Slide 1: Second Quarter 2022 Earnings
August 4, 2022 Second Quarter 2022 Earnings
Slide 2: Cautionary Notes
2 Cautionary NotesUPDATE HOLLYWOOD This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding our future resu
Slide 3: Funko is built on the principle that everyone is a fan of something
3 is built on the principle that everyone is a fan of something… FUNKO 2022
Slide 4: … and Funko Has Something for Every Fan
4 … and Funko Has Something for Every Fan Movies TV Music Sports Anime Games Note: Represents a sampling of our current portfolio offerings as of June 30, 2022. FUNKO 2022
Slide 5: Q2 Operating Highlights
5 Q2 Operating Highlights HOLLYWOOD UPDATE • Broad-based net sales growth in all geographies and brand categories • Record net sales quarter for Loungefly ($70.0 million, +114% y/y) • Direct-to-consumer sales grew 26% y/y on continued growth in e-commerce and physical store operating metrics • Conti
Slide 6: Q2 & YTD Financial Summary
6 Q2 & YTD Financial HOLLYWOOD Summary UPDATE Q2’22 Q2’21 % Change YTD’22 YTD’21 % Change $ millions, except per share amounts, unaudited Net sales $315.7 $236.1 33.7% $624.1 $425.3 46.7% Gross profit(1) $103.1 $92.4 11.7% $211.8 $170.7 24.1% Gross margin %(1) 32.7% 39.1% 33.9% 40.1% SG&A $82.7 $54.
Slide 7: Q2 Active Properties & Net Sales per Active Property
7 Q2 Active Properties HOLLYWOOD & Net Sales per Active Property UPDATE Active Properties & Net Sales per Active Property Second Quarter Year-to-Date $ in thousands, unaudited Active Properties Net Sales per Active Property Active Properties down 4.2% Active Properties up 0.6% Net Sales per Active P
Slide 8: Top Properties Breakout
8 Top Properties Breakout Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q2'22 6%* 6%* 5%* 6%* 6%* Commentary 1 The top property in 2 Q2'22 represented 6% of sales 3 Evergreen properties accounted for 63% of 4 sales in Q2'22 5 6 7 8 9 10 10 *% of net sales Top 10 31% 33% 31% 31% 34% Properties % of Net Sales
Slide 9: Q2 Geographic Performance
9 Q2 Geographic Performance HOLLYWOOD UPDATE United States Europe Other International $ in millions, unaudited 41.7% 21.8% 1.2% increase increase increase US net sales grew 41.7% driven by strong Loungefly, direct-to-consumer and mass market sales; Europe net sales grew 21.8% driven by focused execu
Slide 10: YTD Geographic Performance
10 YTD Geographic Performance HOLLYWOOD UPDATE United States Europe Other International $ in millions, unaudited 54.6% 31.2% 19.2% increase increase increase
Slide 11: Q2 Brand Category Performance
11 Q2 Brand Category HOLLYWOOD Performance UPDATE Core Collectible Loungefly Other $ in millions, unaudited 21.3% 114.3% 11.6% increase increase increase Core Collectible Brands grew on strong results across the category, including Pop! and newer brands like Soda and Popsies; Loungefly growth was pr
Slide 12: YTD Brand Category Performance
12 YTD Brand Category HOLLYWOOD Performance UPDATE Core Collectible Loungefly Other $ in millions, unaudited 35.5% 109.6% 63.6% increase increase increase
Slide 13: Q2 & YTD Adjusted EBITDA
13 3 Q2 & YTD Adjusted HOLLYWOOD EBITDA(1) UPDATE Adjusted EBITDA(1) Second Quarter Year-to-Date $ in millions, unaudited Adjusted EBITDA 17.4% 10.1% 16.7% 10.9% 6.6% Margin(1) Inflationary supply chain pressures as well as in-quarter expenses related to our distribution center relocation and ERP im
Slide 14: Q2 & YTD Adjusted Net Income
14 4 Q2 & YTD Adjusted HOLLYWOOD Net Income(1) UPDATE Adjusted Net Income(1) Second Quarter Year-to-Date $ in millions, unaudited Adjusted Net Income 9.2% 4.4% 8.1% 5.2% 6% Margin(1) Inflationary supply chain pressures as well as in-quarter expenses related to our distribution center relocation and
Slide 15: Key Balance Sheet Highlights
15 5 Key Balance SheetUPDATE HOLLYWOOD Highlights $ in millions, unaudited 6/30/2022 6/30/2021 YoY % Change Cash & Cash $56.2 $95.5 (41.1)% Equivalents Accounts Receivable, $195.6 $138.9 40.9% net Inventory $234.0 $86.4 170.9% Total Debt(1) $234.5 $177.4 32.2% Total Liquidity(2) $86.2 $170.5 (49.4)%
Slide 16: Liquidity Overview
16 6 Liquidity Overview HOLLYWOOD UPDATE Total Liquidity(1) 2021 2022 $ in millions, unaudited Liquidity declined y/y due to variability in quarterly cash flow, greater working capital needs due to supply chain disruption, near-term infrastructure investments and an in-quarter acquisition 1. Total l
Slide 17: Debt Overview
17 7 Debt Overview UPDATE HOLLYWOOD Total Debt(1) 2021 2022 $ in millions, unaudited Total debt increased 32.2% from Q2’21 to support near-term infrastructure investments 1. Total Debt is defined as the amount outstanding under the Company’s Line of Credit plus Current Portion of Long-Term Debt, Net
Slide 18: Supplemental Financial Information
Supplemental Financial Information
Slide 19: Condensed Consolidated Statements of Operations
19 9 Condensed Consolidated Statements of Operations HOLLYWOOD UPDATE (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share data) Net sales $ 315,716 $ 236,110 $ 624,059 $ 425,287 Cost of sales (exclusive of depreciation and amortizatio
Slide 20: Condensed Consolidated Balance Sheets
20 Condensed Consolidated Balance Sheets HOLLYWOOD UPDATE June 30, 2022 (unaudited) December 31, 2021 (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents $ 56,191 $ 83,557 Accounts receivable, net 195,644 187,688 Inventory 233,974 166,428 Prepaid expenses and ot
Slide 21: Condensed Consolidated Statements of Cash Flows
21 Condensed Consolidated Statements of Cash Flows HOLLYWOOD UPDATE (Unaudited) Six Months Ended June 30, 2022 2021 (In thousands) Operating Activities Net income $ 30,311 $ 32,030 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation, amortization
Slide 22: Reconciliation of Non-GAAP Financial Metrics
22 Reconciliation of Non-GAAP Financial Metrics HOLLYWOOD UPDATE (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share data) Net income attributable to Funko, Inc. $ 14,672 $ 13,813 $ 24,554 $ 20,327 Reallocation of net income attributa
Slide 23: Reconciliation of Non-GAAP Financial Metrics
23 Reconciliation of Non-GAAP Financial Metrics (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (amounts in thousands) Net income $ 15,793 $ 20,944 $ 30,311 $ 32,030 Interest expense, net 1,667 1,973 2,877 4,210 Income tax (benefit) expense (8,952) 4,582 (5,274)
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