Company Quick10K Filing
Party City
Price5.64 EPS-2
Shares94 P/E-3
MCap533 P/FCF-3
Net Debt1,543 EBIT-84
TEV2,076 TEV/EBIT-25
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-09
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-06-12
10-K 2019-12-31 Filed 2020-03-12
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-09
10-K 2017-12-31 Filed 2018-03-14
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-16
10-Q 2016-09-30 Filed 2016-11-10
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-13
10-K 2015-12-31 Filed 2016-03-14
10-Q 2015-09-30 Filed 2015-11-13
10-Q 2015-06-30 Filed 2015-08-14
10-Q 2015-03-31 Filed 2015-05-15
8-K 2020-11-09
8-K 2020-10-15
8-K 2020-09-30
8-K 2020-09-11
8-K 2020-08-06
8-K 2020-07-30
8-K 2020-07-27
8-K 2020-07-10
8-K 2020-07-02
8-K 2020-06-26
8-K 2020-06-12
8-K 2020-05-28
8-K 2020-05-08
8-K 2020-04-09
8-K 2020-04-08
8-K 2020-03-27
8-K 2020-03-12
8-K 2020-01-09
8-K 2019-12-17
8-K 2019-11-19
8-K 2019-11-12
8-K 2019-11-07
8-K 2019-09-11
8-K 2019-08-08
8-K 2019-07-17
8-K 2019-06-28
8-K 2019-06-24
8-K 2019-06-06
8-K 2019-05-09
8-K 2019-04-12
8-K 2019-04-08
8-K 2019-02-28
8-K 2019-02-01
8-K 2018-11-08
8-K 2018-08-31
8-K 2018-08-09
8-K 2018-08-06
8-K 2018-08-02
8-K 2018-07-26
8-K 2018-07-23
8-K 2018-06-06
8-K 2018-05-15
8-K 2018-05-09
8-K 2018-04-12
8-K 2018-03-09
8-K 2018-02-16
8-K 2018-02-08
8-K 2018-01-09

PRTY 10Q Quarterly Report

Note 1 - Description of Business
Note 2 - Basis of Presentation and Recently Issued Accounting Pronouncements
Note 3 - Store Impairment and Restructuring Charges
Note 4 - Goodwill, Intangibles and Long - Lived Assets Impairment
Note 5 - Sale/Leaseback Transaction
Note 6 - Disposition of Assets
Note 7 - Inventories
Note 8 - Income Taxes
Note 9 - Changes in Accumulated Other Comprehensive Loss
Note 10 - Capital Stock
Note 11 - Segment Information
Note 12 - Commitments and Contingencies
Note 13 - Derivative Financial Instruments
Note 14 - Fair Value Measurements
Note 15 - Earnings per Share
Note 16 - Current and Long - Term Obligations
Note 17 - Revenue From Contracts with Customers
Note 18 - Cash, Cash Equivalents and Restricted Cash
Note 19 - Kazzam, Llc
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 prty-ex311_6.htm
EX-31.2 prty-ex312_7.htm
EX-32.1 prty-ex321_9.htm
EX-32.2 prty-ex322_8.htm

Party City Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
4.53.62.71.80.90.02013201520172020
Assets, Equity
0.80.60.40.1-0.1-0.32013201520172020
Rev, G Profit, Net Income
0.30.20.1-0.1-0.2-0.32013201520172020
Ops, Inv, Fin

