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Yahoo
15-05-2025
- Business
- Yahoo
Falcon's Beyond Reports First Quarter 2025 Financial Results
Company Reports Consolidated Revenue of $1.7 Million Company's Unconsolidated Subsidiary, Falcon's Creative Group generated Q1 Revenue of $6.3 Million Company's Unconsolidated Joint Venture, Producciones de Parques, generated Q1 revenue of $7.2 Million ORLANDO, Fla., May 15, 2025--(BUSINESS WIRE)--Falcon's Beyond Global, Inc. (Nasdaq: FBYD) ("Falcon's Beyond", "Falcon's" or the "Company"), a visionary leader in innovative and immersive storytelling through its divisions Falcon's Creative Group ("FCG"), Falcon's Beyond Destinations ("FBD"), and Falcon's Beyond Brands ("FBB") today reported its financial results for the first quarter of fiscal year 2025 ended March 31, 2025. First Quarter 2025 Financial Results Revenue: Falcon's Beyond generated consolidated revenues of $1.7 million for the three months ended March 31, 2025, representing fees for corporate and shared services earned from its FCG division, management fees from its Producciones de Parques, S.L. ("PDP") 50:50 joint venture with Melia Hotels Int'l, and attraction maintenance service fees from its Falcon's Beyond Brands division. FCG recorded revenues of $6.3 million in the three months ended March 31, 2025, representing a decrease of $8.6 million, or 57.7%, over the corresponding period of 2024 primarily due to timing of projects. FCG recorded an operating loss of ($2.8) million and a net loss of ($3.0) million in the three months ended March 31, 2025, compared with an operating income of $1.6 million and net income of $1.8 million for the corresponding 2024 period. After the Qiddiya Investment Company (QIC) preferred return and amortization of basis difference, Falcon's Beyond's share of net loss from FCG was $(4.6) million in the three months ended March 31, 2025. PDP recognized revenues of $7.2 million in the three months ended March 31, 2025, a $0.2 million decrease over the corresponding period of 2024, primarily due to the impact of foreign currency translation of the results of the European joint venture. Income from operations increased $0.3 million to $1.6 million for the three months ended March 31, 2025, compared with operating income of $1.3 million for the corresponding period of 2025. Net income was flat at $1.0 million for the three months ended March 31, 2025, and March 31, 2024. Falcon's Beyond's share of income was $0.5 million from PDP for three months ended March 31, 2025. Net Income: Falcon's Beyond's consolidated net loss of $ (8.1) million for the three months ended March 31, 2025, decreased $122.1 million compared with the corresponding 2024 period, primarily driven by a $118.6 million quarter-over-quarter change in the fair value of earnout liabilities, $1.5 million of transaction expenses related to the Company's S-1 filings in 2025, a $5.2 million increase in share of losses from equity method investments, and a $1.1 million increase in interest expense, partially offset by a $2.7 million quarter-over-quarter change in fair value of warrant liabilities, $1.1 million increase in unrealized foreign currency transactional gains and $0.5 million decrease in other expenses. EBITDA: Falcon's Beyond's adjusted EBITDA(1) loss increased $3.6 million to $(8.1) million loss for the three months ended March 31, 2025, compared with $(4.5) million loss for the corresponding 2024 period. Adjusted EBITDA loss for the three months ended March 31, 2024, was primarily driven by a $5.2 million increase in in share of losses from equity method investments, partially offset by a $1.1 million increase in unrealized foreign currency transactional gains and $0.5 million decrease in other expenses. (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. Other Business Highlights Warrant Agreement Amendment and Exchange: This initiative simplified the Company's capital structure by providing Warrant holders conversion of their holdings into equity in Falcon's Beyond at a fixed exchange rate. The mandatory exchange of Warrants takes place on October 6, 2028 (the "Exchange Date") for shares of the Company's Class A common stock, par value $0.0001 per share ("Class A Common Stock") at an exchange ratio of 0.25 shares of Class A Common Stock per Warrant (the "Exchange Ratio"). The mandatory exchange was pursuant to an amendment which became effective on January 14, 2025, authorized by holders of more than 50% of the Warrants. After the effectiveness of the Warrant Agreement Amendment and until the Exchange Date, the warrants, as amended by the Warrant Agreement Amendment, will not be exercisable and the holders of the warrants will have no further rights except to receive shares of Class A Common Stock at the Exchange Ratio on the Exchange Date. Oceaneering Entertainment Systems ("OES") Transaction: On May 9, 2025, The Company acquired key assets of Oceaneering Entertainment System ("OES"), a division of Oceaneering International Inc. ("OII"). In the transaction, the Company purchased certain tangible assets, OES's portfolio of intellectual property, including patented technologies, proprietary engineering and manufacturing processes, and assumed the lease for a 106,000+ square-foot facility in Orlando, FL to be utilized by the Falcon's Beyond Brands division to