Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
323154164
label
Outlook Graphics--Wisconsin 7/27/92 [OA 7577] [2]
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
323154164
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
ebc1cd4df61d003e
ocrText
Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13823 Folder ID Number: 13823-006 Folder Title: Outlook Graphics--Wisconsin 7/27/92 [OA 7577] [2] Stack: Row: Section: Shelf: Position: G 26 22 6 6 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 THE WHITE HOUSE WASHINGTON July 24, 1992 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: STEVEN PROVOST Mer fasp FROM: ANDREW FERGUSON a7 SUBJECT: OUTLOOK GRAPHICS NEENAH, WISCONSIN I. SUMMARY On Monday, July 27, at 2:00 p.m., you will deliver remarks (17 minutes, on prompter) to approximately 700 employees of Outlook Graphics Corporation. II. DISCUSSION This speech is almost identical to the Michigan draft, with the exception of the introductory remarks on the first page, the Youth Apprenticeship section on page 5, and remarks about the Democratically controlled Congress on page 8. In addition, cuts have been made to compensate for the additional material on youth apprenticeship. Note: Outlook Graphics is a manufacturer of sports trading cards, including a George Bush series; hence, the joke on page 1. (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. 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. # # THE WHITE HOUSE WASHINGTON July 24, 1992 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: STEVEN PROVOST Mer fasp FROM: ANDREW FERGUSON at SUBJECT: OUTLOOK GRAPHICS NEENAH, WISCONSIN I. SUMMARY On Monday, July 27, at 2:00 p.m., you will deliver remarks (17 minutes, on prompter) to approximately 700 employees of Outlook Graphics Corporation. II. DISCUSSION This speech is almost identical to the Michigan draft, with the exception of the introductory remarks on the first page, the Youth Apprenticeship section on page 5, and remarks about the Democratically controlled Congress on page 8. In addition, cuts have been made to compensate for the additional material on youth apprenticeship. Note: Outlook Graphics is a manufacturer of sports trading cards, including a George Bush series; hence, the joke on page 1. (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. 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. # # Banta Corporation River Place FOXCITIES 227 S. Walnut Street 225 Main Street P.O. Box 1855 Box 8003 CHAMBER OF COMMERCE & INDUSTRY Appleton, WI 54913-1855 Menasha, WI 54952-8003 (414) 734-7101 414 722 7777 Toll Free 1-800-999-3224 BANTA James E. Milslagle Gregory S. Hunt CORPORATION Vice President, Human Resources Vice President Economic Development OUTLOOK GRAPHICS OUTLOOK GRAPHICS: YOUR INNOVATIVE PARTNER Lunchable T 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. OUTLOOK GRAPHICS As EXPERTS IN THE PRODUCTION OF PRINTED PROMOTIONAL MATERIALS, OUTLOOK GRAPHICS SERVES AS A PRIMARY SUPPLIER TO OSCAR MAYER FOODS CORPORATION. IN ADDITION TO PRINTING, OSCAR MAYER RELIES ON US FOR THE ENGINEERING, MANUFACTURING, PACKAGING AND INSERTING OF SPECIALTY ITEMS — LIKE THE POLYWRAPPED LUNCHABLES™ NAPKINS - IN THEIR date freshness 7 days beyond CONSUMER FOOD PRODUCTS. THE Mauer LUNCHABLE ESTM PROGRAM ILLUSTRATES THE UNOPENED shown 8f 40°F when or stored below. COMBINED POWER OF INNOVATION, TECHNOLOGY AND INDUSTRY EXPERIENCE, ELEMENTS Lunchables LUNCH COMBINATIONS Del KEEP Mayer Months BARG 100% step UNITED behables THE LUNCH MINATIONS NETWI 4.50Z OUTLOOK GRAPHICS 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 CHARLIE BROWNS PARTY laboratory, uses a form of statistical process control to ensure MIX that your job has a 99% AQL. ChexCereals Our capabilities include overwrapping clear or printed film YEARS in single or continuous formats. Outlook's one-of-a-kind food grade clean room has met stringent FDA standards, SAVE an any size, any Happy flavor size, 20¢ assuring safety and quality. Most importantly, it has received the enthusiastic approval of many leading U.S. SELECT consumer products companies. Need to overwrap coupons, premiums, foods or product samples? At Outlook, the best is guaranteed. to Protectings FOLDING CARTONS NEW! Outlook can help you produce custom paperboard packages INSURA PLAN ANCE that make your customers sit up and take notice. Whether you want one-color printing or five-color, standard paper or heavy ideals 8000 new stock, special die cuts, gluing or crash lock bottoms, Outlook (ewhem? BLAK RATAGE frome siel Opional Benefits Guaranteed Wide Available Variety Rates Required of Plans Scoilailable Covere NCH can do it all. Really want to make an impression? to hear hear THERE you Consider embossing, cellophane windows or Wantsuld Compet Home Ideals tipped-down coupons or premiums. SPECIAL OFFER Chocolate HERSHIYS Choeolate AMEX Nursing Trust Outlook to create a production line that includes package design, printing, die cutting, folding, gluing and inserting your product in-line. And, of course, we'll pack and into ship to your distribution points, if you like. One call does it all. ideals to Ideals. FREE receive Return this your decide book order absolutely card and 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 collating, 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 Midwestern 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. GRAPHICS REPRODUCTION Brokerage Services 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. ASSOCIATED 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 EMI carton, card converting, or mailing capabilities, and you've discovered a rare treasure in the graphics industry. PARKER LABELS COUPONS VINYL CARDS P-O-S 1988 ROBERT PEPI Outlook's extensive graphic capabilities are complemented by SAUVIGNON NAPA VALLEY the printed promotional products offered by our label division, COIN -VENDED SIZE Outlook Label Systems. Housed in its own 90,000 square foot facility, Outlook can create virtually any narrow-web produced piece needed. From single and continuous coupons, to dual-ply OLYMPIA Scented SOFTE 9x11 2 SHE instant redemption coupons, the options are many, with 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 LANDOLAKES even take it a step further by offering complete finishing Deli Meister services, such as affixing cards and labels to forms. Turkey Pastrami Smoke Caramel Coloring Added 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. SKYBOX SKYBOX BASKETBALL CARDS 1990-91 SEASON 1990-91 SEASON CARD CONVERTING Inaugural Edition 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. CARDS 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. Og OUTLOOK GRAPHICS CORP. 1180 AMERICAN DRIVE NEENAH, WISCONSIN 54956 414-722-2333 (FAX) 414-727-4787 OUTLOOK LABEL SYSTEMS 2411 INDUSTRIAL DRIVE NEENAH, WISCONSIN 54957-0775 414-722-1666 (FAX) 414-722-0008 © 1990 Outlook Graphics Corp. outlook graphics DIRECT MAIL AND FULFILLMENT Zaandam Wrapper Kraft wrapping Min. book size 3⁵/1₆" X 3¹/₈" Max. book size 11³/₄" X 15" X 1½" Six Kirk-Rudy Labelers Seven Inserters (Inscerco) Two 6-pocket Four 8-pocket One 4-pocket Max. envelope size 6" X 9" One Kirk-Rudy Stamp Affixer Two Mastermailer Inserters (Inscerco) 6 pockets Max. envelope size 9" X 12" Two Pitney Bowes 6100 Meter/Stackers Kirk-Rudy Tipper Two Ritmica H30 High Speed Overwrappers Length 45/8" to 15" Width 4" to 12" Height ¹/₁₆" to 1³/16" In-line labeling capabilities FMC WA 720 Overwrapper Adjustable sizes High-speed (production speed depends on type of product) Singles, multiples, or trays Length 1" to 36" Width 5" to 8½" Height ¹/₁₆" to 25/8" Two Doboy SK Super Mustang Overwrappers Adjustable sizes High-speed (production speed depends on type of product) Singles, multiples, or trays Length 4" to 15" Width 5" to 8½" Height up to 1/2" Uniflow Shrink tunnel Adjustable sizes Weldotron Shrink Wrapper Max. size 14" X 32" x6" Min. 50 gauge shrinkfilm up to 2-, 3- or 4-mil poly Two Labelaire Pressure Sensitive Labelers Cheshire Jetstream II Ink Jet Addressing System BINDERY AND FINISHING Herzog & Heymann Folder 3 units 28¹/₂" X 40" Herzog & Heymann Pharmacy Folder 2 units 3/4" in each station In-line glue attachment Stahl Folder 3 units 20" X 24" Stahl Folder 3 units 22" X 35" Stahl Folder 3 units 26" X 40" Dexter Lawson Drill Max. size 9" X 20" 5-hole drilling Dexter Lawson Automatic Drill Max. size 10" X 15" 6-hole drilling Hang Heavy-duty Drill Max. size 19" X 25" 5-hole drilling Challenge Drill Harris Saddle Stitcher 6 pockets Min. 35/16" X 5³/4" Max. 11" X 17" Cover feeder Card feeder Ten Polar 155 EMC Monitor Programmable Trimmers 61" bed Fifteen Polar 137 EMC Monitor Programmable Trimmers 55" bed Colly Collator 36 stations Min. 4" X 6" Max. 12¹/₂" X 18½" Two Colly Collators 72 stations Min. 4" X 6" Max. 12¹/2" X 18½" Ehlermann Adjustable Collator 21 stations Min. size 