prty-10q_20200930.htm
--12-31 false 0001592058 2020 Q3 true true true true true true true true true true true P3Y us-gaap:AccountingStandardsUpdate201807Member 0001592058 2020-01-01 2020-09-30 xbrli:shares 0001592058 2020-10-30 iso4217:USD 0001592058 2020-09-30 0001592058 2019-12-31 0001592058 us-gaap:ProductMember 2020-07-01 2020-09-30 0001592058 us-gaap:ProductMember 2019-07-01 2019-09-30 0001592058 us-gaap:FranchiseMember 2020-07-01 2020-09-30 0001592058 us-gaap:FranchiseMember 2019-07-01 2019-09-30 0001592058 2020-07-01 2020-09-30 0001592058 2019-07-01 2019-09-30 iso4217:USD xbrli:shares 0001592058 us-gaap:ProductMember 2020-01-01 2020-09-30 0001592058 us-gaap:ProductMember 2019-01-01 2019-09-30 0001592058 us-gaap:FranchiseMember 2020-01-01 2020-09-30 0001592058 us-gaap:FranchiseMember 2019-01-01 2019-09-30 0001592058 2019-01-01 2019-09-30 0001592058 us-gaap:CommonStockMember 2020-06-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001592058 us-gaap:RetainedEarningsMember 2020-06-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2020-06-30 0001592058 us-gaap:TreasuryStockCommonMember 2020-06-30 0001592058 us-gaap:ParentMember 2020-06-30 0001592058 us-gaap:NoncontrollingInterestMember 2020-06-30 0001592058 2020-06-30 0001592058 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2020-07-01 2020-09-30 0001592058 us-gaap:ParentMember 2020-07-01 2020-09-30 0001592058 us-gaap:NoncontrollingInterestMember 2020-07-01 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:TimeBasedUnitsMember 2020-07-01 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:TimeBasedUnitsMember 2020-07-01 2020-09-30 0001592058 us-gaap:ParentMember prty:TimeBasedUnitsMember 2020-07-01 2020-09-30 0001592058 prty:TimeBasedUnitsMember 2020-07-01 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:PerformanceBasedUnitsMember 2020-07-01 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:PerformanceBasedUnitsMember 2020-07-01 2020-09-30 0001592058 us-gaap:ParentMember prty:PerformanceBasedUnitsMember 2020-07-01 2020-09-30 0001592058 prty:PerformanceBasedUnitsMember 2020-07-01 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001592058 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001592058 us-gaap:CommonStockMember 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001592058 us-gaap:RetainedEarningsMember 2020-09-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2020-09-30 0001592058 us-gaap:TreasuryStockCommonMember 2020-09-30 0001592058 us-gaap:ParentMember 2020-09-30 0001592058 us-gaap:NoncontrollingInterestMember 2020-09-30 0001592058 us-gaap:CommonStockMember 2019-06-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001592058 us-gaap:RetainedEarningsMember 2019-06-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2019-06-30 0001592058 us-gaap:TreasuryStockCommonMember 2019-06-30 0001592058 us-gaap:ParentMember 2019-06-30 0001592058 us-gaap:NoncontrollingInterestMember 2019-06-30 0001592058 2019-06-30 0001592058 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2019-07-01 2019-09-30 0001592058 us-gaap:ParentMember 2019-07-01 2019-09-30 0001592058 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:TimeBasedUnitsMember 2019-07-01 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:TimeBasedUnitsMember 2019-07-01 2019-09-30 0001592058 us-gaap:ParentMember prty:TimeBasedUnitsMember 2019-07-01 2019-09-30 0001592058 prty:TimeBasedUnitsMember 2019-07-01 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:PerformanceBasedUnitsMember 2019-07-01 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:PerformanceBasedUnitsMember 2019-07-01 2019-09-30 0001592058 us-gaap:ParentMember prty:PerformanceBasedUnitsMember 2019-07-01 2019-09-30 0001592058 prty:PerformanceBasedUnitsMember 2019-07-01 2019-09-30 0001592058 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001592058 us-gaap:CommonStockMember 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001592058 us-gaap:RetainedEarningsMember 2019-09-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2019-09-30 0001592058 us-gaap:TreasuryStockCommonMember 2019-09-30 0001592058 us-gaap:ParentMember 2019-09-30 0001592058 us-gaap:NoncontrollingInterestMember 2019-09-30 0001592058 2019-09-30 0001592058 us-gaap:CommonStockMember 2019-12-31 0001592058 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001592058 us-gaap:RetainedEarningsMember 2019-12-31 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2019-12-31 0001592058 us-gaap:TreasuryStockCommonMember 2019-12-31 0001592058 us-gaap:ParentMember 2019-12-31 0001592058 us-gaap:NoncontrollingInterestMember 2019-12-31 0001592058 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2020-01-01 2020-09-30 0001592058 us-gaap:ParentMember 2020-01-01 2020-09-30 0001592058 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:TimeBasedUnitsMember 2020-01-01 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:TimeBasedUnitsMember 2020-01-01 2020-09-30 0001592058 us-gaap:ParentMember prty:TimeBasedUnitsMember 2020-01-01 2020-09-30 0001592058 prty:TimeBasedUnitsMember 2020-01-01 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:PerformanceBasedUnitsMember 2020-01-01 2020-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:PerformanceBasedUnitsMember 2020-01-01 2020-09-30 0001592058 us-gaap:ParentMember prty:PerformanceBasedUnitsMember 2020-01-01 2020-09-30 0001592058 prty:PerformanceBasedUnitsMember 2020-01-01 2020-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-30 0001592058 us-gaap:TreasuryStockCommonMember 2020-01-01 2020-09-30 0001592058 us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0001592058 us-gaap:CommonStockMember 2018-12-31 0001592058 