Funko Reports Third Quarter 2024 Financial Results; Updates 2024 Full-Year Outlook
Funko (Nasdaq: FNKO) reported its Q3 2024 financial results, showing net sales of $292.8 million, down from $312.9 million in Q3 2023. Gross profit increased to $119.8 million with a gross margin of 40.9%, compared to $104.0 million and 33.2% in the previous year. SG&A expenses were $92.7 million, slightly down from $94.0 million. Net income was $4.6 million or $0.08 per diluted share, contrasting with a net loss of $16.2 million or $0.31 per share last year. Adjusted net income rose to $8.0 million or $0.14 per share, and adjusted EBITDA increased to $31.0 million from $25.4 million.
Funko updated its 2024 full-year outlook, lowering net sales expectations to $1.037-$1.050 billion but raising adjusted EBITDA guidance to $85-$90 million. For Q4 2024, the company expects net sales of $280-$294 million, a gross margin of 38%-40%, and adjusted net income (loss) per share of ($0.05)-$0.02.
Funko (Nasdaq: FNKO) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando vendite nette di 292,8 milioni di dollari, in calo rispetto ai 312,9 milioni di dollari del terzo trimestre 2023. L'utile lordo è aumentato a 119,8 milioni di dollari con un margine lordo del 40,9%, rispetto ai 104,0 milioni di dollari e al 33,2% dell'anno precedente. Le spese SG&A sono state di 92,7 milioni di dollari, leggermente in calo rispetto ai 94,0 milioni di dollari. L'utile netto è stato di 4,6 milioni di dollari, pari a 0,08 dollari per azione diluita, a confronto con una perdita netta di 16,2 milioni di dollari, pari a 0,31 dollari per azione nell'anno passato. L'utile netto rettificato è salito a 8,0 milioni di dollari, ovvero 0,14 dollari per azione, e l'EBITDA rettificato è aumentato a 31,0 milioni di dollari, rispetto ai 25,4 milioni di dollari.
Funko ha aggiornato le previsioni per l'intero anno 2024, abbassando le aspettative sulle vendite nette a 1,037-1,050 miliardi di dollari, ma aumentando le previsioni per l'EBITDA rettificato a 85-90 milioni di dollari. Per il quarto trimestre 2024, l'azienda prevede vendite nette comprese tra 280-294 milioni di dollari, un margine lordo del 38%-40% e un utile netto rettificato (perdita) per azione tra (-0,05)-0,02 dollari.
Funko (Nasdaq: FNKO) informó sus resultados financieros del tercer trimestre de 2024, mostrando ventas netas de 292,8 millones de dólares, por debajo de los 312,9 millones de dólares del tercer trimestre de 2023. La utilidad bruta aumentó a 119,8 millones de dólares con un margen bruto del 40,9%, en comparación con los 104,0 millones de dólares y el 33,2% del año anterior. Los gastos de SG&A fueron de 92,7 millones de dólares, ligeramente por debajo de los 94,0 millones de dólares. La utilidad neta fue de 4,6 millones de dólares o 0,08 dólares por acción diluida, en contraste con una pérdida neta de 16,2 millones de dólares o 0,31 dólares por acción el año pasado. La utilidad neta ajustada aumentó a 8,0 millones de dólares o 0,14 dólares por acción, y el EBITDA ajustado aumentó a 31,0 millones de dólares desde los 25,4 millones de dólares.
Funko actualizó su pronóstico para el año completo 2024, reduciendo las expectativas de ventas netas a 1.037-1.050 millones de dólares, pero elevando las expectativas de EBITDA ajustado a 85-90 millones de dólares. Para el cuarto trimestre de 2024, la compañía espera ventas netas de 280-294 millones de dólares, un margen bruto del 38%-40%, y una utilidad neta ajustada (pérdida) por acción de (-0,05)-0,02 dólares.
Funko (Nasdaq: FNKO)는 2024년 3분기 재무 결과를 발표하며, 순매출이 2억 9,280만 달러로 2023년 3분기 3억 1,290만 달러에서 감소했다고 보고했습니다. 총 이익은 1억 1,980만 달러로 증가했으며, 총 이익률은 40.9%로, 작년의 1억 4,000만 달러 및 33.2%와 비교됩니다. SG&A 비용은 9,270만 달러로, 약간 감소하여 9,400만 달러가 되었습니다. 순이익은 460만 달러 또는 희석주당 0.08 달러로, 작년 1,620만 달러 또는 주당 0.31 달러의 순손실과 대비됩니다. 조정된 순이익은 800만 달러 또는 주당 0.14 달러로 증가했으며, 조정된 EBITDA는 2,800만 달러에서 2,540만 달러로 증가했습니다.
