organizations (when present) in Participating Employers
14
J.
Students in the Program
15
IV. EXPECTED OUTCOMES AND PROGRAM BENEFITS
A.
For Employers
16
B.
For Students
16
WISCONSIN'S YOUTH APPRENTICESHIP PROGRAM
I.
Introduction
The Youth Apprenticeship Program is one part of a broader effort to improve the
transition from high school to work, a registered apprenticeship, and/or where appropriate
to two or four year colleges. Youth apprenticeship is explicitly intended to link high school
students with business and industry through an integrated education and work-based
learning program leading to a statewide credential of proficiency.
Wisconsin Statute sec. 101.265 (created by 1991 Wis. Act 39) creates a Youth
Apprenticeship Program in the Department of Industry, Labor and Human Relations
(DILHR) and requires the agency to cooperate with the Department of Public Instruction
(DPI) and the Wisconsin Board of Vocational, Technical and Adult Education
(WBVTAE) to develop the program and maintain it statewide. A twelve member Youth
Apprenticeship Advisory Council is also created to advise and assist in the design and
development of the program.
A.
Program Objectives
1.
Improve high school student's transition from school to high skill employment
through work-based learning in skilled trade occupations.
2.
Provide students with the integrated academic and technical background necessary to
qualify them for entry into 2 registered apprenticeship or other high skill training
opportunities.
3.
Expand the range of skilled training career options for youth: through
apprenticeships, technical programs in the Technical colleges (VTAEs) or
technologically oriented programs at colleges and universities.
4.
Improve student's qualifications/eligibilit for a registered apprenticeship and the
opportunity to obtain credit for their program experience.
5.
Improve student's ability to apply academic skills in work-based learning situations.
6.
Facilitate the entry of minorities and women into apprenticeships and other high skill
training opportunities or college.
7.
Increase the number of young people preparing for entry into high skill occupations.
Employers will have improved access to qualified young people.
8.
Involve business, industry and labor in planning, developing, and evaluating the
program. Business/industry/labor assistance in curriculum design is particularly
important.
9.
Enable employers to assess student's skills and potential prior to acceptance into an
apprenticeship or employment.
10. Expand employer's interest in and willingness to invest in skills training for their
current and potential future workforce.
11.
Create a school program that is interesting, enjoyable and challenging.
-1-
B.
The Program's Policy Approach
A large variety of school based or work-related activities are currently used on a
limited basis to facilitate the school-to-work transition of young people. In school
exploratory activities include career exploration classes, career days and classroom
presentations by workers in different occupations. Exploratory activities at work sites
include job shadowing, short term work experiences, mentoring, and community service.
Some schools also sponsor school-based work activities such as cooperative education and
participation in youth managed businesses through vocational education programs.
The above exploratory and school-based activities must continue in schools and in
fact are the fundamental basis for effective youth apprenticeship programs. Students must
have knowledge of career options and some experience with occupations if they are to
make intelligent choices about their occupational future. All of the above
occupationally-oriented activities, including youth apprenticeship, are part of a career
education program. Youth apprenticeship programs have a sharper focus. They include a
structured academic component integrated with a structured work-based learning
experience in a skilled occupational area. Youth apprenticeship programs must be
preceded by career exploration and experience with occupational options.
Hamilton, in his book Apprenticeship for Adulthood, distinguishes the above
exploratory and school-based activities from an apprenticeship. They are described as
"apprentice-like" and contain four essential elements. Hamilton identifies five additional
required elements for traditional (registered) apprenticeships.
Wisconsin's Youth Apprenticeship Program is aimed at developing what Hamilton
calls 2 school-based apprenticeship program. In order to facilitate discussion about the
program and its objectives, the following terminology will be used:
a.
Career or work awareness/exploration. School curriculum and work- based
exploration of career options in an industry or occupational cluster or
orientation to a specific occupation(s) which should precede application to
youth apprenticeship program.
b.
Youth apprenticeship. A program, certified by DILHR, that coordinates and
integrates classroom instruction (preceded by career awareness/ exploration)
with a work-based employment experience in which the young person remains a
student (i.e. is not a registered apprentice), and receives training in a skilled
occupational area and/or an occupational cluster. Training Is shorter and less
intensively focused than in a registered apprenticeship.
C.
School-to-work skill training program. All career/vocational exploration,
whether in school or a work setting, and school related work-based learning
(apprentice-like) activities, including youth apprenticeship.
d.
Apprenticeship. A federal/state registered program in which the person enters
into a contract of service where he/she receives instruction in a trade, craft or
business from an employer in consideration for his/her services. The person
receives specific occupational preparation as an employee as part of the
program.
-2-
C.
Apprenticeship as a Model for the Transition From School to Work
Wisconsin's apprenticeship program has a long (80 years) and well respected history.
Apprenticeship, as a learning model, has been used for over 2,000 years. The basic premise
of traditional adult apprenticeship programs is that effective learning occurs through doing
it. The teaching is done by a skilled crafts person (journey worker) in an actual work
situation. Wisconsin's Youth Apprenticeship Program is designed to include important
features of it's registered apprenticeship program.
How Ch. 101 (youth) and Ch. 106 (traditional) apprenticeships are similar:
1.
Classroom training and related academic instruction is integrated with on-the-job
training for an occupation.
2.
Positions are cooperatively developed by an employer, labor representatives, (where
appropriate) local schools and technical colleges operating as a consortium and
DILHR's Bureau of Apprenticeship Standards (BAS).
3.
On-the-job training follows a systematic schedule of identified work activities. A
skilled worker serves as the student's mentor on the job.
4,
The student receives a salary in payment for limited employment.
5.
There is a written agreement for each position. In youth apprenticeship programs,
the agreement (called an Employment Training Agreement) is between the employer
and the student's school, the student and parents and identifies employer and school
program responsibilities.
6.
Job performance and related classroom progress integrating academic and technical
knowledge are systematically evaluated.
7.
DILHR/BAS registers employers and participants in both the adult and youth
programs.
8.
Successful program completers receive a certificate of achievement. In the case of
youth apprentices, the certificate attests to both the academic and occupational
proficiency attained in the program.
How Ch. 101 (youth) and Ch. 106 (traditional) apprenticeships are different:
1.
Although Ch 106 allows those as young as 16 to become registered apprentices,
program standards generally require high school completion In fact, most current
apprentices are much older- the average age is 27 years old.
2.
In youth apprenticeships, classroom training is focused both on applied academics as
well as the knowledge and skills needed for a segment of an industry, an occupational
cluster, or a job. In registered apprenticeships, related instruction is intensively
focused on the skills needed by a specific skilled occupation.
3.
Work-based training is broader in youth apprenticeships, may be directed at an
occupational cluster and is less intensive in scope than in an apprenticeship.
4.
Training on the job is limited to 15-20 hours a week during the school year.
-3-
5.
The youth is in a student learner status (Ind 72.10(10)). The employer does not have
an obligation to hire the student at the completion of his/her youth apprenticeship.
6.
Wages are a stipend for participation. A multistep wage progression is not required
in the Employment Training Agreement.
7.
The Employment and Training Agreement is between the employer, the school as
well as the youth and parents because the youth remains a student in school. Student
and parents will also sign a program participation agreement with the school.
8.
The youth apprenticeship classroom instruction curriculum is competency based.
The student's progress, both in the classroom and on the job, is proficiency based
rather than solely time based.
D.
Other Features of the Youth Apprenticeship Program
Wisconsin's Youth Apprenticeship Program must also be based on these features:
a.
Prerequisites:
1.
The youth apprenticeship experience must be preceded by (and/or will
begin with) a strong career development program. The program includes
both career awareness and then a career exploration sequence in the
middle and early high school years, including Education for Employment
and career counseling.
2.
Satisfactory performance on the 10th Grade Gateway Assessment exam
(or a proxy until it is available) is required for program entry.
b.
The program curriculum includes employability skills development (including
work related skills such as problem solving, critical thinking and team work) in
the classroom and/or at work that can be measured in either a vocational or
academic assessment.
C.
Employers are encouraged to continue summer employment (and wages) which
expands and reinforces the student's prior work-based learning (on-the-job
training).
d.
Special emphasis is given to recruiting the participation of employers with high
performance work organizations, those who already train apprentices, and/or
those who participate in other public job training program efforts (such as
JTPA, JOBS and school-based programs).
e.
Encourages the development of and works with industry training consortia,
associations and labor organizations.
f.
Technical college and BAS registered sponsor recognition and credentialing of
youth apprenticeship curriculum (e.g. dual credit, credit for program
experience).
g.
Youth apprenticeship curricula (work-related and integrated academics) may
be delivered at either secondary or technical college district facilities or a
combination of both assuring satisfaction of high school graduation
requirements and, where appropriate, dual credit.
-4-
II.
A Youth Apprenticeship Model for Wisconsin
A model is described below. The local youth apprenticeship program consortium
must build on and integrate with other ongoing or developing curricula in the schools which
meet district and state high school graduation standards. At the same time, all programs
must include the following core elements:
Prerequisite completion of career awareness/exploration and/or Education for
Employment with a career counseling component and satisfactory performance
on the 10th Grade Gateway Assessment.
Structured, sequenced classroom instruction linking academic and work-based
learning.
Work-based learning (on-the-job training) that follows a systematic schedule of
identified work activities.
Classroom instruction and work-based learning are competency-based.
Classroom instruction and work-based learning are integrated.
On-the-job training (work-based learning) is provided by a skilled mentor.
On-the-job training (work-based learning) is in a skilled occupational area.
Program completers receive a state certificate of academic and occupational
proficiency.
Completers receive a high school diploma.
The certificate of proficiency translates into eligibility for work experience
credit in a traditional apprenticeship, advanced standing or credit in a technical
college program and/or facilitated entry into a four year college program.
A.
The Youth Apprenticeship Model Coordinated with Tech-Prep
Wisconsin's 1991 legislative package includes a new school-to-work initiative which
requires every school district to implement a tech-prep program. Given the objectives of
the tech-prep concept and the universal implementation requirements, it is logical to
incorporate some aspects of a youth apprenticeship program as part of the tech-prep
curriculum design, particularly applied academics.
Preparation for both a youth apprenticeship program and tech-prep curriculum
would start in the junior year of high school. It would necessarily build upon career
awareness activities in middle school and career exploration activities in the beginning high
school years. Young people will not be able to make intelligent (even if preliminary)
career choices without exposure to a variety of business and industry settings and
occupations to be found in them.
Program entry would be determined by interest, passage of the 10th grade gateway
assessment (DPI) (or a proxy) and the availability of an approved job (Local School with
DILHR/BAS assistance). Prior to program entry, students would complete all of their
regular 9th and 10th grade academic subjects- English, math, social studies and science.
Upon entry, students could participate in the tech-prep curriculum and take applied
academic courses to assure completion of high school graduation requirements. During the
-5-
junior year, related courses could be technical courses in math, science and
communications arts.
As a prerequisite to formally entering a Youth Apprenticeship Education and
Training Agreement in the fall of their junior year, students must have completed an
approved industry-specific survey course (at either the work site and/or in a school setting)
which includes an overview of the technology requirements, occupational options, wage
and employment expectations. This course will be developed cooperatively with business,
local schools, technical colleges and, where appropriate labor. This course and/or its
equivalent can be taken as part of the regular academic year during 10th grade or as a
Program. summer program immediately preceding fall enrollment in the Youth Apprenticeship
Note: The components of this course could be incorporated into the first
semester of the student's junior year until the Youth Apprenticeship Program is
fully implemented. This course does not substitute for the prerequisite career
and guidance activities which must precede participation in the Youth
Apprenticeship Program.
Once youth apprentices enroll as juniors, their time would be appropriately divided
between school and work-based learning as specified by the curriculum that meets industry
standards for the Youth Apprenticeship Program. Students would take appropriate
tech-prep courses and industry-specific courses developed by the local school district,
employers, technical college and approved by BAS. Students would also schedule any
other academic instruction to assure high school graduation. Work-based learning would
generally be paid employment under the terms specified by the Agreement. The amount of
time employed for payment will vary according to 1) industry training standards 2) the
amount of related instruction appropriate to skill development and 3) recognized by the
high school to meet graduation standards. Students, involved with work-based learning and
related instruction, would receive high school credit. Upon successful program completion,
students would receive high school diplomas, certificates of academic and occupational
proficiency to be used for direct employment or assistance in obtaining registered
apprenticeships, and/or entry and advanced placement into technical college, Vocational
or Associate of Arts programs.
The training agreement, involving students, employers, instructors, parents, and
school authorities, sanctioned by BAS, would provide for appropriate exit points generally
associated with the school semester or summer employment. Employers would be
encouraged to hire youth apprentices either as part of the industry-specific course in the
summer prior to their junior year or in the summer preceding their senior year. The length
of the training agreement may exceed the two years of high school-related time as
cooperatively developed with either the technical college and/or, where appropriate,
registered apprenticeships.
Four industries have been targeted for initial consideration: printing, health, finance
and metals. Other industries and specific businesses or firms would also be encouraged to
participate. DILHR resources would primarily be used to support the statewide
administration of the program and the establishment of standards. The curriculum for high
school integrated and applied academics and agreements on related technical college
coursework will be developed by DPI under an interagency agreement with DILHR.
-6-
B.
Governance and Operation of the Youth Apprenticeship Program
Wisconsin's Youth Apprenticeship Program will be designed and implemented by
three state agencies, DILHR, DPI and WBVTAE, with the assistance and advice of the
Youth Apprenticeship Advisory Council (created and defined in 1991 Wis. Act 39). The
Act also calls for DILHR to administer available program funds. The Council includes the
following membership:
One technical college administrator
Three vocational instructors
One high school administrator
Three high school teachers
Two representatives of business
Two representatives of labor
-7-
YOUTH APPRENTICESHIP PROGRAM
SUMMARY OF STATE PARTNER ROLES AND RESPONSIBILITIES
STATE LEVEL PARTNERS
Executive Cabinet Youth
ROLES/
Industry Trade
for A Quality
Apprenticeship
Groups, Labor
RESPONSIBILITIES
Workforce
Advisory Council DILHR/BAS DPI WBVTAE Associations
Policy Development
Program Design
Evaluation/Monitoring
State-wide Administration
Technical Assistance
Registration/Program Approval
Curriculum Design
Industry, Occupation Selection
Develop Gateway Assessment
Career Development Activities
Competency Certification
Design Work Requirements
Public Info/Progress Reports
Design Recordkeeping
Design School Staff Training
Design Employer Staff Training
Promotion
Employment Training Agreements
Credit for Program Participation
Employability Skills Development
Participant Assessment
YOUTH APPRENTICESHIP PROGRAM
SUMMARY OF PARTNER ROLES AND RESPONSIBILITIES
LOCAL PROGRAM PARTNERS
Laber
ROLES/
Local Education
Technical
Organizations
Parents/
RESPONSIBILITIES
Agencies
Colleges
Employers
(where applicable)
Students
Develop Local Training Consortiums
Program Administration
Monitoring
Curriculum/Competency Development
Occupations in Program
Gateway Assessment
Career Development Activities
Select Participants
Employment Training Agreement
Student Participation Agreement
Employment Skills Activities
Program Mentors
School Staff Training
Employer Staff Training
Recordkeeping
Promotion
III. ROLES AND RESPONSIBILITIES OF THE PARTNERS
A.
Youth Apprenticeship Advisory Council:
1.
Assist in the identification of work-based learning requirements for the Wisconsin
Youth Apprenticeship Program. Review program development guidelines.
2.
Provide implementation advice on the program in such areas as:
criteria for selecting industries and occupational areas for youth apprenticeships;
program location decisions;
curriculum design and content;
establishing standards for proficiency and student performance rating criteria;
ensuring equitable access and completion by members of special populations nd
minorities;
promotion strategies and program advocacy;
program evaluation;
the elements of Employment Training/Student Participation agreements.
3.
Review and rate industry applications to open Youth Apprenticeship Program
opportunities.
4.
Encourage the development of industry and association training consortia.
5.
Provide the policy framework for completing legislatively required reports, program
design and budget recommendations.
&
B.
DILHR'S Bureau of Apprenticeship Standards (BAS):
1.
Take lead responsibility (with cooperation from the other program partners) in the
design, development and administration of the program funds.
2.
Staff the Youth Apprenticeship Advisory Council.
3.
Identify, review and approve (with the assistance of other program partners) potential
employers and solicit their involvement. Other agencies with expertise in job
development, such as the Job Service, Private Industry Councils and Job Centers will
also be encouraged to assist with this activity.
4.
Develop a plan and interagency agreement (with DPI and WBVTAE) on program
objectives, record keeping requirements, information sharing, school and employer
staff training, technical assistance availability and monitoring.
5.
Develop a training program for participating employers (DPI will lead in curriculum
development).
6.
Develop (in cooperation with DPI) Employment Training Agreements and structured
work schedule requirements for students.
7.
Certify youth apprenticeship program employers and youth apprentices.
8.
Develop (in cooperation with business/industry) and grant (in cooperation with local
education agencies and/or technical college districts) certificates of occupational
proficiency.
9.
Design and implement a youth apprenticeship program evaluation process. Regularly
review program performance and report results to the Council and cooperating
agencies.
10.
Develop (in cooperation with the Council and other agencies) record keeping
requirements and monitor local employer compliance with program requirements.
11.
Seek improved entry and credit for experience in Ch. 106 apprenticeships for Ch. 101
youth apprenticeship program completers.
12.
Coordinate/share information on the youth apprenticeship program with the
Apprenticeship Advisory Council, the Wisconsin Jobs Council and the Executive
Cabinet for a Quality Workforce.
-9-
C.
Department of Public Instruction:
1.
Take the lead responsibility, through an interagency memorandum of understanding,
in the development of competency based, integrated academic, technical and
work-based curriculum (in cooperation with WBVTAE, business, industry and labor)
based on industry or occupational standards.
2.
Provide leadership and assistance to the public schools in the development of
career/vocational exploration activities and other programs that provide students with
occupational experiences that support entry into youth apprentice programs.
3.
Provide program designs that include generic employability skills and knowledge (such
as problem solving, critical thinking and decision making) general enough to be
transferable to a broad range of work situations.
4.
Participate in the development a state management plan (with DILHR and
WBVTAE) which specifies program objectives, record keeping requirements,
information sharing, school and employer staff training, technical assistance
availability and monitoring responsibilities.
5.
Promote legislative standards that ensure that high school graduation credit for
work-based learning (OJT) is transferable within and between school districts for
participants in the program.