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001592058 us-gaap:RetainedEarningsMember 2018-12-31 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2018-12-31 0001592058 us-gaap:TreasuryStockCommonMember 2018-12-31 0001592058 us-gaap:ParentMember 2018-12-31 0001592058 us-gaap:NoncontrollingInterestMember 2018-12-31 0001592058 2018-12-31 0001592058 us-gaap:AdditionalPaidInCapitalMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-31 0001592058 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-31 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-31 0001592058 us-gaap:ParentMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-31 0001592058 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-31 0001592058 us-gaap:CommonStockMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:AdditionalPaidInCapitalMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:TreasuryStockCommonMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:ParentMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:NoncontrollingInterestMember srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember 2018-12-31 0001592058 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember 2019-01-01 2019-09-30 0001592058 us-gaap:ParentMember 2019-01-01 2019-09-30 0001592058 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:TimeBasedUnitsMember 2019-01-01 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:TimeBasedUnitsMember 2019-01-01 2019-09-30 0001592058 us-gaap:ParentMember prty:TimeBasedUnitsMember 2019-01-01 2019-09-30 0001592058 prty:TimeBasedUnitsMember 2019-01-01 2019-09-30 0001592058 us-gaap:AdditionalPaidInCapitalMember prty:PerformanceBasedUnitsMember 2019-01-01 2019-09-30 0001592058 prty:StockholdersEquityBeforeTreasuryStockMember prty:PerformanceBasedUnitsMember 2019-01-01 2019-09-30 0001592058 us-gaap:ParentMember prty:PerformanceBasedUnitsMember 2019-01-01 2019-09-30 0001592058 prty:PerformanceBasedUnitsMember 2019-01-01 2019-09-30 0001592058 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001592058 us-gaap:TreasuryStockCommonMember 2019-01-01 2019-09-30 0001592058 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 prty:Store 0001592058 prty:UnitedStatesAndCanadaMember 2020-09-30 xbrli:pure 0001592058 prty:PcNextcoMember 2020-01-01 2020-09-30 0001592058 prty:PCIntermediateHoldingsIncMember 2020-01-01 2020-09-30 0001592058 prty:PartyCityHoldingsMember 2020-01-01 2020-09-30 0001592058 us-gaap:AccountingStandardsUpdate201813Member 2020-09-30 0001592058 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201807Member 2019-01-01 0001592058 us-gaap:AccountingStandardsUpdate201807Member 2020-09-30 0001592058 2019-01-01 2019-01-01 0001592058 us-gaap:AccountingStandardsUpdate201712Member 2020-09-30 0001592058 us-gaap:AccountingStandardsUpdate201704Member 2020-09-30 0001592058 us-gaap:AccountingStandardsUpdate201613Member 2020-09-30 0001592058 us-gaap:AccountingStandardsUpdate201602Member 2020-09-30 0001592058 2019-01-01 2019-12-31 0001592058 2020-01-01 2020-01-31 0001592058 2020-01-01 2020-03-31 0001592058 us-gaap:CostOfSalesMember 2020-07-01 2020-09-30 0001592058 us-gaap:RestructuringChargesMember 2020-07-01 2020-09-30 0001592058 us-gaap:RestructuringChargesMember 2019-07-01 2019-09-30 0001592058 us-gaap:CostOfSalesMember 2020-01-01 2020-09-30 0001592058 us-gaap:CostOfSalesMember 2019-01-01 2019-09-30 0001592058 us-gaap:RestructuringChargesMember 2020-01-01 2020-09-30 0001592058 us-gaap:RestructuringChargesMember 2019-01-01 2019-09-30 0001592058 us-gaap:RetailMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001592058 prty:WholesaleMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001592058 prty:PartyCityHoldingsMember 2020-01-01 2020-03-31 0001592058 prty:HalloweenCityTradeNameMember 2020-01-01 2020-03-31 0001592058 prty:PartyCityHoldingsMember 2019-01-01 2019-12-31 0001592058 prty:HalloweenCityTradeNameMember 2019-01-01 2019-12-31 0001592058 us-gaap:RetailMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 prty:WholesaleMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 us-gaap:TradeNamesMember 2020-07-01 2020-09-30 0001592058 prty:LosLunasNewMexicoFacilityFinancingMember prty:FinanceLeaseObligationsMember 2020-09-30 0001592058 prty:LosLunasNewMexicoFacilityFinancingMember prty:FinanceLeaseObligationsMember 2019-12-31 0001592058 prty:TermLoanCreditAgreementMember 2019-06-01 2019-06-30 0001592058 prty:CanadianBasedRetailerMember 2019-10-01 2019-10-01 0001592058 prty:PartyCityHoldingsMember 2020-09-29 2020-09-30 0001592058 prty:PartyCityHoldingsMember us-gaap:SubsequentEventMember 2021-03-31 2021-03-31 0001592058 2020-03-27 0001592058 2017-01-01 2017-12-31 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2020-06-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-06-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2020-07-01 2020-09-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-07-01 2020-09-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2020-09-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-09-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2019-07-01 2019-09-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-07-01 2019-09-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-09-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-09-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-09-30 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001592058 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-09-30 0001592058 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-09-30 prty:Segment 0001592058 prty:WholesaleMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 