PRTY Party City Holdco Inc

Party City Holdco Inc. (NYSE: PRTY) today announced its financial results for the quarter ended September 30, 2016 and brand comparable sales for fiscal October 2016.

For the quarter ended September 30, 2016 the Company reported total revenues of $557 million, up 0.3% from the prior year period or up 1.7% on a constant currency basis. Income from operations increased 17.3% to $36.9 million and adjusted EBITDA (see "Non-GAAP Information") increased 13.4% to $66.0 million. Reported GAAP diluted earnings per share increased to $0.08 from a loss of $0.37 in the third quarter of fiscal 2015. Adjusted diluted net income per share increased to $0.12 from $0.10 in the third quarter of fiscal 2015 (see "Non-GAAP Information").

For the five-week period ended November 5, 2016 (fiscal October, which comprises the majority of Halloween sales), the Company reported retail sales of $399.4 million, a 7.0% decrease from the same period in 2015. Brand comparable sales, which include Company-owned Party City stores in the US and Canada and North American e-commerce operations, decreased 6.4%.

During the Halloween season, the Company operated 270 temporary Halloween City stores, compared to 335 in 2015, with the reduction in temporary stores a result of the shift from a Saturday Halloween last year to a Monday Halloween this year.

“We are pleased with our third quarter results, which demonstrate the competitive advantages of our unique, vertical model,” said James M. Harrison, Chief Executive Officer. “While a portion of the third quarter was impacted by a softer Halloween season, we continued to see strong gains in our everyday categories, which delivered brand comparable sales growth of almost 4%. In addition, in our international markets, in constant currency, we grew total revenue over 12%.”

Mr. Harrison added: “With respect to the month of October, the two day Halloween shift from Saturday to Monday this year, as well as the backdrop of a more distracted consumer, resulted in the negative Halloween brand comp, as we saw less overall participation on the adult side of the business. The good news is that our juvenile Halloween business was essentially flat, and our everyday business remained strong in the month, with comp sales growth of around 4%. As we finish the year, while we are well positioned to remain the top of mind choice for the holiday entertaining season, leveraging our full assortment of products and our omni-channel strategy, we are updating our outlook to reflect our year-to-date performance. ”

Highlights for the third quarter:

• Total revenues of $557 million increased 0.3% on a reported basis or 1.7% on a constant currency basis.
  • Retail sales increased 2.4% on a reported basis (2.7% on a constant currency basis) driven by higher brand comparable sales and 33 net new Party City stores added in the past twelve months.
  • Brand comparable sales increased 1.2% in the third quarter of 2016.
  • Net third-party wholesale revenues decreased 2.9% on a reported basis (increased 0.5% on a constant currency basis) principally due to the impact of the acquisition of 23 franchise stores in December 2015 / January 2016 (which resulted in the elimination of $6 million of previously reported third party sales). When adjusting for both the negative currency impact and the effect of the acquired franchise stores, net third-party wholesale revenues increased 3.4%.

• Total gross profit margin increased 110 basis points to 35.5% of net sales, primarily due to higher share of shelf, less promotional activity in our stores and lower product costs.
• Wholesale share of shelf (the percentage of retail product cost of sales supplied by our wholesale operations) increased to 75.1% from 73.5% in the prior year quarter.
• Operating expenses were essentially flat as a percentage of revenues, and increased $1.0 million over the third quarter of 2015 to $163.4 million. Retail operating expenses declined 1.6% due in part to improved labor efficiency in our stores, while general and administrative expenses climbed 8.3% principally driven by inflationary pressures and higher professional fees associated with Sarbanes-Oxley compliance.
• Reported net income improved to $10.2 million compared to a loss of $44.5 million in the third quarter of fiscal 2015. The third quarter of fiscal 2015 included one-time charges associated with the Company’s debt refinancing (see GAAP to Non-GAAP reconciliation table at the end of this release for detail).
• Adjusted EBITDA increased 13.4% to $66.0 million compared to $58.2 million in the third quarter of fiscal 2015.
• Adjusted net income improved to $14.0 million, compared to $11.9 million for the third quarter of fiscal 2015. The current quarter net income benefited from interest savings resulting from our refinancing during 2015.
• Reported earnings per share improved to $0.08 from a loss of $0.37. Adjusted diluted income per share improved to $0.12 compared to $0.10 in the third quarter of fiscal 2015.
• During the quarter, the Company opened eight new stores and closed one store. At September 30, 2016, there were 737 corporate stores and 184 franchise stores for a total store count of 921, as compared to 704 corporate stores and 204 franchise stores for a total store count of 908 at September 30, 2015.

