PLBY Group, Inc. (NASDAQ:PLBY) Q4 2022 Earnings Conference Call March 16, 2023 5:00 PM ET Company Participants Ashley DeSimone - ICR Ben Kohn - Chief Executive Officer, President & Director Lance Barton - Chief Financial Officer Ashley Kechter - President, Global Consumer Business Conference Call Participants Alex Fuhrman - Craig-Hallum Mike Hickey - The Benchmark Company Jason Tilchen - Cannacord Jim Duffy - Stifel George Kelly - Roth Capital Partners Operator Greetings and welcome to PLBY Group’s Fourth q ...

Financial Performance - The Direct-to-Consumer segment generated $186.6 million in revenue but incurred an operating loss of $207.0 million, primarily due to $184.8 million in non-cash impairment charges[29]. - The Digital Subscriptions and Content segment contributed $18.7 million in revenue with an operating loss of $13.0 million, including $4.9 million related to non-cash impairment of crypto assets[32]. - As of December 31, 2022, the company had cash of $31.6 million and outstanding debt obligations of $201.6 million, with an interest rate of 11.01%[357][359]. - For the year ended December 31, 2022, the company recorded an unrealized loss of $20.4 million due to the strengthening of the U.S. dollar against the Australian dollar[362]. - The company incurred an impairment loss of $4.9 million on its Ethereum digital assets during the year ended December 31, 2022[363]. - A 1% increase or decrease in underlying interest rates would result in a $2.0 million change in annual interest expense[359]. - The company has not entered into any interest rate swap contracts as of December 31, 2022, to mitigate interest rate fluctuations[358]. - Inflationary factors may adversely affect the company's operating results, although no material impact has been observed recently[364]. Business Strategy - The company plans to focus on a capital-light model with higher margin revenue streams, leveraging the Playboy brand to attract strategic partners and influencers[34]. - Key growth strategies include expanding the licensing business in China, investing in the digital platform, and enhancing the Honey Birdette retail brand in the U.S.[35]. - The company has made several acquisitions, including yandy.com and Honey Birdette, to expand its proprietary sales platform and enhance its market presence[44]. - The company aims to build a leading pleasure and leisure lifestyle platform, emphasizing creative freedom and artistic expression through its digital strategy[36]. Market Position and Competition - Playboy faces competition from various brands in the consumer goods space, including Amazon and other targeted retailers, but believes its strong brand and relationships with creators provide a competitive edge[38]. - The company derived approximately 41% of its revenue from international customers in 2022, with 48% of that revenue denominated in foreign currency[361]. - The company expects the percentage of revenue derived from outside the United States to increase in future periods as it continues to expand globally[361]. Workforce and Compliance - As of December 31, 2022, the company employed 497 full-time and 566 part-time employees, with no union representation[47]. - The company is committed to compliance with various regulatory requirements, which could impact its operations if not adhered to[54]. - The company had a licensee that accounted for approximately 8% of net revenues for the year ended December 31, 2022[360]. Digital Assets and Subscriptions - Playboy's digital content offerings have over 150,000 subscribers and users across its platforms, with revenue generated from creator offerings and subscriptions[31]. - The market price of Ethereum fluctuated between $964 and $3,813 during the year ended December 31, 2022, impacting the carrying value of digital assets[363].

