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Visant’s Net Income Slumps on Nearly Flat Net Sales

August 11, 2011
ARMONK, NY—Aug. 11, 2011—Visant Corp. announced results for its second fiscal quarter ended July 2, 2011, including consolidated net sales of $493.1 million, compared to $499.1 million for its second quarter ended July 3, 2010, a decrease of approximately 1 percent. In addition, it reported consolidated net income of $60.6 million for the quarter, compared to net income of $92.2 million for the second quarter of 2010. This decrease was primarily attributable to higher interest expense resulting from the recapitalization in September 2010 of Visants and Visant Holding Corp.’s indebtedness.

Visant’s consolidated adjusted EBITDA (defined in the accompanying summary of financial data) was $191.2 million for the second fiscal quarter of 2011, a decrease of $7.6 million compared to consolidated Adjusted EBITDA of $198.8 million for the second fiscal quarter of 2010.

For the first six months of fiscal year 2011, consolidated net sales were $743.9 million, a decrease of 3 percent compared to $765.1 million for the first six months of fiscal year 2010. Consolidated net income decreased to $42.1 million during the first six months of fiscal year 2011 compared to net income of $97.6 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 $240.0 million for the first six months of fiscal year 2011, a decrease of 4 percent compared to Adjusted EBITDA of $250.9 million for the comparable period in fiscal year 2010.

• Net sales for the Scholastic segment were $135.7 million for the second fiscal quarter of 2011, an increase of 3 percent compared to $131.7 million for the second fiscal quarter of 2010. This increase was primarily attributable to higher volume and prices in our jewelry products.

• Net sales for the Memory Book segment were $268.8 million for the second fiscal quarter of 2011, a decrease of 3 percent compared to $276.9 million for the second fiscal quarter of 2010. This decrease was primarily attributable to lower volume.

• Net sales for the Marketing and Publishing Services segment decreased $1.8 million, or 2 percent, to $88.7 million from $90.5 million for the second fiscal quarter of 2010. This decrease was primarily attributable to lower volume in our publishing services operations offset by the impact of higher sampling sales including sales from the company’s acquisition of Color Optics completed on April 4, 2011.

The Scholastic segment reported adjusted EBITDA of $30.0 million, a decrease of $0.8 million compared to $30.8 million for the second fiscal quarter of 2010. This decrease was primarily due to higher precious metal costs.

Adjusted EBITDA for the Memory Book segment was $141.7 million, a decrease of $3.2 million compared to $144.9 million for the second fiscal quarter of 2010. This decrease was primarily attributable to lower volume.
 

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