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 2021-03-31 Filed 2021-05-10
10-K 2020-12-31 Filed 2021-03-12
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 - Disposition of Assets
Note 6 - Inventories
Note 7 - Income Taxes
Note 8 - Changes in Accumulated Other Comprehensive Income (Loss)
Note 9 - Capital Stock
Note 10 - Segment Information
Note 11 - Commitments and Contingencies
Note 12 - Derivative Financial Instruments
Note 13 - Fair Value Measurements
Note 14 - Earnings per Share
Note 15 - Current and Long - Term Obligations
Note 16 - Revenue From Contracts with Customers
Note 17 - 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_9.htm
EX-31.2 prty-ex312_8.htm
EX-32.1 prty-ex321_7.htm
EX-32.2 prty-ex322_6.htm

Party City Earnings 2021-03-31

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_20210331.htm
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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 March 31, 2021

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 April 28, 2021, 111,296,696 shares of the Registrant’s common stock were outstanding.

 

 

 

 


 

PARTY CITY HOLDCO INC.

Form 10-Q

March 31, 2021

TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I

 

 

 

 

 

Item 1. Condensed Consolidated Financial Statements (Unaudited)

 

 

 

 

 

Condensed Consolidated Balance Sheets at March 31, 2021, December 31, 2020 and March 31, 2020

 

3

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2021 and March 31, 2020

 

4

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2021 and March 31, 2020

 

5

 

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and March 31, 2020  

 

6

 

 

 

Notes to Condensed Consolidated Financial Statements

 

7

 

 

 

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

 

17

 

 

 

Item  3. Quantitative and Qualitative Disclosures about Market Risk

 

28

 

 

 

Item 4. Controls and Procedures

 

28

 

 

 

PART II

 

 

 

 

 

Item 1. Legal Proceedings

 

29

 

 

 

Item 1A. Risk Factors

 

29

 

 

 

Item 6. Exhibits

 

30

 

 

 

Signature

 

31

 

2


 

PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

March 31,

2020

 

 

 

(Note 2)

(Unaudited)

 

 

(Note 2)

 

 

(Note 2)

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

83,806

 

 

$

119,532

 

 

$

194,433

 

Accounts receivable, net

 

 

81,658

 

 

 

90,879

 

 

 

116,223

 

Inventories, net

 

 

428,316

 

 

 

412,285

 

 

 

629,875

 

Prepaid expenses and other current assets

 

 

47,803

 

 

 

45,905

 

 

 

76,698

 

Income tax receivable

 

 

68,632

 

 

 

57,549

 

 

 

 

Assets held for sale, net

 

 

 

 

 

83,110

 

 

 

 

Total current assets

 

 

710,215

 

 

 

809,260

 

 

 

1,017,229

 

Property, plant and equipment, net

 

 

214,698

 

 

 

209,412

 

 

 

235,577

 

Operating lease asset

 

 

687,214

 

 

 

700,087

 

 

 

773,775

 

Goodwill

 

 

659,865

 

 

 

661,251

 

 

 

665,129

 

Trade names

 

 

383,733

 

 

 

384,428

 

 

 

394,221

 

Other intangible assets, net

 

 

29,912

 

 

 

32,134

 

 

 

41,960

 

Other assets, net

 

 

9,832

 

 

 

9,883

 

 

 

6,904

 

Total assets

 

$

2,695,469

 

 

$

2,806,455

 

 

$

3,134,795

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Loans and notes payable

 

$

142,859

 

 

$

175,707

 

 

$

381,422

 

Accounts payable

 

 

127,812

 

 

 

118,928

 

 

 

96,383

 

Accrued expenses

 

 

146,742

 

 

 

160,605

 

 

 

154,847

 

Liabilities held for sale

 

 

 

 

 

68,492

 

 

 

 

Current portion of operating lease liability

 

 

150,860

 

 

 

176,045

 

 

 

153,614

 

Income taxes payable

 

 

 

 

 

524

 

 

 

 

Current portion of long-term obligations

 

 

1,359

 

 

 

13,576

 

 

 

98,588

 

