Funko, Inc. · NASDAQ:FNKO
Funko — Q4 2021 Earnings Presentation
26 slides from Funko's earnings presentation, Mar 3, 2022
Slide 1: Fourth Quarter 2021 Earnings
March 3, 2022 Fourth Quarter 2021 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 anticipated
Slide 3: 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 December 31, 2021. FUNKO 2022
Slide 5: Q4 and FY Financial Summary and Achievements
5 Q4 and FY Financial HOLLYWOOD Summary and Achievements UPDATE Q4 2021 Financial Summary Q4 2021 Achievements • Net sales increased 48% to $336.3 million • Net sales increased 48% to $336.3 million reflecting broad-based strength across geographies, products and channels • Net income increased 17%
Slide 6: Q4 & FY Earnings Summary
6 Q4 & FY Earnings UPDATE HOLLYWOOD Summary Q4’21 Q4’20 % Change FY’21 FY’20 % Change $ millions, except per share amounts, unaudited Net sales $336.3 $226.5 48.5% $1,029.3 $652.5 57.7% Gross profit(1) $113.9 $84.2 35.2% $381.0 $249.1 52.9% Gross margin %(1) 33.9% 37.2% 37.0% 38.2% SG&A 78.3 53.6 46
Slide 7: Q4 & FY Active Properties & Net Sales per Active Property
7 Q4 & FY Active Properties HOLLYWOOD UPDATE & Net Sales per Active Property Active Properties & Net Sales per Active Property Fourth Quarter Fiscal Year $ in thousands, unaudited Active Properties Net Sales per Active Property Active Properties up 26% Active Properties up 12% Net Sales per Active P
Slide 8: Top Properties Breakout
8 Top Properties Breakout HOLLYWOOD UPDATE Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q4’21 Commentary 1 6%* 4%* 6%* 6%* 5%* The top property in 2 Q4’21 represented 5% of sales 3 Evergreen properties accounted for 69% of 4 sales in Q4’21 5 6 7 8 9 10 Top 10 *% of net sales Properties 33% 30% 31% 33% 31% % of Net
Slide 9: Q4 & FY Product Category Performance
9 Q4 & FY Product Category HOLLYWOOD UPDATE Performance Figures Other (Non-figures) Fourth Quarter Fiscal Year Fourth Quarter Fiscal Year $ in millions, unaudited 49.9% 58.5% 44.1% 55.0% Increase Increase Increase Increase The Figures category grew 49.9% in Q4 reflecting strong domestic and internat
Slide 10: Something for Everyone
10 Something for Everyone HOLLYWOOD UPDATE Funko is providing fans with an increasingly diverse array of products and categories FIGURES OTHER (NON-FIGURES) 75.9% of 24.1% of sales* sales* *% of Q4’21 net sales
Slide 11: Q4 Brand Performance
11 Q4 Brand Performance HOLLYWOOD UPDATE Pop! Loungefly Other $ in millions, unaudited 40.9% 57.0% 88.0% Increase Increase Increase Pop! grew 40.9% reflecting strong evergreen content growth as well as an improved slate of current content; Loungefly grew 57.0% driven by strong domestic and internati
Slide 12: FY Brand Performance
12 FY Brand Performance HOLLYWOOD UPDATE Pop! Loungefly Other $ in millions, unaudited 54.3% 65.7% 72.1% Increase Increase Increase
Slide 13: Q4 Geographic Performance
13 Q4 Geographic Performance HOLLYWOOD UPDATE United States Europe Other International $ in millions, unaudited 47.5% 58.9% 31.6% Increase Increase Increase The U.S. grew 47.5% and Europe grew 58.9%, with strength across all channels and product categories; Other International grew 31.6% across the
Slide 14: FY Geographic Performance
14 FY Geographic Performance HOLLYWOOD UPDATE United States Europe Other International $ in millions, unaudited 52.2% 91.7% 36.7% Increase Increase Increase
Slide 15: Q4 & FY Adjusted EBITDA
15 Q4 & FY AdjustedUPDATE HOLLYWOOD EBITDA(1) Adjusted EBITDA(1) Fourth Quarter Fiscal Year $ in millions, unaudited Adjusted EBITDA 14.7% 11.6% 12.3% 6.6% 14.6% Margin(1) Q4 Adjusted EBITDA(1) increased 17.2% y/y, while Q4 Adjusted EBITDA margin(1) declined 308 bps y/y, due to significant inflation
Slide 16: Q4 & FY Adjusted Net Income
16 Q4 & FY AdjustedUPDATE HOLLYWOOD Net Income(1) Adjusted Net Income(1) Fourth Quarter Fiscal Year $ in millions, unaudited Adjusted Net Income 6.7% 6.1% 2.9% 6% 7.4% Margin(1) Q4 Adjusted Net Income(1) increased 17.1% y/y, while Q4 Adjusted Net Income margin(1) declined 50 bps y/y due to significa
Slide 17: Key Balance Sheet Highlights
17 Key Balance SheetUPDATE HOLLYWOOD Highlights $ in millions 12/31/21 12/31/20 YoY % Change Cash & Cash $83.6 $52.3 59.9% Equivalents Accounts Receivable, $187.7 $131.8 42.4% net Inventory $166.4 $59.8 178.4% Total Debt(1) $173.2 $190.8 (9.2)% Total Liquidity(2) $183.6 $127.3 44.2% 1. Total Debt is
Slide 18: Liquidity Overview
18 Liquidity Overview HOLLYWOOD UPDATE Total Liquidity(1) 2020 2021 $ in millions, unaudited Funko’s liquidity position remains very healthy, increasing 44% y/y to $183.6 million 1. Total liquidity is calculated as cash and cash equivalents plus availability under the Company’s $100.0 million revolv
Slide 19: Debt Overview
19 Debt Overview UPDATE HOLLYWOOD Total Debt(1) 2020 2021 $ in millions, unaudited Funko reduced total debt by 9% from Q4’20 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,
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 December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 (in thousands, except per share data) Net sales $ 336,273 $ 226,509 $ 1,029,293 $ 652,537 Cost of sales (exclusive of depreciation and a
Slide 22: Condensed Consolidated Balance Sheets
22 Condensed Consolidated Balance Sheets December 31, HOLLYWOOD UPDATE 2021 2020 (in thousands, except per share data) Assets Current assets: Cash and cash equivalents $ 83,557 $ 52,255 Accounts receivable, net 187,688 131,837 Inventory 166,428 59,773 Prepaid expenses and other current assets 14,925
Slide 23: Condensed Consolidated Statements of Cash Flows
23 Condensed Consolidated Statements of Cash Flows HOLLYWOOD UPDATE Year Ended December 31, 2021 2020 2019 (in thousands) Operating Activities Net income $ 67,854 $ 9,763 $ 27,820 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 4
Slide 24: Reconciliation of Non-GAAP Financial Metrics
24 Reconciliation of Non-GAAP Financial Metrics Three Months Ended December 31, Twelve Months Ended December 31, HOLLYWOOD UPDATE 2021 2020 2021 2020 (in thousands, except per share data) Net income attributable to Funko, Inc. $ 11,672 $ 8,876 $ 43,900 $ 3,961 Reallocation of net income (loss) attri
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, 2021 2020 2021 2020 (in thousands) Net income $ 17,449 $ 14,907 $ 67,854 $ 9,763 Interest expense, net 1,246 2,491 7,167 10,712 Income tax expense 4,247 3,164 17,061 2,025 Depreciation an
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