us-gaap:RetailMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 us-gaap:RetailMember us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 prty:WholesaleMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 us-gaap:RetailMember us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001592058 prty:WholesaleMember us-gaap:IntersegmentEliminationMember 2020-07-01 2020-09-30 0001592058 us-gaap:IntersegmentEliminationMember 2020-07-01 2020-09-30 0001592058 prty:WholesaleMember 2020-07-01 2020-09-30 0001592058 us-gaap:RetailMember 2020-07-01 2020-09-30 0001592058 prty:WholesaleMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 us-gaap:RetailMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 us-gaap:RetailMember us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001592058 prty:WholesaleMember us-gaap:IntersegmentEliminationMember 2019-07-01 2019-09-30 0001592058 us-gaap:IntersegmentEliminationMember 2019-07-01 2019-09-30 0001592058 prty:WholesaleMember 2019-07-01 2019-09-30 0001592058 us-gaap:RetailMember 2019-07-01 2019-09-30 0001592058 prty:WholesaleMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 us-gaap:RetailMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 us-gaap:RetailMember us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 prty:WholesaleMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 us-gaap:RetailMember us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001592058 prty:WholesaleMember us-gaap:IntersegmentEliminationMember 2020-01-01 2020-09-30 0001592058 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-09-30 0001592058 prty:WholesaleMember 2020-01-01 2020-09-30 0001592058 us-gaap:RetailMember 2020-01-01 2020-09-30 0001592058 prty:WholesaleMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 us-gaap:RetailMember us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 us-gaap:ProductMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 us-gaap:RetailMember us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 us-gaap:FranchiseMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 prty:WholesaleMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 us-gaap:RetailMember us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001592058 prty:WholesaleMember us-gaap:IntersegmentEliminationMember 2019-01-01 2019-09-30 0001592058 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-09-30 0001592058 prty:WholesaleMember 2019-01-01 2019-09-30 0001592058 us-gaap:RetailMember 2019-01-01 2019-09-30 0001592058 2019-04-01 2019-06-30 0001592058 prty:ForeignExchangeRiskManagementMember srt:MaximumMember 2020-01-01 2020-09-30 0001592058 prty:ForeignExchangeRiskManagementMember 2020-01-01 2020-09-30 0001592058 us-gaap:ForeignExchangeContractMember us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-09-30 0001592058 us-gaap:ForeignExchangeContractMember us-gaap:AccruedLiabilitiesMember 2020-09-30 0001592058 us-gaap:ForeignExchangeContractMember 2020-09-30 0001592058 us-gaap:ForeignExchangeContractMember 2019-12-31 0001592058 prty:PunchbowlIncMember 2017-12-31 0001592058 us-gaap:OptionOnSecuritiesMember 2019-11-01 2019-11-30 0001592058 prty:TermLoanCreditAgreementMember us-gaap:SecuredDebtMember 2020-09-30 0001592058 prty:SixPointOneTwoFivePercentSeniorNotesDueTwoThousandAndTwentyThreeMember us-gaap:SeniorNotesMember 2020-09-30 0001592058 prty:SixPointSixTwoFivePercentSeniorNotesDueTwoThousandAndTwentySixMember us-gaap:SeniorNotesMember 2020-09-30 0001592058 prty:FirstLienPartyCityNotesMatureOnJulyFifteenTwoThousandTwentyFiveMember us-gaap:SeniorNotesMember 2020-09-30 0001592058 prty:FirstLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentyFiveMember us-gaap:SeniorNotesMember 2020-09-30 0001592058 prty:SecondLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentySixMember us-gaap:SeniorNotesMember 2020-09-30 0001592058 us-gaap:EmployeeStockOptionMember 2020-07-01 2020-09-30 0001592058 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001592058 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001592058 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001592058 us-gaap:WarrantMember 2020-07-01 2020-09-30 0001592058 us-gaap:WarrantMember 2020-01-01 2020-09-30 0001592058 us-gaap:WarrantMember 2019-07-01 2019-09-30 0001592058 us-gaap:WarrantMember 2019-01-01 2019-09-30 0001592058 us-gaap:RestrictedStockUnitsRSUMember 2020-07-01 2020-09-30 0001592058 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-09-30 0001592058 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0001592058 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-30 0001592058 prty:TermLoanCreditAgreementMember prty:SeniorSecuredTermLoanFacilityMember 2020-09-30 0001592058 prty:TermLoanCreditAgreementMember prty:SeniorSecuredTermLoanFacilityMember 2019-12-31 0001592058 prty:SixPointOneTwoFivePercentageSeniorNotesDue2023Member 2020-09-30 0001592058 prty:SixPointOneTwoFivePercentageSeniorNotesDue2023Member 2019-12-31 0001592058 prty:SixPointSixTwoFivePercentageSeniorNotesDue2026Member 2020-09-30 0001592058 prty:SixPointSixTwoFivePercentageSeniorNotesDue2026Member 2019-12-31 0001592058 prty:FirstLienPartyCityNotesMatureOnJulyFifteenTwoThousandTwentyFiveMember 2020-09-30 0001592058 prty:FirstLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentyFiveMember 2020-09-30 0001592058 prty:SecondLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentySixMember 2020-09-30 0001592058 prty:FinanceLeaseObligationsMember 2020-09-30 0001592058 prty:FinanceLeaseObligationsMember 2019-12-31 0001592058 prty:SixPointOneTwoFivePercentageSeniorNotesDue2023Member 2020-01-01 2020-09-30 0001592058 prty:SixPointOneTwoFivePercentageSeniorNotesDue2023Member 2019-01-01 2019-12-31 0001592058 