Party City Reports Second Quarter 2021 Results and Provides Third Quarter 2021 Business Outlook
Party City Holdco Inc. (PRTY) reported a significant financial turnaround for Q2 2021, with total sales reaching $535.7 million, up 110.4% year-over-year. Comparable sales increased 118.3% compared to Q2 2020 and up 19.1% versus Q2 2019. The company achieved a GAAP net income of $29.8 million, compared to a net loss of $130 million in the same quarter last year. Adjusted EBITDA also saw a substantial rebound to $85.8 million. Despite ongoing market volatility due to COVID-19, the outlook remains positive with projected revenues of $490 to $515 million for Q3 2021.
- Total revenue increased 110.4% to $535.7 million.
- GAAP net income of $29.8 million compared to a net loss of $130 million in Q2 2020.
- Adjusted EBITDA rebounded to $85.8 million, improving from a loss of $42.8 million in Q2 2020.
- Brand comparable sales increased 118.3% year-over-year.
- Retail operations affected by the divestiture of international operations.
Total Sales increased
GAAP Net Income of
Adjusted EBITDA of
ELMSFORD, N.Y., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (the “Company” or “PRTY”; NYSE:PRTY) today announced financial results for the quarter ended June 30, 2021.
Brad Weston, Chief Executive Officer of Party City, stated, “We are very pleased with our strong second quarter results that exceeded our expectations. We saw sequential acceleration of the business as the economy opened up and restrictions subsided, driving increased consumer ability to celebrate. The quarter was highlighted by robust trends at Retail with the recovery at Wholesale underway, as expected. The strength in performance was broad based, particularly across our core everyday business, along with improved results in our seasonal categories. The consistent strength that we have demonstrated in our core everyday performance is a testament to the disciplined execution of our strategic initiatives and meaningful progress against our transformation strategy, with the resulting relevancy strides positioning us to capitalize on the near and long-term growth opportunities.”
Mr. Weston added, “As we look to the back half of the year, the environment remains dynamic but we are well positioned for continued growth. We are excited about our refined marketing, improved store experience and elevated omni channel capabilities, as we continue to deliver on our mission of inspiring joy and making it easy to create unforgettable memories.”
Second Quarter Summary*:
- Total revenues were
$535.7 million , an increase of110.4% compared to the second quarter 2020 driven by a strong rebound of retail sales, partially offset by the divestiture of a significant portion of our international operations in the first quarter of 2021. - Total retail sales increased
138.9% on a reported and constant currency basis versus second quarter 2020 driven by a strong comparable sales increase in core categories versus prior year. - The total number of corporate Party City stores was 749 as of June 30, 2021 compared to 757 in the prior year period.
- Brand comparable sales increased
118.3% in the second quarter versus the 13 weeks ended June 27, 2020 and increased19.1% compared to the 13 weeks ended June 29, 2019. - Net third-party wholesale revenues increased
33.4% compared to the second quarter of 2020 principally due to the COVID-19 impact in the prior year period, partially offset by the divestiture of a significant portion of our international operations in the first quarter of 2021. - Total gross profit margin increased 3,390 basis points to
40.5% of net sales. Excluding certain items not indicative of core operating performance, gross profit margin improved 2,120 basis points to41.0% of net sales, primarily due to fixed cost deleverage in 2020 caused by COVID-19 shutdowns. Gross profit margin improvement was also driven by fewer promotions and favorable product mix. - Operating expenses totaled
$155.3 million or$11.7 million higher than the second quarter of 2020 primarily due to higher retail operating expenses offset by decreased general and administrative expenses. Excluding certain items not indicative of core operating performance, operating expenses totaled$150.6 million , or28.1% of net sales, a 1,730-basis point improvement versus prior-year period primarily driven by leverage on higher sales. - Interest expense was
$23.1 million during the second quarter of 2021, compared to$25.4 million during the second quarter of 2020 mainly due to lower amounts of debt outstanding. - Reported GAAP net income was
$29.8 million , or earnings of$0.26 per diluted share. - Adjusted net income was
$34.1 million , or earnings of$0.29 per diluted share, compared to adjusted net loss of$61.3 million , or a loss of$0.66 per share, in the second quarter of 2020. (See “Non-GAAP Information”) - Adjusted EBITDA was
$85.8 million , versus a loss of$42.8 million during the second quarter of 2020. (See “Non-GAAP Information”). - The effective tax rate for the second quarter of 2021 was
25.5% .
* Second quarter results in fiscal year 2020 were negatively impacted by extended store closures and other related impacts due to COVID-19.
Balance Sheet and Cash Flow Highlights:
As of the end of the second quarter 2021, the Company had
The carrying value of the Company's debt as of June 30, 2021 was
| Party City Credit Group | Anagram Holdings, LLC | PCHI Consolidated | ||||||||||||||
| June 30, 2021 | June 30, 2021 | |||||||||||||||
| (in Thousands) | Principal Amount | Net Carrying Amount | Net Carrying Amount | Net Carrying Amount | ||||||||||||
| $ | 750,000 | 731,305 | - | $ | 731,305 | |||||||||||
| 22,924 | 22,806 | - | 22,806 | |||||||||||||
| 92,254 | 91,519 | - | 91,519 | |||||||||||||
| First Lien Party City Notes – due 2025 | 161,669 | 202,588 | - | 202,588 | ||||||||||||
| First Lien Anagram Notes – due 2025 | 112,979 | - | 150,451 | 150,451 | ||||||||||||
| Second Lien Anagram Notes – due 2026 | 86,981 | - | 148,114 | 148,114 | ||||||||||||
| Finance lease obligations | 13,398 | 13,398 | - | 13,398 | ||||||||||||
| Total long-term obligations | 1,240,205 | 1,061,616 | 298,565 | 1,360,181 | ||||||||||||
| Less: current portion | N/A | (1,265 | ) | - | (1,265 | ) | ||||||||||
| Long-term obligations, excluding current portion | 1,240,205 | 1,060,351 | 298,565 | 1,358,916 | ||||||||||||
| Loans and notes payable* | 103,175 | 99,933 | - | 99,933 | ||||||||||||
| Less: Cash | (84,452 | ) | (56,130 | ) | (28,322 | ) | (84,452 | ) | ||||||||
| Principal balance net of cash | $ | 1,258,928 | $ | 1,104,154 | $ | 270,243 | $ | 1,374,397 | ||||||||
*Balance consists of ABL Facility.
