Shutterfly 1Q21 earnings grow YoY, seasonality continues

Shutterfly’s 1Q21 revenue came in at USD 341m, up 8% from the prior year, while adjusted EBITDA totaled negative USD 24m, compared to negative USD 58m last year, according to three sources familiar with the company. 

Sources added that the quarter was uneventful, as the company’s annual earnings are largely reliant on activity towards the end of the year. 

Broken down by segment, consumer revenue increased 8% on year to USD 207m, while Lifetouch revenue increased 20% to USD 101m, two of the sources said. SBS revenue totaled USD 33m, compared to USD 39m last year, they added. 

Consumer adjusted EBITDA shook out to USD 9m, up from USD 8m in the prior year, two of the sources said. Lifetouch adjusted EBITDA totaled negative USD 33m, compared to negative USD 67m in 1Q20, they said. 

As of 31 March, liquidity totaled USD 264m through USD 164m of cash and USD 100m of revolver availability. Based on USD 2.1bn of total debt and USD 398m of LTM adjusted EBITDA, the company is 5.3x levered. 

Shutterfly’s USD 750m 8.5% senior secured notes due 2026 last traded in size on 18 May at 109.438 to yield 4.35%, in line with recent trading levels, according to MarketAxess. The notes traded in odd lots yesterday at 109.237 to yield 4.463. 

The Libor+ 600bps institutional TLB due 2026 is quoted 100.194/100.917, while its L+ 650bps (1% floor) TL due 2026 is quoted 100.208/101.042, according to Markit.

Shutterfly did not respond to a request for comment.

2021 Debtwire

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