Visant Posts Declines in Net Sales Across All Three Market Segments

ARMONK, NY—August 13, 2012—Visant Corp. announced its financial results for the second fiscal quarter ended June 30, 2012, including consolidated net sales of $464.7 million, compared to $493.1 million for its second quarter ended July 2, 2011, a decrease of approximately 6 percent.

The company reported consolidated net income of $56.6 million for the quarter vs. net income of $60.6 million for the second quarter of 2011. Its Adjusted EBITDA was $172.8 million, a decrease of $18.4 million compared to consolidated Adjusted EBITDA of $191.2 million for the second fiscal quarter of 2011.

For the first six months of fiscal year 2012, Visant’s consolidated net sales total $723.5 million, a decrease of approximately 3 percent compared to $743.9 million for the first six months of fiscal year 2011. Consolidated net income increased to $46.5 million, compared to net income of $42.1 million for the comparable period in fiscal year 2011. Consolidated Adjusted EBITDA totaled $223.0 million, a decrease of 7 percent compared to Adjusted EBITDA of $240.0 million for the comparable period in fiscal year 2011.

Net sales for the Scholastic segment were $127.9 million for the second quarter of 2012, a decrease of 6 percent compared to $135.7 million for the second fiscal quarter of 2011. This decrease was primarily attributable to lower volume in our jewelry and announcement products, as well as a shift in jewelry sales metal mix to lower priced metals.

Net sales for the Memory Book segment were $257.6 million, a decrease of 4 percent compared to $268.8 million for the second fiscal quarter of 2011. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment decreased $9.3 million, or 10 percent, to $79.4 million from $88.7 million for the second fiscal quarter of 2011. This decrease was attributable to lower volume in our direct mail and publishing services operations partially offset by higher volume in our sampling operations.

The Scholastic segment reported Adjusted EBITDA of $26.4 million, a decrease of $3.6 million compared to $30.0 million for the second fiscal quarter of 2011. This decrease was primarily due to lower overall volumes in our jewelry and announcement products.

Adjusted EBITDA for the Memory Book segment was $131.6 million, a decrease of $10.1 million compared to $141.7 million for the second fiscal quarter of 2011. This decrease was primarily attributable to lower volume.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $14.8 million, a decrease of $4.8 million compared to $19.5 million for the second fiscal quarter of 2011. This decrease was primarily due to lower volume in our direct mail and publishing services operations partially offset by higher volume in our sampling operations.

Net sales for the Scholastic segment for the six months ended June 30, 2012 decreased by $8.7 million, or 3 percent, to $283.3 million, vs. $292.0 million for the six months ended July 2, 2011. This decrease was primarily attributable to lower volume in our jewelry and announcement products, as well as a shift in jewelry sales metal mix to lower priced metals.

Net sales for the Memory Book segment were $263.1 million for the six-month period, a decrease of 4 percent, compared to $274.4 million for the six-month period ended July 2, 2011. This decrease was primarily attributable to lower volume.

Net sales for the Marketing and Publishing Services segment decreased slightly to $177.3 million for the first six months of fiscal 2012, compared to $177.5 million during the first six months of fiscal 2011. This decrease was primarily attributable to lower volume in our publishing services business (including the cessation of overhead transparency revenues) and direct mail operations offset by significantly higher volume in our sampling operations.

For the six months ended June 30, 2012, the Scholastic segment reported Adjusted EBITDA of $60.4 million, a decrease of $3.5 million compared to $63.9 million for the prior year comparative period. This decrease was primarily due to lower overall volumes and increased pension expense.

Our Memory Book segment reported Adjusted EBITDA of $124.3 million for the six months ended June 30, 2012, a decrease of $12.2 million compared to $136.5 million for the six months ended July 2, 2011. This decrease was primarily due to lower volume and increased pension expense.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $38.3 million for the six months ended June 30, 2012, a decrease of $1.3 million, or 3 percent, compared to $39.6 million for the prior year comparative period. This decrease was primarily due to lower volume in our publishing services and direct mail operation partially offset by higher volumes in our sampling business.

About Visant
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, Memory Book, and Marketing and Publishing Services.

Source: Visant.