11" X 17" Max. 25" X 38" Brackett Auto Padder 6 stations Uchiba 2000 Batch Counter Max. size 26" X 40" Baum Burster Length 3" to 28" Width 3" to 18½¹/₂" Graeber Whirlwind 185 Hang Tag Machine Transamat 145 Off-loading System Bourg Collator 53 stations Min. 4" x6" Max. 11" X 17" Rollem Slipstream Slitter Collator Max. sheet size 36" X 42" Min. sheet size 18" 21" Finished card size 2½" x3½" DESKTOP PUBLISHING AND PRINT PRODUCTION Three Desktop Workstations Macintosh Quadra 900 Macintosh IIci Macintosh LC Software Applications QuarkXPress 3.0 Pagemaker 4.2 Aldus Preprint 1.5 Photoshop 2.0 Adobe Illustrator 3.2 Aldus Freehand 3.1 Microsoft Word 4.0 Misomex 726 Step and Repeat Machine 3 chase sizes: 32" X 32"; 16" X 20"; 11" X 14" ±.0004 repeatability Film or plates CARD CONVERTING The equipment and production techniques of the Graphics Reproduction, Film Overwrapping, Folding Carton, and Bindery and Finishing areas are used to provide complete card converting services. S-3/REV. 3-92 outlook graphics GRAPHICS REPRODUCTION Heidelberg 102 FP+L CP Tronic 5-Color Perfector Press 283/8" X 40¹/₈" Tower coater Heidelberg 102 F CP Tronic 5-Color Press 28³/₈" X 40¹/₈" Tower coater Heidelberg 102 F CP Tronic 5-Color Press 28³/₈" X 40¹/₈" Two Komori Lithrone 644 6-Color Presses 329/32" X 44½" Tower coater Komori Lithrone 640 6-Color Press 28¹¹/₃₂" X 40⁹/16" Tower coater Heidelberg 102 ZP 2-Color Perfector Press 28³/8" X 40¹/₈" Heidelberg MO 6-Color Press 19" X 25½" Infrared dryer Heidelberg MO 2-Color Press 19" X 25½" Halm Super Jet Envelope Perfector Press 2-color 12" X 18" Heidelberg Cylinder Letterpress 22" X 30" Heidelberg Windmill Letterpress 10" X 12" Miehle Letterpress 12" X 18" NON-HEAT SET WEB Webcom 4-Color Press 17½" x22" LABELS AND COUPONS Mark Andy 4200 8-color 16" Mark Andy 4120 8- color 16" Mark Andy 2100 10- color 7" Mark Andy 2100 6- color 7" Mark Andy 2200 6- color 7" Mark Andy 830 3- color 7" Sanjo Rotary Letterpress 8-color plus varnish 10" Arpeco Tracker 16" Used for splitting, rewinding, counting, and final inspection Arpeco Tracker 10" Used for splitting, rewinding, counting, and final inspection Tamarack Card Affixer Communicator Card and Sheet Affixer Willette Blow-on Label Applicator LSI Blow-on Label Applicator Auto-Labe Wipe-on Label Applicator Quadrel Labeler FILM OVERWRAPPING Cleanroom facilities for food-grade packaging Nine FMC WM-18 Synchroflo Wrappers Production speed depends on type of product Adjustable sizes Six WS-18 Synchroflo Wrappers Production speed depends on type of product Adjustable sizes Twenty-seven FMC WS-20 Servo Horizontal Wrappers Four Model NBN Napkin Machines Length 10" to 18" Width 8" to 18" Min. fold 1½ "x2" Shipping and warehousing available upon request FOLDING CARTONS Maxson 64" Sheeter Shaftless unwind Bobst 1080E Die Cutter Max. sheet size 40" X 28 Bobst 1120E Die Cutter Max. sheet size 31½"2" X 44½" Staude Gladiator Window Patch Gluing and Lining Machine International Speed King Folder/Gluer 47" Jagenberg Diana 115-3 Folder/Gluer 45" Faustel Metal Tear Edger Series D Blank max. 24" Metal max. 18" Jacob White Cartoner R-600 Length 1³/₄" to 7½" Width 1" to 4" Depth 4½" to 14" Jacob White Cartoner R-615 Length 21/2" to 10" Width 7/8" to 4" Depth 35/8" to 11" FOXCITIES A Produced by the FOXCITIES CHAMBER OF COMMERCE & INDUSTRY In conjunction with the FOX CITIES GROWTH ALLIANCE 227 S. Walnut, P.O. Box 1855 Appleton, WI 54913-1855 (414) 734-7101 Toll Free 1(800) 999-3224 LITTLE CHUTE APPLETON KAUKAUNA COMBINED LOCKS FOX RIVER KIMBERLY MENASHA NEENAH LAKE - WINNEBAGO 0 WINNERS. FOX CITIES X GREEN BA- AW MIDWALKEE MASSON CHCAGO 227 S. Walnut Street FOXCITIES 227 S. Walnut Street P.O. Box 1855 P.O. Box 1855 FOXCITIES Appleton, WI 54913-1855 Appleton, WI 54913-1855 CHAMBER OF COMMERCE & INDUSTRY Toll Free 1-800-999-3224 (414) 734-7101 FAX 414-734-7161 CHAMBER OF COMMERCE & INDUSTRY Toll Free 1-800-999-3224 FAX (414) 734-7161 Gregory S. Hunt Lynn R. Peters Vice President Director, Business-Education Partnerships Economic Development (414) 734-7101 Background Information on: FOX VALLEY EDUCATION FOR EMPLOYMENT CONSORTIUM Striving to Create Wisconsin's Finest Workforce In 1985 Wisconsin's legislature enacted an "Education for Employment" standard, requiring that each school district in the state refocus its mission by recognizing the key role it plays in job preparation and economic development. In 1988 a dozen Fox Valley area school districts banded together in and undertook the project as a group. Together they set priorities and created the Fox Valley Education for Employment Council to steer their efforts. Today the Fox Valley Education for Employment (EFE) Council, made up of equal numbers of business leaders and educators, is leading partnership efforts in the area, and providing a model other organizations have sought to emulate. Activities Recognizing that educators need to know more about the world of work in order to best help students, the Council put together an Externship Program which to date has allowed 23 teachers to spend time in industrial settings. It has convinced area companies to "share the wealth" when they do in-house training programs, and 85 educators have participated in such training programs at three different companies. In an effort to help students, teachers and families to focus on and develop non- academic employability skills, a Council task force has invested a year developing a program called Job Readiness Rating. It is expected that half of the districts will begin implementation of the program in the fall of 1992, with a goal of having all 12 districts involved by 1993. The Council has hosted a Paper and Printing Symposium annually, bringing leaders from these two major industries together with more than 500 students. The EFE Council also agreed this spring to take on one of Wisconsin's three Youth Apprenticeship Pilot Projects, and expects to have at least eight student apprentices working in the printing industry in fall of 1992. Relationship with the Fox Cities Chamber of Commerce In 1990 the school districts involved in the Education for Employment Consortium determined that their efforts would move much faster if they had someone to act as a liaison between business and industry. The Fox Cities Chamber of Commerce agreed to hire someone to do that, and provide that person's services to the districts involved in the Consortium. In essence a member of the Chamber of Commerce staff serves as director to the Consortium, guiding and directing its activities. The Fox Valley Education for Employment Consortium's YOUTH APPRENTICESHIP PILOT PROGRAM PRINTING Background The Fox Valley Youth Apprenticeship pilot project is approved by the State of Wisconsin and made possible by the Department of Public Instruction and the Department of Industry, Labor and Human Relations. The project itself has been put together by the Fox Valley Education for Employment Council which is affiliated with the Fox Cities Chamber of Commerce and Industry. Purpose This pilot project offers Fox Valley students an opportunity for an entirely different kind of education and at the same time provides a model Youth Apprenticeship Program which can be emulated by other communities. The foundation of economic life in the Fox Cities since the mid-1800s has been the paper industry and its allied industries. The apprenticeship program is designed for the printing industry. Printing is one of the elements in the manufacturing sector that is thriving in and integral to the area. How The Program Works Students from all 12 school districts participating in the Education for Employment Consortium may apply. Applicants must be starting their junior year of high school. Students are interviewed by participating companies. Those selected begin their youth apprenticeships in the fall. Youth Apprentices will spend three days a week working in the printing industry and two days in classes. They will take both required courses and specialized courses in printing. Each Youth Apprentice will receive a high school diploma and Certificate of Occupational Proficiency. With these two documents, the student will then be able to go directly to work in industry, to participate in a registered apprecticeship, to pursue an associate degree from a Wisconsin technical college, or to apply to a four-year university. Youth Apprentices will be paid for time spent working and learning at an area printing company. Youth Apprentices will be offered the opportunity to visit Germany in an exchange program sponsored by CDS International (formerly the Carl Duesenburg Society). Consortium Members Reprentatives from the following school districts work with business leaders in the Fox Valley Education for Employment Consortium: Appleton, Freedom, Hilbert, Hortonville, Kaukauna, Little Chute, Manawa, Menasha, Neenah, Omro, Shiocton and