Funko Reports 2023 Fourth Quarter, Full Year Financial Results; Provides Full-Year Outlook for 2024
--Q4
Fourth-Quarter Financial Results Summary: 2023 vs 2022
-
Net sales were
$291.2 million versus$333.0 million -
Gross profit was
$109.4 million , equal to gross margin of 37.6%, compared with$94.3 million , equal to gross margin of 28.3% -
SG&A expenses were
$97.4 million , which included$8.0 million of non-recurring charges primarily related to fair market value adjustments for assets held for sale. This compares with$139.2 million , which included$32.5 million of non-recurring charges related to the write down of an enterprise resource planning system, for the fourth quarter of 2022 -
Net loss was
$10.8 million , or$0.21 per share, versus$42.2 million , or$0.89 per diluted share -
Adjusted net income* was
$0.5 million , or$0.01 per diluted share, versus adjusted net loss of$17.9 million , or$0.35 per share -
Adjusted EBITDA* was
$23.5 million versus negative adjusted EBITDA* of$6.3 million
Full-Year Financial Results Summary: 2023 vs 2022
-
Net sales were
$1.1 billion versus$1.3 billion -
Gross profit was
$333.0 million , equal to gross margin of 30.4%, which included$39.0 million of non-recurring charges related to the disposal of excess inventory and finished and unfinished goods held at offshore factories. This compares with$434.0 million , equal to gross margin of 32.8% -
SG&A expenses were
$377.1 million , which included$20.7 million of non-recurring charges primarily related to the termination of a lease agreement, fair market value adjustments for assets held for sale and severance and related charges. This compares with$398.3 million for the 2022 full year, which included$32.5 million of non-recurring charges related to the write-down of an enterprise resource planning system -
Net loss was
$154.1 million , or$3.19 per share, compared with$8.0 million , or$0.18 per share -
Adjusted net loss* was
$45.4 million , or$0.87 per share, versus adjusted net income* of$29.6 million , or$0.57 per diluted share -
Adjusted EBITDA* was
$27.2 million compared with$97.4 million
“In 2023, we implemented a comprehensive plan to significantly reduce costs, improve operational efficiencies and focus on our core product offerings,” said
“For the 2023 fourth quarter, net sales and adjusted EBITDA were at the upper end of our guidance range, fueled in part by growth in our direct-to-consumer (DTC) business, which accounted for 26 percent of our revenue and increased nearly 30 percent compared with the same quarter of the prior year. Gross margin of 38 percent was the highest of any quarter in 2023.
“Turning to our balance sheet, we substantially lowered our inventory levels to
“Looking ahead, we face a softer content schedule following the recent
Leadership Update
The company also announced today that
“Steve joined us a year ago to help with our cost reduction and operational improvement plan,” said Lunsford. “We have made significant progress against that plan and thank Steve for his contributions. We wish Steve success in his future endeavors.
“I have worked with Yves for several years now, as both a board member and as the interim CEO. I have complete faith in Yves to lead our Finance and Accounting functions. We believe we now have in place a strong, lean, aligned senior leadership team to support the arrival of a new CEO and the growth of Funko.”
