Party City Holdco (PRTYQ) 8-K Party City Announces Fourth Quarter and Full Year 2016 Results

Exhibit 99.1

Party City Announces Fourth Quarter and Full Year 2016 Results

ELMSFORD, N.Y., March 9, 2017 — Party City Holdco Inc. (NYSE: PRTY) today announced financial results for the quarter and year ended December 31, 2016.

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 7^th 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 16^th consecutive year of record EBITDA, which has been driven by consistently growing our share of shelf¹ and continually increasing our operational efficiencies.”

Highlights for Full Year 2016:

• Reported net income increased to a record $117 million; whileadjusted net income increased 21% to $138 million

• Reported EPS improved to $0.98, while adjusted EPS increased 14%, to $1.15

• AdjustedEBITDA increased 3% to a record $390 million

• Expanded store base by opening/acquiring 48 new stores (38 net of closures) in the U.S. and Canada

• Generated free cash flow² of $308 million and reduced leverage³ from 4.6 times to 4.1 times

• Generated cash interest savings of approximately $57 million in 2016 as a result of the application of our IPO proceeds towards debt reduction and the successful refinancing of our debt in both 2015 and 2016

Mr. Harrison continued, “We have many opportunities ahead of us in all aspects of our business to drive growth and further create value. We will continue to execute our growth strategy which includes manufacturing more of what we sell, growing our presence in international markets and alternative channels, adding accretive acquisitions, growing our store base, and enhancing the customer experience, both in-store and online. Our continued focus on these key initiatives will serve to position us for long-term, sustainable growth.”

Full Year summary:

• Reported net income increased to $117 million from $10 million in 2015. Fiscal 2015 included one-time charges associated with the Company’s initial public offering and debt refinancing. Fiscal 2016 benefited from the debt reduction and refinancing which drove interest expense down 28%.

• Adjusted net income improved 21% to $138.3 million, compared to $114.2 million for fiscal 2015.

• Adjusted EBITDA increased 2.6% to $390.0 million compared to $380.3 million in fiscal 2015.

• Reported diluted earnings per share improved to $0.98 from $0.09.Adjusted diluted income per share improved 14% to $1.15 from $1.01 in fiscal 2015.

• Total revenues of $2,283 million decreased 0.5% on a reported basis and increased 0.5% on a constant currency basis.

• Retail sales increased 1.2% on a reported basis (1.6% on a constant currency basis) driven primarily by 38 net new Party City stores added in the past twelve months.

¹  The percentage of our retail product cost of sales supplied by our wholesale operations

²  Defined as adjusted EBITDA less capital expenditures

³  Defined as net debt to adjusted EBITDA

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• Brand comparable sales decreased 0.4% during 2016.

• Net third-party wholesale revenues decreased 4.3% on a reported basis (increased 1% on anadjustedbasis when adjusting for the currency effect as well as the impact of eliminating $19 million in intercompany sales for the 23 franchise store acquisitions over the last twelve months).

• Total gross profit margin increased 70 basis points (100 basis points when excluding the negative effects of foreign exchange) to 40.4% of net sales, primarily due to higher share of shelf and the benefits associated with improved product sourcing, offset by increased occupancy costs and slightly higher promotions.

• Operating expenses totaled 28.9% of revenues, and increased 1% over 2015 to $659 million. Wholesale selling expenses declined 6.7% primarily due to the reorganization of the gift sales group. Retail operating expenses increased 1.9% due to higher store count offset by operating fewer temporary Halloween City stores and improved store labor productivity.

• During the year, the Company opened 29 new stores, acquired 19 franchise stores and closed ten stores.

Fourth Quarter summary:

• Reported net income decreased 1.6% to $85.2 million, whileadjusted net income was roughly flat at $91.2 million, compared to $91.0 million for the fourth quarter of fiscal 2015.

• AdjustedEBITDA was $192.4 million, as compared to $197.6 million in the fourth quarter of fiscal 2015. As a percent of revenues,adjusted EBITDA increased to 25.7% from 25.3% in the fourth quarter of 2015. Reported earnings per share decreased to $0.71 from $0.72.Adjusted diluted income per share was flat at $0.76.

• Total revenues of $749 million declined 4.1% on a reported basis or 3.3% on a constant currency basis.

