Funko(US:FNKO)2024-05-09 20:15Financial Performance - Q1 2024 net sales were $215.7 million, a decrease of 14.4% from $251.9 million in Q1 2023[5] - Gross profit for Q1 2024 was $86.3 million, resulting in a gross margin of 40.0%, compared to $49.6 million and a gross margin of 19.7% in Q1 2023[5] - Adjusted EBITDA for Q1 2024 was $9.6 million, a significant improvement from negative adjusted EBITDA of $14.0 million in Q1 2023[5] - Core Collectible net sales decreased by 14.6% to $157.1 million in Q1 2024 compared to $184.0 million in Q1 2023[6] - U.S. net sales fell by 17.4% to $146.4 million in Q1 2024, down from $177.2 million in Q1 2023[6] - Net loss for the three months ended March 31, 2024, was $23,666,000, an improvement compared to a net loss of $61,144,000 for the same period in 2023[22] - Adjusted net loss for Q1 2024 was $9,237,000, compared to an adjusted net loss of $25,258,000 in Q1 2023, indicating a reduction of approximately 63.5%[23] Guidance and Projections - The company reiterated its full-year 2024 guidance, projecting net sales between $1.047 billion and $1.103 billion[8] - For Q2 2024, net sales are expected to be between $225 million and $240 million, with a gross margin percentage of 38% to 40%[8] Inventory and Debt Management - Total inventory decreased to $112.3 million at March 31, 2024, down from $119.5 million at December 31, 2023[4] - Total debt was reduced to $246.4 million at March 31, 2024, down from $273.6 million at December 31, 2023[4] - Total current liabilities decreased from $358,832,000 as of December 31, 2023, to $318,395,000 as of March 31, 2024, a reduction of about 11.2%[20] - Inventory write-downs were not recorded in Q1 2024, compared to $30,084,000 in Q1 2023, indicating improved inventory management[24] Cash Flow and Equity - Cash and cash equivalents decreased from $36,453,000 at the beginning of the period to $26,110,000 at the end of the period, a decline of approximately 28.5%[22] - The company reported a net cash provided by operating activities of $14,507,000 for Q1 2024, contrasting with a net cash used of $(30,270,000) in Q1 2023[22] - Total stockholders' equity attributable to Funko, Inc. decreased from $231,941,000 as of December 31, 2023, to $212,495,000 as of March 31, 2024, a decline of approximately 8.4%[20] Management Changes - The newly appointed CEO, Cynthia Williams, will officially start on May 20, 2024, bringing extensive experience from major companies[4] Asset Management - Total assets decreased from $804,645,000 as of December 31, 2023, to $725,472,000 as of March 31, 2024, representing a decline of approximately 9.8%[20] - Adjusted gross margin improved to 40.0% in Q1 2024, up from 31.6% in Q1 2023, reflecting better cost management[24] - Adjusted EBITDA for Q1 2024 was $9,574,000, compared to an adjusted EBITDA of $(14,014,000) in Q1 2023, showing a significant turnaround[23]