Total current liabilities

 

 

569,632

 

 

 

713,877

 

 

 

884,854

 

Long-term obligations, excluding current portion

 

 

1,358,495

 

 

 

1,329,808

 

 

 

1,474,854

 

Long-term portion of operating lease liability

 

 

628,217

 

 

 

654,729

 

 

 

707,734

 

Deferred income tax liabilities, net

 

 

31,036

 

 

 

34,705

 

 

 

70,943

 

Other long-term liabilities

 

 

33,195

 

 

 

22,815

 

 

 

16,036

 

Total liabilities

 

 

2,620,575

 

 

 

2,755,934

 

 

 

3,154,421

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock (111,258,890, 110,781,613 and 94,491,352 shares outstanding and 122,573,377, 122,061,711 and 121,708,422 shares issued at March 31, 2021, December 31, 2020, March 31, 2020 respectively)

 

 

1,383

 

 

 

1,373

 

 

 

1,211

 

Additional paid-in capital

 

 

976,037

 

 

 

971,972

 

 

 

933,174

 

Accumulated deficit

 

 

(579,486

)

 

 

(565,457

)

 

 

(578,732

)

Accumulated other comprehensive income (loss)

 

 

5,134

 

 

 

(29,916

)

 

 

(47,947

)

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

   treasury

 

 

403,068

 

 

 

377,972

 

 

 

307,706

 

Less: Common stock held in treasury, at cost (11,314,487, 11,280,098 and 27,217,070 shares at March 31, 2021, December 31, 2020, March 31, 2020, respectively)

 

 

(327,388

)

 

 

(327,182

)

 

 

(327,170

)

Total Party City Holdco Inc. stockholders’ equity

 

 

75,680

 

 

 

50,790

 

 

 

(19,464

)

Noncontrolling interests

 

 

(786

)

 

 

(269

)

 

 

(162

)

Total stockholders’ equity

 

 

74,894

 

 

 

50,521

 

 

 

(19,626

)

Total liabilities and stockholders’ equity

 

$

2,695,469

 

 

$

2,806,455

 

 

$

3,134,795

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

3


PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Net sales*

 

$

426,807

 

 

$

414,043

 

Cost of sales

 

 

274,521

 

 

 

296,757

 

Gross Profit

 

 

152,286

 

 

 

117,286

 

Wholesale selling expenses

 

 

9,116

 

 

 

15,458

 

Retail operating expenses

 

 

88,896

 

 

 

88,166

 

General and administrative expenses

 

 

46,038

 

 

 

65,334

 

Art and development costs

 

 

4,971

 

 

 

5,322

 

Store impairment and restructuring charges

 

 

 

 

 

17,728

 

Loss on disposal of assets in international operations

 

 

3,211

 

 

 

 

Goodwill, intangibles and long-lived assets impairment

 

 

 

 

 

536,648

 

Income (loss) from operations

 

 

54

 

 

 

(611,370

)

Interest expense, net

 

 

17,214

 

 

 

25,120

 

Other expense, net

 

 

427

 

 

 

5,676

 

(Loss) before income taxes

 

 

(17,587

)

 

 

(642,166

)

Income tax (benefit)

 

 

(3,469

)

 

 

(100,498

)

Net (loss)

 

 

(14,118

)

 

 

(541,668

)

Less: Net (loss) attributable to noncontrolling interests

 

 

(54

)

 

 

(155

)

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

 

$

(14,064

)

 

$

(541,513

)

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

   Inc.–Basic

 

$

(0.13

)

 

$

(5.80

)

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

   Inc.–Diluted

 

$

(0.13

)

 

$

(5.80

)

Weighted-average number of common shares-Basic

 

 

110,917,349

 

 

 

93,395,609

 

Weighted-average number of common shares-Diluted

 

 

110,917,349

 

 

 

93,395,609

 

Dividends declared per share

 

$

 

 

$

 

Comprehensive income (loss)

 

$

20,937

 

 

$

(553,881

)

Less: Comprehensive (loss) attributable to noncontrolling interests

 

 

(84

)

 

 

(155

)

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

 

$

21,021

 

 

$

(553,726

)

 

*Includes royalties and franchise fees. Prior year amounts conformed to current year presentation.