Fourth Quarter 2023 Net Sales by Category and Geography
The tables below show the breakdown of net sales on a brand category and geographical basis (in thousands):
|
|
Three Months Ended |
|
Period Over Period Change |
|||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Dollar |
|
Percentage |
|||
Net sales by product brand: |
|
|
|
|
|
|
|
|
|||||||
Core Collectibles |
|
$ |
212,776 |
|
$ |
243,340 |
|
$ |
(30,564 |
) |
|
(12.6 |
)% |
||
Loungefly Branded Products |
|
|
54,908 |
|
|
|
73,346 |
|
|
|
(18,438 |
) |
|
(25.1 |
)% |
Other |
|
|
23,552 |
|
|
|
16,354 |
|
|
|
7,198 |
|
|
44.0 |
% |
Total net sales |
|
$ |
291,236 |
|
|
$ |
333,040 |
|
|
$ |
(41,804 |
) |
|
(12.6 |
)% |
|
|
Three Months Ended |
|
Period Over Period Change |
|||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Dollar |
|
Percentage |
|||
Net sales by geography: |
|
|
|
|
|
|
|
|
|||||||
|
|
$ |
197,368 |
|
$ |
240,647 |
|
$ |
(43,279 |
) |
|
(18.0 |
)% |
||
|
|
|
78,138 |
|
|
|
61,869 |
|
|
|
16,269 |
|
|
26.3 |
% |
Other International |
|
|
15,730 |
|
|
|
30,524 |
|
|
|
(14,794 |
) |
|
(48.5 |
)% |
Total net sales |
|
$ |
291,236 |
|
|
$ |
333,040 |
|
|
$ |
(41,804 |
) |
|
(12.6 |
)% |
Balance Sheet Highlights - At
-
Total cash and cash equivalents were
$36.5 million atDecember 31, 2023 versus$19.2 million atDecember 31, 2022 -
Inventories were
$119.5 million atDecember 31, 2023 versus$246.4 million atDecember 31, 2022 -
Total debt was
$273.6 million atDecember 31, 2023 versus$245.8 million atDecember 31, 2022 . Total debt includes the amount outstanding under the company's term loan facility, net of unamortized discounts, revolving line of credit and the company's equipment finance loan
Outlook for 2024
Based on its current outlook, the company provided its 2024 full-year outlook and 2024 first-quarter guidance, as follows:
|
Current Outlook |
2024 Full Year |
|
|
|
Adjusted EBITDA* |
|
|
|
2024 First Quarter |
|
Net sales |
|
Gross margin % |
~37% |
SG&A expense, in dollars |
|
Adjusted net loss* |
|
Adjusted net loss per share* |
|
Adjusted EBITDA* |
|
*Adjusted net loss, adjusted net loss per diluted share and adjusted EBITDA are non-GAAP financial measures. For a reconciliation of historical adjusted net loss, adjusted loss per diluted share, and adjusted EBITDA, to the most directly comparable
Conference Call and Webcast
The company will host a conference call at
Use of Non-GAAP Financial Measures
This release contains references to non-GAAP financial measures, including adjusted net income (loss), including per share amounts, adjusted EBITDA, and adjusted EBITDA margin, which are financial measures that are not prepared in conformity with
Detailed reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables following this release.
About
Headquartered in
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our anticipated financial results and financial position, the underlying trends in our business and the retail industry, including ongoing impacts from the
|
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands, except per share data) |
||||||||||||||
Net sales |
$ |
291,236 |
|
|
$ |
333,040 |
|
|
$ |
1,096,086 |
|
|
$ |
1,322,706 |
|
Cost of sales (exclusive of depreciation and amortization shown separately below) |
|
181,827 |
|
|
|
238,711 |
|
|
|