Net cash provided by operating activities in the first six months of 2021 was
aFree cash flow defined as Adjusted EBITDA less capital expenditures (See “Non-GAAP Financial Information”).
Outlook:
The Company is providing the following fiscal third quarter 2021 outlook. This outlook is subject to potential consumer and marketplace volatility due to the COVID-19 pandemic:
- Total revenue of
$490 t o$515 million - Brand comparable sales percentage increase of high single digits compared to third quarter 2020, or mid-teens compared to third quarter 2019
- GAAP net loss of
$5 million to net income of$4 million with an assumed Q3 tax rate of27% - Adjusted EBITDA of
$35 t o$45 million
The Company is providing the following updated annual 2021 outlook:
- FY 2021 Interest expense of approximately
$86 t o$91 million - FY 2021 Capital expenditures of approximately
$80 t o$90 million
The table below sets forth a reconciliation from our third quarter 2021 forecasted GAAP Net Income to our Adjusted EBITDA.
| Q3 2021 | Q3 2021 | ||||||
| (in thousands) | High | Low | |||||
| Net Income | $ | 3,500 | $ | (5,300 | ) | ||
| Provision for Income Taxes | 1,300 | (1,900 | ) | ||||
| Interest Expense | 22,000 | 23,000 | |||||
| Depreciation and Amortization Expense | 16,200 | 17,200 | |||||
| EBITDA | $ | 43,000 | $ | 33,000 | |||
| EBITDA Add-Backs | 2,000 | 2,000 | |||||
| Adjusted EBITDA | $ | 45,000 | $ | 35,000 | |||
Conference Call Information
A conference call to discuss the second quarter 2021 financial results is scheduled for today, August 5, 2021, at 8:00 a.m. Eastern Time, and the Company has posted certain supplemental presentation materials to its investor relations website. Investors and analysts interested in participating in the call are invited to dial 844-757-5731 (U.S. domestic) or 412-542-4126 (international) approximately 10 minutes prior to the start of the call. The conference call will also be webcast at http://investor.partycity.com/. To listen to the live call, please go to the website at least 15 minutes early to register and download any necessary audio software. The webcast will be accessible for one year after the call.
Website Information
We routinely post important information for investors on the Investor Relations section of our website, http://investor.partycity.com/. We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Information
This press release includes non-GAAP measures including Adjusted EBITDA and Adjusted Net Income/Loss. We present these non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by eliminating items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA: (i) as a factor in determining incentive compensation, (ii) to evaluate the effectiveness of our business strategies and (iii) because our credit facilities use Adjusted EBITDA to measure compliance with certain covenants. We also utilized operating expense excluding certain items not indicative of core operating performance. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in tables accompanying this release. We also evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period exchange rates and comparing these adjusted amounts to our current period reported results. We also provide debt principal net of cash, which is calculated by adding Loans and Notes Payable, Current Portion of Long Term Obligations and Long Term Obligations, Excluding Current Portion, subtracting Cash and Cash Equivalents and dividing by Adjusted EBITDA for the trailing twelve month period. We also define free cash flow as Adjusted EBITDA less capital expenditures. We believe providing these non-GAAP measures provides valuable supplemental information regarding our results of operations and leverage, consistent with how we evaluate our performance. In evaluating these non-GAAP financial measures, investors should be aware that in the future the Company may incur expenses or be involved in transactions that are the same as or similar to some of the adjustments in this presentation. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided this information as means to evaluate the results of its core operations. Other companies in the Company's industry may calculate these items differently than it does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
Forward-Looking Statements
This press release and the commentary in the conference call to be held today each contains forward-looking statements. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance and include Party City’s expectations regarding its ability to maximize the potential of its vertical model, the ability to drive long-term growth, revenues, brand comparable sales, net income, Adjusted EBITDA, and Adjusted Net Income. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information, and these statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. These risks and uncertainties include: our ability to compete effectively in a competitive industry; fluctuations in commodity prices; our ability to appropriately respond to changing merchandise trends and consumer preferences; successful implementation of our store growth strategy; decreases in our Halloween sales; the impact of COVID-19 on our financial performance; disruption to the transportation system or increases in transportation costs; product recalls or product liability; economic slowdown affecting consumer spending and general economic conditions; loss or actions of third party vendors and loss of the right to use licensed material; disruptions at our manufacturing facilities; and the additional risks and uncertainties set forth in “Risk Factors” in Party City’s Annual Report on Form 10-K for the year ended December 31, 2020 and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Except as may be required by any applicable laws, Party City assumes no obligation to publicly update or revise such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.
About Party City
Party City Holdco Inc. is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is the leading player in its category, vertically integrated and unique in its breadth and depth. The Company designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Company’s retail operations include 831 specialty retail party supply stores (including franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.