6.
Monitor local school program operations.
7.
Lead in the development of staff orientation and training materials for secondary
teachers, coordinators and counselors. Provide technical assistance on staff training
for local education agencies participating in the youth apprenticeship program.
8.
Develop a marketing and counseling strategy for getting parents and students
interested in participating in the program.
9.
Take lead responsibility for development (with the assistance of DILHR and
WBVTAE) of a Youth Apprenticeship Program curriculum resource guide.
10.
Develop Gateway Assessment and (in cooperation with business, DILHR and
WBVTAE) recommend proficiency levels for application to the program.
11.
Participate in other activities as noted above (B 6, B 8, B 10).
-10-
D.
Local Public Schools:
1.
Administer 10th Grade Gateway Assessment as youth apprenticeship entry criteria.
2.
Develop and maintain career development curricula (career awareness and
exploration) that provide students with occupational experiences and preparation for
entry into the youth apprenticeship program.
3.
Develop or utilize/modify curriculum to support industry and DILHR approved
competency based program standards.
4.
Integrate applied academic courses and cooperative learning to support high school
diploma for work-based learning.
5.
Select (with employer assistance) youth apprenticeship program participants.
6.
Notify and/or assist DILHR/BAS in finding potential employers for youth
apprentices.
7.
Complete, with parents and students, a Student Participation Employment Training
Agreement with each participant, including school and work-site outcomes, that
includes apprentice. a structured schedule of work/training to be provided to the youth
8.
Assist students (in cooperation with other partners) in applying to a work-based
learning job training site.
9.
Provide required supervision and liability indemnification where appropriate, for
student learners participating in the youth apprenticeship program.
10. Provide student academic and work-based support services including career counseling
(provide case managers).
11. Monitor student academic and on-the-job (work-based learning) progress and ensure
that students maintain good standing in both school and at the work site as a
requirement for continuation in the program.
12. Manage the local youth apprenticeship program and provide the DPI and DILHR with
required program and student information.
13. Provide and train staff coordinators, counselors and teachers for the youth
apprenticeship program.
14. Allow teachers, coordinators, and counselors who work with the youth apprenticeship
program, to participate in staff development and training on the program.
15. Provide course credit for the experiential learning (OJT) of program participants.
16. Cooperate with state agencies conducting on-site program reviews.
-11-
JUL-24-192
FRI
E.
Wisconsin Board of Vocational, Technical, and Adult Education:
1.
Participate in the development of a state management plan (with DILHR and DPI)
which specifies program standards, record keeping requirements, information sharing,
school and employer staff training, technical assistance availability and monitoring
responsibilities.
2.
Assist in the development of competency-based program curricula (including
identification of occupational core competencies youth apprentices must master to
enter Ch. 106 apprenticeships).
3.
Assist in the design of competency-based student assessment materials and
procedures.
4.
Assist in the design of the training program for participating employers.
5.
Promote technical college program access to high school students through post
secondary enrollment options.
6.
Promote technical college development of secondary/post-secondary education
articulation agreements that recognize and credential youth apprenticeship curricula
(e.g., dual credit).
7.
Assist DPI in the development of a Youth Apprenticeship Program curriculum
resource guide,
F.
Technical Colleges:
1.
Assist in identifying potential employers and solicit their involvement. Assist
WBVTAE and DPI in the design of a local training program for participating
employers.
2.
Assist DPI in the design of secondary school curricula and identify occupational core
competencies students must master in different occupations.
3.
Assist in the assessment of youth apprenticeship occupational competencies.
4.
Develop articulation agreements with the CESAs and local education agencies that
recognize and credential youth apprenticeship curricula (e.g., dual credit).
5.
Make available district program access to high school students where local education
agency programming is unavailable.
-12-
G.
Employers in the Program:
1.
Commit to hire and train youth apprentices for a minimum of the three school
semesters requiring work-based learning. There is no requirement that the employer
will hire the youth after high school graduation.
2.
Employers should agree to try to continue summer employment (when it can be
integrated into school instruction) for their youth apprentices.
3.
Select, employ and train youth apprentices on a non-discriminatory basis.
4.
Provide career exploration and job shadowing opportunities for those students in the
youth apprenticeship program as well as younger students trying to decide about
program participation.
5.
Organize the youth apprentice's work-based learning experience so that it supports
required high school attendance.
6.
Supervise youth apprentices through a structured mentoring relationship with a skilled
employee in the firm or organization.
7.
Evaluate and report on the youth apprentice's on-the-job performance to
DILHR/BAS and the high school.
8.
Specify, in Employment Training Agreements with high school students and their
parents, the structured schedule of work/training to be provided to the youth
apprentice.
9.
Participate in orientation and staff development activities that prepare supervisors and
employees for participation in the program with attention to safety.
10. Advise DPI/local school curriculum committee on competency-based curriculum
design and development.
11.
Assist in the identification of employee knowledge and entry skill requirements as well
as advanced job skill competencies in their business/industry.
12.
When there is a collective bargaining agreement, labor and management must
cooperate in the design of the youth apprenticeship Employment Training Agreement.
13.
Agree to non-displacement of existing workers by youth apprentices.
14. Provide Worker's Compensation coverage for youth apprentices when they become
part time employees.
15.
Cooperate with the schools and state agencies in scheduling and participating in an
annual on-site visit.
-13-
JUL-24-'92
H.
Industry Trade Groups, Labor Associations:
1.
Develop a state-wide curriculum for high school student entry into the industry.
2.
Assist in identifying critical competency attainments necessary for achieving a
certificate of occupational proficiency.
3.
Assist in designing competency assessment standards and test procedures.
4.
Assist in designing an industry survey course.
5.
Obtain program participation commitments of employers in the industry.
6.
Assist in designing and implementing a job shadowing program for 7th through 10th
graders.
7.
Recommend instructor qualifications and certification requirements.
8.
Recommend model Employment Training Agreements (including a systematic
schedule of identified work activities):
9.
Assist in designing and implementing an industry internship for secondary and post
secondary teachers.
I.
Labor Organizations (when present) in Participating Employers:
1.
Assist in the identification of employee knowledge and entry skill requirements as well
as advanced job skill competencies in their business/industry.
2.
Advise on curriculum design and development
3.
Provide recommendations on work site orientation and staff training for the youth
apprenticeship program.
4.
Participate in orientation and staff development activities that prepare supervisors and
employees for participation in the program.
5.
Provide advice on the development of youth apprenticeship Employment Training
Agreements.
6.
Provide training and supervision (i.e. the mentor) for youth apprentices.
-14-
J.
Students in the Program:
1.
Pass the 10th Grade Gateway Assessment exam or other entry related academic
standards.
2.
Enter into a Student Participation Agreement with their high school, parents and
employer.
3.
Maintain good standing at both school and the job as a requirement for continuation
in the program.
4.
Participate in regular school discussions to review progress and resolve problems.
5.
Be accepted for employment with a participating employer and meet all work
requirements of the employer for a youth apprentice employee.
6.
Conform to the structured work/training schedule identified in their Employment
Training Agreement.
7.
Complete high school diploma requirements in a timely fashion through integrated
academic and technical curricula approved by the school board in cooperation with
the VTAE and employer.
-15-
JUL-24-'92
FRI
10:21
IV.
Expected Outcomes and Program Benefits
A.
For Employers:
1.
Improve their ability to meet long term employee needs through contact with potential
apprentices/employees. Improve access to qualified young people before they leave
high school.
2.
Assist in the design of preparatory training of high school students who may enter their
apprenticeship program.
3.
Expand training in their business and industry.
4.
Be registered as a youth apprenticeship training site by the state.
5.
Have the opportunity to assess a student's skills and potential prior to the major
commitment of an apprenticeship salary and permanent employment.
6.
Have access to professional educators and apprenticeship representatives who are
supervising the youth apprentices.
B.
For Students:
1.
Be exposed to more extensive career development planning and smooth the transition
from school to work or other training.
2.
Be paid while receiving structured work-based training for high skill career options
(including apprenticeships).
3.
Have classroom instruction integrated with training received on-the-job.
4.
Receive training from a skilled professional(s) in an actual work situation.
5.
Upon successful completion of the program, receive both a high school diploma and a
certificate of academic and occupational proficiency.
6.
Meet high school graduation requirements by participating in the youth apprenticeship
program.
7.
Have available testing, evaluation, counseling and job placement services.
8.
Have expanded career options because they have the necessary knowledge and skills
to enter an apprenticeship, a technical college program, a baccalaureate program or
directly into work.
9.
Acquire critical thinking, problem solving, decision making, team work and technical
and communication skills that will improve their functioning in future employment.
10.
Participate in a school program that is interesting, enjoyable and challenging.
JG/yapprop-appremt/1/25/92
-16-
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft One
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
JULY 27, 1992
2:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
I can't tell you what a pleasure it is to be here. For any
sports fan, it's a thrill to be at the birthplace of America's
sports trading cards. And for me it's a little humbling, too. I
don't dare ask you how many hundreds of George Bush cards you
have to trade to get even one Michael Jordan.
I've come here to talk a little bit about our future
about the kind of nation we want for us
...
and our children.
The world has undergone positive change the past few years.
Today our kids worry about the usual things
...
about school,
friends, about such earth-shattering questions as
...
where can I
get an (Magic Johnson) "exclusive edition" card. But I can tell
you one thing they don't worry about
the specter of nuclear
war.
Today
America is safer than before. Safer than we were
a decade ago. Safer than we were a year ago. Safer than we were
just a few months ago
when I sat down with Boris Yeltsin and
eliminated nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
2
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is even more
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Neenah
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
3
If you look at almost every important issue we face
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plans
boiled down to creating some new kind of government apparatus
like a Pentagon for child care.
I fought for a different approach
and
won.
Our landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home
or in church.
When it comes to raising children
I say: trust the
parents.
What about our education system? To renew America we must
renew our schools
we all know this
but money alone won't
do it. The U.S. already spends more on education per student
than almost any other country; but our kids still trail most of
the industrial world in crucial areas like math and science
education. Again: a lot of ideas floating around, most of them
to pump more tax money into the same system.
4
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. If I say: Let parents, not the government, choose their
children's schools.
One more example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-seven million Americans
a population larger than the
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it
and tax incentives so that small
businesses can pool their resources and cover more of their
people. // When it comes to deciding what doctor? What hospital?
I say
trust the people to choose.
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
A good example of what government can do is starting right
here at Outlook. Last April, I challenged the nation's governors
5
to join me in helping our young people enter the world of work.
I am particularly concerned about teenagers
who want to work
want to learn a skill
...
but may be tempted to drop out of
school. True to form, Gov. Tommy Thompson reached out to these
young people. His apprenticeship program will encourage them to
complete a sound high-school education, while getting on-the-job
training at companies like Outlook. This program connects
education with the real world of work. Government can help make
that connection -- and I salute Gov. Thompson for helping me
create a workforce that's up and ready for the challenges of the
next century. //
So I believe we can give Americans the tools
and then
its a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
isn't just bad judgment; it could be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars.
The last time interest rates were this low
the Brady Bunch
wasn't even on television. Despite all the stories about our
problems
our workers are still the most productive in the
6
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, whether you like it or not, you already work 126 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 127?
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
talked about government "of the people, by the people, for the
people. " I think most Americans agree with him. But there are
others who keep wanting to say
government of the people, by
the people, on the people.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to jumpstart the
economy, help us over the bumps in the road.
I wanted to free up the energies of our entrepreneurs with
tax cuts; to give a $5,000 break to young couples trying to buy
their first home. Here in Wisconsin, that $5,000 would have been
equal to nine months of mortgage payments.
If they had passed it when I asked them to
we could have
created 500,000 jobs.
7
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back. I told them to try again. And I'm
still waiting. And I'm beginning to get the distinct impression
that the only way to get rid of the deadlock in Washington
is to clean a little deadwood in Congress.
Send me a new Congress that will work with me
and I'll
get this economy moving faster than Desmond Howard.
It all comes down to a question of trust. I trust you to
spend and save your money more wisely than any budget planner in
Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
moratorium on federal regulations -- to untangle the red tape
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
workers being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
8
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
without
this particular hard hat regulation.
But can you imagine what might have happened
if these
enterprising regulator guys had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first. " But if you
look closely
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you. " I trust the people.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- no government ever created a single job
(although it did keep Johnny Carson around for 30 years.)
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
# #
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft One
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
JULY 27, 1992
2:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
I can't tell you what a pleasure it is to be here. For any
sports fan, it's a thrill to be at the birthplace of America's
sports trading cards. And for me it's a little humbling, too. I
don't dare ask you how many hundreds of George Bush cards you
have to trade to get even one Michael Jordan.
I've come here to talk a little bit about our future
about the kind of nation we want for us
and our children.
The world has undergone positive change the past few years.
Today our kids worry about the usual things
about school,
friends, about such earth-shattering questions as
...
where can I
get an (Magic Johnson) "exclusive edition" card. But I can tell
you one thing they don't worry about
the specter of nuclear
war.
Today
America is safer than before. Safer than we were
a decade ago. Safer than we were a year ago. Safer than we were
just a few months ago
when I sat down with Boris Yeltsin and
eliminated nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
2
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is even more
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Neenah
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
3
If you look at almost every important issue we face
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plans
boiled down to creating some new kind of government apparatus
like a Pentagon for child care.
I fought for a different approach
and won. Our landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home
or in church.
When it comes to raising children
I say: trust the
parents.
What about our education system? To renew America we must
renew our schools
we all know this
but money alone won't
do it. The U.S. already spends more on education per student
than almost any other country; but our kids still trail most of
the industrial world in crucial areas like math and science
education. Again: a lot of ideas floating around, most of them
to pump more tax money into the same system.
4
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. " I say: Let parents, not the government, choose their
children's schools.
One more example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-seven million Americans
a population larger than the
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it
and tax incentives so that small
businesses can pool their resources and cover more of their
people. // When it comes to deciding what doctor? What hospital?
I say
trust the people to choose.
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
A good example of what government can do is starting right
here at Outlook. Last April, I challenged the nation's governors
5
to join me in helping our young people enter the world of work.
I am particularly concerned about teenagers
who want to work
want to learn a skill
but may be tempted to drop out of
school. True to form, Gov. Tommy Thompson reached out to these
young people. His apprenticeship program will encourage them to
complete a sound high-school education, while getting on-the-job
training at companies like Outlook. This program connects
education with the real world of work. Government can help make
that connection -- and I salute Gov. Thompson for helping me
create a workforce that's up and ready for the challenges of the
next century. /
So I believe we can give Americans the tools
and then
it's a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
isn't just bad judgment; it could be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars.
The last time interest rates were this low
the Brady Bunch
wasn't even on television. Despite all the stories about our
problems
our workers are still the most productive in the
6
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, whether you like it or not, you already work 126 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 127?
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
talked about government "of the people, by the people, for the
people. I think most Americans agree with him. But there are
others who keep wanting to say
...
government of the people, by
the people, on the people.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to jumpstart the
economy, help us over the bumps in the road.
I wanted to free up the energies of our entrepreneurs with
tax cuts; to give a $5,000 break to young couples trying to buy
their first home. Here in Wisconsin, that $5,000 would have been
equal to nine months of mortgage payments.
If they had passed it when I asked them to
...
we could have
created 500,000 jobs.
7
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back. I told them to try again. And I'm
still waiting. And I'm beginning to get the distinct impression
that the only way to get rid of the deadlock in Washington
is to clean a little deadwood in Congress.
Send me a new Congress that will work with me
and I'll
get this economy moving faster than Desmond Howard.
It all comes down to a question of trust. I trust you to
spend and save your money more wisely than any budget planner in
Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
moratorium on federal regulations -- to untangle the red tape
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
workers being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
8
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
without
this particular hard hat regulation.
But can you imagine what might have happened
if these
enterprising regulator guys had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first. " But if you
look closely
...
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you." I trust the people.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- no government ever created a single job
(although it did keep Johnny Carson around for 30 years.)
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
#
#
(Provost/Ferguson/Grossman)
July 24, 1992
WISCONSIN
Draft One
PRESIDENTIAL REMARKS: OUTLOOK GRAPHICS
NEENAH, WISCONSIN
JULY 27, 1992
2:00 PM
Thank you and good afternoon everyone.
(Acknowledgments)
I can't tell you what a pleasure it is to be here. For any
sports fan, it's a thrill to be at the birthplace of America's
sports trading cards. And for me it's a little humbling, too. I
don't dare ask you how many hundreds of George Bush cards you
have to trade to get even one Michael Jordan.
I've come here to talk a little bit about our future
about the kind of nation we want for us
and our children.
The world has undergone positive change the past few years.
Today our kids worry about the usual things
about school,
friends, about such earth-shattering questions as
where can I
get an (Magic Johnson) "exclusive edition" card. But I can tell
you one thing they don't worry about
...
the specter of nuclear
war.
Today
America is safer than before. Safer than we were
a decade ago. Safer than we were a year ago. Safer than we were
just a few months ago when I sat down with Boris Yeltsin and
eliminated nuclear weapons.
Now that we have changed the world
it is high time to
change America. Time to turn our attention to pressing
challenges like how to give a pink slip to our slow-growth
2
economy. How to make our families more like the Waltons than the
Simpsons. And how to take back our streets from the crack
dealers and the criminals.
This election year
we are told
is about how we can
change to meet these challenges. But this election is not just
about change, because change has a flip side. It's called trust.
When you get down to it, this election will be like every other
in history. When you go into that voting booth and pull the
curtain behind you: "trust" matters.
And that's the way it should be. Many times, in the White
House late at night, the phone rings. Usually it's a young aide
double-checking the next day's schedule. But occasionally, it's
another voice -- more serious, solemn -- carrying news of a coup
in a powerful country, or the invasion of an ally halfway around
the world. The American people need to know that the man who
answers the phone has the experience, the seasoning, to do the
right thing.
That's trust in the traditional sense. But people who've
spent their lives in government forget that trust is even more
than that. I'm a Texan -- raised my children there, built my
business. I see America as an endless tapestry of people,
families and communities. Our heartbeat can be felt in places
like Neenah
not Washington. And so I believe in a simple
philosophy: to lead a great nation you must first trust the
people you lead.
3
If you look at almost every important issue we face
you
see a clear choice in philosophy
a choice between those who
put their faith in average Americans
and those who put their
faith in government.
Let me explain what I mean. Starting with the basics --
home and family.