prty:SixPointSixTwoFivePercentageSeniorNotesDue2026Member 2020-01-01 2020-09-30 0001592058 prty:SixPointSixTwoFivePercentageSeniorNotesDue2026Member 2019-01-01 2019-12-31 0001592058 prty:AssetBasedRevolvingCreditFacilityMember 2019-03-31 0001592058 2019-03-31 0001592058 prty:AssetBasedRevolvingCreditFacilityMember 2020-01-01 2020-09-30 0001592058 prty:AssetBasedRevolvingCreditFacilityMember 2019-04-25 0001592058 us-gaap:USTreasurySecuritiesMember 2020-09-30 0001592058 prty:AssetBasedRevolvingCreditFacilityMember 2020-09-30 0001592058 prty:SixPointOneTwoFivePercentageSeniorNotesDue2023Member prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:SixPointOneTwoFivePercentageSeniorNotesDue2023Member prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:SixPointSixTwoFivePercentageSeniorNotesDue2026Member prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:SixPointSixTwoFivePercentageSeniorNotesDue2026Member prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:SeniorSecuredFirstLienFloatingRateNotesDueTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:SeniorSecuredFirstLienFloatingRateNotesDueTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:TenPointZeroZeroPercentagePaymentInKindCashSeniorSecuredSecondLienNotesDueTwoThousandTwentySixMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:TenPointZeroZeroPercentagePaymentInKindCashSeniorSecuredSecondLienNotesDueTwoThousandTwentySixMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:FifteenPointZeroZeroPercentagePaymentInKindCashSeniorSecuredFirstLienNotesDueTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:FifteenPointZeroZeroPercentagePaymentInKindCashSeniorSecuredFirstLienNotesDueTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:FirstLienPartyCityNotesMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:FirstLienPartyCityNotesMatureOnJulyFifteenTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:FirstLienPartyCityNotesMatureOnJulyFifteenTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:FirstLienPartyCityNotesMatureOnJulyFifteenTwoThousandTwentyFiveMember us-gaap:LondonInterbankOfferedRateLIBORMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 prty:BasisPoint 0001592058 prty:FirstLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:FirstLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentyFiveMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:SecondLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentySixMember prty:RefinancingTransactionsMember 2020-07-30 0001592058 prty:SecondLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentySixMember prty:RefinancingTransactionsMember 2020-07-28 2020-07-30 0001592058 prty:FirstLienPartyAnagramNotesMatureOnAugustFifteenTwoThousandTwentyFiveMember 2020-01-01 2020-09-30 0001592058 srt:NorthAmericaMember prty:PartyCityStoresMember prty:RetailSegmentMember 2020-07-01 2020-09-30 0001592058 srt:NorthAmericaMember prty:PartyCityStoresMember prty:RetailSegmentMember 2019-07-01 2019-09-30 0001592058 srt:NorthAmericaMember prty:PartyCityStoresMember prty:RetailSegmentMember 2020-01-01 2020-09-30 0001592058 srt:NorthAmericaMember prty:PartyCityStoresMember prty:RetailSegmentMember 2019-01-01 2019-09-30 0001592058 prty:OtherRetailSegmentStoreMember prty:RetailSegmentMember 2020-07-01 2020-09-30 0001592058 prty:OtherRetailSegmentStoreMember prty:RetailSegmentMember 2019-07-01 2019-09-30 0001592058 prty:OtherRetailSegmentStoreMember prty:RetailSegmentMember 2020-01-01 2020-09-30 0001592058 prty:OtherRetailSegmentStoreMember prty:RetailSegmentMember 2019-01-01 2019-09-30 0001592058 us-gaap:ProductMember prty:RetailSegmentMember 2020-07-01 2020-09-30 0001592058 us-gaap:ProductMember prty:RetailSegmentMember 2019-07-01 2019-09-30 0001592058 us-gaap:ProductMember prty:RetailSegmentMember 2020-01-01 2020-09-30 0001592058 us-gaap:ProductMember prty:RetailSegmentMember 2019-01-01 2019-09-30 0001592058 us-gaap:FranchiseMember prty:RetailSegmentMember 2020-07-01 2020-09-30 0001592058 us-gaap:FranchiseMember prty:RetailSegmentMember 2019-07-01 2019-09-30 0001592058 us-gaap:FranchiseMember prty:RetailSegmentMember 2020-01-01 2020-09-30 0001592058 us-gaap:FranchiseMember prty:RetailSegmentMember 2019-01-01 2019-09-30 0001592058 prty:RetailSegmentMember 2020-07-01 2020-09-30 0001592058 prty:RetailSegmentMember 2019-07-01 2019-09-30 0001592058 prty:RetailSegmentMember 2020-01-01 2020-09-30 0001592058 prty:RetailSegmentMember 2019-01-01 2019-09-30 0001592058 prty:DomesticMember prty:WholesaleSegmentMember 2020-07-01 2020-09-30 0001592058 prty:DomesticMember prty:WholesaleSegmentMember 2019-07-01 2019-09-30 0001592058 prty:DomesticMember prty:WholesaleSegmentMember 2020-01-01 2020-09-30 0001592058 prty:DomesticMember prty:WholesaleSegmentMember 2019-01-01 2019-09-30 0001592058 prty:InternationalMember prty:WholesaleSegmentMember 2020-07-01 2020-09-30 0001592058 prty:InternationalMember prty:WholesaleSegmentMember 2019-07-01 2019-09-30 0001592058 prty:InternationalMember prty:WholesaleSegmentMember 2020-01-01 2020-09-30 0001592058 prty:InternationalMember prty:WholesaleSegmentMember 2019-01-01 2019-09-30 0001592058 prty:WholesaleSegmentMember 2020-07-01 2020-09-30 0001592058 prty:WholesaleSegmentMember 2019-07-01 2019-09-30 0001592058 prty:WholesaleSegmentMember 2020-01-01 2020-09-30 0001592058 prty:WholesaleSegmentMember 2019-01-01 2019-09-30 0001592058 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-09-30 0001592058 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2019-12-31 0001592058 prty:KazzamLlcMember 2019-12-31 0001592058 prty:KazzamLlcMember 2020-03-22 2020-03-23 0001592058 srt:MaximumMember prty:KazzamLlcMember 2020-03-23

