Visant Corporation Announces 2005 First Quarter Results.ARMONK, N.Y. -- VISANT CORPORATION (formerly Jostens Jostens is an American company that produces class rings for various high schools and colleges as well as championship rings for sports, including the Super Bowl rings. They also publish yearbooks. The company is based in Minneapolis, Minnesota and was founded in 1897. IH Corp., "Visant") today announced 2005 first quarter sales of $309.1 million, a decrease of 0.3% versus first quarter 2004 sales of $310.1 million. In addition, the company reported a 2005 first quarter net loss of $8.1 million, compared to a net loss of $27.6 million for the first quarter of 2004. The company also reported net income before net interest expense and loss on debt redemption, income taxes, and depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) of $39.8 million for the first quarter of 2005 versus $38.1 million for the same prior year period. The company further reported Adjusted EBITDA (as defined in the accompanying summary of financial data) of $44.7 million for the first quarter of 2005, compared to Adjusted EBITDA of $41.0 million for the first quarter of 2004. Visant has provided a reconciliation of net loss to EBITDA and Adjusted EBITDA in the accompanying summary of financial data. Supplemental data is provided for Jostens, Inc. ("Jostens") and Visant's Print Group, which is comprised of the operations of Von Von. For some German names beginning thus, see under the proper name; e.g., for Otto von Bismarck, see Bismarck, Otto von. (Voice On the Net, Video On the Net) A trade show sponsored by pulver. Hoffmann Hoffmann thrice a loser when one girl turns out to be a mechanical doll, the second dies, and the third loves another man. [Fr. Opera: Tales of Hoffmann in Scholes, 1005] See : Love, Unrequited Holdings Inc. ("Von Hoffmann"), including Von Hoffmann's subsidiary, The Lehigh Lehigh (lē`hī), river, 103 mi (166 km) long, rising in NE Pa. and flowing generally SE to the Delaware River at Easton. It flows through the Lehigh Valley, where rich anthracite deposits made Allentown and Bethlehem (a famed steel producer) Press, Inc. ("Lehigh") and AHC AHC Appalachian Hardwood Center AHC American Heritage Center (University of Wyoming, Laramie, WY) AHC American Horse Council AHC Association for History and Computing AHC Australian Heritage Commission AHC Assault Helicopter Company I Acquisition Corp. ("Arcade arcade, series of arches supported by columns or piers. An arcade may stand free; if it is attached to a wall it is called a wall arcade or a blind arcade. The earliest-known arcades were in Roman architecture, in which piers, ornamented with engaged columns carrying "). Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for Jostens were $139.7 million for the three-month period, a decrease of 2.3%, compared to $143.1 million in the prior year comparative period. This period over period decrease was primarily attributable to the timing of expected shipments of graduation Graduation is the action of receiving or conferring an academic degree or the associated ceremony. The date of event is often called degree day. The event itself is also called commencement, convocation or invocation. products from first quarter to second quarter compared to the same prior year period. Net sales for the Print Group were $169.4 million for the three-month period, an increase of 1.4%, compared to $167.0 million of net sales in first quarter of 2004. This growth resulted primarily from increased sampling and direct marketing production offset by a reduction in the sale of paper to customers of approximately $6.0 million. Jostens reported first quarter 2005 Adjusted EBITDA of $11.7 million, a decline of $1.7 million, compared to $13.3 million in the prior year comparative period. This decline was due primarily to the shift of graduation product sales to the second quarter and significantly higher diploma A higher diploma is an academic award in Hong Kong and Ireland. In Hong Kong the award is below the standard of the bachelor's degree, in Ireland it is above the standard of the bachelor's degree. production costs, offset by reductions in selling and administrative expenses. Jostens will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. diploma DIPLOMA. An instrument of writing, executed by, a corporation or society, certifying that a certain person therein named is entitled to a certain distinction therein mentioned. 2. production costs again in the second quarter. The Print Group reported first quarter 2005 Adjusted EBITDA of $33.0 million, an increase of $5.4 million, compared to $27.6 million for the same prior year period, related to increased volume, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix and cost savings versus the prior year. As of April 2, 2005, Visant's cash position was $18.2 million, and $9.1 million was outstanding under its revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . Total debt less cash of Visant was $1,447.3 million as of April 2, 2005. Visant made an optional bank term loan pre-payment of $63.6 million on February February: see month. 22, 2005. "We are off to a solid start in 2005, driven by strong earnings performance across the Print Group. Our Print Group's Adjusted EBITDA margin in the first quarter improved to 19.5% versus 16.5% last year. The cost synergy Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. plan continues to be on track, and most of the savings initiatives will be in place beginning in the second quarter," said Marc Reisch, Chairman, President and Chief Executive Officer of Visant. On October October: see month. 4, 2004, Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. & Co. L.P. and affiliates of DLJ Merchant Banking Partners DLJ Merchant Banking Partners (DLJMB) is a LBO-focused private equity firm of Credit Suisse. DLJMB has offices in New York, London and Los Angeles. External links
