Visant Reports Smaller Net Loss on Higher Net Sales
ARMONK, NY—May 10, 2012—Visant Corp. announced results for its first fiscal quarter ended March 31, 2012, including consolidated net sales of $258.8 million, compared to $250.7 million for its first quarter ended April 2, 2011, an increase of approximately 3 precent.
The company reported a consolidated net loss of $10.1 million for the first quarter of 2012 compared to a net loss of $18.5 million for the first quarter of 2011. Its consolidated adjusted EBITDA was $50.2 million, an increase of $1.4 million compared to $48.8 million for the same period of 2011.
Net sales for its Scholastic segment were $155.4 million, a decrease of 1 percent compared to $156.3 million for the same period of 2011. This decrease was primarily attributable to lower volume in certain products.
Net sales for the Memory Book segment were $5.5 million and essentially flat year-over-year when compared to $5.6 million for the first quarter of 2011.
Net sales for the Marketing and Publishing Services segment increased $9.0 million, or 10 percent, to $97.9 million from $88.9 million for the first quarter of 2011. This increase was primarily attributable to significantly higher volume in our sampling operations, including the incremental impact from the acquisition of Color Optics and the volume from our Latin American sampling operations, the results of which were recognized beginning in the second quarter of 2011, offset somewhat by lower volume in our direct mail operations.
The Scholastic segment reported Adjusted EBITDA of $34.0 million for the first fiscal quarter of 2012, which is unchanged from the first fiscal quarter of 2011.
Adjusted EBITDA for the Memory Book segment was a loss of $7.3 million, a decrease in Adjusted EBITDA of $2.1 million compared to a loss of $5.2 million for the first fiscal quarter of 2011. This decrease was primarily due to higher pension expense and the timing of certain operating expenses between the first and second quarter of 2012.
The Marketing and Publishing Services segment reported Adjusted EBITDA of $23.5 million, an increase of $3.5 million compared to $20.0 million for the first fiscal quarter of 2011. This increase was due to higher volume in our sampling operations.
As of March 31, 2012, Visant’s consolidated debt, comprised of the outstanding indebtedness under its senior secured credit facilities and its 10.00 percent senior notes due 2017, was $1,937.8 million, including $13.4 million of capital lease and equipment financing obligations and exclusive of original issue discount of $18.4 million related to the term loan under the senior secured credit facilities. Visant’s cash position as of March 31, 2012 totaled $58.8 million.
Visant has provided a reconciliation of net loss to Adjusted EBITDA and EBITDA to Adjusted EBITDA in the accompanying summary of financial data.
Visant Corp. is a leading marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling and packaging, and educational and trade publishing segments. The company has three reportable segments: Scholastic, Memory Book, and Marketing and Publishing Services.