Balance sheet highlights as of September 30, 2016:

The Company ended the third quarter with $1,813 million in debt (net of cash) resulting in net debt leverage of 4.6 times and approximately $405 million in availability under its asset-based revolving credit facility.

Subsequent to the end of the third quarter, during October 2016, the Company amended its Term Loan Credit Agreement. The applicable margin for ABR borrowings under the Term Loan Credit Agreement was lowered from 2.25% to 2.00% and the applicable margin for LIBOR borrowings was lowered from 3.25% to 3.00%. Additionally, the LIBOR floor was lowered. In conjunction with the execution of the amendment, the Company borrowed $100 million under its ABL Facility and used the proceeds to make a voluntary prepayment of a portion of the outstanding balance under the Term Loan Credit Agreement.

Fiscal 2016 Outlook:

The Company is adjusting its 2016 outlook. For 2016, Party City anticipates results as follows:

• Total revenue of $2.25 to $2.30 billion
• Brand comparable sales to be flat to down 25bps
• GAAP net income of $110 to $120 million
• GAAP diluted EPS of $0.91 to $1.00
• Adjusted EBITDA of $380 to $390 million
• Adjusted net income of $130 to $140 million
• Adjusted diluted EPS of $1.08 to $1.16
• Net debt leverage approximately 4.2 times by the end of 2016

The Company has reconciled Non-GAAP outlook measures to the most directly comparable GAAP measures later in this release. See "Non-GAAP Information" and “Reconciliation of 2016 Outlook” for a more detailed explanation, including definitions of the various Non-GAAP terms used in this release.

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Conference Call Information:

A conference call to discuss third quarter fiscal 2016 financial results is scheduled for today, November 10, 2016, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 877-201-0168 (U.S. domestic) and 647-788-4901 (international), and enter conference ID#9980160, approximately 10 minutes prior to the start of the call. The conference call will also be webcast at http://investor.partycity.com/. To listen to the live call, please go to the website at least 15 minutes early to register and download any necessary audio software. The webcast will be accessible for one year after the call.

Website Information:

We routinely post important information for investors on the Investor Relations section of our website, http://investor.partycity.com/. We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Information:

This press release includes non-GAAP measures including Adjusted EBITDA and Adjusted Net Income/Loss and Adjusted Earnings per Share. We present these non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by eliminating items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA: (i) as a factor in determining incentive compensation, (ii) to evaluate the effectiveness of our business strategies and (iii) because our credit facilities use Adjusted EBITDA to measure compliance with certain covenants. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in tables accompanying this release. We also evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period exchange rates and comparing these adjusted amounts to our current period reported results. We also provide net debt leverage, which is calculated by adding Loans and Notes Payable, Current Portion of Long Term Obligations and Long Term Obligations, Excluding Current Portion, subtracting Cash and Cash Equivalents and dividing by Adjusted EBITDA for the trailing twelve month period. Adjusted Earnings per Share is calculated by dividing Adjusted Net Income by the Weighted Average Number of Common Shares-Diluted. We believe providing these non-GAAP measures provides valuable supplemental information regarding our results of operations and leverage, consistent with how we evaluate our performance. In evaluating these non-GAAP financial measures, investors should be aware that in the future the Company may incur expenses or be involved in transactions that are the same as or similar to some of the adjustments in this presentation. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided this information as a means to evaluate the results of its core operations. Other companies in the Company's industry may calculate these items differently than it does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

Forward-Looking Statements:

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Party City’s expectations regarding revenues, brand comparable sales, Adjusted EBITDA, Adjusted net income/loss, adjusted diluted earnings per share, average common shares outstanding and the effective tax rate. The forward-looking statements contained in this press release are based on management's good-faith belief and reasonable judgment based on current information, and these statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. These risks and uncertainties include: our ability to compete effectively in a competitive industry; fluctuations in commodity prices; our ability to appropriately respond to changing merchandise trends and consumer preferences; successful implementation of our store growth strategy; decreases in our Halloween sales; disruption to the transportation system or increases in transportation costs; product recalls or product liability; economic slowdown affecting consumer spending and general economic conditions; loss or actions of third party vendors and loss of the right to use licensed material; disruptions at our manufacturing facilities; and the additional risks and uncertainties set forth in “Risk Factors” in Party City’s latest Form 10-K and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward looking statements. Except as may be required by any applicable laws, Party City assumes no obligation to publicly update or revise such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.

About Party City

Party City Holdco Inc. (the “Company” or “Party City Holdco”) is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is the leading player in its category, vertically integrated and unique in its breadth and depth. Party City Holdco designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Company’s retail operations include over 900 specialty retail party supply stores (including approximately 180 franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.

