Slide 1: First Quarter 2021 Earnings
May 6, 2021 First Quarter 2021 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 2021
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 March, 2021. FUNKO 2021
Slide 5: Q1 Summary and Operational Highlights
5 HOLLYWOOD UPDATE Q1 Summary and Operational Highlights Q1 2021 Financial Summary Q1 2021 Operational Highlights U.S. net sales increased 39% to $136.5 million and Europe net Net sales increased 38% to $189.2 million sales increased 55% to $39.8 million, reflecting a strong Gross margin(1) expanded
Slide 6: Q1 Earnings Summary
6 HOLLYWOOD UPDATE Q1 Earnings Summary 1Q’21 1Q’20 % Change millions, except per share amounts, unaudited Net Sales $189.2 $136.7 38.4% Gross Profit(1) $78.3 $55.3 41.7% Gross Margin %(1) 41.4% 40.4% SG&A $51.3 $47.3 8.4% D&A $10.3 11.0 (6.6%) Income (Loss) From Operations $16.8 ($3.0) n/m Operating
Slide 7: Q1 Active Properties & Net Sales per Active Property
7 HOLLYWOOD UPDATE Q1 Active Properties & Net Sales per Active Property Active Properties & Net Sales per Active Property First Quarter $ in thousands, unaudited Active Properties Net Sales per Active Property 800 762 681 $500 700 600 $400 500 $300 400 $248 300 $200 200 $201 $100 100 0 $- Q1'20 Q1'2
Slide 8: Top Properties Breakout
8 HOLLYWOOD Top PropertiesUPDATE Breakout Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q1’21 Commentary 1 4%* 9%* 7%* 6%* 4%* The top property in 2 Q1’21 represented 4% of sales 3 Evergreen properties accounted for 66% of 4 sales in Q1’21 5 6 7 8 9 10 Top 10 *% of net sales Properties 31% 40% 40% 33% 30% % of Net
Slide 9: Q1 Product Category Performance
9 HOLLYWOOD UPDATE Q1 Product Category Performance Figures Other First Quarter First Quarter $ in millions, unaudited 35% 52% Increase Increase $150.6 $38.5 $111.3 $25.4 Q1'20 Q1'21 Q1'20 Q1'21 The Figures category grew 35% driven by strong demand recovery in the U.S. and Europe regions; Funko’s Oth
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 80% of 20% of Sales* Sales* *% of net sales for Q1’ 21
Slide 11: Q1 Product Brand Performance
11 HOLLYWOOD UPDATE Q1 Product Brand Performance Pop! Loungefly Other $ in millions, unaudited 33% 82% 41% Increase Increase Increase $150.3 $14.3 $24.5 $113.1 $10.1 $13.5 Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 Both Pop! and Loungefly branded products generated strong wholesale demand in the U.S. and E
Slide 12: Q1 Geographic Performance
12 HOLLYWOOD Q1 GeographicUPDATE Performance United States Europe Other International $ in millions, unaudited 39% 55% 2% Increase Increase Increase $136.5 $39.8 $98.5 $12.6 $12.9 $25.6 Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 The United States region grew 39% due to 3rd party and direct-to-consumer e-co
Slide 13: Q1 Non-GAAP Financial Metrics
13 HOLLYWOOD Q1 Non-GAAP UPDATE Financial Metrics Adjusted EBITDA(1) Adjusted Net Income(2) First Quarter First Quarter $ in millions, unaudited 181% n/m Increase $13.0 $29.8 $10.6 ($2.3) Q1'20 Q1'21 Q1'20 Q1'21 Adjusted Adjusted EBITDA 7.8% 15.7% Net Income (1.7%) 6.8% Margin(1) Margin(2) Topline o
Slide 14: Key Balance Sheet Highlights
14 HOLLYWOOD UPDATE Key Balance Sheet Highlights $ in millions, unaudited 3/31/2021 3/31/2020 YoY % Change Cash & Cash Equivalents $74.7 $55.4 34.8% Accounts Receivable, net $114.7 $105.2 9.0% Inventory $61.9 $53.3 16.2% Total Debt(1) $183.0 $242.5 (24.5%) Total Liquidity(2) $149.7 $101.7 47.2% (1)
Slide 15: Liquidity Overview
15 HOLLYWOOD UPDATE Liquidity Overview Total Liquidity(1) 2020 2021 $ in millions, unaudited $149.7 $127.3 $101.7 $106.9 $87.0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Funko’s liquidity position remains strong and increased 47% from Q1’20 levels to $149.7 million (1) Total liquidity is calculated as cash and c
Slide 16: Debt Overview
16 HOLLYWOOD Debt OverviewUPDATE Total Debt(1) 2020 2021 $ in millions, unaudited $242.5 $239.9 $208.1 $190.8 $183.0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Total debt decreased 25% versus Q1’20 (1) Total Debt is defined as the amount outstanding under the Company’s Line of Credit plus Current Portion of Long
Slide 17: Supplemental Financial Information
Supplemental Financial Information
Slide 18: Condensed Consolidated Statements of Operations
18 Condensed Consolidated Statements of Operations HOLLYWOOD UPDATE(Unaudited) Three Months Ended March 31, 2021 2020 (In thousands, except per share data) Net sales $ 189,177 $ 136,700 Cost of sales (exclusive of depreciation and amortization shown separately below) 110,853 81,417 Selling, general,
Slide 19: Condensed Consolidated Balance Sheets
19 Condensed Consolidated Balance Sheets HOLLYWOOD UPDATE(Unaudited) March 31, December 31, 2021 2020 (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents $ 74,697 $ 52,255 Accounts receivable, net 114,655 131,837 Inventory 61,934 59,773 Prepaid expenses and othe
Slide 20: Condensed Consolidated Statements of Cash Flows
20 Condensed Consolidated Statements of Cash Flows HOLLYWOOD UPDATE(Unaudited) Three Months Ended March 31, 2021 2020 (In thousands) Operating Activities Net income (loss) $ 11,086 $ (5,732) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amorti
Slide 21: Reconciliation of Non-GAAP Financial Metrics
21 Reconciliation of Non-GAAP Financial Metrics HOLLYWOOD UPDATE(Unaudited) Three Months Ended March 31, 2021 2020 (In thousands, except per share data) Net income (loss) attributable to Funko, Inc. $ 6,514 $ (4,126) Reallocation of net income (loss) attributable to non-controlling interests from th
Slide 22: Reconciliation of Non-GAAP Financial Metrics
22 Reconciliation of Non-GAAP Financial Metrics (Unaudited) Three Months Ended March 31, 2021 2020 (amounts in thousands) Net income (loss) $ 11,086 $ (5,732) Interest expense, net 2,237 2,655 Income tax expense (benefit) 2,293 (856) Depreciation and amortization 10,262 10,989 EBITDA $ 25,878 $ 7,05
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