-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UWt9x9WeL3qqbwK80ZfGSCgyRgyZZFpNtYi9G36O9crqzyHcDGmWKC4mKoXDuHKv ymmUPi8UsK3z/RZ1qDhWjw== 0000950131-96-003725.txt : 19960812 0000950131-96-003725.hdr.sgml : 19960812 ACCESSION NUMBER: 0000950131-96-003725 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960731 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960809 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOSTENS INC CENTRAL INDEX KEY: 0000054050 STANDARD INDUSTRIAL CLASSIFICATION: JEWELRY, PRECIOUS METAL [3911] IRS NUMBER: 410343440 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05064 FILM NUMBER: 96606488 BUSINESS ADDRESS: STREET 1: 5501 NORMAN CTR DR CITY: MINNEAPOLIS STATE: MN ZIP: 55437 BUSINESS PHONE: 6128303300 MAIL ADDRESS: STREET 1: 5501 NORMAN CENTER DRIVE CITY: MINNEAPOLIS STATE: MN ZIP: 55437 8-K 1 FORM 8-K FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 31, 1996 JOSTENS, INC. (Exact name of registrant as specified in its charter) MINNESOTA 1-5064 41-0343440 (State of Incorporation) (Commission File (I.R.S. Employer File Number) Identification No.) 5501 NORMAN CENTER DRIVE, MINNEAPOLIS, MINNESOTA 55437 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code:(612) 830-3300 Item 5. Other Events. On July 31, 1996, the Company issued a press release. ------------ Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. ------------------------------------------------------------------ a. Financial statements of businesses acquired. Not applicable. ------------------------------------------- b. Pro forma financial information. Not applicable. ------------------------------- c. Exhibits. -------- 28.1 Press Release dated July 31, 1996. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. JOSTENS, INC. (Registrant) By: /s/ Robert C. Buhrmaster Robert C. Buhrmaster President and Chief Executive Officer Dated: August 6, 1996 INDEX TO EXHIBITS ----------------- Exhibit Page - -------------- 28.1 Press release dated July 31, 1996. EX-28.1 2 PRESS RELEASE Exhibit 28.1 - ------------ Kevin Whalen (612) 830-3251 Release #5571-796 [LOGO OF JOSTENS APPEARS HERE] ______________________________________________________________________________ FOR IMMEDIATE RELEASE JOSTENS REPORTS NET INCOME OF $30.4 MILLION, EPS OF 79 CENTS IN FISCAL FOURTH QUARTER FISCAL 1996 NET INCOME IS $51.6 MILLION, $1.28 EPS RESULTS ARE WITHIN RANGE ANNOUNCED BY COMPANY IN JUNE MINNEAPOLIS (July 31, 1996) -- Jostens Inc. (NYSE: JOS) today reported net income of $30.4 million, or 79 cents per share, in the fourth quarter of fiscal 1996. Those results compare with net income of $28.8 million, or 64 cents per share, in the year-earlier quarter. In June, the company publicly estimated that fourth-quarter EPS would be in a range from 74 cents to 79 cents. Sales in the quarter ended June 30 were $289.8 million, compared with $270.4 million a year earlier. For the full year, Jostens reported net income of $51.6 million, or $1.28 per share, compared with $50.4 million, or $1.11 per share, in fiscal 1995. Sales in 1996 were $695.1 million, up from $665.1 million in 1995. "We had a very strong finish, with record sales and earnings per share from our continuing businesses in the fourth quarter, our most critical time of the year," said Robert C. Buhrmaster, president and chief executive officer. "We were able to handle the high volume of business and bring it to the bottom line. "For the full year, our results were very good from a strategic standpoint," he said. "We stepped up the level of investment in our businesses in fiscal 1996, and gained share in our core markets. We sold nearly 10 percent more class rings -- the second straight year of improvement after a 12-year decline. We produced a record number of yearbook pages, and the profitability of the Recognition business improved dramatically." Buhrmaster said that the company performed as anticipated during the year, with two exceptions: higher than expected commission rates associated with the company's new class ring program, which resulted in higher unit volume; and additional fourth-quarter costs to produce yearbooks on time for consumers. -more- JOSTENS EARNS $30.4 MILLION IN FOURTH QUARTER/2 "Our strong fourth-quarter performance helped us recover from those one- time factors, but not quite to the degree we would have liked," Buhrmaster said. FISCAL 1996 SEGMENT SUMMARY SCHOOL PRODUCTS. Sales in the company's School Products segment increased 5.3 percent to $594.9 million, compared with $565 million in fiscal 1995. Operating profit was about flat with 1995. School Products includes Printing & Publishing, Jewelry, Graduation Products, Photography and Jostens Canada. "We continued to see volume improvements as a result of research-based marketing programs," Buhrmaster said. "The programs we've developed are generating additional sales; we are adjusting them to deliver appropriate profits, as well." RECOGNITION. Sales in the Recognition segment were $100.2 million, up slightly from $100.1 million in 1995. Operating profit, however, was up dramatically from fiscal 1995. During the year, Recognition focused on process improvements, cost reduction and market analysis. "This business did a terrific job through the year simplifying work processes and eliminating slow-moving products from our offering," Buhrmaster said. "We have a better understanding of the opportunities for this business, and we are encouraged by Recognition's prospects." OTHER Fiscal 1996 earnings per share reflect the company's repurchase of 7 million shares, or 