Winneconne. ECONOMIC PROFILE APPLETON/ FOX CITIES WISCONSIN The Fox Cities is one of the largest and sprang up along the banks of the Fox fastest growing metropolitan areas in River in the 1800s, and have continued to Wisconsin. With a population of more attract people and businesses ever since. than 170,000, the Fox Cities area is Many of the nation's leading paper comprised of 11 municipalities-four companies were started in the Fox Cities, cities, three villages and four towns. and their development has paralleled the area's growth and diversification. In 1991, more than $604 million worth of commercial and industrial projects were Today, in addition to the paper industry, either announced or completed in the Fox companies engaged in plastics, printing Cities. These projects will ultimately and graphic arts, machinery, metals and create more than 3,000 new jobs. Related electronics are all thriving elements of the signs of new residential construction are Fox Cities manufacturing sector. Due to everywhere and the area leads the state in Fox Cities the area's highly-educated work force, land valuation growth. service industries flourish in the area, too. Six insurance companies as well as a host Fortune magazine recently listed the WISCONSIN of financial institutions call the Fox Cities Appleton/Fox Cities market as one of six home. mid-sized markets most conducive for companies thinking about a move and an The Fox Cities area promotes itself as "A attractive locale in which to do business. Refreshing Change of Place" to under- score the fact that the Fox Cities has many Opportunity and quality of life attracted of the fine qualities which businesses and people to the Fox Cities when paper mills families look for in selecting a new location. POPULATION 1980 1990 Percent Community Census Census Change Change Fox Cities-Oshkosh MSA 291,369 317,658 26,289 9.0% Outagamie County 128,730 140,510 11,778 9.1% Winnebago County 131,772 140,320 8,550 6.5% Calumet County 30,867 34,291 3,424 11.1% Fox Cities Urban Area 155,034 171,147 16,113 10.4% City of Appleton 58,915 65,695 6,780 11.5% City of Neenah 22,432 23,219 1,787 3.5% City of Menasha 14,744 14,711 -33 -0.2% City of Kaukauna 11,310 11,982 1,672 5.9% CLIMATE The average season temperatures: Spring 44° F The Fox Cities area enjoys a continental climate characterized by Summer 70° F four distinct seasons, affording residents and visitors excellent Fall 40° F opportunities for diverse outdoor recreational activities. Winter 19° F Average annual rainfall 28 inches Average annual snowfall 46 inches EMPLOYMENT Transportation/ Public Utilities Government 3.9% 11.1% Total Trade Construction & 21.6% Mining 4.7% Appleton-Oshkosh-Neenah Number of MSA Annual Non-Farm Employees Employment Averages-1990 1990 Manufacturing 53,800 Services 32,900 Retail Trade 28,100 Finance, Transportation & Utilities 6,300 Ins. & Wholesale Trade 6,500 Real Estate Finance, Insurance & Real Estate 7,700 4.8% Construction & Mining 7,600 Government 17,800 Services Manufacturing 20.5% 33.5% MAJOR EMPLOYERS Number Firm Product or Service Employees Kimberly-Clark Corporation Tissue products for personal care 5,300 Appleton Papers Inc. Carbonless and specialty coated papers 2,700 Novus Health Group Health care providers 2,400 Miller Electric Mfg. Co. Electric arc welders 1,550 Menasha Corporation Corrugated containers 1,500 Wisconsin Tissue Mills Paper napkins, table covers, etc. 1,450 Plexus Corp & Affiliates Electronic design, manufacturing & testing 1,400 Thilmany Specialty papers 1,372 Aid Association for Lutherans Fraternal benefits and financial services 1,354 Outagamie County County government 1,334 St. Elizabeth Hospital Hospital 1,316 Appleton Area School District Education 1,254 Neenah Foundry Company Gray and ductile iron castings 1,220 American National Can Company Packaging cartons and wraps 1,200 Repap Wisconsin Inc. Specialty Papers 1,100 Pierce Manufacturing, Inc. Fire and utility truck bodies 1,100 1991 Estimates of Local Employment AVERAGE HOURLY WAGE RATES Appleton-Oshkosh-Neenah MSA-1990 Educational Attainment-1987 Secretaries $7.78 Grade School or less 3% Word Processors 7.76 Some High School 5% Data Entry Operators 6.67 High School 90% Accounting Clerks 7.43 Tech School Graduate 8% Payroll Clerks 7.67 Some College 15% File Clerks 5.63 College Graduate 11% Order Clerks 7.75 Post Graduate 4% Receptionists 6.27 Computer Systems Analysts 14.42 The average annual high school dropout rate for the Fox Cities- Computer Programmers 12.14 Oshkosh MSA is less than 2 percent. Computer Operators 7.97 2 EDUCATION Educational resources in the Fox Cities are among the finest in the country. Area students consistently exceed the national and state averages in measure of performance. This is significant as Wisconsin is consistently one of the top five states in scoring on the national ACT test score averages. The U.S. Department of Education has repeatedly recognized area schools for their scholastic excellence. The following post-secondary educational Number of K-12 Public & Private Schools facilities serve the Fox Cities: Public Parochial Average Colleges and Universities Annual Enrollment Schools Schools Lawrence University, Appleton 1,200 Elementary 40 37 St. Norbert College, De Pere 1,800 Junior High 9 2 University of Wisconsin High School 8 3 Campus in Oshkosh 11,200 Total Enrollment 44,000 5,800 Campus in Green Bay 5,500 Center in Menasha 1,500 Technical and Vocational Standardized Test Results Based on mean scores reported in the nation, Wisconsin students Fox Valley Technical College 5,000 ranked first on the American College Test (ACT) during the Ranks among top three voc/ed schools 1988-89 testing period. in the nation according to American Vocational Association TRANSPORTATION Air Service Trucking Located just two miles west of Appleton, the Outagamie County More than 60 trucking and warehousing firms serve the Fox Airport is a Class A airport approved for jet operation and Cities area. provides a full contingent of passenger, charter flight, and repair Rail Service services. It is one of the fastest-growing airports in Wisconsin. Rail freight service is provided by Fox River Valley Railroad and Four commercial airlines provide non-stop service to Chicago, Wisconsin Central Limited Line. Cincinnati, Milwaukee and Minneapolis. Overnight, express Public Transit parcel, air freight services and facilities for private aircraft also are available at the airport. Wittman Field in Oshkosh and Austin Valley Transit provides local and inter-city commuter service to Straubel Field in Green Bay provide additional commercial air residents of the Fox Cities metropolitan area. Inter-regional bus service within 30 miles of Appleton. service is available via Greyhound Bus Lines and Wisconsin Highways Michigan Trailways. Special elderly and handicapped services also are available. Transportation in and around the Fox Cities is fast and efficient. Water Transportation Facilities In fact, the area has been ranked in the top 10 communities nationally having the shortest commuting times to and from The Port of Green Bay, 30 miles to the north, and the Port of work. The average travel time to work for city residents is 14.6 Milwaukee, 100 miles south of Appleton, provide easy access to minutes. Main thoroughfares include U.S. Highways 10, 41 and the Great Lakes. Both ports handle general cargo, heavy 45. Secondary passages are State Highways 47, 55, 76, 96, 114 industrianery and equipment, and liquid and dry bulk cargoes. and 441. Truck and rail services link the Fox Cities to these ports. UTILITIES/SERVICES Electric Utilities Gas Utilities groundwater wells. Three electric utilities-Wisconsin Two gas utilities-Wisconsin Natural Gas Sewage Treatment Electric Power Company, Menasha Water and Wisconsin Gas Company-provide Four sewage treatment plants serve the & Electric Utilities, and Kaukauna ample and reliable supply of natural gas to area. All four plants treat activated sludge Electric & Water Department-provide the Fox Cities. and use agricultural land spreading as their electric service to the area. Area electric Water Supply method of disposal. Adequate capacity is rates are approximately 30% below Sources of high-quality, fresh water are available for new industry. those in most metropolitan areas. abundant in the Fox Cities. Water supplied by publicly-owned water utilities is drawn from Lake Winnebago or from COMMUNICATIONS Companies are looking to Wisconsin Telecommunications exchange Point of Presence in Appleton. because of its pro-business climate; central Wisconsin Bell (a subsidiary of Fiber Optics time zone location; extensive deployment Ameritech) provides local and intra-state Fiber optic cable is rapidly being deployed of digital and fiber optic technologies, and phone service utilizing analog, digital and in