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Visant Posts Smaller Net Loss on Flat Sales

November 10, 2011
ARMONK, NY—Nov. 10, 2011—Visant Corp. announced results for its third fiscal quarter ended Oct. 1, 2011, including consolidated net sales of $227.6 million, compared to $224.3 million for its third quarter ended Oct. 2, 2010, an increase of approximately 1 percent.

In addition, Visant reported a consolidated net loss of $12.3 million for the quarter, compared to a consolidated net loss of $21.6 million for the third quarter of 2010. The company's loss position for the third quarter 2011 and 2010 was primarily attributable to higher interest expense and loss on repurchase and redemption of debt resulting from the recapitalization in September 2010 of Visant's and Visant Holding Corp.'s indebtedness.

Visant's consolidated Adjusted EBITDA was $45.4 million for the third fiscal quarter of 2011, an increase of $0.5 million compared to $44.9 million for the third fiscal quarter of 2010.

For the nine months ended Oct. 1, 2011, Visant’s consolidated net sales were $971.5 million, a decrease of 1.8 percent compared to $989.4 million for the first nine months ended Oct. 2, 2010. Consolidated net income decreased to $29.8 million, compared to net income of $76.1 million for the comparable period in fiscal year 2010, with the decrease primarily attributable to higher interest expense as a result of the 2010 recapitalization.

Consolidated Adjusted EBITDA totaled $285.4 million for the nine-month period ended Oct. 1, 2011, a decrease of 3.5 percent compared to Consolidated Adjusted EBITDA of $295.8 million for the comparable period in fiscal year 2010.

Net sales for the Scholastic segment were $49.0 million for the third fiscal quarter of 2011, an increase of 15 percent compared to $42.5 million for the third fiscal quarter of 2010. This increase was primarily attributable to professional championship jewelry volume in the third fiscal quarter of 2011 compared to the third fiscal quarter of 2010.

Net sales for the Memory Book segment were $72.7 million, a decrease of 3 percent compared to $74.7 million for the third fiscal quarter of 2010. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment decreased $1.1 million, or 1 percent, to $106.0 million from $107.1 million for the third fiscal quarter of 2010. This decrease was primarily attributable to lower volume in Visant’s publishing services and direct mail operations, offset by significant organic growth in sampling sales, as well as sales attributed to the company's acquisition of Color Optics which was completed in April 2011.

Adjusted EBITDA for the Scholastic segment improved $1.1 million, or 12 percent, to a loss of $7.9 million for the third fiscal quarter of 2011 from a loss of $9.0 million for the third fiscal quarter of 2010. This improvement was primarily due to higher professional championship jewelry volume offset somewhat by higher precious metal costs.

For the quarter, adjusted EBITDA for the Memory Book segment was $24.6 million, a decrease of $1.8 million, or 7 percent, compared to $26.4 million for the third fiscal quarter of 2010. This decrease was primarily attributable to lower volume.

The Marketing and Publishing Services segment reported adjusted EBITDA of $28.7 million for the quarter, an increase of $1.3 million, or 5 percent, compared to $27.4 million for the third fiscal quarter of 2010. This increase was primarily due to solid growth in our sampling operations offset somewhat by lower volume in our publishing services operations.

Net sales for our Scholastic segment for the nine-month period ended Oct. 1, 2011 increased by $9.0 million, or 3 percent, to $340.9 million compared to $331.9 million for the nine-month period ended Oct. 2, 2010. This increase was primarily attributable to professional championship jewelry volume as well as higher prices for jewelry products during the nine-month period ended Oct. 1, 2011 as compared to the comparative period in 2010.

Net sales for the Memory Book segment were $347.1 million, a decrease of 3 percent, compared to $358.4 million for the nine-month period ended Oct. 2, 2010. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment decreased $15.6 million, or 5 percent, to $283.5 million, compared to $299.1 million during the nine-month period ended Oct. 2, 2010. This decrease was primarily attributable to lower volume in our publishing services and direct mail operations offset by the impact of higher sampling sales, including those attributable to the acquisition of Color Optics.

For the nine-month period ended Oct. 1, 2011, the Scholastic segment reported adjusted EBITDA of $56.1 million, an increase of $2.6 million, or 5 percent, compared to $53.5 million for the prior year comparative period. The increase was primarily due to the impact of cost reduction initiatives offset somewhat by higher precious metal costs.

Our Memory Book segment reported adjusted EBITDA of $161.1 million, a decrease of $4.6 million, or 3 percent, compared to $165.7 million for the prior year comparative period. This decrease was primarily due to lower volume.

The Marketing and Publishing Services segment reported adjusted EBITDA of $68.3 million, a decrease of $8.3 million, or 11 percent, compared to $76.6 million for the prior year comparative period. This decrease was primarily due to lower volume in our publishing services operations.

As of Oct. 1, 2011, 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 $2,052.8 million, including $52.0 million outstanding under its revolving credit facilities, $13.2 million of capital lease and equipment financing obligations and excluding the original issue discount of $21.1 million related to the term loans under the senior secured credit facilities. Visant's cash position as of Oct. 1, 2011 totaled $37.3 million.

About Visant
Visant is a leading marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling, and educational and trade publishing segments.

The company has three reportable segments:

Scholastic - provides services in conjunction with the marketing, sale and production of class rings and an array of graduation products and other scholastic affinity products to students and administrators primarily in high schools, colleges and other post-secondary institutions.

Memory Book - provides services in conjunction with the publication, marketing, sale and production of school yearbooks, memory books and related products that help people tell their stories and chronicle important events.

Marketing and Publishing Services - provides services in conjunction with the development, marketing, sale and production of multi-sensory and interactive advertising sampling systems, primarily for the fragrance, cosmetic and personal care segments, and provides innovative products and related services to the direct marketing sector. The group also produces book components primarily for the educational and trade publishing segments.

Source: Visant.
 

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