Party City Holdco Posts Q2 Loss - Quick Facts

(RTTNews) - Party City Holdco Inc. (PRTY) reported a second-quarter net loss of $23.05 million or $0.20 per share, compared to net income of $2.46 million or $0.03 per share, prior year. Adjusted EBITDA increased 8.2% to $75.0 million compared to $69.3 million in the second quarter of fiscal 2014. Adjusted net income per share was $0.12, for the quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.12 for the quarter. Analysts' estimates typically exclude special items.

Total revenues were $495.5 million, an increase of 0.8% compared to the second quarter of fiscal 2014. Analysts expected revenue of $507.75 million for the quarter.

Brand comparable sales increased by 1.2% and were impacted by the shift of the Easter selling season into the first quarter, which reduced brand comparable sales growth by approximately 150 basis points, as well as lighter traffic in June. Brand comparable sales were up 2.7% after adjusting for Easter shift.

The company continues to expect fiscal 2015 total revenue of $2.25 to $2.35 billion, and slightly lowered the outlook for brand comparable sales generally in the range of 3%. Adjusted EBITDA guidance is unchanged in the range of $375 to $390 million, adjusted net income expectations are increased to the range of $112 to $122 million, and adjusted net income per share is increased to be $0.98 to $1.07. Analysts expect the company to report earnings per share of $1.05 on revenue of $2.35 billion.

Party City has signed an agreement to acquire the assets of Accurate Custom Injection Molding Inc., a custom injection molded plastics manufacturer, and the transaction is expected to close in the next few weeks. The acquisition price for the business and production assets is approximately $5.2 million.