bolster Falcon's research, development, manufacturing, and attraction integration services, in addition to hiring key members of OES' highly experienced team in February 2025. The Company has an option to acquire certain OES vehicle inventory exercisable on or before July 23, 2025. The transaction follows a letter of intent previously announced on November 19, 2024, with Falcon's, rather than Infinite Acquisitions Partners LLC, making the purchase. "At Falcon's Beyond, our mission is to push the boundaries of immersive storytelling across every dimension of the global experience economy, from media and IP development to destination attractions and consumer products. The acquisition of Oceaneering Entertainment Systems is an exciting step that enhances just one aspect of our broader strategy. With the addition of cutting-edge ride technologies, advanced manufacturing capabilities, and a world-class team, we're expanding our toolbox for innovation. But this is only part of the story. As we continue to diversify our offerings, deepen our IP portfolio, and forge new strategic partnerships, we remain focused on building an enduring platform that delivers exceptional value to our audiences and shareholders alike," said Simon Philips, President of Falcon's Beyond. 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 Creative Group creates master plans, designs attractions and experiential entertainment, and produces content, interactives, and software. Falcon's Beyond Destinations develops a diverse range of entertainment experiences using both Falcon's Beyond owned and third party licensed intellectual property, spanning location-based entertainment, dining, and retail. Falcon's Beyond Brands endeavors to bring brands and intellectual property to life through animation, movies, licensing and merchandising, gaming as well as ride and technology sales. 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 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 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 Cautionary Note Regarding Forward-Looking Statements 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," "would", "aim", enhances", "expanding", "diversify", "deepen", "forge", "building", "delivers", "exceptional" 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) any failure to realize the anticipated benefits of the acquisition of OES, (2) risks related to legacy OES products and our ability to service such products, (3) the risk that the OES acquisition, integration of the OES personnel we hired, and efforts to grow Falcon's Attractions disrupts our other operations, (4) our ability to grow current and future potential customer relationships (5) our ability to sustain our growth, effectively manage our anticipated future growth, and implement our business strategies to achieve the results we anticipate, (6) our current liquidity resources raise substantial doubt about our ability to continue as a going concern (7) impairments of our intangible assets and equity method investment in our joint ventures, (8) our ability to raise additional capital, (9) the closure of Katmandu Park DR and the repositioning and rebranding of our FBD business, (6) the success of our growth plans in FCG, (10) our customer concentration in FCG, (11) the risk that contractual restrictions relating to the Strategic Investment may affect our ability to access the public markets and expand our business, (12) the risks of doing business internationally, including in the Kingdom of Saudi Arabia, (13) our indebtedness, (14) our dependence on strategic relationships with local partners in order to offer and market our products and services in certain jurisdictions, (15) our reliance on our senior management and key employees, and our ability to hire, train, retain, and motivate qualified personnel, (16) our reliance on our senior management and key employees, and our ability to hire, train, retain, and motivate qualified personnel, (17) cybersecurity-related risks, (18) our ability to protect our intellectual property, including the intellectual property purchased from OES, (19) our ability to remediate identified material weaknesses in our internal controls over financial reporting, (20) the concentration of share ownership and the significant influence of the Demerau Family and Cecil D. Magpuri, (21) the outcome of pending, threatened and future legal proceedings, (22) our continued compliance with Nasdaq continued listing standards, (23) 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 (24) the risks disclosed under the caption "Risk Factors" in the Company's most recent Annual Report on Form 10-K, 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 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 net interest and expense, income tax expense, depreciation and amortization, transaction expenses related to the business combination, credit loss expense related to the closure of the Sierra Parima Katmandu Park, share of equity method investee's impairment of fixed assets, impairment of equity method investments, change in fair value of warrant liabilities, change in fair value of earnout liabilities, intangible asset impairment loss, and gain on deconsolidation of FCG. 