Funko, Inc.

Ladies and gentlemen, good afternoon and welcome to Funco's 23rd Second Quarter Financial Results Conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Please be advised that production of this call and whole or in parts is not permitted without written authorization from the company. As a reminder, this call is pre-recorded. I will now turn the call over to Funco's new head of investor relations, Rob Sheffey. Please proceed.

Hello, everyone, and thank you for joining us today to discuss Funco's 2023 second quarter financial results. On the call are Mike Lunsford, our recently appointed interim chief executive officer, and Steve Knave, the company's chief financial officer and chief operating officer. This call is being broadcast live at investor.funco.com. Playback will be available for at least one year on the company's website. I want to remind everyone that during the course of this call, management's discussion will include forward-looking information. These statements represent our best judgment about the company's future results and performance as of today. Our actual results are subject to many risks and uncertainties that may differ materially from those stated or implied. including those discussed in our earnings release. Additional information concerning factors that could cause actual results that differ materially is contained in our most recent SEC reports. In addition, during the course of this call, we refer to non-GAAP financial measures that are not prepared in accordance with U.S. generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. investors are encouraged to review Funko's press release announcing its 2023 second quarter financial results for the company's reasons for presenting non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is also attached to the company's earnings press release issued earlier today. I will now turn the call over to Steve.

Thanks, Rob, and welcome to Funko, by the way. Good afternoon, everybody, and thanks for joining us today. In the second quarter, net sales were $240 million, and adjusted EBITDA was a loss of approximately $8 million. Both metrics were within the guidance ranges we previously provided for this quarter. Our second quarter performance was impacted by ongoing inventory destocking by our larger wholesale customers. We anticipate this softness will continue in the second half of the year. Accordingly, we have lowered our full year guidance. I'll discuss guidance in more detail later in the call. With that brief overview, I'd like to introduce everyone to Mike Lunsford to give you more color. Mike was recently named interim CEO. He's an experienced CEO and has served as interim CEO for two other public companies. He's been a member of Funco's board for the last five years, so he is very familiar with the company, its operations, and its challenges. Mike, go ahead.