Contact:
ICR
Farah Soi and Rachel Schacter
203-682-8200
InvestorRelations@partycity.com
Source: Party City Holdco Inc.
PARTY CITY HOLDCO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data, unaudited)
| June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 84,452 | $ | 119,532 | $ | 154,133 | ||||||
| Accounts receivable, net | 86,745 | 90,879 | 85,081 | |||||||||
| Inventories, net | 426,128 | 412,285 | 635,014 | |||||||||
| Prepaid expenses and other current assets | 68,363 | 45,905 | 94,710 | |||||||||
| Income tax receivable | 55,421 | 57,549 | — | |||||||||
| Assets held for sale, net | — | 83,110 | — | |||||||||
| Total current assets | 721,109 | 809,260 | 968,938 | |||||||||
| Property, plant and equipment, net | 218,532 | 209,412 | 223,433 | |||||||||
| Operating lease asset | 684,802 | 700,087 | 755,288 | |||||||||
| Goodwill | 660,597 | 661,251 | 666,084 | |||||||||
| Trade names | 383,761 | 384,428 | 394,203 | |||||||||
| Other intangible assets, net | 27,825 | 32,134 | 39,402 | |||||||||
| Other assets, net | 26,193 | 9,883 | 9,435 | |||||||||
| Total assets | $ | 2,722,819 | $ | 2,806,455 | $ | 3,056,783 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Loans and notes payable | $ | 99,933 | $ | 175,707 | $ | 325,754 | ||||||
| Accounts payable | 129,802 | 118,928 | 144,849 | |||||||||
| Accrued expenses | 190,347 | 160,605 | 179,159 | |||||||||
| Liabilities held for sale | — | 68,492 | — | |||||||||
| Current portion of operating lease liability | 136,749 | 176,045 | 202,971 | |||||||||
| Income taxes payable | 2,537 | 524 | — | |||||||||
| Current portion of long-term obligations | 1,265 | 13,576 | 13,810 | |||||||||
| Total current liabilities | 560,633 | 713,877 | 866,543 | |||||||||
| Long-term obligations, excluding current portion | 1,358,916 | 1,329,808 | 1,557,576 | |||||||||
| Long-term portion of operating lease liability | 625,157 | 654,729 | 685,290 | |||||||||
| Deferred income tax liabilities, net | 37,052 | 34,705 | 67,458 | |||||||||
| Other long-term liabilities | 33,288 | 22,815 | 16,932 | |||||||||
| Total liabilities | 2,615,046 | 2,755,934 | 3,193,799 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders’ equity: | ||||||||||||
| Common stock (111,476,496, 110,781,613 and 94,602,386 shares outstanding and 122,790,983, 122,061,711 and 121,819,456 shares issued at June 30, 2021, December 31, 2020, and June 30, 2020 respectively) | 1,383 | 1,373 | 1,211 | |||||||||
| Additional paid-in capital | 978,167 | 971,972 | 941,745 | |||||||||
| Accumulated deficit | (549,693 | ) | (565,457 | ) | (708,747 | ) | ||||||
| Accumulated other comprehensive income (loss) | 6,096 | (29,916 | ) | (43,849 | ) | |||||||
| Total Party City Holdco Inc. stockholders’ equity before common stock held in treasury | 435,953 | 377,972 | 190,360 | |||||||||
| Less: Common stock held in treasury, at cost (11,314,487, 11,280,098 and 27,217,070 shares at June 30, 2021, December 31, 2020, and June 30, 2020, respectively) | (327,394 | ) | (327,182 | ) | (327,170 | ) | ||||||
| Total Party City Holdco Inc. stockholders’ equity | 108,559 | 50,790 | (136,810 | ) | ||||||||
| Noncontrolling interests | (786 | ) | (269 | ) | (206 | ) | ||||||
| Total stockholders’ equity | 107,773 | 50,521 | (137,016 | ) | ||||||||
| Total liabilities and stockholders’ equity | $ | 2,722,819 | $ | 2,806,455 | $ | 3,056,783 | ||||||
PARTY CITY HOLDCO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data, unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net sales* | $ | 535,746 | $ | 254,691 | $ | 962,553 | $ | 668,734 | ||||||||
| Cost of sales | 318,574 | 237,907 | 593,095 | 534,664 | ||||||||||||
| Gross Profit | 217,172 | 16,784 | 369,458 | 134,070 | ||||||||||||
| Wholesale selling expenses | 7,358 | 9,707 | 16,474 | 25,165 | ||||||||||||
| Retail operating expenses | 97,179 | 65,236 | 186,075 | 153,402 | ||||||||||||
| General and administrative expenses | 45,795 | 63,955 | 91,833 | 129,289 | ||||||||||||
| Art and development costs | 5,004 | 3,516 | 9,975 | 8,838 | ||||||||||||
| Store impairment and restructuring charges | — | 1,164 | — | 18,892 | ||||||||||||
| Loss on disposal of assets in international operations | — | — | 3,211 | — | ||||||||||||
| Goodwill, intangibles and long-lived assets impairment | — | — | — | 536,648 | ||||||||||||
| Income (loss) from operations | 61,836 | (126,794 | ) | 61,890 | (738,164 | ) | ||||||||||
| Interest expense, net | 23,116 | 25,412 | 40,330 | 50,532 | ||||||||||||
| Other (income) expense, net | (1,300 | ) | 1,484 | (873 | ) | 7,160 | ||||||||||
| Income (loss) before income taxes | 40,020 | (153,690 | ) | 22,433 | (795,856 | ) | ||||||||||
| Income tax expense (benefit) | 10,209 | (23,631 | ) | 6,740 | (124,129 | ) | ||||||||||
| Net income (loss) | 29,811 | (130,059 | ) | 15,693 | (671,727 | ) | ||||||||||