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, and eliminating the change in fair value of warrant and earnout liabilities, 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. Some of these limitations are (i) it does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments, (ii) it does not reflect changes in, or cash requirements for, our working capital needs, (iii) it does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on our debt, (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements, (v) it does not adjust for all non-cash income or expense items that are reflected in our statements of cash flows, and (vi) other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands of U.S. dollars, except share and per share data) As ofMarch 31,2025 As ofDecember 31,2024 Assets Current assets: Cash and cash equivalents $ 1,108 $ 825 Accounts receivable 628 1,716 Other current assets 834 1,593 Total current assets 2,656 4,134 Investments and advances to equity method investments 53,454 56,560 Property and equipment, net 110 24 Other non-current assets 500 513 Total assets $ 56,720 $ 61,231 Liabilities and stockholders' equity (deficit) Current liabilities: Accounts payable $ 9,519 $ 9,540 Accrued expenses and other current liabilities 32,195 25,870 Short term debt 8,471 8,471 Current portion of long-term debt 1,917 1,759 Total current liabilities 52,102 45,640 Long-term debt, net of current portion 30,565 30,977 Warrant liabilities — 4,711 Total liabilities 82,667 81,328 Commitments and contingencies – Note 10 Stockholders' equity (deficit) Deficit attributable to common stockholders (11,597 ) (8,965 ) Non-controlling interest (14,350 ) (11,132 ) Total deficit (25,947 ) (20,097 ) Total liabilities and equity $ 56,720 $ 61,231 FALCON'S BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands of U.S. dollars, except share and per share data) Three months ended March 31,2025 March 31,2024 Revenue $ 1,708 $ 1,516 Operating expenses: Project design and build expense 106 — Selling, general and administrative expense 6,298 6,793 Transaction expenses 1,521 7 Credit loss expense — 12 Research and development expense 118 16 Depreciation and amortization expense 4 1 Total operating expenses 8,047 6,829 Loss from operations (6,339 ) (5,313 ) Share of (loss) gain from equity method investments (4,063 ) 1,154 Interest expense (1,332 ) (269 ) Interest income 3 3 Change in fair value of warrant liabilities 2,886 208 Change in fair value of earnout liabilities — 118,615 Foreign exchange transaction gain (loss) 752 (375 ) Net (loss) income before taxes $ (8,093 ) $ 114,023 Income tax benefit 1 1 Net (loss) income $ (8,092 ) $ 114,024 Net (loss) income attributable to noncontrolling interest (4,477 ) 96,855 Net (loss) income attributable to common stockholders (3,615 ) 17,169 Net (loss) income per share Net (loss) income per share, basic (0.10 ) 1.59 Net (loss) income per share, diluted (0.13 ) 1.27 Weighted average shares outstanding, basic 37,322,177 10,825,824 Weighted average shares outstanding, diluted 37,509,127 11,050,824 FALCON'S BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands of U.S. dollars) Three months ended March 31,2025 March 31,2024 Cash flows from operating activities Net (loss) income $ (8,092 ) $ 114,024 Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: Depreciation and amortization 4 1 Foreign exchange transaction (gain) loss (752 ) 375 Share of loss (gain) from equity method investments 4,063 (1,154 ) Change in deferred tax assets — — Credit loss expense - 12 Change in fair value of earnouts - (118,615 ) Change in fair value of warrants (2,886 ) (208 ) Share based compensation expense 531 346 Loss on sale of equipment — 2 Changes in assets and liabilities: Accounts receivable 1,098 (1,133 ) Contract assets (86 ) — Deferred transaction costs 588 — Other current assets 172 73 Other non-current assets 13 (58 ) Accounts payable (30 ) 2,669 Accrued expenses and other current liabilities 6,322 (102 ) Net cash provided by (used in) operating activities 945 (3,768 ) Cash flows from investing activities Purchase of property and equipment (92 ) (4 ) Proceeds from sale of equipment 2 2 Investments and advances to unconsolidated joint ventures — (2,094 ) Net cash used in investing activities (90 ) (2,096 ) Cash flows from financing activities Proceeds from debt – related party — 7,221 Proceeds from debt – third party — 1,250 Repayment of debt – related party — (1,182 ) Repayment of debt – third party (393 ) (427 ) Proceeds from related party credit facilities 1,248 4,650 Repayment of related party credit facilities (1,257 ) (5,392 ) Proceeds from exercised warrants — 111 Proceeds from RSUs issued to affiliates 198 — Settlement of RSUs (397 ) — Net cash (used in) provided by financing activities (601 ) 6,231 Net increase in cash and cash equivalents 254 367 Foreign exchange impact on cash 29 11 Cash and cash equivalents – beginning of period 825 672 Cash and cash equivalents at end of period $ 1,108 $ 1,050 Reconciliation of Non-GAAP Financial Measure The following table sets forth reconciliations of net income (loss) under US GAAP to Adjusted EBITDA for the following periods: (Unaudited) Three months ended March 31,2025 March 31,2024 Net (loss) income $ (8,092 ) $ 114,024 Interest expense 1,332 269 Interest income (3 ) (3 ) Income tax benefit (1 ) (1 ) Depreciation and amortization expense 4 1 EBITDA (6,760 ) 114,290 Transaction expenses 1,521 7 Credit loss expense related to the closure of the Sierra Parima Katmandu Park — 12 Change in fair value of warrant liabilities (2,886 ) (208 ) Change in fair value of earnout liabilities — (118,615 ) Adjusted EBITDA $ (8,125 ) $ (4,514 ) View source version on Contacts Media Relations: Kathleen Prihoda, Falcon's Beyond: kprihoda@ Investor Relations: ir@
