Funko, Inc. (NASDAQ:FNKO) Q4 2023 Earnings Call Transcript

Linda Bolton Weiser: And just to follow on your comment about the Red Sea, so I assume that’s only affecting shipments from Asia to Europe, which really is not a huge part of your sales. So I guess I’m curious why that is such a major impact. And also, it seems like there would just be a delay, not that you’re not getting the product from Asia to Europe. So can you give a little bit more color on that?

Yves LePendeven: I think that’s exactly right, Linda. We’re saying that the Red Sea has more of an impact on Q1 specifically. We don’t think it’s going to be disruptive to our full year sales projections. So just based on those longer transit times, a little bit higher costs that we’ve seen come through. And it is – you’re right – primarily an EMEA impact, but there could be knock-on effects to the rest of the world. So, again, we’re just watching it very closely. What we know today is reflected in our guidance right now.

Linda Bolton Weiser: Sorry to keep going on, but I missed what you said about how much actual debt reduction was there in the first quarter related to that transaction.

Yves LePendeven: So we haven’t commented on the actual number. You’ll see it in Q1 results, but we paid down $26 million of debt in Q4, and we are continuing to pay down debt in Q1.

Operator: This concludes our Q &A. I’ll now hand back to the management team for final remarks.

Michael Lunsford: Thank you, everyone, for joining us on the call today. As always, thanks to our fans, employees, and partners for their support, and thank you to our investors and analysts for joining the call and listening in. We look forward to sharing our progress on our next call in nine weeks. Goodbye, everyone. Ladies and gentlemen, today’s call is now concluded. We’d like to thank you for your participation. You may now disconnect your lines.