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Visant Corporation Announces solid 2006 First Quarter Results

Monday, May 08, 2006

Press release from the issuing company

ARMONK, NY, May 5, 2006 -- VISANT CORPORATION today announced its results for the first quarter ended April 1, 2006, including consolidated net sales of $312.6 million for the quarter, an increase of 1.1% over first quarter 2005 consolidated net sales of $309.1 million. In addition, the company reported consolidated net income for the first quarter of 2006 of $1.8 million compared to a consolidated net loss of $8.1 million for the same period of 2005. Visant also reported consolidated earnings before net interest expense, provision for income taxes and depreciation and amortization expense (EBITDA) of $52.6 million for the first quarter of 2006, an increase of 28.2% over the $41.1 million for the first quarter of 2005. Visant's consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) of $56.2 million for the first quarter of 2006 represents an increase of 16.3% compared to Adjusted EBITDA of $48.3 million during the first quarter of 2005.. Commenting on the first quarter 2006 results, Marc Reisch, Visant's Chairman, President and Chief Executive Officer said, "I am pleased with our solid first quarter results that were driven by the strong performance of our Jostens Scholastic segment, and the cost savings realized from our synergy programs versus last year." The net sales of the Jostens Scholastic segment increased $10.8 million, or 8.7%, to $134.4 million for the first quarter of 2006 from $123.6 million for the first quarter of 2005. The increase was primarily attributable to higher revenue from announcements and also higher first quarter diploma net sales due to improved production versus 2005's first quarter. Jostens Yearbook net sales increased $0.3 million, or 4.1%, to $8.3 million for the quarter ended April 1, 2006 compared to $8.0 million in the first quarter of 2005. Net sales of the Jostens Photo segment decreased $0.7 million, or 9.0%, from $8.2 million for the first three months of 2005 to $7.5 million for the same period in 2006. The decrease reflects lower overall volume. The net sales of the Marketing and Publishing Services segment decreased $6.1 million, or 4.8%, to $121.7 million during the first quarter of 2006 from $127.8 million in the first quarter of 2005. This decrease was primarily attributable to lower volume in our sampling business, $1.6 million of lower sales of paper to our customers and $1.2 million less revenue resulting from our shutdown of a facility in January 2005. The decrease was partially offset by solid growth in our direct marketing business. The net sales of the Educational Textbook business decreased $1.3 million, or 2.9%, to $42.8 million in the first three months of 2006 from $44.1 million in the first quarter of 2005 due to lower overall volume from customers. The Adjusted EBITDA of the Jostens Scholastic segment increased $5.8 million, or 23.5%, to $30.4 million during the first quarter of 2006 from $24.6 million during the first quarter of 2005. The year-over-year increase was primarily attributable to higher net sales. Jostens Yearbook Adjusted EBITDA improved $2.5 million, to a loss of $4.4 million for the first quarter of 2006 compared to a loss of $6.8 million for the same period in 2005. The increase in Jostens Yearbook Adjusted EBITDA compared to the prior year was related to savings from operating synergies and other cost reduction initiatives. Adjusted EBITDA of the Jostens Photo segment improved $0.1 million, to a loss of $2.9 million for the first quarter of 2006, compared to a loss of $3.0 million for first three months of 2005. The Adjusted EBITDA of the Marketing and Publishing Services segment increased $0.8 million, or 2.9%, to $26.9 million during the first quarter of 2006 from $26.2 million in the first quarter of 2005. This increase was primarily attributable to savings from operating synergies and other cost reductions initiatives previously implemented which offset the effects of lower net sales. The Adjusted EBITDA of the Educational Textbook segment decreased $1.3 million, or 17.3%, to $6.1 million in the first three months of 2006 from $7.3 million in the first quarter of 2005 due to lower overall volume from customers and product mix. As of April 1, 2006, Visant Corporation's consolidated debt was $1,328.4 million, including $11.9 million outstanding under its Canadian revolving line of credit. Visant's cash position at April 1, 2006 totaled $46.9 million. Visant Corporation's parent, Visant Holding Corp. ("Holdings"), also had senior discount notes with an accreted value of $189.4 million and cash of $0.8 million as of April 1, 2006. On April 4, 2006, Holdings sold $350.0 million principal amount of 8 3/4% Senior Notes due 2013 in a transaction not subject to the Securities Act of 1933, as amended. The senior notes are unsecured and not guaranteed by any of Holdings' subsidiaries, including Visant Corporation. Holdings used the net proceeds from the offering to fund a dividend to its stockholders and to pay fees and expenses associated with the offering. Visant has provided a reconciliation of net income to EBITDA and Adjusted EBITDA in the accompanying summary of financial data. It should be noted that Adjusted EBITDA as presented excludes certain non-recurring costs, including Jostens 2005 incremental diploma costs. These higher than planned diploma production and delivery costs were incurred in connection with the manufacturing inefficiencies resulting from relocation of Jostens' diploma operations out of the Red Wing, Minnesota manufacturing facility to certain other facilities in 2005. Supplemental data has also been provided for Visant's five segments: Jostens Scholastic, Jostens Yearbook, Jostens Photo, Marketing and Publishing Services and Educational Textbook. Visant Corporation is a leading marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance and cosmetics and educational publishing markets.

 

 

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