Business Wire
15-05-2025
- Business
- Business Wire
Falcon's Beyond Reports First Quarter 2025 Financial Results
ORLANDO, Fla.--(BUSINESS WIRE)--Falcon's Beyond Global, Inc. (Nasdaq: FBYD) ('Falcon's Beyond', 'Falcon's' or the 'Company'), a visionary leader in innovative and immersive storytelling through its divisions Falcon's Creative Group ('FCG'), Falcon's Beyond Destinations ('FBD'), and Falcon's Beyond Brands ('FBB') today reported its financial results for the first quarter of fiscal year 2025 ended March 31, 2025. First Quarter 2025 Financial Results Revenue: Falcon's Beyond generated consolidated revenues of $1.7 million for the three months ended March 31, 2025, representing fees for corporate and shared services earned from its FCG division, management fees from its Producciones de Parques, S.L. ('PDP') 50:50 joint venture with Melia Hotels Int'l, and attraction maintenance service fees from its Falcon's Beyond Brands division. FCG recorded revenues of $6.3 million in the three months ended March 31, 2025, representing a decrease of $8.6 million, or 57.7%, over the corresponding period of 2024 primarily due to timing of projects. FCG recorded an operating loss of ($2.8) million and a net loss of ($3.0) million in the three months ended March 31, 2025, compared with an operating income of $1.6 million and net income of $1.8 million for the corresponding 2024 period. After the Qiddiya Investment Company (QIC) preferred return and amortization of basis difference, Falcon's Beyond's share of net loss from FCG was $(4.6) million in the three months ended March 31, 2025. PDP recognized revenues of $7.2 million in the three months ended March 31, 2025, a $0.2 million decrease over the corresponding period of 2024, primarily due to the impact of foreign currency translation of the results of the European joint venture. Income from operations increased $0.3 million to $1.6 million for the three months ended March 31, 2025, compared with operating income of $1.3 million for the corresponding period of 2025. Net income was flat at $1.0 million for the three months ended March 31, 2025, and March 31, 2024. Falcon's Beyond's share of income was $0.5 million from PDP for three months ended March 31, 2025. Net Income: Falcon's Beyond's consolidated net loss of $ (8.1) million for the three months ended March 31, 2025, decreased $122.1 million compared with the corresponding 2024 period, primarily driven by a $118.6 million quarter-over-quarter change in the fair value of earnout liabilities, $1.5 million of transaction expenses related to the Company's S-1 filings in 2025, a $5.2 million increase in share of losses from equity method investments, and a $1.1 million increase in interest expense, partially offset by a $2.7 million quarter-over-quarter change in fair value of warrant liabilities, $1.1 million increase in unrealized foreign currency transactional gains and $0.5 million decrease in other expenses. EBITDA: Falcon's Beyond's adjusted EBITDA(1) loss increased $3.6 million to $(8.1) million loss for the three months ended March 31, 2025, compared with $(4.5) million loss for the corresponding 2024 period. Adjusted EBITDA loss for the three months ended March 31, 2024, was primarily driven by a $5.2 million increase in in share of losses from equity method investments, partially offset by a $1.1 million increase in unrealized foreign currency transactional gains and $0.5 million decrease in other expenses. (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. Expand Other Business Highlights Warrant Agreement Amendment and Exchange: This initiative simplified the Company's capital structure by providing Warrant holders conversion of their holdings into equity in Falcon's Beyond at a fixed exchange rate. The mandatory exchange of Warrants takes place on October 6, 2028 (the 'Exchange Date') for shares of the Company's Class A common stock, par value $0.0001 per share ('Class A Common Stock') at an exchange ratio of 0.25 shares of Class A Common Stock per Warrant (the 'Exchange Ratio'). The mandatory exchange was pursuant to an amendment which became effective on January 14, 2025, authorized by holders of more than 50% of the Warrants. After the effectiveness of the Warrant Agreement Amendment and until the Exchange Date, the warrants, as amended by the Warrant Agreement Amendment, will not be exercisable and the holders of the warrants will have no further rights except to receive shares of Class A Common Stock at the Exchange Ratio on the Exchange Date. This initiative simplified the Company's capital structure by providing Warrant holders conversion of their holdings into equity in Falcon's Beyond at a fixed exchange rate. The mandatory exchange of Warrants takes place on October 6, 2028 (the 'Exchange Date') for shares of the Company's Class A common stock, par value $0.0001 per share ('Class A Common Stock') at an exchange ratio of 0.25 shares of Class A Common Stock per Warrant (the 'Exchange Ratio'). The mandatory exchange