763,085 |
|
|
|
888,685 |
|
Selling, general, and administrative expenses |
|
97,380 |
|
|
|
139,229 |
|
|
|
377,065 |
|
|
|
398,272 |
|
Depreciation and amortization |
|
15,429 |
|
|
|
13,160 |
|
|
|
59,763 |
|
|
|
47,669 |
|
Total operating expenses |
|
294,636 |
|
|
|
391,100 |
|
|
|
1,199,913 |
|
|
|
1,334,626 |
|
(Loss) income from operations |
|
(3,400 |
) |
|
|
(58,060 |
) |
|
|
(103,827 |
) |
|
|
(11,920 |
) |
Interest expense, net |
|
7,419 |
|
|
|
4,480 |
|
|
|
27,970 |
|
|
|
10,334 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
494 |
|
|
|
— |
|
Gain on tax receivable agreement liability adjustment |
|
(603 |
) |
|
|
— |
|
|
|
(100,223 |
) |
|
|
— |
|
Other (income) expense, net |
|
(646 |
) |
|
|
(971 |
) |
|
|
(127 |
) |
|
|
787 |
|
(Loss) income before income taxes |
|
(9,570 |
) |
|
|
(61,569 |
) |
|
|
(31,941 |
) |
|
|
(23,041 |
) |
Income tax expense (benefit) |
|
1,638 |
|
|
|
(14,869 |
) |
|
|
132,497 |
|
|
|
(17,801 |
) |
Net (loss) income |
|
(11,208 |
) |
|
|
(46,700 |
) |
|
|
(164,438 |
) |
|
|
(5,240 |
) |
Less: net (loss) income attributable to non-controlling interests |
|
(447 |
) |
|
|
(4,481 |
) |
|
|
(10,359 |
) |
|
|
2,795 |
|
Net (loss) income attributable to |
$ |
(10,761 |
) |
|
$ |
(42,219 |
) |
|
$ |
(154,079 |
) |
|
$ |
(8,035 |
) |
|
|
|
|
|
|
|
|
||||||||
(Loss) earnings per share of Class A common stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.21 |
) |
|
$ |
(0.89 |
) |
|
$ |
(3.19 |
) |
|
$ |
(0.18 |
) |
Diluted |
$ |
(0.21 |
) |
|
$ |
(0.89 |
) |
|
$ |
(3.19 |
) |
|
$ |
(0.18 |
) |
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
50,384 |
|
|
|
47,179 |
|
|
|
48,332 |
|
|
|
44,555 |
|
Diluted |
|
50,384 |
|
|
|
47,179 |
|
|
|
48,332 |
|
|
|
44,555 |
|
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
|
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands, except per share data) |
||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
36,453 |
|
|
$ |
19,200 |
|
Accounts receivable, net |
|
130,831 |
|
|
|
167,895 |
|
Inventory, net |
|
119,458 |
|
|
|
246,429 |
|
Prepaid expenses and other current assets |
|
56,134 |
|
|
|
39,648 |
|
Total current assets |
|
342,876 |
|
|
|
473,172 |
|
Property and equipment, net |
|
91,335 |
|
|
|
102,232 |
|
Operating lease right-of-use assets |
|
61,499 |
|
|
|
71,072 |
|
|
|
133,795 |
|
|
|
131,380 |
|
Intangible assets, net |
|
167,388 |
|
|
|
181,284 |
|
Deferred tax asset, net of valuation allowance |
|
— |
|
|
|
123,893 |
|
Other assets |
|
7,752 |
|
|
|
8,112 |
|
Total assets |
$ |
804,645 |
|
|
$ |
1,091,145 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Line of credit |
$ |
120,500 |
|
|
$ |
70,000 |
|
Current portion long-term debt, net of unamortized discount |
|
22,072 |
|
|
|
22,041 |
|
Current portion of operating lease liabilities |
|
17,486 |
|
|
|
18,904 |
|
Accounts payable |
|
52,919 |
|
|
|
67,651 |
|
Income taxes payable |
|
986 |
|
|
|
871 |
|
Accrued royalties |
|
54,375 |
|
|
|
69,098 |
|
Accrued expenses and other current liabilities |
|
90,494 |
|
|
|
112,832 |
|
Total current liabilities |
|
358,832 |
|
|
|
361,397 |
|
Long-term debt, net of unamortized discount |
|
130,986 |
|
|
|
153,778 |
|
Operating lease liabilities, net of current portion |
|
71,309 |
|
|
|
82,356 |
|
Deferred tax liability |
|
402 |
|
|
|
