Funko, Inc. · NASDAQ:FNKO

Funko — Q1 2020 Earnings Presentation

16 slides from Funko's earnings presentation, May 7, 2020

  1. Slide 1: First Quarter 2020 Earnings

    First Quarter 2020 Earnings May 7, 2020

  2. Slide 2: Cautionary Notes

    Cautionary Notes 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 results of operations

  3. Slide 3: Built on the principle that everyone is a fan of something

    is built on the principle that everyone is a fan of something… 3

  4. Slide 4: …and Funko has something for every fan

    …and Funko has something for every fan Funko is like an “index fund” for pop culture 4 NOTE: Represents a sampling of our current portfolio of properties as of January 2020.

  5. Slide 5: Q1 Summary & Recent Developments

    Q1 Summary & Recent Developments First Quarter 2020 Financial Summary Existing Credit Facility Amendment  Net sales decreased 18% to $136.7 million  On May 5, 2020, certain of the Company’s subsidiaries entered into an amendment to their existing credit  Gross profit( 1) decreased 13% to $55.3 mi

  6. Slide 6: Q1 Earnings Summary

    Q1 Earnings Summary $ in millions, except per share amounts, 1Q’20 1Q’19 % Change unaudited Net Sales $136.7 $167.1 (18.2%) Gross Profit(1) $55.3 $63.4 (12.8%) Gross Margin %(1) 40.4% 38.0% Operating (Loss) Income $(3.0) $12.7 (123.8%) Operating Margin % (2.2)% 7.6% Net (Loss) Income $(5.7) $7.1 (18

  7. Slide 7: Top Properties Breakout

    Top Properties Breakout Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 The top property in Q1’20 represented only 1 10%* 6%* 9%* 6%* 4%* 4% of sales Evergreen properties 2 accounted for 58% of sales in Q1’20 3 In Q1’20 active properties increased 4 11% year-over-year, to 681 5 Net sales per active property declined

  8. Slide 8: Q1 Category and Geographic Performance

    Q1 Category and Geographic Performance Product Category Geography Figures Other United States International $ in millions, unaudited 18% 18% 10% 34% Decrease Decrease Decrease Decrease $136.2 $108.9 $58.2 $111.3 $30.9 $98.5 $25.4 $38.2 Q1'19 Q1'20 Q1'19 Q1'20 Q1'19 Q1'20 Q1'19 Q1'20  In Q1’20, the

  9. Slide 9: Something for Everyone

    Something for Everyone Fans can find their something as the world of Funko continues to expand with new product categories. FIGURES OTHER 81% of 19% of Sales* Sales* 9 *% of net sales for Q1’ 20

  10. Slide 10: Q1 Non-GAAP Financial Metrics

    Q1 Non-GAAP Financial Metrics(1) Adjusted Net (Loss) Income Adjusted EBITDA $ in millions, unaudited $ in millions, unaudited $8.3 $25.3 $10.6 ($2.3) Q1'19 Q1'20 Q1'19 Q1'20 Adjusted Adjusted Net (Loss) 5.0% (1.7%) EBITDA 15.2% 7.8% Income Margin Margin % Decline in Adjusted Net (Loss) Income and Ad

  11. Slide 11: Key Balance Sheet Highlights

    Key Balance Sheet Highlights 3/31/2020 3/31/2019 YoY % Change $ in millions, unaudited Cash & Cash Equivalents $55.4 $22.5 145.8% Accounts $105.2 $117.9 (10.8%) Receivable, net Inventory $53.3 $75.9 (29.8%) Total Debt(1) $242.5 $247.1 (1.8%) Total Liquidity(2) $101.7 $75.1 35.4% 11 (1) Total Debt is

  12. Slide 12: Supplemental Financial Information

    Supplemental Financial Information

  13. Slide 13: Q1 Condensed Consolidated Statements of Operations

    Q1 Condensed Consolidated Statements of Operations Q1’20 Q1’19 % Change $ in thousands, unaudited Net Sales $136,700 $167,065 (18.2%) Cost of Sales(1) 81,417 103,656 (21.5%) Gross Profit(1) 55,283 63,409 (12.8%) Gross Margin(1) 40.4% 38.0% Selling, General and Administrative Expenses 47,313 40,468 1

  14. Slide 14: Condensed Consolidated Balance Sheet

    Condensed Consolidated Balance Sheet 3/31/2020 12/31/2019 $ in thousands, unaudited Cash and Cash Equivalents $55,413 $25,229 Accounts Receivable, net 105,176 151,564 Inventory 53,284 62,124 Prepaid Expenses & Other Current Assets 15,031 20,280 Total Current Assets 228,904 259,197 Property & Equipme

  15. Slide 15: Reconciliation of Non-GAAP Financial Metrics

    Reconciliation of Non-GAAP Financial Metrics Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 (In thousands, except per share data) (am ounts in thousands) Net (loss) income attributable to Funko, Inc. $ (4,126) $ 2,195 Net (loss) income $ (5,732) $ 7,145 Reallocation of

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