was pursuant to an amendment which became effective on January 14, 2025, authorized by holders of more than 50% of the Warrants. After the effectiveness of the Warrant Agreement Amendment and until the Exchange Date, the warrants, as amended by the Warrant Agreement Amendment, will not be exercisable and the holders of the warrants will have no further rights except to receive shares of Class A Common Stock at the Exchange Ratio on the Exchange Date. Oceaneering Entertainment Systems ("OES") Transaction: On May 9, 2025, The Company acquired key assets of Oceaneering Entertainment System ('OES'), a division of Oceaneering International Inc. ('OII'). In the transaction, the Company purchased certain tangible assets, OES's portfolio of intellectual property, including patented technologies, proprietary engineering and manufacturing processes, and assumed the lease for a 106,000+ square-foot facility in Orlando, FL to be utilized by the Falcon's Beyond Brands division to bolster Falcon's research, development, manufacturing, and attraction integration services, in addition to hiring key members of OES' highly experienced team in February 2025. The Company has an option to acquire certain OES vehicle inventory exercisable on or before July 23, 2025. The transaction follows a letter of intent previously announced on November 19, 2024, with Falcon's, rather than Infinite Acquisitions Partners LLC, making the purchase. 'At Falcon's Beyond, our mission is to push the boundaries of immersive storytelling across every dimension of the global experience economy, from media and IP development to destination attractions and consumer products. The acquisition of Oceaneering Entertainment Systems is an exciting step that enhances just one aspect of our broader strategy. With the addition of cutting-edge ride technologies, advanced manufacturing capabilities, and a world-class team, we're expanding our toolbox for innovation. But this is only part of the story. As we continue to diversify our offerings, deepen our IP portfolio, and forge new strategic partnerships, we remain focused on building an enduring platform that delivers exceptional value to our audiences and shareholders alike,' said Simon Philips, President of Falcon's Beyond. 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 Creative Group creates master plans, designs attractions and experiential entertainment, and produces content, interactives, and software. creates master plans, designs attractions and experiential entertainment, and produces content, interactives, and software. Falcon's Beyond Destinations develops a diverse range of entertainment experiences using both Falcon's Beyond owned and third party licensed intellectual property, spanning location-based entertainment, dining, and retail. develops a diverse range of entertainment experiences using both Falcon's Beyond owned and third party licensed intellectual property, spanning location-based entertainment, dining, and retail. Falcon's Beyond Brands endeavors to bring brands and intellectual property to life through animation, movies, licensing and merchandising, gaming as well as ride and technology sales. 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 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 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 Cautionary Note Regarding Forward-Looking Statements 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,' 'would', "aim", enhances', 'expanding', 'diversify', 'deepen', 'forge', 'building', 'delivers', 'exceptional' 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) any failure to realize the anticipated benefits of the acquisition of OES, (2) risks related to legacy OES products and our ability to service such products, (3) the risk that the OES acquisition, integration of the OES personnel we hired, and efforts to grow Falcon's Attractions disrupts our other operations, (4) our ability to grow current and future potential customer relationships (5) our ability to sustain our growth, effectively manage our anticipated future growth, and implement our business strategies to achieve the results we anticipate, (6) our current liquidity resources raise substantial doubt about our ability to continue as a going concern (7) impairments of our intangible assets and equity method investment in our joint ventures, (8) our ability to raise additional capital, (9) the closure of Katmandu Park DR and the repositioning and rebranding of our FBD business, (6) the success of our growth plans in FCG, (10) our customer concentration in FCG, (11) the risk that contractual restrictions relating to the Strategic Investment may affect our ability to access the public markets and expand our business, (12) the risks of doing business internationally, including in the Kingdom of Saudi Arabia, (13) our indebtedness, (14) our dependence on strategic relationships with local partners in order to offer and market our products and services in certain jurisdictions, (15) our reliance on our senior management and key employees, and our ability to hire, train, retain, and motivate qualified personnel, (16) our reliance on our senior management and key employees, and our ability to hire, train, retain, and motivate qualified personnel, (17) cybersecurity-related risks, (18) our ability to protect our intellectual