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Visant Records Net Sales Decline and Net Loss

May 12, 2011
ARMONK, NY—May 12, 2011—Visant Corp. announced results for its first fiscal quarter ended April 2, 2011, including consolidated net sales of $250.7 million, compared to $266.0 million for its first fiscal quarter ended April 3, 2010, a decrease of approximately 6 percent. In addition, it reported a consolidated net loss of $18.5 million for the first quarter of 2011, compared to net income of $5.4 million for the first quarter of 2010. This decrease was primarily attributable to higher interest expense as a result of the recapitalization in September 2010 of Visant’s and its parent company’s indebtedness.

Visant’s consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) was $48.8 million for the first fiscal quarter of 2011, a decrease of $3.3 million, compared to consolidated Adjusted EBITDA of $52.1 million for the first fiscal quarter of 2010.

Net sales for its Scholastic segment were $156.3 million, a decrease of 1 percent compared to $157.7 million for the first fiscal quarter of 2010. This decrease was primarily attributable to lower volume in our graduation products.

Net sales for its Memory Book segment were $5.6 million, a decrease of 18 percent compared to $6.8 million for the first fiscal quarter of 2010. This decrease was primarily attributable to lower volume.

Net sales for its Marketing and Publishing Services segment decreased $12.6 million, or 12 percent, to $88.9 million from $101.5 million for the first fiscal quarter of 2010. This decrease was primarily attributable to lower volume in our publishing services and direct marketing operations.

The Scholastic segment reported Adjusted EBITDA of $34.0 million, an increase of $2.3 million compared to $31.7 million for the first fiscal quarter of 2010. This increase was primarily due to the impact of cost reduction initiatives and operating efficiencies which offset the impact of lower volume and higher precious metal costs.

Adjusted EBITDA for the Memory Book segment was a loss of $5.2 million, an increase in Adjusted EBITDA of $0.4 million compared to a loss of $5.6 million for the first fiscal quarter of 2010. This increase was primarily due to the impact of cost reduction initiatives.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $20.0 million, a decrease of $6.0 million compared to $26.0 million for the first fiscal quarter of 2010. This decrease was primarily due to lower overall volume.

As of April 2, 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 $2,008.4 million, including $14.7 million of capital lease and equipment financing obligations and exclusive of original issue discount of $23.0 million related to the term loan under the senior secured credit facilities. Visant's cash position as of April 2, 2011 totaled $25.2 million.
 

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