• Retail sales declined 3.3% on a reported basis (-3.0% on a constant currency basis) driven by lower brand comparable sales, which more than offset new store growth.

• Brand comparable sales decreased 3.5% in the fourth quarter of 2016 due to a two-day Halloween shift from Saturday to Monday, which impacted adult participation in the holiday.

• Net third-party wholesale revenues decreased 6.8% on a reported basis (-1.0% on anadjusted basis whenadjusted for the currency effect as well as the elimination of $4.5 million in intercompany sales as a result of the acquisition of 23 franchise stores over the last twelve months). Revenue generated by selling to these stores was previously reported as third party sales.

• Total gross profit margin decreased 40 basis points to 46.4% of net sales, primarily due to the deleveraging effect on occupancy costs from lower sales, the negative effects of foreign exchange and slightly higher promotions.

• Operating expenses were 25.6% of revenues, and decreased $6.6 million from the fourth quarter of 2015 to $192.1 million. Wholesale selling expenses declined 8.6% primarily due to the reorganization of the gift sales group and the effect of foreign exchange. Retail operating expenses declined 1.9% primarily due to lower advertising spend and the impact of 65 fewer temporary Halloween City stores. General and administrative costs declined 9.6% primarily due to lower incentive-based compensation.

Balance sheet highlights as of December 31, 2016:

The Company ended the year with $1,608 million in debt (net of cash) resulting in net debt leverage³ of 4.1 times and approximately $369 million in availability under its asset-based revolving credit facility.

Fiscal 2017 Outlook:

For 2017, the Company is providing the following guidance:

• Total revenue of $2.35 to $2.45 billion

• Brand comparable sales growth of 1% - 1.5%

• GAAP net income of $127 to $137 million

• GAAP diluted EPS of $1.05 to $1.14

• Adjusted EBITDA of $400 to $417 million

• Adjusted net income of $148 to $158 million

• Adjusted diluted EPS of $1.23 to $1.30

• Net debt leverage of approximately 3.5X times by the end of 2017

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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 2017 Outlook” for a more detailed explanation, including definitions of the various Non-GAAP terms used in this release.

Conference Call Information:

A conference call to discuss fourth quarter and full year 2016 financial results is scheduled for today, March 9, 2017, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial877-201-0168 (U.S. domestic) and647-788-4901 (international), and enter conference ID#56432672, approximately 10 minutes prior to the start of the call. The conference call will also be webcast athttp://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 free cash flow, defined as Adjusted EBITDA less capital expenditures, and 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

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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. 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 160 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.

Contact Information

Deborah Belevan, VP of Investor Relations

(914) 784-8324

InvestorRelations@partycity.com

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PARTY CITY HOLDCO INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	December 31,			December 31,
	2016			2015
	Unaudited
ASSETS
Current assets:
Cash and cash equivalents	$	64,610		$	42,919
Accounts receivable, net		134,091			132,287
Inventories, net		613,868			564,259
Prepaid expenses and other current assets		68,255			50,450
Total current assets		880,824			789,915
Property, plant and equipment, net		292,904			272,420
Goodwill		1,572,568			1,562,515
Trade names		566,599			568,712
Other intangible assets, net		76,581			89,157
Other assets, net		4,502			9,684
Total assets	$	3,393,978		$	3,292,403
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Loans and notes payable	$	120,138		$	126,136
Accounts payable		163,415			111,616
Accrued expenses		149,683			146,319
Income taxes payable		46,675			8,504
Current portion of long-term obligations		13,348			14,552
Total current liabilities		493,259			407,127
Long-term obligations, excluding current portion		1,539,604			1,646,121
Deferred income tax liabilities		278,819			276,667
Deferred rent and other long-term liabilities		65,507			49,471
Total liabilities		2,377,189			2,379,386
Stockholders’ equity:
Common stock (119,515,894 and 119,258,374 shares issued and outstanding at December 31, 2016 and 2015, respectively)		1,195			1,193
Additional paid-in capital		910,167			904,425
Retained earnings		157,666			40,189
Accumulated other comprehensive loss		(52,239	)		(32,790	)
Total stockholders’ equity		1,016,789			913,017
Total liabilities and stockholders’ equity	$	3,393,978		$	3,292,403

