Originally Posted by AmeliaG

It looks like an average of about $90 million per year of that is just the interest on their massive debt. If their net income is averaging around $40 million, that is a pretty easy equation.

Of the company's $452.2 in assets, $390.6 is listed as intangibles. Odds are that most of that is Penthouse, meaning that they may make the assets portion look stronger with that acquisition, but the overall debt to equity ratio is kinda ridiculous, especially when one factors in their clear overpayment for the Penthouse brand. Those intangibles should be heavily impaired, if anyone were paying attention.