Visant’s Net Income Slumps on Nearly Flat Net Sales
For the six months ended July 2, 2011, the Scholastic segment reported Adjusted EBITDA of $63.9 million, an increase of $1.4 million, or 2 percent, compared to $62.5 million for the prior year comparative period. The increase was primarily due to the impact of cost reduction initiatives.
Our Memory Book segment reported Adjusted EBITDA of $136.5 million for the six months ended July 2, 2011, a decrease of $2.8 million, or 2 percent, compared to $139.3 million for the six months ended July 3, 2010. This decrease was primarily due to lower volume.
The Marketing and Publishing Services segment reported Adjusted EBITDA of $39.6 million for the six months ended July 2, 2011, a decrease of $9.6 million, or 19 percent, compared to $49.2 million for the prior year comparative period. This decrease was primarily due to lower volume in our publishing services operations.
As of July 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 $2,004.8 million, including $14.2 million of capital lease and equipment financing obligations and exclusive of original issue discount of $22.1 million related to the term loan under the senior secured credit facilities. Visant’s cash position as of July 2, 2011 totaled $53.0 million.
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.
Visant is a leading marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance and cosmetics, 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.