Funko는 2024년 전체 연도 전망을 업데이트하여 순매출 기대치를 10억 3,700만 - 10억 5,000만 달러로 낮추었으나 조정된 EBITDA 가이던스를 8,500만 - 9,000만 달러로 상향 조정했습니다. 2024년 4분기에는 2억 8,000만 - 2억 9,400만 달러의 순매출, 38%-40%의 총 이익률, 그리고 주당 조정된 순이익(손실)이 (-0.05)-0.02 달러가 될 것으로 예상하고 있습니다.
Funko (Nasdaq: FNKO) a publié ses résultats financiers pour le troisième trimestre 2024, montrant des ventes nettes de 292,8 millions de dollars, en baisse par rapport à 312,9 millions de dollars au troisième trimestre 2023. Le bénéfice brut a augmenté à 119,8 millions de dollars avec une marge brute de 40,9%, contre 104,0 millions de dollars et 33,2% l'année précédente. Les frais SG&A s'élevaient à 92,7 millions de dollars, légèrement en baisse par rapport à 94,0 millions de dollars. Le bénéfice net était de 4,6 millions de dollars, soit 0,08 dollar par action diluée, contre une perte nette de 16,2 millions de dollars, soit 0,31 dollar par action l'an dernier. Le bénéfice net ajusté a augmenté à 8,0 millions de dollars, soit 0,14 dollar par action, et l'EBITDA ajusté a augmenté à 31,0 millions de dollars contre 25,4 millions de dollars.
Funko a mis à jour ses prévisions pour l'année 2024, abaissant les attentes de ventes nettes entre 1,037 et 1,050 milliard de dollars, mais augmentant les prévisions d'EBITDA ajusté à 85-90 millions de dollars. Pour le quatrième trimestre 2024, la société s'attend à des ventes nettes comprises entre 280 et 294 millions de dollars, une marge brute de 38% à 40%, et un bénéfice net ajusté (perte) par action de (-0,05) à 0,02 dollar.
Funko (Nasdaq: FNKO) hat die Finanzergebnisse für das 3. Quartal 2024 veröffentlicht und einen Nettoumsatz von 292,8 Millionen Dollar gemeldet, was einem Rückgang von 312,9 Millionen Dollar im 3. Quartal 2023 entspricht. Der Bruttogewinn stieg auf 119,8 Millionen Dollar bei einer Bruttomarge von 40,9%, verglichen mit 104,0 Millionen Dollar und 33,2% im Vorjahr. Die SG&A-Ausgaben betrugen 92,7 Millionen Dollar und lagen leicht unter den 94,0 Millionen Dollar. Der Nettogewinn betrug 4,6 Millionen Dollar oder 0,08 Dollar pro verwässerter Aktie, im Gegensatz zu einem Nettoverlust von 16,2 Millionen Dollar oder 0,31 Dollar pro Aktie im vergangenen Jahr. Der bereinigte Nettogewinn stieg auf 8,0 Millionen Dollar oder 0,14 Dollar pro Aktie und das bereinigte EBITDA erhöhte sich auf 31,0 Millionen Dollar von 25,4 Millionen Dollar.
Funko hat seinen Ausblick für das gesamte Jahr 2024 aktualisiert und die Erwartungen an den Nettoumsatz auf 1,037-1,050 Milliarden Dollar gesenkt, während die Prognose für das bereinigte EBITDA auf 85-90 Millionen Dollar angehoben wurde. Für das 4. Quartal 2024 erwartet das Unternehmen einen Nettoumsatz von 280-294 Millionen Dollar, eine Bruttomarge von 38%-40% und einen bereinigten Nettogewinn (Verlust) pro Aktie von (-0,05)-0,02 Dollar.
- Gross profit increased to $119.8 million, up from $104.0 million.
- Gross margin improved to 40.9% from 33.2%.
- Net income of $4.6 million, a significant improvement from a net loss of $16.2 million.
- Adjusted net income rose to $8.0 million from $1.7 million.
- Adjusted EBITDA increased to $31.0 million from $25.4 million.
- Total debt decreased to $223.4 million from $273.6 million.