property, including the intellectual property purchased from OES, (19) our ability to remediate identified material weaknesses in our internal controls over financial reporting, (20) the concentration of share ownership and the significant influence of the Demerau Family and Cecil D. Magpuri, (21) the outcome of pending, threatened and future legal proceedings, (22) our continued compliance with Nasdaq continued listing standards, (23) 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 (24) the risks disclosed under the caption 'Risk Factors' in the Company's most recent Annual Report on Form 10-K, 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 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 net interest and expense, income tax expense, depreciation and amortization, transaction expenses related to the business combination, credit loss expense related to the closure of the Sierra Parima Katmandu Park, share of equity method investee's impairment of fixed assets, impairment of equity method investments, change in fair value of warrant liabilities, change in fair value of earnout liabilities, intangible asset impairment loss, and gain on deconsolidation of FCG. 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, and eliminating the change in fair value of warrant and earnout liabilities, 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. Some of these limitations are (i) it does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments, (ii) it does not reflect changes in, or cash requirements for, our working capital needs, (iii) it does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on our debt, (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements, (v) it does not adjust for all non-cash income or expense items that are reflected in our statements of cash flows, and (vi) other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands of U.S. dollars, except share and per share data) As of March 31, 2025 As of December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,108 $ 825 Accounts receivable 628 1,716 Other current assets 834 1,593 Total current assets 2,656 4,134 Investments and advances to equity method investments 53,454 56,560 Property and equipment, net 110 24 Other non-current assets 500 513 Total assets $ 56,720 $ 61,231 Liabilities and stockholders' equity (deficit) Current liabilities: Accounts payable $ 9,519 $ 9,540 Accrued expenses and other current liabilities 32,195 25,870 Short term debt 8,471 8,471 Current portion of long-term debt 1,917 1,759 Total current liabilities 52,102 45,640 Long-term debt, net of current portion 30,565 30,977 Warrant liabilities — 4,711 Total liabilities 82,667 81,328 Commitments and contingencies – Note 10 Stockholders' equity (deficit) Deficit attributable to common stockholders (11,597 ) (8,965 ) Non-controlling interest (14,350 ) (11,132 ) Total deficit (25,947 ) (20,097 ) Total liabilities and equity $ 56,720 $ 61,231 Expand FALCON'S BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands of U.S. dollars, except share and per share data) Three months ended March 31, 2025 March 31, 2024 Revenue $ 1,708 $ 1,516 Operating expenses: Project design and build expense 106 — Selling, general and administrative expense 6,298 6,793 Transaction expenses 1,521 7 Credit loss expense — 12 Research and development expense 118 16 Depreciation and amortization expense 4 1 Total operating expenses 8,047 6,829 Loss from operations (6,339 ) (5,313 ) Share of (loss) gain from equity method investments (4,063 ) 1,154 Interest expense (1,332 ) (269 ) Interest income 3 3 Change in fair value of warrant liabilities 2,886 208 Change in fair value of earnout liabilities — 118,615 Foreign exchange transaction gain (loss) 752 (375 ) Net (loss) income before taxes $ (8,093 ) $ 114,023 Income tax benefit 1 1 Net (loss) income $ (8,092 ) $ 114,024 Net (loss) income attributable to noncontrolling interest (4,477 ) 96,855 Net (loss) income attributable to common stockholders (3,615 ) 17,169 Net (loss) income per share Net (loss) income per share, basic (0.10 ) 1.59 Net (loss) income per share, diluted (0.13 ) 1.27 Weighted average shares outstanding, basic 37,322,177 10,825,824 Weighted average shares outstanding, diluted 37,509,127 11,050,824 Expand FALCON'S BEYOND GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands of U.S. dollars) Three months ended March 31, 2025 March 31, 2024 Cash flows from operating activities Net (loss) income $ (8,092 ) $ 114,024 Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: Depreciation and amortization 4 1 Foreign exchange transaction (gain) loss (752 ) 375 Share of loss (gain) from equity method investments 4,063 (1,154 ) Change in deferred tax assets — — Credit loss expense - 12 Change in fair value of earnouts - (118,615 ) Change in fair value of warrants (2,886 ) (208 ) Share based compensation expense 531 346 Loss on sale of equipment — 2 Changes in assets and liabilities: Accounts receivable 1,098 (1,133 ) Contract assets (86 ) — Deferred transaction costs 588 — Other current assets 172 73 Other non-current assets 13 (58 ) Accounts payable (30 ) 2,669 Accrued expenses and other current liabilities 6,322 (102 ) Net cash provided by (used in) operating activities 945 (3,768 ) Cash flows from investing activities Purchase of property and equipment (92 ) (4 ) Proceeds from