| Less: Net (loss) attributable to noncontrolling interests | — | (44 | ) | (54 | ) | (199 | ) | |||||||||
| Net income (loss) attributable to common shareholders of Party City Holdco Inc. | $ | 29,811 | $ | (130,015 | ) | $ | 15,747 | $ | (671,528 | ) | ||||||
| Net income (loss) per share attributable to common shareholders of Party City Holdco Inc.–Basic | $ | 0.27 | $ | (1.39 | ) | $ | 0.14 | $ | (7.19 | ) | ||||||
| Net income (loss) per share attributable to common shareholders of Party City Holdco Inc.–Diluted | $ | 0.26 | $ | (1.39 | ) | $ | 0.14 | $ | (7.19 | ) | ||||||
| Weighted-average number of common shares-Basic | 111,340,295 | 93,419,078 | 111,128,822 | 93,407,344 | ||||||||||||
| Weighted-average number of common shares-Diluted | 116,251,151 | 93,419,078 | 115,499,304 | 93,407,344 | ||||||||||||
| Dividends declared per share | $ | — | $ | — | $ | — | $ | — | ||||||||
| Comprehensive income (loss) | $ | 30,761 | $ | (125,961 | ) | $ | 51,742 | $ | (679,842 | ) | ||||||
| Less: Comprehensive (loss) attributable to noncontrolling interests | — | (44 | ) | (30 | ) | (199 | ) | |||||||||
| Comprehensive income (loss) attributable to common shareholders of Party City Holdco Inc. | $ | 30,761 | $ | (125,917 | ) | $ | 51,772 | $ | (679,643 | ) | ||||||
*Includes royalties and franchise fees. Prior year amounts conformed to current year presentation
PARTY CITY HOLDCO INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Six Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows provided by (used in) operating activities: | ||||||||
| Net income (loss) | $ | 15,693 | $ | (671,727 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization expense | 34,860 | 40,518 | ||||||
| Amortization of deferred financing costs and original issuance discounts | 1,937 | 2,401 | ||||||
| Provision for doubtful accounts | 1,171 | 4,443 | ||||||
| Deferred income tax expense (benefit) | 2,622 | (58,440 | ) | |||||
| Change in operating lease liability/asset | (52,315 | ) | 44,803 | |||||
| Undistributed (income) loss in equity method investments | (211 | ) | 415 | |||||
| Loss on disposal of assets | 109 | 93 | ||||||
| Loss on disposal of assets in international operations | 3,211 | — | ||||||
| Non-cash adjustment for store impairment and restructuring charges | — | 16,458 | ||||||
| Goodwill, intangibles and long-lived assets impairment | — | 536,648 | ||||||
| Non-employee equity-based compensation** | — | 1,033 | ||||||
| Stock option expense – time – based | 217 | 560 | ||||||
| Stock option expense – performance – based | — | 7,847 | ||||||
| Restricted stock unit expense – time-based | 767 | 1,139 | ||||||
| Restricted stock unit – performance-based | 1,789 | — | ||||||
| Directors – non-cash compensation | 114 | 75 | ||||||
| Net loss on debt repayment | 226 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) decrease in accounts receivable | (2,395 | ) | 56,315 | |||||
| (Increase) decrease in inventories | (15,191 | ) | 20,055 | |||||
| (Increase) in prepaid expenses and other current assets | (31,055 | ) | (47,700 | ) | ||||
| Increase (decrease) in accounts payable, accrued expenses and income taxes payable | 52,228 | (3,717 | ) | |||||
| Net cash provided by (used in) operating activities | 13,777 | (48,781 | ) | |||||
| Cash flows (used in) investing activities: | ||||||||
| Capital expenditures | (40,452 | ) | (18,332 | ) | ||||
| Proceeds from disposal of property and equipment | — | 7 | ||||||
| Proceeds from sale of international operations, net of cash disposed | 20,556 | — | ||||||
| Net cash (used in) investing activities | (19,896 | ) | (18,325 | ) | ||||
| Cash flows (used in) provided by financing activities: | ||||||||
| Repayment of loans, notes payable and long-term obligations | (836,435 | ) | (79,763 | ) | ||||
| Proceeds from loans, notes payable and long-term obligations | 794,750 | 269,874 | ||||||
| Treasury stock purchases | (212 | ) | (85 | ) | ||||
| Exercise of stock options | 3,322 | — | ||||||
| Debt issuance costs | (21,437 | ) | — | |||||
| Net cash (used in) provided by financing activities | (60,012 | ) | 190,026 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 274 | (3,945 | ) | |||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (65,857 | ) | 118,975 | |||||
| Change in cash classified within current assets held for sale | 31,628 | — | ||||||
| Cash and cash equivalents and restricted cash at beginning of period | 119,681 | 35,176 | ||||||
| Cash and cash equivalents and restricted cash at end of period* | $ | 85,452 | $ | 154,151 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for interest expense | $ | 16,594 | $ | 43,402 | ||||
| Cash paid during the period for income taxes, net of refunds | $ | 3,411 | $ | 11,854 | ||||
*Includes
** See Note 17 – Kazzam, LLC of Item 1, “Condensed Consolidated Financial Statements (Unaudited)” in the June 30, 2021 Quarterly Report on Form 10-Q 2021.
PARTY CITY HOLDCO INC.
