Party City Holdco Inc.

CIK:0001592058|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 407,148	$ 502,191	$ 1,295,120	$ 1,462,616
Cost of sales	292,421	343,743	915,704	988,188
Gross profit	114,727	158,448	379,416	474,428
Selling , general and administrative expense	153,171	178,551	468,674	493,934
(Gain) loss on sale of business	(186)	0	14,276	0
Store and other long-lived asset impairments	16,220	425	58,811	10,408
Goodwill and intangible asset impairments	0	288,423	0	288,423
Loss from operations	(54,478)	(308,951)	(162,345)	(318,337)
Interest expense, net (excludes contractual interest of $32,185 and $78,909 for the three and nine months ended September 30, 2023, respectively)	9,875	26,926	30,946	74,505
Other (income), net	(1,312)	(2,333)	(2,889)	(4,336)
Reorganization items, net	27,776	0	85,264	0
Loss before income taxes	(90,817)	(333,544)	(275,666)	(388,506)
Income tax expense (benefit)	155	187,754	443	(2,492)
Net loss	$ (90,972)	$ (521,298)	$ (276,109)	$ (386,014)
Net loss per share - basic	$ (0.8)	$ (4.6)	$ (2.43)	$ (3.42)
Net loss per share - diluted	$ (0.8)	$ (4.6)	$ (2.43)	$ (3.42)
Weighted-average number of common shares-Basic	113,749,466	113,214,670	113,721,955	112,751,523
Weighted-average number of common shares-Diluted	113,749,466	113,214,670	113,721,955	112,751,523
Comprehensive loss	$ (92,805)	$ (523,649)	$ (276,038)	$ (388,759)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows (used in) provided by operating activities:
Net loss	$ (276,109)	$ (386,014)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	43,359	46,812
Non-cash reorganization items, net	438	0
Amortization of deferred financing costs and original issuance discounts	1,288	3,969
Provision for doubtful accounts	(135)	282
Deferred income tax expense	(1,470)	(4,829)
Change in operating lease liability/asset	(12,364)	1,729
Undistributed income in equity method investments	(1,668)	(2,354)
Loss on sale of business	14,276	0
(Gain) loss on disposal of assets	(56)	201
Long-lived asset impairments	58,810	10,408
Goodwill and intangible asset impairments	0	288,423
Stock-based compensation	3,176	5,884
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	5,777	(13,250)
Decrease (increase) in inventories	23,355	(304,030)
(Increase) decrease in prepaid expenses and other current assets	(749)	52,878
Increase in accounts payable, accrued expenses and income taxes payable	61,056	13,490
Net cash used in operating activities	(81,016)	(286,401)
Cash flows used in investing activities:
Cash paid in connection with acquisitions, net of cash acquired	0	(157)
Capital expenditures	(19,317)	(75,985)
Proceeds from disposal of property and equipment	0	1,626
Proceeds from sale of business, net of cash relinquished	1,191	0
Net cash used in investing activities	(18,126)	(74,516)
Cash flows provided by financing activities:
Repayment of loans, notes payable and long-term obligations	(16,039)	(42,829)
Proceeds from loans, notes payable and long-term obligations	185,171	390,505
Adequate protection payments	(19,481)	0
Treasury stock purchases	(188)	(1,857)
Debt issuance costs	0	(2,868)
Net cash provided by financing activities	149,463	342,951
Effect of exchange rate changes on cash and cash equivalents	247	(138)
Net increase (decrease) in cash and cash equivalents and restricted cash	50,568	(18,104)
Cash and cash equivalents and restricted cash at beginning of period (a)	60,421	48,914
Cash and cash equivalents and restricted cash at end of period (a)	110,989	30,810
Supplemental disclosure of cash flow information:
Interest	(23,959)	(86,698)
Income taxes refunds, net	11,464	42,177
Reorganization items	$ (64,310)	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 109,989	$ 59,421	$ 29,810
Accounts receivable, net	70,956	83,157	106,052
Inventories, net	604,207	633,360	745,697
Prepaid expenses and other current assets	54,382	42,106	59,248
Income tax receivable	880	14,464	1,109
Total current assets	840,414	832,508	941,916
Property, plant and equipment, net	219,665	255,270	251,318
Operating lease asset	597,296	707,047	713,434
Goodwill	100,345	100,357	375,220
Trade names	94,680	94,680	383,749
Other intangible assets, net	11,091	13,304	19,524
Other assets, net	16,899	16,831	28,664
Total assets	1,880,390	2,019,997	2,713,825
Current liabilities:
Loans and notes payable	7,663	360,745	442,855
Debtor-in-possession facility	138,791	0	0
Accounts payable	72,095	157,474	208,416
Accrued expenses	195,521	181,466	175,275
Current portion of operating lease liability	1,510	119,605	100,274
Income taxes payable	0	426	1,006
Current portion of long-term obligations	291,195	1,331,003	23,388
Total current liabilities		2,150,719	951,214
Long-term obligations, excluding current portion	0	11,134	1,318,185
Long-term portion of operating lease liability	21,101	685,120	699,933
Deferred income tax liabilities, net	7,586	9,128	24,369
Other long-term liabilities	92	21,723	22,142
Total long-term liabilities	28,779	727,105	2,064,629
Liabilities subject to compromise	2,275,713	0	0
Total liabilities	3,011,267	2,877,824	3,015,843
Commitments and contingencies
Stockholders’ equity:
Common stock ( Par Value $0.01; 113,756,825, 113,509,223 and 113,316,286 shares outstanding and 126,050,886, 126,787,094 and 126,050,880 shares issued at September 30, 2023, December 31, 2022, and September 30, 2022, respectively)	1,385	1,385	1,384
Additional paid-in capital	991,639	988,463	988,197
Accumulated deficit	(1,790,724)	(1,514,615)	(957,999)
Accumulated other comprehensive income	1,926	1,855	790
Total stockholders' deficit before common stock held in treasury	(795,774)	(522,912)	32,372
Less: Common stock held in treasury, at cost (14,154,061, 13,277,871 and 12,734,594 shares at September 30, 2023, December 31, 2022, and September 30, 2022, respectively)	(335,103)	(334,915)	(334,390)
Total stockholders' (deficit) equity	(1,130,877)	(857,827)	(302,018)
Total liabilities and stockholders' (deficit) equity	$ 1,880,390	$ 2,019,997	$ 2,713,825