Enters 2025 Poised for Growth and Profitability with Asset-Light ModelLOS ANGELES, March 13, 2025 (GLOBE NEWSWIRE) -- 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 and year ended December 31, 2024. Comments from Ben Kohn, Chief Executive Officer of PLBY Group “During 2024, we largely completed ...

LOS ANGELES, March 12, 2025 (GLOBE NEWSWIRE) -- PLBY Group, Inc. (NASDAQ: PLBY) (“PLBY Group” or the “Company”), owner of Playboy, one of the most recognizable and iconic brands in the world, today announced that Ben Kohn, Chief Executive Officer, will participate in a fireside chat at the 37th Annual Roth Conference to be held on March 17-18 in Dana Point, California. The fireside chat is scheduled for 11:30 a.m. PT on Tuesday March 18, 2025, and will be webcast live and archived on Playboy’s website at ht ...

Core Viewpoint - PLBY Group, Inc. is set to report its fourth quarter and full year 2024 financial results on March 13, 2025, after the U.S. stock market closes [1] Group 1: Financial Reporting - The company will issue a press release detailing the quarter's performance, including management remarks [2] - An analyst question and answer session will follow the press release at 5 p.m. Eastern Time, which will be webcast for a more interactive discussion [2] Group 2: Company Overview - PLBY Group, Inc. is a global pleasure and leisure company that connects consumers with products, content, and experiences aimed at enhancing their lives [3] - Playboy, the company's flagship brand, is recognized worldwide, with products and content available in approximately 180 countries [3] - The company's mission emphasizes creating a culture where individuals can pursue pleasure, rooted in values of equality, freedom of expression, and the belief that pleasure is a fundamental human right [3]

Core Insights - PLBY Group, Inc. has appointed Gyorgy Gattyan to its Board of Directors, expanding the board from five to seven members, currently comprising six directors with one vacant seat [1][2] - Mr. Gattyan's appointment follows a long-term license agreement with Byborg Enterprises S.A., which he controls, and a $22.35 million investment in PLBY Group by a Byborg affiliate, along with another pending investment of $25.44 million subject to stockholder approval [2][3] - Mr. Gattyan brings over 10 years of experience as an entrepreneur and digital technology executive, which aligns with PLBY Group's strategy to pursue a digital-focused, asset-light business model [3] Company Overview - PLBY Group, Inc. is a global pleasure and leisure company, known for its flagship brand Playboy, which operates in approximately 180 countries [4] - The company's mission is to create a culture where all people can pursue pleasure, building on over 70 years of media and hospitality experiences [4]

Core Viewpoint - PLBY Group, Inc. has converted 25% of its Series B Convertible Preferred Stock into common stock as part of its balance sheet streamlining and deleveraging efforts [1][2]. Group 1: Conversion Details - The company converted 7,000 shares of its 28,000 Series B Stock into 3,784,688 shares of Common Stock at a conversion price of $1.85 per share, which is approximately a 23% premium to the previous securities purchase agreement price [2]. - Following the conversion, the outstanding shares of Series B Stock were reduced to 21,000, while the total shares of Common Stock increased to 93,736,325 [2]. Group 2: Future Actions - The company may consider converting additional Series B Stock in the future based on the price of Common Stock or redeeming more Series B Stock for cash [3]. Group 3: Company Overview - PLBY Group, Inc. is a global pleasure and leisure company, with its flagship brand, Playboy, recognized worldwide and available in approximately 180 countries [4]. - The company's mission focuses on creating a culture where individuals can pursue pleasure, rooted in values of equality and freedom of expression [4].

Group 1 - Playboy Enterprises announced the return of PLAYBOY magazine with Lori Harvey on the cover, available for pre-order, and set to hit newsstands on February 10, 2025 [1][2] - The reimagined magazine aims to blend nostalgia with innovation, celebrating its rich history while appealing to a new generation of readers [2] - The new issue will feature exclusive content, including an interview with Lori Harvey and a candid conversation with comedian Nikki Glaser, along with the return of the Playmate of the Year tradition [4] Group 2 - Playboy Enterprises, a subsidiary of PLBY Group, Inc., is a global leisure company with a presence in approximately 180 countries, focusing on products, content, and experiences that promote fulfilling lives [3] - The company has a legacy of over 70 years in creating groundbreaking media and hospitality experiences while advocating for cultural progress rooted in equality and freedom of expression [3]