The most difficult question many parents face is
"who
will care for the kids while we're working?" A few years ago
Washington wanted to help
but the idea was to rock the
cradle with the heavy hand of the bureaucracy. All the plans
boiled down to creating some new kind of government apparatus
like a Pentagon for child care.
I fought for a different approach
and won. Our landmark
legislation allows parents
not the government
to decide
whether your children are cared for in a school
a relative's
home
or in church.
When it comes to raising children
I say: trust the
parents.
What about our education system? To renew America we must
renew our schools
we all know this
but money alone won't
do it. The U.S. already spends more on education per student
than almost any other country; but our kids still trail most of
the industrial world in crucial areas like math and science
education. Again: a lot of ideas floating around, most of them
to pump more tax money into the same system.
4
I say try something different. Open up schools to
competition
and trust you to decide whether you want your
kids to learn in a public school, a private school or religious
school.
When it comes to education
again I say: "trust the
parents. " I say: Let parents, not the government, choose their
children's schools.
One more example: health care. We have the finest quality
health care in the world -- but costs are through the roof.
Thirty-seven million Americans
a population larger than the
state of California
are without coverage today, and millions
more are worried about losing the coverage they have.
We have to change the system. Some propose versions of
socialized medicine
letting the federal government play
doctor.
I say
take a different way. Give tax credits so people
without coverage can buy it and tax incentives so that small
businesses can pool their resources and cover more of their
people. // When it comes to deciding what doctor? What hospital?
I say
trust the people to choose.
The point is not to let people fend for themselves.
Americans are a generous people; and government must never shirk
its responsibilities. But programs have to give people a hand-
up
and trust human ingenuity to take it from there.
A good example of what government can do is starting right
here at Outlook. Last April, I challenged the nation's governors
5
to join me in helping our young people enter the world of work.
I am particularly concerned about teenagers
who want to work
want to learn a skill
but may be tempted to drop out of
school. True to form, Gov. Tommy Thompson reached out to these
young people. His apprenticeship program will encourage them to
complete a sound high-school education, while getting on-the-job
training at companies like Outlook. This program connects
education with the real world of work. Government can help make
that connection -- and I salute Gov. Thompson for helping me
create a workforce that's up and ready for the challenges of the
next century //
So I believe we can give Americans the tools
and then
it's a matter of trust -- trusting Americans to make their own
choices. And when it comes to the most pressing issue of this
election year -- revving up our economy -- forgetting this idea
isn't just bad judgment; it could be downright dangerous.
The revolutions of the past few years herald a new era of
global economic competition, with free markets from Siberia to
Santiago.
Can the U.S. compete
now that everyone is playing our
game? I know we can. Keep in mind
we are the largest
economy in the world. Inflation
the Willie Sutton who robs
the middle class of dreams
has been put safely behind bars.
The last time interest rates were this low
the Brady Bunch
wasn't even on television. Despite all the stories about our
problems
our workers are still the most productive in the
6
world -- more productive than the English, the Germans, the
Japanese.
But while our economy is growing
it must grow faster.
The question is: how do we do it? The other side suggests a
simple two-part solution. First, jack up government spending!
And then: raise taxes!
Now as you evaluate their idea, keep this in mind. Here in
Wisconsin, whether you like it or not, you already work 126 days
just to pay your taxes -- before you earn a single dime to spend
on your family. I don't think I have to ask -- does anyone want
to go for 127?
All this talk of spending and taxes causes me to wonder
if the other side is a little hard of hearing. Abraham Lincoln
talked about government "of the people, by the people, for the
people. " I think most Americans agree with him. But there are
others who keep wanting to say
government of the people, by
the people, on the people.
They're hard to dissuade. I'll give you a great example.
In January I proposed a common-sense plan to jumpstart the
economy, help us over the bumps in the road.
I wanted to free up the energies of our entrepreneurs with
tax cuts; to give a $5,000 break to young couples trying to buy
their first home. Here in Wisconsin, that $5,000 would have been
equal to nine months of mortgage payments.
If they had passed it when I asked them to
we could have
created 500,000 jobs.
7
So I sent my plan up to Capitol Hill. And I probably don't
have to tell you what I got back: a raft of new spending and --
you guessed it -- new taxes.
I sent their plan back. I told them to try again. And I'm
still waiting. And I'm beginning to get the distinct impression
that the only way to get rid of the deadlock in Washington
is to clean a little deadwood in Congress.
Send me a new Congress that will work with me
and I'll
get this economy moving faster than Desmond Howard.
It all comes down to a question of trust. I trust you to
spend and save your money more wisely than any budget planner in
Washington.
Fortunately, I've been able to do some things on my own to
try and jump start the economy. Earlier this year, I announced a
moratorium on federal regulations -- to untangle the red tape
that ties so many businesses in knots.
Is it necessary? Listen to this story.
The time had come recently for a government agency to update
it's rules on hard hats. That's right: hard hats. And someone
in that agency stumbled upon a potential national crisis ---
workers being infected from hard hats. The alarms went off. The
bureaucratic blood boiled. One small fact was overlooked. There
wasn't a single documented case, anywhere in the United States,
of anyone getting infected from a hard hat.
That didn't deter the bureaucrat. So with the best of
intentions, the rule was written: every hard hat must be
8
disinfected before one worker passed it to another. Estimated
cost to business: $60 million a year. Measurable benefit:
slightly less.
Luckily, this story has a happy ending, but only because we
were there to give it one. We found the regulation before it hit
the books, and said: we think America can survive
without
this particular hard hat regulation.
But can you imagine what might have happened
if these
enterprising regulator guys had made their way into the vast,
unregulated territory of lunch pails and thermos bottles?
You'll say this is all common sense, and I agree. But
there's a certain type of person attracted to government for whom
the word "trust" has a strange meaning. Most of them have spent
their lives in government, and don't have much experience in the
real world.
They say they want to
"put people first. "
But
if
you
look closely
the people they put first are all on a
government payroll.
A trustworthy leader of a free people must have the
confidence to say: "I trust you. " I trust the people.
And you must decide who you trust -- who has the
experience, the ideals and ideas -- to find that delicate
balance.
It must be someone who understands the essential fact of
American prosperity -- no government ever created a single job
(although it did keep Johnny Carson around for 30 years.)
9
Yes, America will change, just as we have changed the world.
The question now is: Who will change America for the better?
Trust me when I tell you this: it won't be a team of economists
from Harvard, or a gaggle of social scientists from a Washington
think tank.
If you want to know who's going to change America -- look
around you. It's going to be the guy who works an extra shift
every week so his son can go to the school of his choice. It's
going to be the small businesswoman who takes a risk on a new
product. The computer hacker working in a lonely garage, the
merit scholar from South Central L.A., the entrepreneur with a
future as big as his dreams.
There's your answer: The American people are going to change
America.
But only if they have a government with the wisdom to know
its own limits, with a leadership who knows where the true
American imagination lies. Countries around the world have at
long last understood the power of trusting the people. America
will change by reaffirming the lesson it has taught the world --
by trusting a leader who trusts you.
Thank you and God bless you.
#
#
OUTLOOK GRAPHICS IN NEENAH WISC
--co prints boxes, baseball cards, football cards, special Desert
Storm Cards (pictures of POTUS), will present POTUS with a framed
sheet of the Desert Storm Cards
--contact: Pres. Dave Erdmann or asst John Wiley (414) 722-2333
--Fox Cities Chamber of Commerce: Greg Hunt (414) 734-7171
--Scot Schmuoller from Wisc Dept of Admin overseeing the
apprenticeship (608)267-2704 or Jim Milslagle of Banta CO.
(414) 722-7777.
--youth apprent prog : take kids from vocational and technical
schools, not going to college, etc, have them working in places
like this 3 days a week then going to votech 2 days a week
--problem: they're not even starting yet, kids starting to train
on machines early
Can't say it's already been a success
need
to talk about its promise.
--this area has had a lot of growth
but people they're selling
to are cutting back
600 264-6181 264
Rick Berg
JUL-23-1992 10:58
OUTLOOK GRAPHICS
414 727 8529
P.003/013
THE
STORYCARDS
New line features
Berenstain Bears
By David Horst
Post-Crescont stall writer
NEENAH - When Outlook Graphics decided to move from
printing trading cards for other companies to developing a line of its
own, it decided to go with a proven champion.
Da Bears.
We' not talking about Ditka and Neal Anderson and the Fridge.
These are the real showcase players - the Berenstain Bears.
The new line of "story cards" has brought the wildly successful
Berenstain Bears characters from the pages of children's books to
the craze of trading cards. They began appearing in stores locally
within the past couple of weeks and are to go on sale nationwide by
early August.
Stories of the forthright and lovable bruin family unfold on a
series of 72 cards sold in six different packages. The full-color
illustrations of creators Jan and Stan Berenstain adorn each side of
the cards along with the text of the stories with a strong moral
message.
Borrowing a device from the old Saturday matinee serials, stories
are continued in the next pack, with a new story beginning in mid-
pack and continuing again.
"It is a lot more than just a trading card," said Cindy Baumgartner,
marketing representative for Ken-Wis Inc., the Outlook subsidiary
marketing the cards.
The Berenstain Bears story cards are not intended to be traded
like sports collector cards. They are packaged in sequence, unlike
the random packing of trading cards. Each of the six packets is
identified by number, and in buying the full set the young customers
get four complete stories. Baumgartner said that while other
children's story characters have appeared on cards, such as
Disney's The Little Mermaid, none has been packaged in this
sequential, storytelling manner.
The Bears were a high-profile choice for Outlook's first attempt at
designing and marketing its own card line. Jan and Stan Berenstain
have written and illustrated 83 bear books, having sold more than
150 million copies. Their eager readers and their parents bought 22
million last year alone, for sales of $50 million. The Bears have been
a fixture on Publishers Weekly's list of children's best sellers.
Outlook publishes the cards through a licensing agreement with
King Features, New York.
"They're wholesome stories. It's a good product to be involved in,"
said Outlook president David Erdmann.
Baumgartner, in test marketing the cards this spring, observed
children playing with them at Clayton Elementary School in
Neenah and Bethel Lutheran in Menasha.
She said the children seemed to find the cards more personal than
a book. The teachers mixed up the numbered cards to test the
children's sequencing abilities and also challenged them to predict
how a story would end in the succeeding pack. Baumgartner
described the cards as having a lot of "playability."
Packages two through six contain a sheet of Berenstain Bear
stickers with a how-to-draw lesson on the back. The first pack
includes a plastic membership card for Bear Country observed with a place
saw
Extended Page
3.1
for the child to sign. One of the pupils Baumgartner observed saw
the card and said, "It's my first charge card."
Papa Bear could help out some of his get-rich-quick schemes with
the techniques employed in marketing the line of cards. The packs
also include a pamphlet containing one of the rules of: "How to get
along with your fellow bear." On the flipside is an order blank for
Bears paraphernalia such as videos, personalized lunch bags and
Berenstain Bears popcorn bowl.
The cards carry a suggested retail price of 99 cents per pack,
though Baumgartner said they are likely to retail in places for 89 or
79 cents. Badger Periodicals will be distributing them to about 400
stores locally.
Erdmann said work is under way on a second series of Berenstain
Bears cards, possibly including stories written exclusively for the
cards, and and special gift sets will be available for Christmas.
Outlook is exploring the possibilities for other licensing agreements
as well.
JUL-23-1992 10:59
OUTLOOK GRAPHICS
414 727 8529
P.004/013
Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE E-LONG-TERM DEBT
Long-term debt consists of the following (in thousands):
On September 1, 1990, Outlook Label entered into an
agreement for industrial development bond financing
1991
1990
in the aggregate principal amount of $4,000,000 with
Term loans
$
-
$6,005
annual principal installments of $400,000 commenc-
Revolving loan
-
1,600
ing September 1, 1991, with interest at a floating rate
Industrial development bonds
4,835
2,245
determined by a remarketing agent (5.75% at May 31,
Various notes
-
20
1991). As of May 31, 1991, $4,000,000 was outstanding.
4,835
9,870
The revolving loan and the industrial development
Less current maturities
426
2,865
bonds are collateralized by the Company's accounts
$4,409
$7,005
receivable, inventories, property, plant and equip-
ment and the common stock of Outlook Label.
TERM LOANS
The loans were payable in monthly installments
The revolving loan and the industrial development
ranging from $13,000 to $55,000 including interest
bond obligations are subject to the terms of certain
ranging from 11.1% to prime plus .5%. These loans
loan agreements which contain provisions setting
were paid in full during May 1991.
forth, among other things, working capital, net worth
and debt to equity requirements, and restrictions on
REVOLVING LOAN
property and equipment additions, loans, invest-
The Company has a $3,750,000 revolving credit
ments, other borrowings, management consulting
agreement expiring September 12, 1991. Borrowings
services, and acquisitions and redemptions of the
thereunder bear interest at .5% over prime. The out-
Company's stock or the issuance of stock except for
standing balance was paid in full during May 1991.
cash. Additionally, the Company may not pay cash
INDUSTRIAL DEVELOPMENT BONDS
dividends without the prior consent of its lenders.
On April 1, 1980, the Company entered into an agree-
The Company has obtained waivers for certain past
ment for industrial development bond financing in
actions which otherwise would have constituted vio-
the aggregate principal amount of $650,000 with
lations of covenants under the loan agreements. The
interest ranging from 9.2% to 9.5%, due in annual
waivers relate to limitations on additional indebted-
principal installments of $55,000 through April 1992.
ness and investments in other entities, capital
These bonds were retired during May 1991.
expenditure limitations, prohibitions on repurchase
of stock, limitations on the purchase or the sale and
On June 1, 1989, the Company entered into an
leaseback of equipment, the issuance of shares of
agreement for industrial development bond financing
stock and prepayments of outstanding debt.
in the aggregate principal amount of $1,300,000 with
annual principal installments ranging from $74,000
At May 31, 1991, future maturities of long-term debt
to $321,000 commencing on June 1, 1991, with inter-
were as follows (in thousands):
est at 98% of the prime rate through June 1, 1999.
1992
$ 426
These bonds were retired during May 1991.
1993
429
On June 1, 1989, the Company entered into an
1994
432
agreement for industrial development bond financing
1995
436
in the aggregate principal amount of $835,000 with
1996
440
annual principal installments ranging from $26,000
Thereafter
2,672
to $522,000 commencing on June 1, 1991, with
Total maturities
$4,835
interest at 10% through June 1, 1994, and then at
98% of the prime rate through June 1, 1999. As of
both May 31, 1991 and 1990, $835,000 was outstanding.
22
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Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE F-SYOCKHOLDERS' EQUITY
NOTE H-INCOME TAXES
On August 2, 1990, the stockholders adopted
The provision for income taxes consists of the
Restated Articles of Incorporation of the Company
following (in thousands):
which increased the authorized number of shares of
1991
1990
1989
Common Stock from 2,000,000 to 15,000,000 shares.
Also authorized were 1,000,000 shares of Cumulative
Currently payable
Preferred Stock. The Board of Directors declared a
Federal
$1,288
$ 939
$206
2.75-for-1 stock split effected in the form of a 175%
State
312
223
45
stock dividend payable with respect to shares of
1,600
1,162
251
Common Stock outstanding on August 3, 1990, with
Deferred (related to)
resulting fractional interests paid in cash. A 3-for-2
Tax over book depreciation
394
436
199
stock split effected in the form of a 50% stock divi-
Capital lease-tax
199
-
-
dend was distributed to stockholders of record on
Installment sale
(10)
(51)
(25)
September 1, 1989. An amount equal to the par value
Allowance for doubtful
of the common shares issued was transferred from
accounts
(5)
(34)
(22)
additional paid in capital to the Common Stock
Inventory capitalization
(51)
3
(18)
account. These transfers have been reflected in the
Other, net
(15)
(11)
(11)
consolidated statement of stockholders' equity at
512
343
123
May 31, 1938. All share and per share amounts
included in the financial statements and notes are
$2,112
$1,505
$374
based on the increased number of shares giving
retroactive effect to these stock splits.
The effective tax rates for the years ended May 31,
1991, 1990 and 1989, were 38.6%, 38.5% and 36.4%
In May 1991, the Company completed an initial public
respectively. The variation between the effective rate
offering in which it issued 1,561,372 shares of Common
and the statutory federal income tax rate is a result
Stock at 3 price to the underwriters of $10.69 per
of the following, expressed as a percentage of pre-tax
share. The proceeds of the offering to the Company,
income:
after deducting all associated costs, were $16,211,000.
1991
1990
1989
Statutory federal
NOTE G-EMPLOYES BENEFIT PLANS
income tax
34.0%
34.0%
34.0%
State income taxes
EMPLOYEE STOCK PURCHASE PLAN
net of federal income
Effective February 1990, the Company's employee
tax benefit
5.2
5.2
5.2
stock purchase plan was suspended. Under the plan,
39.2
39.2
39.2
employees were given the opportunity to purchase
shares of the Company's Common Stock at prices
Increase (decrease) in
income taxes
determined by the Board of Directors and approved
General business credits
by the stockholders. The purchase price was
(.2)
(.8)
(2.1)
Other
(.4)
.1
intended to reflect the fair value of the Company's
(.7)
stock at the time of the purchase.
38.6%
38.5%
36.4%
EMPLOYEE SAVINGS PLAN
The Company offers a 401 (k) savings plan for all
employees that meet certain eligibility requirements.
Employee contributions to the plan are made
through payroll deductions. In addition, the
Company matches 25% of the first 6% of each
employee's compensation deferral. Employer match-
ing contributions under the 401(k) plan for the years
ended May 31, 1991, 1990 and 1989 totaled $51,000,
$34,000 and $23,000, respectively.
23
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Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE I-STOCK OPTIONS
Company's other stock option plans except that any
stock options outstanding under such plans shall con-
In the fiscal year ended May 31, 1985, the stockhold-
tinue in effect until they have been exercised or have
ers approved an incentive stock option plan under
expired or otherwise terminated. No options had been
which 84,662 shares of Common Stock were available
granted under the 1990 Plan as of May 31, 1991.
for issuance. Options were granted at market value
on the date of grant, but not less than the employee
Options outstanding under the Company's stock
stock purchase plan price. The options were exercis-
option plans have been considered in the computa-
able from the date of grant and terminate three years
tion of the weighted average number of shares
from date of grant.
outstanding used to calculate net earnings per share.
