<PAGE>
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
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Item 5. Other Events. On July 31, 1996, the Company issued a press release.
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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a. Financial statements of businesses acquired. Not applicable.
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b. Pro forma financial information. Not applicable.
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c. Exhibits.
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28.1 Press Release dated July 31, 1996.
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SIGNATURES
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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
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INDEX TO EXHIBITS
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Exhibit Page
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28.1 Press release dated July 31, 1996.
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Exhibit 28.1
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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-
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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-
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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-
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JOSTENS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
June 30, June 30,
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1996 1995 1996 1995
-------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
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
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OPERATING INCOME 53,730 51,953 94,802 94,618
Net Interest Expense (Income) 2,283 237 7,323 725
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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
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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)
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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)
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Net Income $ .79 $ .64 $ 1.28 $ 1.11
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AVERAGE SHARES OUTSTANDING 38,652 45,489 40,207 45,492
============== ============= =============== =============
</TABLE>
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JOSTENS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
(Unaudited)
June 30,
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1996 1995
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<S> <C> <C>
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
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$ 383,974 $ 547,968
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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
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$ 383,974 $ 547,968
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</TABLE>
