Is Playboy Enterprises (PLA) worth a look?

Shares of Playboy Enterprises, Inc. (Public, NYSE:PLA) are down -57% in the last year. Playboy is right up there with companies that make America great, it would be a shame to see the company go the way of GM.

Here are notes from the last earnings call:

Playboy Enterprises, Inc. (PEI) (NYSE: PLA) (NYSE: PLAA) today reported a net loss for the first quarter ended March 31, 2009 of $13.7 million, or $0.41 per basic and diluted share, which included $8.7 million, or $0.26 per basic and diluted share, of impairment and restructuring charges. This compares to a net loss in the same period last year of $4.2 million, or $0.13 per basic and diluted share, which included a $0.6 million restructuring charge.

First quarter 2009 revenues totaled $61.6 million, down $16.9 million from the prior year period, primarily reflecting the outsourcing of operations, asset sales and the effects of the global economic slowdown on advertising and consumer spending. The quarter's segment loss was $1.3 million versus segment income of $0.1 million last year.

Playboy Interim Chairman and Chief Executive Officer Jerome Kern said: "We are beginning to see the results of the extensive restructuring and cost-reduction work that we began implementing in last year's fourth quarter. These initiatives allowed us to offset all but $1.4 million of the nearly $17 million revenue decline and led to improved margins in our TV and digital businesses, despite a lower revenue base. In addition to closing the New York office and integrating our print and digital operations, we continue to look for ways to further reduce our cost structure and improve operating efficiencies. Since last October, we have reduced headcount by more than 25% and taken approximately $18 million in annual personnel-related costs out of the company.

"In our business segments, we are focused on capitalizing on the growth potential of our digital and licensing businesses. A revamped Playboy.com free site, which we recently introduced, creates a web experience that is more attractive to both consumers and advertisers. In spite of the difficult economy, we believe that the new web site coupled with cost reduction measures we've implemented will create a trend of improving margins and higher profits in the digital business by year end.

"While the global economic slowdown is hampering the Licensing Group's growth through the first half of this year, we are signing new deals and are pleased with the continued rollout of our men's fragrance line," Kern said. "Consistent with other consumer products companies, we are seeing the downward sales trends begin to flatten, and we believe that we will see year-over-year revenue and profit growth in the 2009 second half. In addition, it now appears that our second entertainment venue, which we announced in February and expected to come on line in early 2010, will open before the end of 2009."

"The publishing business remains a key focus of our attention, as the print industry continues to face significant challenges on both the circulation and advertising fronts. Despite a first quarter that was weaker than last year, reflecting the negative impact of a change in how we record direct response advertising costs, we believe the magazine's bottom line will improve in 2009 versus last year. This performance is still not acceptable, however, and we expect to continue making changes that will lead to further improvements in the magazine's financial results," Kern said.

Stockmasters, it sounds like Playboy is on the mend. Who know, maybe a company like Virgin Media (VMED) will buy the troubled company out? Share price is so low right now, it would be a good opportunity to pick up a great American brand like Playboy.