RECONCILIATION OF ADJUSTED EBITDA
(Unaudited)
| Three Months Ended June 30, | Six months ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Net income (loss) | $ | 29,811 | $ | (130,059 | ) | $ | 15,693 | $ | (671,727 | ) | ||||||
| Interest expense, net | 23,116 | 25,412 | 40,330 | 50,532 | ||||||||||||
| Income tax expense (benefit) | 10,209 | (23,631 | ) | 6,740 | (124,129 | ) | ||||||||||
| Depreciation and amortization | 16,916 | 22,766 | 34,860 | 40,518 | ||||||||||||
| EBITDA | 80,052 | (105,512 | ) | 97,623 | (704,806 | ) | ||||||||||
| Store impairment and restructuring charges (a) | — | 1,761 | — | 29,522 | ||||||||||||
| Inventory restructuring and early lease terminations (j) | 3,499 | — | 6,637 | — | ||||||||||||
| Other restructuring, retention and severance (b) | 31 | 5,697 | 2,082 | 8,744 | ||||||||||||
| Goodwill, intangibles and long-lived assets impairment (c) | — | — | — | 536,648 | ||||||||||||
| Deferred rent (d) | (398 | ) | (1,488 | ) | 1,128 | (2,872 | ) | |||||||||
| Closed store expense (e) | 1,543 | 400 | 3,136 | 1,635 | ||||||||||||
| Foreign currency losses/(gains), net | (772 | ) | 12 | (1,311 | ) | 4,267 | ||||||||||
| Stock option expense – time-based | 104 | 206 | 217 | 560 | ||||||||||||
| Stock option expense – performance – based | — | 7,847 | — | 7,847 | ||||||||||||
| Restricted stock unit and restricted cash awards expense – performance-based | 1,161 | — | 1,978 | — | ||||||||||||
| Restricted stock units – time-based | 415 | 518 | 767 | 1,139 | ||||||||||||
| Non-employee equity-based compensation (f) | — | — | — | 1,033 | ||||||||||||
| Undistributed loss (income) in equity method investments | (547 | ) | 559 | (211 | ) | 415 | ||||||||||
| Corporate development expenses (g) | — | 2,643 | — | 5,612 | ||||||||||||
| Non-recurring legal settlements/costs | — | 188 | — | 6,509 | ||||||||||||
| Gain or loss on sale of property, plant and equipment* | — | 83 | 111 | 51 | ||||||||||||
| COVID - 19 (i) | 655 | 44,200 | 1,270 | 70,380 | ||||||||||||
| Loss on disposal of assets | — | — | 3,211 | — | ||||||||||||
| Net loss on debt repayment | — | — | 226 | — | ||||||||||||
| Other* | 90 | 133 | 1,388 | 2,437 | ||||||||||||
| Adjusted EBITDA | $ | 85,833 | $ | (42,753 | ) | $ | 118,252 | $ | (30,879 | ) | ||||||
* Prior period amounts have been reclassified to conform with current period presentation.
PARTY CITY HOLDCO INC.
RECONCILIATION OF ADJUSTED EBITDA, Continued
(In thousands, unaudited)
| Three Months Ended June 30, 2021 EBITDA Adjustments | ||||||||||||||||||||||||||||||||||||||||
| June 30, 2021 GAAP Basis (as reported) | Inventory restructuring and early lease terminations (j) | Stock Option Expense/Non- Employee Equity Compensation/ Restricted stock units | Deferred Rent (d) | Other restructuring, retention and severance (b) | Closed store expense (e) | COVID- 19 (i) | Foreign currency gains | Other | June 30, 2021 Non-GAAP basis | |||||||||||||||||||||||||||||||
| Net sales | $ | 535,746 | $ | 535,746 | ||||||||||||||||||||||||||||||||||||
| Cost of sales | 318,574 | (2,312 | ) | 316,262 | ||||||||||||||||||||||||||||||||||||
| Gross Profit | 217,172 | 219,484 | ||||||||||||||||||||||||||||||||||||||
| Wholesale selling expenses | 7,358 | 7,358 | ||||||||||||||||||||||||||||||||||||||
| Retail operating expenses | 97,179 | (1,187 | ) | 356 | (1,516 | ) | (463 | ) | 94,369 | |||||||||||||||||||||||||||||||
| General and administrative expenses | 45,795 | (1,680 | ) | 42 | (31 | ) | (27 | ) | (192 | ) | (39 | ) | 43,868 | |||||||||||||||||||||||||||
| Art and development costs | 5,004 | 5,004 | ||||||||||||||||||||||||||||||||||||||
| Income from operations | 61,836 | 68,885 | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 23,116 | (51 | ) | 23,065 | ||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | (1,300 | ) | 772 | 547 | 19 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 40,020 | 45,801 | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 23,116 | 23,116 | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 16,916 | 16,916 | ||||||||||||||||||||||||||||||||||||||
| EBITDA | 80,052 | 85,833 | ||||||||||||||||||||||||||||||||||||||
| Adjustments to EBITDA | 5,781 | (3,499 | ) | (1,680 | ) | 398 | (31 | ) | (1,543 | ) | (655 | ) | 772 | 457 | — | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 85,833 | $ | (3,499 | ) | $ | (1,680 | ) | $ | 398 | $ | (31 | ) | $ | (1,543 | ) | $ | (655 | ) | $ | 772 | $ | 457 | $ | 85,833 | |||||||||||||||
PARTY CITY HOLDCO INC.