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                  to                 

Commission file number 001-37344

 

 

Party City Holdco Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

 

46-0539758

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

80 Grasslands Road Elmsford, NY

 

10523

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code:

(914345-2020

 

 

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

 

Title of each class 

 

Trading

Symbol(s) 

 

Name of each exchange on which registered 

 

 

 

 

 

Common Stock, Par Value: $0.01/share

 

PRTY

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

Emerging Growth Company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of October 30, 2020, 110,646,150 shares of the Registrant’s common stock were outstanding.

 

 

 

 


 

PARTY CITY HOLDCO INC.

Form 10-Q

September 30, 2020

TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I

 

 

 

 

 

Item 1. Condensed Consolidated Financial Statements (Unaudited)

 

 

 

 

 

Condensed Consolidated Balance Sheets at September 30, 2020 and December 31, 2019

 

3

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended September 30, 2020 and September 30, 2019

 

4

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Nine Months Ended September 30, 2020 and September 30, 2019

 

5

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three Months ended September 30, 2020 and September 30, 2019

 

6

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Nine Months Ended September 30, 2020 and September 30, 2019

 

7

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and September 30, 2019

 

8

 

 

 

Notes to Condensed Consolidated Financial Statements

 

9

 

 

 

Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

23

 

 

 

Item  3. Quantitative and Qualitative Disclosures about Market Risk

 

45

 

 

 

Item 4. Controls and Procedures

 

45

 

 

 

PART II

 

 

 

 

 

Item 1. Legal Proceedings

 

46

 

 

 

Item 1A. Risk Factors

 

46

 

 

 

Item 6. Exhibits

 

47

 

 

 

Signature

 

48

 

2


 

PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

 

September 30,

2020

 

 

December 31,

2019

 

 

 

(Note 2)

(Unaudited)

 

 

(Note 2)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

170,562

 

 

$

34,917

 

Accounts receivable, net

 

 

149,825

 

 

 

149,109

 

Inventories, net

 

 

630,357

 

 

 

658,419

 

Prepaid expenses and other current assets

 

 

112,038

 

 

 

51,685

 

Total current assets

 

 

1,062,782

 

 

 

894,130

 

Property, plant and equipment, net

 

 

206,447

 

 

 

243,572

 

Operating lease asset

 

 

741,524

 

 

 

802,634

 

Goodwill

 

 

669,564

 

 

 

1,072,330

 

Trade names

 

 

383,666

 

 

 

530,320

 

Other intangible assets, net

 

 

34,505

 

 

 

45,060

 

Other assets, net

 

 

9,521

 

 

 

7,273

 

Total assets

 

$

3,108,009

 

 

$

3,595,319

 

LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Loans and notes payable

 

$

303,894

 

 

$

128,806

 

