Slide 1: Second Quarter 2021 Earnings
Second Quarter 2021 Earnings August 5, 2021
Slide 2: Cautionary Notes
HOLLYWOOD UPDATE 2 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: Everyone is a fan of something
3 FUNKO 2021 IS BUILT ON THE PRINCIPLE THAT EVERYONE IS A FAN OF SOMETHING…
Slide 4: Funko Has Something for Every Fan
4 FUNKO 2021 … 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, 2021.
Slide 5: Q2 Summary and Recent Operational Highlights
HOLLYWOOD UPDATE 5 Q2 Summary and Recent Operational Highlights Q2 2021 Financial Summary Q2 2021 Operational Highlights Net sales increased 140.7% to $236.1 million Gross margin(1) expanded 250 bps to 39.1% SG&A expenses increased 40% to $54.9 million; as a percent of net sales, SG&A declined 1,670
Slide 6: Q2 Earnings Summary
HOLLYWOOD UPDATE 6 Q2 Earnings Summary 2Q’21 2Q’20 % Change Net Sales Gross Profit(1) Gross Margin %(1) SG&A D&A Income (Loss) From Operations Operating Margin % Net Income (Loss) Net Income (Loss) Margin % Adjusted Net Income (Loss)(2) Adjusted Net Income (Loss) Margin %(2) Adjusted Earnings (Loss)
Slide 7: Q2 Active Properties & Net Sales per Active Property
HOLLYWOOD UPDATE 7 Q2 Active Properties & Net Sales per Active Property Second Quarter Active Properties up 23% Net Sales per Active Property up 96% Active Properties Net Sales per Active Property Funko is built on having a large and diverse set of licenses with the ability to leverage evergreen con
Slide 8: Top Properties Breakout
HOLLYWOOD UPDATE 8 Top Properties Breakout 1 2 3 5 7 4 6 8 9 10 Top 10 Properties % of Net Sales The top property in Q2’21 represented 6% of sales Evergreen properties accounted for 65% of sales in Q2’21 Q3’20 40% 7%* Q2’20 40% Q4’20 33% 6%*9%* Q2’21 Commentary Q1’21 30% 4%* *% of net sales Q2’21 31
Slide 9: Q2 Product Category Performance
HOLLYWOOD UPDATE 9 Q2 Product Category Performance 142% Increase 136% Increase The Figures category grew 142% in Q2 driven by broad-based strength across geographies; Funko’s Other product category grew 136% in Q2, driven by strength within our Loungefly branded products as well as board games and p
Slide 10: Something for Everyone
HOLLYWOOD UPDATE 10 Something for Everyone FIGURES OTHER *% of net sales for Q2’ 21 79% of Sales* 21% of Sales* Funko is providing fans with an increasingly diverse array of products and categories
Slide 11: Q2 Product Brand Performance
HOLLYWOOD UPDATE 11 Q2 Product Brand Performance Pop! 137% Increase Both Pop! and Loungefly branded products generated strong wholesale demand in the U.S. and Europe regions, as well as strength across our direct-to-consumer channels; Other branded products growth was driven by board games, new figu
Slide 12: YTD Product Brand Performance
HOLLYWOOD UPDATE 12 YTD Product Brand Performance Pop! 76% Increase Loungefly Other 106% Increase 104% Increase $191.2 $335.8 YTD'20 YTD'21 $26.2 $54.1 YTD'20 YTD'21 $17.4 $35.4 YTD'20 YTD'21 $ in millions, unaudited
Slide 13: Q2 Geographic Performance
HOLLYWOOD UPDATE 13 Q2 Geographic Performance United States 110% Increase The United States region grew 109% with strength across all channels and product categories; Europe grew 393%, with results exceeding 2019 levels on region-wide recovery; Other International grew 117% with all regions generati
Slide 14: YTD Geographic Performance
HOLLYWOOD UPDATE 14 YTD Geographic Performance United States 70% Increase Europe Other International 154% Increase 52% Increase $176.4 $299.7 YTD'20 YTD'21 $36.1 $91.8 YTD'20 YTD'21 $22.2 $33.8 YTD'20 YTD'21 $ in millions, unaudited