Transactions for the last three fiscal years are as follows:
1991
1990
1989
NOTE J-COMMITMENTS
Options outstanding,
At May 31, 1990, the Company conducted a portion of
beginning of year
4,125
12,375
16.500
its operations in leased facilities under an operating
Granted
-
-
-
lease which would have expired in October 1991. In
Exercised
(4,125)
(8,250)
I
November 1990, a new operating lease was executed
Expired
-
- (4.125)
which expires in November 1998. The Company is
Options outstanding,
responsible for all taxes, insurance and maintenance
end of year
-
4,125 12.375
costs and has an option to purchase the property
which expires November 30, 1992. The Company also
Option price range
$2.30 $1.94-
leases equipment under a noncancellable operating
at May 31
$2.30
lease which expires in December 1996.
In April 1990, the Company acquired certain addi-
On August 17, 1989, the stockholders approved an
tional equipment, at a cost of $1,162,000, and agreed
incentive stock option plan under which 55,000
with a financial institution to a sale and leaseback of
shares of Common Stock were available for issuance.
that equipment. The terms of this sale and leaseback
Options were granted at market value as set for the
arrangement were finalized, and the transaction con-
employee stock purchase plan plus $.18. Options are
summated, in August 1990. The Company did not
exercisable on the date of grant and terminate three
realize or recognize any gain or loss resulting from
years from date of grant.
the transaction. The operating lease expires in
August 1997.
Transactions are as follows:
1991
1990
During the year ended May 31, 1991, the Company
acquired certain additional equipment at a total cost
Options outstanding,
of $3,926,000. On March 21, 1991, the equipment was
beginning of year
48,125
-
sold at its cost and is being leased back by the
Granted
-
4S,125
Company through March 1995. The Company did not
Exercised
-
-
realize or recognize any gain or loss resulting from
Expired
4,125
-
the transaction.
Options outstanding,
end of year
44,000
48,125
The following is a schedule, by fiscal years, of the
rental payments due under these leases, as of May 31,
Option price
$3.09
$3.09
1991, (in thousands):
1992
$1,329
On August 2, 1990, the stockholders also approved
the 1990 Stock Option Plan (the "1990 Plan"). Options
1993
1,313
1994
1,313
may be granted under the 1990 Plan through May 31,
2000, to key salaried employees, including officers.
1995
3,162
The 1990 Plan provides for a maximum issuance of
1996
631
200,000 shares of Common Stock. The exercise price
Thereafter
820
for options granted may not be less than the quoted
Total
$8,568
market price on the date of the grant. Options may
not be exercised for at least six months after the
Rent expense for the years ended May 31, 1991, 1990 and
date of the grant except in the event of death or dis-
1989, was $705,000, $330,000 and $52,000 respectively.
ability. The 1990 Plan supersedes and replaces the
The Company had agreements to purchase additional
equipment for approximately $1,728,000 at May 31, 1991.
24
JUL-23-1992 11:01
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414 727 8529
P.007/013
Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE K-BUSINESS ACQUISITION
NOTE L-MAJOR CUSTOMERS
In February 1989 the Company acquired Outlook
During the years ended May 31, 1991, 1990 and 1989,
Label, effective for financial reporting purposes as of
the Company had sales to major customers. A major
January 1, 1989. Certain stockholders and directors
customer is defined as a customer that accounts for
of the Company were also noncontrolling stockholders
more than 10% of a company's net sales. Sales to
and directors of Outlook Label and held interests
these customers amounted to the following percent-
in the related partnership referred to below. The
ages of the Company's net sales:
stockholders of Outlook Label received 536,245
1991
1990
1989
shares of the Company's Common Stock in exchange
for all of the outstanding shares of Outlook Label.
Impel Marketing
23%
0%
0%
In addition, the Company purchased certain assets
Fleer Corp.
15
5
0
and assumed certain liabilities from a partnership,
Kellogg Company
1
15
22
related through common ownership to Outlook
National Football League
Label, for $250,000.
Properties, Inc.
0
12
0
The acquisition was accounted for as a purchase and
Banta Corporation
5
9
17
the excess of the cost over the fair value of the net
assets acquired was $585,000, which is being amor-
tized over a period of 20 years using the straight-line
method. The consolidated results of operations
include the operations of Outlook Label from
January 1. 1989.
The unaudited consolidated results of operations on
a pro forma basis as though Outlook Label had been
acquired on June 1, 1988, are as follows:
Pro forma
year ended
May 31, 1989
Net sales (in thousands)
$19,824
Net earnings (in thousands)
$ 534
Net earnings per share
$.15
25
JUL-23-1992 11:02
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414 727 8529
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Outlook Graphics Corp. and Subsidiary
STATEMENT OF MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTS
The consolidated financial statements and accompany-
Oversight of management's financial reporting and
ing information were prepared by and are the
internal accounting control responsibilities is
responsibility of management. The statements were pre-
exercised by the Board of Directors, through an
pared in conformity with generally accepted accounting
Audit Committee which consists solely of outside
principles and, as such, include amounts that are based
directors. The committee meets periodically with
on management's best estimates and judgments.
financial management and the independent
accountants to ensure that each is meeting its
The internal control systems are designed to provide
responsibilities and to discuss matters concerning
reliable financial information for the preparation of
auditing, internal accounting control and financial
financial statements, to safeguard assets against loss
reporting. The independent accountants have free
or unauthorized use and to ensure that transactions
access to meet with the Audit Committee without
are executed consistent with company policies and
management's presence.
procedures. Management believes that existing inter-
nal accounting control systems are achieving their
objectives and that they provide reasonable assurance
concerning the accuracy of the financial statements.
clovid L. Edua
Joffrey P. Stip
David L Erdmann
Jeffrey P. Stilp
Chairman and President
Treasurer and Controller
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Stockholders
Outlook Graphics Corp. and Subsidiary
We have audited the accompanying consolidated bal-
audit includes examining, on a test basis, evidence
ance sheets of Outlook Graphics Corp. (a Wisconsin
supporting the amounts and disclosures in the finan-
corporation) and Subsidiary as of May 31, 1991 and
cial statements. An audit also includes assessing the
1990, and the related consolidated statements of
accounting principles used and significant estimates
earnings, stockholders' equity and cash flows for
made by management, as well as evaluating the over-
each of the three years in the period ended May 31,
all financial statement presentation. We believe our
1991. These financial statements are the responsibil-
audits provide a reasonable basis for our opinion.
ity of the Company's management. Our responsibility
is to express an opinion on these financial state-
In our opínion, the financial statements referred to
ments based on our audits.
above present fairly, in all material respects, the con-
solidated financial position of Outlook Graphics
We conducted our audits in accordance with gener-
Corp. and Subsidiary as of May 31, 1991 and 1990, and
ally accepted auditing standards. Those standards
the consolidated results of their operations and their
require that we plan and perform the audit to obtain
consolidated cash flows for each of the three years in
reasonable assurance about whether the financial
the period ended May 31, 1991, in conformity with
statements are free of material misstatement. An
generally accepted accounting principles.
Grant Thornton
Appleton, Wisconsin
June 27, 1991
26
JUL-23-1992 11:02
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QUARTERLY DATA (UNAUDITED)
The following table sets forth unaudited selected quarterly financial information for each of the two most recent
fiscal years:
Quarter
First
Second
Third
Fourth
Total
Fiscal Year Ended May 31,
1991
(in thousands, except per share amounts)
Net sales
$8,813
$9,989
$12,344
$12,129
$43,275
Gross profit
2,497
2,424
3,235
3,712
10,868
Net earnings
735
701
1,011
907
3,354
Earnings per share
.21
-20
.29
.23
.92
1990
Net sales
$7,465
$9,443
$7,957
$6,900
$31,765
Gross profit
2,249
2,672
2,234
1,597
8,752
Net earnings
674
792
619
324
2,409
Earnings per share
.20
.23
:18
.09
.69
MARKET PRICES AND DIVIDENDS
The Company's Common Stock has been quoted on the NASDAQ National Market System since the Company's
initial public offering of Common Stock, at $11.50 per share, on April 24, 1991. Prior to that date, there was no
established public trading market for the Common Stock. The following table sets forth high and low sales prices
as reported on the NASDAQ National Market System since April 24, 1991, for the indicated fiscal year periods.
High
Low
Fiscal 1991: Fourth Quarter (April 24, 1991 to May 31, 1991)
$13%
$10M
Fiscal 1992: First Quarter (June 1, 1991 to August 9, 1991)
$13%
$10%
The Company has not paid any cash dividends since its inception. The Company presently intends to employ
its earnings in the continued development and expansion of its business and does not expect to pay any cash
dividends in the foreseeable future. The Company may not pay cash dividends under various existing lending
agreements without the lenders' consents so long as such agreements remain outstanding; for a description of
dividend restrictions, see Note E of Notes to Consolidated Financial Statements. Future dividend policy will
depend on the Company's earnings, capital requirements, borrowing agreements, financial conditions and
other factors considered relevant by the Board of Directors.
As of August 9, 1991, there were 754 shareholders of record of Common Stock.
27
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DIRECTORS
Wayne G. Beattie, 42, (1)
Roger G. Hathaway, 63 (1)(2)(3)
Charles E. Thompson, 47 (1)
Secretary and Salesperson
Retired Vice President-
Executive Vice President
Outlook Graphics Corp.
Human Resources
Outlook Graphics Corp.
Neenah Foundry Company
James L. Dillon, 46, (2)
(manufacturer of construction
A. John Wiley, Jr., 48 (4)
Accountant
and industrial castings)
Salesperson
DiRenzo, Simonis & Miller,
Outlook Graphics Corp.
Certified Public Accountants
George P. Mueller, 69 (2)(3)(4)
Chairman
COMMITTEES
David L. Erdmann, 48, (1)
Integrated Paper Services, Inc.
OF THE BOARD
Chairman and President
(pulp and paper making services)
(1) Executive
Outlook Graphics Corp.
(2) Audit
Lawrence C. Silton, 49 (2)(3)
(3) Compensation
Attorney
(4) Alternate member of
Patterson, Jensen, Wylie, Silton
Executive Committee
& Seifert, S.C.
OFFICERS
David L. Erdmann, 48
Jeffry H. Collier, 38
Chairman and President
Vice President-Manufacturing
Charles E. Thompson, 47
Jeffrey P. Stilp, 33
Executive Vice President
Treasurer and Controller
Wayne G. Beattie, 42
Secretary
CORPORATE INFORMATION
CORPORATE HEADQUARTERS
TRANSFER AGENT
STOCKHOLDER/INVESTOR
Outlook Graphics Corp.
AND REGISTRAR
INFORMATION CONTACT
1180 American Drive
First Wisconsin Trust Company
For additional information on the
Neenah, Wisconsin 54956
615 E. Michigan Street
Company, please contact the
(414) 722-2333
P.O. Box 2077
stockholder services department
Milwaukee, WI 53201-2077
at the Company address.
STOCK EXCHANGE LISTING
(414) 287-3900
NASDAQ National Market System
(800) 637-7549
ANNUAL MEETING
Symbol: OUTL
The annual meeting of
Newspaper abbreviations:
FORM 10-K REPORT
stockholders of Outlook Graphics
OutGraph, OutlkGraph
Single copies of the annual report
Corp. will be held on
on Form 10-K as filed with the
Thursday, October 10, 1991,
INDEPENDENT CERTIFIED
Securities and Exchange
at 7:00 p.m. at the Paper Valley
PUBLIC ACCOUNTANTS
Commission are available to
Hotel & Conference Center,
Grant Thornton
stockholders without charge.
333 W. College Avenue,
Appleton, Wisconsin
To obtain a copy, contact the
Appleton, Wisconsin.
stockholder services department
LEGAL COUNSEL
at the Company address.
Quarles & Brady
Milwaukee, Wisconsin
28
JUL-23-1992 11:03
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Four Embarcadero Center. Suite 2900
Grassroots Research
San Francisco, California 94111
415/954-5493 FAX: 415/954-5304
A Division of RCM Capital Management
Junior Report
November 7, 1991
OUTLOOK GRAPHICS
Grassroots interviewed 14 customers of Outlook Graphics to
determine their satisfaction with the company's work. Questions
also focused on, orders and the potential for future increases.
Synopsis
Outlook Graphics
Customers were quick to praise Outlook Graphics as a
appears to be in an
problem-solving company led by knowledgeable, aggres-
enviable position.
sive management.
Through hard work
Most sources have increased their business with Outlook
and close attention to
over the past year. Prospects for future business growth are
customers, it has become
rated as excellent by the majority.
widely viewed as a solid
company that delivers
Outlook is cutting a niche as a "one-stop-shopping" place
what it promises.
for printing, packaging and distribution. Several sources
said this is Outlook's major competitive advantage.
Findings
Top-quality work and a reputation for customer service are rock-
eting Outlook Graphics to the top, according to all our sources,
most of whom have increased their orders over the past year. Two
big customers reported their '91 business with Outlook had
doubled compared with '90. A few examples follow:
Outlook is the only printing vendor being considered for
expanded work with a major meat packer. "Quality is im-
portant, but if you don't have service, forget it, " said a
packaging engineer. Outlook, he stressed, has both.
A designer of custom merchandise catalogs said Outlook
handles the printing and mailing with ease. Other printers,
she said, "come begging for our business." Outlook has
taken the job over the past six years, based primarily on its
ability to provide a combination of services.
All rights reserved. No research may be reproduced or utilized without the written consent of Grassroots Research,
a division of RCM Capital Management. Copyright 1991 Grassroots Research. San Francisco 94111
JUL-23-1992 11:04
OUTLOOK GRAPHICS
414 727 8529
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Sports card production is big business and Outlook is grab-
bing its share. A .card executive described Outlook as
"eager, aggressive and trying to grow," and said his Outlook
orders have steadily increased over the past two years. The
only troubles this manager found were 'minor' quality
Sources were unanimous
issues, which arose when Outlook tried to "shove too much
in describing Outlook
volume through the pipeline." All was resolved and Out-
look, he said, "remains an important part of our business."
Graphics as a company
managed by people willing
Solutions People
to go the extra mile to meet
customer requirements.
Problem-solving is an Outlook Graphics trademark. Sources were
quick to volunteer examples of Outlook's dogged determination
to satisfy. A cereal executive told how Outlook's premium over-
wrapping was subjected to every test the R&D department could
muster. Outlook passed without any flying colors, but, in this case,
that was good news. The problem was "ink transfer" from
premiums to foodstuffs. Ink is considered an additive if it rubs off
on a food, and the Feds are cracking down hard on this issue.
Outlook's successful performance places it in an elite class of
vendors trusted to do the job right.
Odor migration is another problem which can arise when a
premium, with its distinctive smell, is included in a box of cereal.
A mint maker said Outlook met its claim to provide overwrapping
which contains 99.5% of smells. This positive result, combined
with Outlook's competitive pricing, resulted in a doubling of the
source's business with the company this year.
One-Stop Shopping
Outlook's ability to print, package and distribute is a big draw for
customers. As a cereal customer said, "We want limited vendors
because we can't manage them all." His company uses Outlook's
over-wrapping and printing divisions.
A catalog manager said once computer-generated copy is
delivered to Outlook for printing, it's as good as taking it to the
post office. "Outlook's advantage is its mailing service," she
concluded.
Management Is Tops
Sources said Outlook Graphics managers are among the best. A
cereal manager described the company president as a "visionary."
An executive with another food company related how Outlook
consulted customers and weighed their needs as it built a packag-
ing "clean-room" to federal standards. The executive said that
VGR25696.CHP
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JUL-23-1992 11:04
OUTLOOK GRAPHICS
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after considering customer input, Outlook "placed the right people
in the right spots and went to town."
A sports card manager said, "Outlook people examined a lot of
different options to try and help us." That attitude has won new
orders for Outlook over the past year.
With an unrelenting press
Sources were unanimous in describing Outlook Graphics as a
for quality in all aspects
company managed by people willing to go the extra mile to meet
of its operation, Outlook
customer requirements.
has wooed and retained the
business of top companies
Conclusion
in their respective fields.
"Be all that you can be" would seem an appropriate motto for
Outlook Graphics. (Too bad the Army grabbed it first.) Outlook
Graphics aims for the top. With an unrelenting press for quality
in all aspects of its operation, Outlook has wooed and retained the
business of top companies in their respective fields. A number of
sources are deeply impressed with Outlook's commitment to
customer service. Outlook managers were praised for their savvy
and aggressive desire to satisfy.
Outlook's one shortcoming may be a tendency to try and do too
much. Several sources used the expression "growing pains." In all
cases, fast action by Outlook management seems to have
prevented permanent damage and there apparently was no sig-
nificant loss of business. The majority of our sources fully expect
their dealings with Outlook to keep on growing.
Outlook Graphics appears to be in an enviable position. Through
hard work and close attention to customers, it has become widely
viewed as a solid company that delivers what it promises.
VGR25696.CHP
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JUL-23-1992
10:49
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Outlook promising
Graphics firm finds
its growth was in the cards
By CHUCK MARTIN
crs. Consequently, business goes
of The Journal stam
up and down based on what jobs
the customers have.
Neenah, Wis. - A lucky intro-
Almost 50% of the company's
duction to the football card busi-
business is divided among five CWS-
ness may have turned Outlook
tomers. If one of the five should
Graphics Corp. into one of Wis-
shift business elsewhere, Outlook
consin's fastest-growing companies.
Graphics would suffer.
But the Fox River Valley printer
Furthermore, while the compa-
and packager is proving that it has
ny's managers were successful in
far more going for it then luck.
handling Outlook Graphics as a
By finding markets il can reach
small business, they are untested
with new or better services and
in managing 2 business of the com-
capitalizing on opportunities with
pany's present size.
old-fashioned hustle, Outlook
Neverthcless, financial analysis
Graphics is building a resume that
and investors like the company's
is attracting regional and national
prospects so much that its stock
attention.
price has nearly doubled in the
"Lots of companies have luck,"
nine months it has been publicly
said Raymond Cabillot, an analyst
traded. The company's stock closed
who follows Outlook Graphics for
Friday at $21.75.
Piper, Jaffray & Hopwood, a secu-
"They have now equipment, a
rities firm in Minneapolis, "What
strong management team and
they [at Outlook] have been able
they're in some unique niches,"
to do is use their luck and build on
said Theodore Moreau, an analysts
it."
who follows the company for Rob-
Consider that the
ort W. Buird & Co.
company packages
in Milwaukee,
the prizes that go in-
We just look
"There's still a lot
to Alpha-Bits cereal
for niches and
of room to grow."
boxes and the nap-
Outlook Graphics
kins that 80 into Os-
we identify
owes much of its
car Mayer Foods'
growth to the fact
Lunchables meals.
customers we
that it was uninten-
Indoes much of the
think we can
tionally in the right
printing of Green
place at the right
Bay Packers tickets
provide services
time with the right
and stuils the fabrie
experience when the
softener sheets into
to The strategy
business of printing
Bounce boxes used
works.
