Slide 1: Fourth Quarter 2020 Earnings
March 11, 2021 Fourth Quarter 2020 Earnings
Slide 2: Cautionary Notes
2 HOLLYWOOD UPDATE 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 res
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 2020
Slide 4: 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 December 2020. FUNKO 2020
Slide 5: Q4 Summary and Operational Highlights
5 HOLLYWOOD UPDATE Q4 Summary and Operational Highlights Q4 2020 Financial Summary Q4 2020 Operational Highlights U.S. net sales increased 18% to $171 million, representing Net sales increased 6% to $226.5 million Funko’s largest quarter ever domestically Gross margin(1) increased to 37.2% Net sales
Slide 6: Q4 & FY Earnings Summary
6 HOLLYWOOD UPDATE Q4 & FY Earnings Summary 4Q’20 4Q’19 % Change FY’20 FY’19 % Change $ in millions, except per share amounts, unaudited Net Sales $226.5 $213.6 6.1% $652.5 $795.1 (17.9%) Gross Profit(1) $84.2 $62.4 34.9% $249.1 $282.5 (11.8%) Gross Margin %(1) 37.2% 29.2% 38.2% 35.5% SG&A 53.6 57.3
Slide 7: Active Properties & Net Sales per Active Property
7 HOLLYWOOD UPDATE & Net Sales per Active Property Q4 & FY Active Properties Active Properties & Net Sales per Active Property Fourth Quarter Fiscal Year $ in thousands, unaudited Active Properties Net Sales per Active Property 950 854 $1,200 800 724 804 667 850 $500 $1,000 700 $989 750 600 $400 $80
Slide 8: Top Properties Breakout
8 HOLLYWOOD Top PropertiesUPDATE Breakout Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q4’20 Commentary 1 6%* 4%* 9%* 7%* 6%* The top property in 2 Q4’20 represented 6% of sales 3 Evergreen properties accounted for 68% of 4 sales in Q4’20 5 6 7 8 9 10 Top 10 *% of net sales Properties 38% 31% 40% 40% 33% % of Net
Slide 9: Q4 & FY Product Category Performance
9 HOLLYWOOD UPDATE Q4 & FY Product Category Performance Figures Other Fourth Quarter Fiscal Year Fourth Quarter Fiscal Year $ in millions, unaudited 22% 30% 3% Flat Decrease Increase Decrease $170.2 $170.2 $642.5 $152.6 $56.3 $148.6 $504.0 $43.3 Q4'19 Q4'20 FY'19 FY'20 Q4'19 Q4'20 FY'19 FY'20 The fi
Slide 10: Something for Everyone
10 HOLLYWOOD Something forUPDATE Everyone Fans can find their something as the world of Funko continues to expand with new product categories FIGURES OTHER 75% of 25% of Sales* Sales* *% of net sales for Q4’ 20
Slide 11: Q4 Product Brand Performance
11 HOLLYWOOD UPDATE Q4 Product Brand Performance Pop! Loungefly Other Branded Products $ in millions, unaudited 1% 51% 5% Increase Increase Increase $168.3 $169.4 $31.6 $24.3 $25.5 $21.0 Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 The Pop! brand increased 1% driven by 12% growth domestically offset by conti
Slide 12: FY Product Brand Performance
12 HOLLYWOOD UPDATE FY Product Brand Performance Pop! Loungefly Other Branded Products $ in millions, unaudited 20% 17% 28% Decrease Increase Decrease $624.6 $84.8 $72.5 $98.0 $497.3 $70.4 FY'19 FY'20 FY'19 FY'20 FY'19 FY'20 Loungefly branded products increased 17% driven by sustained retailer and c
Slide 13: Q4 Geographic Performance
13 HOLLYWOOD Q4 GeographicUPDATE Performance United States Europe Other International $ in millions, unaudited 18% 24% 7% Increase Decrease Decrease $171.5 $52.8 $144.9 $15.9 $14.7 $40.3 Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 The United States region grew 18% primarily due to continued strength within
Slide 14: FY Geographic Performance
14 HOLLYWOOD FY GeographicUPDATE Performance United States Europe Other International $ in millions, unaudited 7% 44% 29% Decrease Decrease Decrease $73.0 $523.9 $488.8 $198.2 $51.7 $112.0 FY'19 FY'20 FY'19 FY'20 FY'19 FY'20 Sales in the United States region decreased 7% in 2020, better than the ove
