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 second quarter
ended June 30, 2023.
Comments from Ben Kohn, Chief Executive
Officer of PLBY Group
“During the second quarter, we continued to make
significant progress transitioning the business to a capital-light
model and made substantial improvements to our creator platform.
The creator platform continues to demonstrate compelling growth at
this early stage, and generated GMV that was 2.2x over Q1’23, after
another quarter of rapid topline expansion. If you annualize our
weekly GMV today, assuming zero growth, we would do in excess of
$35 million of GMV, up from the $25 million on our Q1’23 earnings
call. At the end of July, we had almost 2.6 million registered
users, up 37% from approximately 1.9 million at the end of April.
In addition, we had close to 4,000 earning creators at the end of
July, up 82% from 2,200 at the end of April. Of the approximately
4,000 earning creators, almost 1,400 began earning for the first
time in July, primarily in the second half of the month.
During the quarter, we focused on continuing to
improve the platform through data. The most important improvement
was reducing friction in onboarding new creators, a process that
historically was very labor intensive because we lacked certain
tools that would allow us to open the creator funnel wider. In
fact, during the quarter we slowed down the creator acquisition
funnel as we focused on rolling out a new process and technology.
We fully reworked the onboarding process, and in mid-July opened
the platform to all creators that want to join. We reworked our
discovery channel so that, from a brand perspective, our editors
still control who shows up in discovery. The changes also allow us
to reallocate resources and capital to focus more on overall
platform marketing versus individual creator recruitment and
onboarding. We also started testing legacy content on the platform,
porting over 12 former Playmate galleries as part of our plan to
consolidate multiple offerings into a single technology stack and
platform. In addition, we rolled out a new and improved live
feature.
We also made significant progress reducing costs
further and moving to a capital-light model. First, we successfully
completed the outsourcing of our Playboy e-commerce business, from
which we will receive 15% of net revenues as a licensing fee. Our
licensee brings a wealth of experience and a proven track record of
success in developing and executing direct-to-consumer e-commerce
strategies, and their passion for our brand and understanding of
today’s consumer are unparalleled.
In addition, we made progress in our effort to
monetize our art collection and other items from our archives. We
are in discussions with leading auction houses, including updating
appraisals, and intend to commence sales before the end of the
year.
We received multiple offers for Lovers, and
continue to pursue its sale. Given how far along we are in the sale
process, we are no longer reporting Lovers in the
direct-to-consumer segment and have moved its results to
discontinued operations.
Our second quarter financial results reflect
ongoing challenges in the direct-to-consumer space. Honey Birdette
continues to face macroeconomic headwinds, especially in Australia.
The China economy continues to be weak from a consumer spending
perspective, and the geopolitical situation is challenging, which
makes collecting money from China more difficult. For example, a
licensee which owed us $3.8 million by the end of the second
quarter has only paid us $2.6 million, to date. Therefore, we were
not able to book the full revenue from that license in the quarter.
We are working with our joint venture partner on the plan we
discussed during our Q1’23 earnings call to take back our
e-commerce stores from an ownership and brand perspective, as we
clean up past licensing agreements.
While we navigate headwinds impacting our
revenue performance, we made progress continuing to reduce the
expenses of the business. In addition to the cost cuts we
previously outlined, we have identified another $8.5 million of
potential savings, a part of which we have already taken out.
Furthermore, this quarter was burdened by approximately $1.7
million of losses associated with business wind-down and transition
costs and $0.6 million of EBITDA being taken out as a result of
discontinued operations presentation.”
Second Quarter 2023 Financial
Highlights
- Revenue from continuing operations
was $35.1 million, and total consolidated revenue, including
$10.0 million from discontinued operations was $45.1 million. This
represents a 31.0% decline from total consolidated revenue in Q2’22
of $65.4 million, of which $17.5 million was from discontinued
operations and $47.9 million was from continuing operations.1 The
decline in revenue was primarily attributable to lower revenue from
the Company’s licensing and direct-to-consumer business segments,
as well as sale of the Company’s Yandy business in April 2023.