382 |
|
Liabilities under tax receivable agreement, net of current portion |
|
— |
|
|
|
99,620 |
|
Other long-term liabilities |
|
5,076 |
|
|
|
3,923 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Class A common stock, par value |
|
5 |
|
|
|
5 |
|
Class B common stock, par value |
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
326,180 |
|
|
|
310,807 |
|
Accumulated other comprehensive loss |
|
(180 |
) |
|
|
(2,603 |
) |
(Accumulated deficit) retained earnings |
|
(94,064 |
) |
|
|
60,015 |
|
Total stockholders' equity attributable to |
|
231,941 |
|
|
|
368,224 |
|
Non-controlling interests |
|
6,099 |
|
|
|
21,465 |
|
Total stockholders' equity |
|
238,040 |
|
|
|
389,689 |
|
Total liabilities and stockholders' equity |
$ |
804,645 |
|
|
$ |
1,091,145 |
|
|
|||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||
|
Year Ended |
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands) |
||||||||||
Operating Activities |
|
|
|
|
|
||||||
Net (loss) income |
$ |
(164,438 |
) |
|
$ |
(5,240 |
) |
|
$ |
67,854 |
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
|
|
||||||
Depreciation, amortization and other |
|
57,389 |
|
|
|
47,919 |
|
|
|
40,056 |
|
Equity-based compensation |
|
10,534 |
|
|
|
16,591 |
|
|
|
12,994 |
|
Amortization of debt issuance costs and debt discounts |
|
1,274 |
|
|
|
902 |
|
|
|
1,118 |
|
Loss on debt extinguishment |
|
494 |
|
|
|
— |
|
|
|
675 |
|
Gain on tax receivable agreement liability adjustment |
|
(100,223 |
) |
|
|
— |
|
|
|
— |
|
Deferred tax expense (benefit) |
|
123,124 |
|
|
|
(17,414 |
) |
|
|
(361 |
) |
Other |
|
4,090 |
|
|
|
5,244 |
|
|
|
1,403 |
|
Changes in operating assets and liabilities, net of amounts acquired: |
|
|
|
|
|
||||||
Accounts receivable, net |
|
40,513 |
|
|
|
19,075 |
|
|
|
(56,648 |
) |
Inventory |
|
122,479 |
|
|
|
(82,214 |
) |
|
|
(107,166 |
) |
Prepaid expenses and other assets |
|
3,242 |
|
|
|
(7,263 |
) |
|
|
3,700 |
|
Accounts payable |
|
(17,968 |
) |
|
|
11,043 |
|
|
|
26,933 |
|
Income taxes payable |
|
75 |
|
|
|
(15,018 |
) |
|
|
15,585 |
|
Accrued royalties |
|
(14,723 |
) |
|
|
9,082 |
|
|
|
17,633 |
|
Accrued expenses and other liabilities |
|
(34,927 |
) |
|
|
(22,841 |
) |
|
|
63,586 |
|
Net cash provided by (used in) operating activities |
|
30,935 |
|
|
|
(40,134 |
) |
|
|
87,362 |
|
|
|
|
|
|
|
||||||
Investing Activities |
|
|
|
|
|
||||||
Purchase of property and equipment |
$ |
(35,131 |
) |
|
$ |
(59,148 |
) |
|
$ |
(27,759 |
) |
Acquisitions of business and intangible assets, net of cash acquired |
|
(5,364 |
) |
|
|
(19,479 |
) |
|
|
199 |
|
Other |
|
699 |
|
|
|
562 |
|
|
|
179 |
|
Net cash used in investing activities |
|
(39,796 |
) |
|
|
(78,065 |
) |
|
|
(27,381 |
) |
|
|
|
|
|
|
||||||
Financing Activities |
|
|
|
|
|
||||||
Borrowings on line of credit |
$ |
71,000 |
|
|
$ |
120,000 |
|
|
$ |
— |
|
Payments on line of credit |
|
(20,500 |
) |
|
|
(50,000 |
) |
|
|
— |
|
Debt issuance costs |
|
(1,957 |
) |
|
|
(405 |
) |
|
|
(1,055 |
) |
Proceeds from long-term debt, net |
|
— |
|
|
|
20,000 |
|
|
|
180,000 |
|
Payment of long-term debt |
|
(22,581 |
) |
|
|
(18,000 |
) |
|
|
(198,375 |
) |
Contingent consideration |
|
— |
|
|
|
— |
|
|
|
(2,000 |
) |
Distributions to continuing equity owners |
|
(1,118 |
) |
|
|
(10,710 |
) |
|
|