Slide 15: Q2 & YTD Adjusted EBITDA
HOLLYWOOD UPDATE 15 Q2 & TD Adjusted EBITDA(1) Adjusted EBITDA(1) Second Quarter Year-to-Date Adjusted EBITDA Margin(1) (1) See Supplemental Financial Information section for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most directly comparable US GAAP measure. Adjusted EBITDA Mar
Slide 16: Q2 & YTD Adjusted Net Income (Loss)
HOLLYWOOD UPDATE 16 Q2 & TD Adjusted Net Income (Loss)(1) (1) See Supplemental Financial Information section for a reconciliation of Adjusted Net Income (Loss), a non-GAAP measure, to the most directly comparable US GAAP measure. Adjusted Net Income Margin is defined as Adjusted Net Income (Loss) di
Slide 17: Key Balance Sheet Highlights
HOLLYWOOD UPDATE 17 Key Balance Sheet Highlights (1) Total Debt is defined as the amount outstanding under the Company’s Line of Credit plus Current Portion of Long-Term Debt, Net of Unamortized Discount plus Long-Term Debt, Net of Unamortized Discount (2) Total liquidity is calculated as cash and c
Slide 18: Liquidity Overview
HOLLYWOOD UPDATE 18 Liquidity Overview (1) Total liquidity is calculated as cash and cash equivalents plus availability under the Company’s $75.0 million revolving credit facility. Funko’s liquidity position remains strong and increased 96% from Q2’20 levels to $170.5 million Total Liquidity(1) $101
Slide 19: Debt Overview
HOLLYWOOD UPDATE 19 Debt Overview (1) Total Debt is defined as the amount outstanding under the Company’s Line of Credit plus Current Portion of Long-Term Debt, Net of Unamortized Discount plus Long-Term Debt, Net of Unamortized Discount Total debt decreased 26% versus Q2’20 Total Debt(1) $242.5 $23
Slide 20: Supplemental Financial Information
Supplemental Financial Information
Slide 21: Condensed Consolidated Statements of Operations (Unaudited)
HOLLYWOOD UPDATE 21 Condensed Consolidated Statements of Operations (Unaudited) 2021 2020 2021 2020 Net sales $ 236,110 $ 98,099 $ 425,287 $ 234,799 Cost of sales (exclusive of depreciation and amortization shown separately below) 143,756 62,182 254,609 143,599 Selling, general, and administrative e
Slide 22: Condensed Consolidated Balance Sheets (Unaudited)
HOLLYWOOD UPDATE 22 Condensed Consolidated Balance Sheets (Unaudited) June 30, 2021 December 31, 2020 Assets Current assets: Cash and cash equivalents $ 95,474 $ 52,255 Accounts receivable, net 138,855 131,837 Inventory 86,354 59,773 Prepaid expenses and other current assets 18,542 15,486 Total curr
Slide 23: Condensed Consolidated Statements of Cash Flows (Unaudited)
HOLLYWOOD UPDATE 23 Condensed Consolidated Statements of Cash Flows (Unaudited) 2021 2020 Operating Activities Net income (loss) $ 32,030 $ (20,741) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization and other 19,792 23,342 Equity-base
Slide 24: Reconciliation of Non-GAAP Financial Metrics (Unaudited)
HOLLYWOOD UPDATE 24 Reconciliation of Non-GAAP Financial Metrics (Unaudited) 1. Represents the reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock in periods in which income (loss) was attributable
Slide 25: Reconciliation of Non-GAAP Financial Metrics (Unaudited)
25 Reconciliation of Non-GAAP Financial Metrics (Unaudited) 1. Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on the timing of awards. 2. For the three and six months ended June 30, 2021, represents severance, relocation and rela
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