Shutterfly reports 2Q revenue uptick while EBITDA slips

Shutterfly reported mixed results for 2Q21, as revenue stacked higher while EBITDA fell on a year-over-year basis, according to three sources following the company.

Revenue for the quarter totaled USD 411m, up 6% YoY, two of the sources said.

Meanwhile, adjusted EBITDA dialed in at USD 33m for the quarter, compared to USD 67m in 2Q20 and USD 65m in 2Q19, they added.

By breakdown, both EBITDA and revenue for the consumer segment were down YoY in 2Q, but the business is cycling against a very strong comp in 2Q20, as many people were staying home at the onset of the pandemic.

The Lifetouch segment — focused on school photography — posted a steep EBITDA and revenue improvement in the latest three-month period as it ran against a weak comp in 2Q20, as schools transitioned to virtual learning and canceled school pictures and yearbook orders.

Investors also pointed out that the second quarter is typically a seasonal trough for the company and the fourth quarter is the seasonal peak.

As of 30 June, leverage totaled 6.18x through USD 2.246bn of total debt and USD 363m of LTM adjusted EBITDA.

For the same period, liquidity totaled USD 128m through USD 98m of cash and USD 30m of revolver availability.

The USD 785m 8.5% senior secured notes due 2026 last traded at 108.2 to yield 4.575% on 23 August, compared to trades at 108.75 to yield 4.178% earlier in August before the earnings report, according to MarketAxess.

The USD 890m Libor+ 500bps term loan due 2026 is quoted today (30 August) at 99.688/100.188, compared to quotes at 99.938/100.313 before the earnings report, according to Markit.

Shutterfly did not respond to a request for comment.

2021 Debtwire

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