- Net loss from continuing operations
was $134.3 million, largely driven by non-cash asset
impairments related to the write-down of goodwill, trademarks and
other assets of $148.2 million. The adjusted EBITDA loss from
continued operations was $1.3 million, which included $1.7 million
loss attributed to playboy.com e-commerce business wind-down costs
and China joint venture transition costs. Without these costs,
adjusted EBITDA from continued operations would have been $0.4
million. Furthermore, as EBITDA from discontinued operations was
$0.6 million, total adjusted EBITDA would have been a $1
million.2
Total revenue from continuing
operations in the second quarter was $35.1 million versus
$47.9 million in the prior year period, reflecting a year-over-year
decrease of 26.7%. Of the $12.8 million decline in revenue, $5.6
million was attributable to licensing, $4.1 million was
attributable to Honey Birdette, and $3.3 million was
attributable to playboy.com consumer products, partially offset by
a $0.2 million increase attributable to the Company’s digital
and other segments.
Direct-to-consumer revenue from
continuing operations declined 27.2%% year-over-year to
$19.7 million. During the second quarter, revenue from Honey
Birdette declined $4.1 million, or 18.2% year-over-year, to
$18.3 million from $22.4 million. The Company believes
the consumer is still looking for discounts, as evidenced by only
small declines in traffic to stores and the Honey Birdette online
shop, yet substantially lower conversion rates. As another example,
Honey Birdette’s comparable store sales were up significantly in
May, due to its successful Memorial Day sale. During the second
quarter, the Company generated $1.4 million of residual sales from
playboy.com e-commerce, as it transitioned to a new licensee, as
compared to $4.7 million a year ago, when PLBY Group fully operated
the playboy.com e-commerce business. The Company is no longer
reporting Lovers in the direct-to-consumer segment, given how far
along it is in the sale process.
Licensing revenue declined
35.2% year-over-year to $10.3 million. China licensing revenues
declined $3.5 million during the second quarter. Given that the
Company has experienced challenges collecting receivables in China
in the last couple of quarters, the Company has adjusted its
revenue forecasts going forward. As a result, PLBY Group would
expect to see continued year-over-year decline in the China
licensing business in the second half of the year. Domestic and
rest-of-world licensing revenues declined $2.1 million versus the
prior year. Domestic licensing is still being impacted by similar
declines in year-over-year sales the Company is seeing with its
larger licensees.
Legacy digital and creator platform
revenue was up mid-single digits compared to a year ago,
to $5.1 million from $4.7 million. The decline in the legacy
digital business was more than offset by revenue growth from the
creator platform.
Net loss in Q2’23 expanded to
$133.9 million, from a net loss of $8.3 million in Q2’22. The
higher loss is largely driven by $148.2 million of non-cash asset
impairments related to the write-down of goodwill, trademarks and
other assets recorded in Q2’23, while there was only $3.9 million
of such impairments in Q2’22.
Adjusted EBITDA
loss from continuing operations improved from $2.5
million to $1.3 million, year-over-year. This reflects the decline
in revenue and gross profit, which was offset by headcount
reductions, accounting impacts driven by changes in the China
business and various cost savings the Company has been implementing
since the third quarter of 2022. In addition, second quarter
results include $1.7 million of losses attributable to playboy.com
e-commerce business wind-down costs and China joint venture
transition costs. Without these costs, adjusted EBITDA from
continued operations would have been $0.4 million. Furthermore,
EBITDA from discontinued operations was $0.6 million. Total
adjusted EBITDA would have been $1 million.
The Company ended the second quarter with $36.4
million in restricted and unrestricted cash.
Webcast DetailsThe Company will
host a question and answer webcast for analysts today at 5:00 p.m.