(9,277 |
) |
Payments under tax receivable agreement |
|
(4 |
) |
|
|
(7,718 |
) |
|
|
(1,715 |
) |
Proceeds from exercise of equity-based options |
|
756 |
|
|
|
1,472 |
|
|
|
3,794 |
|
Net cash provided by (used in) financing activities |
|
25,596 |
|
|
|
54,639 |
|
|
|
(28,628 |
) |
|
|
|
|
|
|
||||||
Effect of exchange rates on cash and cash equivalents |
|
518 |
|
|
|
(797 |
) |
|
|
(51 |
) |
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents |
|
17,253 |
|
|
|
(64,357 |
) |
|
|
31,302 |
|
Cash and cash equivalents at beginning of period |
|
19,200 |
|
|
|
83,557 |
|
|
|
52,255 |
|
Cash and cash equivalents at end of period |
$ |
36,453 |
|
|
$ |
19,200 |
|
|
$ |
83,557 |
|
|
|
|
|
|
|
||||||
Supplemental Cash Flow Information |
|
|
|
|
|
||||||
Cash paid for interest |
$ |
24,635 |
|
|
$ |
8,856 |
|
|
$ |
5,679 |
|
Income tax payments |
|
1,059 |
|
|
|
22,363 |
|
|
|
1,462 |
|
Establishment of liabilities under tax receivable agreement |
|
— |
|
|
|
30,034 |
|
|
|
20,691 |
|
Issuance of equity instruments for acquisitions |
|
— |
|
|
|
1,487 |
|
|
|
— |
|
Tenant allowance |
|
— |
|
|
|
17,236 |
|
|
|
— |
|
The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands, except per share data) |
||||||||||||||
Net (loss) income attributable to |
$ |
(10,761 |
) |
|
$ |
(42,219 |
) |
|
$ |
(154,079 |
) |
|
$ |
(8,035 |
) |
Reallocation of net (loss) income attributable to non-controlling interests from the assumed exchange of common units of |
|
(447 |
) |
|
|
(4,481 |
) |
|
|
(10,359 |
) |
|
|
2,795 |
|
Equity-based compensation (2) |
|
3,013 |
|
|
|
4,592 |
|
|
|
10,534 |
|
|
|
16,591 |
|
Acquisition transaction costs and other expenses (3) |
|
7,320 |
|
|
|
— |
|
|
|
14,241 |
|
|
|
2,850 |
|
Certain severance, relocation and related costs (4) |
|
702 |
|
|
|
1,572 |
|
|
|
6,486 |
|
|
|
9,775 |
|
Loss on extinguishment of debt (5) |
|
— |
|
|
|
— |
|
|
|
494 |
|
|
|
— |
|
Foreign currency transaction (gain) loss (6) |
|
(641 |
) |
|
|
(4,990 |
) |
|
|
854 |
|
|
|
(3,232 |
) |
Tax receivable agreement liability adjustments (7) |
|
(603 |
) |
|
|
3,987 |
|
|
|
(100,223 |
) |
|
|
3,987 |
|
One-time cloud based computing arrangement abandonment (8) |
|
— |
|
|
|
32,492 |
|
|
|
— |
|
|
|
32,492 |
|
One-time disposal costs for finished inventory held at offshore factories (9) |
|
135 |
|
|
|
— |
|
|
|
6,283 |
|
|
|
— |
|
One-time disposal costs for unfinished inventory held at offshore factories (10) |
|
— |
|
|
|
— |
|
|
|
2,404 |
|
|
|
— |
|
Inventory write-down (11) |
|
254 |
|
|
|
— |
|
|
|
30,338 |
|
|
|
— |
|
Income tax expense (9) |
|
1,486 |
|
|
|
(8,890 |
) |
|
|
147,630 |
|
|
|
(27,657 |
) |
Adjusted net income (loss) |
$ |
458 |
|
|
$ |
(17,937 |
) |
|
$ |
(45,397 |
) |
|
$ |
29,566 |
|
Adjusted net income (loss) margin (13) |
|
0.2 |
% |
|
|
(5.4 |
)% |
|
|
(4.1 |
)% |
|
|
2.2 |
% |
Weighted-average shares of Class A common stock outstanding-basic |
|
50,384 |
|
|
|
47,179 |
|
|
|
48,332 |
|
|
|
44,555 |
|
Equity-based compensation awards and common units of |
|
2,808 |
|
|
|
4,335 |
|
|
|
4,021 |
|
|
|
6,967 |
|
Adjusted weighted-average shares of Class A stock outstanding - diluted |
|
53,192 |
|
|
|
51,514 |
|
|
|
52,353 |
|
|
|
51,522 |
|
Adjusted earnings (loss) per diluted share |
$ |
0.01 |
|
|
$ |
(0.35 |
) |
|
$ |
(0.87 |
) |