Financial Data and Key Metrics Changes - Third quarter revenue grew 9% year-over-year to $63.6 million, impacted by $1.2 million of FX headwinds and a 27% reduction in marketing spend [38][43] - On a constant currency basis, revenue growth was up 11% [38] - Adjusted EBITDA for the third quarter was over $700,000, a sequential improvement of $3.3 million despite $1.8 million less revenue compared to the second quarter [50] Business Line Data and Key Metrics Changes - Revenue in the direct-to-consumer segment was up 22% year-over-year to $44 million, with a constant currency growth of 25% [38] - Honey Birdette posted a solid growth of 34% year-over-year to just over $21 million, with a constant currency growth of 41% [39] - Playboy e-commerce revenue increased by 58% year-over-year, driven by a 338% increase in email and SMS engagement [41] - Yandy revenue declined 50% year-over-year, while Lovers revenue declined 10% [43] Market Data and Key Metrics Changes - The licensing segment revenue declined 13% year-over-year to $14.9 million, primarily due to a $1.7 million reduction in overages [44] - The macroeconomic environment continues to negatively impact discretionary spending habits, particularly affecting Yandy and Lovers consumers [43] Company Strategy and Development Direction - The company aims to consolidate its DTC businesses and build a recruiter-led digital platform [8] - Continued investment in the Playboy creator platform is seen as a strategic opportunity to lower customer acquisition costs and drive revenue [20][21] - The company plans to integrate the Playboy brand into Lovers stores, launching Playboy pleasure products in time for Valentine's Day [56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation, rising interest rates, and declining discretionary spending on consumer behavior [9][10] - The company has removed nearly $18 million of annualized operating expenses and is focused on further cost reductions [10][49] - Management remains optimistic about the long-term potential of the Playboy brand and its ability to drive growth through creator engagement [35][36] Other Important Information - The company recognized approximately $306 million of impairment charges related to the write-down of goodwill and other intangible assets due to a reduction in financial outlook [45][46] - The company has a stable cash position with over $65 million in cash equivalents, including crypto and restricted cash [50][81] Q&A Session Summary Question: Integration of Playboy and Lovers brands - Management discussed plans to launch Playboy pleasure products in Lovers stores and evaluate new store opportunities branded as Playboy pleasure [56][58] Question: Licensing business in China - Management confirmed no revenue impact from COVID lockdowns as partners pay in advance, but there have been delays due to banking regulations [59][60] - Long-term plans include transitioning the China business into a joint venture for stability and growth [63] Question: Inventory and demand trends - Management noted strong demand for Playboy products during Halloween, while Yandy faced challenges due to reduced paid media spend [67][68] Question: Centerfold go-to-market strategy and competition - Management expressed confidence in the Centerfold product and its integration with the overall Playboy ecosystem, highlighting improvements in technology and creator onboarding [71][75] Question: Cash balances and liquidity - Management reported stable cash balances and discussed balancing reinvestment in growth initiatives with maintaining liquidity [81][84] Question: Potential asset sales - Management indicated a focus on consolidating businesses around core brands and improving operational efficiency, without confirming specific asset sales [96][97]

Acquisitions - The Business Combination with Mountain Crest Acquisition Corp. was completed on February 10, 2021, with an aggregate consideration of approximately $381.3 million, including 23,920,000 shares of common stock and the assumption of up to $142.1 million in net debt [200]. - The acquisition of TLA Acquisition Corp. was finalized on March 1, 2021, for a cash consideration of $24.9 million, expanding the company's presence in the sexual wellness market with 39 stores across five states as of September 30, 2022 [206]. - The acquisition of Honey Birdette was completed on August 9, 2021, for total consideration of $288.8 million, which included approximately $235.0 million in cash and 2,155,849 shares of common stock [207]. - The acquisition of GlowUp Digital Inc. was completed on October 22, 2021, with total consideration valued at approximately $34.4 million at closing, including 548,034 shares of common stock and $342,308 in cash for non-accredited investors [209]. - The company has made substantial investments in acquisitions to enhance its market position and expand its product offerings in the lifestyle sector [206][207][208]. - The company will continue to identify and assess merger and acquisition opportunities to complement organic growth, supported by operating cash flow and balance sheet flexibility [213]. Financial Performance - Net revenues increased by $5.3 million, or 9%, primarily due to an increase in direct-to-consumer revenue of $8.0 million, with $13.0 million attributable to the acquisition of Honey Birdette [236]. - Revenues from China (including Hong Kong) accounted for 16.8% and 16.3% of total revenues for the three and nine months ended September 30, 2022, respectively, indicating a reduced reliance on China licensing revenues [211]. - Cost of sales increased by $10.3 million, or 39%, primarily due to direct-to-consumer costs related to the acquisition of Honey Birdette and