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 provided financial results for the third quarter ended
September 30, 2022.
“Although our short-term results continued to be
impacted by global macroeconomic headwinds, we made solid progress
in the third quarter against our long-term goals to build out our
consumer products business and enhance the Playboy creator
platform,” said PLBY Group’s Chief Executive Officer Ben Kohn. “We
remain hyper focused on these goals, and I believe we have the
right strategy and management team in place to successfully execute
our vision for the future of the Company.”
Third Quarter 2022 Financial
Highlights
- Revenue grew 9% year-over-year, to
$63.6 million. On a constant currency basis, revenue would have
been $64.8 million, with year-over-year growth of 11%.
- Direct-to-consumer revenue grew 22%
year-over-year, to $44.0 million, driven by the continued strong
growth of Honey Birdette and Playboy e-commerce.
- Net loss was $264.7 million and
adjusted EBITDA was $0.8 million, largely driven by non-cash asset
impairment charges related to the write-down of goodwill,
trademarks and other assets of $301.9 million.
Webcast DetailsThe Company will
host a webcast at 5:00 p.m. Eastern Time today to discuss the third
quarter 2022 financial results. Participants may access the live
webcast on the events section of the PLBY Group, Inc. Investor
Relations website at
https://www.plbygroup.com/investors/events-and-presentations.
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,
driving billions of dollars annually in global consumer spending
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 almost seven decades 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 StatementsThis
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 acquisitions 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 impact of the COVID-19
pandemic on the Company’s business and acquisitions; (2) the
inability to maintain the listing of the Company’s shares of common
stock on Nasdaq; (3) the risk that the Company’s business
combination, acquisitions or any 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 them; (4) the ability to
recognize the anticipated benefits of the business combination,
acquisitions, commercial collaborations, commercialization of
digital assets and proposed transactions, which may be affected by,
among other things, competition, the ability of the Company to grow
and manage growth profitably, and retain its key employees; (5)
costs related to being a public company, acquisitions, commercial
collaborations and proposed transactions; (6) changes in applicable
laws or regulations; (7) the possibility that the Company may be
adversely affected by global hostilities, supply chain disruptions,
inflation, interest rates, foreign currency exchange rates or other
economic, business, and/or competitive factors; (8) risks relating
to the uncertainty of the projected financial information of the
Company, including changes in our estimates of the fair value of
certain of our intangible assets; (9) risks related to the organic
and inorganic growth of the Company’s business, and the timing of
expected business milestones; and (10) 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)
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net revenues |
$ |
63,624 |
|
|
$ |
58,356 |
|
|
$ |
198,416 |
|
|
$ |
150,887 |
|
Costs and expenses |
|
|
|
|
|
|
|
Cost of sales |
|
(36,814 |
) |
|
|
(26,491 |
) |
|
|
(93,772 |
) |
|
|
(69,190 |
) |
Selling and administrative expenses |
|
(43,692 |
) |
|
|
(37,375 |
) |
|
|
(114,524 |
) |
|
|
(94,936 |
) |
Related party expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(250 |
) |
Impairments |
|
(301,865 |
) |
|
|
— |
|
|
|
(308,161 |
) |
|
|
— |
|
Gain on sale of the aircraft |
|
5,802 |
|
|
|
— |
|
|
|
5,802 |
|
|
|
— |
|
Total operating expense |
|
(376,569 |
) |
|
|
(63,866 |
) |
|
|
(510,655 |
) |
|
|
(164,376 |
) |
Operating loss |
|
(312,945 |
) |
|
|
(5,510 |
) |
|
|
(312,239 |
) |
|
|
(13,489 |
) |
Nonoperating income
(expense): |
|
|
|
|
|
|
|
Interest expense |
|
(4,306 |
) |
|
|
(3,622 |
) |
|
|
(12,439 |
) |
|
|
(9,172 |
) |
