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Visant Corporation Announces 2012 Full Year And Fourth Quarter Results

Monday, March 11, 2013

Press release from the issuing company

ARMONK, N.Y. -- VISANT CORPORATION today announced results for its fiscal year ended December 29, 2012, including consolidated net sales of $1,155.3 million, compared to $1,217.8 million for its fiscal year ended December 31, 2011, a decrease of approximately 5%.  In addition, Visant reported a consolidated net loss of $58.6 million for the fiscal year ended December 29, 2012, compared to a consolidated net loss of $14.9 million for the fiscal year ended December 31, 2011.  The loss for the 2012 fiscal year was primarily attributable to an aggregate $64.2 million non-cash impairment charge associated with the write-down of goodwill in the Marketing and Publishing Services and Scholastic segments.  The loss for the 2011 fiscal year was primarily attributable to a $31.9 million non-cash impairment charge associated with the write-down of certain intangible assets in the Marketing and Publishing Services segment.  Before giving effect to the non-cash impairment charges in each of fiscal 2012 and 2011, consolidated EBITDA for the full fiscal year 2012 was $274.9 million compared to $289.9 million for the 2011 fiscal year.  Visant's consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) was $298.1 million for the 2012 fiscal year, a decrease of $29.6 million compared to consolidated Adjusted EBITDA of $327.7 million for the 2011 fiscal year.

For the fourth fiscal quarter of 2012, consolidated net sales were $225.0 million, a decrease of approximately 9% compared to consolidated net sales of $246.3 million for the fourth fiscal quarter of 2011.  In addition, the company reported a consolidated net loss of $85.6 million for the fourth quarter of 2012 compared to a net loss of $44.7 million for the fourth quarter of 2011.  The increased net loss was primarily attributable to the $64.2 million non-cash impairment charge associated with the write-down of goodwill in the Marketing and Publishing Services and Scholastic segments.  Excluding the impact of the non-cash impairment charges for each quarter, consolidated EBITDA for the fourth quarter of 2012 was $30.7 million compared to consolidated EBITDA of $35.0 million for the fourth quarter of 2011.  Consolidated Adjusted EBITDA was $35.9 million for the fourth quarter of 2012 compared to consolidated Adjusted EBITDA of $42.3 million for the fourth quarter of 2011.

Fiscal Year 2012

Net sales for the Scholastic segment for the fiscal year ended December 29, 2012 decreased by $28.9 million, or 6.1%, to $445.8 million compared to $474.7 million for the fiscal year ended December 31, 2011.  This decrease was primarily attributable to lower overall volume in jewelry and announcement products, as well as a shift in jewelry sales metal mix to lower priced metals. In addition, approximately $4.0 million of sales shifted to the first half of 2013 from the fourth quarter of 2012 due to the timing of deliveries to the end customer.  This decrease was offset somewhat by higher prices in jewelry products due to higher metal costs.

Net sales for the Memory Book segment were $346.1 million for the fiscal year ended December 29, 2012, a decrease of 4.5%, compared to $362.4 million for the fiscal year ended December 31, 2011.  This decrease was primarily attributable to lower volume. 

Net sales for the Marketing and Publishing Services segment decreased $16.5 million, or 4.3%, to $364.3 million for the fiscal year ended December 29, 2012, compared to $380.8 million for the fiscal year ended December 31, 2011.  This decrease was primarily attributable to lower volume in our publishing services and direct mail operations partially offset by higher volume in our sampling operations. 

The Scholastic segment reported Adjusted EBITDA of $72.5 million for the fiscal year ended December 29, 2012, a decrease of $8.1 million, compared to $80.6 million for the fiscal year ended December 31, 2011.  This decrease was primarily due to lower overall volume and increased pension expense. 

Our Memory Book segment reported Adjusted EBITDA of $143.7 million for the fiscal year ended December 29, 2012, a decrease of $15.3 million, compared to $159.0 million for the prior year comparative period.  This decrease was primarily due to lower volume.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $81.9 million for the fiscal year ended December 29, 2012, a decrease of $6.1 million, compared to $88.0 million for the prior year comparative period.  This decrease was primarily due to lower volume in our publishing services and direct mail operations partially offset by higher volume in our sampling business.

Fourth Fiscal Quarter 2012

Net sales for the Scholastic segment were $120.7 million for the fourth fiscal quarter of 2012, a decrease of 9.7%, compared to $133.7 million for the fourth fiscal quarter of 2011.  This decrease was primarily attributable to lower overall jewelry volume and a shift of approximately $4.0 million of sales to the first half of 2013 from the fourth quarter of 2012 due to the timing of deliveries to the end customer.  This decrease was offset somewhat by higher prices in jewelry products due to higher metal costs.  

Net sales for the Memory Book segment were $16.5 million for the fourth fiscal quarter of 2012 compared to $15.3 million for the fourth fiscal quarter of 2011.  This increase was primarily attributable to a shift in the timing of shipments from the third fiscal quarter of 2012 to the fourth fiscal quarter of 2012.

Net sales for the Marketing and Publishing Services segment decreased $9.2 million, or 9.4%, to $88.1 million from $97.3 million for the fourth fiscal quarter of 2011.  This decrease was primarily attributable to lower volume in our publishing services and sampling operations.

Adjusted EBITDA for the Scholastic segment decreased $3.3 million to $21.2 million for the fourth fiscal quarter of 2012 from $24.5 million for the fourth fiscal quarter of 2011.  This decrease was primarily due to lower overall jewelry volume, partially offset by higher prices in jewelry products due to higher metal costs.

For the fourth fiscal quarter of 2012, Adjusted EBITDA for the Memory Book segment was a loss of $3.6 million compared to a loss of $2.0 million for the fourth fiscal quarter of 2011, due to higher selling and administrative expenses in the fourth fiscal quarter of 2012 compared to the fourth fiscal quarter of 2011. 

The Marketing and Publishing Services segment reported Adjusted EBITDA of $18.4 million for the fourth fiscal quarter of 2012 compared to $19.8 million for the fourth fiscal quarter of 2011.  This decrease was primarily due to lower volume in our publishing services and sampling operations.

Consolidated Indebtedness

As of December 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 $1,900.0 million, including $10.9 million of capital lease and equipment financing obligations and exclusive of original issue discount of $15.5 million related to the term loan under the senior secured credit facilities.  Visant's cash position as of December 29, 2012 totaled $60.2 million.

The company accrued approximately $16.0 million of interest under its senior notes and senior secured credit facilities as of December 29, 2012.  This amount was paid on the next business day, January 2, 2013.

 

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