ARMONK, N.Y. - VISANT CORPORATION today announced results for its third fiscal quarter ended September 28, 2013, including consolidated net sales of $207.6 million, compared to$206.9 million for its third quarter ended September 29, 2012, an increase of approximately 0.3%.  Visant reported a consolidated net loss of $27.0 million for the third quarter of 2013 compared to a net loss of $19.5 million for the third quarter of 2012.  Visant's consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) was $34.7 million for the third fiscal quarter of 2013, a decrease of $4.5 million, compared to consolidated Adjusted EBITDA of $39.2 million for the third fiscal quarter of 2012.

For the nine months ended September 28, 2013, consolidated net sales were $901.0 million, a decrease of approximately 3.2%, compared to $930.4 million for the nine months ended September 29, 2012.  Consolidated net income decreased to $14.7 million during the nine-month period ended September 28, 2013compared to net income of $27.0 million for the comparable period in fiscal year 2012.  Consolidated Adjusted EBITDA totaled $251.5 million for the nine-month period ended September 28, 2013, a decrease of 4.1%, compared to Adjusted EBITDA of $262.1 million for the comparable period in fiscal year 2012.

Net sales for the Scholastic segment were $44.5 million for the third fiscal quarter of 2013 compared to $41.7 million for the third fiscal quarter of 2012.  This increase was primarily attributable to higher volume in professional championship jewelry.

Net sales for the Memory Book segment were $63.2 million for the third fiscal quarter of 2013 compared to$66.5 million for the third fiscal quarter of 2012.  This decrease was primarily attributable to lower yearbook volume.

Net sales for the Marketing and Publishing Services segment for the third fiscal quarter of 2013 increased $1.2 million to $100.1 million from $98.9 million for the third fiscal quarter of 2012.  This increase included sales attributable to the Company's acquisition of SAS Carestia ("Carestia"), a leader in fragrance sampling inEurope, which closed on July 1, 2013.  Excluding the impact attributable to the acquisition of Carestia, net sales declined $3.3 million compared to the third fiscal quarter of 2013, primarily due to lower sampling volume in North America.   

Adjusted EBITDA for the Scholastic segment was a loss of $8.7 million for the third fiscal quarter of 2013, compared to a loss of $9.1 million for the third fiscal quarter of 2012, due to higher professional championship volume and lower overall costs.

Adjusted EBITDA for the Memory Book segment for the third fiscal quarter of 2013 was $21.6 million, a decrease of $1.4 million, compared to $23.0 million for the third fiscal quarter of 2012.  This decrease was primarily attributable to lower volume and higher variable compensation costs, partially offset by the impact of cost saving initiatives and lower pension expense.

The Marketing and Publishing Services segment reported Adjusted EBITDA of $21.7 million for the third fiscal quarter of 2013 compared to $25.2 million for the third fiscal quarter of 2012.  This decrease was primarily due to lower volume and a shift in sales mix in our sampling operations.  In addition, the third fiscal quarter of 2012 included $1.4 million of Adjusted EBITDA attributable to the integrated marketing programs produced under the collaborative business arrangement in which Visant participated with an affiliate until the third fiscal quarter of 2012. 

Net sales for the Scholastic segment for the nine-month period ended September 28, 2013 decreased by $7.9 million, or 2.4%, to $317.2 million compared to $325.1 million for the nine-month period ended September 29, 2012.  This decrease was primarily attributable to lower volume in our announcement products and lower revenue from professional championship jewelry compared to 2012.  Partially offsetting the decrease was the shift of approximately $4.0 million of jewelry sales to the 2013 fiscal year from the fall of 2012. 

Net sales for the Memory Book segment were $316.6 million for the nine-month period ended September 28, 2013, a decrease of 3.9%, compared to $329.6 million for the nine-month period ended September 29, 2012.  This decrease was primarily attributable to lower yearbook volume. 

Net sales for the Marketing and Publishing Services segment decreased to $267.7 million for the nine-month period ended September 28, 2013 compared to $276.2 million during the nine-month period endedSeptember 29, 2012.  This decrease was primarily attributable to lower volume in our publishing services and sampling operations, partially offset by the impact of sales attributable to the acquisition of Carestia and higher volume in our direct mail operations. 

For the nine-month period ended September 28, 2013, the Scholastic segment reported Adjusted EBITDA of$55.8 million, an increase of $4.5 million, compared to $51.3 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 $143.3 million for the nine-month period endedSeptember 28, 2013, a decrease of $4.0 million, compared to $147.3 million for the nine-month period endedSeptember 29, 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 $52.4 million for the nine-month period ended September 28, 2013, a decrease of $11.1 million, compared to $63.5 million for the prior year comparative period.  This decrease was primarily due to lower volume in our sampling business, including the impact of a shift in sales mix in our sampling operations.  In addition, the 2012 period included the $1.4 millionof Adjusted EBITDA attributable to the integrated marketing services collaborative business arrangement previously referred to.

Consolidated Indebtedness

As of September 28, 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 $1,905.1 million, including $19.0 million outstanding under its revolving credit facilities, $9.0 million of capital lease and equipment financing obligations and exclusive of original issue discount of $12.7 million related to the term loan under the senior secured credit facilities.  Visant's cash position as of September 28, 2013 totaled $33.3 million.

Based on seasonality of our cash flow, Visant traditionally borrows under its revolving credit facility during the third fiscal quarter to fund general working capital needs.  The Company paid approximately $52.1 million of interest under its senior notes and senior secured credit facilities directly following the end of the third fiscal quarter.

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