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Visant Reports Lower Sales, Flat Income in Q2

Tuesday, August 13, 2013

Press release from the issuing company

ARMONK, N.Y. - VISANT CORPORATION today announced results for its second fiscal quarter ended June 29, 2013, including consolidated net sales of $448.5 million, compared to $464.7 million for its second quarter ended June 30, 2012, a decrease of approximately 3.5%.  Visant reported consolidated net income of $56.7 million for the second quarter of 2013 compared to net income of $56.6 million for the second quarter of 2012.  Visant's consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) was $168.9 million for the second fiscal quarter of 2013, a decrease of $3.9 million, compared to consolidated Adjusted EBITDA of $172.8 million for the second fiscal quarter of 2012.

For the first six months of fiscal year 2013, consolidated net sales were $693.5 million, a decrease of approximately 4.1% compared to $723.5 million for the first six months of fiscal year 2012.  Consolidated net income decreased to $41.8 millionduring the first six months of fiscal year 2013 compared to net income of $46.5 million for the comparable period in fiscal year 2012.  Consolidated Adjusted EBITDA totaled $216.9 million for the first six months of fiscal year 2013, a decrease of 2.7%, compared to Adjusted EBITDA of $223.0 million for the comparable period in fiscal year 2012.

Net sales for the Scholastic segment were $127.1 million for the second fiscal quarter of 2013, a decrease of 0.6%, compared to$127.9 million for the second fiscal quarter of 2012.  This decrease was primarily attributable to lower professional championship revenues, partially offset by a shift of approximately $4 million of jewelry sales to the second quarter of 2013 from earlier in the school year due to timing of deliveries. 

Net sales for the Memory Book segment were $247.8 million for the second fiscal quarter of 2013, a decrease of 3.8%, compared to $257.6 million for the second fiscal quarter of 2012.  This decrease was primarily attributable to lower yearbook volume.

Net sales for the Marketing and Publishing Services segment for the second fiscal quarter of 2013 decreased $5.7 million, or 7.2%, to $73.7 million from $79.4 million for the second fiscal quarter of 2012.  This decrease was primarily attributable to lower volume in our sampling operations, partially offset by higher volume in our direct mail operations. 

Adjusted EBITDA for the Scholastic segment increased $3.5 million to $29.9 million for the second fiscal quarter of 2013 from$26.4 million for the second fiscal quarter of 2012.  This increase was primarily due to lower overall costs, including lower selling and administrative expenses, material costs and pension expense compared to the second fiscal quarter of 2012.

Adjusted EBITDA for the Memory Book segment for the second fiscal quarter of 2013 was $126.8 million, a decrease of $4.8 million, compared to $131.6 million for the second fiscal quarter of 2012.  This decrease was primarily attributable to lower volume, partially offset by the impact of cost saving initiatives and lower pension expense.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $12.1 million for the second fiscal quarter of 2013 compared to $14.8 million for the second fiscal quarter of 2012.  This decrease was primarily due to lower volume in our sampling operations.

Net sales for the Scholastic segment for the six months ended June 29, 2013 decreased by $10.6 million, or 3.7%, to $272.7 million compared to $283.3 million for the six months ended June 30, 2012.  This decrease was primarily attributable to lower volume in our announcement products and lower jewelry volume driven by less revenue from professional championship ring deliveries during the first six months of 2013 compared to the first six months of 2012.  Partially offsetting the decrease was the shift of $4 million of jewelry sales to the second quarter of 2013 from earlier in the school year. 

Net sales for the Memory Book segment were $253.4 million for the six-month period ended June 29, 2013, a decrease of 3.7%, compared to $263.1 million for the six-month period ended June 30, 2012.  This decrease was primarily attributable to lower yearbook volume. 

Net sales for the Marketing and Publishing Services segment decreased to $167.6 million for the first six months of fiscal 2013 compared to $177.3 million during the first six months of fiscal 2012.  This decrease was primarily attributable to lower volume in our publishing services and sampling operations, partially offset by higher volume in our direct mail operations. 

For the six months ended June 29, 2013, the Scholastic segment reported Adjusted EBITDA of $64.5 million, an increase of $4.1 million, compared to $60.4 million for the prior year comparative period.  This increase was primarily due to lower overall costs, including lower selling and administrative expenses, material costs and pension expense.

Our Memory Book segment reported Adjusted EBITDA of $121.7 million for the six months ended June 29, 2013, a decrease of$2.6 million, compared to $124.3 million for the six months ended June 30, 2012.  This decrease was primarily due to lower volume partially offset by lower overall costs as a result of cost saving initiatives and lower pension expense.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $30.7 million for the six months ended June 29, 2013, a decrease of $7.6 million, or 19.9%, compared to $38.3 million for the prior year comparative period.  This decrease was primarily due to lower volume in our sampling business.

Consolidated Indebtedness

As of June 29, 2013, Visant's consolidated debt, comprised of the outstanding indebtedness under its senior secured credit facilities and its 10.00% senior notes due 2017, was $1,886.3 million, including $9.2 million of capital lease and equipment financing obligations and exclusive of original issue discount of $13.6 million related to the term loan under the senior secured credit facilities.  Visant's cash position as of June 29, 2013 totaled $74.8 million.

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.

Full Release (PDF)

 

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