- Net sales decreased to $292.8 million from $312.9 million.
- SG&A expenses remained high at $92.7 million.
- Lowered full-year net sales outlook to $1.037-$1.050 billion.
--Q3 Net Sales, Gross Margin and Adjusted EBITDA at High End or Above Expectations--
Third Quarter Financial Results Summary: 2024 vs 2023
-
Net sales were
compared with$292.8 million $312.9 million -
Gross profit was
, equal to gross margin of$119.8 million 40.9% . This compares with , equal to gross margin of$104.0 million 33.2% , which included of non-recurring charges$6.4 million -
SG&A expenses were
, which included$92.7 million of non-recurring charges. This compares with$0.4 million , which included$94.0 million of non-recurring charges. Details related to the non-recurring charges can be found in footnotes 4, 5 and 10 of the attached reconciliations$9.9 million -
Net income was
, or$4.6 million per diluted share, compared with net loss of$0.08 , or$16.2 million per share$0.31 -
Adjusted net income* was
, or$8.0 million per diluted share*, compared to$0.14 , or$1.7 million per share$0.03 -
Adjusted EBITDA* was
versus$31.0 million $25.4 million
"We reported solid financial results for the 2024 third quarter,” said Cynthia Williams, Chief Executive Officer of Funko. “As expected, net sales were down compared with the prior-year quarter, though in the top end of our guidance range. On the other hand, we delivered better than expected profitability on improved gross margins, as we did in the first two quarters of this year.
"We've updated our full-year 2024 outlook for net sales to reflect a more cautious consumer environment, which we began to see in the third quarter. We now expect net sales to be at the low end to slightly below our previous range. Adjusted EBITDA is a different matter, we have raised our full-year outlook to above the high end of the range.
"We are deep in the process of developing our strategic plan for 2025 and beyond, and pleased that we have already begun executing several elements of that plan. Recently, we enabled direct-to-consumer shipping capability to
Third Quarter 2024 Net Sales by Category and Geography
The tables below show the breakdown of net sales on a brand category and geographical basis (in thousands):
|
Three Months Ended
|
|
Period Over Period Change |
|||||||||||
|
2024 |
|
2023 |
|
Dollar |
|
Percentage |
|||||||
Net sales by brand category: |
|
|
|
|
|
|
|
|||||||
Core Collectible |
$ |
227,845 |
|
$ |
233,269 |
|
$ |
(5,424 |
) |
|
(2.3 |
)% |
||
Loungefly |
|
47,310 |
|
|
|
57,439 |
|
|
|
(10,129 |
) |
|
(17.6 |
)% |
Other |
|
17,610 |
|
|
|
22,236 |
|
|
|
(4,626 |
) |
|
(20.8 |
)% |
Total net sales |
$ |
292,765 |
|
|
$ |
312,944 |
|
|
$ |
(20,179 |
) |
|
(6.4 |
)% |
|
Three Months Ended
|
|
Period Over Period Change |
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Dollar |
|
Percentage |
|||
Net sales by geography (shipped to): |
|
|
|
|
|
|
|
|||||||
|
$ |
194,416 |
|
|
$ |
209,966 |
|
|
$ |
(15,550 |
) |
|
(7.4 |
)% |
|
|
74,473 |
|
|
|
81,938 |
|
|
|
(7,465 |
) |
|
(9.1 |
)% |
Other International |
|
23,876 |
|
|
|
21,040 |
|
|
|
2,836 |
|
|
13.5 |
% |
Total net sales |
$ |
292,765 |
|
|
$ |
312,944 |
|
|
$ |
(20,179 |
) |
|
(6.4 |
)% |
Balance Sheet Highlights - At September 30, 2024 vs December 31, 2023
-
Total cash and cash equivalents were
at September 30, 2024 compared with$28.5 million at December 31, 2023$36.5 million -
Inventory was
at September 30, 2024 down from$118.6 million at December 31, 2023$119.5 million -
Total debt was
at September 30, 2024 versus$223.4 million at December 31, 2023. Total debt includes the amount outstanding under the company's term loan facility, net of unamortized discounts, revolving line of credit and equipment finance loan$273.6 million
Outlook for 2024
Regarding its 2024 full-year outlook, the company lowered the range for net sales and raised the range for adjusted EBITDA, and provided guidance for its 2024 fourth quarter, as follows:
|
Current Outlook |
|
2024 Full Year |
|
|
Net Sales |
|
|
Adjusted EBITDA* |
|
|
|
|
|
2024 Fourth Quarter |
|
|
Net sales |
|
|
Gross margin % |
|
|
SG&A expense, in dollars |
|
|
Adjusted net income (loss)* |
|
|
Adjusted net income (loss) per diluted share* |
( |
|
Adjusted EBITDA* |
|
*Adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA are non-GAAP financial measures. For a reconciliation of historical adjusted net income (loss), adjusted net income (loss) per share, and adjusted EBITDA, to the most directly comparable
Conference Call and Webcast
The company will host a conference call at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) today, November 7, 2024, to further discuss its third quarter results and business update. A live webcast and a replay of the event will be available on the Investor Relations section on the Company’s website at investor.funko.com. The replay of the webcast will be available for one year.