|
$ |
0.57 |
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands) |
||||||||||||||
Net (loss) income |
$ |
(11,208 |
) |
|
$ |
(46,700 |
) |
|
$ |
(164,438 |
) |
|
$ |
(5,240 |
) |
Interest expense, net |
|
7,419 |
|
|
|
4,480 |
|
|
|
27,970 |
|
|
|
10,334 |
|
Income tax expense |
|
1,638 |
|
|
|
(14,869 |
) |
|
|
132,497 |
|
|
|
(17,801 |
) |
Depreciation and amortization |
|
15,429 |
|
|
|
13,160 |
|
|
|
59,763 |
|
|
|
47,669 |
|
EBITDA |
$ |
13,278 |
|
|
$ |
(43,929 |
) |
|
$ |
55,792 |
|
|
$ |
34,962 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Equity-based compensation (2) |
|
3,013 |
|
|
|
4,592 |
|
|
|
10,534 |
|
|
|
16,591 |
|
Acquisition transaction costs and other expenses (3) |
|
7,320 |
|
|
|
— |
|
|
|
14,241 |
|
|
|
2,850 |
|
Certain severance, relocation and related costs (4) |
|
702 |
|
|
|
1,572 |
|
|
|
6,486 |
|
|
|
9,775 |
|
Loss on extinguishment of debt (5) |
|
— |
|
|
|
— |
|
|
|
494 |
|
|
|
— |
|
Foreign currency transaction (gain) loss (6) |
|
(641 |
) |
|
|
(4,990 |
) |
|
|
854 |
|
|
|
(3,232 |
) |
Tax receivable agreement liability adjustments (7) |
|
(603 |
) |
|
|
3,987 |
|
|
|
(100,223 |
) |
|
|
3,987 |
|
One-time cloud based computing arrangement abandonment (8) |
|
— |
|
|
|
32,492 |
|
|
|
— |
|
|
|
32,492 |
|
One-time disposal costs for finished inventory held at offshore factories (9) |
|
135 |
|
|
|
— |
|
|
|
6,283 |
|
|
|
— |
|
One-time disposal costs for unfinished inventory held at offshore factories (10) |
|
— |
|
|
|
— |
|
|
|
2,404 |
|
|
|
— |
|
Inventory write-down (11) |
|
254 |
|
|
|
— |
|
|
|
30,338 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
23,458 |
|
|
$ |
(6,276 |
) |
|
$ |
27,203 |
|
|
$ |
97,425 |
|
Adjusted EBITDA margin (14) |
|
8.1 |
% |
|
|
(1.9 |
)% |
|
|
2.5 |
% |
|
|
7.4 |
% |
(1) |
Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of common units of |
|
(2) |
Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on timing of awards. |
|
(3) |
For the three months ended |
|
(4)
|
Represents certain severance, relocation and related costs. For the three months ended |
|
(5) |
Represents write-off of unamortized debt financing fees for the year ended |
|
(6) |
Represents both unrealized and realized foreign currency losses (gains) on transactions other than in |
|
(7) |
Represents recognized adjustments to the tax receivable agreement liability. For the year ended |
|
(8) |
Represents abandoned cloud computing arrangement charge related to the enterprise resource planning project for the three months and year ended |
|
(9) |
Represents one-time disposal costs related to unfinished goods held at offshore factories for the year ended |
|
(10) |
Represents one-time disposal costs related to finished goods held at offshore factories primarily due to customer order cancellations for the year ended |
|
(11) |
Represents an inventory write-down, outside of normal business operations, to improve |
|
(12) |
Represents the income tax expense effect of the above adjustments. This adjustment uses an effective tax rate of 25% for the years ended |
|
(13) |
Adjusted net income (loss) margin is calculated as Adjusted net income (loss) as a percentage of net sales. |
|
(14) |
Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales. |
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