RECONCILIATION OF ADJUSTED EBITDA, Continued
(In thousands, unaudited)
| Three Months Ended June 30, 2020 EBITDA Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2020 GAAP Basis (as reported) | Store impairment and restructuring charges (a) | Corporate development expenses (g) | Legal | Stock Option Expense/Non- Employee Equity Compensation/ Restricted stock units – time-based | Deferred Rent (d) | Other restructuring, retention and severance (b) | Closed store expense (e) | COVID- 19 (i) | Foreign currency losses | Other | June 30, 2020 Non-GAAP basis | |||||||||||||||||||||||||||||||||||||
| Net sales | $ | 254,691 | $ | 254,691 | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 237,907 | (597 | ) | (134 | ) | (4,437 | ) | (28,376 | ) | 204,363 | ||||||||||||||||||||||||||||||||||||||
| Gross Profit | 16,784 | 50,328 | ||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale selling expenses | 9,707 | (1,104 | ) | (509 | ) | 8,094 | ||||||||||||||||||||||||||||||||||||||||||
| Retail operating expenses | 65,236 | 1,573 | (342 | ) | (4,389 | ) | 62,078 | |||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 63,955 | (1,003 | ) | (188 | ) | (8,571 | ) | 49 | (1,260 | ) | (58 | ) | (10,926 | ) | 41,998 | |||||||||||||||||||||||||||||||||
| Art and development costs | 3,516 | 3,516 | ||||||||||||||||||||||||||||||||||||||||||||||
| Store impairment and restructuring charges | 1,164 | (1,164 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
| (Loss) from operations | (126,794 | ) | (65,358 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 25,412 | 25,412 | ||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | 1,484 | (536 | ) | (12 | ) | (775 | ) | 161 | ||||||||||||||||||||||||||||||||||||||||
| Loss before income taxes | (153,690 | ) | (90,931 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 25,412 | 25,412 | ||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 22,766 | 22,766 | ||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | (105,512 | ) | (42,753 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Adjustments to EBITDA | 62,759 | (1,761 | ) | (2,643 | ) | (188 | ) | (8,571 | ) | 1,488 | (5,697 | ) | (400 | ) | (44,200 | ) | (12 | ) | (775 | ) | — | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (42,753 | ) | $ | (1,761 | ) | $ | (2,643 | ) | $ | (188 | ) | $ | (8,571 | ) | $ | 1,488 | $ | (5,697 | ) | $ | (400 | ) | $ | (44,200 | ) | $ | (12 | ) | $ | (775 | ) | $ | (42,753 | ) | |||||||||||||
PARTY CITY HOLDCO INC.
RECONCILIATION OF ADJUSTED EBITDA, Continued
(In thousands, unaudited)
| Six Months Ended June 30, 2021 EBITDA Adjustments | ||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2021 GAAP Basis (as reported) | Inventory restructuring and early lease terminations (j) | Net loss on debt repayment | Stock Option Expense/Non- Employee Equity Compensation/ Restricted stock units | Deferred Rent (d) | Other restructuring, retention and severance (b) | Closed store expense (e) | COVID- 19 (i) | Foreign currency gains | Other | June 30, 2021 Non-GAAP basis | ||||||||||||||||||||||||||||||||||
| Net sales | $ | 962,553 | $ | 962,553 | ||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 593,095 | (3,694 | ) | 124 | 589,525 | |||||||||||||||||||||||||||||||||||||||
| Gross Profit | 369,458 | 373,028 | ||||||||||||||||||||||||||||||||||||||||||
| Wholesale selling expenses | 16,474 | 16,474 | ||||||||||||||||||||||||||||||||||||||||||
| Retail operating expenses | 186,075 | (2,943 | ) | (1,212 | ) | (3,078 | ) | (1,053 | ) | (718 | ) | 177,071 | ||||||||||||||||||||||||||||||||
| General and administrative expenses | 91,833 | (2,962 | ) | 84 | (2,082 | ) | (58 | ) | (217 | ) | (689 | ) | 85,909 | |||||||||||||||||||||||||||||||
| Art and development costs | 9,975 | 9,975 | ||||||||||||||||||||||||||||||||||||||||||
| Loss on disposal of assets in international operations | 3,211 | (3,211 | ) | — | ||||||||||||||||||||||||||||||||||||||||
| Income from operations | 61,890 | 83,599 | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 40,330 | (105 | ) | 40,225 | ||||||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | (873 | ) | (226 | ) | 1,311 | 100 | 312 | |||||||||||||||||||||||||||||||||||||
| Income before Income Taxes | 22,433 | 43,062 | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 40,330 | 40,330 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 34,860 | 34,860 | ||||||||||||||||||||||||||||||||||||||||||
| EBITDA | 97,623 | 118,252 | ||||||||||||||||||||||||||||||||||||||||||
| Adjustments to EBITDA | 20,629 | (6,637 | ) | (226 | ) | (2,962 | ) | (1,128 | ) | (2,082 | ) | (3,136 | ) | (1,270 | ) | 1,311 | (4,499 | ) | — | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 118,252 | $ | (6,637 | ) | $ | (226 | ) | $ | (2,962 | ) | $ | (1,128 | ) | $ | (2,082 | ) | $ | (3,136 | ) | $ | (1,270 | ) | $ | 1,311 | $ | (4,499 | ) | $ | 118,252 | ||||||||||||||
PARTY CITY HOLDCO INC.