Jostens is a leading provider of school-related affinity products and services that help people celebrate important moments, recognize achievements and build affiliation. Jostens' products include yearbooks, class rings, graduation products and school photography. Visant's Print Group includes the operations of Von Hoffmann, Lehigh Lithographers, Arcade and Lehigh Direct. Von Hoffmann is a leading manufacturer of four-color four-col·or adj. Of or being an overprinting or photographic process in which three primary colors and black are transferred by four different plates or filters to a surface, reproducing the colors of the subject matter. case bound and soft-cover educational textbooks, standardized test A standardized test is a test administered and scored in a standard manner. The tests are designed in such a way that the "questions, conditions for administering, scoring procedures, and interpretations are consistent" [1] materials and related components for major educational publishers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Lehigh Lithographers is a leading manufacturer of textbook textbook Informatics A treatise on a particular subject. See Bible. covers. Von Hoffmann also provides commercial printing services to non-educational customers, including business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. catalogers. Arcade is a leading global marketer and manufacturer of multi-sensory and interactive advertising sampling systems for the fragrance, cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). and personal care markets as well as other consumer product markets, including household products and the food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. industries. Lehigh Direct provides a range of innovative printing products and services to the direct marketing sector. This release may contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." Forward-looking statements are based on our current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "estimate," "project," "plan," "anticipate," "expect," "intend," "outlook," "continue," "believe," or the negative thereof or other similar expressions that are intended to identify forward-looking statements and information. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company or industry results, to differ materially from historical results, any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on estimates and assumptions by our management that, although we believe are reasonable, are inherently uncertain and subject to a number of risks and uncertainties and you should not place undue reliance on them. Such risks and uncertainties include, but are not limited to, the following: our substantial indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. ; our inability to implement our business strategy and achieve anticipated cost savings in a timely and effective manner; competition from other companies; the seasonality of our businesses; the loss of significant customers or customer relationships; fluctuations in raw material prices; our reliance on a limited number of suppliers; our reliance on numerous complex information systems; the reliance of our businesses on limited production facilities; the amount of capital expenditures required at our businesses; labor disturbances; environmental regulations; foreign currency fluctuations and foreign exchange rates; the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; control by our controlling stockholders; our dependency dependency In international relations, a weak state dominated by or under the jurisdiction of a more powerful state but not formally annexed by it. Examples include American Samoa (U.S.) and Greenland (Denmark). on the sale of school textbooks, the textbook adoption cycle and levels of government funding for education spending; Jostens' reliance on independent sales representatives; and the failure of Arcade's sampling systems to comply with U.S. postal regulations. These factors could cause actual results to differ materially from historical results or those anticipated or predicted by the forward-looking statements. We caution that the foregoing list of important factors is not exclusive. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update publicly or revise any of them in light of new information, future events or otherwise, except as required by law.
