Party City Holdco (PRTYQ) 8-K Goldman Sachs Global Retailing Conference

September 9, 2015

Goldman Sachs Global Retailing Conference

Exhibit 99.1

Disclaimer

1

Forward Looking Statements

Certain

statements

herein

are

“forward-looking

statements”

made

pursuant

to

the

safe

harbor

provisions

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

Statements

contained

herein

that

are

not

clearly

historical

in

nature

are

forward-looking.

In

many

cases,

you

can

identify

forward-looking

statements

by

terms

such

as

“may,”

“will,”

“should,”

“expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology.  These forward-looking statements

speak

only

as

of

the

date

hereof

and

are

based

on

the

Company’s

current

plans

and

expectations

and

are

subject

to

a

number

of

known

and

unknown

uncertainties

and

risks,

many

of which are beyond the Company’s control.  As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from

those expressed in any forward-looking statements in the presentation. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information

presented and we do not intend to update any of these forward-looking statements.

Non-GAAP Financial Measures

This presentation includes unaudited non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. We present non-GAAP measures

when our management believes that the additional information provides useful information about our operating performance. Non-GAAP financial measures do not have any

standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial measures is not

intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP.  See our SEC filings for a reconciliation of

the non-GAAP financial measures to the comparable GAAP measures.

Industry Data

This presentation also contains industry data, forecasts and other information that we obtained from industry publications and surveys, public filings and internal company sources.

Statements as to our ranking, market position and market estimates are based on independent industry publications, third-party forecasts and management’s estimates and

assumptions about our markets and our internal research. While we are not aware of any misstatements regarding our market, industry or similar data presented herein, such data

involve risks and uncertainties and are subject to change based on various factors.  We have not independently verified third-party information nor have we ascertained the

underlying economic assumptions relied upon in those sources, and we cannot assure you of the accuracy or completeness of such information contained in this presentation.

Agenda

2

3

10

25

Business Update

Historical

Financial Performance

7

Company Overview

Key Investment Highlights

Business Update

Business Update

4

Solid YTD performance:

—

Adjusted EBITDA growth of 9%

1

—

Net wholesale revenues up 4%

1

(10% ex currency and USB acquisition

2

)

—

YTD brand comps 3.1%

Progress in strengthening our vertical model with ACIM acquisition

—

Gross margin expansion by turning “doubles” into “triples”

Debt refinance results in $24 million annual cash savings

Per 2Q earnings release guidance:

—

Reaffirmed revenues of $2.25-$2.35 billion

—

Raised adjusted net income to $112-$122 million

—

FY’15 brand comps in the range of 3%

—

30

3

new PC corporate stores, ~325 Halloween City stores

International expansion with Mexico franchise agreement

1

YTD 6/30/15 vs. YTD 6/30/14

2

USB acquisition results in loss of $6 million of third party wholesale sales

3

19 net of 11 closures

Illustration: Power of the Vertical Model

5

Breakdown of Retail Sales

1

For ease of illustration purposes, a static individual margin used.  Actual results depend on range of individual margins by product line. 

2

Assumes 100% share of shelf

Singles:  Product that PRTY buys from a third party and sells at Party City corporate stores.  Earns retail margin only.

-

Examples: candy, greeting cards, helium, foil serving pans

Doubles:

Product

that

PRTY’s

wholesale

division

buys

from

a

third

party

and

sells

at

Party

City

corporate

stores.

Earns

wholesale+retail

margin.

-

Examples: party favors, costumes and other wearables, table covers, cutlery

Triples:

Product

that

PRTY’s

wholesale

division

manufactures+distributes+sells

at

Party

City

corporate

stores.

Earns

manufacturing+wholesale+retail

margin.

-

Examples: paper plates, bowls, cups & napkins, plastic cups, metallic and latex balloons, piñatas

70%

share

of

shelf

80%

share

of

shelf

PRTY

Nickname

Hypothetical example

Individual

1

Cumulative

"Single"

1.00

$  

Retail sales price

0.50

product cost

0.50

product profit

0.20

occupancy

0.30

$  

net gross margin

30%

30%

"Double"

0.50

$  

WS sales price

0.25

product cost

0.25

product profit

0.10

freight/distribution

0.15

$  

net gross margin

30%

45%

"Triple"