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

4


 

PARTY CITY HOLDCO INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands)

 

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Accumulated

Other

Comprehensive Income

(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 December 31, 2020

 

$

1,373

 

 

$

971,972

 

 

$

(565,457

)

 

$

(29,916

)

 

$

377,972

 

 

$

(327,182

)

 

$

50,790

 

 

$

(269

)

 

$

50,521

 

Net loss

 

 

 

 

 

 

 

 

(14,064

)

 

 

 

 

 

(14,064

)

 

 

 

 

 

(14,064

)

 

 

(54

)

 

 

(14,118

)

Stock option expense – time – based

 

 

 

 

 

113

 

 

 

 

 

 

 

 

 

113

 

 

 

 

 

 

113

 

 

 

 

 

 

113

 

Restricted stock units – time – based

 

 

 

 

 

352

 

 

 

 

 

 

 

 

 

352

 

 

 

 

 

 

352

 

 

 

 

 

 

352

 

Restricted stock unit expense – performance-based

 

 

 

 

 

708

 

 

 

 

 

 

 

 

 

708

 

 

 

 

 

 

708

 

 

 

 

 

 

708

 

Director – non-cash compensation

 

 

 

 

 

57

 

 

 

 

 

 

 

 

 

57

 

 

 

 

 

 

57

 

 

 

 

 

 

57

 

Warrant exercise (see Note 17 –

   Kazzam, LLC)

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposed non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(487

)

 

 

(487

)

Treasury stock purchases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(206

)

 

 

(206

)

 

 

 

 

 

(206

)

Exercise of stock options

 

 

6

 

 

 

2,849

 

 

 

 

 

 

 

 

 

2,855

 

 

 

 

 

 

2,855

 

 

 

 

 

 

2,855

 

Foreign currency adjustments

 

 

 

 

 

(10

)

 

 

35

 

 

 

36,398

 

 

 

36,423

 

 

 

 

 

 

36,423

 

 

 

24

 

 

 

36,447

 

Impact of foreign exchange

   contracts, net

 

 

 

 

 

 

 

 

 

 

 

(1,348

)

 

 

(1,348

)

 

 

 

 

 

(1,348

)

 

 

 

 

 

(1,348

)

Balance at March 31, 2021

 

$

1,383

 

 

$

976,037

 

 

$

(579,486

)

 

$

5,134

 

 

$

403,068

 

 

$

(327,388

)

 

$

75,680

 

 

$

(786

)

 

$

74,894

 

 

 

 

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 December 31, 2019

 

$

1,211

 

 

$

928,573

 

 

$

(37,219

)

 

$

(35,734

)

 

$

856,831

 

 

$

(327,086

)

 

$

529,745

 

 

$

(24

)

 

$

529,721

 

Net (loss)

 

 

 

 

 

 

 

 

(541,513

)

 

 

 

 

 

(541,513

)

 

 

 

 

 

(541,513

)

 

 

(155

)

 

 

(541,668

)

Stock option expense

 

 

 

 

 

354

 

 

 

 

 

 

 

 

 

354

 

 

 

 

 

 

354

 

 

 

 

 

 

354

 

Restricted stock units – time-based

 

 

 

 

 

621

 

 

 

 

 

 

 

 

 

621

 

 

 

 

 

 

621

 

 

 

 

 

 

621

 

Director – non-cash compensation

 

 

 

 

 

75

 

 

 

 

 

 

 

 

 

75

 

 

 

 

 

 

75

 

 

 

 

 

 

75

 

Warrant expense

 

 

 

 

 

1,033

 

 

 

 

 

 

 

 

 

1,033

 

 

 

 

 

 

1,033

 

 

 

 

 

 

1,033

 

Acquired non-controlling interest

 

 

 

 

 

2,518

 

 

 

 

 

 

 

 

 

2,518

 

 

 

 

 

 

2,518

 

 

 

17

 

 

 

2,535

 

Treasury Stock purchases