RECONCILIATION OF ADJUSTED EBITDA, Continued
(In thousands, unaudited)
| Six Months Ended June 30, 2020 EBITDA Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2020 GAAP Basis (as reported) | Goodwill, intangibles and long-lived assets impairment (c) | Store impairment and restructuring charges (a) | Corporate development expenses (g) | Legal | Stock Option Expense/Non- Employee Equity Compensation/ Restricted stock units (f)(g) | Deferred Rent (d) | Other restructuring, retention and severance (b) | Closed store expense (e) | COVID- 19 (i) | Foreign currency loss | Other | June 30, 2020 Non-GAAP basis | ||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 668,734 | $ | 668,734 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 534,664 | (10,630 | ) | (134 | ) | (4,437 | ) | (41,180 | ) | (429 | ) | 477,854 | ||||||||||||||||||||||||||||||||||||||||
| Gross Profit | 134,070 | 190,880 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale selling expenses | 25,165 | (1,840 | ) | (623 | ) | 22,702 | ||||||||||||||||||||||||||||||||||||||||||||||
| Retail operating expenses | 153,402 | 2,909 | (1,508 | ) | (14,567 | ) | 140,236 | |||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 129,289 | (3,132 | ) | (6,509 | ) | (9,546 | ) | 97 | (4,307 | ) | (127 | ) | (14,010 | ) | 91,755 | |||||||||||||||||||||||||||||||||||||
| Art and development costs | 8,838 | 8,838 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Store impairment and restructuring charges | 18,892 | (18,892 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill, intangibles and long-lived assets impairment | 536,648 | (536,648 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Loss) from operations | (738,164 | ) | (72,651 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 50,532 | 50,532 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | 7,160 | (640 | ) | (1,033 | ) | (4,267 | ) | (2,474 | ) | (1,254 | ) | |||||||||||||||||||||||||||||||||||||||||
| (Loss) before income taxes | (795,856 | ) | (121,929 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 50,532 | 50,532 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 40,518 | 40,518 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | (704,806 | ) | (30,879 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments to EBITDA | 673,927 | (536,648 | ) | (29,522 | ) | (5,612 | ) | (6,509 | ) | (10,579 | ) | 2,872 | (8,744 | ) | (1,635 | ) | (70,380 | ) | (4,267 | ) | (2,903 | ) | — | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (30,879 | ) | $ | (536,648 | ) | $ | (29,522 | ) | $ | (5,612 | ) | $ | (6,509 | ) | $ | (10,579 | ) | $ | 2,872 | $ | (8,744 | ) | $ | (1,635 | ) | $ | (70,380 | ) | $ | (4,267 | ) | $ | (2,903 | ) | $ | (30,879 | ) | ||||||||||||||
PARTY CITY HOLDCO INC.
RECONCILIATION OF ADJUSTED NET INCOME
(Unaudited)
| Three Months Ended June 30, | Six months ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||
| Income (loss) before income taxes | $ | 40,020 | $ | (153,690 | ) | $ | 22,433 | $ | (795,856 | ) | ||||||
| Intangible asset amortization | 2,354 | 2,679 | 4,831 | 5,545 | ||||||||||||
| Amortization of deferred financing costs and original issuance discounts | 1,074 | 1,199 | 1,937 | 2,401 | ||||||||||||
| Store impairment and restructuring charges (a) | — | 181 | — | 28,154 | ||||||||||||
| Other restructuring charges (b) | 31 | 6,595 | 1,967 | 7,517 | ||||||||||||
| Goodwill, intangibles and long-lived assets impairment (c) | — | — | — | 536,648 | ||||||||||||
| Non-employee equity-based compensation (f) | — | — | — | 1,033 | ||||||||||||
| Non-recurring legal settlements/costs | — | 100 | — | 6,421 | ||||||||||||
| Stock option expense – time-based | 104 | 561 | 217 | 561 | ||||||||||||
| Stock option expense – performance – based | — | 7,493 | — | 7,847 | ||||||||||||
| Restricted stock unit expense – performance-based | 1,154 | — | 1,971 | — | ||||||||||||
| COVID - 19 (i) | 655 | 44,200 | 1,270 | 70,380 | ||||||||||||
| Loss on disposal of assets | — | — | 3,211 | — | ||||||||||||
| Inventory disposals | 162 | — | 926 | — | ||||||||||||
| Adjusted income (loss) before income taxes | 45,554 | (90,682 | ) | 38,763 | (129,349 | ) | ||||||||||
| Adjusted income tax (benefit) (h) | 11,446 | (29,366 | ) | 10,064 | (41,650 | ) | ||||||||||
| Adjusted net income (loss) | $ | 34,108 | $ | (61,316 | ) | $ | 28,699 | $ | (87,699 | ) | ||||||
| Adjusted net income (loss) per common share – diluted | $ | 0.29 | $ | (0.66 | ) | $ | 0.25 | $ | (0.94 | ) | ||||||
| Weighted-average number of common shares-diluted | 116,251,151 | 93,419,078 | 115,499,304 | 93,407,344 | ||||||||||||
- The Company performed a comprehensive review of its store locations aimed at improving the overall productivity of such locations (“store optimization program”). After careful consideration and evaluation of the store locations, the Company made the decision to accelerate the optimization of its store portfolio with the closure of stores, which are primarily located in close proximity to other Party City stores. For further detail, refer to Note 3 – Store Impairment and Restructuring Charges of Item 1, “Condensed Consolidated Financial Statements (Unaudited)” in this Quarterly Report on Form 10-Q 2021.
- Amounts expensed principally relate to severance due to organizational changes.
- As a result of a sustained decline in market capitalization, the Company recognized a non-cash pre-tax goodwill and intangibles impairment charge at March 31, 2020.
- The “deferred rent” adjustment reflects the difference between accounting for rent and landlord incentives in accordance with GAAP and the Company’s actual cash outlay.
- Charges incurred related to closing and relocating stores in the ordinary course of business.
- The acquisition of Ampology’s interest in Kazzam, LLC in an equity transaction. See Note 17 – Kazzam, LLC of Item 1 in the June 30, 2021 Quarterly Report on Form 10-Q.