inventory reserve charges [237]. - Selling and administrative expenses rose by $6.3 million, or 17%, driven by increased direct-to-consumer costs and higher employee compensation costs, including $3.7 million in stock-based compensation [238]. - The operating loss for the three months ended September 30, 2022, was $312.9 million, compared to a loss of $5.5 million in the same period of 2021 [234]. - The company reported a net loss of $264.7 million for the three months ended September 30, 2022, compared to a net loss of $7.7 million in the same period of 2021 [234]. - Total operating expense increased significantly, leading to an operating loss of $312.2 million compared to a loss of $13.5 million in the previous year [246]. - For the three months ended September 30, 2022, net loss was $264.7 million, compared to a net loss of $7.7 million for the same period in 2021 [264]. - Net loss attributable to PLBY Group, Inc. was $267.5 million, compared to a net loss of $21.6 million in the prior year [246]. - For the nine months ended September 30, 2022, the company incurred a net loss of $267.5 million, with net cash used in operating activities amounting to $56.9 million [302]. Revenue Segments - The company operates through three reportable segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content, focusing on diverse revenue streams from consumer products and digital offerings [199]. - Direct-to-Consumer segment net revenues increased by $8.0 million, or 22.2%, for the three months ended September 30, 2022, primarily due to $13.0 million from the acquisition of Honey Birdette [270]. - Licensing segment net revenues decreased by $2.3 million, or 13.3%, for the three months ended September 30, 2022, primarily due to a decline in overages from licensing partners [267]. Impairments and Expenses - Impairments totaled $301.9 million, representing a 100% increase compared to the previous year, significantly impacting operating loss [234]. - Impairments increased by $308.2 million, or 100%, primarily due to impairment charges on Playboy-branded trademarks and goodwill [253]. - Operating income for the Direct-to-Consumer segment decreased by $190.2 million, or over 100%, for the three months ended September 30, 2022, primarily due to $184.8 million of non-cash impairment charges [272]. - Selling and administrative expenses rose by $19.6 million, or 21%, driven by increased costs associated with the acquisition of Honey Birdette and higher employee compensation [251]. Cash Flow and Liquidity - The company’s main source of liquidity includes cash generated from operating activities and proceeds from the issuance of Series A Preferred Stock totaling $50 million in 2022 [282]. - As of September 30, 2022, the company's cash balance was $60.1 million, sufficient to fund operations for at least the next 12 months [287]. - The company raised $48.3 million from the issuance of preferred stock, contributing to net cash provided by financing activities of $37.1 million for the nine months ended September 30, 2022 [306]. - Cash flows from operating activities showed a significant increase in net cash outflows from changes in working capital, totaling $44.4 million for the nine months ended September 30, 2022 [302]. - The company may seek additional equity or debt financing in the future to satisfy capital requirements or fund growth opportunities [287]. Market Strategy and Risks - The company emphasizes its strategy in the Sexual Wellness, Style and Apparel, Gaming and Lifestyle, and Beauty and Grooming market categories, reaching millions of consumers globally [198]. - The company reported significant risks and uncertainties that could impact future performance, including the effects of the COVID-19 pandemic and potential disruptions from acquisitions [196]. - The company has a focus on maintaining its Nasdaq listing and managing growth profitably while navigating economic challenges such as inflation and supply chain disruptions [196]. - Inflationary factors may adversely affect the company's operating results, although no material impact has been observed in recent periods [320]. Interest and Taxation - Interest expense increased by $3.3 million, or 36%, primarily due to incremental borrowings and higher interest rates [255]. - Benefit from income taxes increased from $1.6 million to $47.4 million, primarily related to impairment of intangible assets and other tax adjustments [259]. - A 1% increase or decrease in underlying interest rates would result in a change of $2.3 million in annual interest expense [315]. - The company has not entered into any interest rate swap contracts as of September 30, 2022, to mitigate interest rate fluctuations [314]. Other Financial Information - The fair value remeasurement gain was $9.1 million, contributing positively to nonoperating income for the period [234]. - The company recognized a net gain of $5.8 million from the sale of an aircraft in September 2022 [286]. - The company completed the sale of the aircraft for $17.5 million, resulting in a net gain of $5.8 million [298]. - The company recorded an unrealized loss of $10.3 million for the three months ended September 30, 2022, primarily due to the strengthening of the U.S. dollar against the Australian dollar [318]. - Impairment losses on the company's Ethereum digital assets were $4.9 million for the nine months ended September 30, 2022 [319]. - The company has not adopted any new accounting pronouncements that would materially affect its financial statements for the quarter ended September 30, 2022 [311]. - There were no material changes to the company's critical accounting policies or estimates during the nine months ended September 30, 2022 [310].