the Fox Cities. For instance, Wisconsin a well-educated, highly-productive fiber optic equipment. AT&T, MCI, US Bell has more than 45 miles of fiber optic workforce which speaks in a clear, easily- Sprint and 20 other interchange carriers cable in the area. Norlight Telecommuni- understood manner. provide long distance service. In addition, cations also serves the Fox Cities and has AT&T, MCI and US Sprint have an inter- a Point of Presence in Appleton. GOVERNMENT / DEVELOPMENT INCENTIVES Government Each of the three counties has an elected business. These efforts have resulted in Fund (Major Economic Development county executive and board of supervisors. Wisconsin businesses having one of the Program, Customized Labor Training The four cities-Appleton, Neenah, lowest total tax burdens in the Fund, Technology Development Fund) Menasha and Kaukauna-have elected nation. Wisconsin state taxes include a and other specialized programs. Local mayors and city councils. Other incorpo- corporate income tax of 7.9%, individual Programs: Well-educated, highly-skilled rated areas are called villages and have income tax ranging from 4.9% to 6.93%, work force that is up to 30 percent more elected village presidents and boards of (a 60% capital gains exemption is avail- productive than the national average, 11 trustees. Unincorporated areas are known able), retail sales tax of 5%, and gasoline inexpensive business parks ($18,000 per as towns and have elected town chairmen tax of 20 cents per gallon. Local property acre average) with highway access, and boards of supervisors. tax rates (per $1,000 of assessed value) subsidized employee recruitment & Taxes range between $26.18 and $33.06 and training, IRBs, Tax Incremental Financing In recent years, Wisconsin has made average $30.39. as well as site/building location & numerous positive tax changes affecting Development Incentives selection assistance. State Programs: Wisconsin Development COST OF LIVING Paychecks go farther in the Fox Cities computed by the American Chamber of Cities is well below the national average. since the area boasts a very affordable cost Commerce Researcher's Association The average sale price of a house in the of living. In fact, the composite index indicates that the cost of living in the Fox Fox Cities is under $75,000. HEALTH CARE Four area hosptials-Appleton Medical combined capacity of nearly 1,000 beds more than 350 physicians and nearly 130 Center, Kaukauna Community Hospital, and offer a complete range of high-quality dentists. In a recent study, the Fox Cities St. Elizabeth Hospital, and Theda Clark health care programs and facilities. The ranked among the least expensive regions Regional Medical Center-have a Fox Cities health care network includes in the U.S. for hospital and physician care. QUALITY OF LIFE The Fox Cities offer numerous high- ping, minor league baseball, community boating facilities along one of the nation's quality golf courses, fascinating museums, festivals, greyhound and stock car racing, largest, inland, fresh water lakes. live and movie theaters, abundant shop- state park, nature preserves and many FOR MORE INFORMATION To learn more about the advantages of a Fox Cities business location, please contact: FOXCITIES CHAMBER OF COMMERCE & INDUSTRY Greg Hunt, Vice President Economic Development Phone 227 S. Walnut Street, P.O. Box 1855 414-734-7101 FAX 414 734-7161 Appleton, WI 54913-1855 800-999-3224 CITIES/COVER STORIES THE BEST CITIES FOR BUSINESS Finding skilled, reliable employees may be companies' most important challenge in the Nineties. Here are the sometimes surprising places to look for America's top workers. by Patricia Sellers THE ALLURE OF SMALLER CITIES Companies shopping for locations Cost concerns also prompt companies to should consider a lesson car buyers go to midsize cities like Wichita (493,251), learned years ago: Small to midsize models where white-collar salaries average just over often do the job more efficiently than bigger, $19,000 a year, vs. the U.S. average of $25,326. better-known alternatives. As growth of the Fort Myers (332,903), Albuquerque (509,950), labor force slows and the need for quality and Colorado Springs (409,193) are all grow- workers intensifies, more companies will ing fast and offer ample labor. Fort Myers is place operations in smaller cities. Among diversifying its tourism-based economy; with those that caught Fortune's attention: Al- a large elderly population and low wages, it buquerque, New Mexico; Appleton, Wis- seems attractive for back-office operations. consin; Colorado Springs, Colorado; Fort Companies in small areas where the qual- Myers, Floria; Spokane, Washington; and ity of life is high and the stress level low enjoy Wischita, Kansas. a stable work force. Neil Davenport, CEO of Moran Stahl & Boyer surveys reveal Cray Computer in Colorado Springs, says, that the overall quality and productivity of "We find that people often would rather stay employees in these cities is significantly in Colorado Springs than move to advance higher than in large cities, partly because their careers--which at times strikes me as of superior school systems. In Spokane odd." Smaller cities often earn high marks (metropolitan area. population: 363,078), for employees' work ethics. In Appleton schools are among the best in a state noted for (317,429) absenteeism is markedly low-- exemplary education. and when Wisconsin's daunting winter sets in, employees have been known to go to work on snowmobiles. -Antony J. Michels Reprinted from Fortune October 22, 1990 "REFRESHING (414) 734-3358 Appleton, WI 54915 110 Fox River Drive and Visitors Bureau Fox Cities Convention m CHANGE/PLACE Fox Cities Fox Cities Fox Cities Convention and Visitors Bureau 110 Fox River Drive Appleton, WI 54915 (414) 734-3358 Wisconsin You're Among Friends G et ready for a refreshing change of place in filled with the grand homes of other former paper CLASSIC ARTS DINNER THEATRE in Appleton is a the Fox Cities of east central Wisconsin -the industrialists, as well as two beautiful parks along great place for an afternoon or evening of comedy, perfect getaway! Located along the picturesque Fox the Fox River. music and fun. River, this cluster of communities pampers visitors On the banks of the Fox River are two of the For shoppers, the Fox Cities offers many options. with a variety of unique museums and shopping most historic homes in the state, both of which you THE FOX RIVER MALL is one of the state's largest areas, wonderful restaurants and great hotels and will want to tour. HEARTHSTONE MANOR in malls. DOWNTOWN NEENAH and APPLETON are motels. You'll find lots to see and do in the Fox Appleton is the world's first home lit by a central filled with unique, one-of-a-kind specialty shops Cities! hydro-electric station. Its electrical system was and special malls of their own. Bargain hunters will Your visit to the Fox Cities will be a magical installed by Edison's staff, and its fireplaces are delight in the area's varied factory outlet stores. experience. The world famous magician/escape outlined in rare Minton tiles. The GRIGNON For outdoor activities, you'll find a number of artist Harry Houdini grew up in Appleton. The MANSION in Kaukauna, built at the site of an early challenging golf courses in the Fox Cities, public HOUDINI HISTORICAL CENTER inside the trading post, will give you a look at life when the tennis courts, and great hiking trails, especially OUTAGAMIE MUSEUM houses a large collection of first settlers arrived in the Fox Cities. those at the THOUSAND ISLANDS ENVIRON- Houdini memorabilia. The museum features the FOX VALLEY GREYHOUND PARK, the Fox Cities' MENTAL CENTER in Kaukauna and the GORDON Fox Cities' industrial history, including newest attraction, features exciting year-round BUBOLZ NATURE PRESERVE outside Appleton. papermaking, the largest area industry. Houdini is greyhound racing. Kaukauna is also home to Lake Winnebago and the Fox River are known for further remembered in Appleton's HOUDINI WISCONSIN INTERNATIONAL RACEWAY, with great fishing and boating. Each community has a PLAZA and its sculpture Metamorphosis which thrilling stock car and drag races during the spring number of beautiful parks for family outings. depicts Houdini's most famous escape. and summer. The With all there is to do in the Fox Cities, you'll No visit to the Fox Cities would be complete APPLETON FOXES, a want to stay a while. We have 23 hotels and motels without a stop at the BERGSTROM-MAHLER class A farm team of offering everything from budget to full-service MUSEUM in Neenah. It houses one of the world's the Kansas City Royals, accommodations. None is more than a short drive largest and finest collections of glass paperweights. play at Goodland from any of our attractions. The museum itself is a work of art, housed in the Field from April- The Fox Cities for a refreshing change of beautiful old mansion of one of the early paper September with all the place. Friendliness, excitement, unique things to barons. The neighborhood around the museum is excitement of major see and do the perfect combination for a league baseball at half relaxing and memorable getaway. the price. Plan to spend some time in Lawrence University's WRISTON ART CENTER or the AGA- CENTER FOR VISUAL ARTS, two of many art galleries scattered throughout the Fox Cities. The $250 REWARD: POINTS OF INTEREST Bergstrom-Mahler Houses one of the largest and Planetarium The stars and skies recreated for Museum finest glass paperweight U.W. Fox Valley your entertainment and collections in the world. education. 