Use of Non-GAAP Financial Measures
This release contains references to non-GAAP financial measures, including adjusted net income (loss), including per share amounts, adjusted EBITDA, adjusted EBITDA margin and adjusted net income (loss) margin, which are financial measures that are not prepared in conformity with
Detailed reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables following this release.
About Funko
Headquartered in
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our product offerings and strategic plan, anticipated financial results, including without limitation, equity-based compensation and financial position. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to execute our business strategy; our ability to manage our inventories and growth; our ability to maintain and realize the full value of our license agreements; impacts from economic downturns; changes in the retail industry and markets for our consumer products; our ability to maintain our relationships with retail customers and distributors; our ability to compete effectively; fluctuations in our gross margin; our dependence on content development and creation by third parties; the ongoing level of popularity of our products with consumers; our ability to develop and introduce products in a timely and cost-effective manner; our ability to obtain, maintain and protect our intellectual property rights or those of our licensors; potential violations of the intellectual property rights of others; risks associated with counterfeit versions of our products; our ability to attract and retain qualified employees and maintain our corporate culture; our use of third-party manufacturing; risks associated with climate change; increased attention to sustainability and environmental, social and governance initiatives; geographic concentration of our operations; risks associated with our international operations; changes in effective tax rates or tax law; our dependence on vendors and outsourcers; risks relating to government regulation; risks relating to litigation, including products liability claims and securities class action litigation; any failure to successfully integrate or realize the anticipated benefits of acquisitions or investments; future development and acceptance of blockchain networks; risks associated with receiving payments in digital assets; risk resulting from our e-commerce business and social media presence; our ability to successfully operate our information systems and implement new technology; risks relating to our indebtedness, including our ability to comply with financial and negative covenants under our Credit Agreement, as amended; our ability to secure additional financing on favorable terms or at all; the potential for our or our third-party providers’ electronic data or the electronic data of our customers to be compromised; the influence of our significant stockholder, TCG, and the possibility that TCG’s interests may conflict with the interests of our other stockholders; risks relating to our organizational structure; volatility in the price of our Class A common stock; and risks associated with our internal control over financial reporting. These and other important factors discussed under the caption “Risk Factors” in our quarterly report on Form 10-Q for the quarter ended September 30, 2024 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Funko, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands, except per share data) |
||||||||||||||
Net sales |
$ |
292,765 |
|
$ |
312,944 |
|
|
$ |
756,121 |
|
|
$ |
804,850 |
|
|
Cost of sales (exclusive of depreciation and amortization) |
|
172,956 |
|
|
|
208,936 |
|
|
|
445,992 |
|
|
|
581,258 |
|
Selling, general, and administrative expenses |
|
92,662 |
|
|
|
93,992 |
|
|
|
256,154 |
|
|
|
279,685 |
|
Depreciation and amortization |
|
15,411 |
|
|
|
15,465 |
|
|
|
46,409 |
|
|
|
44,334 |
|
Total operating expenses |
|
281,029 |
|
|
|
318,393 |
