Operational Highlights
- Multiple new multi-year brand licensing agreements re-position
China as a platform for growth - Second consecutive quarter of growth at
Honey Birdette , while expanding gross margins and profitability - Increasing focus and attention on the Playboy brand and scaling the creator platform
- Substantial reduction in overhead enables significant narrowing of net losses and Adjusted EBITDA losses
Comments from
“Over the past several months, we have stabilized our core business as we have executed on the key goals from 2023, and we can now shift our focus to accelerating growth in our areas of strategic priority. Net loss from continuing operations narrowed 55% and adjusted EBITDA loss narrowed 74% compared to the first quarter of 2023, as costs and expenses were reduced significantly more than revenues. This progress comes even with
“In China, through our joint venture we have entered into multiple new brand licensing agreements, each with shorter terms and achievable minimum guarantees designed to incentivize investment in the brand by licensees while we retain flexibility. The new agreements are highlighted by a five-year license agreement with
“At Honey Birdette, we posted a second consecutive quarter of positive sales growth, while expanding gross margins and significantly improving profitability, both year-over-year and sequentially. Specifically, our sales grew 8% quarter-over-quarter and our gross margin expanded from 43% to 52% during the same period. With new momentum based on recent growth, we believe the time is right to actively seek a new partner or owner of the
“We continue to believe one of the most powerful tools we have to grow the Playboy brand is our creator platform,
First Quarter 2024 Financial Highlights
Total revenue was
Direct-to-consumer revenue from continuing operations declined
Licensing revenue declined
Digital subscriptions and content revenue increased 16%, to
Net loss from continuing operations was
Total net loss was
Adjusted EBITDA loss was
The Company ended the first quarter with approximately
Webcast Details
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About
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
Contact:
Investors: FNK IR –
Media: press@plbygroup.com
Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net revenues | $ | 28,319 | $ | 35,203 | |||
Costs and expenses: | |||||||
Cost of sales | (12,507 | ) | (21,777 | ) | |||
Selling and administrative expenses | (22,312 | ) | (41,405 | ) | |||
Impairments | (2,417 | ) | — | ||||
Total costs and expenses | (37,236 | ) | (63,182 | ) | |||
Operating loss | (8,917 | ) | (27,979 | ) | |||
Nonoperating (expense) income: | |||||||
Interest expense | (6,427 | ) | (5,209 | ) | |||
Loss on extinguishment of debt | — | (1,848 | ) | ||||
Fair value remeasurement loss | — | (3,018 | ) | ||||
Other (expense) income, net | (50 | ) | 76 | ||||
Total nonoperating expense | (6,477 | ) | (9,999 | ) | |||
Loss from continuing operations before income taxes | (15,394 | ) | (37,978 | ) | |||
(Expense) benefit from income taxes | (1,053 | ) | 1,670 | ||||
Net loss from continuing operations | (16,447 | ) | (36,308 | ) | |||
Loss from discontinued operations, net of tax | — | (1,372 | ) | ||||
Net loss | (16,447 | ) | (37,680 | ) | |||
Net loss attributable to | $ | (16,447 | ) | $ | (37,680 | ) | |
Net loss per share from continuing operations, basic and diluted | $ | (0.23 | ) | $ | (0.56 | ) | |
Net loss per share from discontinued operations, basic and diluted | $ | — | $ | (0.02 | ) | ||
Net loss per share, basic and diluted | $ | (0.23 | ) | $ | (0.58 | ) | |
Weighted-average shares used in computing net loss per share, basic and diluted | 72,677,664 | 65,159,156 |
EBITDA 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
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 our GAAP results and using EBITDA and Adjusted EBITDA on a supplemental basis. Investors should review the reconciliation of net (loss) income to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.
The following table reconciles the Company’s net loss to EBITDA and Adjusted EBITDA:
GAAP Net Loss to Adjusted EBITDA Reconciliation (in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net loss | $ | (16,447 | ) | $ | (37,680 | ) | |
Adjusted for: | |||||||
Loss from discontinued operations, net of tax | — | (1,372 | ) | ||||
Net loss from continuing operations | (16,447 | ) | (36,308 | ) | |||
Adjusted for: | |||||||
Interest expense | 6,427 | 5,209 | |||||
Loss on extinguishment of debt | — | 1,848 | |||||
Expense (benefit) from income taxes | 1,053 | (1,670 | ) | ||||
Depreciation and amortization | 1,800 | 1,689 | |||||
EBITDA | (7,167 | ) | (29,232 | ) | |||
Adjusted for: | |||||||
Stock-based compensation | 1,834 | 5,219 | |||||
Impairments | 2,417 | — | |||||
Inventory reserve charges | — | 3,637 | |||||
Write-down of capitalized software | — | 4,632 | |||||
Adjustments | 367 | 3,028 | |||||
Mandatorily redeemable preferred stock fair value remeasurement | — | 3,018 | |||||
Adjusted EBITDA | $ | (2,549 | ) | $ | (9,698 | ) |
Source:
2024 GlobeNewswire, Inc., source