"
and packaging sports
in vending machines
picture cards explod-
all in addition to
David Erdmann,
ed in 1989 and 1990.
printing and packag-
president
The picture card
ing thousands of
business contributed
Journal photo by Tem Lytin
sports picture cards.
nothing to the com-
CHARLES THOMPSON (left) and David Erdmann show a sampling of their products at Outlook
Not bad for a business created
pany's business before 1989, but
Graphics in Neenah. They were photographed on a Friday, the firm's "dress-down day."
by five friends who set out to start
it is likely to be worth slightly more
allocal bulk-mailing service
than $30 million this year.
Jan.
We just look for niches," said
It wasn't planned that way.
Outlook is rosy
$22.00
David Erdmann. co-founder and
When the five founders of Out-
president. "And WC identify cus-
look Graphics created the business
Outlook Graphics Corp expects sales to/b up 50%
tomers we think we can provide
in 1977, they had more modest
for the 12 months that end May 31, Financial analysts project
services to. The strategy works.
goals in mind
that earnings will-nearly double.
'!!' Outlook Graphics sales are pro-
Elton Beattic Jr., John Wiley,
1992
$60
1992
jected to reach about $65 million
Erdmann and Thompson, then in
$65
$6.5
Nov.
Dec.
for the year that ends May 31, up
their carly 30s. had been buddies
from $11.5 million four years ago.
since high school. The fifth partner
Sales
50
5
$18.50
$19.50
Earnings
Its employment is about 1,000 and
was Beattic's father. Elton Beattic
In millions
Inmiliations
Outlook Graphics
has been growing by more than 100
Sr.
40
4
owes most of its
a year since 1984.
The men intended that their
explosive growth
The company is completing a
business, then called Mailing and
30
1986
to collectible
1 5,000-sqitare-foot expansion of
Printing Services Inc., would per-
1986
$490,000
one of its buildings in the Town of
pictures cards.
form bulk mailing services for a
$7.7
20
Menasha near Neenah The expan-
large local employer, a printing
2
Percent
sion is expected to accommodate
company called Banta Corp.
Gradually, the company expan-
10
of sales
growth for about two years.
from
The company's two top execu-
ded into the printing business. In
Oct.
picture
tives, Erdmann and Executive Vice
1984, the company started print-
o
0
$15.75
cards
President Charles Thempson, are
ing. cutting and wrapping cards for
'88 18788'89'90'91'92
looking ahead to another expan-
the Trivial Pursuit board game,
For fiscal years ended May
are
sion, which they said probably
which was a big - frief hit;
The company's stock
89
Extended Page
1.1
sion. which they sato probably
which was a Dig If oner - nil.
I ne company's STOCK or pas meany
MW85
would be through an acquisition
Two years later, Outlook got in-
doubled since its initial offering on on
outside Wisconsin. They are scout-
to the business of packaging cards
April 24, 1991 at $11.50 a-share,
90 26%
ing for a business to buy on the
when it began overwrapping recipe
East Coast.
cards that it had printed for il cus-
'91
" The company has ample oppor-
Sune
August
tomer.
July
$11.50
92
50%
junity to stumble. One drawback
The moves appeared to be logi-
Sept.
May
$12.75
is that its business is based on
$11.75
short-term projects for its custom-
Please see Outlook page 10
$11.75
Source: Outlook Graphics
Jaurnal graphic by Jarry Stoingroeber
79 cents. Badger Periodicals will be distributing them TO
stores locally.
Erdmann said work is under way on a second series of Berenstain
Bears cards, possibly including stories written exclusively for the
cards, and and special gift sets will be available for Christmas.
Outlook is exploring the possibilities for other licensing agreements
as well.
JUL-23-1992 10:51
OUTLOOK GRAPHICS
414 727 8529
P.002/006
Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE E-LONG-TERM DEST
Long-term debt consists of the following (in thousands):
On September 1, 1990, Outlook Label entered into an
agreement for industrial development bond financing
1991
1990
in the aggregate principal amount of $4,000,000 with
Term loans
$
1
$6,005
annual principal installments of $400,000 commenc-
Revolving loan
-
1,600
ing September 1, 1991, with interest at a floating rate
Industrial development bonds
4,835
2,245
determined by a remarketing agent (5.75% at May 31,
Various notes
-
20
1991). As of May 31, 1991, $4,000,000 was outstanding.
4,335
9,870
The revolving loan and the industrial development
Less current maturities
426
2,865
bonds are collateralized by the Company's accounts
$4,409
$7,005
receivable, inventories, property, plant and equip-
ment and the common stock of Outlook Label.
TERM LOANS
The loans were payable in monthly installments
The revolving loan and the industrial development
ranging from $13,000 to $55,000 including interest
bond obligations are subject to the terms of certain
ranging from 11.1% to prime plus .5%. These loans
loan agreements which contain provisions setting
were paid in full during May 1991.
forth, among other things, working capital, net worth
and debt to equity requirements, and restrictions on
REVOLVING LOAN
property and equipment additions, loans, invest-
The Company has a $8,750,000 revolving credit
ments, other borrowings, management consulting
agreement expiring September 12, 1991. Borrowings
services, and acquisitions and redemptions of the
thereunder bear interest at .5% over prime. The out-
Company's stock or the issuance of stock except for
standing balance was paid in full during May 1991.
cash. Additionally, the Company may not pay cash
INDUSTRIAL DEVELOPMENT BONDS
dividends without the prior consent of its lenders.
On April 1, 1980, the Company entered into an agree-
The Company has obtained waivers for certain past
ment for industrial development bond financing in
actions which otherwise would have constituted vio-
the aggregate principal amount of $650,000 with
lations of covenants under the loan agreements. The
interest ranging from 9.2% to 9.5%, due in annual
waivers relate to limitations on additional indebted-
principal installments of $55,000 through April 1992.
ness and investments in other entities, capital
These bonds were retired during May 1991.
expenditure limitations, prohibitions on repurchase
of stock, limitations on the purchase or the sale and
On June 1, 1989, the Company entered into an
leaseback of equipment, the issuance of shares of
agreement for industrial development bond financing
stock and prepayments of outstanding debt.
in the aggregate principal amount of $1,300,000 with
annual principal installments ranging from $74,000
At May 31, 1991, future maturities of long-term debt
to $321,000 commencing on June 1, 1991, with inter-
were as follows (in thousands):
est at 98% of the prime rate through June 1, 1999.
1992
$ 426
These bonds were retired during May 1991.
1993
429
On June 1, 1989, the Company entered into an
1994
432
agreement for industrial development bond financing
1995
436
in the aggregate principal amount of $835,000 with
1996
440
annual principal installments ranging from $26,000
Thereafter
2,672
to $522,000 commencing on June 1, 1991, with
Total maturities
$4,835
interest at 10% through June 1, 1994, and then at
98% of the prime rate through June 1, 1999. As of
both May 31, 1991 and 1990, $835,000 was outstanding.
22
Extended Page
2.1
The Company offers a 401(k) savings plan for all
employees that meet certain eligibility requirements.
Employee contributions to the plan are made
through payroll deductions. In addition, the
Company matches 25% of the first 6% of each
employee's compensation deferral. Employer match-
ing contributions under the 401(k) plan for the years
ended May 31, 1991, 1990 and 1989 totaled $51,000,
$34,000 and $23,000, respectively.
23
JUL-23-1992 10:52
OUTLOOK GRAPHICS
414 727 8529
P.003/006
Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 1-Srock OPTIONS
Company's other stock option plans except that any
stock options outstanding under such plans shall con-
In the fiscal year ended May 31, 1985, the stockhold-
tinue in effect until they have been exercised or have
ers approved an incentive stock option plan under
expired or otherwise terminated. No options had been
which 34,662 shares of Common Stock were available
granted under the 1990 Plan as of May 31, 1991.
for issuance. Options were granted at market value
on the date of grant, but not less than the employee
Options outstanding under the Company's stock
stock purchase plan price. The options were exercis-
option plans have been considered in the computa-
able from the date of grant and terminate three years
tion of the weighted average number of shares
from date of grant.
outstanding used to calculate net earnings per share.
Transactions for the last three fiscal years are as follows:
1991
1990
1989
NOTE J-COMMITMENTS
Options outstanding,
At May 31, 1990, the Company conducted a portion of
beginning of year
4,125
12,375
16.500
its operations in leased facilities under an operating
Granted
-
-
-
lease which would have expired in October 1991. In
Exercised
(4,125)
(8,250)
-
November 1990, a new operating lease was executed
Expired
-
- (4.125)
which expires in November 1998. The Company is
Options outstanding,
responsible for all taxes, insurance and maintenance
end of year
I
4,125 12.375
costs and has an option to purchase the property
Option price range
which expires November 30, 1992. The Company also
at May 31
$2.30 $1.94-
leases equipment under a noncancellable operating
$2.30
lease which expires in December 1996.
In April 1990, the Company acquired certain addi-
On August 17, 1989, the stockholders approved an
tional equipment, at a cost of $1,162,000, and agreed
incentive stock option plan under which 55,000
with a financial institution to a sale and leaseback of
shares of Common Stock were available for issuance.
that equipment. The terms of this sale and leaseback
Options were granted at market value as set for the
arrangement were finalized, and the transaction con-
employee stock purchase plan plus $.18. Options are
summated, in August 1990. The Company did not
exercisable on the date of grant and terminate three
realize or recognize any gain or loss resulting from
years from date of grant.
the transaction. The operating lease expires in
Transactions are as follows:
August 1997.
1991
1990
During the year ended May 31, 1991, the Company
acquired certain additional equipment at a total cost
Options outstanding,
of $3,926,000. On March 21, 1991, the equipment was
beginning of year
48,125
-
sold at its cost and is being leased back by the
Granted
-
48,125
Company through March 1995. The Company did not
Exercised
I
1
realize or recognize any gain or loss resulting from
Expired
4,125
-
the transaction.
Options outstanding,
end of year
44,000
48,125
The following is a schedule, by fiscal years, of the
rental payments due under these leases, as of May 31,
Option price
$3.09
$3.09
1991, (in thousands):
On August 2, 1990, the stockholders also approved
1992
$1,329
the 1990 Stock Option Plan (the "1990 Plan"). Options
1993
1,313
may be granted under the 1990 Plan through May 31,
1994
1,313
2000, to key salaried employees, including officers.
1995
3,162
The 1990 Plan provides for a maximum issuance of
1996
631
200,000 shares of Common Stock. The exercise price
Thereafter
820
for options granted may not be less than the quoted
Total
$8,568
market price on the date of the grant. Options may
not be exercised for at least six months after the
Rent expense for the years ended May 31, 1991, 1990 and
date of the grant except in the event of death or dis-
1989, was $705,000, $330,000 and $52,000 respectively.
ability. The 1990 Plan supersedes and replaces the
The Company had agreements to purchase additional
equipment for approximately $1,728,000 at May 31, 1991.
24
JUL-23-1992 10:53
OUTLOOK GRAPHICS
414 727 8529
P.004/006
Four Embarcadero Center, Suite 2900
Grassroots Research
San Francisco, California 94111
415/954-5493 FAX: 415/954-5304
A Division of RCM Capital Management
Junior Report
November 7, 1991
OUTLOOK GRAPHICS
Grassroots interviewed 14 customers of Outlook Graphics to
determine their satisfaction with the company's work. Questions
also focused on orders and the potential for future increases.
Synopsis
Outlook Graphics
Customers were quick to praise Outlook Graphics as a
appears to be in an
problem-solving company led by knowledgeable, aggres-
enviable position.
sive management.
Through hard work
Most sources have increased their business with Outlook
and close attention to
over the past year. Prospects for future business growth are
customers, it has become
rated as excellent by the majority.
widely viewed as a solid
company that delivers
Outlook is cutting 8 niche as a "one-stop-shopping" place
what it promises.
for printing, packaging and distribution. Several sources
said this is Outlook's major competitive advantage.
Findings
Top-quality work and a reputation for customer service are rock-
eting Outlook Graphics to the top, according to all our sources,
most of whom have increased their orders over the past year. Two
big customers reported their '91 business with Outlook had
doubled compared with '90. A few examples follow:
Outlook is the only printing vendor being considered for
expanded work with a major meat packer. "Quality is im-
portant, but if you don't have service, forget it, " said a
packaging engineer. Outlook, he stressed, has both.
A designer of custom merchandise catalogs said Outlook
handles the printing and mailing with ease. Other printers,
she said, "come begging for our business." Outlook has
taken the job over the past six years, based primarily on its
ability to provide a combination of services.
All rights reserved. No research may be reproduced or utilized without the written consent of Grassroots Research,
a division of RCM Capital Management. c Copyright 1991 Grassroots Research, San Francisco 94111
JUL-23-1992 10:54
OUTLOOK GRAPHICS
414 727 8529
P.005/006
Sports card production is big business and Outlook is grab-
bing its share. A .card executive described Outlook as
"eager, aggressive and trying to grow," and said his Outlook
orders have steadily increased over the past two years. The
only troubles this manager found were 'minor' quality
Sources were unanimous
issues, which arose when Outlook tried to "shove too much
in describing Outlook
volume through the pipeline." All was resolved and Out-
Graphics as a company
look, he said, "remains an important part of our business."
managed by people willing
Solutions People
to go the extra mile to meet
customer requirements.
Problem-solving is an Outlook Graphics trademark. Sources were
quick to volunteer examples of Outlook's dogged determination
to satisfy. A cereal executive told how Outlook's premium over-
wrapping was subjected to every test the R&D department could
muster. Outlook passed without any flying colors, but, in this case,
that was good news. The problem was "ink transfer" from
premiums to foodstuffs. Ink is considered an additive if it rubs off
on a food, and the Feds are cracking down hard on this issue.
Outlook's successful performance places it in an elite class of
vendors trusted to do the job right.
Odor migration is another problem which can arise when a
premium, with its distinctive smell, is included in a box of cereal.
A mint maker said Outlook met its claim to provide overwrapping
which contains 99.5% of smells. This positive result, combined
with Outlook's competitive pricing, resulted in a doubling of the
source's business with the company this year.
One-Stop Shopping
Outlook's ability to print, package and distribute is a big draw for
customers. As a cereal customer said, "We want limited vendors
because we can't manage them all." His company uses Outlook's
over-wrapping and printing divisions.
A catalog manager said once computer-generated copy is
delivered to Outlook for printing, it's as good as taking it to the
post office. "Outlook's advantage is its mailing service," she
concluded.
Management Is Tops
Sources said Outlook Graphics managers are among the best. A
cereal manager described the company president as a "visionary."
An executive with another food company related how Outlook
consulted customers and weighed their needs as it built a packag-
ing "clean-room" to federal standards. The executive said that
VGR25696.CHP
-2-
JUL-23-1992 10:54
OUTLOOK GRAPHICS
414 727 8529
P.006/006
after considering customer input, Outlook "placed the right people
in the right spots and went to town."
A sports card manager sàid, "Outlook people examined a lot of
different options to try and help us." That attitude has won new
orders for Outlook over the past year.
With an unrelenting press
Sources were unanimous in describing Outlook Graphics as a
for quality in all aspects
company managed by people willing to go the extra mile to meet
of its operation, Outlook
customer requirements.
has wooed and retained the
business of top companies
Conclusion
in their respective fields.
"Be all that you can be" would seem an appropriate motto for
Outlook Graphics. (Too bad the Army grabbed it first.) Outlook
Graphics aims for the top. With an unrelenting press for quality
in all aspects of its operation, Outlook has wooed and retained the
business of top companies in their respective fields. A number of
sources are deeply impressed with Outlook's commitment to
customer service. Outlook managers were praised for their savvy
and aggressive desire to satisfy.
Outlook's one shortcoming may be a tendency to try and do too
much. Several sources used the expression "growing pains." In all
cases, fast action by Outlook management seems to have
prevented permanent damage and there apparently was no sig-
nificant loss of business. The majority of our sources fully expect
their dealings with Outlook to keep on growing.
Outlook Graphics appears to be in an enviable position. Through
hard work and close attention to customers, it has become widely
viewed as a solid company that delivers what it promises.
VGR25696.CHP
-3-
TOTAL
JUL-23-1992 10:56
OUTLOOK GRAPHICS
414 727 8529
P.001/013
Outlook promising
Graphics firm finds
its growth was in the cards
By CHUCK MARTIN
ers. Consequently, business goes
of The Journal staff
up and down based what jobs
the customers have.
Neenah, Wis. - A lucky intro-
Almost 50% of the company's
duction to the football card busi-
business is divided among five cus-
ness may have turned Outlook
tomers. If one of the five should
Graphics Corp. into one of Wis-
shift business elsewhere, Outlook
consin's fastest-growing companies.
Graphics would suffer.
But the Fox River Valicy printer
Furthermore, while the compa-
and packager is proving that it has
ny's managers were successful in
fur more going for it than luck
handling Outlook Graphics as a
By finding markets it can reach
small business, they are untested
with new or better services and
in managing a business of the com-
capitalizing on opportunities with
pany's present size.
old-fashioned hustle. Outlook
Nevertheless, financial analysis
Graphics is building a resume that
and investors like the company's
is attracting regional and national
prospects so much that its stock
attention.
price has nearly doubled in the
13 "Lots of companies have luck,"
nine months il has been publicly
said Raymond Cabillot, an analyst
traded. The company's stock closed
who follows Outlook Graphics for
Friday at $21.75.
Piper, Juffray & Hopwood, a secu-
"They have new equipment, a
rities firm in Minneapolis. "What
strong management team and
they [at Outlook] have been able
they're in some unique niches,"
10 do is use their luck and build on
said Theodore Moreau, an analysts
it."
who follows the company for Rob-
Consider that the
on W. Buird & Co.
company packages
in Milwaukee.
the prizes that 80 in-
'We just look
"There's still a lot
to Alpha-Bits coreal
for niches and
of room to grow."
boxes and the nap-
Outlook Graphics
kins that 80 into Os-
we identify
owes much of its
car Mayer Foods'
growth to the fact
Lunchables meals.
customers we
that it was uninten-
It docs much of the
think we can
tionally in the right
printing of Green
place at the right
Bay Packers tickets
provide services
time with the right
and stuffs the fhbric
experience when the
softener sheets into
to. The strategy
business of printing
Hounce boxes used
works."
and packaging spons
in vending machines
picture cards explod-
all in addition to
David Erdmann,
ed in 1989 and 1990.
printing and packag-
president
The picture card
ing thousands of
business contributed
Journal photo by Term Lynn
sports picture cards.
nothing to the com-
CHARLES THOMPSON (left) and David Erdmann snow a sampling of their products at Outlook
= Not bad for a business created
pany's business before 1989. but
Graphics in Neenah. They were photographed on a Friday, the firm's "dress-down day."
by five friends who set out to start
it is likely to be worth slightly more
allocal bulk-mailing service.
than $30 million this year.
