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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 27, 2000
Commission file number 1-5064
Jostens, Inc.
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(Exact name of Registrant as specified in its charter)
Minnesota 41-0343440
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(State or other jurisdiction of I.R.S. Employer Identification number)
incorporation or organization)
5501 Norman Center Drive, Minneapolis, Minnesota 55437
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (952) 830-3300
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Item 5. Other Events
In a press release dated April 20, 2000, we announced earnings for the
three months ended April 1, 2000. The news release is attached as Exhibit
99.1 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Description
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99.1 Press release issued by Jostens on April 20, 2000
announcing earnings for the three months ended
April 1, 2000.
2
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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
Date: April 27, 2000 By /s/ William J. George
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William J. George
Vice President, General Counsel
and Corporate Secretary
3
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EXHIBIT INDEX
Exhibit Description
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99.1 Press release issued by Jostens on April 20, 2000 announcing
earnings for the three months ended April 1, 2000.
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Exhibit 99.1
Contact: Lynda Nordeen (Media) 952-830-3361
Heide Erickson (Investors) 952-830-3332
JOSTENS REPORTS FIRST-QUARTER NET INCOME OF $11.3 MILLION,
OR 34 CENTS PER DILUTED SHARE
MINNEAPOLIS, April 20, 2000 - Jostens, Inc. (NYSE: JOS) today reported
first-quarter net income of $11.3 million, or 34 cents per diluted share,
compared with net income of $8.0 million, or 23 cents per diluted share, in the
year-earlier period. Sales in the quarter were $174.6 million, compared with
$166.4 million in the same period last year. Gross profit margin improved to
61.9 percent in the quarter, compared with 58.8 percent last year.
School Products Segment
The School Products segment - composed of Printing & Publishing, Jewelry,
Graduation Products and North American Photography - had first-quarter sales of
$151.4 million, compared to $142.8 million last year. Operating income in the
quarter was $28.4 million, versus $24.5 million last year. First quarter 1999
included a $1.5 million charge to close a facility in Mexico and realign all
Jewelry operations in the United States.
Sales improvements during the quarter were primarily related to earlier
delivery of graduation products.
Recognition Segment
Sales in the quarter were $21.1 million, compared to $21.6 million last
year. Operating loss was $300,000, versus an operating income of $100,000 in the
year-earlier period. The company is continuing its efforts to restore the
Recognition business to its historical performance levels.
Other Segment
The Other segment - which includes primarily corporate expenses - reported
first-quarter sales of $2.1 million, up from $2.0 million last year, and an
operating loss of $7.4 million, compared to $10.0 million last year.
-more-
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JOSTENS REPORTS FIRST QUARTER RESULTS/page 2
Pending Transaction
During the fourth quarter of last year, Jostens announced that it had
entered into a definitive agreement providing for the acquisition of Jostens by
a company controlled by Investcorp, a global investment group, and its
co-investors. The transaction is subject to approval by Jostens' shareholders at
a meeting scheduled to be held May 9, 2000, and is expected to close shortly
thereafter.
Jostens is a provider of products, programs and services that help people
celebrate important moments, recognize achievements and build affiliations.
Jostens' products include yearbooks, class rings, graduation products and school
photographs, as well as sports and employee achievement awards.
Certain information in this news release does not relate to historical
financial information and may be deemed to constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. 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. The factors that could cause the
company's results to differ materially from those contained in its
forward-looking statements are included in the Jostens Annual Report on Form
10-K for 1999 and other documents recently filed by the company with the
Securities and Exchange Commission.
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JOSTENS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended
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April 1 April 3
In thousands, except per-share data 2000 1999
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Net sales 174,589 $166,358
Cost of products sold 66,586 68,499
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Gross profit 108,003 97,859
Selling and administrative expenses 87,253 83,302
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Operating income 20,750 14,557
Net interest expense 1,727 1,039
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Income before income taxes 19,023 13,518
Income taxes 7,704 5,475
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Net income $11,319 $8,043
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Earnings per common share
Basic $0.34 $0.23
Diluted $0.34 $0.23
Weighted average common shares outstanding
Basic 33,263 34,816
Diluted 33,451 34,950
Cash dividends declared per common share $0.22 $0.22
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JOSTENS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited)
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April 1 April 3 January 1
In thousands 2000 1999 2000
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<S> <C> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 14,278 $ 5,206 $ 38,517
Accounts receivable, net 132,253 128,852 107,638
Inventories 109,619 122,962 87,839
Other current assets 51,468 41,963 52,315
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Total current assets 307,618 298,983 286,309
Other Assets 37,547 37,076 36,767
Property and equipment, net 80,750 90,091 84,640
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$425,915 $426,150 $407,716
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LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current liabilities
Short-term borrowings $ 74,960 $ 96,910 $117,608
Accounts payable and accrued expenses 297,516 263,728 239,534
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Total current liabilities 372,476 360,638 357,142
Other noncurrent liabilities 12,578 19,871 14,064
Shareholders' investment 40,861 45,641 36,510
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$425,915 $426,150 $407,716
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</TABLE>
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JOSTENS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three months ended
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April 1 April 3
In thousands 2000 1999
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Operating activities
Net income $11,319 $ 8,043
Depreciation and amortization 6,581 6,372
Changes in assets and liabilities 6,382 14,205
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Net cash provided by operating activities 24,282 28,620
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Investing activities
Purchases of property and equipment (2,711) (7,267)
Equity investments (1,103) --
Other 395 13
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Net cash used for investing activities (3,419) (7,254)
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Financing activities
Net short-term borrowings (repayments) (38,134) 2,450
Dividends paid (7,331) (7,716)
Proceeds from exercise of stock options 363 1,527
Repurchases of common stock -- (15,016)
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Net cash used for financing activities (45,102) (18,755)
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Change in cash and cash equivalents (24,239) 2,611
Cash and cash equivalents, beginning of period 38,517 2,595
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Cash and cash equivalents, end of period $14,278 $ 5,206
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JOSTENS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION BY REPORTABLE BUSINESS SEGMENT (UNAUDITED)
Three months ended
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April 1 April 3
In thousands 2000 1999
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Net Sales From External Customers
School Products $151,442 $142,788
Recognition 21,071 21,598
Other 2,076 1,972
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Consolidated $174,589 $166,358
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Operating Income
School Products $ 28,411 $ 24,458
Recognition (308) 129
Other (7,353) (10,030)
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Consolidated 20,750 14,557
Net interest expense 1,727 1,039
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Income before income taxes $ 19,023 $ 13,518
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