sale of equipment 2 2 Investments and advances to unconsolidated joint ventures — (2,094 ) Net cash used in investing activities (90 ) (2,096 ) Cash flows from financing activities Proceeds from debt – related party — 7,221 Proceeds from debt – third party — 1,250 Repayment of debt – related party — (1,182 ) Repayment of debt – third party (393 ) (427 ) Proceeds from related party credit facilities 1,248 4,650 Repayment of related party credit facilities (1,257 ) (5,392 ) Proceeds from exercised warrants — 111 Proceeds from RSUs issued to affiliates 198 — Settlement of RSUs (397 ) — Net cash (used in) provided by financing activities (601 ) 6,231 Net increase in cash and cash equivalents 254 367 Foreign exchange impact on cash 29 11 Cash and cash equivalents – beginning of period 825 672 Cash and cash equivalents at end of period $ 1,108 $ 1,050 Expand Reconciliation of Non-GAAP Financial Measure The following table sets forth reconciliations of net income (loss) under US GAAP to Adjusted EBITDA for the following periods: (Unaudited) Three months ended March 31, 2025 March 31, 2024 Net (loss) income $ (8,092 ) $ 114,024 Interest expense 1,332 269 Interest income (3 ) (3 ) Income tax benefit (1 ) (1 ) Depreciation and amortization expense 4 1 EBITDA (6,760 ) 114,290 Transaction expenses 1,521 7 Credit loss expense related to the closure of the Sierra Parima Katmandu Park — 12 Change in fair value of warrant liabilities (2,886 ) (208 ) Change in fair value of earnout liabilities — (118,615 ) Adjusted EBITDA $ (8,125 ) $ (4,514 ) Expand
Yahoo
31-01-2025
- Business
- Yahoo
Celebrating Falcon's Creative Group's 25 Years of Themed Entertainment Excellence
ORLANDO, Fla., January 31, 2025--(BUSINESS WIRE)--Falcon's Beyond Global, Inc. (Nasdaq: FBYD) ("Falcon's Beyond", "Falcon's" or the "Company"), a visionary leader at the forefront of innovation in themed entertainment experiences, is about to embark on a year-long celebration to recognize the 25th anniversary of its Falcon's Creative Group division. A homegrown Orlando company located in the theme park capital of the world, Falcon's Creative Group has been an incubator for innovation since its inception in 2000, when it was founded as Falcon's Treehouse by CEO Cecil D. Magpuri and his wife Marty. Drawing from Cecil's extensive creative experience in themed entertainment and attractions development with Universal Creative and Iwerks Entertainment, the business evolved into Falcon's Creative Group in 2014 to include design, digital media, and licensing divisions. Fast-forward to the present, Falcon's Creative Group has successfully designed and delivered over $120 billion worth of themed experiences around the world in 27 countries. "Back in the very early days of Falcon's, there were only three of us and I had faith we were going to grow and land a handful of projects that would allow us to add a couple of dozen people to the team and perhaps move into a slightly bigger office space," said Cecil D. Magpuri, CEO of Falcon's Beyond. "When I reflect on where we are now, I am incredibly proud of how far we've come and grateful to our Falcon's team, now more than 200 team members strong, who have had a hand in creating our ambitious projects." Known for its simply masterful work, Falcon's Creative Group is a creative design firm that specializes in master planning, attraction & experiential design, project management, development of content, interactives, software, and technologies. Dedicated to being a trusted and highly collaborative creative partner, Falcon's prides itself on delivering visually spectacular and iconic work that can be enjoyed in theme parks, zoos, aquariums, location-based entertainment venues, themed restaurants and shops, resorts and more. Over the past 25 years, Falcon's talented team of creative directors, writers, designers, illustrators, producers, and programmers have brought some of the most well-known intellectual properties in the world to life. Client and IP collaborators over the years include Walt Disney World, Universal Studios, SeaWorld Parks & Entertainment, Qiddiya Investment Company, Atlantis, Marvel, National Geographic, NASA, AT&T, Lego, Hard Rock, Formula 1, Lionsgate, Cartoon Network, Herschend Live, 343 Industries, and many more. "As the first employee at Falcon's, I've had the incredible honor of growing with this company from its very beginning," said Yvette Whittaker, Chief Corporate Officer of Falcon's Beyond. "From helping launch a startup to taking our company public, it's been an exhilarating journey and every challenge we've met along the way over the past 25 years has fueled my passion. I'm truly grateful to work alongside such a talented and dedicated team, whose commitment to excellence inspires me every day." Falcon's portfolio showcases spectacular range and a strong commitment to being one of the most innovative design studios in themed entertainment in the world. Some of these projects include: An extensive scope of work for the Qiddiya Investment Company focused on the master planning and designing of several first-of-its-kind immersive entertainment projects for Qiddiya City, the world's first city built for play near Riyadh, Saudi Arabia. One of these projects, Aquarabia, Saudi Arabia's first water theme park, is set to open later this year (date TBA). Heroes and Legends