15 percent of shares outstanding, last September in a Modified Dutch Auction tender offer. Fiscal 1995 results included a loss of $4.9 million, or 11 cents per share, from discontinued operations and a charge of $634,000, or 1 cent per share, from adopting an accounting standard (SFAS 112) having to do with accounting for post-employment benefits. SALES FORCE UPDATE In its press release of June 14, the company reported that it was approached by a group of its independent sales representatives seeking changes in their agreements and arrangements with Jostens. Since that time, company management has met with its representatives at annual sales meetings. "We do not anticipate changing our contractual relationships with the majority of our representatives," Buhrmaster said. "However, as we evolve from entrepreneurial territory selling to more organized consumer marketing programs in our Jewelry and Graduation Products businesses, we do expect some territory transitions to result. -more- JOSTENS EARNS $30.4 MILLION IN FOURTH QUARTER/3 "For about 50 representatives who serve the college market, the company anticipates a major change in the contract status. This arrangement will be worked out in time for implementation with the new contract period starting July 1, 1997," Buhrmaster said. 1997 OUTLOOK The company said it will continue to work on new programs and initiatives to drive volume increases during 1997, but that the level of investment will be more controlled and will be accompanied by additional emphasis on cost reduction. "We will continue with programs to upgrade systems, streamline processes and review manufacturing facilities," Buhrmaster said. Earlier this month, Jostens said it would close its class ring plant in Winnipeg, Manitoba, and shift its production to facilities in Denton, Texas, and Attleboro, Mass. The consolidation was completed this month. In addition, the company expects to expand its use of outside sources in the cap-and-gown business. The company also intends to introduce a new inventory cost accounting system in fiscal 1997 as part of the companywide systems upgrade program. This system results in a more accurate valuation of inventories and the recording of gross profit margins during interim periods in a manner consistent with that used to value inventory at year-end. "This system is an important step in providing a greater level of information about the costing and profitability of our various products to enable us to better manage our businesses," Buhrmaster said. "While the impact of the new system should have no effect on annual results, we expect gross profits in the first quarter to be lower and gross profits in the fourth quarter to be correspondingly higher than what would have been reported using the prior method." Jostens is a leading provider of products and services that help people recognize achievement and affiliation throughout their lives. The company's products include yearbooks, class rings, graduation products, school photography, and service and achievement awards for businesses. -end- JOSTENS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Twelve Months Ended June 30, June 30, ----------------------------- ------------------------------- 1996 1995 1996 1995 -------------- ------------- --------------- ------------- NET SALES $ 289,753 $ 270,415 $ 695,149 $ 665,099 Cost of Products Sold 151,929 134,710 332,212 313,659 -------------- ------------- --------------- ------------- 137,824 135,705 362,937 351,440 Selling and Administrative Expenses 84,094 83,752 268,135 256,822 -------------- ------------- --------------- ------------- OPERATING INCOME 53,730 51,953 94,802 94,618 Net Interest Expense (Income) 2,283 237 7,323 725 -------------- ------------- --------------- ------------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 51,447 51,716 87,479 93,893 Income Taxes 21,081 21,243 35,854 38,027 -------------- ------------- --------------- ------------- INCOME FROM CONTINUING OPERATIONS 30,366 30,473 51,625 55,866 DISCONTINUED OPERATIONS: Loss from Operations, Net of Tax - (1,639) - (4,864) CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLE, NET OF TAX - - - (634) -------------- ------------- --------------- ------------- NET INCOME $ 30,366 $ 28,834 $ 51,625 $ 50,368 ============== ============= =============== ============= EARNINGS (LOSS) PER COMMON SHARE: Continuing Operations $ .79 $ .67 $ 1.28 $ 1.23 Loss from Discontinued Operations - (0.03) - (0.11) Cumulative Effect of Changes in Accounting Principle - - - (0.01) -------------- ------------- --------------- ------------- Net Income $ .79 $ .64 $ 1.28 $ 1.11 ============== ============= =============== ============= AVERAGE SHARES OUTSTANDING 38,652 45,489 40,207 45,492 ============== ============= =============== =============
JOSTENS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
(Unaudited) June 30, ---------------------------- 1996 1995 ----------- ------------ Assets Cash $ 11,079 $ 12,373 Short-term investments 2,228 161,096 Accounts receivable 130,159 124,392 Inventory 78,968 71,394 Other assets 94,503 110,888 Property and Equipment 67,037 67,825 ----------- ------------ $ 383,974 $ 547,968 =========== ============ Liabilities and Shareholders' Investment Current Liabilities 214,876 196,087 Short-term borrowings 27,587 - Long-term debt 3,874 53,899 Other Non-Current Liabilities 15,836 27,369 Shareholders' Investment 121,801 270,613 ----------- ------------ $ 383,974 $ 547,968 =========== ============
-----END PRIVACY-ENHANCED MESSAGE-----