Eastern Time. Listeners may access the live and replay 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 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 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 impact of public health
crises and epidemics 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
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; (4) the ability to recognize the
anticipated benefits of corporate transactions, 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 the Company's ability to retain its key employees;
(5) costs related to being a public company, corporate
transactions, 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 delays, 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 the Company’s intangible
assets, including goodwill; (9) risks related to the organic and
inorganic growth of the Company’s businesses, and the timing of
expected business milestones; (10) changing demand or shopping
patterns for the Company's products and services; (11) failure of
licensees, suppliers or other third-parties to fulfill their
obligations to the Company; (12) the Company's ability to comply
with the terms of its indebtedness and other obligations; (13)
changes in financing markets or the inability of the Company to
obtain financing on attractive terms; and (14) 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.com Media: press@plbygroup.com
|
PLBY Group, Inc. |
Condensed Consolidated Statements of
Operations |
(Unaudited) |
(in thousands, except share and per share
amounts) |
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net revenues |
$ |
35,101 |
|
|
$ |
47,881 |
|
|
$ |
70,304 |
|
|
$ |
94,941 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of sales |
|
(10,859 |
) |
|
|
(19,545 |
) |
|
|
(32,636 |
) |
|
|
(37,531 |
) |
Selling and administrative expenses |
|
(32,592 |
) |
|
|
(38,613 |
) |
|
|
(74,179 |
) |
|
|
(78,786 |
) |
Contingent consideration fair value remeasurement gain |
|
75 |
|
|
|
8,641 |
|
|
|
267 |
|
|
|
27,939 |
|
Impairments |
|
(148,190 |
) |
|
|
(3,940 |
) |
|
|
(148,190 |
) |
|
|
(6,299 |
) |
Other operating income, net |
|
259 |
|
|
|
— |
|
|
|
249 |
|
|
|
— |
|
Total operating expense |
|
(191,307 |
) |
|
|
(53,457 |
) |
|
|
(254,489 |
) |
|
|
(94,677 |
) |
Operating (loss) income |
|
(156,206 |
) |
|
|
(5,576 |
) |
|
|
(184,185 |
) |
|
|
264 |
|
Nonoperating income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(5,757 |
) |
|
|
(4,083 |
) |
|
|
(10,966 |
) |
|
|
(8,133 |
) |
Gain on extinguishment of debt |
|
7,980 |
|
|
|
— |
|
|
|
6,133 |
|
|
|
— |
|
Fair value remeasurement gain |
|
9,523 |
|
|
|
1,754 |
|
|
|
6,505 |
|
|
|
1,754 |
|
Other income (expense), net |
|
175 |
|
|
|
(347 |
) |
|
|
250 |
|
|
|
(479 |
) |
Total nonoperating income (expense) |
|
11,921 |
|
|
|
(2,676 |
) |
|
|
1,922 |
|
|
|
(6,858 |
) |
Loss from continuing operations before income taxes |
|
(144,285 |
) |
|
|
(8,252 |
) |
|
|
(182,263 |
) |
|
|
(6,594 |
) |
Benefit from income taxes |
|
9,950 |
|
|
|
140 |
|
|
|
11,620 |
|
|
|
2,648 |
|
Net loss from continuing operations |
|
(134,335 |
) |
|
|
(8,112 |
) |
|
|
(170,643 |
) |
|
|
(3,946 |
) |
Income (loss) from discontinued operations, net of tax |
|
452 |
|
|
|
(203 |
) |
|
|
(920 |
) |
|
|
1,174 |
|
Net loss |
|
(133,883 |
) |
|
|
(8,315 |
) |
|
|
(171,563 |
) |
|
|
(2,772 |
) |
Net loss attributable to PLBY Group, Inc. |
$ |
(133,883 |
) |
|
$ |
(8,315 |
) |
|
$ |
(171,563 |
) |
|
$ |
(2,772 |
) |
Net loss per share from continuing operations, basic and
diluted |
$ |
(1.79 |
) |
|
$ |
(0.17 |
) |
|
$ |
(2.43 |
) |
|
$ |
(0.09 |
) |
Net income (loss) per share from discontinued operations, basic and
diluted |
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
0.03 |
|
Weighted-average shares outstanding, basic and diluted |
|
74,916,379 |
|
|
|
46,604,046 |
|
|
|
70,129,055 |
|
|
|
46,258,833 |
|
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 all companies may not
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 nonoperating expenses and income,
such as non-recurring special projects including the implementation
of internal controls, expenses associated with financing
activities, reorganization and severance resulting in the
elimination or rightsizing of specific business activities or
operations and non-recurring gains (losses) on the sale of business
units.