PLBY Group, Inc. (NASDAQ:PLBY) Q2 2022 Results Conference Call August 9, 2022 5:00 PM ET Company Participants Ashley DeSimone - Investor Relations Ben Kohn - Chief Executive Officer Lance Barton - Chief Financial Officer Ashley Kechter - President of Global Consumer Business Conference Call Participants Alex Fuhrman - Craig-Hallum George Kelly - Roth Capital Partners Jason Tilchen - Canaccord Genuity Jim Duffy - Stifel Ashley DeSimone Good afternoon, everyone, and welcome to PLBY Group’s Second Quarter 2022 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39312 PLBY Group, Inc. (Exact name of registrant as specified in its charter) (Address of principal executive offices including z ...

PLBY Group, Inc. (NASDAQ:PLBY) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Ashley DeSimone - Managing Director at ICR Ben Kohn - Chief Executive Officer Lance Barton - Chief Financial Officer Conference Call Participants Jason Tilchen - Canaccord Genuity Alex Fuhrman - Craig-Hallum Capital Group George Kelly - Roth Capital Partners Daniel Adam - Loop Capital Markets Brian Dobson - Chardan Capital Markets Operator Good afternoon and welcome to the PLBY Group Incorporated Q1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39312 PLBY Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Business Combinations and Acquisitions - The Business Combination with MCAC was completed on February 10, 2021, with an aggregate consideration of approximately $381.3 million, including 23,920,000 shares of MCAC common stock and the assumption of up to $142.1 million in net debt[233]. - The acquisition of TLA Acquisition Corp was completed for $24.9 million in cash, consolidating TLA's operations, which include 41 stores across five states, into the company's results starting March 1, 2021[240]. - The acquisition of Honey Birdette was finalized on August 9, 2021, with total consideration of $327.7 million, including $235.0 million in cash and shares valued at $92.7 million, enhancing the company's luxury lingerie portfolio[241]. - The acquisition of GlowUp Digital Inc. was completed on October 22, 2021, with total consideration valued at approximately $34.4 million, enabling the launch of a new creator-led social content platform[244]. - The company continues to assess merger and acquisition opportunities to complement organic growth, supported by operating cash flow and balance sheet flexibility[253]. Financial Performance - Net revenues increased by $98.9 million, or 67%, primarily due to higher direct-to-consumer revenue of $83.7 million from the acquisitions of TLA and Honey Birdette, along with growth on Playboy.com[277]. - The company reported an operating loss of $68.9 million for the year ended December 31, 2021, compared to an operating income of $13.6 million in 2020[275]. - The company experienced a net loss of $77.7 million for the year ended December 31, 2021, compared to a net loss of $5.3 million in 2020[275]. - Adjusted EBITDA for 2021 was $32.4 million, an increase from $28.4 million in 2020, reflecting improved operational performance[292]. - Total net revenues for 2021 reached $246.6 million, a 67% increase from $147.7 million in 2020, driven by significant growth in Direct-to-Consumer and Digital Subscriptions segments[295]. Revenue Streams - Licensing revenues from China, which constituted 48% of total revenue in 2019, decreased to 17.7% by the end of 2021 due to increased North American consumer product sales[251]. - The company plans to continue expanding its consumer products business while reducing reliance on licensing revenues from China[249]. - Direct-to-Consumer net revenues surged by $83.7 million, or 131%, in 2021 compared to 2020, largely due to acquisitions and higher e-commerce sales[298]. - Digital Subscriptions and