Party City Holdings Inc.

CIK:0001340554|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Net sales	$ 491,206	$ 487,182	$ 949,401	$ 916,402
Royalties and franchise fees	4,314	4,392	8,224	8,159
Total revenues	495,520	491,574	957,625	924,561
Expenses:
Cost of sales	302,863	304,518	597,137	578,899
Wholesale selling expenses	16,235	18,438	33,360	36,626
Retail operating expenses	85,229	85,667	165,543	165,953
Franchise expenses	3,530	3,431	6,989	6,796
General and administrative expenses	36,417	34,362	74,069	70,455
Art and development costs	5,179	4,853	10,456	9,624
Total expenses	449,453	451,269	887,554	868,353
Income from operations	46,067	40,305	70,071	56,208
Interest expense, net	30,408	30,331	60,738	61,600
Other expense (income), net	33,214	(2,098)	31,793	4,551
(Loss) income before income taxes	(17,555)	12,072	(22,460)	(9,943)
Income tax (benefit) expense	(5,992)	4,483	(7,379)	(2,746)
Net (loss) income	(11,563)	7,589	(15,081)	(7,197)
Comprehensive (loss) income	$ (4,844)	$ 12,255	$ (20,689)	$ (3,164)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows (used in) provided by operating activities:
Net loss	$ (15,081)	$ (7,197)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization expense	39,801	40,851
Amortization of deferred financing costs and original issuance discount	5,182	8,289
Provision for doubtful accounts	24	587
Deferred income tax benefit	(3,151)	(6,371)
Deferred rent	4,101	6,562
Undistributed loss in unconsolidated joint venture	35	472
(Gain) loss on sale of assets	(2,589)	2,315
Equity based compensation	1,124	791
Changes in operating assets and liabilities, net of effects of acquired businesses:
Decrease in accounts receivable	25,088	14,336
Increase in inventories	(44,090)	(97,847)
(Increase) decrease in prepaid expenses and other current assets	(7,428)	553
(Decrease) increase in accounts payable, accrued expenses and income taxes payable	(37,235)	44,266
Net cash (used in) provided by operating activities	(34,219)	7,607
Cash flows used in investing activities:
Cash paid in connection with acquisitions, net of cash acquired	(8,258)	(2,152)
Capital expenditures	(31,889)	(33,055)
Proceeds from disposal of property and equipment	601	947
Net cash used in investing activities	(39,546)	(34,260)
Cash flows used in financing activities:
Repayment of loans, notes payable and long-term obligations	(81,263)	(1,191,656)
Proceeds from loans, notes payable and long-term obligations	133,100	1,240,735
Cash held in escrow in connection with acquisitions	(3,832)	0
Capital contributions	37,008	0
Distribution to Parent	(15,313)	(16,503)
Exercise of stock options	0	1,062
Debt issuance costs	0	(148)
Net cash provided by financing activities	69,700	33,490
Effect of exchange rate changes on cash and cash equivalents	(275)	145
Net (decrease) increase in cash and cash equivalents	(4,340)	6,982
Cash and cash equivalents at beginning of period	47,151	25,487
Cash and cash equivalents at end of period	42,811	32,469
Cash paid during the period
Interest	55,720	58,367
Income taxes, net of refunds	$ 33,759	$ 15,835

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 42,811		$ 47,151	$ 32,469		$ 25,487
Accounts receivable, net	116,739		140,663
Inventories, net	625,691		582,230
Prepaid expenses and other current assets	97,358		75,403
Total current assets	882,599		845,447
Property, plant and equipment, net	248,701		248,684
Goodwill	1,565,622		1,557,250
Trade names	569,500		569,343
Other intangible assets, net	97,371		107,010
Other assets, net	48,277		46,659
Total assets	3,412,070		3,374,393
Current liabilities:
Loans and notes payable	83,223		25,336
Accounts payable	154,579		145,686
Accrued expenses	149,112		154,113
Income taxes payable	0		34,670
Current portion of long-term obligations	12,143		12,249
Total current liabilities	399,057		372,054
Long-term obligations, excluding current portion	1,775,450		1,780,267
Deferred income tax liabilities	311,616		314,197
Deferred rent and other long-term liabilities	72,132		56,190
Total liabilities	2,558,255		2,522,708
Redeemable common securities	$ 0		$ 35,062
Commitments and contingencies
Stockholder's equity:
Common stock (100.00 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively)	$ 0		$ 0
Additional paid-in capital	824,856		751,662
Retained earnings	47,302		77,696
Accumulated other comprehensive loss	(18,343)	$ (25,062)	(12,735)	$ 9,441	$ 4,775	$ 5,408
Total stockholder's equity	853,815		816,623
Total liabilities, redeemable common securities and stockholder's equity	$ 3,412,070		$ 3,374,393