The foregoing information contains financial measures other than in
accordance with generally accepted accounting principles and should
not be considered in isolation from or as a substitute for the
company's historical condensed consolidated financial statements. The
company presents this information because management uses it to
monitor and evaluate the company's ongoing operating results and
trends, and believes it provides investors an understanding of the
company's operating performance over comparative periods, and because
the covenants in its debt agreements are tied to these measures.
VISANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended
--------------------
April 2, April 3,
In thousands 2005 2004
----------------------------------------------------------------------
Net sales $309,120 $310,084
Cost of products sold 189,514 192,322
----------------------------------------------------------------------
Gross profit 119,606 117,762
Selling and administrative expenses 103,133 107,195
Special charges 3,836 690
----------------------------------------------------------------------
Operating income 12,637 9,877
Interest expense, net 26,233 38,603
Loss on redemption of debt -- 420
----------------------------------------------------------------------
Loss before income taxes (13,596) (29,146)
Benefit from income taxes (5,507) (1,546)
----------------------------------------------------------------------
Net loss $(8,089) $(27,600)
======================================================================
Adjusted EBITDA (1) $44,682 $40,966
Adjusted EBITDA Reconciliation:
In thousands
----------------------------------------------------------------------
Net loss $(8,089) $(27,600)
Interest expense, net 26,233 38,603
Benefit from income taxes (5,507) (1,546)
Depreciation and amortization expense 27,145 28,616
----------------------------------------------------------------------
EBITDA 39,782 38,073
Special charges (2) 3,836 690
Loss on redemption of debt -- 420
Other (3) 1,064 1,783
----------------------------------------------------------------------
Adjusted EBITDA (1) $44,682 $40,966
======================================================================
(1)The indentures governing our and our parent's outstanding notes and
our senior secured credit facilities contain financial ratios that
are calculated by reference to Adjusted EBITDA. Adjusted EBITDA is
defined as net income (loss) plus net interest expense, income
taxes, depreciation and amortization, further adjusted to give
effect to adjustments required in calculating covenant ratios and
compliance under the indentures governing our and our parent's
notes and our senior secured credit facilities. Adjusted EBITDA is
a material component of these covenants. For example,
non-compliance with the financial ratio maintenance covenants
contained in our senior secured credit facilities could result in
the requirement to immediately repay all amounts outstanding under
such facilities, while non-compliance with the debt incurrence
ratios contained in the indentures governing our and our parent's
notes would prohibit Visant Corporation and its restricted
subsidiaries from being able to incur additional indebtedness
other than pursuant to specified exceptions. Adjusted EBITDA is
not a presentation made in accordance with generally accepted
accounting principles in the United States of America (GAAP), is
not a measure of financial condition or profitability, and should
not be considered as an alternative to (1) net income (loss)
determined in accordance with GAAP or (2) operating cash flows
determined in accordance with GAAP. Additionally, Adjusted EBITDA
is not intended to be a measure of free cash flow for management's
discretionary use, as it does not consider certain cash
requirements such as interest payments, tax payments and debt
service requirements. Because not all companies use identical
calculations, this presentation of Adjusted EBITDA may not be
comparable to other similarly titled measures of other companies.
(2)Consists of restructuring costs and costs incurred in connection
with the October 4, 2004 transactions.
(3)Consists primarily of management and advisory fees and certain
non-recurring litigation costs.
VISANT CORPORATION AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL DATA
Three months ended
------------------
April 2, April 3,
In thousands 2005 2004 $Change % Change
----------------------------------------------------------------------
Net sales
Jostens, Inc. $139,738 $143,085 $(3,347) (2.3%)
Print Group 169,382 166,999 2,383 1.4%
-------------------------------------------------------------
Total $309,120 $310,084 $(964) (0.3%)
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Adjusted EBITDA
Jostens, Inc. $11,660 $13,332 $(1,672) (12.5%)
Print Group 33,022 27,634 5,388 19.5%
-------------------------------------------------------------
Total $44,682 $40,966 $3,716 9.1%
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