PLBY Group Elects to Retain Honey Birdette Following Transformative Byborg Agreement
Rhea-AI Summary
PLBY Group has announced its decision to retain Honey Birdette following significant balance sheet improvements after closing the Byborg Enterprises licensing agreement. The company projects approximately $120 million in total revenue for the full year and expects to become cash flow positive in 2025.
The company currently has $36 million in cash on its balance sheet with $120 million in net senior debt, which is expected to decrease to below $100 million by the end of 2025. PLBY Group plans to use the net proceeds from a proposed $25.4 million follow-on investment to reduce senior debt, subject to stockholder approval.
The decision to retain Honey Birdette was based on operational improvements and future growth prospects that are expected to significantly increase its value. The company's transition to an asset-light model, supported by guaranteed royalty and licensing payments, has contributed to a leaner cost structure.
Positive
- Expected to achieve positive cash flow in 2025
- Projected revenue of $120 million for the full year
- Strong cash position with $36 million on balance sheet
- Planned debt reduction to below $100 million by end of 2025
- Operational improvements in Honey Birdette business
Negative
- Current high net senior debt of $120 million
- Debt reduction plan dependent on stockholder approval of $25.4M investment
News Market Reaction – PLBY
On the day this news was published, PLBY gained 14.11%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
-Honey Birdette Improvements are Driving Return to Growth and Positive Cash Flow
-PLBY Group Expects to be Cash Flow Positive for the Full Year 2025 and Anticipates Further Deleveraging
LOS ANGELES, Jan. 16, 2025 (GLOBE NEWSWIRE) -- PLBY Group, Inc. (NASDAQ: PLBY) (“PLBY Group” or the “Company”), owner of Playboy, one of the most recognizable and iconic brands in the world, today announced that it has decided to retain its Honey Birdette business based on significant improvement in the PLBY Group balance sheet following the successful closing of the previously disclosed long-term license agreement with Byborg Enterprises S.A. (“Byborg”), combined with a meaningful improvement in operational metrics at Honey Birdette and future growth prospects that are expected to significantly increase the value of the Honey Birdette business.
With the Byborg licensing partnership in place, and the transition to an asset-light model well underway, the transformed PLBY Group now is expected to:
- Generate total full-year revenue of approximately
$120 million - Be cash flow positive in 2025
- Reduce net senior debt to below
$100 million by the end of 2025
Ben Kohn, Chief Executive Officer of PLBY Group, commented, “We enter 2025 in a strong strategic and financial position with
The Company anticipates using all of the net proceeds from the proposed
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 over 70 years 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 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 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: FNK IR – Rob Fink / Matt Chesler, CFA – investors@plbygroup.com
Media: press@plbygroup.com
FAQ
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