Core Insights - PLBY Group has decided to retain its Honey Birdette business due to significant improvements in its balance sheet and operational metrics, leading to positive cash flow and growth prospects [1][2] - The company expects to be cash flow positive for the full year 2025 and aims to reduce net senior debt to below $100 million by the end of 2025 [2][5] - PLBY Group anticipates generating approximately $120 million in total revenue in 2025, supported by guaranteed royalty and licensing payments [2][5] Financial Position - As of early 2025, PLBY Group has $36 million in cash and $120 million in net senior debt [2] - The company plans to use the net proceeds from a proposed $25.4 million follow-on investment to pay down its senior debt, contingent on stockholder approval [2] Strategic Direction - The transition to an asset-light model is underway, which is expected to enhance operational efficiency and profitability [2] - The Board of Directors has decided to focus on growing the Honey Birdette business rather than exploring strategic alternatives, indicating confidence in its future value [2]

Core Viewpoint - PLBY Group has formalized a long-term exclusive licensing agreement with Byborg Enterprises, which includes a minimum guaranteed payment of $300 million over 15 years, aimed at expanding the Playboy brand and transitioning to a more profitable asset-light business model [1][3][4] Licensing Agreement - Byborg will license certain Playboy digital intellectual property and operate Playboy Plus, Playboy TV, and the Playboy Club, with annual minimum guaranteed payments of $20 million for a total of $300 million over the initial 15-year term [3] - The agreement allows for up to nine 10-year extensions based on Byborg achieving specific operational milestones [3] Securities Purchase Agreement - PLBY Group has entered into a securities purchase agreement with Byborg, selling $25 million in newly issued shares at $1.50 per share, contingent on the stock price being at or below $1.65 prior to a special meeting of stockholders [4][5] - If the stock price exceeds $1.65, Byborg can amend the terms to purchase shares at 90% of the then-current 5-day volume-weighted average share price [5][6] Shareholding and Governance - Byborg previously purchased 14.9 million shares for $22.35 million, with a lock-up period ending November 5, 2025, and will have a director appointed to PLBY Group starting in 2025 [7] Company Background - PLBY Group is a global pleasure and leisure company, with Playboy as its flagship brand, recognized worldwide and driving significant consumer spending [9] - Byborg Enterprises is a premium online entertainment company with over 70 million daily visitors, focusing on innovative technology and digital relationships [8]

Financial Data and Key Metrics Changes - The company closed a strategic investment from Byborg for over $22 million and currently has approximately $30 million in cash on the balance sheet [7] - A restructuring of debt resulted in a $66 million discount on senior debt, with a net reduction of $38 million in leverage [8] - The company issued a new $28 million convertible preferred to lenders, convertible at the company's option [8] Business Line Data and Key Metrics Changes - The digital segment currently generates about $5.4 million to $5.5 million quarterly, but experienced a loss of approximately $2 million in the past quarter [14] Market Data and Key Metrics Changes - The company is moving towards an asset-light model, with Honey Birdette being moved to discontinued operations [15] Company Strategy and Development Direction - The relaunch of the Polo magazine is not seen as a key revenue driver but as a promotional tool for creators and models, and a brand marketing vehicle [11][12] - The Byborg partnership includes a $300 million total minimum guarantee over 15 years, with $20 million annual payments [13] - The company aims for meaningful profitability through licensing deals and restructuring efforts [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction, emphasizing the importance of the Byborg deal and other licensing agreements [16][18] - The company believes it is on a stable financial footing with reduced cash interest expenses and a significant cash balance [17] Other Important Information - The unsolicited bid from Cooper Hefner was unanimously rejected by the Board, which is focused on the asset-light model and partnerships [15] Q&A Session Summary Question: What kind of driver should we expect from the Polo magazine? - The magazine is not viewed as a key revenue driver but serves as a promotional and brand marketing tool [11][12] Question: Can you discuss the partnership with Byborg and performance requirements? - The partnership includes a $300 million total minimum guarantee with $20 million annual payments, which are minimum guarantees against a percentage of profits [13] Question: Thoughts on the unsolicited bid from Cooper Hefner? - The Board unanimously rejected the offer, focusing on the asset-light model and ongoing partnerships [15]