0.25

$  

Mfg sales price

0.21

cost

0.04

$  

profit

15%

49%

Gross Margin

2

20%

50%

50%

30%

30%

20%

Today

Goal

Triples

Doubles

Singles

Recent Developments: Acquisitions

6

U.S. Balloon

Acquisition

In October 2014, Party City acquired U.S. Balloon Manufacturing Co., Inc. (“U.S. Balloon”), a

distributor of metallic balloons, for approximately $11 million

Allowed Party City to capture the full manufacturing-to-retail margin on balloons that it

manufactures and sells at company-owned Party City stores

U.S. Balloon was previously a wholesale customer of Anagram that sold balloons to Party City

retail stores

Mexico Master

Franchise Agreement

In

April

2015,

entered

into

an

agreement

with

a

subsidiary

of

Grupo

Oprimax

to

franchise

the

Party City concept in Mexico

Under

the

terms

of

the

agreement,

Grupo

Oprimax

will

open

at

least

80

stores

by

the

end

of

2024

Expected to open 3 stores within the next twelve months

Travis Designs

Acquisition

In March 2015, acquired U.K. based Travis Designs for approximately $12 million

Travis designs, sources and distributes high-end costumes

Will provide significant sourcing and vertical integration synergies, as well as access to a higher-

end costume customer

Potential Acquisitions: the Company would also consider acquiring franchisees and costume manufacturing capabilities

ACIM

Acquisition

In August 2015, acquired assets of a custom injection molded plastics manufacturer for $5.2

million, plus land and a manufacturing facility in New Mexico for approximately $6 million

Will provide Company over time the opportunity to earn full manufacturing to retail margin on

plastic products including drinkware, serveware, and cutlery

Company Overview

8

Company Overview: Nobody Has More Party For Less!

Manufacturing

Largest global designer,

manufacturer, and distributor of

decorated party supplies and

costumes

Largest vertically integrated supplier and retailer of decorated party goods globally

$2.3 billion in worldwide sales

1,2

$372 million in Adjusted EBITDA

1,3

/ 16.2% Adjusted EBITDA margin

1

1

Reflects LTM June 30, 2015 numbers.

2

Includes franchise royalties and locations.

3

See SEC filings for reconciliation of Adjusted EBITDA to Net Income.

Retail

Wholesale / Distribution

#1 party goods retailer in

North America

~900 locations across

North America

2

~70% of products are sourced

through wholesale business

The largest manufacturer of metallic

balloons in the world

>40,000 SKUS

40,000

Retail Outlets

41

5

Puerto Rico

Hawaii

Canada

One stop shop

for all party needs

Grocery

Stores

Dollar

Stores

Mass

Merchant

Party

City

Independent

Party Stores

9

Timeline: A History of Party City’s Vertical Integration

Evolution

of

the

Business

–

Key

Events

Amscan

founded

Acquired

Anagram

Acquired

M&D

Balloons

Acquired

Party City

Acquired

Party

America

Acquired Gags

and Games,

Factory Card and

Party Outlet &

85% of Party City

Franchise Group

Acquired

remaining

interest in

Party City

Franchise

Group

Acquired Christy’s

Costumes and Christy

Garments and

Accessories

Acquired party

goods division of

American

Greetings

Acquired

Riethmuller,

Latex Balloon

Manufacturing

in Malaysia, and

Party

Packagers in

Canada

Acquired iParty

and Party

Delights (online

retailer)

Acquired U.S.

Balloon (Balloon

distributor to

Party City)

1989

1986

2003

2002

2001

2008

2007

2006

2005

1998

1997

1947

2010

2011

2013

2014

Established as a Wholesaler / Manufacturer, Party City has developed into a fully Integrated Wholesaler

with an Omni-Channel Retail Presence

Built a new

distribution

facility

Hong Kong

showroom

opened

2015

Acquired Travis

Designs (designs,

sources and

distributes high-

end costumes)

Acquired ACIM (custom

injection molded plastics

manufacturer)