Loss on extinguishment of debt |
|
(220 |
) |
|
|
— |
|
|
|
(220 |
) |
|
|
(1,217 |
) |
Fair value remeasurement gain |
|
9,149 |
|
|
|
— |
|
|
|
10,903 |
|
|
|
— |
|
Other (expense) income, net |
|
(499 |
) |
|
|
(47 |
) |
|
|
(896 |
) |
|
|
695 |
|
Total nonoperating income (expense) |
|
4,124 |
|
|
|
(3,669 |
) |
|
|
(2,652 |
) |
|
|
(9,694 |
) |
Loss before income taxes |
|
(308,821 |
) |
|
|
(9,179 |
) |
|
|
(314,891 |
) |
|
|
(23,183 |
) |
Benefit from income taxes |
|
44,124 |
|
|
|
1,480 |
|
|
|
47,422 |
|
|
|
1,571 |
|
Net loss |
|
(264,697 |
) |
|
|
(7,699 |
) |
|
|
(267,469 |
) |
|
|
(21,612 |
) |
Net loss attributable to PLBY
Group, Inc. |
$ |
(264,697 |
) |
|
$ |
(7,699 |
) |
|
$ |
(267,469 |
) |
|
$ |
(21,612 |
) |
Net loss per share, basic and
diluted |
$ |
(5.65 |
) |
|
$ |
(0.18 |
) |
|
$ |
(5.76 |
) |
|
$ |
(0.60 |
) |
Weighted-average shares used
in computing net loss per share, basic and diluted |
|
46,889,983 |
|
|
|
41,877,232 |
|
|
|
46,472,607 |
|
|
|
36,179,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 management, as described below. Adjusted EBITDA
is intended as a supplemental measure of our performance that is
neither required by, nor presented in accordance with, GAAP. We
believe 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 our 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, we may incur future expenses similar to those excluded when
calculating these measures. In addition, our presentation of these
measures should not be construed as an inference that our future
results will be unaffected by unusual or nonrecurring items. Our
computation of Adjusted EBITDA may not be comparable to other
similarly titled measures computed by other companies, because all
companies may not calculate Adjusted EBITDA in the same
fashion.
In addition to adjusting for non-cash
stock-based compensation, fair value remeasurements of certain
liabilities and non-recurring impairment and inventory charges, we
typically adjust for nonoperating expenses and income, such as
management fees paid to one of our stockholders, merger related
bonus payments, non-recurring special projects including the
implementation of internal controls, expenses associated with
financing activities, gain on the sale of assets, the expense
associated with reorganization and severance resulting in the
elimination or rightsizing of specific business activities or
operations as we transform from a print and digital media business
to a commerce centric business.
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. We compensate 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 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(Unaudited)(in
thousands)
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Net loss |
$ |
(264,697 |
) |
|
$ |
(7,699 |
) |
|
$ |
(267,469 |
) |
|
$ |
(21,612 |
) |
Adjusted
for: |
|
|
|
|
|
|
|
Interest expense |
|
4,306 |
|
|
|
3,622 |
|
|
|
12,439 |
|
|
|
9,172 |
|
Loss on extinguishment of debt |
|
220 |
|
|
|
— |
|
|
|
220 |
|
|
|
1,217 |
|
Benefit from income taxes |
|
(44,124 |
) |
|
|
(1,480 |
) |
|
|
(47,422 |
) |
|
|
(1,571 |
) |
Depreciation and amortization |
|
5,775 |
|
|
|
2,260 |
|
|
|
11,737 |
|
|
|
4,022 |
|
EBITDA |
|
(298,520 |
) |
|
|
(3,297 |
) |
|
|
(290,495 |
) |
|
|
(8,772 |
) |
Adjusted
for: |
|
|
|
|
|
|
|
Stock-based compensation |
|
4,543 |
|
|
|
365 |
|
|
|
15,829 |
|
|
|
4,224 |
|
Adjustments |
|
9,192 |
|
|
|
932 |
|
|
|
11,912 |
|
|
|
8,432 |
|
Amortization of inventory step-up |
|
— |
|
|
|
2,148 |
|
|
|
— |
|
|
|
4,398 |
|
Gain on sale of the aircraft |
|
(5,802 |
) |
|
|
— |
|
|
|
(5,802 |
) |
|
|
— |
|
Contingent consideration fair value remeasurement |
|
(1,371 |
) |
|
|
(1,681 |
) |
|
|
(29,310 |
) |
|
|
(1,681 |
) |
Preferred stock fair value remeasurement |
|
(9,149 |
) |
|
|
— |
|
|
|
(10,903 |
) |
|
|
— |
|
Impairments |
|
301,865 |
|
|
|
— |
|
|
|
308,161 |
|
|
|
— |
|
Acquisition related costs |
|
— |
|
|
|
6,685 |
|
|
|
— |
|
|
|
10,903 |
|
Management fees and expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
250 |
|
Adjusted
EBITDA |
$ |
758 |
|
|
$ |
5,152 |
|
|
$ |
(608 |
) |
|
$ |
17,754 |
|
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