    PARTY CITY HOLDCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)   September 30, December 31, 2016 2015 ASSETS Unaudited Current assets: Cash and cash equivalents $47,617 $42,919 Accounts receivable, net 177,943 132,287 Inventories, net 683,655 564,259 Prepaid expenses and other current assets 68,752 50,450 Total current assets 977,967 789,915 Property, plant and equipment, net 282,666 272,420 Goodwill 1,580,551 1,562,515 Trade names 567,142 568,712 Other intangible assets, net 76,933 89,157 Other assets, net 5,269 9,684 Total assets $3,490,528 $3,292,403     LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Loans and notes payable $208,056 $126,136 Accounts payable 189,278 111,616 Accrued expenses 162,853 146,319 Income taxes payable 48 8,504 Current portion of long-term obligations 14,235 14,552 Total current liabilities 574,470 407,127 Long-term obligations, excluding current portion 1,638,643 1,646,121 Deferred income tax liabilities 277,358 276,667 Deferred rent and other long-term liabilities 60,166 49,471 Total liabilities 2,550,637 2,379,386   Stockholders’ equity:

Common stock (119,498,654 and 119,258,374 shares issued and outstanding atSeptember 30, 2016 and December 31, 2015, respectively)

1,195 1,193 Additional paid-in capital 908,942 904,425 Retained earnings 72,490 40,189 Accumulated other comprehensive loss (42,736) (32,790)   Total stockholders’ equity 939,891 913,017 Total liabilities and stockholders’ equity $3,490,528 $3,292,403       PARTY CITY HOLDCO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except share and per share data) UNAUDITED   Three Months Ended September 30, Nine Months Ended September 30, 2016   2015 2016   2015   Revenues: Net sales $553,382 $551,380 $1,523,094 $1,500,781 Royalties and franchise fees 3,568 4,027 11,009 12,251 Total revenues 556,950 555,407 1,534,103 1,513,032   Expenses: Cost of sales 356,662 361,530 952,294 958,667 Wholesale selling expenses 14,739 15,465 45,854 48,825 Retail operating expenses 100,746 102,432 278,070 267,975 Franchise expenses 3,370 3,608 10,507 10,597 General and administrative expenses 38,972 35,979 115,828 110,048 Art and development costs 5,543 4,913 16,596 15,369 Total expenses 520,032 523,927 1,419,149 1,411,481 Income from operations 36,918 31,480 114,954 101,551   Interest expense, net 22,424 29,554 67,857 101,430 Other (income) expense, net (905) 79,130 (4,107) 126,519 Income (loss) before income taxes 15,399 (77,204) 51,204 (126,398) Income tax expense (benefit) 5,219 (32,715) 18,903 (50,334) Net income (loss) $10,180 ($44,489) $32,301 ($76,064)     Comprehensive income (loss) $6,028 ($55,797) $22,355 ($92,980)   Net income (loss) per common share-Basic $0.09 ($0.37) $0.27 ($0.69) Net income (loss) per common share-Diluted $0.08 ($0.37) $0.27 ($0.69) Weighted-average number of common shares-Basic 119,406,751 119,253,707 119,340,610 109,470,099 Weighted-average number of common shares-Diluted 120,472,297 119,253,707 120,312,492 109,470,099       PARTY CITY HOLDCO INC. RECONCILIATION OF ADJUSTED EBITDA (In thousands) UNAUDITED   Three Months Ended September 30, Nine Months Ended September 30, 2016   2015 2016   2015   Net income (loss) $10,180 ($44,489) $32,301 ($76,064) Interest expense, net 22,424 29,554 67,857 101,430 Income taxes 5,219 (32,715) 18,903 (50,334) Depreciation and amortization 20,015 19,766 61,186 59,567 EBITDA 57,838 (27,884) 180,247 34,599 Non-cash purchase accounting adjustments - 224 3,689 5,979 Management fee (a) - - - 31,627 Restructuring, retention and severance 92 166 254 2,311 Refinancing charges (b) - 79,011 - 94,607 Deferred rent (c) 7,095 5,479 12,240 9,580 Store closing expenses (d) 971 335 2,927 903 Foreign currency (gains) losses, net (1,767) (978) (6,945) 1,782 Equity based compensation 948 970 2,829 2,094 Undistributed non-cash loss in unconsolidated joint venture 113 342 380 377 Gain on sale of assets (e) - - - (2,660) Corporate development expenses (f) 683 414 1,895 1,543 Other 61 167 118 (51) Adjusted EBITDA $66,034 $58,246 $197,634 $182,691   Adjusted EBITDA margin 11.9% 10.5% 12.9% 12.1%   (a) In 2012, the Company entered into a management agreement with THL and Advent under which THL and Advent provided advice to the Company on, among other things, financing, operations, acquisitions and dispositions. Under the agreement, THL and Advent were paid an annual management fee for such services. In connection with the initial public offering, the management agreement was terminated and the Company paid THL and Advent a termination fee. Such amount was recorded in other expense, net in the Company’s condensed consolidated statement of operations and comprehensive loss for the nine months ended September 30, 2015.   (b) During the third quarter 2015, the Company refinanced its debt. In conjunction with the refinancing, the Company paid a call premium and other third-party costs. The Company recorded such payments, $56.4 million in aggregate, in other expense in the Company’s condensed consolidated statement of operations and comprehensive loss. Additionally, in conjunction with the refinancing, the Company wrote off $22.7 million of capitalized deferred financing costs, original issuance discounts and call premiums. During the second quarter 2015, the Company used proceeds from the initial public offering to redeem notes. The redemption resulted in a prepayment penalty of $7.0 million. Additionally, in conjunction with the redemption, the Company wrote off $8.6 million of capitalized debt issuance costs and original issuance discounts related to the notes.   (c) The deferred rent adjustment reflects the difference between accounting for rent and landlord incentives in accordance with GAAP and the Company’s actual cash outlay for such items.   (d) Charges incurred related to closing unprofitable stores.   (e) During January 2015, the Company recorded a gain on the sale of certain assets obtained in the October 2014 acquisition of U.S. Balloon Manufacturing Co., Inc.   (f) Third-party costs related to acquisitions (principally legal expenses).     PARTY CITY HOLDCO INC. RECONCILIATION OF ADJUSTED NET INCOME (In thousands) UNAUDITED   Three Months Ended September 30, Nine Months Ended September 30, 2016   2015 2016   2015   Income (loss) before income taxes $15,399 ($77,204) $51,204 ($126,398) Intangible asset amortization 4,049 4,700 12,182 14,216 Non-cash purchase accounting adjustments (c) (102) 955 4,991 8,430