Became a

vertically

integrated

manufacturer

The Party

Superstore

Channel

evolves

Key Investment Highlights

Investment Highlights

11

Unique Vertically Integrated

Operating Model with Controlled

Distribution Channels

Leading Market Position

in a Growing Category

Combination of wholesale and retail

enhances profitability through greater

margin capture for majority of goods

Amscan

has approximately 70% share of

shelf at Party City

Global sourcing model assures lowest cost

manufacturing for all products

Rapid response to changing consumer

trends

Leading party goods supplier in the

growing $10 billion party goods industry

Leading global designer, manufacturer and

distributor of decorated party supplies and

costumes

#1 party goods retailer in North America

with over 900 superstore locations

Broad and Innovative

Product Offering

Strong Financial Performance

And Free Cash Flow Generation

Unmatched product breadth with over 

25,000 SKUs in-store and 35,000 SKUs

online

Best-in-class design capabilities and

innovation track record creating new

opportunities

Brand portfolio of licenses supported by

market position at wholesale and retail

Sales of party goods have been resilient in

all economic cycles

Repeat-purchase model, consumable

nature of products and predictable selling

patterns

Consistent margin expansion and top-

line

growth; superior to peers

Exceptional free cash flow generation

Multiple Levers for

Disciplined Growth

World-Class Management Team

And Experienced Sponsor Ownership

Seasoned management team with

experience across wholesale and retail

businesses and international and e-

commerce platforms

Track record of strong performance

operating with leverage

Majority sponsor has a long history of

success in C&R investments

Meaningful

whitespace:

400+

new

stores

1

Strong e-commerce growth through

enhanced omni-channel initiatives

Grow wholesale business through

increased share of shelf and alternative

markets

Select geographic and channel expansion

opportunities

Expertise in tuck-in acquisitions

1

2

3

4

5

6

1  Includes franchise stores in Mexico

One of the largest manufacturers, designers and

distributors of decorated party supplies in the world

Product sold in over 40,000 retail outlets in 100+

countries

—

61%

U.S.

and

39%

International

1

Deep assortment with over 40,000 SKUs across 5

product categories

—

400+ party goods ensembles, which contain 5 to

50 design-coordinated items

Balanced,

multi-channel

customer

base

–

no

single

customer represents more than 10% of third party

sales at wholesale

Leading Wholesale Business

Wholesale

Revenue

by

Product

Category

1

Wholesale

Sales

by

Channel

1

12

1

Reflects

December

31,

2014

numbers.

Based

on

total

wholesale

sales

including

intercompany

sales

to

retail

operations.

2014

total

wholesale

sales

were

$1,213

million

and

intercompany

sales

were

$567

million.

2

Includes sales to Party City Canada and Party Delights.

1

Owned

Stores & e-

commerce

47%

2

Party City

Franchised

Stores

13%

Other

Domestic

Retailers

12%

Domestic

Balloon

Distributors/

Retailers

7%

International

Balloon

Distributions

2%

Other

International

19%

Category Defining Omni-Channel Retail Concept

13

Retail Stores

e-Commerce

Nobody Has More Party for Less!

Largest retail

network of

decorated party

supplies in North

America

—

697 company-

owned Party City

superstores

including 43

locations in

Canada and 205

franchise

locations

A leading

operator of

temporary

Halloween

stores in North

America

—

Used to test

locations for

year round

Party City

stores

Significant e-Commerce

platform with ~$160 million of

revenue for 2014

1

—

B2B capabilities

—

Average basket 3x retail

U.K. acquisition expanded

platform into Europe

Rolling out additional country

specific sites across Europe

and beyond (including

Germany, France, and the

Netherlands)

~900 Party

Superstores

Over 300 Temporary

Stores

e-Commerce

currently ~9%

2

of

Retail Sales

1

Includes Party Delights and $19 million of wholesale e-commerce.

2

Reflects June 30, 2015 numbers.

We believe we are

the leading

integrated

wholesale business

is the largest global

designer,

manufacturer and

distributor of party

goods by revenue

—

Over 40,000

SKUs in over

40,000 retail

outlets

worldwide

Third-Party Retail

1

Category Leadership Like No Other

14

Party

Goods

Vitamin &

Supplements

Crafts

Pet Supplies

Sporting

Goods

Home

Improvement

Industry

Leader

Sales ($mm)

1,6191

$1,934

1

$4,764

$7,112

$6,941

$84,380

Stores

6931

3,516

1

1,295

1,404

701

2,270

#2 Player

NM

Sales ($mm)

—

$1,242

2

2

2

$56,949

Stores

—

725

~600

~1,300

~185

1,843

Source:  Company filings and websites

1

Excludes franchise revenue and locations.