165 North Park Avenue, 1478 Midway Road, Neenah. 751-4658 Menasha. 832-2600 LYNNDALE Bubolz Nature Hiking and cross-country ski Simon's Specialty You can see Wisconsin cheese Preserve trails, planned activities. Cheese being made. Sample and buy. 5 4815 North Lynndale, Picnic tables. Appleton. 731-6041 1 block North of Hwy. 41 on N, GREENVINE 00 11 Little Chute. 788-6311 NORTHLAND Children's Farm 3 Young farm animals in a lovely 76 park setting. Open May to Thousand Islands Hiking, canoeing and other ONEIDA APPLE September. Environmental nature activities, all within view WISCONSIN Plamann Park, Center of the Fox River. TWO-MILE ROAD 96 10 WISCONSIN Appleton. 733-3019 Dodge Street, 19 10 Kaukauna. 766-4733 BADGER Classic Arts Musical plays and original 125 CA COLLEGE COLLEGE Dinner Theatre revues, along with dinner Vande Walle's See chocolates and pastries 14 18 served right in the theatre. Candies being made. Plenty to taste and 41 OUTAGAMIE 110 Nicolet Road, buy. COUNTY Appleton. 734-2787 400 North Mall Drive, AIRPORT BB SEY MOUR Appleton. 738-7799 Fox Valley Exciting greyhound racing PROSPECT 20 VALLEY 5 Greyhound Park with matinee and evening Wisconsin Stock car and drag racing from racing. Clubhouse dining and International DRIVE 47 April to September. 12 snack bars. Raceway Hwy. K, MIDWAY Hwy. 41 & 55, Kaukauna. 766-5577 World's First Hydro- Authentic reproduction of the IRISH ROAD 15 MENASHA ONEIDA Kaukauna. 766-RACE 441 Goodland Field Appleton Foxes 1500 West Spencer Street, Vulcan Street, Appleton. 733-4152 150 WINCHESTER Grignon Mansion Historically preserved home of ROAD LITTLE DES MORTS ETON Catch the fun! Kansas City Electric Central small electric station near the 6 Royals farm club baseball. Station original Fox River site. AMERICAN RACINE 10 PLANK BUTTE 114 Appleton. MAIN LAK Wriston Art Center Distinguished by its glass walls 7 Charles Grignon, fur-trader. and turrets, fanciful curves and MAIN 1313 Augustine Street, curls, and recessed 150 Kaukauna. 766-3122 amphitheatre, this whimsical GREEN TH structure houses fine art and Hearthstone 8 World's first hydro-electrically student exhibits. CONNE NEENAH lit home. Fascinating Lawrence University Campus, CECIL architecture and antiques. Appleton. 832-6621 625 West Prospect Avenue, Appleton. 730-8204 114 COMMERCIAL * Fox Cities Visitors Center 8 Houdini Walking Learn about Harry Houdini's 9 110 Fox River Drive, Appleton. 734-3358 Tour life in Appleton. Starts at BREEZEWOOD BELL Houdini Plaza. 100 West College Avenue, Appleton. While you're here, be Lawrence A beautiful campus situated on 12 sure to call the University the Fox River. East College Avenue, Appleton. 832-7000 Fox Cities Fun Line Outagamie Museum/Historical museum featuring (evenings & weekends) Houdini Historical Houdini and papermaking Center exhibits. 734-3358 330 East College Avenue, for event information Appleton. 735-9370 ACCOMMODATIONS 1 Woodfield Suites 3730 W. College Ave. R, IP, 21 Budgetel Inn 3920 W. College Ave. R, OP, M Appleton. 734-9231 OP, M Appleton. 734-6070 55 2 REEDOM Valley Inn 105 Walnut St. R,C,M 22 Bloomer's Motel 2603 N. Richmond St. R BALLARD 41 Neenah. 725-8441 Appleton. 739-3189 3 Twin City Motel 375 S. Green Bay Rd. 23 Amora Villa 200 N. Perkins St. R, IP,M 41 96 Neenah. 725-3941 Motor Lodge Appleton. 735-2733 LITTLE CHUTE 4 Super 8 Motel 3624 W. College Ave. 24 American 1032 S. Westland Dr. NORTH Appleton. 731-0880 Motor Inn Appleton. 733-7351 MAIN DRAPER ON 96 5 Snug Inn 3437 N. Richmond St. KIMBERLY FOX RIVER Appleton. 739-7316 R Restaurant IP Pool, indoor KIMBERLY KAUKAUNA M Meeting Room OP Pool, outdoor COMBINED 6 Road Star Inn 3623 W. College Ave. C Convention Facilities LOCKS NEWBERRY WASHINGTON CROOKS Appleton. 731-5271 If you need additional information about any of these motels/hotels call the Fox Cities Convention and Visitors Bureau CE 7 Queen Anne 837 E. College Ave. (414) 734-3358. JOHN Bed & Breakfast Appleton. 739-7966 KK 8 Parkway Motel 1181 Gillingham Rd. OP CALUMET Neenah. 725-3244 55 9 Paper Valley 333 W. College Ave. R, IP, C, M Hotel & Appleton. 733-8000 ANNUAL EVENTS Conference Center 10 10 Northland Motel 138 E. Northland Ave. February Icescape Winter Festival 114 Appleton. 739-8847 March St. Patrick's Day Parade 11 Northern Inn 420 W. Northland Ave. Appleton. 733-4936 May Menasha Riverfest WINNEBAGO Spring Fur Trade Event 12 Norm's Motel 1403 Green Valley Rd. The Great Wisconsin Cheese Festival Neenah. 725-6984 June Kaukauna River Jam FOX CITIES 13 Midway Motor 3033 W. College Ave. R, IP, M America's Largest Flag Day Parade Lodge Appleton. 731-4141 114 (Best Western) July Appleton Auto and Swap Show Neenah-Menasha Communityfest 14 Holiday Inn 150 Nicolet Rd. R, IP, C, M of Appleton Appleton. 735-9955 August AGA Art in the Park Otto Grunski Polski Festyn 15 Fox Valley Inn 2000 Holly Rd. R,M Civil War Encampment Neenah, 734-9872 September Kermis Dutch Festival 16 Fox City Motel 632 Hyland Ave. 55 Kaukauna. 766-3731 October Octoberfest 17 Exel Inn 210 N. Westhill Blvd. November Christmas Parade Appleton. 733-5551 Wonderland of Trees 18 Dreamland Motel 918 S. Westland Dr. December Victorian Christmas, Hearthstone Appleton. 733-3577 Candlelight Tours, Grignon Mansion 19 Comfort Suites 3809 W. Wisconsin Ave. IP, M Appleton. 730-3800 20 Colonial Inn 3913 W. Prospect Ave. IP, M Appleton. 730-8447 T b e Fox Cities here is a time and a place. Now is the time. This is the place! The Fox Cities 2 THE FOX CITIES 5 LOCATION 7 BUSINESS & INDUSTRY 10 PLAYING HOST 13 LIFESTYLES 17 EDUCATION 18 CULTURAL ENRICHMENT This is a Profile Publication created and produced for the FOX CITIES CHAMBER OF COMMERCE AND INDUSTRY. 21 P.O. Box 1855 HEALTH CARE Appleton, WI 54913-1855 Copyright © 1992 by Profile Publications, Inc. 22 P.O. Box 436 Crystal Lake, IL 60014 RECREATION Acknowledgments: APPLE STUDIO LTD. 25 R.A. Ballin Photography FOX CITIES FACTS David Anthony, Photography Carol Kropidlowski, Photographer Printed by Master Litho 1 The Fox Cities ver the years, major publi- cations including For- tune magazine have given national credence to the claim that there is no more inviting place than the Fox Cities to live, work, and raise a family. The communities along the Fox - the cities of Appleton, Neenah, Menasha, Kaukauna, the villages of Little Chute, Kimberly, and Combined Locks, and the towns of Neenah, Menasha, Grand Chute, and Greenville — give homage to the Fox River, paper, and progress. They share a common heritage in the Fox River. Paper is the center of their his- tories. Together, they share a total population of 175,000, the fourth largest population center in Wisconsin. The Metropolitan Statistical Area (MSA) of which the Fox Cities is a part, encompasses over 315,000 people; Appleton is the largest community with over 66,000 residents. As a community, these municipalities provide convenience and amentities associated with urban life yet maintain small town charm. While each of the 11 communities exhibits a unique character, all attest to these facts: Affordable homes are plenti- ful. School systems, whether public or parochial, share a common theme of ex- cellence. Shopping is abundant and con- venient. Expert medical care is close at hand. A broad array of leisure time ac- tivities, from concerts and art exhibits to boating and ice fishing, is ever present. These definitive assets combine with a substantial industrial base, ranging from mighty international companies to small, locally-owned enterprises, from high- tech to traditional. Inviting? Come visit the Fox Cities. Come packed to stay. 2 the Location T Winnebago and rapidly flows he Fox Cities area is located in east central Wis- where the Fox River exits north toward the open waters of Green Bay and on to the Great Lakes. Transportation makes the area a strategic place for business and industry. A superb network of expanding major U.S., state, and local highways make travel and shipping to major metropoli- tan centers easy and efficient. More than 60 motor freight carriers and an en- hanced rail system service the area. A Great Lakes port is within 40 miles of the Fox