Amortization of deferred financing costs and original issuance discount (b)

1,277 24,774 3,821 39,225 Management fee (a) - - - 31,627 Refinancing charges (b) - 58,338 - 65,338 Equity based compensation 948 970 2,829 2,094 Gain on sale of assets (d) - - - (2,660) Adjusted income before income taxes 21,571 12,533 75,027 31,872 Adjusted income tax expense (e) 7,568 623 27,918 8,645 Adjusted net income $14,003 $11,910 $47,109 $23,227   Adjusted net income per common share - diluted $0.12 $0.10 $0.39 $0.21   Weighted-average number of common shares-diluted 120,472,297 120,386,423 120,312,492 110,503,035   (a) In 2012, the Company entered into a management agreement with THL and Advent under which THL and Advent provided advice to the Company on, among other things, financing, operations, acquisitions and dispositions. Under the agreement, THL and Advent were paid an annual management fee for such services. In connection with the initial public offering, the management agreement was terminated and the Company paid THL and Advent a termination fee. Such amount was recorded in other expense, net in the Company’s condensed consolidated statement of operations and comprehensive loss for the nine months ended September 30, 2015.   (b) During the third quarter 2015, the Company refinanced its debt. In conjunction with the refinancing, the Company paid a call premium and other third-party costs. The Company recorded such payments, $56.4 million in aggregate, in other expense in the Company’s condensed consolidated statement of operations and comprehensive loss. Additionally, in conjunction with the refinancing, the Company wrote off $22.7 million of capitalized deferred financing costs, original issuance discounts and call premiums. Further, as the Company was required to provide 30 days of notice when calling its old senior notes, during a portion of the third quarter 2015 both the old senior notes and the new senior notes were outstanding. The overlapping interest expense, $2.0 million, is included in “Refinancing charges” in the adjusted net income table above. During the second quarter 2015, the Company used proceeds from the initial public offering to redeem the other notes. The redemption resulted in a prepayment penalty of $7.0 million. Additionally, in conjunction with the redemption, the Company wrote off $8.6 million of capitalized debt issuance costs and original issuance discounts related to such notes.   (c ) On July 27, 2012, PC Merger Sub, Inc., which was our wholly-owned indirect subsidiary, merged into Party City Holdings Inc. (“PCHI”), with PCHI being the surviving entity (the “Transaction”). As a result of the Transaction, the Company applied the acquisition method of accounting and increased the value of certain property, plant and equipment. The impact of such adjustments on depreciation expense increased the Company’s expenses. These property, plant and equipment depreciation amounts are included in “Non-cash purchase accounting adjustments” for purposes of calculating “adjusted net income,” but are excluded from “Non-cash purchase accounting adjustments” for purposes of calculating adjusted EBITDA since they are included in depreciation expense.   (d) During January 2015, the Company recorded a gain on the sale of certain assets obtained in the October 2014 acquisition of U.S. Balloon Manufacturing Co., Inc.   (e) Represents income tax expense/benefit after excluding the specific tax impacts for each of the pre-tax adjustments. The tax impacts for each of the adjustments were determined by applying to the pre-tax adjustments the effective income tax rates for the specific legal entities in which the adjustments were recorded.         PARTY CITY HOLDCO INC. RECONCILIATION OF 2016 OUTLOOK (In millions) UNAUDITED   Full year 2016 Outlook Net income: $110 - $120 Intangible asset amortization, net of tax:

 

11

Amortization of deferred financing costs and original issuance discount, net of tax:

 

3

Equity based compensation, net of tax:

 

3

Non-cash purchase accounting adjustments, net of tax:

 

3

Adjusted net income (a): $130 - $140         Net income: $110 - $120 Income taxes: 66 - 72 Interest expense, net: 91 - 89 Depreciation and amortization:

 

83

EBITDA: $350 - $364 Deferred rent: 20 - 18 Foreign currency gains, net: (5) - (7) Equity based compensation:

 

4

Non-cash purchase accounting adjustments:

 

4

Other (b):

 

7

Adjusted EBITDA (a): $380 - $390     (a) Amounts may not total due to rounding. (b) Includes adjustments for corporate development and store closing expenses, among other items.               PARTY CITY HOLDCO INC. SEGMENT INFORMATION (In thousands) UNAUDITED   Three Months Ended September 30, 2016 2015 Total Revenues

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Percentage of Total Revenues

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Percentage of Total Revenues

Net Sales: Wholesale $416,387 74.8% $418,447 75.3% Eliminations (210,562) (37.8%) (206,532) (37.1%) Net wholesale 205,825 37.0% 211,915 38.2% Retail 347,557 62.4% 339,465 61.1% Total net sales 553,382 99.4% 551,380 99.3% Royalties and franchise fees 3,568 0.6% 4,027 0.7% Total revenues $556,950 100.0% $555,407 100.0%     Nine Months Ended September 30, 2016 2015 Total Revenues

Dollars in thousands

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Net Sales: Wholesale $945,071 61.6% $923,717 61.1% Eliminations (465,189) (30.3%) (426,132) (28.2%) Net wholesale 479,882 31.3% 497,585 32.9% Retail 1,043,212 68.0% 1,003,196 66.3% Total net sales 1,523,094 99.3% 1,500,781 99.2% Royalties and franchise fees 11,009 0.7% 12,251 0.8% Total revenues $1,534,103 100.0% $1,513,032 100.0%       Three Months Ended September 30, 2016 2015 Total Gross Profit

Dollars in thousands

Percentage of Net Sales

Dollars in thousands

Percentage of Net Sales

Retail $133,177 38.3% $127,871 37.7% Wholesale 63,543 30.9% 61,979 29.2% Total $196,720 35.5% $189,850 34.4%     Nine Months Ended September 30, 2016 2015 Total Gross Profit

Dollars in thousands

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Retail $419,283 40.2% $394,607 39.3% Wholesale 151,517 31.6% 147,507 29.6% Total $570,800 37.5% $542,114 36.1%         PARTY CITY HOLDCO INC. OPERATING METRICS UNAUDITED   Three Months Ended September 30, LTM 2016   2015 2016   Store Count Corporate Stores: Beginning of period 730 697 704 New stores opened 8 7 24 Acquired 0 0 23 Closed (1) 0 (14) End of period 737 704 737 Franchise Stores: Beginning of period 183 205 204 Opened 1 0 4 Sold to Party City 0 0 (23) Closed 0 (1) (1) End of period 184 204 184 Grand Total 921 908 921     Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015   Share of Shelf (a) 75.1% 73.5% 75.9% 73.6%           Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015   Brand comparable sales increase (b) 1.2% -3.6% 1.3% 0.8%       (a) Share of shelf represents the percentage of our retail product cost of sales supplied by our wholesale operations.   (b) Party City brand comparable sales include North American e-commerce sales.  

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Party City Holdco Inc.Deborah Belevan, 914-784-8324VP of Investor RelationsInvestorRelations@partycity.com