Content net revenues increased by $12.8 million, or 61%, in 2021, primarily from sales of tokenized digital art and collectibles[300]. Expenses and Costs - Selling and administrative expenses rose by $141.4 million, or 241%, driven by higher stock-based compensation and costs associated with being a newly public company[279]. - Cost of sales increased by $39.8 million, or 53%, mainly due to increased direct-to-consumer revenue and inventory step-ups from acquisitions[278]. - Corporate expenses rose by $83.5 million, or 217%, in 2021, mainly due to increased stock-based compensation and acquisition-related costs[303]. Financing Activities - The company raised $202.9 million in net proceeds from a public offering of 4,720,000 shares at $46 per share in June 2021[248]. - The New Credit Agreement established a $160 million senior secured term loan with a maturity date of May 25, 2027, replacing the previous credit facility[245]. - The company entered into an amendment to the New Credit Agreement, obtaining a $70 million incremental term loan, increasing total term loan indebtedness to $230 million[312]. - Net cash provided by financing activities was $370.5 million for the year ended December 31, 2021, mainly from net proceeds of a public offering and long-term debt issuance[323]. Cash Flow and Liquidity - As of December 31, 2021, the company had cash of $69.2 million, which is expected to be sufficient to fund operations for at least the next 12 months[306]. - Net cash used in operating activities was $36.7 million for the year ended December 31, 2021, including a net loss of $77.7 million[320]. - Net cash used in investing activities was $273.2 million for the year ended December 31, 2021, primarily due to acquisitions and aircraft purchase[322]. Assets and Liabilities - As of December 31, 2021, the company had cash of $69.2 million and outstanding debt obligations of $237.4 million, accruing interest at a rate of 6.25%[354][355]. - The company had fixed lease commitments of $25.4 million as of December 31, 2021, with $3.4 million due in the next 12 months[318]. - The company was in compliance with financial covenants under the New Credit Agreement as of December 31, 2021[314]. Tax and Impairment - Provision for income taxes changed from a tax expense of $7.1 million in 2020 to a tax benefit of $2.8 million in 2021, primarily due to the offset of deferred tax liabilities by net operating losses[287]. - The company recorded an impairment loss of approximately $1.0 million related to digital assets during the year ended December 31, 2021[347][359]. - The company recorded no impairment charges to goodwill during the periods presented, following annual impairment tests[342]. Market and Currency Risks - Approximately 38% of the company's revenue for the year ended December 31, 2021, was derived from international customers, with expectations for this percentage to increase in future periods[357]. - The company expects that changes in foreign currency exchange rates may negatively affect revenue and operating results, particularly with significant international revenues[357]. - The market price of Ethereum fluctuated between $3,533 and $4,814 during the fourth quarter of 2021, impacting the carrying value of digital assets[359].

PLBY Group, Inc. (NASDAQ:PLBY) Q4 2021 Earnings Conference Call March 1, 2022 5:00 PM ET Company Participants Ashley DeSimone - MD at ICR, IR Ben Kohn - CEO Ashley Kechter - President of Global Consumer Goods Lance Barton - CFO Conference Call Participants Alex Fuhrman - Craig Hallum Jim Duffy - Stifel George Kelly - ROTH Capital Partners Austin Moldow - Canaccord Brian Dobson - Chardan Ashley DeSimone Good afternoon, everyone and welcome to PLBY Group's Fourth Quarter and Fiscal Year 2021 Earnings Confere ...