The following are the Company’s expectations for fourth quarter fiscal 2021, which are consistent with the previously provided guidance ranges:
- Total revenue of
$685 million to$700 million - Brand comparable sales percentage increase of high-teens compared to fourth quarter fiscal 2020
- Adjusted EBITDA of
$100 million to$110 million
Consistent with the strategy of improving the customer's in-store experience and rationalizing overall SKU counts, the Company continues to update its assortment to target higher in-season sell-through of merchandise and reduce annual inventory carry-over. The Company's product resets and more edited and curated assortments are expected to improve the customer experience by making stores easier to shop and product selections more relevant to consumers, while also improving the efficiency of inventory management and reducing working capital needs. As a result, the Company expects to take a disposal charge of approximately
These updated financial expectations are based upon the Company’s current estimates and subject to completion of financial and operating closing procedures as of and for the quarter ended
As previously announced, the Company will be participating in the
Forward-Looking Statements
This press release and the commentary in the conference call to be held today each contains forward-looking statements. 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. 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
Non-GAAP Information
This press release includes a non-GAAP measure, Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) before interest expense, net, income taxes, depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our core operating performance. We present this non-GAAP financial measure because we believe it assists 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. In evaluating this non-GAAP financial measure, 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 made to such non-GAAP measure. The Company's presentation of the non-GAAP financial measure should not be construed to imply that its future results will be unaffected by any such adjustments. Other companies in the Company's industry may calculate this item differently than we do. This measure is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measure 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. We are not able to provide a reconciliation of Adjusted EBITDA outlook for fourth quarter fiscal 2021 to the most directly comparable GAAP financial measure of net income. Certain items that are excluded from Adjusted EBITDA but included in net income cannot be reasonably estimated or are not in our control. In particular, we are unable to forecast the timing or magnitude of income tax expense, stock-based compensation, restructuring charges and early lease terminations as well as other potential items without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, the results reported under GAAP.
About Party City
Source:
Contacts: Investor Relations ICR Farah Soi andRachel Schacter 203-682-8200 InvestorRelations@partycity.com
Source:
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