Funko Reports Third Quarter 2024 Financial Results; Updates 2024 Full-Year Outlook
Q3 Net Sales, Gross Margin and Adjusted EBITDA at High End or Above Expectations- –
Evertt, WA — Funko, Inc reported its consolidated financial results for the third quarter ended September 30, 2024.
Third Quarter Financial Results Summary: 2024 vs 2023
- Net sales were $292.8 million compared with $312.9 million
- Gross profit was $119.8 million, equal to gross margin of 40.9%. This compares with $104.0 million, equal to gross margin of 33.2%, which included $6.4 million of non-recurring charges
- SG&A expenses were $92.7 million, which included $0.4 million of non-recurring charges. This compares with $94.0 million, which included $9.9 million of non-recurring charges. Details related to the non-recurring charges can be found in footnotes 4, 5 and 10 of the attached reconciliations
- Net income was $4.6 million, or $0.08 per diluted share, compared with net loss of $16.2 million, or $0.31 per share
- Adjusted net income* was $8.0 million, or $0.14 per diluted share*, compared to $1.7 million, or $0.03 per share
- Adjusted EBITDA* was $31.0 million versus $25.4 million
“We reported solid financial results for the 2024 third quarter,” said Cynthia Williams, Chief Executive Officer of Funko. “As expected, net sales were down compared with the prior-year quarter, though in the top end of our guidance range. On the other hand, we delivered better than expected profitability on improved gross margins, as we did in the first two quarters of this year.
“We’ve updated our full-year 2024 outlook for net sales to reflect a more cautious consumer environment, which we began to see in the third quarter. We now expect net sales to be at the low end to slightly below our previous range. Adjusted EBITDA is a different matter, we have raised our full-year outlook to above the high end of the range.
“We are deep in the process of developing our strategic plan for 2025 and beyond, and pleased that we have already begun executing several elements of that plan. Recently, we enabled direct-to-consumer shipping capability to Canada, and we expanded our collaboration with the National Football League (NFL), and its fanbase of more than 200 million, to include the option to customize Pop! Yourself with any NFL team logo. Additionally, and just in time for the holidays, we are announcing that Harry Potter accessories will be available to customize Pop! Yourself beginning tomorrow.”
|
|
Three Months Ended |
|
Period Over Period Change |
|||||||||||
|
|
2024 |
|
2023 |
|
Dollar |
|
Percentage |
|||||||
|
Net sales by brand category: |
|
|
|
|
|
|
|
|||||||
|
Core Collectible |
$ |
227,845 |
|
$ |
233,269 |
|
$ |
(5,424 |
) |
|
(2.3 |
)% |
||
|
Loungefly |
|
47,310 |
|
|
|
57,439 |
|
|
|
(10,129 |
) |
|
(17.6 |
)% |
|
Other |
|
17,610 |
|
|
|
22,236 |
|
|
|
(4,626 |
) |
|
(20.8 |
)% |
|
Total net sales |
$ |
292,765 |
|
|
$ |
312,944 |
|
|
$ |
(20,179 |
) |
|
(6.4 |
)% |
|
|
Three Months Ended |
|
Period Over Period Change |
|||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Dollar |
|
Percentage |
|||
|
Net sales by geography (shipped to): |
|
|
|
|
|
|
|
|||||||
|
United States |
$ |
194,416 |
|
|
$ |
209,966 |
|
|
$ |
(15,550 |
) |
|
(7.4 |
)% |
|
Europe |
|
74,473 |
|
|
|
81,938 |
|
|
|
(7,465 |
) |
|
(9.1 |
)% |
|
Other International |
|
23,876 |
|
|
|
21,040 |
|
|
|
2,836 |
|
|
13.5 |
% |
|
Total net sales |
$ |
292,765 |
|
|
$ |
312,944 |
|
|
$ |
(20,179 |
) |
|
(6.4 |
)% |
Balance Sheet Highlights – At September 30, 2024 vs December 31, 2023
- Total cash and cash equivalents were $28.5 million at September 30, 2024 compared with $36.5 million at December 31, 2023
- Inventory was $118.6 million at September 30, 2024 down from $119.5 million at December 31, 2023