Cities. Outagamie County Airport, the nearest of three airports within 30 miles, offers commercial passenger, charter and freight service to the nation. Its pas- senger operations are the fastest growing in Wisconsin. The airport is home to Air Wisconsin, the largest regional airline in the nation. Valley Transit provides inter-commu- nity bus transportation, allowing resi- dents a commuting option from home to The Fox Cities The Center of it All Lake Superior MINNESOTA WISCONSIN 1 Lake FOX Huron CITIES 2 3 Lake MICHIGAN Michigan Lake Erie 4 IOWA INDIANA Hours to Fox Cities by Car ILLINOIS 1 MINNEAPOLIS/ST. PAUL 5.5 2 MADISON 1.5 3 MILWAUKEE 1.5 4 CHICAGO 3 5 Business & Industry ince late in the last century, paper has been the dominant indus- try in the Fox Cities area. While paper continues strong, rep- resented by such well-known names as Kimberly-Clark and James River Corpora- tion, the area's industrial base has widened broadly to encompass plastics, high-tech, electronics, food processing, and machinery. Insurance is one of the principal service industries in the Fox Cities area. The area has 11 industrial and busi- ness parks totaling more than 1,500 acres. Fully developed and affordably priced land is available for new or ex- panding firms. Products originating in the Fox Cities area include paper and paper-related products, printing and graphic arts, marine cranes, machine tools, and non- ferrous metal castings. Others are com- puter battery backup systems, batteries, wire mesh, watermark designs, chemi- cals, farm implements, plastic shrink wrap, stainless and carbon steel pipe, and food processing. In addition there are industrial valves, inks, health care products, varnishes and stains, electronic automation products, wood products, arc welders, and fire and utility truck bodies. The Fox Cities is a dynamic place of industrial diversity. continued 7 Business & Industry T continue to grow in the he entrepreneurial spirit flourishes in the Fox Cities. New small business service, manufacturing and retail seg- ments of the business community. State-of-the-art technology has enabled small business people to enter and compete in the marketplace. Large companies ranging from heavy maufac- turing to service industries are upgrad- DAYTONS ing facilities with new technology and better-tooled equipment, enabling them to produce even higher quality products in less time at a lower cost. The retail sector of the community offers a fine mix of merchandise from upscale fashions to quality goods at affordable prices. MARKETPLACE The area boasts not only one of the country's first enclosed shopping cen- ters-Valley Fair Mall on the boundary between Appleton and Menasha - but also one of the state's largest shopping malls - Fox River Mall. This complex, GILTEDGE encompassing more than 1.1 million square feet of space, hosts five anchor stores and more than 160 other retail shops. Among the anchors is an elegant Dayton's department store, which high- lights a new wing offering high-end fashions, novelty and personal care stores. Retail opportunities abound in each of the communities of the Fox Cities. Several downtowns have renovated historic facades and capitalized on their ethnic backgrounds to offer a unique shopping atmosphere. Locally made products can be found in outlet stores and specialty shops. Quality and unique products abound in the Fox Cities. 8 BUILT Playing Host he Fox Cities wel- comes visitors and business travelers with more than 1,600 modern hotel and motel rooms and ample meeting facilities for mid-size conventions. Each of the Fox Cities boasts a prosper- ous downtown business district. And whether you prefer to shop in the central business district or in the spaciousness of an enclosed mall, you will find retail mar- ketplaces to suit your needs. History is at home in the Fox Cities - at home in the restored mansions of pioneering fur traders, paper barons and captains of industry, all open to the public. Twelve local museums have signifi- cant art and historical collections. Colorful, "tasteful" celebrations of local ethnic heritage offer local residents and visitors alike an opportunity to enjoy the music, costumes, traditions and favorite dishes of the nationalities who settled the Fox Cities. Festivals, parades and other community events abound here. The Fox Cities is a perfect spot to spend a weekend getaway. Time it right, and you may be able to watch marathoners stride past your hotel. Or stand aside as a pack of speeding bicyclists compete in chal- lenge cup and charitable races. You can !OHNSBUR be a spectator or a participant in any number of sporting events in the Fox Cities. Cap off your visit with dinner at any of the many fine restaurants specializing in everything from ethnic cuisine to fast food. Take in a movie at one of the five theater complexes with a total of 18 screens. Five additional area theaters fea- ture live performances, including dinner theater. The pleasures of the Fox Cities are myriad. 10 ALL LISH L Lifestyles he Fox Cities is one of the fastest growing urban areas in Wisconsin and boasts a cost of living which is below the national average. Quality, affordable housing is one of the Fox Cities many attractions. The home building market is steady and strong - the area's stable economy tradi- tionally does not feel the ups and downs of real estate trends experienced by other parts of the country. The homes of the Fox Cities range from turn-of-the-century Victorian man- sions to spacious modern homes, from high-rise condominiums to apartment complexes with recreational amenities. Included are well-kept homes along tree-lined streets and sprawling country estates. There are riverside and lakefront AND homes and those which are tucked alongside golf course fairways. continued 13 Lifestyles R esidents feel at home in the Fox Cities. Families occupy mod- erately priced as well as executive homes enjoying the small-town atmosphere that enables them to feel comfortable to relax and play in the parks, recreational facilities and water- ways that can be found in most neighbor- hoods. Children play freely along the sidewalks and in the playgrounds. The area enjoys one of the ten lowest rates of violent crime in the country. Home is never a long drive from the workplace. The Fox Cities have one of the 10 shortest commuting times to and from work. Residents have their choice of in- town convenience and neighborliness, or the tranquility of country living as near as the outskirts of town. Career-minded residents find that airy condominiums and townhouses right in the heart of the cities are convenient, have character and keep residents acces- sible to business, shopping and recrea- tional facilities. Revitalization of historic pockets of the cities are creating innova- tive riverfront housing. In the Fox Cities, there is a place to call home for everyone. 14 Education he six public school systems of the Fox Cities are national award win- ners, demonstrating exceptional skills in all aspects of education. Five public and parochial schools in Menasha and Neenah have received national Excellence in Education awards, and seven others have been similarly recognized by the State of Wisconsin. -The Appleton Area School District earned an "Excellence in Education" award from the Wisconsin Manufacturers and Commerce organization for its Staff Development - Professional Educator Institutes. -Little Chute Area School District's middle school was the first area school to receive the federal "Drug Free School" designation. Appleton's Lawrence University, char- tered in 1847, heads the list of the Fox Cities area's five institutions of higher learning. Lawrence is ranked among the nation's best small, private liberal arts colleges. Lawrence offers Bachelor of Arts degrees in 25 majors, including the Bachelor of Music degree awarded by its Conserva- tory of Music. An important conduit bringing renowned classical and jazz per- formances to the area, Lawrence now also boasts the new Wriston Arts Center. MENASHA The University of Wisconsin - Fox Val- ley, located in Menasha, is a gateway cam- pus for the state university system and serves more than 1,500 students on a recently expanded metro campus. Fox Valley Technical College, ranked among the three top vocational-technical schools in the nation, has an enrollment of about 5,000 full-time students and offers more than 55 programs in 15 career specialties. 