Jan
"We just look for niches," said
It wasn't planned that way,
Outlook is rosy
$22.00
David Erdmann, co-founder and
When the five founders of Out-
president "And we identify cus-
look Graphics created the business
Outlook Graphics Corp. expects sales to be up 50%
tomers we think we can provide
in 1977, they had more modest
for the 12 months that end May 31. Financial analysts project
services to. The strategy works."
goals in mind.
that earnings will-nearly double.
Outlook Graphics' sales are pro-
Elton Beattic Jr., John Wiley,
1992
$60
1992
jected to reach about $65 million
Erdmann and Thompson, then in
$6
$65
$6.5
Nov.
Dec.
for the year that ends May 31, up
their early 30s, had been buddies
from $11.5 million four years ago.
since high school. The fifth partner
50
$18.50
$19.50
Sales
Earnings
Its employment is about 1,000 and
was Beattie's father. Elton Beattic
in millions
In inillions
Outlook Graphics
has been growing by more than 100
Sr.
40
4
owes most of its
year since 1984.
The men intended that their
explosive growth
The company is completing a
business, then called Mailing and
30
1986
3
to collectible
15,000-square-foot expansion of
Printing Services Inc., would per-
1986
$490,000
pictures cards.
one of its buildings in the Town of
form bulk mailing services for a
20
2
Menasha near Neenah. The expan-
large local employer, a printing
Percent
sion is expected to accommodate
company called Banta Corp.
growth for about two years.
Gradually, the company expan-
1
or sales
10
from
The company's two top execu-
ded into the printing business. In
Oct.
pleture
tives, Erdmann and Executive Vice
1984, the company started print-
o
$15.75
rds
President Charles Thompson, are
ing, cutting and wrapping cards for
'36
'87
88
89
91
92
looking ahead to another expan-
the Trivial Pursuit board game,
For
fiscal
years
ended
May
are
sion, which they said probably
which was a big - if brief hit
The company's stock price hasmearly
89
would be through an acquisition
Two years later, Outlook got in-
doubled since its initial offe ing
outside Wisconsin. They are scout-
to the business of packaging cards
April 24, 1991, at $11.50 a share
90
26%
ing for a business to buy on the
when it began overwrapping recipe
East Coast.
cards that it had printed for a cus-
'91
39%
4. The company has ample oppor-
tomer.
June
August
tunity to stumble. One drawback
$12.75
July
The moves appeared to be logi-
$11.50
Sept.
92
is that its business is based on
May
$12.75
$11.75
short-term projects for its custom-
Please see Outlook page 10
$11.75
Source: Outlook Graphics
Journal graphic by Jerry Steingraeber
JUL-23-1992 10:58
OUTLOOK GRAPHICS
414 727 8529
P.002/013
Outlook/Sports card business launched
company into period of strong growth
From page 1
Soon, the company gained busi-
ter & Gamble Co. once made the
ness in other sports card markets
cal decisions to serve existing mar-
product included tearing off indi-
as well, always producing on con-
kets. None of the executives knew
vidual softener sheets by hand for
tract for licensees.
stuffing into cartons.
that their card printing and pack-
From sports cards, Outlook has
aging experience would later draw
branched out into entertainment
A Procter & Gamble representa-
the attention of the National Foot-
tive once complained about the in-
industry cards. The company
efficiency of the hand work to an
ball League and make the company
makes comic book super hero
a prime player in the business of
Outlook sales representative.
cards and, in November, execu-
making sports cards.
Outlook managers then deter-
tives announced a joint venture to
The collectible sports card busi-
mined that they could use their
make and market cards based on
ness is generations old. Topps has
the Berenstain Bears children's
equipment to mechanically tear
dominated the market with its
and stuff the sheets.
books. The venture will expose the
cards depicting professional base-
They got the business and
company to a level of risk beyond
ball players, However, by the late
quickly tried to convince Procter
the simple printing and packaging
1980s, other companies were find-
& Gamble to shift more work to-
of cards, but it also will offer a big-
ing growing markets for cards in
ward Outlook Graphics.
ger potential return.
a variety of sports.
Erdmann said the company was
Picture cards will be about 50%
now close to a deal to make cartons
THE NFL COMES CALLING
of the company's business this
for Bounce.
year. But while the picture card
By 1989, an arm of the NFL
"That's typical of our strategy,"-
business has been a boon to Out-
called National Football League
Erdmann said. "We try to get a
look Graphics, its tendency to rise
Properties Inc. had decided to
customer's business by offering
grant licenses to companies for the
and fall on trends and fads is a po-
something unique. Then we try to
tential problem. Signs indicate that
production of cards depicting NFL
convince them to do more business
the market for most sports picture
players.
with us."
cards has peaked, Erdmann noted.
But NFL Properties first needed
Making folding cartons for con-
to find a business that could print
Erdmann would like to lower
sumer products holds great poten-
and package the cards for licensees.
to 40% the proportion of the com-
tial for Outlook Graphics, Erd-
NFL Properties learned of Out-
pany's business devoted to picture
mann said. It would be an exten-
look's expertise with board game
cards. So the company is develop-
sion of the company's picture card
and recipe cards and came calling.
ing other businesses, with consider-
business because the making of car-
"There weren't many options
able success.
tons and cards is similar.
for them," Erdmann said. "A lot
"They work their strategy well,"
A prime example of the compa-
of companies could print the cards,
said Cabillot of Piper, Jaffray &
ny's strategy is the Bounce fabric
but nobody else could print and
package them."
softener sold from vending ma-
Hopwood. "They define what they
want to do and they go out there
chines. The process by which Proc-
and do it."
To Dan
Date
Time 5:00
WHILE YOU WERE OUT
M Darl Wills economics
of
advisor
Phone 395-3517
Area Code
Number
Extension
TELEPHONED
PLEASE CALL
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message become
Operator
AMPAD
EFFICIENCY®
23-023 CARBONLESS
JUL-23-1992 10:27
OUTLOOK GRAPHICS
414 727 8529
P.001/029
FACSIMILE TRANSMISSION
or
ATTENTION Jeannie Bunton
DATE 7/23/92
COMPANY
NO. OF PAGES SENT 41
INCLUDING COVER
LOCATION
FAX NO. 202-456-6218
outlook
FROM
Cindy Baumgartner
graphics
1180 AMERICAN DRIVE
NEENAH. WI 54956
(414) 722-2333
FAX NUMBERS:
CUSTOMER SERVICE/PURCHASING/PLANNING: 414-727-8529
SALES/ESTIMATING/ACCOUNTING: 414-727-4787
FULFILLMENT: 4)4-722-5878
PERSONNEL: 414-722-3991
MAILING: 414-751-0252
MEMO
ADMIN-9/REV.3-72
JUL-23-1992 10:28
OUTLOOK GRAPHICS
414 727 8529
P.002/029
OUTLOOK GRAPHICS:
YOUR INNOVATIVE
PARTNER
JUL-23-1992 10:28
OUTLOOK GRAPHICS
414 727 8529
P.003/029
OUTLOOK'S APPROACH TO
GRAPHIC MARKETING SUPPORT
COMPANY PROFILE
Outlook Graphics has done what no one else in the industry
Outlook Graphics was formed in 1977 as specialists in
has: carved a niche as a one-stop, full service source for
printing and mailing. The company experienced explosive
powerful graphic marketing support programs. By offering
growth and by 1983, it was named to the "Inc. 500" list of
a complete range of integrated services and featuring state-
fastest growing private companies in America. In 1988,
of-the-art equipment, and the most advanced print
Outlook underwent a major expansion, nearly doubling
production processes, we at Outlook have built a reputation
its physical plant and increasing its contract packaging
for helping customers seize new marketing opportunities
capabilities. In June 1990, Outlook announced an
wherever they exist.
additional expansion effort.
Outlook Graphics' commitment to the industry means a
INNOVATIVE PARTNERS
constant effort to broaden production capabilities with the
most advanced equipment and a continual development
As partners, we work one-on-one with our clients to build
of technical expertise. Today, that includes various new
dynamic promotional marketing programs that deliver big
packaging endeavors.
results. From start to finish, whether a program requires
printing, labeling, card converting, film overwrapping,
For the employee stockholders of Outlook Graphics,
cartoning or direct mail and fulfillment, Outlook Graphics
however, it is not enough for the company to evolve
has the complete capability under one roof.
to meet industry's needs. Rather the company strives
to develop new technologies that provide customers with
new opportunities.
UNSURPASSED ADVANTAGES
Our one call concept offers unsurpassed advantages.
Outlook's comprehensive services are streamlined which
means every job is coordinated efficiently, eliminating
costly shipping between subcontractors. A central project
coordinator oversees all technical production phases,
making multifaceted projects a breeze. Additional
advantages are realized through improved security and
quality control.
CREATIVE EXCELLENCE
What really sets us apart, in addition to offering more
options and services than anyone in the industry, is our
commitment to innovation and creative excellence.
JUL-23-1992 10:28
OUTLOOK GRAPHICS
414 727 8529
P.004/029
GRAPHICS REPRODUCTION
Top quality marketing demands top quality printing. At Outlook,
we use our creative versatility and extensive production equipment
to your best advantage. We have the capabilities to produce high
volume sheet fed printing in up to six colors plus varnishes and
aqueous coatings. Our bindery offers intricate custom die-
cutting. trimming, scoring, folding and specialty finishing.
What's exceptional about Outlook's sheet-fed printing is
how it enhances our total graphics capabilities. Go ahead and
use Outlook for a self-contained printing job. We compete with
the best. But combine it with our on-site overwrapping, folding
carton, card converting, or mailing capabilities, and you've
discovered a rare treasure in the graphics industry.
LABELS
COUPONS
VINYL CARDS
P-O-S
Outlook's extensive graphic capabilities are complemented by
COIN-VENDED
the printed promotional products offered by our label division.
Outlook Label Systems. Housed in its own 90,000 square foot
facility, Outlook can create virtually any narrow-web
produced piece needed.
Scented
From single and continuous coupons, to dual-ply
instant redemption coupons, the options are many,
OLYMPIA
including product labels, stickers, vinyl cards, point-of-sale
materials and game pieces. All of these items may be enhanced
by the use of scratch-off inks, sequential numbering, or custom
ink-jet printing which may be available upon request. We can
even take it a step further by offering complete finishing
Menter
services, such as affixing cards and labels to forms.
Turkey Pastrami
Outlook's sophisticated equipment allows us to print large
quantities in a number of colors, finishes and stocks - even
12 mil vinyl. The uses - and creative possibilities - are endless.
CARD CONVERTING
Inaugural
Extition
It's no surprise that the licensees of the NFL, NBA and Major
League Baseball chose Outlook Graphics to produce their
collectable sports cards. Outlook has a national reputation for
producing high quality multi-color cards, wraps and displays
in phenomenal quantities.
What does that mean for you? Next time you have
a card converting job that requires quality printing,
critical collating expertise and eye-catching
packaging, remember Outlook Graphics.
JUL-23-1992 10:29
OUTLOOK GRAPHICS
414 727 8529
P.005/029
FILM OVERWRAPPING
When it comes to film overwrapping, we understand that you
can't afford to take chances on deadlines or quality. Outlook
has more than 20 overwrap machines to accommodate multiple
large-run jobs at one time - and on time. Our elaborate
quality control system, which includes a state-of-the-art testing
FREEND
laboratory, uses a form of statistical process control to ensure
that your job has a 99% AQL.
ChexCennals
Our capabilities include overwrapping clear or printed film
in single or continuous formats. Outlook's one-of-a-kind
2009
food grade clean room has met stringent FDA standards,
SAVE
assuring safety and quality. Most importantly, it has
Maggy
received the enthusiastic approval of many leading U.S.
consumer products companies. Need to overwrap coupons,
premiums, foods or product samples? At Outlook, the best
is guaranteed.
How Your to Life Protectings
FOLDING CARTONS
Outlook can help you produce custom paperboard packages
that make your customers sit up and take notice. Whether you
Available
Case
want one-color printing or five-color, standard paper or heavy
stock, special die cuts, gluing or crash lock bottoms, Outlook
ideals
Brown
and
Doctor
can do it all. Really want to make an impression?
White
Consider embossing, cellophane windows or
tipped-down coupons or premiums.
BONUS OFFER
THE
THE
SEASONTS
Trust Outlook to create 2 production line that includes
package design, printing, die cutting, folding, gluing and
inserting your product in-line. And, of course, we'll pack and
ship to your distribution points, if you like. One call does it all.
Ideals
Return
-
I
DIRECT MAIL & FULFILLMENT
Your product has been cartoned, your coupons printed or your
premiums overwrapped. Time to ship them to the next vendor
for sorting, inserting, labeling, or mailing? Not at Outlook. At
our 160,000-square-foot direct mail division, Outlook is fully
equipped to handle your shipping and fulfillment needs.
SUMMARY
Outlook has made a substantial investment in high-speed,
In an industry where speed and accuracy are essential, Outlook
high-tech equipment to maximize your time and minimize your
is committed to delivering a finished product that meets your
costs. Material collsting, inserting, custom polywrapping.
exacting standards every time. High-tech equipment alone won't
labeling or ink-jet addressing can be done in line to reduce
get your job done right. It takes creative people. People of
handling costs. Even our centralized Midwestem location and
integrity. People committed to quality and customer satisfaction.
proximity to Chicago's Bulk Mailing Center are used for your
It takes the people of Outlook Graphics. Put your innovative
convenience and financial advantage.
partners to work for you today.
:
30
OUTLOOK GRAPHICS
414 727 8529
P.006/029
ERTS IN THE PRODUCTION OF PRINTED PROMOTIONAL
OOK GRAPHICS SERVES AS A PRIMARY SUPPLIER [1] Ose AR
ORPORATION IN ADDITION TO PRINTING, OSCAR May ER REMIES
AGINEERING MANUFACTURING PACKAGING ANDUNSERTING.OF
LIKE THE POLYWRAPPED LONGHABLES NAPKINS - IN THEIR
CHRODUCTS THE LUNCHABLES PROGRAM ILLUSTRATES THE
ROF INNOVATION TECHNOI QGY AND INDUSTRY EXPERIENCE
SPELL SUGGESS FOR US AND OSCAR MAYER
JUL-23-1992 10:31
OUTLOOK GRAPHICS
414 727 8529
P.007/029
OUTLOOK GRAPHICS C 0 R P..
ug
WCW
Wrestling
HHIP
/
JENNIRO
TURKEY HAM
JENNIED
CHormel
TURKEY
BREAST
Light&Lean
97%FATFREE
HictorySmoled.
FRANKS
Orcar
-
Mayer
Hamster
Gerbil
TREATMENTS
TORE
B
PERFORMANCE
THROUGH
PARTNERSHIPS
JUL-23-1992 10:32
OUTLOOK GRAPHICS
414 727 8529
P.008/029
ABOUT THE COVER
Outlook Graphics' successful
our customers are illustrated on
performance is the result of
the cover. Shown are a variety
partnerships developed with
of products produced by our
stockholders. employees.
specialty printing and converting
customers and suppliers. The
and packaging operations.
results of our partnership with
CONTENTS
President's Letter
2
Our Strategy
+
Our Business
5
Operations Review
6
Selected Financial Data
12
Management's Discussion and Analysis
13
Index to Financial Statements
16
Quarterly Data
27
Market Prices and Dividends
27
Corporate Information
28
JUL-23-1992 10:32
OUTLOOK GRAPHICS
414 727 8529
P.009/029
OUTLOOK GRAPHICS CORP.
COMPANY PROFILE
Outlook Graphics Corp. is a
companies in the sports picture
graphic services company which
card, food, consumer products,
offers an array of related services
and printing and publishing
including specialty printing,
industries. The Company operates
converting and packaging, and
three production facilities in
distribution principally to
Neenah, Wisconsin.
FINANCIAL HIGHLIGHTS
Fiscal Year Ended May 31,
1991
1990
Change
EARNINGS STATEMENT
(dullars in thousands, except per share amounts)
Net sales
$43,275
$31,765
36.2%
Operating profit
6,369
4,738
34.4
Net earnings
3,354
2,409
39.2
BALANCE SHEET (AT FISCAL YEAR END)
Working capital
$11,953
$ 2,002
497.1%
Total assets
38,699
21,902
76.7
Long-term debt
4,409
7,005
(37.1)
Stockholders' equity
27,466
7,893
248.0
PER SHARE
Net earnings per share
$ .92
$.69
33.3%
Average shares outstanding
3,651,023
3,471,471
NET SALES (millions)
NET EARNINGS (millions)
NET EARNINGS PER SHARE
$45
$4.0
$1.00
40
90
3.5
35
.80
3.0
.70
"30
2.5
.60
25
2.0
.50
20
1.5
.40
16
.30
1.0
10
.20
CR
0.6
.10
87
88
89
90
91
37
88
89
90
91
87
88
89
90
91
1
JUL-23-1992 10:33
OUTLOOK GRAPHICS
414 727 8529
P.010/029
DEAR STOCKHOLDERS
We completed an initial public
their own jobs and develop
were $7.0 million in fiscal 1991.
offering of shares of Common
themselves to their fullest
Major equipment purchases
Stock at $11.50 per share in May
potential. Their growth is
included three six-color printing
1991. All of us at Outlock Graphics
important to the Company's
presses, labeling equipment,
extend a warm welcome to the new
growth. Our challenge is to
and wrapping and trimming
stockholders who have joined us.
maintain this team spirit as we
machines. Stockholders' equity
We appreciate the confidence you
expand quality customer services
was $27,466,000 at May 31, 1991,
have placed in us by investing in
and employment in the future.
a substantial increase from
our Company. We also want to
stockholders' equity of
FISCAL 1991 RESULTS
thank our long-term stockholders
$7,893,000 at the same time
for their support throughout the
Our second set of "firsts" was the
last year.
