Slide 1: Fourth Quarter 2018 Earnings
Fourth Quarter 2018 Earnings February 28, 2019 Exhibit 99.2
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
Slide 3: Everyone is a fan of something
is built on the principle that everyone is a fan of something…
Slide 4: Funko has something for every fan
…and Funko has something for every fan NOTE: Represents a sampling of our current portfolio of properties as of January 2019. Funko is like an “index fund” for pop culture
Slide 5: Fourth Quarter 2018 Snapshot
Fourth Quarter 2018 Snapshot Net Sales 38% YoY Growth Adj. EBITDA(1) 42% YoY Growth Adj. Pro Forma Net Income(1) 127% YoY Growth Net Sales increased 38% to $233.2m in Q4’18 compared to Q4’17 Net Sales growth driven by broad-based growth across product categories and geographies Pop! Brand 52% YoY Gr
Slide 6: Q4 & Fiscal Year Earnings Summary
Q4 & Fiscal Year Earnings Summary 4Q’18 4Q’17 % Change 2018 2017 % Change Net Sales Gross Profit(1) Gross Margin %(1) Operating Income Operating Margin % Net Income (Loss) Adj. Pro Forma Net Income(2) Adj. Pro Forma Net Income Margin(2) Adj. Pro Forma Earnings per Share(2) Adj. EBITDA(2) Adj. EBITDA
Slide 7: Active Properties & Net Sales per Active Property
Q4 & Fiscal Year Active Properties & Net Sales per Active Property Active Properties & Net Sales per Active Property Fourth Quarter Fiscal Year Active Properties Net Sales per Active Property Active Properties up 34% Net Sales per Active Property up 3% Active Properties up 34% Net Sales per Active P
Slide 8: Top Properties Breakout
Top Properties Breakout Q1’18 Q2’18 Q3’18 1 2 3 5 7 4 6 8 9 10 Top 10 Properties % of Sales 38% 38% 34% No property was > 6% of sales for 2018 Top 10 properties were only 38% of sales in Q4’18 Evergreen properties accounted for 46% of sales in Q4’18 Q4’18 38% 12%* 7%* 6%* 7%* *% of net sales
Slide 9: Product Category Performance
Q4 & Fiscal Year Product Category Performance Figures Other Fourth Quarter Fiscal Year Fourth Quarter Fiscal Year $ in millions 38% Growth 33% Growth 34% Growth 37% Growth Q4 and the fiscal year 2018 showed consistent sales growth in product categories and was in line with total sales growth for Q4
Slide 10: Something For Everyone
Something For Everyone The Funko-verse continues to expand with new product categories. Figures Other 82% of Sales 18% of Sales
Slide 11: Geographic Performance
Q4 & Fiscal Year Geographic Performance United States International Fourth Quarter Fiscal Year Fourth Quarter Fiscal Year Excluding Loungefly, U.S. specialty channel up over 41% for the fiscal year due to increased shelf space and sell-through 3rd party e-commerce sites are up 45% for the fiscal yea
Slide 12: Global Toy Fair Presence
Global Toy Fair Presence Funko products are a hit at toy fairs around the world from New York to London to Nuremberg to Hong Kong and beyond. New York London Nuremberg Hong Kong
Slide 13: Fan Engagement
Fan Engagement Connecting fans to their favorite characters, moments and stories from pop culture. Campaigns Original Content Social Media Photo-A-Day Contest Captain Marvel and the #FunkoWomenOfPower campaign create buzz Over 50 million impressions In-house video content and Funko Animation Studio
Slide 14: Latest Pop! Stars
Latest Pop! Stars Everyone has their favorite Funko products, but there are certain products that the media and public just can’t get enough of, even before they’re available for purchase. Definitions: Earned Placements represent organic articles that do not have any paid component tied to it. Earne
Slide 15: Enhancing the Funko brand thru Retail-tainment
Enhancing the Funko brand thru Retail-tainment Delivering a pop culture driven experience that connects fans to the properties they love through a wide variety of high-quality products. Our Everett, WA HQ store Bat Cave at the Everett, WA HQ store in Late 2019 COMING SOON
Slide 16: Adjusted Pro Forma Net Income
Q4 & Fiscal Year Adjusted Pro Forma Net Income(1) Adjusted Pro Forma Net Income(1) Fourth Quarter Fiscal Year Adjusted Pro Forma Net Income Margin(1) 5.8% 9.6% 3.4% 6.0% $ in millions, unaudited Adjusted Pro Forma Net Income improving due to the growth in net sales, reduction in interest expense and
Slide 17: Adjusted EBITDA
Q4 & Fiscal Year Adjusted EBITDA(1) Adjusted EBITDA(1) Fourth Quarter Fiscal Year Adj. EBITDA Margin %(1) 18.7% 19.2% 17.4% 16.9% $ in millions, unaudited Adj. EBITDA Margin(1) increased 50bps in Q4’18 over Q4’17 See Supplemental Financial Information section for a reconciliation of Adjusted EBITDA,
Slide 18: Key Balance Sheet Highlights
Key Balance Sheet Highlights 12/31/2018 12/31/2017 % Change Cash & Cash Equivalents Accounts Receivable, net Inventory Total Debt(1) $13.5 $148.6 $86.6 $247.3 $ in millions, unaudited Net Debt(2) $233.8 $7.7 $115.5 $79.1 $233.9 $226.2 74.5% 28.7% 9.5% 5.7% 3.4% Total Debt is defined as Line of Credi
Slide 19: Fiscal Year 2019 Guidance
Fiscal Year 2019 Guidance Fiscal Year 2019 Guidance Range(1) % Growth YoY Net Sales Adjusted EBITDA(2) Adjusted Pro Forma EPS(2) $810 to $825 million $133 to $143 million $1.05 to $1.15 18% to 20% 15% to 23% 28% to 40% The guidance should be read in conjunction with Funko’s fourth quarter 2018 relea
Slide 20: Supplemental Financial Information
Supplemental Financial Information
Slide 21: Condensed Consolidated Statements of Operations
Q4 and Fiscal Year Condensed Consolidated Statements of Operations $233,224 147,526 85,698 36.7% 45,015 - 10,204 30,479 4,509 4,547 1,488 19,935 2,818 $17,117 11,107 $6,010 $ in thousands, unaudited Net Sales Cost of Sales(1) Gross Profit(1) Gross Margin(1) Selling, General and Administrative Expens
Slide 22: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 12/31/2018 12/31/2017 Cash and Cash Equivalents Accounts Receivable, net Inventory Prepaid Expenses & Other Current Assets Total Current Assets Property & Equipment, net Goodwill Intangible Assets, net Deferred Tax Asset Other Assets Total Assets Line of Credit C
Slide 23: Reconciliation of Non-GAAP Financial Metrics
Reconciliation of Non-GAAP Financial Metrics Represents the reallocation of net income 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 was attributable to non-controlling interests. Represents monitor
Slide 24: Reconciliation of Non-GAAP Financial Metrics Cont.
Reconciliation of Non-GAAP Financial Metrics Cont. Represents monitoring fees paid pursuant to a management services agreement with ACON that was entered into in connection with the ACON acquisition, which terminated upon the consummation of the IPO in November 2017. Represents non-cash charges rela
Slide 25: Guidance Reconciliation of Net Income to EBITDA
Guidance Reconciliation of Net Income to EBITDA, Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings per Diluted Share Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on timing of awards. Represents lega
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