PLBY - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the Playboy Group's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Matt Chesler, Investor Relations. Matt, you may go ahead.

Matt Chesler

Thank you, operator, and good afternoon. be forward-looking everyone entirety information filed Investor website. Today's by this PLBY that which remind also webcast, qualified constitute today today call, call to SEC's Group, its the in the nature, projections may other is like that statements company's including PLBY discussed not the is by website I'd and on Group's accessed replay note historical that may Form posted to will financial being website. Please be statements are in a the and Relations statements. made during or X-K are obligation the and views business statements update to do are of events and the at PLBY we time they these statements. Such Group's made on performance made, future any assumptions undertake regarding and basis not

are the could including forward-looking the and filings results This company's to cause statements its differ more to for in this statements forecasts, SEC, made cautionary to carefully you subject refer which statement information. forth call. all the company's from applies set risks, to results actual and should consider historical those and during with those risks Forward-looking

should forward-looking place any statements. undue You reliance on

call filed directly session. comparable the GAAP Ben begin prepared the accepted Form non-GAAP to its with Group financial to Such today. I'd refer earnings company available measures to call, the with X-K measures accounting like Ben? in PLBY financial accordance non-GAAP measures measures. the are financial this turn During principles. over may A of not in is generally before non-GAAP release, reconciliation now to most the Q&A we

Ben Kohn

for everyone, thanks, Thanks, Matt, and today. us joining

and balance $XX that have quarter have of from liquidity. About like most a ago, investment we the to couple and closed achieved Today, through related that, sheet. something have of the balance preferred we discount the million Q&A, we With a a on week during senior have previously our into to million key restructured review $XX our quickly cash our get sheet this we we senior million. approximately on strategic third our I'd exclusivity a to realized week, for basis, we new lenders, we specifically an a debt have with And last debt. Byborg the of about on our weeks, in just $XX million over the that issued period talked $XX lenders. few a we debt, have where developments Before convertible

in to the at a So the cash any time a net subject stock $X.XX. $XX option in convertible of X-Day our million VWAP, $X.XX floor at leverage. The reduction at is is of and in convert or cap

And convert combination within stock. Byborg, with moving we were puts have we questions. and and that should the the always strategic I significant have think So non-binding before with in we it If have we in our talked on will over the cash the footing work achieved that, LOI to about be on pay in balance of stock or stock reduction option is redeem $X.XX, to cash the we it. range, to anywhere would debt that option the our to the we sheet the to much on up more that excited financial forward. We're and stable Matt, open deal, signed expect close it a year-end. And continuing us

Operator

[Operator Instructions]

Matt Chesler

ahead advance, and questions read we via in those e-mail now. have to and submitted Operator, like I'd do are that go

Operator

absolutely. Yes,

Matt Chesler

to Playboy Jefferies. Ben, Heaney, the relaunch we questions we of team kind from asked, the key the be? reasons at what decided James the magazine? to look magazine have driver we expect you've are What James from to research So should as XXXX,

Ben Kohn

Sure.

a global brand a moving that promotional the This the we with. other also, as is spends key magazine driver of we forward. a So And models that work are creators millions unlike we're not looking dollars for in at not marketing. tool the revenue and brands,

have historically We that content. through done

the And purposes. back us so magazine, bringing serves it two by

and with. the a is for we models first work vehicle promotional The creators

The the The second be build like that basis. brand allow franchises is a Playboy the for as of a iconic a on continuing in back marketing things like Cover, magazine Interview, the XX like Questions, bring vehicle brand used way as us to to to the Playboy to some global

Matt Chesler

the $XX annual if Okay. discuss performance Thanks, partnership any, question payments? successfully related Byborg Byborg for with the next is The you and requirements, million Ben. you in your the to to relationship. Can receive

Ben Kohn

Sure.

of initial includes deal, would so be them we the payments to the well of are business -- a minimum $XXX we properties might publicly against for those new our XX business That digital total operating $XX in, paid for signed have million guarantees, that guarantee moving us. of the non-binding announced, those lines as lines. a minimum is term, today they as the in in million in-licensing areas percentage which operate a certain as LOI profits digital So either decide operate conclude, the over initial term forward. Should over that million our developing deal That $XX MG years. or of annual to in side

right That technically, them a against side, if guarantee $X.X Digital the profits. The the on the past in our be businesses this at outside our letting there of aren't percentage about not lost digital Subscription segment. advance there requirements other or those $XX we you a now, today, digital about for basis our $X.X on would million segment of And today, operate in other quarter, it is way about In are it million. minimum to simplest generate $X quarterly million. -- think so million, look

Moving basis opportunities cost million be have a cost, little businesses quarter, today. support services and $X be those very that minimum a on against if overhead forward, you approximately that for basically guarantee there And corporate any, with would to might replacing reduce unallocated revenue that. you would further

Matt Chesler

said you're the would absence... what in received the with into areas able returns to thoughts was that Hefner. you related you any in The publicly? believe that regards Cooper be share business question And to that there of unsolicited lean can was to creating the from next do bid beyond what stronger recently Are

Ben Kohn

is the All point offer. the press its unanimously fiduciary Hefner Cooper can exercising you duty I put and we Board out, rejected release the to

I on the right think track. we're

we As asset-light we model. an are said, moving to

been in notice that Birdette discontinued will Honey quarter moved ops. the You to has

As or right that the a that, we debt expect our company today. the previously cash, is of and of stated, a sign, we are million. moving deal including business. The in goal looking continue process for forward. for by of that would deals And partners balance to our our we business, the to we're close, coupled meaningful we got coupled interest-bearing Byborg of restructured rebuilding other $XX China the sheet, million reduced We've path others, with deal Byborg the licensing $XX of should $XX getting for profitability, the about lot that debt by well with underway. And senior million cash we

for have sustainable business upside, licensing that interest moving think cash moving on our other this we asset-light cash burn reduced like as from forward. And segments. we've where need right are financing to we then model. the So to to through is I moving the to restructured get expense us path our Byborg our be where well non-operating and feel way deals have a we forward, we participation, I that

Matt Chesler

did Birdette change. but questions, them, additional Honey on you off the I were particularly think to There cover related

come over in with questions that e-mail. additional that, have are there so And no

Ben Kohn

we to on to about or in Appreciate the everyone results. dialing talking forward year-end in, you and March look March

you. thank So

Operator

your Thank teleconference. thank you. for We today's This does conclude you participation.

You may this disconnect lines your at time.

PLBY (PLBY) 12 Nov 242024 Q3 Earnings call transcript