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Visant Reports 2.4% Decrease in 2013 FY Net Sales

March 6, 2014

The Scholastic segment reported Adjusted EBITDA of $74.6 million for the fiscal year ended December 28, 2013, an increase of $2.1 million, compared to $72.5 million for the fiscal year ended December 29, 2012. This increase was primarily due to lower overall costs, including lower selling expenses, material costs and pension expense, partially offset by lower sales volume in high school jewelry and announcement products.

Our Memory Book segment reported Adjusted EBITDA of $140.1 million for the fiscal year ended December 28, 2013, a decrease of $3.6 million, compared to $143.7 million for the fiscal year ended December 29, 2012. This decrease was primarily due to lower yearbook volume partially offset by lower overall costs as a result of cost saving initiatives and lower pension expense.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $70.1 million for the fiscal year ended December 28, 2013, a decrease of $11.8 million, compared to $81.9 million for the prior year comparative period. This decrease was primarily due to lower volume and unfavorable sales mix in our sampling business.  

Fourth Fiscal Quarter 2013
Net sales for the Scholastic segment were $114.7 million for the fourth fiscal quarter of 2013 compared to $120.7 million for the fourth fiscal quarter of 2012. This decrease was primarily attributable to lower volume of high school jewelry products.

Net sales for the Memory Book segment were $14.8 million for the fourth fiscal quarter of 2013 compared to $16.5 million for the fourth fiscal quarter of 2012. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment for the fourth fiscal quarter of 2013 increased $9.3 million to $97.4 million from $88.1 million for the fourth fiscal quarter of 2012. This increase included sales attributable to the company's acquisition of Carestia. Excluding the impact attributable to the acquisition of Carestia, the increase in net sales was $3.6 million compared to the fourth fiscal quarter of 2012, primarily due to higher sampling volume.   

Adjusted EBITDA for the Scholastic segment decreased $2.4 million to $18.8 million for the fourth fiscal quarter of 2013, compared to a $21.2 million for the fourth fiscal quarter of 2012, primarily due to lower sales volume.

Adjusted EBITDA for the Memory Book segment for the fourth fiscal quarter of 2013 was a loss of $3.2 million compared to a loss of $3.6 million for the fourth fiscal quarter of 2012. This slight improvement in Adjusted EBITDA was primarily attributable to the impact of cost saving initiatives and lower pension expense.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $17.7 million for the fourth fiscal quarter of 2013 compared to $18.4 million for the fourth fiscal quarter of 2012. This decrease was primarily due to unfavorable sales mix in our sampling operations.

Consolidated Indebtedness

As of December 28, 2013, 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 $1,884.8 million, including $7.7 million of capital lease and equipment financing obligations and exclusive of original issue discount of $11.9 million related to the term loan under the senior secured credit facilities. Visant's cash position as of December 28, 2013 totaled $96.0 million.

The company had accrued approximately $14.6 million of interest under its senior notes and senior secured credit facilities as of December 28, 2013. This amount was paid following the end of the fourth fiscal quarter.

Visant has provided a reconciliation of net income to Adjusted EBITDA and EBITDA to Adjusted EBITDA in the accompanying summary of financial data.

Supplemental data has also been provided for Visant's three segments: Scholastic, Memory Book and Marketing and Publishing Services.

About Visant Corp.
Visant 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—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 and packaging, 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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