PLBY Group, Inc. (NASDAQ: PLBY) (“PLBY Group” or the “Company”), a
leading pleasure and leisure lifestyle company and owner of
Playboy, one of the most recognizable and iconic brands in the
world, today announced financial and operational results for the
quarter ended September 30, 2024. Comparability is to the same
period in the prior year and all periods presented reflect the
Company’s Honey Birdette business as a discontinued operation, as
appropriate and unless otherwise noted.
Comments from Ben Kohn, Chief Executive
Officer of PLBY Group
“This year we have taken substantial and
necessary actions to strengthen our balance sheet and restore
Playboy to its iconic roots, establishing a more sustainable path
forward. This week, we signed a deal with our existing lenders to
restructure our debt, reducing our senior debt from approximately
$218 million to approximately $152 million. Related to that, we
will issue our lenders $28 million of a new convertible preferred
stock. We will be able to redeem the new convertible preferred
stock, at our sole option, for either cash (at any time) or common
stock at a minimum price of $1.50 per share and a ceiling of $4.50
per share, subject to the terms of the preferred. The restructured
debt, coupled with the approximately $30 million in total cash we
now have, provides us a stronger financial foundation moving
forward.”
“Operationally, we continue to advance our
asset-light model. Having closed the Byborg Enterprises investment
last week, we are working hard to finalize the strategic licensing
agreement with Byborg, with the anticipation of closing by
year-end. Successfully completing this transaction will allow us to
make other operational changes, which will streamline our business
and accelerate our path to meaningful profitability. In addition,
we have successfully signed multiple new licensing agreements, and
combined with the anticipated $300 million in guaranteed minimums
from Byborg over the initial 15 years of the pending agreement, we
are establishing a growing baseline of recurring revenue.”
“Simultaneously, we have relaunched Playboy.com,
targeting key content verticals, including men’s lifestyle,
automotive, sports and travel, that we believe can significantly
expand our audience and grow engagement. Playboy remains the
quintessential aspirational lifestyle brand, recognized around the
world. We are accelerating plans to expand engagement, create
exciting events and experiences, and grow our social media
presence, all supported by the recently redesigned
Playboy.com.”
“As we near the return of the iconic Playboy
magazine in early 2025, we do so from a position of growing
strength. We are reviving Playboy’s place as a launching pad for
talented and beautiful women through a global search for our newest
Playmate, kicking off with an eight-city casting tour, culminating
in the reveal of the 2024 Playmate of the Year in the new
magazine.”
Recent Highlights
- This week, PLBY Group signed a deal
to restructure its senior debt facility, reducing its outstanding
term loans to a principal amount of approximately $152 million. In
connection with its debt restructuring, the Company will issue $28
million of a new convertible preferred stock which matures at the
end of 2027. The preferred stock includes a 12% annual dividend
rate, starting in six months, which will be payable in cash or
in-kind, solely at PLBY Group’s discretion. PLBY Group has the
right to redeem for cash (at any time) or convert the convertible
preferred stock at any time, provided that the five-day
volume-weighted average price of PLBY Group’s common stock is $1.50
or above, with a conversion price floor of $1.50 and a cap of
$4.50.
- Last week, PLBY Group secured a
strategic investment from Byborg Enterprises (“Byborg”), a
privately held premium online entertainment company that is
redefining the future of human interaction and reshaping digital
relationships through innovative technology, in which Byborg
purchased 14.9 million newly issued, unregistered shares of common
stock of PLBY Group for a price of $1.50 per share, for a total
purchase price of $22.35 million. The purchased shares are subject
to a lock-up period of one year. In connection with the equity
purchase, Byborg entered into a standstill agreement capping its
total holdings in PLBY Group at 29.99%, and Byborg will receive a
seat on the Board of Directors of PLBY, which will also add a new
independent director, beginning in 2025.