14 years of growth which have
new highs in sales, earnings,
GROWTH AREAS
brought us to where we are today.
employment and stockholders'
At Outlook Graphics, we place a
equity achieved in fiscal 1991. For
Increased demands for specialty
great deal of importance on
the year ended May 31, 1991, sales
printing and converting
partnerships--partnerships with
rose 36% to $43,275,000. Net
capabilities were the primary
stockholders, employees, custo-
earnings were $3,354,000, a 39%
reasons for the record sales and
mers and suppliers. These valuable
increase from the prior year. Net
earnings. The sports picture card
relationships have enabled us to
earnings per share were $.92. up
industry was a source of sizeable
build a strong company. They serve
33%. These numbers reflect the
growth for us this year. We print,
as the foundation for our future
outstanding performance of our
trim, collate and wrap picture
growth as well.
people in delivering high quality
cards for customers including
Charles E.
Jeffry H. Collier
Thompson
Vice President-
Our partnership with employees
services at a reasonable cost.
Fleer Corp., Impel Marketing,
Executive Vice
Manufacturing
President
is especially strong. One of the
The proceeds from the initial
Inc., and The Upper Deck
attributes that we believe sets
public offering have been used to
Company. We have diversified
Outlook Graphics apart from many
reduce debt and to supply the
our picture card customer base,
other companies is the opportunity
growing capital needs of the
allowing our entry into the
we offer our employees to manage
Company. Capital expenditures
entertainment card market.
2
JUL-23-1992 10:33
OUTLOOK GRAPHICS
414 727 8529
P.011/029
UUTLOOK URAPHICS CURP.
1991 WAS A
We are also pleased with our
THE FUTURE
YEAR OF FIRSTS
first year of experience in
Our solid base in consumer
paperboard packaging and look for
products and publishing,
continued growth in this area in
combined with our established
the coming year. We continue to
expertise in trading cards,
seek other complementary service
positions us for continued progress
niches to further expand our
in fiscal 1992. There will be many
vertically integrated capabilities.
opportunities for Outlook Graphics
We define ourselves as a service
throughout the nineties. With the
company. Our ability to help our
public offering behind us, the
customers successfully market
addition of several key managers,
their products has enabled us to
and our increased financial
attract many quality companies as
strength, we are ready to make the
customers, including a number of
most of these opportunities.
Fortune 1000 companies. The
It is appropriate to close our
prospects for adding to this list in
first annual report with a thank
fiscal 1992 are excellent.
you to our partners-our
OBJECTIVES
stockholders, customers,
employees and suppliers. Your
Our corporate objectives are to:
support and commitment make
meet the needs of our customers;
Outlook Graphics 8 very special
Jeffrey P. Stilp
David L.
develop a highly motivated and
Treasurer and
Erdmann
company.
Controller
Chairman and
well-trained employee group; and
President
increase the value of our stock-
claved L. Edian
holders' investment. These objec-
David L. Erdmann
Chairman and President
tives are the framework we use to
strategize activities and evaluate
our progress throughout the year.
3
JUL-23-1992 10:43
OUTLOOK GRAPHICS
414 727 8529
P.029/029
Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE E-LONG-TERM DEBT
Long-term debt consists of the following (in thousands):
On September 1, 1990, Outlook Label entered into an
agreement for industrial development bond financing
1991
1990
in the aggregate principal amount of $4,000,000 with
Term loans
$
1
$6,005
annual principal installments of $400,000 commenc-
Revolving loan
-
1,600
ing September 1, 1991, with interest at a floating rate
Industrial development bonds
4,835
2,245
determined by a remarketing agent (5.75% at May 31,
Various notes
-
20
1991). As of May 31, 1991, $4,000,000 was outstanding.
4,835
9,870
The revolving loan and the industrial development
Less current maturities
426
2,865
bonds are collateralized by the Company's accounts
$4,409
$7.005
receivable, inventories, property, plant and equip-
ment and the common stock of Outlook Label.
TERM LOANS
The loans were payable in monthly installments
The revolving loan and the industrial development
ranging from $13,000 to $55,000 including interest
bond obligations are subject to the terms of certain
ranging from 11.1% to prime plus .5%. These loans
loan agreements which contain provisions setting
were paid in full during May 1991.
forth, among other things, working capital, net worth
and debt to equity requirements, and restrictions on
REVOLVING LOAN
property and equipment additions, loans, invest-
The Company has a $3,750,000 revolving credit
ments, other borrowings, management consulting
agreement expiring September 12, 1991. Borrowings
services, and acquisitions and redemptions of the
thereunder bear interest at .5% over prime. The out-
Company's stock or the issuance of stock except for
standing balance was paid in full during May 1991.
cash. Additionally, the Company may not pay cash
INDUSTRIAL DEVELOPMENT BONDS
dividends without the prior consent of its lenders.
On April 1, 1980, the Company entered into an agree-
The Company has obtained waivers for certain past
ment for industrial development bond financing in
actions which otherwise would have constituted vio-
the aggregate principal amount of $650,000 with
lations of covenants under the loan agreements. The
interest ranging from 9.2% to 9.5%, due in annual
waivers relate to limitations on additional indebted-
principal installments of $55,000 through April 1992.
ness and investments in other entities, capital
These bonds were retired during May 1991.
expenditure limitations, prohibitions on repurchase
of stock, limitations on the purchase or the sale and
On June 1, 1989, the Company entered into an
leaseback of equipment, the issuance of shares of
agreement for industrial development bond financing
stock and prepayments of outstanding debt.
in the aggregate principal amount of $1,300,000 with
annual principal installments ranging from $74,000
At May 31, 1991, future maturities of long-term debt
to $321,000 commencing on June 1, 1991, with inter-
were as follows (in thousands):
est at 98% of the prime rate through June 1, 1999.
1992
$ 426
These bonds were retired during May 1991.
1993
429
On June 1, 1989, the Company entered into an
1994
432
agreement for industrial development bond financing
1995
436
in the aggregate principal amount of $835,000 with
1996
440
annual principal installments ranging from $26,000
Thereafter
2,672
to $522,000 commencing on June 1, 1991, with
Total maturities
$4,835
interest at 10% through June 1, 1994, and then at
98% of the prime rate through June 1, 1999. As of
both May 31, 1991 and 1990, $835,000 was outstanding.
22
JUL-23-1992 10:34
OUTLOOK GRAPHICS
414 727 8529
P.012/029
OUR
STRATEGY
OUTLOOK GRAPHICS IS A
innovative approach to work-an
PEOPLE COMPANY.
approach which encourages
We work hard to build strong
individuals to develop their career
partnerships with our employees,
in a supportive environment.
customers and suppliers.
Sustaining the momentum of this
Our partnership with employees
important partnership is the future
begins with our management team.
for Outlook Graphics and the
Many of these experienced
people on our team.
managers have been with the
OUTLOOK GRAPHICS IS A
Company since its inception. As a
SERVICE COMPANY.
result, they know our business and
Partnerships with our customers
our customers. They have devel-
are based upon quality and
oped the approach to service which
value. We continually seek
makes Outlook Graphics unique.
complementary new service
We are proud of the fact that a
niches to enable our customers to
significant number of employees
effectively market their products.
International Masters Publishers,
are Outlook Graphics stockholders.
And we value the participation of
Inc., Kimberly-Clark Corporation,
Dedicated employees like those
our suppliers in enhancing our
Kraft General Foods, Inc., Oscar
featured in this report help us to
reputation for quality.
Mayer Foods Corporation, The
earn our reputation for quality and
We are proud to work with many
Procter & Gamble Company,
service every day with every
nationally recognized companies
virtually all of the major U.S. cereal
customer.
including AMEX Life Assurance
companies, and others. Service at
We attract and retain these
Company, Banta Corporation, Fleer
Outlook Graphics means giving
talented individuals because of our
Corp., Impel Marketing, Inc.,
110% to all of our customers.
4
JUL-23-1992 10:34
OUTLOOK GRAPHICS
414 727 8529
P.013/029
OUTLOOK GRAPHIUS
CuRr
OUR
BUSINESS
Outlook Graphics has three major
related classes of services:
39%
SPECIALTY PRINTING,
54%
CONVERTING AND PACKAGING,
AND DISTRIBUTION.
Customers may utilize just one or a
combination of these services,
depending upon their needs. We call
this our "one-stop shop" concept.
This approach gives us a unique
competitive advantage in the
marketplace.
Instead of offering a specific set
of services to customers, we design
a combination of integrated services
Dirk J. DeBraal
Richard R. Austin
Suzanne M.
Myron R. Jones
around the needs of each customer.
Plant Manager
Purchasing
McAloon
Production
Manager
Estimating
Control Manager
This continuum of services can
Manager
efficiently take a project from the
Patrick R. Rusk
Cynthia J. Kallien
George L. Hazen
initial concept to completion
Division Manager
Assistant
Personnel
Controller
Manager
without the need for subcontractors
and transporting projects to various
locations. Increased efficiency and
cost effectiveness are the benefits of
this approach for our customers.
5
JUL-23-1992 10:37
OUTLOOK GRAPHICS
414 727 8529
P.018/029
UUTLOOR URAPTIOS
VUR
DISTRIBUTION
The final step in our one-stop
Fulfillment is the distribution of
service approach is direct mailing
items to a third party as they are
and fulfillment. This operating area
ordered by the customer. These can
was 7% of fiscal 1991 sales.
be in response to special promo-
After our customers' products
tions or replenishment of standing
have been printed, packaged or
orders for materials such as forms
overwrapped, we ship them out of
and booklets which are reprinted
our secured 160,000 square foot
and warehoused at our facility.
direct mail facility. We utilize high-
Remote access capabilities give
speed equipment to ink-jet address,
customers immediate information
collate, insert, wrap and label items
on their inventories and the ability
for bulk mailing. Zip code sorting
to reorder items by computer.
achieves maximum postage savings
E
From concept through
for our customers. Direct mailings
completion, printing to fulfillment,
during the past year included
this review of our operations
Phyllis Voughan
catalogs, coupon packages, federal
illustrates how Outlook Graphics
Phyllis Vaughan
income tax forms and promotional
responds to customer needs. We
"We're all team members at
materials.
truly are a one-stop source, helping
Outlook. And as a team, we work
toward serving the customer to
customers to market their products
the best of our abilities."
efficiently and cost effectively.
11
JUL-23-1992 10:38
OUTLOOK GRAPHICS
414 727 8529
P.019/029
SELECTED FINANCIAL DATA
The following selected financial data of Outlook
the consolidated financial statements, related notes
Graphics Corp. (the "Company") has been derived
and Management's Discussion and Analysis contained
from the Company's audited consolidated financial
in this report.
statements and should be read in conjunction with
(in thousands, except per share amounts)
Fiscal Year Ended May 31,
1991
1990
1989(1)
1988
1987
EARNINGS STATEMENT DATA:
Net sales
$43,275
$31,765
$17,292
$11,467
$ 8,280
Cost of goods sold
32,407
23,013
13,204
8,807
6,316
Gross profit
10,868
8,752
4,088
2,660
1,964
Selling, general and
administrative expenses
4,499
4,014
2,601
1,802
1,415
Operating profit
6,369
4,788
1,487
858
549
Other income (expense):
Interest expense
(1,323)
(1,071)
(611)
(375)
(237)
Interest and other income
420
247
154
189
202
Earnings before income taxes
and cumulative effect of
accounting change
5,466
3,914
1,030
672
514
Income tax expense
2,112
1,505
374
275
259
Earnings before cumulative effect
of accounting change
3,854
2,409
656
397
255
Cumulative effect of accounting
-
-
224
-
change on prior years (2)
-
NET HARMINGS
$ 8,354
$ $ 2,409
$ 656
$ 621
$ 255
Earnings per share:
Before cumulative effect of
accounting change (2)
$
.92
$ .69
$ :21
$ .14
$ .09
Net EARNINGS PER SHARE
.92
.69
.21
.22
.09
Weighted average number of
shares outstanding
3,651,023
3,471,471
3,094,152
2,883,950
2.852,768
BALANCE SHEET DATA (AT FISCAL YEAR END):
Working capital
$11,953
$ 2,002
$ 3,115
$ 1,005
$ 573
Total assets
38,699
21,902
17,920
9,474
8,273
Long-term debt, less
current maturities
4,409
7,005
8,352
3,006
3,095
Stockholders' equity
27,466
7,893
5,402
3,477
2,757
(1) Includes the results of operations of the Company's subsidiary, Outlook Label Systems, Inc. ("Outlook
Label") from January 1, 1989. See Note K of Notes to Consolidated Financial Statements.
(2) Effective June 1, 1987, the Company changed its method of accounting for income taxes to the liability
method in accordance with Statement of Accounting Standards No. 96. The cumulative effect of this
accounting change increased earnings by $224,000 ($.08 per share) for fiscal 1988.
12
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414 727 8529
P.020/029
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS
The following table shows, for the fiscal years indi-
Gross profit increased $2.1 million, or 24.2%, during
cated, certain items from the Company's consolidated
fiscal 1991 as compared to fiscal 1990 due to
statements of earnings expressed as a percentage of
increased sales, offset in part by lower gross profit
net sales.
margins. Gross profit as a percentage of net sales
decreased during fiscal 1991 to 25.1% from 27.5%
Percentage of Net Sales
during fiscal 1990. This decrease was due primarily
Year Ended May 31,
1991
1990
1989
to a reduction in gross margins at Outlook Label
Net sales
100.0% 100.0% 100.0%
because of a change in project mix and higher labor
Cost of goods sold
74.9
72.5
76.4
costs at the Company related to the training and
Gross profit
25.1
27.5
23.6
retention of additional employees hired to support
Selling, general and
new and increased production requirements.
administrative expenses
10.4
12.6
15.0
Selling, general and administrative expenses as a
Operating profit
14.7
14.9
8.6
percentage of net sales decreased during fiscal 1991 to
Other income (expense):
10.4% as compared to 12.6% for fiscal 1990. primarily
Interest expense
(3.1)
(3.4)
(3.5)
due to the increase in net sales and the fixed nature of
Interest and
certain selling, general and administrative expenses.
other income
1.0
.8
.8
Interest expense as a percentage of net sales
(2.1)
(2.6)
(2.6)
decreased slightly to 3.1% during fiscal 1991 from
Earnings before
3.4% for fiscal 1990. However, the dollar amount
income taxes
12.6
12.3
6.0
of interest expense increased by $252,000 to $1.3
Income tax expense
4.9
4.7
2.2
million for fiscal 1991 due to increased borrowings
NET EARNINGS
7.8%
7.6%
3.8%
to finance capital expenditures prior to the
Company's initial public offering in May 1991. Interest
income increased during fiscal 1991 primarily due
to earnings from $3.1 million of unexpended funds
from industrial development bond financing.
FISCAL 1991 COMPARED TO
FISCAL 1990
As a result of the factors discussed above, and
Net sales for fiscal 1991 of $43.3 million were $11.5
reflecting 3 relatively constant effective income tax
rate for both periods, net earnings for fiscal 1991
million, or 36.2%, higher than the sales of $31.8 million
increased by $945,000, or 39%, compared to fiscal
in fiscal 1990. Net sales of converting and packaging
services increased 67.9% to $23.5 million during
1990. Net earnings as a percentage of net sales
fiscal 1991 from $14.0 million in fiscal 1990, primarily
increased slightly to 7.8% for fiscal 1991 compared to
7.6% in fiscal 1990.
due to increased volume of sports and other collectible
picture card production for new customers. This
Because of the project-oriented nature of the
increase occurred in spite of the absence of converting
Company's business, the Company's largest customers
and packaging sales in fiscal 1991 to two customers
tend to vary from year to year depending on the
which had been the Company's largest customers in
number and size of the projects completed for these
fiscal 1990. In addition, net sales of specialty printing
customers. Additionally, the Company's sales have
increased 20.0% to $16.8 million during fiscal 1991
been relatively concentrated among its largest
from $14.0 million in fiscal 1990, primarily due to
customers, as well as concentrated in the sports
increased production of sports and other collectible
picture card business which constituted 43% and 26%
picture cards.
of net sales in fiscal 1991 and 1990, respectively.
Changes in the Company's project mix and customer
base, or the demand for the Company's services
relating to sports picture cards, could affect future
sales volume and profitability.
13
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
FISCAL 1990 COMPARED TO
LIQUIDITY AND
FISCAL 1989
CAPITAL RESOURCES
Net sales for fiscal 1990 increased by $14.5 million, or
The Company completed an initial public offering in
83.7%, over net sales for fiscal 1989. In fiscal 1990,
May 1991. The Company's issuance of 1,561,372
the Company significantly expanded its converting
shares of Common Stock netted proceeds to the
and packaging of sports picture cards, which
Company of $16.2 million. The Company used $13.5
accounted for $8.3 million, or 26.2%, of net sales in
million of the proceeds to reduce outstanding debt
fiscal 1990. Outlook Label completed its first full year
and the balance of the proceeds were retained as
of operations with the Company and generated net
working capital.
sales of $6.9 million (representing 21.8% of net
The Company has a bank agreement with an avail-
sales), as compared to $1.8 million for the five month
able revolving credit facility. As of May 31, 1991, 1990
period included in fiscal 1989.
and 1989, $0, $1.6 million and $2.2 million, respec-
Gross profit increased $4.7 million, or 114%, in fiscal
tively, had been drawn under the revolving credit
1990 as compared to fiscal 1989. Gross profit as a
facility, which provides a commitment of $3.75
percentage of net sales increased to 27.5% for fiscal
million through September 12, 1991. In addition, the
1990 from 23.6% for fiscal 1989. The improvement in
bank agreement included term loan facilities under
gross profit margins is primarily attributable to the
which $0, $6.0 million and $5.8 million, respectively,
growth in converting and packaging services and the
were outstanding as of May 31, 1991, 1990 and 1989.
resulting more efficient utilization of production
The Company has generated cash flows from opera-
resources. Increases in Outlook Label's net sales and
tions during each of the past three full fiscal years. The
improvement in its margins also contributed to the
Company's line of credit provides an additional source
increase in gross profit percentage.
of liquidity when needed.