2

Private company; data not available

1

Unique Vertically-Integrated Operating Model

Vertical model and significant scale provide unique competitive advantages

Enhanced profitability by capturing the full manufacturing-to-retail margin on a significant portion of the products sold in our retail stores

Maintain greater control of every step from design and production through the sale of our products across channels

Approximately

one

third

5

of

the

total

$257

million

LTM

June

2015

Income

from

Operations

is

earned

outside

of

the

vertical

model,

leveraging our infrastructure and scale

Third-Party Wholesale

Revenue

$658 Million

1,2,3

Retail Revenue

$1.6

Billion

2

~70% Share of Shelf

Manufacturing 31%

4

of

Wholesale Products

1

Third-Party

Wholesale

Revenue

net

of

intercompany

sales.

2

Reflects LTM June 30, 2015 numbers.

3

Includes sales to Party City franchisees.

4

Reflects December 31, 2014 numbers.

5

$71.6 million Income from Operations earned from Wholesale.

15

Cost competitive sourcing

Global scale

Enhanced control of inflation

pressures

Ensures best products and

inventory

Design and innovation

capabilities

Global opportunities (retail +

wholesale)

Rapid response to changes in consumer preferences

2

Highly Efficient Manufacturing, Sourcing And

Distribution Capabilities on a Global Footprint

Sourcing

Distribution

Manufacturing

16

In-house manufacturing focused on high-volume

party essentials that can be manufactured through

highly automated processes

—

Examples: Paper and plastic tableware products

and metallic balloons

Capabilities are cost-competitive and provide rapid

turnaround times on key product categories

Labor intensive products, such as banners, favors

and centerpieces, are principally sourced from Asia

20+ year relationships with many of our vendors

Sourcing, quality control and testing offices

throughout Asia

Warehousing and distribution facilities around

the world

Wholesale

Sourcing

Mix

1

1

Reflects December 31, 2014 numbers. Based on total wholesale sales including intercompany sales to retail operations. 2014 total wholesale sales were $1,213 million and intercompany sales were $567

million.

Manchester UK

Headquarters

Manufacturing /

Distribution

Elmsford (NY)

Louisville (KY)

Anagram

Eden Prairie (MN)

Ampro

Tijuana (Mexico)

Everts Malaysia

Melaka (Malaysia)

Harriman (NY)

Newburgh (NY)

Chester (NY)

Edina (MN)

Amscan Asia Pacific

Baulkham Hills (Australia)

Amscan UK

Milton Keynes,

(England)

Manufacturing /

Distribution

Manufacturing

Manufacturing /

Distribution

Manufacturing

Distribution

Amscan Europe Kircheim

unter Teck  (Germany)

Distribution

Distribution

Distribution

Manufacturing

Amscan De Mexico

Guadalajara (Mexico)

Manufacturing /

Distribution

Amscan Asia

Hong Kong (China)

Distribution

Distribution

/ Sourcing

6 Sourcing Facilities

East Providence (RI)

Manufacturing /

Distribution

Distribution

Naperville (IL)

Distribution

Distribution

Brooklyn (NY)

2

110 person in-house design team

—

Creative staff is constantly in the market identifying trends

and new product concepts

Vertical integration allows development team to test new

products and rapidly respond to changes in consumer

preferences

Proprietary designs and licenses help differentiate products

from those of competitors

Introduce approximately 7,000 new products and 50 new

party goods ensembles annually

Best-In-Class Innovation Capabilities And Broad

Product Offering

17

Selected Merchandise Ensembles

License Portfolio

Innovation

Product Offering

Broadest assortment of merchandise

—

Organized by events and themes

Deep merchandise selection

—

Wide assortment including invitations, thank you cards,

tableware, hats, horns, banners, cascades, balloons,

novelty gifts, piñatas, favors and candy

3

One stop shop for all party needs

—

Powerful combination of physical and online stores

Broad assortment of merchandise

—

Greater assortment of products than our national

competitors, including mass merchants

Deep merchandise selection

—

High in stock positions of core items

Compelling Value

—

“Nobody has More Party for Less” pricing strategy

Differentiated and Fun Retail Experience

Party

Goods

SKU

Count

Comparison

1

18

1

Party City management estimates.

Creating an Innovative and Fun Approach to Shopping

Sports City

Candy City

Custom  Invitations

Favor City

3

Sales of party goods have been resilient in all economic cycles

Strong Financial Performance and Free Cash

Flow Generation

19

Rolling LTM Gross Wholesale Sales ($ in millions)

4

Strong Financial Performance and Free Cash

Flow Generation

20

4

Adj. EBITDA

($mm)

Free Cash Flow ($mm)

Adj. EBITDA Margin

FCF Conversion

1

Free Cash Flow defined as Adjusted EBITDA less CapEx.

