Playboy Enterprises Reaches Agreement to Outsource Publishing Functions
2009年11月24日 - 9:48PM
PRニュース・ワイアー (英語)
American Media, Inc. Will Assume Responsibility for Non-Editorial
Functions of Playboy Magazine; PEI Projects Magazine's
Profitability by Year-End 2011 CHICAGO, Nov. 24
/PRNewswire-FirstCall/ -- Playboy Enterprises, Inc. (PEI)
(NYSE:PLANYSE:PLAA) today announced that it has reached an
agreement with American Media, Inc. (AMI) for the outsourcing of
all Playboy magazine functions excluding the editorial product.
AMI, which is the nation's fourth-largest consumer magazine
publisher, will assume responsibility for the production,
circulation, advertising sales, marketing and other support
services of both Playboy magazine and the company's other domestic
publications. Scott N. Flanders, chief executive officer of PEI,
said: "Our goal is to focus our resources on what we do best, which
is to create compelling content. At the same time, we were looking
to partner with companies who can manage the operations of the
magazine more effectively than we can as a stand-alone publisher.
By joining forces with American Media, we will be able to
significantly reduce our cost structure and leverage the economies
of scale related to manufacturing, distribution and marketing that
are available to this large, multi-title publisher. This agreement
also is expected to improve our top-line results as we benefit from
AMI's proven skill in growing newsstand and advertising sales. This
partnership will enable us to generate profits from our magazine
operations in 2011. "Playboy magazine is a vital part of this
company and our brand. We evaluated AMI's outsourcing capabilities
on both a quantitative and qualitative basis, and we are confident
that this partnership will enable us to continue publishing a
magazine that reflects the quality and image of Playboy," Flanders
said. "AMI has an unmatched entrepreneurial culture. Its position
as the only large U.S. publisher to show year-over-year growth in
advertising during the first nine months of this year demonstrates
its capabilities." AMI Chairman and Chief Executive Officer David
J. Pecker said: "By adding Playboy to our stable of cutting edge
men's titles, including Men's Fitness, UFC Magazine, Muscle &
Fitness and Flex, we now deliver over 11 million men 18 - 34 years
of age. That's 34% of all men that age in the country, and it is
almost double our closest competitor. For the first time, an
advertiser can effectively and efficiently talk to this
hard-to-reach demo because our new Young Men's Network combines the
things guys love most - fitness, sports and females - into one
group of brands." Pecker added: "Scott Flanders has done a
masterful job in managing the Playboy empire since taking over. I
couldn't think of a better partner. We are equally excited to work
with publishing legend Hugh Hefner. Playboy has been part of
American culture for over 50 years, and Hef continues to keep the
editorial just as vital today as it was when he launched it." Under
terms of the contract, AMI will be paid negotiated fees to perform
functions currently done by PEI and will be incented to increase
both advertising and circulation revenues. PEI said that Playboy
magazine is expected to lose approximately $8 million in 2009, and,
with this agreement, to reduce that loss to approximately $5
million in 2010 before reaching profitability in late 2011. The
company also said that the agreement will result in a
fourth-quarter restructuring charge of approximately $2.0 million
due to the elimination of approximately 25 positions, some of which
will be transferred to new job openings at AMI. Both companies will
begin working together immediately with a goal of completing the
transition by March 2010. About Playboy Enterprises, Inc. Playboy
is one of the most recognized and popular consumer brands in the
world. Playboy Enterprises, Inc. is a media and lifestyle company
that markets the brand through a wide range of media properties and
licensing initiatives. The company publishes Playboy magazine in
the United States and abroad and creates content for distribution
via television networks, websites, mobile platforms and radio.
Through licensing agreements, the Playboy brand appears on a wide
range of consumer products in more than 150 countries as well as
retail stores and entertainment venues. About American Media, Inc.