- Primarily represents costs for Kazzam (See Note 17 – Kazzam, LLC of Item 1 in the June 30, 2021 Quarterly Report on Form 10-Q for further discussion).
- Represents income tax expense/benefit after excluding the specific tax impacts for each of the pre-tax adjustments. The tax impacts for each of the adjustments were determined by applying to the pre-tax adjustments the effective income tax rates for the specific legal entities in which the adjustments were recorded.
- Represents COVID-19 expenses for employees on temporary furlough for whom the Company provides health benefits; non-payroll expenses including advertising, occupancy and other store expenses.
- Costs incurred for early lease terminations and a merchandise transformation project to transition and optimize stores to the reduced SKU assortment levels.
PARTY CITY HOLDCO INC.
SEGMENT INFORMATION
(In thousands, except percentages, unaudited)
| Three Months Ended June 30, | ||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||
| Dollars in Thousands | Percentage of Total Revenues | Dollars in Thousands | Percentage of Total Revenues | |||||||||||||||
| Net Sales: | ||||||||||||||||||
| Wholesale | $ | 230,961 | 43.1 | % | $ | 131,296 | 51.6 | % | ||||||||||
| Eliminations | (139,027 | ) | (26.0 | ) | (62,387 | ) | (24.5 | ) | ||||||||||
| Net wholesale | 91,934 | 17.2 | 68,909 | 27.1 | ||||||||||||||
| Retail* | 443,812 | 82.8 | 185,782 | 72.9 | ||||||||||||||
| Total revenues | $ | 535,746 | 100.0 | % | $ | 254,691 | 100.0 | % | ||||||||||
*Retail revenues include royalties and franchise fees. Prior year amount conformed to current year presentation.
| Six months ended June 30, | ||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||
| Dollars in Thousands | Percentage of Total Revenues | Dollars in Thousands | Percentage of Total Revenues | |||||||||||||||
| Net Sales: | ||||||||||||||||||
| Wholesale | $ | 443,098 | 46.0 | % | $ | 346,094 | 51.8 | % | ||||||||||
| Eliminations | (257,639 | ) | (26.8 | ) | (166,118 | ) | (24.8 | ) | ||||||||||
| Net wholesale | 185,459 | 19.3 | 179,976 | 26.9 | ||||||||||||||
| Retail* | 777,094 | 80.7 | 488,758 | 73.1 | ||||||||||||||
| Total revenues | $ | 962,553 | 100.0 | % | $ | 668,734 | 100.0 | % | ||||||||||
*Retail revenues include royalties and franchise fees. Prior year amount conformed to current year presentation.
| Three Months Ended June 30, | ||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||
| Dollars in Thousands | Percentage of Net Sales | Dollars in Thousands | Percentage of Net Sales | |||||||||||||||
| Retail Gross Profit* | $ | 193,565 | 43.6 | % | $ | 29,902 | 16.1 | % | ||||||||||
| Wholesale Gross Profit | 23,607 | 25.7 | (13,118 | ) | (19.0 | ) | ||||||||||||
| Total Gross Profit | $ | 217,172 | 40.5 | % | $ | 16,784 | 6.6 | % | ||||||||||
*Retail Gross Profit include royalties and franchise fees. Prior year amount conformed to current year presentation.
| Six months ended June 30, | ||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||
| Dollars in Thousands | Percentage of Net Sales | Dollars in Thousands | Percentage of Net Sales | |||||||||||||||
| Retail Gross Profit* | $ | 316,743 | 40.8 | % | $ | 125,845 | 25.7 | % | ||||||||||
| Wholesale Gross Profit | 52,715 | 28.4 | 8,225 | 4.6 | ||||||||||||||
| Total Gross Profit | $ | 369,458 | 38.4 | % | $ | 134,070 | 20.0 | % | ||||||||||
*Retail Gross Profit include royalties and franchise fees. Prior year amount conformed to current year presentation.
PARTY CITY HOLDCO INC.
OPERATING METRICS
| Three months ended June 30, | LTM | |||||||||||
| 2021 | 2020 | 2021 | ||||||||||
| Store Count | ||||||||||||
| Corporate Stores: | ||||||||||||
| Beginning of period | 746 | 757 | 757 | |||||||||
| New stores opened | 5 | 1 | 10 | |||||||||
| Acquired | — | — | 5 | |||||||||
| Closed | (2 | ) | (1 | ) | (23 | ) | ||||||
| End of period | 749 | 757 | 749 | |||||||||
| Franchise Stores | ||||||||||||
| Beginning of period | 85 | 97 | 96 | |||||||||
| Sold to Party City | — | — | (5 | ) | ||||||||
| Closed | (3 | ) | — | (9 | ) | |||||||
| End of period | 82 | 97 | 82 | |||||||||
| Grand Total | 831 | 854 | 831 | |||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Wholesale Share of Shelf (a) | 81.0 | % | 82.3 | % | 81.2 | % | 81.7 | % | ||||
| Manufacturing Share of Shelf (b) | 30.7 | % | 33.5 | % | 31.4 | % | 30.7 | % | ||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Brand comparable sales (c) | 118.3 | % | -52.4 | % | 73.4 | % | -35.6 | % | ||||
(a) Wholesale share of shelf represents the percentage of our retail product cost of sales supplied by our wholesale operations.
(b) Manufacturing share of shelf represents the percentage of our retail product cost of sales manufactured by the company.
(c) Party City brand comparable sales include North American e-commerce sales.
FAQ
What were Party City's Q2 2021 sales figures?
How did Party City's net income change in Q2 2021?
What is the adjusted EBITDA for Party City in Q2 2021?
What are Party City's projections for Q3 2021?
What impact did COVID-19 have on Party City's financial results?