Slide 15: Q4 & FY Adjusted EBITDA
15 HOLLYWOOD UPDATE Q4 & FY Adjusted EBITDA(1) Adjusted EBITDA(1) Fourth Quarter Fiscal Year $ in millions, unaudited 29% 35% Increase Decrease $123.0 $33.2 $25.7 $80.2 Q4'19 Q4'20 FY'19 FY'20 Adjusted EBITDA 12.0% 14.7% 15.5% 12.3% 6.6% Margin(1) Strong gross margin and cost controls drove an incre
Slide 16: Q4 & FY Adjusted Net Income
16 HOLLYWOOD UPDATE Q4 & FY Adjusted Net Income(1) Adjusted Net Income(1) Fourth Quarter Fiscal Year $ in millions, unaudited 72% 62% Increase Decrease $49.9 $15.2 $8.9 $18.9 Q4'19 Q4'20 FY'19 FY'20 Adjusted Net Income 4.2% 6.7% 6.3% 2.9% 6% Margin(1) Adjusted Net Income margin(1) increased by 250bp
Slide 17: Key Balance Sheet Highlights
17 HOLLYWOOD UPDATE Key Balance Sheet Highlights $ in millions, unaudited 12/31/2020 12/31/2019 YoY % Change Cash & Cash Equivalents $52.3 $25.2 107.1% Accounts Receivable, net $131.8 $151.6 (13.0%) Inventory $59.8 $62.1 (3.8%) Total Debt(1) $190.8 $242.3 (21.3%) Total Liquidity(2) $127.3 $74.4 71.0
Slide 18: Liquidity Overview
18 HOLLYWOOD UPDATE Liquidity Overview Total Liquidity(1) 2019 2020 $ in millions, unaudited $127.3 $101.7 $106.9 $87.0 $75.1 $75.2 $70.0 $74.4 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Funko’s liquidity position remains strong and increased 71% from Q4’19 levels to $127.3 million (1) Total li
Slide 19: Debt Overview
19 HOLLYWOOD Debt OverviewUPDATE Total Debt(1) 2019 2020 $ in millions, unaudited $247.1 $241.3 $242.3 $242.5 $237.7 $239.9 $208.1 $190.8 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Strong cash flow and liquidity allowed Funko to decrease its total debt1 in 2020 by over $50 million, or 21%, from
Slide 20: Supplemental Financial Information
Supplemental Financial Information
Slide 21: Condensed Consolidated Statements of Operations
21 Condensed Consolidated Statements of Operations HOLLYWOOD UPDATE(Unaudited) Three Months Ended Decem ber 31, Tw elve Months Ended Decem ber 31, 2020 2019 2020 2019 (in thousands, except per share data) Net sales $ 226,509 $ 213,551 $ 652,537 $ 795,122 Cost of sales (exclusive of depreciation and
Slide 22: Condensed Consolidated Balance Sheets
22 Condensed Consolidated Balance Sheets HOLLYWOOD UPDATE 2020 Decem ber 31, 2019 (in thousands, except per share data) Assets Current assets: Cash and cash equivalents $ 52,255 $ 25,229 Accounts receivable, net 131,837 151,564 Inventory 59,773 62,124 Prepaid expenses and other current assets 15,486
Slide 23: Condensed Consolidated Statements of Cash Flows
23 Condensed Consolidated Statements of Cash Flows HOLLYWOOD UPDATE 2020 Y e a r E nde d D e c e m be r 3 1, 2 0 19 ( in t ho us a nds ) 2 0 18 Operating Activities Net income $ 9,763 $ 27,820 $ 25,062 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, am
Slide 24: Reconciliation of Non-GAAP Financial Metrics
24 Reconciliation of Non-GAAP Financial Metrics HOLLYWOOD UPDATE Three Months Ended December 31, 2020 2019 Twelve Months Ended December 31, 2020 (in thousands, except per share data) 2019 Net income (loss) attributable to Funko, Inc. $ 8,876 $ (4,241) $ 3,961 $ 11,725 Reallocation of net income (los
Slide 25: Reconciliation of Non-GAAP Financial Metrics
25 Reconciliation of Non-GAAP Financial Metrics Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 (in thousands) Net income (loss) $ 14,907 $ (6,288) $ 9,763 $ 27,820 Interest expense, net 2,491 2,887 10,712 14,342 Income tax expense (benefit) 3,164 (1,988) 2,025 4
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