- Total debt was $223.4 million at September 30, 2024 versus $273.6 million at December 31, 2023. Total debt includes the amount outstanding under the company’s term loan facility, net of unamortized discounts, revolving line of credit and equipment finance loan
Outlook for 2024
Regarding its 2024 full-year outlook, the company lowered the range for net sales and raised the range for adjusted EBITDA, and provided guidance for its 2024 fourth quarter, as follows:
|
|
Current Outlook |
|
|
2024 Full Year |
|
|
|
Net Sales |
$1.037 billion to $1.050 billion |
|
|
Adjusted EBITDA* |
$85 million to $90 million |
|
|
|
|
|
|
2024 Fourth Quarter |
|
|
|
Net sales |
$280 million to $294 million |
|
|
Gross margin % |
38% to 40% |
|
|
SG&A expense, in dollars |
$93 million to $99 million |
|
|
Adjusted net income (loss)* |
($3) million to $1 million |
|
|
Adjusted net income (loss) per diluted share* |
($0.05) to $0.02 |
|
|
Adjusted EBITDA* |
$17 million to $22 million |
*Adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA are non-GAAP financial measures. For a reconciliation of historical adjusted net income (loss), adjusted net income (loss) per share, and adjusted EBITDA, to the most directly comparable U.S. GAAP financial measures, please refer to the “Use of Non-GAAP Financial Measures” section of this press release. A reconciliation of adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA outlook to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to certain items. However, for the fourth quarter of 2024 the company expects equity-based compensation of approximately $4 million, depreciation and amortization of approximately $15 million and interest expense of approximately $5 million. For the full year 2024, the company expects equity-based compensation of approximately $14 million, depreciation and amortization of approximately $62 million and interest expense of approximately $21 million, each of which is a reconciling item to net loss. See “Use of Non-GAAP Financial Measures” and the attached reconciliations for more information.
|
Funko, Inc. |
|||||||||||||||
|
Condensed Consolidated Statements of Operations |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands, except per share data) |
||||||||||||||
|
Net sales |
$ |
292,765 |
|
$ |
312,944 |
|
|
$ |
756,121 |
|
|
$ |
804,850 |
|
|
|
Cost of sales (exclusive of depreciation and amortization) |
|
172,956 |
|
|
|
208,936 |
|
|
|
445,992 |
|
|
|
581,258 |
|
|
Selling, general, and administrative expenses |
|
92,662 |
|
|
|
93,992 |
|
|
|
256,154 |
|
|
|
279,685 |
|
|
Depreciation and amortization |
|
15,411 |
|
|
|
15,465 |
|
|
|
46,409 |
|
|
|
44,334 |
|
|
Total operating expenses |
|
281,029 |
|
|
|
318,393 |
|
|
|
748,555 |
|
|
|
905,277 |
|
|
Income (loss) from operations |
|
11,736 |
|
|
|
(5,449 |
) |
|
|
7,566 |
|
|
|
(100,427 |
) |
|
Interest expense, net |
|
4,971 |
|
|
|
7,601 |
|
|
|
16,363 |
|
|
|
20,551 |
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494 |
|
|
Gain on tax receivable agreement liability adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,620 |
) |
|
Other expense, net |
|
998 |
|
|
|
98 |
|
|
|
1,994 |
|
|
|
519 |
|
|
Income (loss) before income taxes |
|
5,767 |
|
|
|
(13,148 |
) |
|
|
(10,791 |
) |
|
|
(22,371 |
) |
|
Income tax expense |
|
1,170 |
|
|
|
3,076 |
|
|
|
2,859 |
|
|
|
130,859 |
|
|
Net income (loss) |
|
4,597 |
|
|
|
(16,224 |
) |
|
|
(13,650 |
) |
|
|
(153,230 |
) |
|
Less: net income (loss) attributable to non-controlling interests |
|
267 |
|
|
|
(1,215 |
) |
|
|
(432 |
) |
|
|
(9,912 |
) |
|
Net income (loss) attributable to Funko, Inc. |
$ |
4,330 |
|
|
$ |
(15,009 |
) |
|
$ |
(13,218 |
) |
|
$ |
(143,318 |
) |
|
Earnings (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.08 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.26 |
) |
|
$ |
(3.01 |
) |
|
Diluted |
$ |
0.08 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.26 |
) |
|
$ |
(3.01 |
) |
|
