FOR IMMEDIATE RELEASE
PLAYBOY ENTERPRISES, INC. ANNOUNCES
THIRD QUARTER 2010 RESULTS
Company Records $25.4 Million Non-Cash Impairment Charge;
Print/Digital and Licensing Results Improve
CHICAGO, Tuesday, November 9, 2010 – Playboy Enterprises, Inc. (PEI) (NYSE: PLA, PLAA) today announced a net loss for the third quarter ended September 30, 2010, of $27.4 million, or $0.81 per basic and diluted share, which included impairment and restructuring charges totaling $25.8 million. This compares to a net loss of $1.1 million, or $0.03 per basic and diluted share in the prior year quarter, when the company recorded $0.5 million in restructuring charges. Excluding these charges, PEI reported a net loss in the 2010 third quarter of $1.6 million, or $0.05 per basic and diluted share, compared to a net loss last year of $0.6 million, or $0.02 per basic and diluted share.
Third quarter 2010 revenues were $52.1 million, down 7% from $56.0 million recorded in last year’s third quarter. Playboy reported segment income of $0.7 million in the quarter compared to $2.7 million last year, as solid improvements in the Print/Digital and Licensing Groups were more than offset by lower Entertainment Group profits and increased Corporate expense.
PEI Chief Executive Officer Scott Flanders said: “We continue to make progress toward our goal of transitioning Playboy to a brand management company. The success of our existing partnerships with AMI and IMG demonstrate the viability and promise of outsourcing agreements. Working with AMI, we have reduced Playboy magazine’s cost structure, contributing to the improvement in the Print/Digital Group’s third quarter profitability compared to last year. In Asia, IMG helped close the single largest product licensing deal we’ve ever done, which was a factor in the significant top- and bottom-line growth the Licensing Group reported today.
“While outsourcing some operations, we will continue to oversee licensing related to our location-based entertainment venues,” Flanders said, “and we are excited to report financially meaningful developments in this strategically important business. Later this month we will open Playboy Clubs in both Macao and Cancun, and we finalized last month a plan to bring a Playboy Club