Visant Drops to Net Loss on Small Net Sales Decline

ARMONK, NY—March 8, 2012—Visant Corp. announced results for its fiscal year ended Dec. 31, 2011, including consolidated net sales of $1.218 billion, compared to $1.241 billion for its 2010 fiscal year ended Jan. 1, 2011, a decrease of approximately 2 percent.

In addition, Visant reported a consolidated net loss of $14.9 million for its latest fiscal year, compared to consolidated net income of $56.2 million for the fiscal year ended Jan. 1, 2011. The loss for the 2011 fiscal year was attributable to higher interest expense at Visant resulting from the recapitalization in September 2010 of Visant’s and Visant Holding Corp.’s indebtedness and a $31.9 million non-cash impairment charge associated with the write-down of certain intangible assets in our Marketing and Publishing Services segment.

Excluding the impact of the non-cash impairment charge, its consolidated EBITDA for the full fiscal year 2011 was $289.9 million, compared to $292.7 million for the 2010 fiscal year. Visant’s consolidated Adjusted EBITDA was $327.7 million for the 2011 fiscal year, a decrease of $12.4 million compared to consolidated Adjusted EBITDA of $340.1 million for the 2010 fiscal year.

For the fourth fiscal quarter of 2011, consolidated net sales were $246.3 million, a decrease of approximately 2 percent compared to consolidated net sales of $251.5 million for the fourth fiscal quarter of 2010.

In addition, the company reported a consolidated net loss of $44.7 million for the fourth quarter of 2011 vs. a net loss of $19.9 million for the fourth quarter of 2010. The increase in net loss was primarily attributable to the $31.9 million non-cash impairment charge associated with the write-down of certain intangible assets in our Marketing and Publishing Services segment.

Excluding the impact of the non-cash impairment charge, consolidated EBITDA for the fourth quarter of 2011 was $35.0 million compared to consolidated EBITDA of $37.7 million for the fourth quarter of 2010. Consolidated Adjusted EBITDA was $42.3 million for the fourth quarter of 2011 compared to consolidated Adjusted EBITDA of $44.3 million for the fourth quarter of 2010.

Results by Segment
Net sales for the Scholastic segment for the fiscal year ended Dec. 31, 2011, increased by $5.0 million, or 1 percent, to $474.7 million, compared to $469.7 million for the fiscal year ended Jan. 1, 2011. This increase was primarily attributable to championship jewelry volume as well as higher prices for jewelry products as compared to the comparative period in 2010.

Net sales for the Memory Book segment were $362.4 million for the fiscal year, a decrease of 4 percent compared to $375.9 million for the fiscal year ended January 1, 2011. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment decreased $14.5 million, or 4 percent, to $380.8 million for the fiscal year 2011, compared to $395.3 million for the fiscal year ended Jan. 1, 2011. This decrease was primarily attributable to lower volume in our publishing services and direct mail operations offset by significant organic growth in sampling sales and sales attributed to the company’s acquisition of Color Optics, which was completed in April 2011.

Fourth Quarter by Segment
Net sales for the Scholastic segment were $133.7 million for the fourth fiscal quarter of 2011, a decrease of 3 percent, compared to $137.8 million for the fourth fiscal quarter of 2010. This decrease was primarily attributable to lower overall jewelry volume and a shift in mix to lower priced metals in our jewelry products. The decrease was offset somewhat by higher prices in our jewelry products.

Net sales for the Memory Book segment were $15.3 million for the fourth fiscal quarter of 2011 compared to $17.5 million for the fourth fiscal quarter of 2010. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment increased $1.1 million to $97.3 million from $96.2 million for the fourth fiscal quarter of 2010. This increase was primarily attributable to the impact of higher sampling sales. This increase was partially offset by lower volume in our direct mail operations.

Consolidated Indebtedness
As of Dec. 31, 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 $1,936.8 million, including $12.4 million of capital lease and equipment financing obligations and excluding the original issue discount of $19.2 million related to the term loans under the senior secured credit facilities. Visant’s cash position as of December 31, 2011 totaled $36.0 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.

Source: Visant.