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
52,523 |
|
|
|
48,237 |
|
|
|
51,781 |
|
|
|
47,641 |
|
|
Diluted |
|
53,428 |
|
|
|
48,237 |
|
|
|
51,781 |
|
|
|
47,641 |
|
|
Funko, Inc. |
|||||||
|
Condensed Consolidated Balance Sheets |
|||||||
|
(Unaudited) |
|||||||
|
|
September 30, |
|
December 31, |
||||
|
|
(In thousands, except per share data) |
||||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
28,546 |
|
|
$ |
36,453 |
|
|
Accounts receivable, net |
|
172,653 |
|
|
|
130,831 |
|
|
Inventories |
|
118,563 |
|
|
|
119,458 |
|
|
Prepaid expenses and other current assets |
|
35,471 |
|
|
|
56,134 |
|
|
Total current assets |
|
355,233 |
|
|
|
342,876 |
|
|
Property and equipment, net |
|
78,805 |
|
|
|
91,335 |
|
|
Operating lease right-of-use assets, net |
|
55,158 |
|
|
|
61,499 |
|
|
Goodwill |
|
133,887 |
|
|
|
133,795 |
|
|
Intangible assets, net |
|
155,587 |
|
|
|
167,388 |
|
|
Other assets |
|
4,904 |
|
|
|
7,752 |
|
|
Total assets |
$ |
783,574 |
|
|
$ |
804,645 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Line of credit |
$ |
95,000 |
|
|
$ |
120,500 |
|
|
Current portion of long-term debt |
|
22,413 |
|
|
|
22,072 |
|
|
Current portion of operating lease liabilities |
|
17,365 |
|
|
|
17,486 |
|
|
Accounts payable |
|
78,295 |
|
|
|
52,919 |
|
|
Accrued royalties |
|
61,213 |
|
|
|
54,375 |
|
|
Accrued expenses and other current liabilities |
|
93,910 |
|
|
|
91,480 |
|
|
Total current liabilities |
|
368,196 |
|
|
|
358,832 |
|
|
Long-term debt |
|
105,967 |
|
|
|
130,986 |
|
|
Operating lease liabilities |
|
63,345 |
|
|
|
71,309 |
|
|
Other long-term liabilities |
|
5,634 |
|
|
|
5,478 |
|
|
|
|
|
|
||||
|
Commitments and Contingencies |
|
|
|
||||
|
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Class A common stock, par value $0.0001 per share, 200,000 shares authorized; 52,692 and 50,549 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively |
|
5 |
|
|
|
5 |
|
|
Class B common stock, par value $0.0001 per share, 50,000 shares authorized; 1,433 and 2,277 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively |
|
— |
|
|
|
— |
|
|
Additional paid-in-capital |
|
339,834 |
|
|
|
326,180 |
|
|
Accumulated other comprehensive income (loss) |
|
3,951 |
|
|
|
(180 |
) |
|
Accumulated deficit |
|
(107,282 |
) |
|
|
(94,064 |
) |
|
Total stockholders’ equity attributable to Funko, Inc. |
|
236,508 |
|
|
|
231,941 |
|
|
Non-controlling interests |
|
3,924 |
|
|
|
6,099 |
|
|
Total stockholders’ equity |
|
240,432 |
|
|
|
238,040 |
|
|
Total liabilities and stockholders’ equity |
$ |
783,574 |
|
|
$ |
804,645 |
|
|
Funko, Inc. |
|||||||
|
Condensed Consolidated Statements of Cash Flows |
|||||||
|
(Unaudited) |
|||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands) |
||||||
|
Operating Activities |
|
|
|
||||
|
Net loss |
$ |
(13,650 |
) |
|
$ |
(153,230 |
) |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
46,409 |
|
|
|
42,592 |
|
|
Equity-based compensation |
|
10,530 |
|
|
|
7,521 |
|
|
Loss on debt extinguishment |
|
— |
|
|
|
494 |
|
|
Gain on tax receivable agreement liability adjustment |
|
— |
|
|
|
(99,620 |
) |
|
Deferred tax expense |
|
— |
|
|
|
123,206 |
|
|
Other, net |
|
(271 |
) |
|
|
1,143 |
|
|
Changes in operating assets and liabilities, net of amounts acquired: |
|
|
|
||||
|
Accounts receivable, net |
|
(38,547 |
) |
|
|
1,314 |
|
|
Inventories |
|
3,306 |
|
|
|
84,797 |
|
|
Prepaid expenses and other assets |
|
25,253 |
|
|
|
8,244 |
|
|
Accounts payable |
|
23,851 |
|
|
|
2,536 |
|
|
Accrued royalties |
|
6,838 |
|
|
|
(7,240 |
) |
|
Accrued expenses and other liabilities |
|
23 |
|
|
|
(14,624 |
) |
|
Net cash provided by (used in) operating activities |
|
63,742 |
|
|
|
(2,867 |
) |
|
|
|
|
|
||||
|
Investing Activities |
|
|
|
||||
|
Purchases of property and equipment |
|
(20,796 |
) |
|
|
(30,861 |
) |
|
Acquisitions of businesses and related intangible assets, net of cash acquired |