- Concurrently, Byborg and PLBY Group
signed a non-binding letter of intent (“LOI”) providing that the
parties will work together to negotiate and execute a definitive
agreement pursuant to which Byborg would license certain Playboy
digital intellectual property and operate certain Playboy digital
businesses. Core to the contemplated strategic partnership is
pursuing additional new revenue streams, including artificial
intelligence services, webcam products and other initiatives which
will leverage existing Byborg intellectual property. The LOI
includes $20 million in annual minimum guaranteed payments to PLBY
Group over the initial 15-year term, for a total of $300 million,
as well as a profit share based on performance. PLBY Group and
Byborg expect to enter into the definitive agreement prior to
year-end.
Third Quarter 2024 Results
Unless otherwise noted, all results are
presented on a continuing operations basis and exclude the results
of the Honey Birdette business that was classified as discontinued
operations as of the third quarter of 2024. Management continues to
explore strategic options to divest the Honey Birdette
business.
Total revenue was $12.9 million
compared to $16.3 million in the prior year, reflecting a
year-over-year decrease of $3.4 million, or 21%. Substantially all
of the decrease was due to a decline in licensing revenue
attributable primarily to the termination of two China licensees in
late 2023. This was partially offset by growth in the Company’s
digital subscriptions and content segment.
Licensing revenue was $7.4
million compared to $10.9 million in the prior year, reflecting a
year-over-year decrease of $3.5 million, or 32%. The decrease was
attributable to China and the termination of two of the Company’s
three largest licensing agreements in late 2023.
Digital Subscriptions and Content
revenue was $5.5 million, up 5% from $5.2 million in the
prior year period. An increase in creator platform revenue offset a
modest decline in legacy media.
Net loss from continuing
operations was $33.8 million compared to a net loss of
$7.1 million in the third quarter of 2023, due primarily to
impairment charges on intangible assets and the decline in the
licensing business.
Total net loss was $33.8
million compared to a net loss of $7.2 million in the third quarter
of 2023, due primarily to impairment charges on intangible assets
and the decline in the licensing business.
Adjusted EBITDA loss was $1.8
million compared to positive Adjusted EBITDA of $1.8 million in the
third quarter of 2023. This reflects a reduction in licensing
revenue due to the termination of two China licensing agreements in
the fourth quarter of 2023 and the reversal of accrued commission
expense in the prior year period, partially offset by reductions in
corporate expenses, reflecting ongoing cost rationalization.
Webcast Details
PLBY Group will host a webcast at 5 p.m. ET today to discuss the
third quarter 2024 results. Participants may access the live
webcast on the events section of the Company’s website at
https://www.plbygroup.com/investors.
About PLBY Group, Inc.
PLBY Group, Inc. is a global pleasure and
leisure company connecting consumers with products, content, and
experiences that help them lead more fulfilling lives. PLBY Group’s
flagship consumer brand, Playboy, is one of the most recognizable
brands in the world, with products and content available in
approximately 180 countries. PLBY Group’s mission—to create a
culture where all people can pursue pleasure — builds upon over 70
years of creating groundbreaking media and hospitality experiences
and fighting for cultural progress rooted in the core values of
equality, freedom of expression and the idea that pleasure is a
fundamental human right. Learn more at
http://www.plbygroup.com.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
The Company’s actual results may differ from their expectations,
estimates, and projections and, consequently, you should not rely
on these forward-looking statements as predictions of future
events. Words such as “expect”, “estimate”, “project”, “budget”,
“forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”,
“should”, “believes”, “predicts”, “potential”, “continue”, and
similar expressions (or the negative versions of such words or
expressions) are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, the Company’s expectations with respect to future
performance, growth plans and anticipated financial impacts of its
strategic opportunities and corporate transactions.
