Funko(FNKO)2025-03-06 21:15Financial Performance - Q4 2024 net sales reached $293.7 million, a 0.9% increase from $291.2 million in Q4 2023[5] - Gross profit for Q4 2024 was $124.4 million, with a gross margin of 42.4%, compared to $109.4 million and 37.6% in Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $26.3 million, up from $23.1 million in Q4 2023[5] - For the full year 2024, net sales totaled $1.05 billion, down from $1.10 billion in 2023[5] - Full-year gross profit was $434.5 million, with a gross margin of 41.4%, compared to $333.0 million and 30.4% in 2023[5] - Net sales for Q4 2024 were $293.7 million, a slight increase from $291.2 million in Q4 2023, while total net sales for the year decreased to $1,049.9 million from $1,096.1 million in 2023[17] - The company reported a net loss of $1.5 million for Q4 2024, compared to a net loss of $10.8 million in Q4 2023, and a total net loss of $15.1 million for the year, down from $164.4 million in 2023[17] - Adjusted net income for the twelve months ended December 31, 2024, was $8,687,000, compared to a loss of $74,666,000 in 2023[22] Debt and Cash Management - Total debt decreased by $90 million to $182.8 million at the end of 2024, down from $273.6 million at the end of 2023[8] - Cash and cash equivalents at the end of Q4 2024 were $34.7 million, slightly down from $36.5 million at the end of Q4 2023[19] - The company reduced its line of credit from $120.5 million in 2023 to $60 million in 2024, indicating improved financial management[19] - Total current assets decreased to $287.1 million in 2024 from $336.8 million in 2023, primarily due to a reduction in inventories[19] - Interest expense for the twelve months ended December 31, 2024, was $20,575,000, down from $27,970,000 in 2023, showing a reduction of 26.5%[23] Operational Efficiency - Total operating expenses for Q4 2024 were $288.3 million, a decrease from $294.6 million in Q4 2023, with significant reductions in cost of sales and selling, general, and administrative expenses[17] - The company reported a significant increase in depreciation and amortization expenses, totaling $62.6 million for the year, compared to $57.4 million in 2023[21] - Net cash provided by operating activities for 2024 was $123.5 million, a substantial increase from $30.9 million in 2023[21] - Adjusted EBITDA margin for Q4 2024 was 8.9%, compared to 7.9% in Q4 2023, indicating improved operational efficiency[23] Future Projections - The company expects 2025 full-year net sales to be between $1.050 billion and $1.082 billion[9] - Adjusted EBITDA for 2025 is projected to be between $80 million and $100 million[9] - The company anticipates a measured top-line growth in 2025, particularly in the second half of the year[6] Strategic Initiatives - Funko plans to expand its presence in high-potential categories such as sports, music, and gaming[6] - The company made no acquisitions in 2024, contrasting with $5.4 million spent on acquisitions in 2023[21] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 52.8 million in Q4 2024 from 50.4 million in Q4 2023[17] - Adjusted earnings per diluted share for Q4 2024 was $0.08, compared to a loss of $1.43 per share in Q4 2023[22] - The weighted-average shares of Class A common stock outstanding for Q4 2024 increased to 52,826,000 from 50,384,000 in Q4 2023[22] Currency and Other Gains - The company reported a foreign currency transaction gain of $2,398,000 for the twelve months ended December 31, 2024[22]