Visant Reports 2015 Q2, 1H Results

Visant Corp. announced results for its second fiscal quarter ended July 4, 2015, including consolidated net sales from continuing operations of $380.4 million, compared to $389.4 million for its second fiscal quarter ended June 28, 2014.
 
Visant reported consolidated net income from continuing operations of $22.0 million for the second fiscal quarter of 2015, compared to consolidated net income from continuing operations of $56.5 million for the second fiscal quarter of 2014.
 
The decrease in net income for the second quarter was primarily attributable to a $52.1 million non-cash impairment charge associated with the sale of Phoenix Color Corp. in the Publishing and Packaging Services segment. Before giving effect to the non-cash impairment charge in the second quarter of 2015, consolidated Adjusted EBITDA (defined in the accompanying summary of financial data) for the three months ended July 4, 2015, was $162.0 million compared to $162.3 million for the second fiscal quarter of 2014.
 
For the first six months of fiscal year 2015, consolidated net sales from continuing operations were $550.0 million compared to $558.0 million for the first six months of fiscal year 2014. Consolidated net income from continuing operations decreased to $7.5 million during the first six months of fiscal year 2015 compared to consolidated net income from continuing operations of $43.0 million for the comparable period in fiscal year 2014. Adjusted EBITDA totaled $193.4 million for the first six months of fiscal year 2015 compared to consolidated Adjusted EBITDA of $194.0 million for the comparable period in fiscal year 2014.
 
On July 13, 2015, Visant Corp. announced its entry into a definitive purchase agreement with ALJ Regional Holdings dated July 11, 2015, for the sale by Visant of Phoenix Color Corp. and its subsidiaries, which comprise Visant’s Publishing and Packaging Services segment, in exchange for consideration of $90 million in cash, subject to certain closing adjustments. The closing of the proposed transaction is subject to financing and customary closing conditions and is expected to occur within the third quarter.
 
Net sales for the Scholastic segment were $120.0 million for the second fiscal quarter of 2015 compared to $127.2 million for the second fiscal quarter of 2014. This decrease was primarily attributable to lower volume in Visant’s professional championship business in addition to lower volume in our graduation products.
 
Net sales for the Memory Book segment were $239.4 million for the second fiscal quarter of 2015 compared to $240.2 million for the second fiscal quarter of 2014. This decrease was primarily due to lower volume.
 
Net sales for the Publishing and Packaging Services segment for the second fiscal quarter of 2015 were $21.0 million, compared to $22.3 million for the second fiscal quarter of 2014. This decrease was primarily due to lower book component volume compared to the second quarter of 2014.
 
Net sales for the Scholastic segment for the six-month period ended July 4, 2015 were $262.4 million compared to $266.3 million for the six-month period ended June 28, 2014. This decrease was primarily attributable to lower volume in professional championship business offset with increased graduation products volume.
 
Net sales for the Memory Book segment for the six-month period ended July 4, 2015 remained flat at $245.6 million compared to the six-month period ended June 28, 2014.
 
Net sales for the Publishing and Packaging Services segment for the six-month period ended July 4, 2015 were $42.1 million compared to $46.6 million for the six-month period ended June 28, 2014. This decrease was primarily due to lower book component volume in 2015 compared to the first six months of 2014.
 
Adjusted EBITDA for the Scholastic segment increased $2.2 million to $62.1 million for the six-month period ended July 4, 2015. This increase was primarily due to favorable graduation product volume along with reduced manufacturing costs and corporate cost savings. Adjusted EBITDA for the Memory Book segment decreased $1.3 million to $120.1 million for the six-month period ended July 4, 2015. This decrease was attributable to lower volume, offset by corporate cost savings.
 
Adjusted EBITDA for the Publishing and Packaging Services segment decreased $1.6 million to $11.2 million for the six-month period ended July 4, 2015, compared to $12.8 million for the six-month period ended June 28, 2014. This decrease was primarily due to the decrease in book component volumes.
 
As of July 4, 2015, Visant’s consolidated debt, comprised of the outstanding indebtedness under its senior secured credit facilities and its 10.00% senior notes due 2017, was $1,509.2 million. Visant’s cash position as of July 4, 2015 totaled $53.5 million.