- Party City (PRTY +12.6%) as Q1 earnings came in above expectations.
- Total revenues increased 3.1% Y/Y to $426.8M vs. consensus of $405.21M; Brand comparable sales up 35.9% Y/Y and increased 0.4% compared to 2019.
- Total Retail sales increased 10.0% on a reported and constant currency basis driven by a 49.3% comparable sales increase in core categories versus last year, partially offset by the divestiture of the international retail business and timing of New Year’s Eve.
- Net third-party Wholesale revenues decreased 15.8% on a reported basis or 16.8% in constant currency, driven predominately by the divestiture of a significant portion of our international operations.
- GAAP net loss was $14.1M or a loss of $0.13 per diluted share versus a net Loss of $5.80 in Q1 2020.
- Adjusted net loss was $5.4M, or a loss of $0.05 per diluted share, compared to adjusted net loss of $26.4M, or a loss of $0.28 per share, in the first quarter of 2020.
- Adjusted EBITDA of $32.4 million vs $11.9 million in Q1 2020.
- Cash from operations improved $25.2M versus Q1 2020 to $48.8M.
- Total gross profit margin increased 735 basis points to 35.7% of net sales.
- As of the end of the first quarter 2021, the Company had $83.8M in cash and ~ $129.3M of availability under the ABL Facility, for total liquidity of $213.1M.
- Free cash flow of $10.2M compared to $1.1M in the prior-year period, driven by higher adjusted EBITDA, partially offset by higher capital expenditures.
- Corporate store count of 751 as of March 31, 2021 compared to 757 in the prior year period.
- Brad Weston, CEO, stated, “We delivered continued strong core category performance and better than expected results in seasonal categories in the first quarter, fueling top and bottom line performance that exceeded expectations. Despite operating in a pandemic impacted environment with fewer in-person celebrations, brand comparable sales increased 0.4% versus 2019."
- FQ2 2021 outlook: Total revenue of $475M to $490M vs. consensus of $382.71M; Brand comparable sales increase of 92% to 97% compared to second quarter 2020; Brand comparable sales increase of mid to high single digits compared to second quarter 2019; GAAP net income of $10 to $20 million with an assumed Q2 tax rate of 27% and Adjusted EBITDA of $60 to $70 million.
- Previously (May.10), Party City EPS beats by $0.13, beats on revenue; provides outlook.