Press release
Funko Reports Third Quarter 2020 Financial Results
Strong Gross Margin and Cost Controls Drive Increased Profitability EVERETT, Wash.--(BUSINESS WIRE)-- Funko, Inc. ("Funko,” or the “Company”) (Nasdaq: FNKO),
About this update from Funko, Inc.
[{"type":"text","content":"\nStrong Gross Margin and Cost Controls Drive Increased Profitability\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 third quarter ended September 30, 2020.\n\nThird Quarter 2020 Financial Summary\n\n\nNet sales of $191.2 million\n\n\nGross margin1 increased 30bps to 38.6%\n\n\nSG&A expenses decreased 21% to $41.2 million\n\n\nNet income of $15.6 million\n\n\nNet income margin increased 120bps to 8.2%\n\n\nAdjusted EBITDA2 of $36.2 million\n\n\nAdjusted EBITDA margin2 increased 70bps to 18.9%\n\n\nTotal liquidity3 of $106.9 million as of September 30, 2020\n\n\nCash flow from operations increased 87% to $28.1 million\n\n\nThird Quarter 2020 Operating Highlights\n\n\nStrong consumer demand within the domestic mass-market and third party e-commerce channels\n\n\nFunko’s direct-to-consumer e-commerce sales increased more than 150% compared to prior year\n\n\nLoungefly branded products grew 25% compared to prior year, driven by strong momentum on Loungefly.com and within wholesale channels\n\n\n70% of sales were attributable to evergreen content\n\n\nExpansion of Adjusted EBITDA margin2 to 18.9% driven by strong gross margin1 and cost controls\n\n\nIncreased profitability, combined with close management of working capital, drove a 53% increase in total liquidity3 compared to prior year\n\n\n\"Our teams have executed well in 2020 despite the challenges presented by the pandemic,\" said Brian Mariotti, Chief Executive Officer. “In the third quarter, we outperformed revenue expectations, reflecting strength within our domestic mass market and digital channels. We also maintained strong gross margins and cost controls, which allowed us to deliver improved profitability. The quarter was highlighted by our successful evergreen programs, expanded product offerings and enhanced e-commerce capabilities, all of which are enabling us to drive increased engagement with our fans around the globe.”\n\n\"While we expect to face continued headwinds in specific channels and regions in the fourth quarter, we believe we are well positioned for the holiday season with our most diverse product offering yet and an expanded presence within key retail partners. Looking further ahead, we are staying focu...