|
— |
|
|
|
(5,274 |
) |
|
Sale of Funko Games inventory and certain intellectual property |
|
6,754 |
|
|
|
— |
|
|
Other |
|
655 |
|
|
|
551 |
|
|
Net cash used in investing activities |
|
(13,387 |
) |
|
|
(35,584 |
) |
|
|
|
|
|
||||
|
Financing Activities |
|
|
|
||||
|
Borrowings on line of credit |
|
25,000 |
|
|
|
71,000 |
|
|
Payments on line of credit |
|
(50,500 |
) |
|
|
— |
|
|
Payments of long-term debt |
|
(25,365 |
) |
|
|
(16,911 |
) |
|
Payments under tax receivable agreement |
|
(8,960 |
) |
|
|
— |
|
|
Other, net |
|
1,250 |
|
|
|
(2,780 |
) |
|
Net cash (used in) provided by financing activities |
|
(58,575 |
) |
|
|
51,309 |
|
|
|
|
|
|
||||
|
Effect of exchange rates on cash and cash equivalents |
|
313 |
|
|
|
(173 |
) |
|
|
|
|
|
||||
|
Net change in cash and cash equivalents |
|
(7,907 |
) |
|
|
12,685 |
|
|
Cash and cash equivalents at beginning of period |
|
36,453 |
|
|
|
19,200 |
|
|
Cash and cash equivalents at end of period |
$ |
28,546 |
|
|
$ |
31,885 |
|
The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable U.S. GAAP financial performance measure, which is net income (loss), for the periods presented:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands, except per share data) |
||||||||||||||
|
Net income (loss) attributable to Funko, Inc. |
$ |
4,330 |
|
|
$ |
(15,009 |
) |
|
$ |
(13,218 |
) |
|
$ |
(143,318 |
) |
|
Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock (1) |
|
267 |
|
|
|
(1,215 |
) |
|
|
(432 |
) |
|
|
(9,912 |
) |
|
Equity-based compensation (2) |
|
3,430 |
|
|
|
(916 |
) |
|
|
10,530 |
|
|
|
7,521 |
|
|
Loss on extinguishment of debt (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494 |
|
|
Acquisition transaction costs and other expenses (4) |
|
287 |
|
|
|
5,467 |
|
|
|
1,866 |
|
|
|
6,921 |
|
|
Certain severance, relocation and related costs (5) |
|
114 |
|
|
|
3,703 |
|
|
|
2,081 |
|
|
|
5,784 |
|
|
Foreign currency transaction loss (6) |
|
1,005 |
|
|
|
1,074 |
|
|
|
2,018 |
|
|
|
1,495 |
|
|
Inventory write-down (7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,084 |
|
|
Tax receivable agreement liability adjustments (8) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,620 |
) |
|
One-time disposal costs for unfinished goods held at offshore factories (9) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,404 |
|
|
One-time disposal costs for finished goods held at offshore factories (10) |
|
— |
|
|
|
6,148 |
|
|
|
— |
|
|
|
6,148 |
|
|
Income tax expense (11) |
|
(1,481 |
) |
|
|
2,494 |
|
|
|
1,433 |
|
|
|
146,144 |
|
|
Adjusted net income (loss) |
$ |
7,952 |
|
|
$ |
1,746 |
|
|
$ |
4,278 |
|
|
$ |
(45,855 |
) |
|
Adjusted net income (loss) margin (12) |
|
2.7 |
% |
|
|
0.6 |
% |
|
|
0.6 |
% |
|
|
(5.7 |
)% |
|
Weighted-average shares of Class A common stock outstanding-basic |
|
52,523 |
|
|
|
48,237 |
|
|
|
51,781 |
|
|
|
47,641 |
|
|
Equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock |
|
2,755 |
|
|
|
4,443 |
|
|
|
2,182 |
|
|
|
4,430 |
|
|
Adjusted weighted-average shares of Class A stock outstanding – diluted |
|
55,278 |
|
|
|
52,680 |
|
|
|
53,963 |
|
|
|
52,071 |
|
|
Adjusted earnings (loss) per diluted share |
$ |
0.14 |
|
|
$ |
0.03 |
|
|
$ |
0.08 |
|
|
$ |
(0.88 |
) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(amounts in thousands) |
||||||||||||||
|
Net income (loss) |
$ |
4,597 |
|
$ |
(16,224 |
) |
|
$ |
(13,650 |
) |
|
$ |
(153,230 |
) |
|
|
Interest expense, net |
|
4,971 |
|
|
|
7,601 |
|
|
|
16,363 |
|
|
|
20,551 |
|
|
Income tax expense |
|
1,170 |
|
|
|
3,076 |
|
|
|
2,859 |
|
|
|
130,859 |
|
|
Depreciation and amortization |
|
15,411 |
|
|
|
15,465 |
|
|
|
46,409 |
|
|
|
44,334 |
|
|
EBITDA |
$ |
26,149 |
|
|
$ |
9,918 |
|
|
$ |
51,981 |
|
|
$ |
42,514 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
|
Equity-based compensation (2) |
|
3,430 |
|
|
|
(916 |