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PARTY CITY HOLDCO INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2016		2015		2016			2015
Revenues:
Net sales	$	743,292	$	774,341	$	2,266,386		$	2,275,122
Royalties and franchise fees		5,996		7,160		17,005			19,411
Total revenues		749,288		781,501		2,283,391			2,294,533
Expenses:
Cost of sales		398,093		412,217		1,350,387			1,370,884
Wholesale selling expenses		14,102		15,435		59,956			64,260
Retail operating expenses		130,513		133,064		408,583			401,039
Franchise expenses		4,706		3,797		15,213			14,394
General and administrative expenses		37,091		41,049		152,919			151,097
Art and development costs		5,653		5,271		22,249			20,640
Total expenses		590,158		610,833		2,009,307			2,022,314
Income from operations		159,130		170,668		274,084			272,219
Interest expense, net		21,523		21,931		89,380			123,361
Other (income) expense, net		2,097		4,471		(2,010	)		130,990
Income before income taxes		135,510		144,266		186,714			17,868
Income tax expense		50,334		57,743		69,237			7,409
Net income	$	85,176	$	86,523	$	117,477		$	10,459
Comprehensive income (loss)	$	75,673	$	83,384	$	98,028		($	9,596	)
Net income per common share-Basic	$	0.71	$	0.73	$	0.98		$	0.09
Net income per common share-Diluted	$	0.71	$	0.72	$	0.98		$	0.09
Weighted-average number of common shares-Basic		119,505,541		119,258,374		119,381,842			111,917,168
Weighted-average number of common shares-Diluted		120,541,211		120,266,120		120,369,672			112,943,807

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PARTY CITY HOLDCO INC.

RECONCILIATION OF ADJUSTED EBITDA

(In thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
Net income	$	85,176		$	86,523		$	117,477		$	10,459
Interest expense, net		21,523			21,931			89,380			123,361
Income taxes		50,334			57,743			69,237			7,409
Depreciation and amortization		22,444			20,948			83,630			80,515
EBITDA		179,477			187,145			359,724			221,744
Non-cash purchase accounting adjustments		425			(1,509	)		4,114			4,470
Management fee(a)		—			—			—			31,627
Restructuring, retention and severance		657			7			911			2,318
Refinancing charges (b)		1,458			—			1,458			94,607
Deferred rent (c)		6,595			3,827			18,835			13,407
Store closing expenses (d)		761			998			3,688			1,901
Foreign currency (gains) losses, net		(472	)		1,909			(7,417	)		3,691
Equity based compensation		1,024			948			3,853			3,042
Undistributed non-cash (gain) loss in unconsolidated joint venture		(66	)		185			314			562
Gain on sale of assets(e)		—			—			—			(2,660	)
Change-of-control license premium		—			3,000			—			3,000
Corporate development expenses(f)		2,395			243			4,290			1,786
Other		161			849			279			798
Adjusted EBITDA	$	192,415		$	197,602		$	390,049		$	380,293
Adjusted EBITDA margin		25.7	%		25.3	%		17.1	%		16.6	%

(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 consolidated statement of operations and comprehensive loss for the year ended December 31, 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 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) Principally represents third-party costs related to acquisitions (primarily legal expenses and diligence fees). Such costs are excluded from the definition of “Consolidated Adjusted EBITDA” that is utilized for certain covenants in the Company’s credit agreements.

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PARTY CITY HOLDCO INC.

RECONCILIATION OF ADJUSTED NET INCOME

(In thousands, except share and per share data)

	Three Months Ended December 31,					Year Ended December 31,
	2016		2015			2016		2015
Income before income taxes	$	135,510	$	144,266		$	186,714	$	17,868
Intangible asset amortization		5,065		4,669			17,247		18,885
Non-cash purchase accounting adjustments (c)		309		(1,985	)		5,300		6,445
Amortization of deferred financing costs and original issuance discount(b)		1,997		1,291			5,818		40,516
Management fee (a)		—		—			—		31,627
Refinancing charges(b)		725		—			725		65,338
Equity based compensation		1,024		948			3,853		3,042
Impairment charges		—		852			—		852
Gain on sale of assets		—		—			—		(2,660	)
Change-of-control license premium		—		3,000			—		3,000
Adjusted income before income taxes		144,630		153,041			219,657		184,913
Adjusted income tax expense (d)		53,462		62,062			81,380		70,707
Adjusted net income	$	91,168	$	90,979		$	138,277	$	114,206
Adjusted net income per common share - diluted	$	0.76	$	0.76		$	1.15	$	1.01
Weighted-average number of common shares-diluted		120,541,211		120,266,120			120,369,672		112,943,807

(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 consolidated statement of operations and comprehensive loss for the year ended December 31, 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 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) 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.