2

Free

Cash

Flow

Conversion

defined

as

(Adjusted

EBITDA

–

CapEx)

/

Adjusted

EBITDA.

3

See SEC filings for reconciliation of Adjusted EBITDA to Net Income

3

1

2

14.4%

14.7%

15.3%

15.7%

15.9%

16.1%

2010A

2011A

2012A

2013A

2014A

LTM 6/30/15A

$181

$231

$247

$260

$284

$295

2010A

2011A

2012A

2013A

2014A

LTM 6/30/15A

$231

$275

$292

$321

$362

$372

2010A

2011A

2012A

2013A

2014A

LTM 6/30/15A

78.4%

84.0%

84.6%

81.0%

78.5%

79.2%

2010A

2011A

2012A

2013A

2014A

LTM 6/30/15A

Multiple Levers for Disciplined Growth

21

5

Grow Wholesale

Business

Increase share of shelf at company-owned and third-party stores

Drive continued product innovation through new licenses and integration of new manufacturing acquisitions

Expand into adjacent business-to-business channel

Grow Our

Global Digital Platform

Enhance customer experience through integrated omni-channel strategy

Further develop international capabilities through country specific sites

Currently represents only approximately 9% of retail sales

Drive Additional

Growth and

Productivity From

Existing Stores

Continue to improve brand image and awareness

Pursue merchandising initiatives to drive increased units per transaction

Convert existing stores to new, more customer interactive format

Increase International

Presence

Drive international growth through customization of products to local tastes and holidays

Expand retail presence through store-within-a-store concept with select international retailers

Represents ~15% of revenues in 2014

Expand Our Retail

Store Base

Plan to open ~30 stores per year representing ~4% annual square footage growth

New stores generate a ~3 year payback and 50% ROIC in year 3

Pursue Accretive

Acquisitions

Completed numerous successful acquisitions over the past 16 years

Emphasis on smaller, bolt-on acquisitions that add scale and/or unique capabilities

Significant synergy potential through leveraging existing distribution, production and marketing capabilities

4

22

Expand Our Retail Store Base

Current retail network includes approximately 900 party

superstores, including:

Approximately 650 company-owned stores in the

U.S. and approximately 40 stores in Canada

Approximately 200 franchised locations

Acquired stores have been rebranded

Opportunity

to

add

over

400

2

additional

Party

City

stores in the U.S., Canada and Mexico

23 new stores opened in FY 2014 (19 net, including

acquired and closed stores)

Consistent Company-Owned Store Growth

1

Stores added in 2013 include all 54 stores that were acquired from iParty and converted to the 

Party City banner.

2

Includes franchise stores in Mexico

New Stores Opened:

24

25

23

Target New Store Economics with Vertically-

Integrated Model

Sales at Maturity

~$2

million

Initial

Sales Growth

8

–

10%

over

3

–

4

years

Year

3 EBITDA Margins

~18-20%

Average Total Net Investment

$765k

Pre-Tax

Cash-on-Cash Returns

~50% by Year 3

Payback Period

~3 Years

Through our vertical model, we are able to enhance our total profitability by capturing

the manufacturing-to-retail margin on a significant portion of our retail sales and by

leveraging our access to multiple channels.  In this way, we are like no other retailer.

5

1

600

674

693

1,000+

2012

2013

2014

Potential

4

23

Drive Additional Growth And Productivity

From Existing Stores

Increase share of shelf of vertical products in

redesigned party stores

Convert existing stores to new,

more customer interactive format

Broadening products within

existing license

arrangements

Adding color coordinated

dress-up and candy

products

Expect to have all 200

remaining stores converted by

2018

Remodeled stores expected to

generate sales growth 5-6%

higher than non-remodeled in

the first year

New store management model

increases employee

engagement and improves

customer service

Pursue merchandising initiatives to

drive increased units per transaction

Continue to improve brand image and awareness

Strong emphasis on price-

value

proposition

–

“Nobody

Has More Party For Less”

Continual use of Party City

website and social marketing to

communicate products, party

ideas, assortment, and value

5

4

24

Grow Wholesale Business

Wholesale growth driven by our leading scale, vertical

operating model and strong innovation

Product portfolio initiatives include:

—

Building out wearable / costume business to

capitalize on recent acquisitions

—

Acquisition of new licenses and expansion into

new categories under existing licenses

–

Partnerships with MLB, NBA, NFL, and NHL

teams

Expansion into adjacent business-to-business channel

—

Targeting under-served consumer segments

Wholesale

Share

of

Shelf

1

Gross Wholesale Sales

1

Based on product COGS.