Accounts payable

 

 

179,938

 

 

 

152,300

 

Accrued expenses

 

 

202,636

 

 

 

150,921

 

Current portion of operating lease liability

 

 

194,476

 

 

 

155,471

 

Income taxes payable

 

 

 

 

 

35,905

 

Current portion of long-term obligations

 

 

14,342

 

 

 

71,524

 

Total current liabilities

 

 

895,286

 

 

 

694,927

 

Long-term obligations, excluding current portion

 

 

1,334,338

 

 

 

1,503,987

 

Long-term portion of operating lease liability

 

 

677,183

 

 

 

720,735

 

Deferred income tax liabilities, net

 

 

49,508

 

 

 

126,081

 

Other long-term liabilities

 

 

15,559

 

 

 

16,517

 

Total liabilities

 

 

2,971,874

 

 

 

3,062,247

 

Redeemable securities

 

 

 

 

 

3,351

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock (110,573,555 and 94,461,576 shares outstanding and 121,848,074 and

   121,662,540 shares issued at September 30, 2020 and December 31, 2019, respectively)

 

 

1,371

 

 

 

1,211

 

Additional paid-in capital

 

 

970,145

 

 

 

928,573

 

Accumulated deficit

 

 

(469,040

)

 

 

(37,219

)

Accumulated other comprehensive loss

 

 

(38,907

)

 

 

(35,734

)

Total Party City Holdco Inc. stockholders’ equity before common stock held in

   treasury

 

 

463,569

 

 

 

856,831

 

Less: Common stock held in treasury, at cost (11,274,519 and 27,200,964 shares at

   September 30, 2020 and December 31, 2019, respectively)

 

 

(327,170

)

 

 

(327,086

)

Total Party City Holdco Inc. stockholders’ equity

 

 

136,399

 

 

 

529,745

 

Noncontrolling interests

 

 

(264

)

 

 

(24

)

Total stockholders’ equity

 

 

136,135

 

 

 

529,721

 

Total liabilities, redeemable securities and stockholders’ equity

 

$

3,108,009

 

 

$

3,595,319

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

3


 

PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

Net sales

 

$

532,053

 

 

$

538,345

 

Royalties and franchise fees

 

 

1,722

 

 

 

1,886

 

Total revenues

 

 

533,775

 

 

 

540,231

 

Cost of sales

 

 

355,923

 

 

 

373,413

 

Wholesale selling expenses

 

 

11,950

 

 

 

16,084

 

Retail operating expenses

 

 

97,100

 

 

 

111,595

 

Franchise expenses

 

 

2,795

 

 

 

3,274

 

General and administrative expenses

 

 

42,191

 

 

 

43,062

 

Art and development costs

 

 

4,257

 

 

 

5,927

 

Development stage expenses

 

 

 

 

 

2,728

 

Store impairment and restructuring charges

 

 

1,926

 

 

 

2,574

 

Goodwill, intangibles and long-lived assets impairment

 

 

44,732

 

 

 

259,100

 

Total expenses

 

 

560,874

 

 

 

817,757

 

(Loss) from operations

 

 

(27,099

)

 

 

(277,526

)

Interest expense, net

 

 

13,422

 

 

 

29,424

 

Other (income) expense, net

 

 

(2,873

)

 

 

2,047

 

(Gain) on debt refinancing

 

 

(273,149

)

 

 

 

Income (loss) before income taxes

 

 

235,501

 

 

 

(308,997

)

Income tax (benefit)

 

 

(4,164

)

 

 

(27,252

)

Net income (loss)

 

 

239,665

 

 

 

(281,745

)

Less: Net (loss) attributable to noncontrolling interests

 

 

(42

)

 

 

(212

)

Net income (loss) attributable to common shareholders of Party City Holdco Inc.

 

$

239,707

 

 

$

(281,533

)

Net income (loss) per share attributable to common shareholders of Party City Holdco Inc.–Basic

 

$

2.25

 

 

$

(3.02

)

Net income (loss) per share attributable to common shareholders of Party City Holdco Inc.–Diluted

 

$

2.24

 

 

$

(3.02

)

Weighted-average number of common shares-Basic

 

 

106,709,307

 

 

 

93,346,448

 

Weighted-average number of common shares-Diluted

 

 

106,875,631

 

 

 

93,346,448

 

Dividends declared per share

 

$

 

 

$

 

Comprehensive income (loss)

 

$

244,607

 

 

$

(288,573

)

Less: Comprehensive (loss) attributable to noncontrolling interests

 

 

(42

)

 

 

(213

)

Comprehensive income (loss) attributable to common shareholders of Party City Holdco Inc.