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PARTY CITY HOLDCO INC.

RECONCILIATION OF 2017 OUTLOOK

(In millions)

UNAUDITED

	Full year 2017
	Outlook
Net income:	$127 - $137
Intangible asset amortization, net of tax:	9
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:	6
Adjusted net income(a):	$148 - $158
Net income:	$127 - $137
Income taxes:	76 - 82
Interest expense, net:	88 - 86
Depreciation and amortization:	87
EBITDA:	$378 - $392
Deferred rent:	8 - 9
Equity based compensation:	4
Non-cash purchase accounting adjustments:	6
Restructuring, retention and severance:	2 - 3
Undistributed loss in unconsolidated joint ventures:	1 - 2
Other(b):	1
Adjusted EBITDA(a):	$400 - $417

(a) Amounts may not total due to rounding.

(b) Includes adjustments for corporate development and store closing expenses, among other items.

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PARTY CITY HOLDCO INC.

SEGMENT INFORMATION

(In thousands, except percentages)

	Three Months Ended December 31,
	2016						2015
	Dollars in thousands			Percentage of Total Revenues			Dollars in thousands			Percentage of Total Revenues
Total Revenues
Net Sales:
Wholesale	$	307,147			41.0	%	$	303,272			38.8	%
Eliminations		(161,711	)		(21.6%	)		(147,259	)		(18.8%	)
Net wholesale		145,436			19.4	%		156,013			20.0	%
Retail		597,856			79.8	%		618,328			79.1	%
Total net sales		743,292			99.2	%		774,341			99.1	%
Royalties and franchise fees		5,996			0.8	%		7,160			0.9	%
Total revenues	$	749,288			100.0	%	$	781,501			100.0	%
	Year Ended December 31,
	2016						2015
	Dollars in thousands			Percentage of Total Revenues			Dollars in thousands			Percentage of Total Revenues
Total Revenues
Net Sales:
Wholesale	$	1,252,218			54.8	%	$	1,226,989			53.5	%
Eliminations		(626,900	)		(27.4%	)		(573,391	)		(25.0%	)
Net wholesale		625,318			27.4	%		653,598			28.5	%
Retail		1,641,068			71.9	%		1,621,524			70.7	%
Total net sales		2,266,386			99.3	%		2,275,122			99.2	%
Royalties and franchise fees		17,005			0.7	%		19,411			0.8	%
Total revenues	$	2,283,391			100.0	%	$	2,294,533			100.0	%
	Three Months Ended December 31,
	2016						2015
	Dollars in thousands			Percentage of Net Sales			Dollars in thousands			Percentage of Net Sales
Total Gross Profit
Retail	$	292,185			48.9	%	$	308,629			49.9	%
Wholesale		53,014			36.5	%		53,495			34.3	%
Total	$	345,199			46.4	%	$	362,124			46.8	%
	Year Ended December 31,
	2016						2015
	Dollars in thousands			Percentage of Net Sales			Dollars in thousands			Percentage of Net Sales
Total Gross Profit
Retail	$	711,468			43.4	%	$	703,236			43.4	%
Wholesale		204,531			32.7	%		201,002			30.8	%
Total	$	915,999			40.4	%	$	904,238			39.7	%

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PARTY CITY HOLDCO INC.

OPERATING METRICS

	Three Months Ended December 31,						Fiscal Year
	2016			2015			2016
Store Count
Corporate Stores:
Beginning of period		737			704			712
New stores opened		15			10			29
Acquired		—			4			19
Closed		(2	)		(6	)		(10	)
End of period		750			712			750
Franchise Stores:
Beginning of period		184			204			200
Opened		1			—			5
Sold to Party City		—			(4	)		(19	)
Closed		(1	)		—			(2	)
End of period		184			200			184
Grand Total		934			912			934

	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
Share of Shelf (a)		77.9	%		77.2	%		76.6	%		75.0	%
	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
Brand comparable sales (decrease) increase(b)		-3.5	%		2.8	%		-0.4	%		1.5	%

(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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