Playboy (PLA) tops EPS estimates; reports strong international sales and $0.58 per share refinancing charge

Playboy Enterprises (ticker: PLA) reported results on May 5, 2005 for the first quarter 2005.  Below are some highlights.

Results 1Q05 vs. 1Q04:

• Reported EPS: $-0.39 vs. $0.06
• Adjusted EPS: $0.19 vs. $0.06 (+217%)
• Consensus EPS was $0.11 (adjusted for one-time expense)
• Revenue: $83.9M vs. $80.9M (+4%)
• Consensus revenue was $83.9M
• Operating income: $10.9M vs. $7.5M (+45%)
• Operating margin: 13% vs. 9.3% (+370bps)
• Reported Net income: $-13.1M vs. $1.9M
• Reported Net margin: -15.6% vs. 2.3%
• Adjusted Net income: $6.2M vs. $1.9M (+226%)
• Adjusted Net margin: 7.4% vs. 2.3% (+510bps)
• Reported EBITDA: $1.9M vs. $19.1M (-90%)
• Reported EBITDA margin: 2.3% vs. 23.6% (-2,130bps)
• Adjusted EBITDA income: $-6.8M vs. $7.6M
• Adjusted EBITDA margin: -8.1% vs. 9.4%
• Cash: $22.9M vs. $15.4M (+49%)
• Debt: $115M vs. $115M (0%)

Revenues, by segment 1Q05 vs. 1Q04:

• Entertainment: $50.5M vs. $46.5M (+9%)
• Publishing: $27M vs. $29.7M (-9%)
• Licensing: $6M vs. $4.7M (+28%)

Entertainment Revenues 1Q05 vs. 1Q04:

• Domestic TV: $25.2M vs. $24.4M (+3%)
• International: $13.4M vs. $10.5M (+28%)
• Online subscriptions: $5.8M vs. $5.2M (+12%)
• E-Commerce: $5.2M vs. $4.8M (+8%)
• Other: $0.9M vs. $1.6M (-44%)

Publishing revenues 1Q05 vs. 1Q04:

• Magazine subscription: $12.6M vs. $13.4M (-6%)
• Newsstand: $3.3M vs. $4.3M (-23%)
• Advertising: $7M vs. $7.7M (-9%)
• Other domestic publishing: $2.3M vs. $2.7M (-15%)
• International: $1.8M vs. $1.6M (+13%)

Licensing revenues 1Q05 vs. 1Q04:

• International: $4.4M vs. $3.2M (+38%)
• Domestic: $0.8M vs. $0.8M (0%)
• Entertainment: $0.6M vs. $0.5M (+20%)
• Marketing: $0.2M vs. $0.2M (0%)

Guidance:

• 2005 EPS: $0.54 - $0.59 (unchanged from previous forecast)
• Advertising pages to decline by 14% in 2005

Quick comments:

• During the Q1, PLA successfully completed the sale of $115M 3.00% convertible senior subordinated notes and refinanced existing debt, resulting in a one-time charge of $0.58 per share