ARMONK, N.Y., - VISANT CORPORATION today announced results for its third fiscal quarter ended September 29, 2012, including consolidated net sales of $206.9 million, compared to $227.6 million for its third quarter ended October 1, 2011, a decrease of approximately 9%.  Visant reported a consolidated net loss of $19.5 million for the third quarter of 2012 compared to a net loss of $12.3 million for the third quarter of 2011.  Visant's consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) was $39.2 million for the third fiscal quarter of 2012, a decrease of $6.2 million compared to consolidated Adjusted EBITDA of $45.4 million for the third fiscal quarter of 2011.

For the nine months ended September 29, 2012, consolidated net sales were $930.4 million, a decrease of approximately 4% compared to $971.5 million for the nine months ended October 1, 2011.  Consolidated net income was $27.0 million for the nine-month period ended September 29, 2012 compared to net income of $29.8 million for the comparable period in fiscal year 2011.  Consolidated Adjusted EBITDA totaled $262.1 million for the nine-month period ended September 29, 2012, a decrease of $23.3 million compared to Adjusted EBITDA of $285.4 million for the comparable period in fiscal year 2011.

Net sales for the Scholastic segment were $41.7 million for the third fiscal quarter of 2012, a decrease of 15%, compared to $49.0 million for the third fiscal quarter of 2011.  This decrease was primarily attributable to $4.5 million of lower volume in our professional championship jewelry products when compared to the prior year comparable period.  Also contributing to the decline was lower sales volume of class rings.

Net sales for the Memory Book segment were $66.5 million for the third fiscal quarter of 2012, a decrease of 9%, compared to $72.7 million for the third fiscal quarter of 2011.  This decrease was primarily attributable to lower volume in the quarter, including due to a shift in the timing of approximately $2.2 million of shipments of yearbooks to the fourth quarter of 2012 from the third quarter of 2012.

Net sales for the Marketing and Publishing Services segment decreased $7.1 million, or 7%, to $98.9 million from $106.0 million for the third 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.

Adjusted EBITDA for the Scholastic segment declined $1.2 million to a loss of $9.1 million compared to a loss of $7.9 million for the third fiscal quarter of 2011.  This decrease was primarily due to lower volume in our professional championship jewelry products.

Adjusted EBITDA for the Memory Book segment for the third fiscal quarter of 2012 was $23.0 million, a decrease of $1.5 million, compared to $24.6 million for the third fiscal quarter of 2011.  This decrease was primarily attributable to lower volume, partially offset by savings from previously announced facility consolidations.

The Marketing and Publishing Services segment reported Adjusted EBITDA for the third fiscal quarter of 2012 of $25.2 million, a decrease of $3.5 million, compared to $28.7 million for the third 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 nine-month period ended September 29, 2012 decreased by $15.9 million, or 5%, to $325.1 million compared to $340.9 million for the nine-month period ended October 1, 2011.  This decrease was primarily attributable to lower overall 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 $329.6 million for the nine-month period ended September 29, 2012, a decrease of 5%, compared to $347.1 million for the nine-month period ended October 1, 2011.  This decrease was primarily attributable to lower volume, including a shift in timing of shipments of yearbooks to the fourth quarter of 2012 from the third quarter of 2012.

Net sales for the Marketing and Publishing Services segment decreased to $276.2 million for the nine-month period ended September 29, 2012, a decrease of 3%, compared to $283.5 million during the nine-month period ended October 1, 2011.  This decrease was primarily attributable to lower volume in our publishing services business (including as a result of the cessation of production of overhead transparency products in September 2011) and direct mail operations partially offset by higher volume in our sampling operations.

For the nine-month period ended September 29, 2012, the Scholastic segment reported Adjusted EBITDA of $51.3 million, a decrease of $4.8 million, or 9%, compared to $56.1 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 $147.3 million for the nine-month period ended September 29, 2012, a decrease of $13.8 million, or 9%, compared to $161.1 million for the nine-month period ended October 1, 2011.  This decrease was primarily due to lower volume and increased pension expense, partially offset by savings from previously announced facility consolidations.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $63.5 million for the nine-month period ended September 29, 2012, a decrease of $4.7 million, or 7%, compared to $68.3 million for the prior year comparative period.  This decrease was primarily due to lower volume in our publishing services and significantly lower volume in our direct mail operations partially offset by higher volume in our sampling business.

The company also announced that effective December 31, 2012 it will be freezing the accrual of additional benefits under its qualified and non-qualified pension plans for active, non-bargained employees and under its executive supplemental retirement agreements.  The affected qualified pension plans were closed to new hires as of January 1, 2006.

As of September 29, 2012, Visant's consolidated debt, comprised of the outstanding indebtedness under its senior secured credit facilities and its 10.00% senior notes due 2017, was $1,996.9 million, including $61.0 million outstanding under its revolving credit facilities, $11.5 million of capital lease and equipment financing obligations and exclusive of original issue discount of $16.7 million related to the term loan under the senior secured credit facilities.  Visant's cash position as of September 29, 2012 totaled $59.2 million.

Based on seasonality of our cash flow, we traditionally borrow under our revolving credit facility during the third quarter to fund general working capital needs.  The company paid approximately $53.9 million of interest under its senior notes and senior secured credit facilities on October 1, 2012.

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.

CONFERENCE CALL

The company's regular quarterly conference call concerning the third quarter results will be webcast live today at 10:00 a.m. Eastern Time on the Investor Information section of Visant's website at www.visant.net.