Revenue Performance - Licensing revenues from China accounted for 26% of total revenues for Q3 2024, down from 40% in Q3 2023, and 24% for the nine months ended September 30, 2024, down from 41% in the same period of 2023[158]. - Net revenues for the three months ended September 30, 2024, decreased to $12,864,000, down 21% from $16,276,000 in the same period of 2023[174]. - For the nine months ended September 30, 2024, net revenues were $32,824,000, down 36% from $51,013,000 in the same period of 2023[185]. - The decrease in net revenues for the nine months was primarily due to a $14.2 million decline in licensing revenue, largely from terminated Chinese licensing agreements[188]. - Total net revenues for the three months ended September 30, 2024, were $12.864 million, a decrease of 21% compared to $16.276 million in the prior year[211]. - Licensing segment revenues decreased by 33% to $7.377 million, primarily due to the termination of certain Chinese licensing agreements[212]. - Digital Subscriptions and Content segment revenues increased by 5% to $5.485 million[211]. - Digital Subscriptions and Content segment saw a revenue increase of $1.7 million for the nine months ended September 30, 2024, driven by the creator platform[221]. - Total net revenues for the nine months ended September 30, 2024, were $32.8 million, a decrease of 36% from $51.0 million in the prior year[218]. Financial Losses and Expenses - The company recorded a loss of $1.8 million on partial extinguishment of debt in Q1 2023, related to $45 million in prepayments of senior debt[170]. - The company experienced further declines in revenue and profitability, which may lead to additional non-cash asset impairment charges[159]. - The net loss from continuing operations for the three months ended September 30, 2024, was $33,798,000, compared to $7,050,000 in the same period of 2023, reflecting a loss increase of over 200%[174]. - The net loss attributable to PLBY Group, Inc. for the nine months ended September 30, 2024, was $66,854,000, compared to a loss of $176,660,000 in the same period last year, indicating a 62% reduction in losses[185]. - The operating loss decreased by $44.3 million for the nine months ended September 30, 2024, compared to the prior year, primarily due to non-cash impairment charges of $65.5 million in the previous year[220][233]. - The company incurred significant operating losses since going public, with an operating loss of $44.3 million for the nine months ended September 30, 2024[233]. - The company expects to continue incurring operating losses until the Digital Subscriptions and Content segment achieves profitability[234]. Impairments and Asset Write-offs - Impairments of indefinite-lived intangible assets and long-lived assets were recognized due to declines in revenue and profitability during Q3 2024[159]. - Impairments rose dramatically to $21,707,000, compared to $392,000 in the same period last year, indicating a significant write-off of assets[174]. - Impairment charges for the nine months ended September 30, 2024 included $17.0 million on goodwill and $4.7 million on internally developed software[191]. Operating Expenses - The total operating expense for the three months ended September 30, 2024, was $41,006,000, a 130% increase from $17,863,000 in the prior year[174]. - The total operating expense for the nine months ended September 30, 2024, was $77,118,000, a 50% decrease from $152,732,000 in the prior year[185]. - Selling and administrative expenses decreased by $4.0 million due to lower stock-based compensation and technology costs, among other reductions[190]. - Corporate expenses decreased by $6.0 million for the nine months ended September 30, 2024, due to reductions in payroll and consulting services[225]. Cash Flow and Financing - As of September 30, 2024, the company had cash of $9.5 million, primarily held in operating and deposit accounts[226]. - The company raised $15 million from a registered direct offering and approximately $47.6 million from a rights offering in early 2023[227][228]. - The net cash used in operating activities for the nine months ended September 30, 2024, was $19.9 million, a 41% improvement compared to $33.6 million in the prior year[246]. - Cash flows from investing activities decreased by 57%, from $863,000 in 2023 to $372,000 in 2024, primarily due to lower proceeds from asset sales[246]. - Financing activities resulted in a net cash outflow of $557,000 in 2024, a significant decrease from a net inflow of $27.3 million in the previous year, largely due to reduced long-term debt repayments[249]. - Outstanding debt obligations increased from $211.6 million as of December 31, 2023, to $217.7 million as of September 30, 2024[258]. Interest Rates and Debt - Interest expense increased due to higher interest rates on senior secured debt following amendments made in May and November 2023[193]. - As of September 30, 2024, the stated interest rates for Tranche A and Tranche B term loans were 11.46% and 9.46%, respectively, with effective interest rates of 12.08% and 13.32%[244]. - A 0.5% increase in underlying interest rates is estimated to increase annual interest expense by $1.1 million, while a 1% increase would raise it by $2.3 million[258]. - The company has not entered into any interest rate swap contracts as of September 30, 2024, to mitigate interest rate fluctuations[257]. Strategic Initiatives - The company is transitioning to a capital-light business model focused on higher margin revenue streams and lower working capital requirements[157]. - The transition of the Direct-to-Consumer segment to a licensing model resulted in no segment results presented for Q3 2024[155]. - The company aims to strategically expand its licensing business in key categories and territories, leveraging high-end designer collaborations[157]. - The company has renegotiated terms with certain Chinese licensees and terminated some agreements due to slow collections, impacting future revenue recognition[232]. Other Income and Adjustments - The increase in other income, net for the three months ended September 30, 2024, was primarily due to foreign exchange adjustments related to certain Chinese licenses[182]. - Other income increased due to foreign exchange adjustments related to certain Chinese licenses[196]. - An unrealized gain of $1.1 million was recorded for the three months ended September 30, 2024, primarily related to discontinued operations and currency fluctuations[260].