17 Cultural Enrichment he arts are alive and well in the Fox Cities, re- flecting the area's high cultural interest and attainment. The Fox Valley Arts Alliance actively promotes the arts, and has for more than 10 years. An umbrella unit, the Alliance aids the efforts of more than 50 arts- oriented organizations, representing the arts in all their hues and tones, and is a voice for Fox Valley artists within state and regional circles. Several of these groups have been part of the Fox Cities community for decades. The Fox Valley Symphony Orchestra has observed its 25th anniversary. The AGA- Center for Visual Arts is 30 years old. The Attic Theatre, a thriving community theatre company, has performed for more than 40 seasons; the Chaminade Chorus for 50! And, the MacDowell Chorus is nearing its 60th season! Festivals are traditional times of gather- ing for Fox Cities families. Highlights from the area's festival calendar include Octoberfest, Riverfest, the Great Wiscon- sin Cheese Festival, Paperfest, Otto Grunski Polski Festyn, the Kermis Dutch Celebration, Communityfest, Flag Day and Christmas parade. AGA's Art in the Park, a popular one-day extravaganza held in City Park, and a similar art fair in Neenah's waterfront Riverside Park, attract art enthusiasts and festival goers each summer. The several galleries, museums, and historical sites of the Fox Cities are attrac- tions as well, drawing residents and visitors alike. 18 0 83-0-0- 0 Health Care & xpert health care and treatment are assured in the Fox Cities area by four hospitals with more than 1,200 beds and some 350 physicians rep- resenting all major medical specialties. Appleton Medical Center offers com- prehensive medical services, including open heart surgery and cardiac care and rehabilitation. Its Appleton Heart Insti- tute is involved in a North American study of a drug to lower cholesterol. St. Elizabeth Hospital continues to ex- pand its extensive facilities and services. Noted for its emergency care and a vari- ety of health maintenance programs, St. Elizabeth also operates Kaukauna Com- munity Hospital, a 50-bed acute care facility. Neenah's Theda Clark Regional Medi- cal Center is the designated renal dialysis center for the Fox Valley and offers such services as CT scans, ultra- sound, nuclear medicine, and a regional neonatal intensive care nursery. It was the first hospital in the nation to use a new cardiovascular imaging system designed to show distortion-free images of the cardiovascular system. Several medical clinics serve the Fox Cities area. The largest is the La Salle Clinic with about a dozen sites and more than 110 physicians on staff. Caring is a Fox Cities tradition. 21 Recreation he beauty and the joys of nature's four sea- sons surround the Fox Cities, inviting residents to a myriad of outdoor activities, from sum- mertime picnics to wintertime ice fishing. Families are beckoned by more than 30 municipal, county, and state parks, with a variety of recreational facilities and equipment. Boat owners have access to 14 launching sites on the Fox River and Lake Winnebago, one of the nation's largest fresh water inland lake. The most avid golfer's appetite is satiated by the area's 14 public and five private golf courses with a total of more than 260 holes. The Fox Cities also offers a wealth of indoor recreational opportunities, rang- ing from two excellent YMCAs to a vari- ety of health and fitness clubs, soccer fields, bowling centers, roller rinks, ball diamonds, tennis and racquetball courts, and ice arena. For sports spectators, there are the Ap- pleton Foxes, a Kansas City Royals farm club; Kaukauna's Wisconsin International Raceway, and the Fox Valley Greyhound Park. The NFL's Green Bay Packers are a mere 30 miles away. Wisconsin's famed Door County, the "Cape Cod of the Mid- west," is an easy drive away. Of course, Milwaukee's theaters, museums, gal- leries, and professional baseball and bas- ketball teams are just two hours from the Fox Cities. The Fox Cities is a place for fun. 22 Fox Cities Facts HE FOX CITIES: The cities of Appleton, Kaukauna, Menasha, and Neenah, and the villages of Com- bined Locks, Kimberly, and Little Chute, and the towns of Neenah, Menasha, Grand Chute, and Greenville. Economic hub for a three-county area. Transportation in the Fox Cities AIR: Outagamie County Airport served by three commercial airlines. Air freight, charter service, and general aviation services available. HIGHWAYS: U.S. Highways 10, 41, and 45. State Highways 47, 55, 76, 96, and 114. The area ranks among the top 10 metro- politan centers in the U.S. having the shor- test commuting times to and from work. HILDEBRAND'S PUBLIC: Valley Transit provides bus serv- ice among the Fox Cities communities. Three inter-regional bus lines and charter bus services are available. TRUCK: More than 60 trucking and ware- housing firms provide local, long-dis- tance, and storage services. RAIL: The Fox River Valley Railroad and Wisconsin Central Limited, provide freight services. WATER: Ports of Green Bay, 30 miles north, and Milwaukee, 100 miles south, provide access to the Great Lakes Seaway. Utilities in the Fox Cities WATER: Publicly-owned water utilities draw from Lake Winnebago and deep wells. The Fox River is an emergency source. GAS: Natural gas provided by Wisconsin Natural Gas and Wisconsin Gas Company. ELECTRICITY: Wisconsin Electric Power Company, Menasha Water & Electric Utilities, and Kaukauna Electric & Water Department. continued 25 Fox Cities Facts Utilities in the Fox Cities TELEPHONE: Wisconsin Bell, Inc., and numerous independent long distance suppliers. Services in the Fox Cities POSTAL: U.S. Postal Service offices in each of the Fox Cities. TELEVISION AND RADIO: WBAY-TV (CBS), WFRV-TV (ABC), WLUK-TV (NBC), WPNE- TV (PBS), AND WLRE-TV, all located in Green Bay. WXGZ-TV in Appleton. Cablevi- sion of the Fox Cities, and Warner AMEX Cable TV of Neenah/Menasha, each offer- ing more than 30 channels. More than 20 radio stations serve the area. FINANCIAL INSTITUTIONS: 14 banks and branch offices, nine savings and loans. Nearly 40 credit unions. NEWSPAPERS: The Post-Crescent and the Oshkosh Northwestern publish daily. Several area weekly and monthly publications. Education in the Fox Cities PUBLIC SCHOOLS: Appleton Area School District, Kaukauna School District, Kim- berly School District, Little Chute Area Schools, Menasha Joint School District, and Neenah Joint School District. PAROCHIAL SCHOOLS: More than 40 parochial schools in the Fox Cities area. COLLEGES AND UNIVERSITIES: Lawrence University, University of Wiscon- sin - Fox Valley, Fox Valley Technical College. PRESCHOOLS: 30 preschools and kinder- gartens in the Fox Cities area. 26 Fox Cities Facts Attractions: Amelia Bubolz Doll Collection, more than 1,000 antique dolls from Europe and the U.S. Grignon Mansion, home to a pioneering fur trader, listed in the National Register of Historic Places. Replica of First Hydroelectric Power Station, important because in 1882 the original station made Appleton the first city in the world to have electricity generated by water power. 1000 Islands Environmental Center, 240- acre conservatory along the Fox River. Bergstrom-Mabler Museum, with one of the most extensive collections of decora- tive glass paperweights in the world. Outagamie County Museum, preserving the history of the Fox Cities area, with emphasis on industrial development. Houdini Historical Center, displaying memorabilia from the life of Harry Houdini, an Appleton native. University of Wisconsin Center - Fox Valley Planetarium, sky shows open to public throughout school year. 27 here is a time and a place. People love the Fox Cities for its times of the year, nature's four colorful seasons. They love the Fox Cities for there is no more inviting place to live, work, and raise a family. 28 FOXCITIES GROWTH ALLIANCE The Fox Cities produced for the Growth Alliance of the Fox Cities Chamber of Commerce & Industry 227 South Walnut Street, P.O. Box 1855 Appleton, WI 54913-1855 (414) 734-7101 Og OUTLOOK GRAPHICS CORP. I Wrestling CKCARD SAMBOX E ### G Edition SAUTHS SAVERS JENNIEO TURKEY HAM FORMED JENNIE-O Hormel TURKEY Rag Amazon BREAST Light&Lean 97%FAT FREE Hickory Smoked FRANKS M INDIVIDUALIS REGISTERED Oscar Superior Nutrition Calories per Frank Mayer Hamster Gerbil TREAT STICKS 08: MORE B SECTION MORE MORE PERFORMANCE THROUGH PARTNERSHIPS 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 600 NMU CONTENTS President's Letter 2 Our Strategy 4 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 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 (dollars 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 15 .30 1.0 10 .20 5 0.5 .10 87 88 89 90 91 87 88 89 90 91 87 88 89 90 91 1 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 Outlook 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. Colli Thompson Vice Presiden Our partnership with employees services at a reasonable cost. Fleer Corp., Impel Marketing, Executive Vice Manufacturin 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 OUTLOOK GRAPHICS CORP. 