5

~25%

~70%

~75-80%

20%

50%

50%

30%

2005

2014

Long-term goal

Triples

Doubles

$471

$585

$583

$593

$646

$658

$298

$355

$440

$488

$567

$572

$769

$940

$1,023

$1,081

$1,213

$1,230

2010

2011

2012

2013

2014

LTM

06/30/15A

3rd Party Wholesale

Intercompany Sales

Historical Financial Performance

Superior Financial Performance

26

Total Revenues ($mm)

Same

Store

Sales

Growth

1

New Store Openings

1

Same store sales growth is brand comp (includes e-commerce sales and all stores converted to the Party City banner). 2011 comps driven by strong growth in e-commerce operations started in 2009.  2014

comps  partially driven by rebranding 54 stores acquired  from iParty

2

2011 includes 26 stores acquired from Party Packagers and 2013 store growth includes 54 stores acquired from iParty.

$1,015

$1,247

$1,560

$1,487

$1,599

$1,872

$1,914

$2,045

$2,271

$2,304

2006A

2007A

2008A

2009A

2010A

2011A

2012A

2013A

2014A

LTM 06/30/15

Net Openings

:

17

43

25

74

19

20

2

Brand Comp

Sales affected

by Superstorm

Sandy and the

timing of New

Year’s

3.6%

9.5%

2.9%

5.8%

3.1%

2010A

2011A

2012A

2013A

2014A

H1 2015

3.1%

13

16

24

25

23

27

2010A

2011A

2012A

2013A

2014A

LTM 6/30/15

4.2x

3.5x

6.3x

6.7x

5.8x

4.9x

5.1x

2010A

2011A

2012A

2013A

2014A

LTM 6/30/15A

LTM 6/30/15 PF for

Refi

Target

Acquisition

by THL

Historical Net Debt / Adj. EBITDA

2

Strong Balance Sheet and Liquidity

27

Majority of primary proceeds from IPO used to reduce existing indebtedness

Solid free cash flow generation with ability to self-fund organic growth and opportunistic acquisitions

Ample

liquidity

going

forward

supported

by

new

revolver

of

$640

million

1

Target

gross

leverage:

3.0x

-

3.5x

1

ABL revolver comprised of $500 million facility, $40 million FILO tranche, and $100 million seasonal facility increase. 

2

See SEC filings for reconciliation of Adjusted EBITDA to Net Income.

3

Leverage as of fiscal year end.

4

Including Holdco Notes.

3,4

3,4

4

Dividend

Payment

3

3.0 -

3.5x

Recent Results: Second Quarter 2015

28

Q2 2015 Total Revenues increased 0.8% vs. Q2 2014 primarily due to:

SSS growth of 1.2%, partially impacted by the shift of the Easter selling season to the first quarter (+1.5%)

The addition of 20 net new stores vs. Q2 2014

Wholesale sales (ex currency and USB impact) were fueled by contract manufacturing sales and higher international sales

Total gross profit margin increased 80 basis points to 38.3% of net sales compared to 37.5% of net sales in the second quarter of

fiscal 2014, primarily due to lower purchase accounting adjustments, higher share of shelf, favorable product mix and fewer

markdowns

Adjusted EBITDA margin increased 100 basis points primarily due to the impact of leverage

1

Reflects

negative

impact

from

the

Easter

timing

shift.

SSS

were

2.7%

excluding

the

shift.

PY

SSS

benefited

from

rebranding

acquired

iParty

stores

and

Easter

shift

1

Q2 2015 Summary Results

Three Months Ended,

Y-o-Y 

($ in millions)

6/30/2014

6/30/2015

$

%

Total Revenues

$492

$496

$4

0.8%

SSS

4.7%

1.2%

Gross Profit

$183

$188

$5

2.7%

% margin

37.5%

38.3%

Adj. EBITDA

$69

$75

$6

8.7%

% margin

14.1%

15.1%

Capital Expenditures

$19

$19

$0

0.0%

% margin

3.9%

3.8%