Falcon’s Beyond Global, Inc. (Nasdaq: FBYD) (“Falcon’s Beyond”, “Falcon’s” or the “Company”), a visionary leader in innovative and immersive storytelling through Falcon’s Creative ...
Company Reports Consolidated Revenue of $2.1 Million and Remains Positioned for Ongoing Positive Growth
Company’s Unconsolidated Subsidiary, Falcon’s Creative Group, Q3 Revenue Increased to $13.2 Million and Company’s Unconsolidated Joint Venture, Producciones de Parques, Q3 Revenue Increased to $17.8 Million
ORLANDO, Fla.: Falcon’s Beyond Global, Inc. (Nasdaq: FBYD) (“Falcon’s Beyond”, “Falcon’s” or the “Company”), a visionary leader in innovative and immersive storytelling through Falcon’s Creative Group (“FCG”), Falcon’s Beyond Destinations (“FBD”) and Falcon’s Beyond Brands (“FBB”), today announced its financial results for the third quarter of fiscal year 2024 ended September 30, 2024.
Simon Philips, President of Falcon’s Beyond, stated, “Falcon's performance in Q3 is a testament to the strength of our strategic initiatives and the dedication of our teams. We’ve achieved substantial revenue growth in Falcon’s Creative Group compared to last year, positioning us for continued success as we move into 2025 and beyond. One of the key highlights of this quarter is our ongoing project work for the Qiddiya Investment Company in Saudi Arabia focused on the master planning and designing of several first-of-its-kind immersive entertainment projects for Qiddiya City, which further showcase our commitment to delivering services that create innovation and groundbreaking entertainment. We are thrilled with the progress and the positive reception that our projects have garnered thus far. With the momentum we’ve built and our unwavering focus across all divisions, we are more confident than ever in our ability to deliver long-term value to our stakeholders.”
Third Quarter 2024 Financial Highlights
_______________________ |
1 Adjusted EBITDA is a non-GAAP financial measure. See “Use and Definition of Non-GAAP Financial Measure” below for more information and a reconciliation to the most directly comparable GAAP measure. |
Jo Merrill, Chief Financial Officer of Falcon's Beyond, stated, “We continue to see positive momentum in our third quarter with a year-over-year increase in revenue in excess of 190% in Falcon’s Creative Group, and a significant reduction in Company overhead costs. The Company has taken significant steps this quarter to restructure and simplify its capital and debt stack to pave the way for the near-term expansion of the business segments as we approached our first anniversary as a public company.”
About Falcon’s Beyond
Falcon’s Beyond is a visionary innovator in immersive storytelling, sitting at the intersection of three potential high growth business opportunities: content, technology, and experiences. Falcon’s Beyond propels intellectual property (IP) activations concurrently across physical and digital experiences through three core business units:
Falcon’s Beyond also invents immersive rides, attractions, and technologies for entertainment destinations around the world.
FALCON’S BEYOND and its related trademarks are owned by Falcon’s Beyond.
Falcon’s is headquartered in Orlando, Fla. Learn more at falconsbeyond.com.
Falcon’s Beyond may use its website as a distribution channel of material Company information. Financial and other important information regarding the Company is routinely accessed through and posted on our website at https://investors.falconsbeyond.com
In addition, you may automatically receive email alerts and other information about Falcon’s when you enroll your email address by visiting the Email Alerts section at https://investors.falconsbeyond.com
Cautionary Note Regarding Forward-Looking Statement
This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, words such as “will”, “aimed”, “expected” and similar expressions identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those expressed in or implied by the forward-looking statements, including (1) our ability to sustain our growth, effectively manage our anticipated future growth, and implement our business strategies to achieve the results we anticipate, (2) impairments of our intangible assets and equity method investment in our joint ventures, (3) our ability to raise additional capital, (4) the closure of Katmandu Park DR and the repositioning and rebranding of our FBD business, (5) the success of our growth plans in FCG, (6) our customer concentration in FCG, (7) the risk that contractual restrictions relating to the Strategic Investment may affect our ability to access the public markets and expand our business, (8) the risks of doing business internationally, including in the Kingdom of Saudi Arabia, (9) our indebtedness and reliance on related parties with respect to such indebtedness, (10) our dependence on strategic relationships with local partners in order to offer and market our products and services in certain jurisdictions, (11) our reliance on our senior management and key employees, and our ability to hire, train, retain, and motivate qualified personnel, (12) cybersecurity-related risks, (13) our ability to protect our intellectual property, (14) our ability to remediate identified material weaknesses in our internal control over financial reporting, (15) the concentration of share ownership and the significant influence of the Demerau Family and Cecil D. Magpuri, (16) the outcome of pending, threatened and future legal proceedings, (17) our continued compliance with Nasdaq continued listing standards, (18) risks related to our Up-C entity structure and the fact that we may be required to make substantial payments to certain unitholders under our Tax Receivable Agreement, and the risks disclosed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on April 29, 2024, and the Company’s other filings with the Securities and Exchange Commission. The forward-looking statements herein speak only as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Use and Definition of Non-GAAP Financial Measure
We prepare our unaudited condensed consolidated financial statements in accordance with US GAAP. In addition to disclosing financial results prepared in accordance with US GAAP, we disclose information regarding Adjusted EBITDA which is a non-GAAP measure. We define Adjusted EBITDA as net income (loss), determined in accordance with US GAAP, for the period presented, before interest expense, net, income tax expense, depreciation and amortization, transaction expenses related to the business combination, credit loss expense, change in fair value of warrant liabilities, and change in fair value of earnout liabilities. We believe that Adjusted EBITDA is useful to investors as it eliminates the non-cash depreciation and amortization expense that results from our capital investments and intangible assets recognized in any business combination and improves comparability by eliminating the interest expense associated with our debt facilities, which may not be comparable with other companies based on our structure.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under US GAAP. A reconciliation of non-GAAP Adjusted EBITDA to GAAP Net Income, the most directly comparable GAAP financial measure, is included below under the heading “Reconciliation of Non-GAAP Financial Measure”.
