PLAYBOY ENTERPRISES WITHDRAWS REGISTRATION STATEMENT
PLAYBOY ENTERPRISES WITHDRAWS REGISTRATION STATEMENT CHICAGO, Sept. 15 /PRNewswire/ -- Playboy Enterprises Inc.
(NYSE: PLA) today announced that it has applied to the Securities and Exchange Commission to withdraw the registration statement filed on July 2, 1992, for the sale of 3 million shares of Class B common stock due to current market conditions for primary and secondary equity offerings. Christie Hefner, Playboy Enterprises' chairman and chief executive officer, said that while the company would consider an equity offering again in the future, it does not expect to file during calendar 1992 because results for the first fiscal quarter ending Sept. 30 are not consistent with the company's expectations for future earnings.
Hefner said: "The company had expected the first quarter to be softer than the second due to the seasonality of certain of its businesses. However, it is now clear that this seasonality has been exacerbated by weak advertising sales for Playboy magazine in the quarter. We will report 40 fewer ad pages in Playboy compared to the first quarter last year. The company expects to report operating results that are approximately $2 million less than the $.6 million of operating income reported for the first quarter of fiscal 1992. "Playboy felt the advertising recession later than most magazines as ad pages only began to decline in the second quarter of fiscal 1992. The decline appears to have lasted for four quarters, given the outlook for the second quarter of fiscal 1993. With advertising sales for the first two issues of the second quarter already closed, we are seeing a rebound in advertising compared to both the first quarter and to the year earlier period. We are confident that this turnaround in advertising combined with the continued profit growth anticipated for the Entertainment Group will result in second quarter operating profit in excess of the $.8 million reported for the same period last year. Barring unforeseen events, we expect to report our fourth consecutive year of solid operating profit growth in fiscal 1993." In fiscal 1992, Playboy reported operating income of $2.5 million. Hefner also said that if the company performs as anticipated and if market conditions permit, Playboy would consider an equity offering in calendar 1993. Playboy Enterprises is an international publishing and entertainment company that publishes Playboy magazine and related publications including newsstand specials, calendars and 15 foreign editions; owns and operates a catalog business; creates and distributes programming for domestic pay television, international television and worldwide home video; and markets the Playboy trademarks on apparel, accessories and other products sold to consumers around the world. -0- 9/15/92 /CONTACT: Martha O. Lindeman, 312-751-8000 ext.2650, 708-848-2738 (home), for Playboy Enterprises/ (PLA) CO: Playboy Enterprises Inc. ST: Illinois IN: ENT SU:
SH -- NY013 -- 9461 09/15/92 08:47 EDT
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|Date:||Sep 15, 1992|
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