PLBY Group Elects to Retain Honey Birdette Following Transformative Byborg Agreement
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.
PLBY Group ha annunciato la decisione di mantenere Honey Birdette a seguito di significativi miglioramenti del bilancio dopo la chiusura dell'accordo di licenza con Byborg Enterprises. L'azienda prevede circa 120 milioni di dollari di fatturato totale per l'intero anno e si aspetta di diventare positiva in termini di flusso di cassa nel 2025.
L'azienda attualmente ha 36 milioni di dollari in contante nel suo bilancio con 120 milioni di dollari di debito senior netto, previsto in diminuzione sotto 100 milioni di dollari entro la fine del 2025. PLBY Group prevede di utilizzare i proventi netti da un proposto investimento supplementare di 25,4 milioni di dollari per ridurre il debito senior, soggetto all'approvazione degli azionisti.
La decisione di mantenere Honey Birdette si basa su miglioramenti operativi e prospettive di crescita future che dovrebbero aumentare significativamente il suo valore. La transizione dell'azienda a un modello leggero in termini di attivi, supportata da pagamenti di royalty e licenze garantiti, ha contribuito a una struttura dei costi più snella.
PLBY Group ha anunciado su decisión de retener a Honey Birdette tras importantes mejoras en su balance después de cerrar el acuerdo de licencia con Byborg Enterprises. La empresa proyecta aproximadamente 120 millones de dólares en ingresos totales para el año completo y espera ser positiva en flujo de caja en 2025.
Actualmente, la empresa cuenta con 36 millones de dólares en efectivo en su balance con 120 millones de dólares en deuda senior neta, que se espera que disminuya por debajo de 100 millones de dólares para finales de 2025. PLBY Group planea utilizar los ingresos netos de una inversión adicional propuesta de 25,4 millones de dólares para reducir la deuda senior, sujeta a la aprobación de los accionistas.
La decisión de retener a Honey Birdette se basó en mejoras operativas y perspectivas de crecimiento futuro que se espera aumenten significativamente su valor. La transición de la empresa a un modelo ligero en activos, respaldado por pagos de regalías y licencias garantizados, ha contribuido a una estructura de costos más eficiente.
PLBY Group는 Byborg Enterprises 라이센스 계약 체결 후 재무 상태가 크게 개선된 것을 바탕으로 Honey Birdette를 유지하기로 결정했다고 발표했습니다. 이 회사는 연간 약 1억 2천만 달러의 총 수익을 예상하며 2025년에는 현금 흐름이 긍정적이 될 것으로 기대하고 있습니다.
현재 이 회사는 재무제표에 3600만 달러의 현금을 보유하고 있으며 1억 2천만 달러의 순 고급 부채를 가지고 있습니다. 이 부채는 2025년 말까지 1억 달러 이하로 감소할 것으로 예상됩니다. PLBY Group은 주주 승인을 조건으로 제안된 2540만 달러의 후속 투자로부터 발생하는 순수익을 사용하여 고급 부채를 줄일 계획입니다.
Honey Birdette를 유지하기로 한 결정은 운영 개선 및 향후 성장 가능성을 기반으로 하며, 이는 가치가 크게 증가할 것으로 예상됩니다. 자산 경량화 모델로의 전환은 보장된 로열티 및 라이센스 수익 지원을 받으며, 비용 구조가 더 간소화되었습니다.
PLBY Group a annoncé sa décision de conserver Honey Birdette après des améliorations significatives de son bilan suite à la conclusion de l'accord de licence avec Byborg Enterprises. L'entreprise prévoit environ 120 millions de dollars de revenus totaux pour l'ensemble de l'année et s'attend à devenir rentable en cash flow en 2025.
Actuellement, l'entreprise dispose de 36 millions de dollars en cash dans son bilan avec 120 millions de dollars de dette senior nette, qui devrait diminuer en dessous de 100 millions de dollars d'ici fin 2025. PLBY Group prévoit d'utiliser les produits nets d'un investissement complémentaire proposé de 25,4 millions de dollars pour réduire la dette senior, sous réserve de l'approbation des actionnaires.
La décision de conserver Honey Birdette a été basée sur des améliorations opérationnelles et des perspectives de croissance futures qui devraient augmenter significativement sa valeur. La transition de l'entreprise vers un modèle léger en actifs, soutenue par des paiements de redevances et de licences garantis, a contribué à une structure de coûts plus efficace.
PLBY Group hat bekannt gegeben, dass es sich entschieden hat, Honey Birdette beizubehalten, nachdem nach Abschluss der Lizenzvereinbarung mit Byborg Enterprises signifikante Verbesserungen in der Bilanz erzielt wurden. Das Unternehmen prognostiziert etwa 120 Millionen US-Dollar an Gesamteinnahmen für das gesamte Jahr und erwartet, 2025 einen positiven Cashflow zu erreichen.
Derzeit hat das Unternehmen 36 Millionen US-Dollar in bar in seiner Bilanz, mit 120 Millionen US-Dollar an netto nachrangiger Schuld, die voraussichtlich bis Ende 2025 unter 100 Millionen US-Dollar fallen wird. PLBY Group plant, die Nettoerlöse aus einer vorgeschlagenen Investition von 25,4 Millionen US-Dollar zur Verringerung der nachrangigen Schulden zu verwenden, vorbehaltlich der Zustimmung der Aktionäre.
Die Entscheidung, Honey Birdette beizubehalten, basierte auf betrieblichen Verbesserungen und zukünftigen Wachstumschancen, von denen erwartet wird, dass sie den Wert erheblich steigern. Der Übergang des Unternehmens zu einem leichtgewichtigen Modell, das durch garantierte Lizenzgebühren und Lizenzzahlungen unterstützt wird, hat zu einer schlankeren Kostenstruktur beigetragen.
- 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
- Current high net senior debt of $120 million
- Debt reduction plan dependent on stockholder approval of $25.4M investment
Insights
The retention of Honey Birdette and projected financial metrics represent a pivotal shift in PLBY Group's trajectory. The company's projected
The transformation to an asset-light model through the Byborg agreement is particularly noteworthy - it's like switching from owning expensive real estate to collecting reliable rental income. This strategic pivot reduces operational costs while securing guaranteed royalty streams, enhancing predictability of cash flows. Think of it as transforming from a capital-intensive retailer to a brand licensing powerhouse.
The decision to retain Honey Birdette indicates management's confidence in the unit's growth trajectory and potential value appreciation. For investors, this suggests the subsidiary's current performance metrics and growth prospects exceed potential sale valuations - a positive signal about its underlying business strength.
PLBY's strategic repositioning demonstrates a sophisticated understanding of brand monetization in today's market. The Byborg agreement essentially transforms PLBY from a traditional operator into a brand intellectual property company - similar to how Marvel evolved from a comic book publisher to a lucrative IP licensing powerhouse.
The retention of Honey Birdette reveals two critical insights: First, the luxury intimate apparel market remains robust despite broader retail challenges. Second, there's significant untapped potential in cross-pollinating Honey Birdette's premium positioning with PLBY's global brand recognition.
The shift to an asset-light model is particularly timely given current market conditions. By reducing operational complexity while maintaining brand control, PLBY can focus on high-margin licensing opportunities while minimizing exposure to retail operational risks. This model has proven successful for companies like Calvin Klein and Tommy Hilfiger under PVH Corp's umbrella.
-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
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