|
|
|
748,555 |
|
|
|
905,277 |
|
Income (loss) from operations |
|
11,736 |
|
|
|
(5,449 |
) |
|
|
7,566 |
|
|
|
(100,427 |
) |
Interest expense, net |
|
4,971 |
|
|
|
7,601 |
|
|
|
16,363 |
|
|
|
20,551 |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494 |
|
Gain on tax receivable agreement liability adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,620 |
) |
Other expense, net |
|
998 |
|
|
|
98 |
|
|
|
1,994 |
|
|
|
519 |
|
Income (loss) before income taxes |
|
5,767 |
|
|
|
(13,148 |
) |
|
|
(10,791 |
) |
|
|
(22,371 |
) |
Income tax expense |
|
1,170 |
|
|
|
3,076 |
|
|
|
2,859 |
|
|
|
130,859 |
|
Net income (loss) |
|
4,597 |
|
|
|
(16,224 |
) |
|
|
(13,650 |
) |
|
|
(153,230 |
) |
Less: net income (loss) attributable to non-controlling interests |
|
267 |
|
|
|
(1,215 |
) |
|
|
(432 |
) |
|
|
(9,912 |
) |
Net income (loss) attributable to Funko, Inc. |
$ |
4,330 |
|
|
$ |
(15,009 |
) |
|
$ |
(13,218 |
) |
|
$ |
(143,318 |
) |
Earnings (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.08 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.26 |
) |
|
$ |
(3.01 |
) |
Diluted |
$ |
0.08 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.26 |
) |
|
$ |
(3.01 |
) |
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
52,523 |
|
|
|
48,237 |
|
|
|
51,781 |
|
|
|
47,641 |
|
Diluted |
|
53,428 |
|
|
|
48,237 |
|
|
|
51,781 |
|
|
|
47,641 |
|
Funko, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited) |
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(In thousands, except per share data) |
||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
28,546 |
|
|
$ |
36,453 |
|
Accounts receivable, net |
|
172,653 |
|
|
|
130,831 |
|
Inventories |
|
118,563 |
|
|
|
119,458 |
|
Prepaid expenses and other current assets |
|
35,471 |
|
|
|
56,134 |
|
Total current assets |
|
355,233 |
|
|
|
342,876 |
|
Property and equipment, net |
|
78,805 |
|
|
|
91,335 |
|
Operating lease right-of-use assets, net |
|
55,158 |
|
|
|
61,499 |
|
Goodwill |
|
133,887 |
|
|
|
133,795 |
|
Intangible assets, net |
|
155,587 |
|
|
|
167,388 |
|
Other assets |
|
4,904 |
|
|
|
7,752 |
|
Total assets |
$ |
783,574 |
|
|
$ |
804,645 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Line of credit |
$ |
95,000 |
|
|
$ |
120,500 |
|
Current portion of long-term debt |
|
22,413 |
|
|
|
22,072 |
|
Current portion of operating lease liabilities |
|
17,365 |
|
|
|
17,486 |
|
Accounts payable |
|
78,295 |
|
|
|
52,919 |
|
Accrued royalties |
|
61,213 |
|
|
|
54,375 |
|
Accrued expenses and other current liabilities |
|
93,910 |
|
|
|
91,480 |
|
Total current liabilities |
|
368,196 |
|
|
|
358,832 |
|
Long-term debt |
|
105,967 |
|
|
|
130,986 |
|
Operating lease liabilities |
|
63,345 |
|
|
|
71,309 |
|
Other long-term liabilities |
|
5,634 |
|
|
|
5,478 |
|
|
|
|
|
||||
Commitments and Contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Class A common stock, par value |
|
5 |
|
|
|
5 |
|
Class B common stock, par value |
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
339,834 |
|
|
|
326,180 |
|
Accumulated other comprehensive income (loss) |
|
3,951 |
|
|
|
(180 |
) |
Accumulated deficit |
|
(107,282 |
) |
|
|
(94,064 |
) |
Total stockholders’ equity attributable to Funko, Inc. |
|
236,508 |
|
|
|
231,941 |
|
Non-controlling interests |
|
3,924 |
|
|
|
6,099 |
|
Total stockholders’ equity |
|
240,432 |
|
|
|
238,040 |
|
Total liabilities and stockholders’ equity |
$ |
783,574 |
|
|
$ |
804,645 |
|
Funko, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands) |
||||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(13,650 |
) |
|
$ |
(153,230 |
) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
46,409 |
|
|
|
42,592 |
|
Equity-based compensation |
|
10,530 |
|
|
|
7,521 |
|
Loss on debt extinguishment |
|
— |
|
|
|
494 |
|
Gain on tax receivable agreement liability adjustment |
|
— |
|
|
|
(99,620 |
) |
Deferred tax expense |
|
— |
|
|
|
123,206 |
|
Other, net |
|
(271 |
) |
|
|
1,143 |
|