) |
|
|
10,530 |
|
|
|
7,521 |
|
|
Loss on extinguishment of debt (3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
494 |
|
|
Acquisition transaction costs and other expenses (4) |
|
287 |
|
|
|
5,467 |
|
|
|
1,866 |
|
|
|
6,921 |
|
|
Certain severance, relocation and related costs (5) |
|
114 |
|
|
|
3,703 |
|
|
|
2,081 |
|
|
|
5,784 |
|
|
Foreign currency transaction loss (6) |
|
1,005 |
|
|
|
1,074 |
|
|
|
2,018 |
|
|
|
1,495 |
|
|
Inventory write-down (7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,084 |
|
|
Tax receivable agreement liability adjustments (8) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,620 |
) |
|
One-time disposal costs for unfinished goods held at offshore factories (9) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,404 |
|
|
One-time disposal costs for finished goods held at offshore factories (10) |
|
— |
|
|
|
6,148 |
|
|
|
— |
|
|
|
6,148 |
|
|
Adjusted EBITDA |
$ |
30,985 |
|
|
$ |
25,394 |
|
|
$ |
68,476 |
|
|
$ |
3,745 |
|
|
Adjusted EBITDA margin (13) |
|
10.6 |
% |
|
|
8.1 |
% |
|
|
9.1 |
% |
|
|
0.5 |
% |
|
(1) |
Represents the reallocation of net income (loss) 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 (loss) was attributable to non-controlling interests. |
|
|
(2) |
Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on the timing of awards. |
|
|
(3) |
Represents write-off of unamortized debt financing fees for the nine months ended September 30, 2023. |
|
|
(4) |
For the three months ended September 30, 2024, includes charges related to contract settlement agreements for warehouse leased space. For the nine months ended September 30, 2024, includes one-time legal settlement gain and contract settlement agreements and related services to and the fair market value adjustments of certain assets held for sale. For the three and nine months ended September 30, 2023, includes costs related to the termination of a lease agreement and related expenses, partially offset by acquisition-related benefits. |
|
|
(5) |
For the three and nine months ended September 30, 2024, includes severance and benefit costs related to certain management departures. For the three and nine months ended September 30, 2023, includes charges to remove leasehold improvements and return multiple Washington-based warehouses, and charges related to severance and benefit costs for a reduction-in-force. |
|
|
(6) |
Represents both unrealized and realized foreign currency gains and losses on transactions denominated other than in U.S. dollars, including derivative gains and losses on foreign currency forward exchange contracts. |
|
|
(7) |
For the nine months ended September 30, 2023, represents a one-time inventory write-down to improve U.S. warehouse operational efficiency. |
|
|
(8) |
Represents reduction of the tax receivable agreement liability as a result of recognizing a full valuation allowance of the Company’s deferred tax assets and anticipated inability to realize future tax benefits. |
|
|
(9) |
For the nine months ended September 30, 2023, represents one-time disposal costs related to unfinished goods held at offshore factories. |
|
|
(10) |
For the three and nine months ended September 30, 2023, represents one-time disposal costs related to finished goods held at offshore factories primarily due to customer order cancellations. |
|
|
(11) |
Represents the income tax expense effect of the above adjustments, except for the tax liability receivable adjustment. This adjustment uses an effective tax rate of 25% for all periods presented. For the nine months ended September 30, 2023, this also includes $123.2 million recognized valuation allowance on the Company’s deferred tax assets. |
|
|
(12) |
Adjusted net income (loss) margin is calculated as adjusted net loss as a percentage of net sales. |
|
|
(13) |
Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of net sales. |