FALCON’S BEYOND GLOBAL, INC. AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||
(in thousands of U.S. dollars) | |||||||||
|
| As of |
|
| As of | ||||
Assets |
|
|
|
|
| ||||
Current assets: |
|
|
|
|
| ||||
Cash and cash equivalents |
| $ | 828 |
|
|
| $ | 672 |
|
Accounts receivable, net ($219 and $632 related party as of September 30, 2024 and December 31, 2023, respectively) |
|
| 219 |
|
|
|
| 696 |
|
Other current assets |
|
| 1,025 |
|
|
|
| 1,061 |
|
Total current assets |
|
| 2,072 |
|
|
|
| 2,429 |
|
Investments and advances to equity method investments |
|
| 63,915 |
|
|
|
| 60,643 |
|
Property and equipment, net |
|
| 24 |
|
|
|
| 23 |
|
Other non-current assets |
|
| 539 |
|
|
|
| 264 |
|
Total assets |
| $ | 66,550 |
|
|
| $ | 63,359 |
|
|
|
|
|
|
|
|
| ||
Liabilities and stockholders’ equity (deficit) |
|
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
|
| ||
Accounts payable ($1,488 and $1,357 related party as of September 30, 2024 and December 31, 2023, respectively) |
| $ | 4,710 |
|
| $ | 3,852 |
| |
Accrued expenses and other current liabilities ($2,429 and $475 related party as of September 30, 2024 and December 31, 2023, respectively) |
|
| 24,332 |
|
|
| 20,840 |
| |
Short-term debt ($904 related party as of September 30, 2024) |
|
| 8,471 |
|
|
| — |
| |
Current portion of long-term debt ($0 and $4,878 related party as of September 30, 2024 and December 31, 2023, respectively) |
|
| 1,868 |
|
|
| 6,651 |
| |
Earnout liabilities – current portion |
|
| — |
|
|
| 183,055 |
| |
Total current liabilities |
|
| 39,381 |
|
|
|
| 214,398 |
|
Other long-term payables |
|
| 5,500 |
|
|
|
| 5,500 |
|
Long-term debt, net of current portion ($22,822 and $18,897 related party as of September 30, 2024 and December 31, 2023, respectively) |
|
| 25,530 |
|
|
|
| 22,965 |
|
Earnout liabilities, net of current portion |
|
| — |
|
|
|
| 305,586 |
|
Warrant liabilities |
|
| 5,614 |
|
|
|
| 3,904 |
|
Total liabilities |
|
| 76,025 |
|
|
|
| 552,353 |
|
|
|
|
|
|
|
|
| ||
Commitments and contingencies – Note 10 |
|
|
|
|
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|
| ||
|
|
|
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|
|
|
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Stockholders’ equity (deficit) |
|
|
|
|
|
|
| ||
Class A common stock ($0.0001 par value, 500,000,000 shares authorized; 10,066,629 issued and outstanding at September 30, 2024 and 500,000,000 shares authorized; 7,871,643 issued and outstanding as of December 31, 2023) |
|
| 1 |
|
|
|
| 1 |
|
Class B common stock ($0.0001 par value, 150,000,000 shares authorized; 57,346,617 issued and outstanding at September 30, 2024 and 150,000,000 shares authorized; 52,034,117 issued and outstanding as of December 31, 2023) |
|
| 6 |
|
|
|
| 5 |
|
Additional paid-in capital |
|
| 43,116 |
|
|
|
| 11,699 |
|
Accumulated deficit |
|
| (44,322 | ) |
|
|
| (68,594 | ) |
Accumulated other comprehensive loss |
|
| (215 | ) |
|
|
| (216 | ) |
Total equity attributable to common stockholders |
|
| (1,414 | ) |
|
|
| (57,105 | ) |
Non-controlling interests |
|
| (8,061 | ) |
|
|
| (431,889 | ) |
Total equity |
|
| (9,475 | ) |
|
|
| (488,994 | ) |
Total liabilities and equity |
| $ | 66,550 |
|
|
| $ | 63,359 |
|
FALCON’S BEYOND GLOBAL, INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (LOSS) (UNAUDITED) | |||||||||||||||
(in thousands of U.S. dollars, except share and per share data) | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
| September |
|
| September |
| September |
|
| September | ||||||
Revenue ($2,069, $391, $5,383 and $4,628 related party for the three months ended September 30, 2024 and 2023 and for the nine months ended September 30, 2024 and 2023, respectively) | $ | 2,069 |
|
| $ | 1,581 |
|
| $ | 5,383 |
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