Changes in operating assets and liabilities, net of amounts acquired: |
|
|
|
||||
Accounts receivable, net |
|
(38,547 |
) |
|
|
1,314 |
|
Inventories |
|
3,306 |
|
|
|
84,797 |
|
Prepaid expenses and other assets |
|
25,253 |
|
|
|
8,244 |
|
Accounts payable |
|
23,851 |
|
|
|
2,536 |
|
Accrued royalties |
|
6,838 |
|
|
|
(7,240 |
) |
Accrued expenses and other liabilities |
|
23 |
|
|
|
(14,624 |
) |
Net cash provided by (used in) operating activities |
|
63,742 |
|
|
|
(2,867 |
) |
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Purchases of property and equipment |
|
(20,796 |
) |
|
|
(30,861 |
) |
Acquisitions of businesses and related intangible assets, net of cash acquired |
|
— |
|
|
|
(5,274 |
) |
Sale of Funko Games inventory and certain intellectual property |
|
6,754 |
|
|
|
— |
|
Other |
|
655 |
|
|
|
551 |
|
Net cash used in investing activities |
|
(13,387 |
) |
|
|
(35,584 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Borrowings on line of credit |
|
25,000 |
|
|
|
71,000 |
|
Payments on line of credit |
|
(50,500 |
) |
|
|
— |
|
Payments of long-term debt |
|
(25,365 |
) |
|
|
(16,911 |
) |
Payments under tax receivable agreement |
|
(8,960 |
) |
|
|
— |
|
Other, net |
|
1,250 |
|
|
|
(2,780 |
) |
Net cash (used in) provided by financing activities |
|
(58,575 |
) |
|
|
51,309 |
|
|
|
|
|
||||
Effect of exchange rates on cash and cash equivalents |
|
313 |
|
|
|
(173 |
) |
|
|
|
|
||||
Net change in cash and cash equivalents |
|
(7,907 |
) |
|
|
12,685 |
|
Cash and cash equivalents at beginning of period |
|
36,453 |
|
|
|
19,200 |
|
Cash and cash equivalents at end of period |
$ |
28,546 |
|
|
$ |
31,885 |
|
The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands, except per share data) |
||||||||||||||
Net income (loss) attributable to Funko, Inc. |
$ |
4,330 |
|
|
$ |
(15,009 |
) |
|
$ |
(13,218 |
) |
|
$ |
(143,318 |
) |
Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock (1) |
|
267 |
|
|
|
(1,215 |
) |
|
|
(432 |
) |
|
|
(9,912 |
) |
Equity-based compensation (2) |
|
3,430 |
|
|
|
(916 |
) |
|
|
10,530 |
|
|
|
7,521 |
|
Loss on extinguishment of debt (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494 |
|
Acquisition transaction costs and other expenses (4) |
|
287 |
|
|
|
5,467 |
|
|
|
1,866 |
|
|
|
6,921 |
|
Certain severance, relocation and related costs (5) |
|
114 |
|
|
|
3,703 |
|
|
|
2,081 |
|
|
|
5,784 |
|
Foreign currency transaction loss (6) |
|
1,005 |
|
|
|
1,074 |
|
|
|
2,018 |
|
|
|
1,495 |
|
Inventory write-down (7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,084 |
|
Tax receivable agreement liability adjustments (8) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,620 |
) |
One-time disposal costs for unfinished goods held at offshore factories (9) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,404 |
|
One-time disposal costs for finished goods held at offshore factories (10) |
|
— |
|
|
|
6,148 |
|
|
|
— |
|
|
|
6,148 |
|
Income tax expense (11) |
|
(1,481 |
) |
|
|
2,494 |
|
|
|
1,433 |
|
|
|
146,144 |
|
Adjusted net income (loss) |
$ |
7,952 |
|
|
$ |
1,746 |
|
|
$ |
4,278 |
|
|
$ |
(45,855 |
) |
Adjusted net income (loss) margin (12) |
|
2.7 |
% |
|
|
0.6 |
% |
|
|
0.6 |
% |
|
|
(5.7 |
)% |
Weighted-average shares of Class A common stock outstanding-basic |
|
52,523 |
|
|
|
48,237 |
|
|
|
51,781 |
|
|
|
47,641 |
|
Equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock |
|
2,755 |
|
|
|
4,443 |
|
|
|
2,182 |
|
|
|
4,430 |
|
Adjusted weighted-average shares of Class A stock outstanding - diluted |
|
55,278 |
|
|
|
52,680 |
|
|
|
53,963 |
|
|
|
52,071 |
|
Adjusted earnings (loss) per diluted share |
$ |
0.14 |
|
|
$ |
0.03 |
|
|
$ |
0.08 |
|
|
$ |
(0.88 |
) |
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(amounts in thousands) |
||||||||||||||
Net income (loss) |
$ |
4,597 |
|
$ |
(16,224 |
) |
|
$ |
(13,650 |
) |
|
$ |
(153,230 |
) |
|
Interest expense, net |
|
4,971 |
|
|
|
7,601 |
|
|
|
16,363 |
|
|
|