While total selling, general and administrative
The Company's policy has been to fund capital
expenses increased by $1.4 million from fiscal 1989 to
expenditures with cash generated from operations
fiscal 1990, they decreased as a percentage of net
sales to 12.6% in fiscal 1990 from 15.0% in fiscal 1989.
and through borrowings, and by leasing certain
assets rather than purchasing them. In some
The increase in the dollar amount primarily reflects a
instances, the Company has acquired capital equipment
full year of Outlook Label operations, increased com-
with cash generated from operations or its revolving
pensation expense and other expenses related to the
credit facility and has recovered these funds through
growth in net sales. The decrease in the percentage
the ensuing sales of that equipment (at cost) to
amount primarily resulted from the increase in net
sales and the fixed nature of certain selling, general
third parties that lease the equipment back to the
Company. Amounts recoverable from sale and lease-
and administrative expenses.
back transactions relate to cash amounts recoverable
Interest expense as a percentage of net sales
by the Company at a stated date pursuant to sale/
decreased slightly to 8.4% in fiscal 1990 from 3.5% in
leaseback financing commitments not yet funded.
fiscal 1989. However, the dollar amount of interest
The Company uses sale/leaseback financing with
expense increased by $460,000 from $611,000 in fiscal
respect to new equipment, and does not sell and
1989 to $1,071,000 in fiscal 1990 due to additional bank
lease back existing equipment as a source of funds.
borrowings used to finance capital expenditures to
The competitive requirements of the graphic services
support the growth in sales.
industry require the Company to make significant
As a result of the factors discussed above, and despite
capital expenditures to maintain and improve its
an increase in the Company's effective tax rate from
equipment and facilities. During fiscal 1991, the
36.4% to 38.5%, net earnings as a percentage of net
Company made approximately $7.0 million in capital
sales increased to 7.6% in fiscal 1990 from 3.8% in
expenditures, excluding the cost of capital equip-
fiscal 1989.
ment financed through sale/leaseback transactions.
14
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P.022/029
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
The expenditures consisted of $5.4 million for equip-
through $2.7 million in working capital of the pro-
ment, $660,000 for expansion of the Company's
ceeds remaining from the initial public offering after
pressroom facilities, and $1.0 million for a plant
debt repayment, and through funds obtained from
expansion at Outlook Label. The Company financed
operations and borrowings. The Company's capital
its fiscal 1991 capital expenditures through increased
position has been strengthened as a result of the
bank borrowings, industrial development bond
repayment of outstanding debt with the proceeds
financing and working capital. Additionally, during
from the initial public offering. The Company
fiscal 1991, the Company entered into two operating
believes this strengthening will enhance its ability to
leases for equipment valued at $5.0 million which
obtain future additional debt financing under favor-
require total annual lease payments of $901,000.
able terms. Outlook Label also has available $3.0
million in unexpended proceeds from previous indus-
During fiscal 1990, the Company made approximately
trial development bond financing. The Company may
$4.6 million in capital expenditures of which the
also continue to obtain the use of new equipment
Company recovered $1.2 million during the first quarter
through operating lease arrangements if advanta-
of fiscal 1991 through a sale and leaseback of new
geous to the Company to do so.
equipment. During fiscal 1990, the Company gener-
ated cash from operations of approximately $4.2
The Company's debt agreements include covenants
million, which was used primarily for the acquisition
and restrictions which require the Company to main-
of capital equipment. Also during fiscal 1990, the
tain certain capital levels, prohibit the payment of
Company borrowed $2.1 million using industrial
dividends, restrict capital expenditures and other-
development bond financing, of which $605,000
wise require the Company to meet certain financial
remained available for future use at May 31, 1990.
tests. The Company has, in the past, received waivers
to permit it to take actions which would not other-
During fiscal 1989, the Company's capital expendi-
wise be permitted by the covenants; these waivers
tures totalled $4.3 million and were funded through
have permitted additional specified capital invest-
bank borrowings and cash generated from operations.
ments, repurchases of securities and stock dividends.
The Company anticipates capital expenditures of
The Company currently is negotiating a new debt
approximately $8.0 million in fiscal 1992. The
agreement with an expanded line of credit and less
Company intends to finance the expenditures
restrictive covenants.
IMPACT OF INFLATION
In general, the Company believes that the effects of
inflation on the Company have not been material in
recent years.
PRINCIPAL CLASSES OF SERVICES
The following table sets forth the approximate
amount and percentage of net sales contributed by
each principal class of the Company's services during
the last three fiscal years:
Fiscal Year Ended May 31,
1991
1990
1989
(dollars in thousands)
Specialty Printing
$16,754
39%
$14,007
44%
$ 8,299
48%
Converting and Packaging
23,546
54
14,037
44
5,817
34
Distribution
2,975
7
3,721
12
3,176
18
TOTAL
$43,275
100%
$31,765
100%
$17,292
100%
15
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414 727 8529
P.023/029
INDEX To FINANCIAL STATEMENTS
Consolidated Balance Sheets
17
Consolidated Statements of Earnings
18
Consolidated Statements of Stockholders' Equity
19
Consolidated Statements of Cash Flows
20
Notes to Consolidated Financial Statements
21
Statement of Management Responsibility
for Financial Statements
26
Report of Independent Certified Public Accountants
26
16
-1992 10:34
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414 727 8529
P.014/029
CARDS OF
CO PREMIUM AVET COLLECTOR'S GARDS
ANDRET
199
WEW
JUL-23-1992 10:35
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414 727 8529
P.015/029
SPECIALTY
PRINTING
Increased demand for specialty
Our label division produces
printing was a key factor in our
product labels, stickers, vinyl
record 1991 earnings. This class of
cards, point-of-sale materials and
services represented 39% of sales
game pieces. These can be
in fiscal 1991.
enhanced with scratch-off inks,
Utilizing the latest in technology
sequential numbering or custom
and equipment, Outlook Graphics
printing.
provides high volume sheet-fed
The successful specialty
printing in up to six colors plus
printing operation offers quality
varnishes and aqueous coatings.
reproduction either as a single
We also offer custom die-cutting,
service or combined with collating
trimming, scoring, folding and
and packaging for a complete
specialty finishing.
project. This approach gives us the
Examples of some specialty
flexibility to meet a variety of
printing products include sports
customer requirements.
Iim Friebel
and other picture cards, recipe
cards, foiding cartons, food
Jim Friebel
coupons and labels, vinyl cards
"People make the difference here.
(such as temporary credit cards),
Management recognizes the
contributions we make on an
pressure sensitive labels,
hour by hour basis, assuring that
the best work is being done on
sweepstakes and game pieces,
behalf of our customers."
and stickers.
7
JUL-23-1992 10:36
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Maur
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P.017/029
UUTLOOK URAPHIOS VvAr.
CONVERTING
Converting and packaging services
National Basketball Association,
AND PACKAGING
comprised 54% of fiscal 1991 sales.
the National Football League and
These operations were strong
the National Hockey League. We
contributors to 1991 profits.
have diversified this area of our
Our packaging operation
operations outside of sports cards
performs film overwrapping
to include entertainment and other
functions for a variety of products.
collectible cards which offer growth
A popular example of this capability
opportunities.
is the folding and overwrapping of
Our sports card production
the napkins for Oscar Mayer's
expertise evolved from our earlier
Lunchables™ packages. Other
work on cards for board games
activities in this operation include
including Trivial Pursuit We also
overwrapping toys and other
convert recipe cards, children's
promotional items for inside cereal
picture cards and educational
boxes and packaging fabric softener
flasheards. Some of the specialized
sheets for laundry room vending
equipment used in this process has
machines. Outlook Graphics' food
been researched and developed by
grade clean room meets stringent
Outlook Graphics employees.
FDA standards for safety and
.
Our nowest packaging service is
quality.
the paperboard packaging
IN
A major activity of the
capabilities we introduced one year
converting and packaging area is
ago. We are pleased with the
Diane Kettner
our expertise in picture card
excellent market response for this
Diane Kettner
converting. This process involves
service, which utilizes paperboard
"In order to provide customers
printing the cards, cutting,
stock to print, die-cut, fold, glue and
with quality products and
services, you have to be a
trimming, collating, overwrapping
insert products and promotional
company made up of quality
people who care about their
and cartoning the cards for
items into folding cartons, blister
work. Like Outlook."
distribution. We currently produce
cards, pocket folders and other
cards for licensees of the American
point-of-purchase materials.
and National Baseball leagues, the
9
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Outlook Graphics Corp. and Subsidiary
CONSOLIDATED BALANCE SHEETS
May 31,
1991
1990
(in thousands, except share amounts)
ASSETS
CURRENT ASSETS
Cash and cash equivalents (note A)
$ 3,467
$ 440
Accounts receivable, less allowance for doubtful accounts of
$208 and $202 respectively
7,347
8,226
Notes receivable-current maturities (note B)
21
65
Recoverable funds from sale/leaseback (note J)
-
1,162
Inventories (notes A and C)
4,369
2,016
Prepaid expenses
285
125
Deferred income taxes (note H)
685
342
Other
295
177
Total current assets
16,469
7,553
PROPERTY, PLANT AND EQUIPMENT-AT COST
Buildings
5,651
4,006
Machinery and equipment
16,585
12,253
Machinery and equipment deposits
848
145
23,084
16,404
Less accumulated depreciation (note A)
4,387
3,520
18,197
12,884
Land
152
125
18,349
13,009
OTHER ASSETS
Equipment acquisition trust fund (note D)
2,985
605
Goodwill (notes A and K)
521
550
Notes receivable-less current maturities (note B)
89
95
Other
286
90
3,881
1,340
TOTAL ASSETS
$38,699
$21,902
LIABILITIES AND SYOCKNOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt (note E)
$ 426
$2,865
Accounts payable
2,201
667
Accrued liabilities
Salaries and wages
1,385
975
Payroll and other taxes
205
109
Interest
58
144
Other
241
119
1,889
1,347
Income taxes (note H)
-
672
Total current liabilities
4,516
5,551
LONG-TERM DEBT, less current maturities (note E)
4,409
7,005
DEFERRED INCOME TAXES (note H)
2,308
1,453
COMMITMENTS (note J)
-
-
STOCKHOLDERS' EQUITY (notes F and I)
Cumulative Preferred Stock, $.01 par value-authorized 1,000,000 shares; none issued
-
-
Common Stock, $.01 par value-authorized 15,000,000 shares; issued and outstanding,
5,055,382 and 3,489,885 shares, respectively
51
35
Additional paid in capital
18,280
2,077
Retained earnings
9,135
5,781
27,466
7,893
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$38,699
$21,902
The accompanying notes are an integral part of these statements.
17
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414 727 8529
P.025/029
Outlook Graphics Corp. and Subsidiary
CONSOLIDATED STATEMENTS OF EARNINGS
Year Ended May 31,
1991
1990
1989
(in thousands, except per share amounts)
Net sales
$43,275
$31,765
$17,292
Cost of goods sold
82,407
23,013
13,204
Gross profit
10,868
8,752
4,088
Selling, general and administrative expenses
4,499
4,014
2,601
Operating profit
6,369
4,738
1,487
Other income (expense)
Interest expense
(1,323)
(1,071)
(611)
Interest income
178
112
66
Other income
242
135
88
(903)
(824)
(457)
Earnings before income taxes
5,466
3,914
1,030
Income tax expense (note H)
2,112
1,505
374
NET EARNINGS
$ 3,354
$ 2,409
$ 656
NET EARNINGS PER SHARE (NOTE AI
$.92
$.69
$.21
Weighted average number of shares outstanding
3,651,023
3,471,471
3,094,152
The accompanying notes are an integral part of these statements.
18
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414 727 8529
P.026/029
Outlook Graphics Corp. and Subsidiary
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Additional
Common Stock
paid in
Retained
(dollars in thousands)
Shares
Amount
capital
earnings
Total
Balance at May 31, 1988 (note F)
2,919,852
$30
$ 732
$2,716
$ 3,478
Issuance of shares under stock
purchase plan (note G)
17,045
-
39
-
39
Issuance of shares in acquisition of
Outlook Label (note K)
536,245
5
1,262
-
1,267
Repurchase of shares
(17,333)
(88)
-
-
(38)
Net earnings for 1989
-
-
656
656
-
Balance at May 31, 1989
3,455,809
35
1,995
3,372
5,402
Issuance of shares under stock purchase
and stock option plans (notes G and I)
36,880
-
92
-
92
Repurchase of shares
(2,804)
(10)
-
-
(10)
Net earnings for 1990
-
-
-
2,409
2,409
Balance at May 31, 1990
3,489,885
35
2,077
5,781
7,893
Issuance of shares under stock option
plan (note I)
4,125
-
9
-
9
Issuance of shares in initial public
offering (note F)
1,561,372
16
16,195
-
16,211
Net earnings for 1991
1
-
1
3,354
3,354
Payment of fractional shares
-
-
(1)
-
(1)
Balance at May 31, 1991
5,055,382
$51
$18,280
$9,135
$27,466
The accompanying notes are an integral part of these statements.
19
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414 727 8529
P.027/029
Outlook Graphics Corp. and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
1991
1990
1989
Year Ended May 31,
(in thousands)
Cash flows from operating activities:
Net earnings
$3,354
$2,409
$ 656
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization
1,694
1,284
803
Deferred income taxes
512
343
123
Other
(7)
(5)
(23)
Change in assets and liabilities net of
effects from purchase of business:
Increase in accounts receivable
(4,121)
(159)
(853)
(Increase) decrease in inventories
(2,353)
313
(911)
Increase in prepaid expenses
(160)
(11)
(66)
Increase in other current assets
(118)
(125)
(34)
Increase (decrease) in accounts payable
1,534
(937)
641
Increase in accrued liabilities
542
547
182
Increase (decrease) in income taxes
(672)
552
(10)
Net cash provided by operating activities
205
4,211
508
Cash flows from investing activities:
(Increase) decrease in recoverable funds from sale/leaseback
1,162
(1,162)
I
Acquisition of property, plant and equipment
(6,950)
(3,449)
(4,265)
Increase in equipment acquisition trust fund
(2,380)
(605)
I
Proceeds from notes receivable
65
333
186
Proceeds from sale of equipment
39
147
157
Change in other assets
(50)
(70)
(4)
Business acquired, net of cash received
-
-
(212)
Net cash used in investing activities
(8,114)
(4,806)
(4,138)
Cash flows from financing activities:
Net payments under revolving credit agreement
(1,600)
(635)
(275)
Proceeds from long-term borrowings
8,601
2,200
4,549
Proceeds from net issuance of Common Stock
16,219
82
1
Payments on long-term borrowings
(12,036)
(612)
(782)
Change in other assets
(248)
-
I
Net cash provided by financing activities
10,936
1,035
3,493
Net increase (decrease) in cash and cash equivalents
3,027
440
(137)
Cash and cash equivalents at beginning of year
440
-
137
CASH AND CASH EQUIVALENTS
AT END OF YEAR
$ 3,467
$ 440
$ -
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest
$ 1,409
$ 990
$ 572
Income taxes
2,393
609
260
Supplemental disclosures of non-cash investing and financing activities:
During 1989, the Company acquired all of the common stock of Outlook Label and acquired fixed assets from
Olympic Partnership in exchange for 536,245 shares of Common Stock and $250,000 in cash (see Note K).
Liabilities were assumed as follows:
Fair value of assets acquired
$3,480
Cash paid
(250)
Stock issued
(1,267)
Liabilities assumed
$1,963
On September 1, 1989, the Company issued 1,157,052 shares of Common Stock in a 3-for-2 stock split effected in
the form of a 50% stock dividend. On August 3, 1990, the Company issued 2,223,418 shares of Common Stock in a
2.75-for-1 stock split effected in the form of a 175% stock dividend.
20
The accompanying notes are an integral part of these statements.
JUL-23-1992 10:42
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Outlook Graphics Corp. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A-SUMMARY OF
NOTE B-NOTES RECEIVABLE
ACCOUNTING POLICIES
Notes receivable consist of the following (in thousands):
A summary of the Company's significant accounting
1991
1990
policies consistently applied in the preparation of the
accompanying consolidated financial statements follows.
11% note, due June 28, 1990,
including interest (1)
$ -
$ 47
PRINCIPLES OF CONSOLIDATION
11% note, due September 28, 1994,
The consolidated financial statements include all the
receivable in annual payments
accounts of Outlook Graphics Corp. and Outlook
of $30,595, including interest (1) 95
113
Label Systems, Inc. ("Outlook Label") (a wholly
10% note due April 15, 1994,
owned subsidiary formerly known as Olympic Label
receivable in monthly
Systems, Inc.). All intercompany accounts and trans-
installments (2)
15
$
actions have been eliminated in the preparation of
110
160
the consolidated financial statements. The Company
Less current maturities
21
65
operates in a single industry segment, graphic services.
$ 89
$ 95
During the year ended May 31, 1991, 43% of the Company's
net sales, and 56% of the accounts receivable balance
(1) Collateralized by a guarantee from the
at May 31, 1991, relate to the production of sports and
parent company of the borrower.
other collectible picture cards.
(2) Collateralized by equipment.
REVENUE RECOGNITION
Revenue is recognized when services have been
Future maturities of notes receivable as of May 31,
completed and the product has been shipped.
1991, are as follows (in thousands):
1992
$ 21
CASH AND CASH EQUIVALENTS
30
Cash and cash equivalents include cash on hand.
1993
demand deposits and short-term investments with
1994
32
1995
27
maturities of three months or less.
$110
The Company maintains its cash balance in several
financial institutions in Wisconsin. These balances
are insured by the Federal Deposit Insurance
Corporation up to $100,000 per institution. At May 31,
1991, uninsured amounts held at these financial
NOTE C-INVENTORIES
institutions aggregate to $4,473,000.
Inventories consist of the following (in thousands):
INVENTORIES
1991
1990
Inventories are stated at the lower of cost or market.
Cost is determined using the first-in, first-out method.
Raw materials
$2,485
$1,526
Work in process
1,884
490
DEPRECIATION
Depreciation is provided for in amounts sufficient to
$4,369
$2,016
relate the cost of depreciable assets to operations
over their estimated service lives, on a straight-line
basis as follows:
Buildings
10-40 years
NOTE D-EQUIPMENT ACQUISITION
Machinery and equipment
5-10 years
TRUST FUND
Accelerated methods are used for tax purposes.
As discussed in Note E, the Company obtained proceeds
of $835,000 from the sale of industrial development
GOODWILL
bonds. During September 1990, the Company obtained
The excess of cost over the fair value of assets
an additional $4 million from the sale of industrial
acquired in the purchase of Outlook Label is being
development bonds. Unexpended funds are held by a
amortized on the straight-line basis over a period of
bank under a trust agreement and will be used to pur-
20 years. Accumulated amortization is $64,000 and
chase new machinery and equipment.
$35,000 at May 31, 1991 and 1990.
EARNINGS PER SHARE
Net earnings per share is computed based on the
weighted average number of shares of stock out-
standing during each year.
21