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 a very special effrey P. Stilp David L. develop a highly motivated and reasurer and Erdmann company. ontroller Chairman and well-trained employee group; and President increase the value of our stock- Clavid L. Endian 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 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 OUTLOOK GRAPHICS CORP. 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 7% 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 COLLECTOR CARDS SVETTE И . ####### # I I E CORVETTE CARDS MARIORTED CARDS OF ANDRETTI 19 NEW 1991 VETTE'SE NEW VETTESET Edition & MARIO BE RANDOM AUTOME - RANDOMPH CORVETTE X CORVE of " " E/ TE COLLECTOR'S CARDS AB ========= ******* 10 CORVETTE COLLECTOR'S ######## T V 07 OUTLOOK GRAPHICS CORP. 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, folding 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 THE Lunchab THE Mayer serving R LUNCH TOWNING the Salam P OUTLOOK GRAPHICS CORP. 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 Lunchablesᵀ 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 flashcards. 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 newest packaging service is quality. the paperboard packaging A major activity of the capabilities we introduced one year converting and packaging area is ago. We are pleased with the Diane L, Retiner Diane Ketiner 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 THE x Home Enter 0 End SUI OUTLOOK GRAPHICS CORP. 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 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 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 1 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 4,738 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 3,354 2,409 656 397 255 Cumulative effect of accounting change on prior years (2) - - - 224 - NET EARNINGS $ 3,354 $ 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 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 Year Ended May 31, 1991 1990 1989 during fiscal 1990. This decrease was due primarily 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 .9 (2.1) (2.6) (2.6) Interest expense as a percentage of net sales 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 cf unexpended funds FISCAL 1991 COMPARED TO from industrial development bond financing. FISCAL 1990 As a result of the factors discussed above, and Net sales for fiscal 1991 of $43.3 million were $11.5 reflecting a relatively constant effective income tax million, or 36.2%, higher than the sales of $31.8 million rate for both periods, net earnings for fiscal 1991 in fiscal 1990. Net sales of converting and packaging increased by $945,000, or 39%, compared to fiscal 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 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 sales), as compared to $1.8 million for the five month The Company has a bank agreement with an avail- period included in fiscal 1989. able revolving credit facility. As of May 31, 1991, 1990 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 resources. Increases in Outlook Label's net sales and The Company has generated cash flows from opera- improvement in its margins also contributed to the tions during each of the past three full fiscal years. The increase in gross profit percentage. Company's line of credit provides an additional source of liquidity when needed. While total selling, general and administrative expenses increased by $1.4 million from fiscal 1989 to The Company's policy has been to fund capital fiscal 1990, they decreased as a percentage of net expenditures with cash generated from operations sales to 12.6% in fiscal 1990 from 15.0% in fiscal 1989. and through borrowings, and by leasing certain The increase in the dollar amount primarily reflects a assets rather than purchasing them. In some full year of Outlook Label operations, increased com- instances, the Company has acquired capital equipment pensation expense and other expenses related to the with cash generated from operations or its revolving growth in net sales. The decrease in the percentage credit facility and has recovered these funds through amount primarily resulted from the increase in net the ensuing sales of that equipment (at cost) to sales and the fixed nature of certain selling, general third parties that lease the equipment back to the and administrative expenses. Company. Amounts recoverable from sale and lease- 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 3.4% 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 support the growth in sales. The competitive requirements of the graphic services 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 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 - INDEX To FINANCIAL STATEMENTS Consolidated Balance Sheets 17 N 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 S 0 N 16 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 3,226 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) 4,887 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 STOCKHOLDERS 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 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 32,407 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 A) $.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 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) - (38) - (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 I 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 - - - 3,354 3,354 Payment of fractional shares - - (1) I (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 Outlook Graphics Corp. and Subsidiary CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended May 31, 1991 1990 1989 (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) - Acquisition of property, plant and equipment (6,950) (3,449) (4,265) Increase in equipment acquisition trust fund (2,380) (605) - 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) - - 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. 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): CASH AND CASH EQUIVALENTS 1992 $ 21 1993 30 Cash and cash equivalents include cash on hand, demand deposits and short-term investments with 1994 32 maturities of three months or less. 1995 27 $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 Inventories are stated at the lower of cost or market. 1991 1990 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 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 1991 1990 agreement for industrial development bond financing 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 Less current maturities 426 2,865 The revolving loan and the industrial development 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 Outlook Graphics Corp. and Subsidiary NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE F-STOCKHOLDERS' 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, 1988. 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 a 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-EMPLOYEE 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 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) - 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 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 I 48,125 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): 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 Outlook Graphics Corp. and Subsidiary NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE K-BUSINESS ACQUISITION NOTE -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 Label, for $250,000. National Football League 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 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 The internal control systems are designed to provide accountants to ensure that each is meeting its reliable financial information for the preparation of responsibilities and to discuss matters concerning financial statements, to safeguard assets against loss auditing, internal accounting control and financial or unauthorized use and to ensure that transactions reporting. The independent accountants have free access to meet with the Audit Committee without are executed consistent with company policies and procedures. Management believes that existing inter- management's presence. nal accounting control systems are achieving their objectives and that they provide reasonable assurance concerning the accuracy of the financial statements. claved L. Endian Jefrey 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 opinion, 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 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 2,235 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) $13/2 $10/4 Fiscal 1992: First Quarter (June 1, 1991 to August 9, 1991) $13% $103/4 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 OUTLOOK GRAPHICS CORP. 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) (3) (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 Og OUTLOOK GRAPHICS CORP. 1180 American Drive Neenah, WI 54956 (414) 722-2333 :