20,551 |
|
Income tax expense |
|
1,170 |
|
|
|
3,076 |
|
|
|
2,859 |
|
|
|
130,859 |
|
Depreciation and amortization |
|
15,411 |
|
|
|
15,465 |
|
|
|
46,409 |
|
|
|
44,334 |
|
EBITDA |
$ |
26,149 |
|
|
$ |
9,918 |
|
|
$ |
51,981 |
|
|
$ |
42,514 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Equity-based compensation (2) |
|
3,430 |
|
|
|
(916 |
) |
|
|
10,530 |
|
|
|
7,521 |
|
Loss on extinguishment of debt (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494 |
|
Acquisition transaction costs and other expenses (4) |
|
287 |
|
|
|
5,467 |
|
|
|
1,866 |
|
|
|
6,921 |
|
Certain severance, relocation and related costs (5) |
|
114 |
|
|
|
3,703 |
|
|
|
2,081 |
|
|
|
5,784 |
|
Foreign currency transaction loss (6) |
|
1,005 |
|
|
|
1,074 |
|
|
|
2,018 |
|
|
|
1,495 |
|
Inventory write-down (7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,084 |
|
Tax receivable agreement liability adjustments (8) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,620 |
) |
One-time disposal costs for unfinished goods held at offshore factories (9) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,404 |
|
One-time disposal costs for finished goods held at offshore factories (10) |
|
— |
|
|
|
6,148 |
|
|
|
— |
|
|
|
6,148 |
|
Adjusted EBITDA |
$ |
30,985 |
|
|
$ |
25,394 |
|
|
$ |
68,476 |
|
|
$ |
3,745 |
|
Adjusted EBITDA margin (13) |
|
10.6 |
% |
|
|
8.1 |
% |
|
|
9.1 |
% |
|
|
0.5 |
% |
(1) |
Represents the reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock in periods in which income (loss) was attributable to non-controlling interests. |
|
(2) |
Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on the timing of awards. |
|
(3) |
Represents write-off of unamortized debt financing fees for the nine months ended September 30, 2023. |
|
(4) |
For the three months ended September 30, 2024, includes charges related to contract settlement agreements for warehouse leased space. For the nine months ended September 30, 2024, includes one-time legal settlement gain and contract settlement agreements and related services to and the fair market value adjustments of certain assets held for sale. For the three and nine months ended September 30, 2023, includes costs related to the termination of a lease agreement and related expenses, partially offset by acquisition-related benefits. |
|
(5) |
For the three and nine months ended September 30, 2024, includes severance and benefit costs related to certain management departures. For the three and nine months ended September 30, 2023, includes charges to remove leasehold improvements and return multiple |
|
(6) |
Represents both unrealized and realized foreign currency gains and losses on transactions denominated other than in |
|
(7) |
For the nine months ended September 30, 2023, represents a one-time inventory write-down to improve |
|
(8) |
Represents reduction of the tax receivable agreement liability as a result of recognizing a full valuation allowance of the Company’s deferred tax assets and anticipated inability to realize future tax benefits. |
|
(9) |
For the nine months ended September 30, 2023, represents one-time disposal costs related to unfinished goods held at offshore factories. |
|
(10) |
For the three and nine months ended September 30, 2023, represents one-time disposal costs related to finished goods held at offshore factories primarily due to customer order cancellations. |
|
(11) |
Represents the income tax expense effect of the above adjustments, except for the tax liability receivable adjustment. This adjustment uses an effective tax rate of |
|
(12) |
Adjusted net income (loss) margin is calculated as adjusted net loss as a percentage of net sales. |
|
(13) |
Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of net sales. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107672005/en/
Investor Relations:
investorrelations@funko.com
Media:
pr@funko.com
Source: Funko, Inc.
FAQ
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