Funko(US:FNKO)2024-11-07 21:22Financial Performance - Q3 2024 net sales were $292.8 million, down from $312.9 million in Q3 2023, representing a decrease of 6.4%[1] - Gross profit for Q3 2024 was $119.8 million, with a gross margin of 40.9%, compared to $104.0 million and a gross margin of 33.2% in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was $31.0 million, an increase from $25.4 million in Q3 2023[1] - Core Collectible net sales in Q3 2024 were $227.8 million, down 2.3% from $233.3 million in Q3 2023[4] - Loungefly net sales decreased by 17.6% to $47.3 million in Q3 2024, compared to $57.4 million in Q3 2023[4] - For Q4 2024, net sales are expected to be between $280 million and $294 million, with a gross margin percentage of 38% to 40%[6] - Net income attributable to Funko, Inc. for the three months ended September 30, 2024, was $4,330, compared to a net loss of $15,009 for the same period in 2023[13] - Adjusted net income for the three months ended September 30, 2024, was $7,952 thousand, with an adjusted net income margin of 2.7%, up from 0.6% in the prior year[16] - EBITDA for the three months ended September 30, 2024, was $26,149 thousand, significantly higher than $9,918 thousand in the same period last year[17] - Adjusted earnings per diluted share for the three months ended September 30, 2024, was $0.14, compared to $0.03 in the same period last year[16] Outlook and Guidance - The company updated its full-year 2024 net sales outlook to $1.037 billion to $1.050 billion, reflecting a more cautious consumer environment[2] - Adjusted EBITDA outlook for 2024 was raised to $85 million to $90 million, above the previous high end of the range[2] Debt and Assets - Total debt decreased to $223.4 million at September 30, 2024, down from $273.6 million at December 31, 2023[5] - Total current assets increased to $355,233 as of September 30, 2024, from $342,876 as of December 31, 2023, reflecting a growth of 3.9%[14] - Total liabilities decreased to $543,142 as of September 30, 2024, from $566,127 as of December 31, 2023, indicating a reduction of 4.1%[14] - Cash and cash equivalents at the end of the period were $28,546, down from $36,453 at the beginning of the period, representing a decline of 21.7%[15] - Total stockholders' equity attributable to Funko, Inc. increased to $236,508 as of September 30, 2024, from $231,941 as of December 31, 2023, reflecting a growth of 2.4%[14] Operating Activities - The company reported a net cash provided by operating activities of $63,742 for the nine months ended September 30, 2024, compared to a net cash used of $2,867 for the same period in 2023[15] Expenses and Costs - The company incurred depreciation and amortization expenses of $46,409 for the nine months ended September 30, 2024, compared to $42,592 for the same period in 2023, an increase of 8.5%[15] - Interest expense for the three months ended September 30, 2024, was $4,971 thousand, down from $7,601 thousand in the prior year[17] - The company incurred acquisition transaction costs of $287 thousand for the three months ended September 30, 2024, compared to $5,467 thousand in the same period last year[17] - Foreign currency transaction loss for the three months ended September 30, 2024, was $1,005 thousand, compared to $1,074 thousand in the prior year[17] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 52,523 for the three months ended September 30, 2024, from 48,237 for the same period in 2023[13] - The weighted-average shares of Class A common stock outstanding for the three months ended September 30, 2024, were 52,523 thousand, an increase from 48,237 thousand in the prior year[16]