Party City Holdco Inc (PRTY) has reported 1.56 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $85.18 million, or $0.71 a share in the quarter, compared with $86.52 million, or $0.72 a share for the same period last year. On an adjusted basis, net profit for the quarter was almost stable at $91.17 million, or $0.76 a share, when compared with the last year period. Revenue during the quarter dropped 4.12 percent to $749.29 million from $781.50 million in the previous year period. Gross margin for the quarter contracted 38 basis points over the previous year period to 46.87 percent. Total expenses were 78.76 percent of quarterly revenues, up from 78.16 percent for the same period last year. That has resulted in a contraction of 60 basis points in operating margin to 21.24 percent.
Operating income for the quarter was $159.13 million, compared with $170.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $192.42 million compared with $197.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 39 basis points in the quarter to 25.68 percent from 25.28 percent in the last year period.
James M. Harrison, chief executive officer, stated: "Our performance in 2016 demonstrates the resiliency of our business, the repeat purchase nature of our Everyday product categories, and the strength of our unique vertical model. Despite an unfavorable calendar shift affecting Halloween, our most important holiday, we were able to deliver our 7th straight year of record revenues in constant currency as a result of our diversified revenue model that reaches across multiple channels. We are pleased that 2016 was also our 16th consecutive year of record EBITDA, which has been driven by consistently growing our share of shelf1 and continually increasing our operational efficiencies."
Party City Holdco Inc expects revenue to be in the range of $2,350 million to $2,450 million for financial year 2017. For fiscal year 2017, Party City Holdco Inc forecasts net income to be in the range of $127 million to $137 million. For the fiscal year 2017, Party City Holdco Inc projects adjusted net income to be in the range of $148 million to $158 million. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.05 to $1.14. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.23 to $1.30 on adjusted basis.
Working capital increases marginallyParty City Holdco Inc has recorded an increase in the working capital over the last year. It stood at $387.56 million as at Dec. 31, 2016, up 1.25 percent or $4.78 million from $382.79 million on Dec. 31, 2015. Current ratio was at 1.79 as on Dec. 31, 2016, down from 1.94 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 60 days for the quarter from 58 days for the last year period. Days sales outstanding were almost stable at 8 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 71 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the quarter from 12 for the same period last year.
Debt comes down
Party City Holdco Inc has recorded a decline in total debt over the last one year. It stood at $1,673.09 million as on Dec. 31, 2016, down 6.36 percent or $113.72 million from $1,786.81 million on Dec. 31, 2015. Total debt was 49.30 percent of total assets as on Dec. 31, 2016, compared with 54.27 percent on Dec. 31, 2015. Debt to equity ratio was at 1.65 as on Dec. 31, 2016, down from 1.96 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 7.39 for the quarter from 7.78 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