These forward-looking statements involve
significant risks and uncertainties that could cause the actual
results to differ materially from those discussed in the
forward-looking statements. Factors that may cause such differences
include, but are not limited to: (1) the inability to maintain the
listing of the Company’s shares of common stock on Nasdaq; (2) the
risk that the Company’s completed or proposed transactions disrupt
the Company’s current plans and/or operations, including the risk
that the Company does not complete any such proposed transactions
or achieve the expected benefits from any transactions; (3) the
ability to recognize the anticipated benefits of corporate
transactions, commercial collaborations, commercialization of
digital assets, cost reduction initiatives and proposed
transactions, which may be affected by, among other things,
competition, the ability of the Company to grow and manage growth
profitably, and the Company’s ability to retain its key employees;
(4) costs related to being a public company, corporate
transactions, commercial collaborations and proposed transactions;
(5) changes in applicable laws or regulations; (6) the possibility
that the Company may be adversely affected by global hostilities,
supply chain delays, inflation, interest rates, foreign currency
exchange rates or other economic, business, and/or competitive
factors; (7) risks relating to the uncertainty of the projected
financial information of the Company, including changes in the
Company’s estimates of cash flows and the fair value of certain of
its intangible assets, including goodwill; (8) risks related to the
organic and inorganic growth of the Company’s businesses, and the
timing of expected business milestones; (9) changing demand or
shopping patterns for the Company’s products and services; (10)
failure of licensees, suppliers or other third-parties to fulfill
their obligations to the Company; (11) the Company’s ability to
comply with the terms of its indebtedness and other obligations;
(12) changes in financing markets or the inability of the Company
to obtain financing on attractive terms; and (13) other risks and
uncertainties indicated from time to time in the Company’s annual
report on Form 10-K, including those under “Risk Factors” therein,
and in the Company’s other filings with the Securities and Exchange
Commission. The Company cautions that the foregoing list of factors
is not exclusive, and readers should not place undue reliance upon
any forward-looking statements, which speak only as of the date
which they were made. The Company does not undertake any obligation
to update or revise any forward-looking statements to reflect any
change in its expectations or any change in events, conditions, or
circumstances on which any such statement is based.
Contact:
Investors: investors@plbygroup.comMedia:
press@plbygroup.com
|
PLBY Group, Inc.Condensed Consolidated
Statements of
Operations(Unaudited)(in
thousands, except share and per share amounts) |
|
|
|
Three Months EndedSeptember
30, |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenues |
|
$ |
12,864 |
|
|
$ |
16,276 |
|
Costs and expenses: |
|
|
|
|
Cost of sales |
|
|
(3,820 |
) |
|
|
(1,282 |
) |
Selling and administrative expenses |
|
|
(15,479 |
) |
|
|
(15,471 |
) |
Impairments |
|
|
(21,707 |
) |
|
|
(392 |
) |
Other operating expense, net |
|
|
— |
|
|
|
(718 |
) |
Total operating expense |
|
|
(41,006 |
) |
|
|
(17,863 |
) |
Operating loss |
|
|
(28,142 |
) |
|
|
(1,587 |
) |
Nonoperating (expense)
income: |
|
|
|
|
Interest expense |
|
|
(6,686 |
) |
|
|
(6,620 |
) |
Other income, net |
|
|
1,616 |
|
|
|
228 |
|
Total nonoperating expense |
|
|
(5,070 |
) |
|
|
(6,392 |
) |
Loss from continuing
operations before income taxes |
|
|
(33,212 |
) |
|
|
(7,979 |
) |
(Expense) benefit from income
taxes |
|
|
(586 |
) |
|
|
929 |
|
Net loss from continuing
operations |
|
|
(33,798 |
) |
|
|
(7,050 |
) |
Income (loss) from
discontinued operations, net of tax |
|
|
43 |
|
|
|
(115 |
) |
Net loss |
|
|
(33,755 |
) |
|
|
(7,165 |
) |
Net loss attributable to PLBY
Group, Inc. |
|
$ |
(33,755 |
) |
|
