UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
(Mark One)
[ ] AMENDMENT TO ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended ..................
OR
[X] AMENDMENT TO TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from July 1, 1997 to December 31, 1997
COMMISSION FILE NUMBER 1-6813
PLAYBOY ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 36-2258830
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
680 NORTH LAKE SHORE DRIVE, CHICAGO, IL 60611
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (312) 751-8000
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
Name of each exchange
Title of each class on which registered
------------------- -----------------------
Class A Common Stock, par value $0.01 per share........ New York Stock Exchange
Pacific Exchange
Class B Common Stock, par value $0.01 per share........ New York Stock Exchange
Pacific Exchange
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days. YES [X] NO [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
The aggregate market value of Class A Common Stock, par value $0.01 per
share, held by nonaffiliates (based upon the closing sale price on the New York
Stock Exchange) on February 28, 1998 was $20,946,289. The aggregate market value
of Class B Common Stock, par value $0.01 per share, held by nonaffiliates (based
upon the closing sale price on the New York Stock Exchange) on February 28, 1998
was $124,413,152.
As of February 28, 1998, there were 4,748,954 shares of Class A Common
Stock, par value $0.01 per share, and 15,784,920 shares of Class B Common Stock,
par value $0.01 per share, outstanding.
<PAGE>
The undersigned registrant hereby amends Item 6 of Part II of its
Transition Report on Form 10-K for the transition period from July 1, 1997 to
December 31, 1997, as set forth below:
PART II
Item 6. Selected Financial and Operating Data.
- ------ -------------------------------------
<TABLE>
<CAPTION>
Six Months Six Months Fiscal Year Fiscal Year Fiscal Year
Ended Ended Ended Ended Ended
(in thousands) 12/31/97 12/31/96 6/30/97 6/30/96 6/30/95
- ------------------------------------------ -------------- -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
NET REVENUES
Publishing
PLAYBOY magazine
Subscription $ 25,919 $ 26,224 $ 52,955 $ 51,837 $ 50,531
Newsstand 11,345 12,350 21,972 24,408 24,876
Advertising 13,718 13,220 28,414 27,431 27,588
Other (44) (38) 1,651 1,653 1,387
-------------- -------------- --------------- --------------- ---------------
Total PLAYBOY Magazine 50,938 51,756 104,992 105,329 104,382
Other domestic publishing 11,755 11,453 22,745 21,419 18,718
International publishing 5,305 5,228 9,951 6,172 4,173
-------------- -------------- --------------- --------------- ---------------
Total Publishing 67,998 68,437 137,688 132,920 127,273
-------------- -------------- --------------- --------------- ---------------
Entertainment
Playboy TV
Cable 9,560 10,349 21,165 21,149 18,938
Satellite direct-to-home 14,047 9,947 23,065 16,457 9,602
Off-network productions and other 1,331 1,989 3,052 1,672 420
-------------- -------------- --------------- --------------- ---------------
Total Playboy TV 24,938 22,285 47,282 39,278 28,960
Domestic home video 3,247 3,888 8,515 9,370 9,517
International TV and home video 4,728 4,339 12,218 11,955 11,160
-------------- -------------- --------------- --------------- ---------------
Total Playboy Businesses 32,913 30,512 68,015 60,603 49,637
AdulTVision 2,305 2,370 4,487 1,907 -
Movies and other 2,138 1,000 2,214 2,316 2,060
-------------- -------------- --------------- --------------- ---------------
Total Entertainment 37,356 33,882 74,716 64,826 51,697
-------------- -------------- --------------- --------------- ---------------
Product Marketing 4,199 4,273 7,968 7,125 6,844
-------------- -------------- --------------- --------------- ---------------
Casino Gaming - - - - -
-------------- -------------- --------------- --------------- ---------------
Catalog 39,988 39,411 76,251 71,716 61,435
-------------- -------------- --------------- --------------- ---------------
Total Net Revenues $ 149,541 $ 146,003 $ 296,623 $ 276,587 $ 247,249
-------------- -------------- --------------- --------------- ---------------
OPERATING INCOME (LOSS)
Publishing $ 2,831 $ 3,726 $ 8,387 $ 9,235 $ 10,709
-------------- -------------- --------------- --------------- ---------------
Entertainment
Before programming expense 19,144 17,313 39,609 30,467 21,097
Programming expenses (11,153) (9,619) (21,355) (21,263) (20,130)
-------------- -------------- --------------- --------------- ---------------
Total Entertainment 7,991 7,694 18,254 9,204 967
-------------- -------------- --------------- --------------- ---------------
Product Marketing 1,614 2,252 3,512 3,692 3,428
-------------- -------------- --------------- --------------- ---------------
Casino Gaming (541) - - - -
-------------- -------------- --------------- --------------- ---------------
Catalog 1,959 2,914 4,795 5,244 5,209
