Press release
Funko Reports 2023 Second Quarter Financial Results, Revises Full-Year Outlook
-- Company Provides Update on Operational Improvement Initiatives, Implements Substantial Additional Cost Savings Measures -- EVERETT, Wash.--(BUSINESS
About this update from Funko, Inc.
[{"type":"text","content":"\n-- Company Provides Update on Operational Improvement Initiatives, Implements Substantial Additional Cost Savings Measures --\n\n\n EVERETT, Wash.--(BUSINESS WIRE)--\nFunko, Inc. (Nasdaq: FNKO), a leading pop culture lifestyle brand, today reported consolidated financial results for its second quarter ended June 30, 2023.\n\n\nSecond Quarter Financial Results Summary: 2023 vs 2022\n\n\n\nNet sales were $240.0 million for the 2023 second quarter versus $315.7 million for the 2022 second quarter\n\n\n\nGross margin was 29.2% for the 2023 second quarter versus 32.7% for the 2022 second quarter\n\n\n\nSG&A expenses were $85.6 million for the 2023 second quarter versus $82.7 million for the 2022 second quarter\n\n\n\nNet loss was $75.9 million, or $1.54 per share, for the 2023 second quarter, which includes a company established full valuation allowance against its deferred tax asset of $138.1 million, offset by an adjustment to the tax receivable agreement liability of $99.6 million, the net effect of which was a non-cash charge of $38.5 million. This compares to net income of $15.8 million, or $0.28 per diluted share, for the 2022 second quarter\n\n\n\nAdjusted net loss* was $22.3 million, or $0.43 per share, for the 2023 second quarter versus adjusted net income* of $14.0 million, or $0.26 per diluted share per share\n\n\n\nNegative adjusted EBITDA* was $7.6 million for the 2023 second quarter versus adjusted EBITDA* of $31.8 million for the 2022 second quarter\n\n\n\n“For the 2023 second quarter, net sales and adjusted EBITDA* loss were within our guidance, and SG&A expenses were better than expected and an improvement over the preceding quarter,” said Michael Lunsford, recently appointed Interim Chief Executive Officer of Funko. “Ongoing inventory de-stocking by some of our larger U.S. wholesale customers impacted our topline and profitability. We anticipate that this softness will continue in the second half of this year and, as a result, we have lowered our full-year guidance.\n\n\n“We have also begun re-shaping the company to focus our energies and resources on Funko’s core products. To that end, we are implementing a strategic plan to reduce the number of product lines and complexity in our business. Putting our fans and brand first, running the business like a lean startup and investing in areas where we can grow profitab...