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) income 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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss from continuing operations |
$ |
(134,335 |
) |
|
$ |
(8,112 |
) |
|
$ |
(170,643 |
) |
|
$ |
(3,946 |
) |
Adjusted for: |
|
|
|
|
|
|
|
Interest expense |
|
5,757 |
|
|
|
4,083 |
|
|
|
10,966 |
|
|
|
8,133 |
|
Gain on extinguishment of debt |
|
(7,980 |
) |
|
|
— |
|
|
|
(6,133 |
) |
|
|
— |
|
Benefit from income taxes |
|
(9,950 |
) |
|
|
(140 |
) |
|
|
(11,620 |
) |
|
|
(2,648 |
) |
Depreciation and amortization |
|
1,848 |
|
|
|
1,992 |
|
|
|
3,537 |
|
|
|
5,056 |
|
EBITDA |
|
(144,660 |
) |
|
|
(2,177 |
) |
|
|
(173,893 |
) |
|
|
6,595 |
|
Adjusted for: |
|
|
|
|
|
|
|
Stock-based compensation |
|
3,151 |
|
|
|
4,747 |
|
|
|
8,370 |
|
|
|
11,286 |
|
Adjustments |
|
1,623 |
|
|
|
1,426 |
|
|
|
4,843 |
|
|
|
2,715 |
|
Inventory reserve charges |
|
— |
|
|
|
— |
|
|
|
3,637 |
|
|
|
— |
|
Contingent consideration fair value remeasurement |
|
(75 |
) |
|
|
(8,641 |
) |
|
|
(267 |
) |
|
|
(27,939 |
) |
Mandatorily redeemable preferred stock fair value
remeasurement |
|
(9,523 |
) |
|
|
(1,754 |
) |
|
|
(6,505 |
) |
|
|
(1,754 |
) |
Impairments |
|
148,190 |
|
|
|
3,940 |
|
|
|
148,190 |
|
|
|
6,299 |
|
Write-down of capitalized software |
|
— |
|
|
|
— |
|
|
|
4,632 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(1,294 |
) |
|
$ |
(2,459 |
) |
|
$ |
(10,993 |
) |
|
$ |
(2,798 |
) |
|
Revenue from Continuing Operations to Total Revenue
Reconciliation |
(in thousands, except percentages) |
|
|
Three Months EndedJune 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
PLBY Group revenue from continuing operations |
$ |
35,101 |
|
|
$ |
47,881 |
|
|
(26.7 |
) |
% |
Yandy revenue (discontinued operations) |
|
82 |
|
|
|
5,812 |
|
|
|
|
|
Lovers revenue (discontinued operations) |
|
9,920 |
|
|
|
11,721 |
|
|
|
|
|
Total PLBY Group revenue |
$ |
45,103 |
|
|
$ |
65,414 |
|
|
(31.0 |
) |
% |
|
Adjusted EBITDA Loss from Continuing Operations to Total
Adjusted EBITDA Loss Reconciliation |
(in thousands, except percentages) |
|
|
Three Months EndedJune 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
PLBY Group adjusted EBITDA loss from continuing operations |
$ |
(1,294 |
) |
|
$ |
(2,459 |
) |
|
(47.4 |
) |
% |
Income (loss) from discontinued operations, net of tax |
|
452 |
|
|
|
(203 |
) |
|
|
|
|
Lovers depreciation and amortization |
|
139 |
|
|
|
195 |
|
|
|
|
|
Yandy depreciation and amortization |
|
— |
|
|
|
269 |
|
|
|
|
|
Yandy and Lovers other EBITDA adjustments |
|
39 |
|
|
|
— |
|
|
|
|
|
Total PLBY Group adjusted EBITDA loss |
$ |
(664 |
) |
|
$ |
(2,198 |
) |
|
(69.8 |
) |
% |
1 See the revenue reconciliation at the end of this
press release.2 See the adjusted EBITDA reconciliation at the end
of this press release.
PLBY (NASDAQ:PLBY)
過去 株価チャート
から 5 2024 まで 6 2024
PLBY (NASDAQ:PLBY)
過去 株価チャート
から 6 2023 まで 6 2024