American Media, Inc. is the leading publisher of celebrity
journalism and health and fitness magazines in the U.S. These
include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health
and the National Enquirer. In addition to print properties, AMI
manages 14 different web sites. The company also owns Distribution
Services, Inc. the country's #1 in-store magazine merchandising
company. FORWARD-LOOKING STATEMENTS This release contains
"forward-looking statements," as to expectations, beliefs, plans,
objectives and future financial performance, and assumptions
underlying or concerning the foregoing. We use words such as "may,"
"will," "would," "could," "should," "believes," "estimates,"
"projects," "potential," "expects," "plans," "anticipates,"
"intends," "continues" and other similar terminology. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors, which could cause our actual
results, performance or outcomes to differ materially from those
expressed or implied in the forward-looking statements. We want to
caution you not to place undue reliance on any forward-looking
statements. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. The following are some of the important
factors that could cause our actual results, performance or
outcomes to differ materially from those discussed in the
forward-looking statements: (1) Foreign, national, state and local
government regulations, actions or initiatives, including: (a)
attempts to limit or otherwise regulate the sale, distribution or
transmission of adult-oriented materials, including print,
television, video, Internet and mobile materials; or (b)
limitations on the advertisement of tobacco, alcohol and other
products which are important sources of advertising revenue for us;
(2) Risks associated with our foreign operations, including market
acceptance and demand for our products and the products of our
licensees and other business partners; (3) Our ability to
effectively manage our exposure to foreign currency exchange rate
fluctuations; (4) Further changes in general economic conditions,
consumer spending habits, viewing patterns, fashion trends or the
retail sales environment, which, in each case, could reduce demand
for our programming and products and impact our advertising and
licensing revenues; (5) Our ability to protect our trademarks,
copyrights and other intellectual property; (6) Risks as a
distributor of media content, including our becoming subject to
claims for defamation, invasion of privacy, negligence, copyright,
patent or trademark infringement and other claims based on the
nature and content of the materials we distribute; (7) The risk our
outstanding litigation could result in settlements or judgments
which are material to us; (8) Dilution from any potential issuance
of common stock or convertible debt in connection with financings
or acquisition activities; (9) Further competition for advertisers
from other publications, media or online providers or decreases in
spending by advertisers, either generally or with respect to the
men's market; (10) Competition in the television, men's magazine,
Internet, mobile and product licensing markets; (11) Attempts by
consumers, distributors, merchants or private advocacy groups to
exclude our programming or other products from distribution; (12)
Our television, Internet and mobile businesses' reliance on third
parties for technology and distribution, and any changes in that
technology, distribution and/or delays in implementation which
might affect our plans, assumptions and financial results; (13)
Risks associated with losing access to transponders or technical
failure of transponders or other transmitting or playback equipment
that is beyond our control; (14) Competition for channel space on
linear or video-on-demand television platforms; (15) Failure to
maintain our agreements with multiple system operators and
direct-to-home, or DTH, operators on favorable terms, as well as
any decline in our access to households or acceptance by DTH, cable
and/or telephone company systems and the possible resulting
cancellation of fee arrangements, pressure on splits or other
deterioration of contract terms with operators of these systems;
(16) Risks that we may not realize the expected sales and profits
and other benefits from acquisitions; (17) Any charges or costs we
incur in connection with restructuring measures we have taken or
may take in the future; (18) Increases in paper, printing, postage
or other manufacturing costs; (19) Effects of the consolidation of
the single-copy magazine distribution system in the U.S. and risks
associated with the financial stability of major magazine
wholesalers; (20) Effects of the consolidation and/or bankruptcies
of television distribution companies; (21) Risks associated with
the viability of our subscription, ad-supported and e-commerce
Internet models; (22) Our ability to sublet our excess space may be
negatively impacted by the market for commercial rental real estate
as well as by the global economy generally; (23) The risk that our
common stock could be delisted from the New York Stock Exchange, or
NYSE, if we fail to meet the NYSE's continued listing requirements;
(24) Risks that adverse market conditions in the securities and
credit markets may significantly affect our ability to access the
capital markets; (25) The risk that we will be unable to refinance
our 3.00% convertible senior subordinated notes due 2025, or
convertible notes, or the risk that we will refinance our
convertible notes at significantly higher interest rates if credit
markets do not improve prior to the first put date of March 15,
2012; (26) The risk that we are unable to either extend the
maturity date of our existing credit facility beyond the current
expiration date of January 31, 2011 or establish a new facility
with a later maturity date and acceptable terms; and (27) Further
downward pressure on our operating results and/or further
deterioration of economic conditions could result in further
impairments of our long-lived assets including remaining goodwill.
More detailed information about factors that may affect our
performance may be found in our filings with the Securities and
Exchange Commission, which are available at http://www.sec.gov/ or
at http://www.peiinvestor.com/ in the Investor Relations section of
our website. DATASOURCE: Playboy Enterprises, Inc. CONTACT: Playboy
Enterprises, Inc., Martha Lindeman, +1-312-373-2430; or American
Media, Inc., Samantha Trenk, +1-212-545-4896
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