Playboy, Inc. Q3 FY2024 earnings call

• Closed a strategic investment from Byborg for over $22 million. • Have approximately $30 million cash on the balance sheet. • Restructured debt, realizing a $66 million discount on senior debt and issuing a new $28 million convertible preferred, resulting in a $38 million net reduction in leverage. • Restructured Honey Birdette to discontinued ops. • Working on the Byborg nonbinding LOI and expect to close it before year-end.

In the digital and prescription segment, in the past quarter, it generated about $5.4 million quarterly revenue and lost about $2 million.

• Expect to close the Byborg deal before year-end. • Moving towards meaningful profitability with the restructured balance sheet and various strategic deals.

• Forward-looking statements are subject to risks that could cause actual results to differ materially from historical results and forecasts, as set forth in the company's SEC filings.

Q: As we look to 2025, what kind of driver should we expect the Polo magazine to be? What are the key reasons you've decided to relaunch the magazine?

A: We're not looking at the magazine as a key revenue driver moving forward. It serves as a promotional tool for creators and models and a brand marketing vehicle to bring back iconic franchises like the Playboy interview, cover, 20 questions.

Q: Can you discuss your partnership with Byborg and the performance requirements, if any, for you to successfully receive the $20 million in annual payments?

A: Signed a nonbinding LOI for a $300 million total MG over 15 years with $20 million annual payments. It's a minimum guarantee against a percentage of the profits of new business lines, replacing about $5 million a quarter in revenue from the digital and prescription segment with little cost.

Q: Are there any thoughts you're able to share with regards to the unsolicited bid that was received recently from Cooper Hefner? And in what areas of the business do you believe that you can lean into creating stronger returns absent that key assets?

A: The Board exercised its fiduciary duty and unanimously rejected the Cooper Hefner offer. We're on the right track with an asset-light model, moving Honey Birdette to discontinued ops, working on Byborg deal and other licensing deals, and expect to get to meaningful profitability with the restructured balance sheet and cash on hand.