$ |
(7,165 |
) |
Net loss per share from
continuing operations, basic and diluted |
|
$ |
(0.45 |
) |
|
$ |
(0.10 |
) |
Net income (loss) per share
from discontinued operations, basic and diluted |
|
|
— |
|
|
|
— |
|
Net loss per share, basic and
diluted |
|
$ |
(0.45 |
) |
|
$ |
(0.10 |
) |
Weighted-average shares
outstanding, basic and diluted |
|
|
74,589,372 |
|
|
|
73,891,105 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
This release presents the financial measure
earnings before interest, taxes, depreciation and amortization, or
“EBITDA” and “Adjusted EBITDA”, which are not financial measures
under the accounting principles generally accepted in the United
States of America (“GAAP”). “EBITDA” is defined as net income or
loss before interest, income tax expense or benefit, and
depreciation and amortization. “Adjusted EBITDA” is defined as
EBITDA adjusted for stock-based compensation and other special
items determined by Company management. Adjusted EBITDA is intended
as a supplemental measure of the Company’s performance that is
neither required by, nor presented in accordance with, GAAP. The
Company believes that the use of EBITDA and Adjusted EBITDA
provides an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing its financial
measures with those of comparable companies, which may present
similar non-GAAP financial measures to investors. However,
investors should be aware that when evaluating EBITDA and Adjusted
EBITDA, the Company may incur future expenses similar to those
excluded when calculating these measures. In addition, the
Company’s presentation of these measures should not be construed as
an inference that the Company’s future results will be unaffected
by unusual or nonrecurring items. The Company’s computation of
Adjusted EBITDA may not be comparable to other similarly titled
measures computed by other companies, because not all companies may
calculate Adjusted EBITDA in the same fashion.
In addition to adjusting for non-cash
stock-based compensation, non-cash charges for the fair value
remeasurements of certain liabilities and non-recurring non-cash
impairments, asset write-downs and inventory reserve charges, the
Company typically adjusts for non-operating expenses and income,
such as non-recurring special projects, including the
implementation of internal controls, non-recurring gain or loss on
the sale of assets, expenses associated with financing activities,
and reorganization and severance expenses that result from the
elimination or rightsizing of specific business activities or
operations.
Because of these limitations, EBITDA and
Adjusted EBITDA should not be considered in isolation or as a
substitute for performance measures calculated in accordance with
GAAP. The Company compensates for these limitations by relying
primarily on the Company’s GAAP results and using EBITDA and
Adjusted EBITDA on a supplemental basis. Investors should review
the reconciliation of net loss to EBITDA and Adjusted EBITDA below
and not rely on any single financial measure to evaluate the
Company’s business.
The following table reconciles the Company’s net
loss from continued operations to EBITDA and Adjusted EBITDA (in
thousands):
|
GAAP Net Loss to Adjusted EBITDA
Reconciliation(in thousands) |
|
|
Three Months EndedSeptember
30, |
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(33,755 |
) |
|
$ |
(7,165 |
) |
Adjusted
for: |
|
|
|
(Income) loss from discontinued operations, net of tax |
|
(43 |
) |
|
|
115 |
|
Net loss from
continuing operations |
|
(33,798 |
) |
|
|
(7,050 |
) |
Adjusted
for: |
|
|
|
Interest expense |
|
6,686 |
|
|
|
6,620 |
|
Expense (benefit) from income taxes |
|
586 |
|
|
|
(929 |
) |
Depreciation and amortization |
|
1,042 |
|
|
|
946 |
|
EBITDA |
|
(25,484 |
) |
|
|
(413 |
) |
Adjusted
for: |
|
|
|
Stock-based compensation |
|
1,502 |
|
|
|
540 |
|
Impairments |
|
21,707 |
|
|
|
392 |
|
Adjustments |
|
511 |
|
|
|
1,312 |
|
Adjusted
EBITDA |
$ |
(1,764 |
) |
|
$ |
1,831 |
|
PLBY (NASDAQ:PLBY)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
PLBY (NASDAQ:PLBY)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024