Press release
Funko Reports First Quarter 2020 Financial Results
Announces Successful Amendment to Existing Credit Facilities Expects COVID-19 Impacts to Intensify in Q2 2020 EVERETT, Wash.--(BUSINESS WIRE)-- Funko, Inc.
About this update from Funko, Inc.
[{"type":"text","content":"\nAnnounces Successful Amendment to Existing Credit Facilities\nExpects COVID-19 Impacts to Intensify in Q2 2020\n\n EVERETT, Wash.--(BUSINESS WIRE)--\nFunko, Inc. (\"Funko,” or the “Company”) (Nasdaq: FNKO), a leading pop culture consumer products company, today reported its consolidated financial results for the first quarter ended March 31, 2020.\n\n\nFirst Quarter 2020 Financial Summary\n\n\n\nNet sales decreased 18% to $136.7 million\n\n\nGross profit1 decreased 13% to $55.3 million\n\n\nGross margin1 increased 240 basis points to 40.4%\n\n\nNet loss of $5.7 million\n\n\nAdjusted EBITDA2 of $10.6 million and Adjusted EBITDA Margin2 of 7.8%\n\n\nCash flow from operations increased 35% to $37.0 million\n\n\nTotal liquidity3 of $101.7 million as of March 31, 2020\n\n\n\nBrian Mariotti, Chief Executive Officer, stated, “As people around the world navigate the many challenges of COVID-19, I am incredibly grateful to our Funko employees for their hard work and unwavering commitment to delivering innovation, delighting our fans and driving long-term growth. In recent weeks, our management team acted decisively to mitigate business disruption and increase financial flexibility by reducing operating expenses, cutting capital expenditures and successfully amending our credit facility.”\n\n\nLiquidity Update\n\n\nAs of March 31, 2020, the Company had total liquidity3 of $101.7 million, comprised of cash and cash equivalents of $55.4 million and total revolver availability of $46.3 million. During the quarter, the Company implemented measures to preserve liquidity and cash on hand, which include:\n\n\n\nProactively drawing down a portion of the Company’s $75.0 million revolving credit facility to increase cash on hand;\n\n\nReducing operating expenses across personnel, marketing, travel, professional fees and contract labor which is expected to decrease planned SG&A expenses by $15 million in the second quarter of 2020;\n\n\nCutting non-product development capital expenditures, which is anticipated to reduce total capital expenditures by approximately one third for the year; and\n\n\nProactively managing working capital by reducing incoming inventory to align with anticipated demand.\n\n\n\nAs of April 30, 2020, the Company had over $60.0 million of cash on hand and $46.0 million of availability on its revolving credit facility, result...