Exhibit 99.2
FOR IMMEDIATE RELEASE Contact: Jack Larsen
(952) 830-3381
JOSTENS PROVIDES SECOND QUARTER
AND FIRST HALF GUIDANCE
MINNEAPOLIS, July 8, 2003 - Jostens, Inc. (JOSEA) today reported that it
expects net sales for the quarter ended June 28, 2003, to be approximately
$370.0 million, bringing first half 2003 net sales to approximately $491.5
million. For the second quarter and first half of fiscal 2002, the Company
reported net sales of $353.7 million and $475.0 million, respectively.
The Company expects net income for the second quarter of 2003 to be in the
range of $53.0 million to $55.0 million and first half 2003 net income ranging
from $44.4 million to $46.4 million. For the second quarter and first half of
fiscal 2002, the Company reported net income of $50.5 million and $44.0 million,
respectively.
Jostens expects second quarter Adjusted EBITDA, as defined on the
accompanying schedule, to be in the range of $111.2 million to $114.2 million
and first half Adjusted EBITDA ranging from $116.7 million to $119.7 million.
For the second quarter and first half of fiscal 2002, the Company reported
Adjusted EBITDA of $108.1 million and $121.0 million, respectively.
The Company has provided a reconciliation of expected net income to
expected Adjusted EBITDA on the accompanying schedule.
Jostens is a provider of products, programs and services that help people
celebrate important moments, recognize achievements and build affiliation. The
Company's products include yearbooks, class rings, graduation products, school
photography, and awards for athletes and fans.
This release contains forward-looking statements. Such statements are
subject to certain risks and uncertainties that could cause the Company's actual
future results to differ materially from its historical results and those
presently anticipated or projected. You are hereby cautioned that these
statements may be affected by our substantial debt, our inability to achieve our
business strategies, changes in relationships with our employees or our
independent representatives, our dependence on key suppliers, seasonality,
fluctuating raw materials prices as well as other factors set forth in the
Company's filings with the Securities and Exchange Commission, and consequently,
actual operations and results may differ materially from the results discussed
in the forward-looking statements. The Company undertakes no obligation to
update any forward-looking statements, whether as a result of new information,
future events, or otherwise.
JOSTENS, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (UNAUDITED)
Three months ended
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Expected Range
Low High
In millions June 28, 2003 June 29, 2002
- ---------------------------------------------------------------------- ---------------------------- ----------------
Net income $ 53.0 $ 55.0 $ 50.5
Net interest expense, including amortization of debt issuance costs 13.9 13.9 17.0
Provision for income taxes 37.9 38.9 35.2
Depreciation expense 5.5 5.5 5.8
Amortization expense 0.9 0.9 0.5
Gain on discontinued operations - - (0.9)
- ---------------------------------------------------------------------- ---------------------------- ----------------
Adjusted EBITDA $ 111.2 $ 114.2 $ 108.1
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Six months ended
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----------------------------
Expected Range
Low High
In millions June 28, 2003 June 29, 2002
- ---------------------------------------------------------------------- ---------------------------- ----------------
Net income $ 44.4 $ 46.4 $ 44.0
Net interest expense, including amortization of debt issuance costs 27.8 27.8 34.7
Provision for income taxes 31.9 32.9 30.6
Depreciation expense 11.0 11.0 11.5
Amortization expense 1.6 1.6 1.1
Gain on discontinued operations - - (0.9)
- ---------------------------------------------------------------------- ---------------------------- ----------------
Adjusted EBITDA $ 116.7 $ 119.7 $ 121.0
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Adjusted EBITDA represents net income before net interest expense, income taxes,
depreciation, amortization and discontinued operations. We believe Adjusted
EBITDA provides meaningful additional information that helps us monitor and
evaluate our ongoing operating results and trends facilitating an understanding
of our comparative operating performance. Adjusted EBITDA is also one component
of measurement used in our compensation plans. Adjusted EBITDA should not be
considered in isolation nor as a substitute for measures of performance prepared
in accordance with generally accepted accounting principles nor as an
alternative to cash flows as a source of liquidity, and may not be comparable
with Adjusted EBITDA as defined by other companies. We may not be permitted to
present Adjusted EBITDA in our filings with the SEC to the extent our
adjustments to EBITDA eliminate items identified as non-recurring, infrequent or
unusual when the nature of the charge makes it reasonably likely to recur.
Investors should make their own assessment as to the appropriateness of these
adjustments.