-------------- -------------- --------------- --------------- ---------------
Corporate Administration and
Promotion (9,395) (8,892) (19,203) (17,882) (17,256)
-------------- -------------- --------------- --------------- ---------------
Total Operating Income $ 4,459 $ 7,694 $ 15,745 $ 9,493 $ 3,057
============== ============== =============== =============== ===============
</TABLE>
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Selected Financial and Operating Data
- -------------------------------------
<TABLE>
<CAPTION>
Six Months Six Months Fiscal Year Fiscal Year Fiscal Year Fiscal year Fiscal Year
(in thousands, except per share amounts, Ended Ended Ended Ended Ended Ended Ended
number of employees and ad pages) 12/31/97 12/31/96 6/30/97 6/30/96 6/30/95 6/30/94 6/30/93
- ----------------------------------------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
SELECTED FINANCIAL DATA
Net Revenues $ 149,541 $ 146,003 $ 296,623 $ 276,587 $ 247,249 $ 218,987 $ 214,875
Interest expense, net (239) (264) (354) (592) (569) (779) (131)
Income (loss) from continuing operations
before cumulative effect of change in
accounting principle 2,142 3,862 21,394 4,252 629 (16,364) 365
Net income (loss) 1,065 3,862 21,394 4,252 629 (9,484) 365
Basic income (loss) per common share
Income (loss) from continuing
operations before cumulative effect
of change in accounting principle 0.10 0.19 1.05 0.21 0.03 (0.83) 0.02
Net income (loss) 0.05 0.19 1.05 0.21 0.03 (0.48) 0.02
Diluted income (loss) per common share
Income (loss) from continuing
operations before cumulative effect
of change in accounting principle 0.10 0.19 1.03 0.21 0.03 (0.83) 0.02
Net income (loss) 0.05 0.19 1.03 0.21 0.03 (0.48) 0.02
Cash dividends declared per
common share - - - - - - -
EBIDTA (1) 17,584 19,857 41,651 35,470 27,624 7,852 19,324
Adjusted EBIDTA (1) 3,225 4,339 10,904 9,921 6,311 (9,333) (3,709)
Cash Flows from Operating Activities (3,853) (7,126) 1,539 4,541 3,180 (4,368) (24,928)
Cash Flows from Investing Activities (1,874) (1,057) (2,450) (4,168) (315) (2,277) 6,692
Cash Flows from Financing Activities $ 5,371 $ 6,806 $ (224) $ 594 $ (2,652) $ 6,000 $ 11,366
------------ ------------ ----------- ----------- ----------- ----------- -----------
AT PERIOD END
Total assets $ 185,947 $ 162,215 $ 175,542 $ 150,869 $ 137,835 $ 131,921 $ 127,767
Long-term financing obligations $ - $ - $ - $ 347 $ 687 $ 1,020 $ 1,347
Shareholders' equity $ 78,683 $ 57,435 $ 76,133 $ 52,283 $ 47,090 $ 46,311 $ 55,381
Long-term financing obligations as a
percentage of total capitalization -% -% -% 0.7% 1.4% 2.2% 2.4%
Number of common shares
outstanding
Class A voting 4,749 4,749 4,749 4,749 4,714 4,709 4,701
Class B non-voting 15,775 15,580 15,636 15,437 15,276 15,255 15,192
Number of full-time employees 684 645 666 621 600 578 624
------------ ------------ ----------- ----------- ----------- ----------- -----------
OPERATING DATA
PLAYBOY magazine ad pages 273 263 558 569 595 595 660
Cash investments in Company-
produced and licensed entertainment
programming $ 14,359 $ 15,518 $ 30,747 $ 25,549 $ 21,313 $ 17,185 $ 23,033
Amortization of investments in
Company-produced and licensed
entertainment programming $ 11,153 $ 9,619 $ 21,355 $ 21,263 $ 20,130 $ 18,174 $ 14,076
Playboy TV (at period end)
Cable addressable households 11,600 11,200 11,200 11,300 10,600 9,600 9,100
Satellite direct-to-home households 6,774 5,630 6,277 4,867 3,282 1,926 197
Percentage of total U.S. cable
addressable households with access to
Playboy TV (2) 37.8% 40.0% 38.2% 42.8% 45.2% 43.2% 50.1%
AdulTVision domestic cable addressable
households (at period end) (3) 3,827 2,641 3,121 2,175 - - -
</TABLE>
3
<PAGE>
For a more detailed description of the Company's financial position, results of
operations and accounting policies, please refer to Management's Discussion and
Analysis of Financial Condition and Results of Operations and the Consolidated
Financial Statements and Notes thereto, beginning on page 29 of the Form 10-K
Transition Report.
NOTES TO SELECTED FINANCIAL AND OPERATING DATA
(1) EBITDA represents earnings before income taxes and cumulative effect of
change in accounting principle plus interest expense, depreciation and
amortization. Adjusted EBITDA represents the above less cash investments in
programming.
(2) Based on projections by Kagan.
(3) Network launched in fiscal year 1996.
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<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
and Exchange Act of 1934, the registrant has duly caused this amendment to be
signed on its behalf by the undersigned thereunto duly authorized.
PLAYBOY ENTERPRISES, INC.
October 30, 1998 By: /s/ Christie A. Hefner
----------------------
Christie A. Hefner
Chairman of the Board,
Chief Executive Officer and Director
(Principal Executive Officer)
October 30, 1998 By: /s/ Linda Havard
----------------
Linda Havard
Executive Vice President, Finance and Operations,
and Chief Financial Officer
(Principal Financial and Accounting Officer)
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