 

$

244,649

 

 

$

(288,360

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

4


 

PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

Net sales

 

$

1,198,160

 

 

$

1,611,149

 

Royalties and franchise fees

 

 

4,349

 

 

 

6,089

 

Total revenues

 

 

1,202,509

 

 

 

1,617,238

 

Cost of sales

 

 

890,587

 

 

 

1,065,511

 

Wholesale selling expenses

 

 

37,115

 

 

 

50,929

 

Retail operating expenses

 

 

250,502

 

 

 

302,756

 

Franchise expenses

 

 

9,225

 

 

 

9,813

 

General and administrative expenses

 

 

162,118

 

 

 

126,497

 

Art and development costs

 

 

13,095

 

 

 

17,568

 

Development stage expenses

 

 

2,932

 

 

 

7,966

 

(Gain) on sale/leaseback transaction

 

 

 

 

 

(58,381

)

Store impairment and restructuring charges

 

 

20,818

 

 

 

25,817

 

Goodwill, intangibles and long-lived assets impairment

 

 

581,380

 

 

 

259,100

 

Total expense

 

 

1,967,772

 

 

 

1,807,576

 

(Loss) from operations

 

 

(765,263

)

 

 

(190,338

)

Interest expense, net

 

 

63,954

 

 

 

88,857

 

Other expense, net

 

 

4,287

 

 

 

6,643

 

(Gain) on debt refinancing

 

 

(273,149

)

 

 

 

(Loss) before income taxes

 

 

(560,355

)

 

 

(285,838

)

Income tax (benefit)

 

 

(128,293

)

 

 

(21,809

)

Net (loss)

 

 

(432,062

)

 

 

(264,029

)

Less: Net (loss) attributable to noncontrolling interests

 

 

(241

)

 

 

(352

)

Net (loss) attributable to common shareholders of Party City Holdco Inc.

 

$

(431,821

)

 

$

(263,677

)

Net (loss) per share attributable to common shareholders of Party City Holdco

   Inc.–Basic

 

$

(4.41

)

 

$

(2.83

)

Net (loss) per share attributable to common shareholders of Party City Holdco

   Inc.–Diluted

 

$

(4.41

)

 

$

(2.83

)

Weighted-average number of common shares-Basic

 

 

97,872,174

 

 

 

93,271,392

 

Weighted-average number of common shares-Diluted

 

 

97,872,174

 

 

 

93,271,392

 

Dividends declared per share

 

$

 

 

$

 

Comprehensive (loss)

 

$

(435,235

)

 

$

(266,883

)

Less: Comprehensive (loss) attributable to noncontrolling interests

 

 

(241

)

 

 

(364

)

Comprehensive (loss) attributable to common shareholders of Party City Holdco Inc.

 

$

(434,994

)

 

$

(266,519

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


 

PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands)

 

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total Party City

Holdco Inc.

Stockholders’

Equity Before

Common Stock

Held In Treasury

 

 

Common

Stock Held

In Treasury

 

 

Total Party City

Holdco Inc.

Stockholders’

Equity

 

 

Non-

Controlling

Interests

 

 

Total

Stockholders’

Equity

 

Balance at June 30, 2020

 

$

1,211

 

 

$

941,745

 

 

$

(708,747

)

 

$

(43,849

)

 

$

190,360

 

 

$

(327,170

)

 

$

(136,810

)

 

$

(206

)

 

$

(137,016

)

Net income (loss)

 

 

 

 

 

 

 

 

239,707

 

 

 

 

 

 

239,707

 

 

 

 

 

 

239,707

 

 

 

(42

)

 

 

239,665

 

Stock option

   expense – time – based

 

 

 

 

 

111

 

 

 

 

 

 

 

 

 

111

 

 

 

 

 

 

111

 

 

 

 

 

 

111

 

Restricted stock units – time-based

 

 

 

 

 

429

 

 

 

 

 

 

 

 

 

429

 

 

 

 

 

 

429

 

 

 

 

 

 

429

 

Restricted stock unit expense – performance-based

 

 

 

 

 

481

 

 

 

 

 

 

 

 

 

481

 

 

 

 

 

 

481

 

 

 

 

 

 

481

 

Acquired non-controlling interest

 

 

 

 

 

(202

)

 

 

 

 

 

 

 

 

(202

)

 

 

 

 

 

(202

)

 

 

(16

)

 

 

(218

)

Issuance of Stock for New Debt

 

 

160

 

 

 

27,581

 

 

 

 

 

 

 

 

 

27,741

 

 

 

 

 

 

27,741

 

 

 

 

 

 

27,741

 

Foreign currency adjustments

 

 

 

 

 

 

 

 

 

 

 

5,076

 

 

 

5,076

 

 

 

 

 

 

5,076

 

 

 

 

 

 

5,076

 

Impact of foreign exchange

   contracts, net

 

 

 

 

 

 

 

 

 

 

 

(134

)

 

 

(134

)

 

 

 

 

 

(134

)

 

 

 

 

 

(134

)

Balance at September 30, 2020

 

$

1,371

 

 

$

970,145