featuring the U.S. Astronaut Hall of Fame, an immersive storytelling experience at the Kennedy Space Center Visitor Complex that focuses on the pioneers of NASA space exploration. Numerous exhibitions for National Geographic, including the award-winning Becoming Jane: The Evolution of Dr. Jane Goodall. This travelling exhibition includes multimedia experiences that bring Jane's incredible journey to life. IMG Worlds of Adventure, the largest indoor theme park at the time of its opening in Dubai, where visitors can join superheroes like The Incredible Hulk, Iron Man, Thor, and others across several attractions. Falcon's created the master plan and attractions for the 1.5 million-square-foot entertainment destination, complete with Cartoon Network and dinosaur-themed zones, as well as themed restaurants and retail outlets. Dragon's Treasure, a trailblazing 360-degree dome theatre experience at City of Dreams resort and casino in Macau. Great work leads to industry accolades. Falcon's has been recognized with numerous awards from some of the most prestigious organizations in the entertainment industry, including the Visual Effects Society (VES), Themed Entertainment Association (TEA), and the International Association of Amusement Parks and Attractions (IAAPA). Falcon's Creative Group is in a time of unprecedented growth potential in the global theme park industry, which has inspired the Company to scale up its workforce to support creative projects worldwide. As part of this effort, Falcon's moved into a new company corporate headquarters in February 2024, and in 2023, expanded its offices with the addition of Falcon's Creative Philippines, located in the bustling capital city of Manila. The opening of the Philippines office marked a personal milestone for Magpuri, who shared at the time, "As someone of Filipino descent, it has been a lifelong dream of mine, as well as my father, to open a Falcon's office in the Philippines. We're excited to expand our company's footprint globally and build a team of passionate storytellers and creatives to support our portfolio of high-profile, international, entertainment projects." The future shines bright for Falcon's as the Company continues to elevate and build the future of the experience economy. To learn more about Falcon's Creative Group and look back on its quarter of a century of projects, visit 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 Creative Group ("FCG") creates master plans, designs attractions and experiential entertainment, and produces content, interactives and software. Falcon's Beyond Destinations ("FBD") develops a diverse range of entertainment experiences using both Falcon's Beyond owned and third party licensed intellectual property, spanning location-based entertainment, dining, and retail. Falcon's Beyond Brands ("FBB") endeavors to bring brands and intellectual property to life through animation, movies, licensing and merchandising, gaming as well as ride and technology sales. 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 Beyond is headquartered in Orlando, Florida. Learn more at Cautionary Note Regarding Forward-Looking Statements This press release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Falcon's Beyond's management and are not predictions of actual performance. Forward-looking statements are not intended to serve as, and must not be relied upon as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. These 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. Some of the factors that could cause actual events or results to differ include but are not limited to the following: (1) Falcon's Beyond's ability to sustain its growth, effectively manage its anticipated future growth, and implement its business strategies to achieve the results it anticipates, (2) impairments of Falcon's Beyond's intangible assets and equity method investment in its joint ventures, (3) Falcon's Beyond's ability to raise additional capital, (4) the closure of Katmandu Park DR and the repositioning and rebranding of the FBD business, (5) the success of growth plans in FCG, (6) customer concentration in FCG, (7) the risk that contractual restrictions relating to the Strategic Investment by Qiddiya Investment Company may affect Falcon's Beyond's ability to access the public markets and expand its business, (8) the risks of doing business internationally, including in the Kingdom of Saudi Arabia, (9) Falcon's Beyond's indebtedness and reliance on related parties with respect to such indebtedness, (10) Falcon's Beyond's dependence on strategic relationships with local partners in order to offer and market its products and services in certain jurisdictions, (11) Falcon's Beyond's reliance on senior management and key employees, and its ability to hire, train, retain, and motivate qualified personnel, (12) cybersecurity-related risks, (13) the ability to protect Falcon's Beyond's intellectual property, (14) the ability to remediate identified material weaknesses in Falcon's Beyond's 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) Falcon's Beyond's continued compliance with Nasdaq continued listing standards, (18) risks related to Falcon's Beyond's Up-C entity structure and the fact that Falcon's Beyond may be required to make substantial payments to certain unitholders under the Tax Receivable Agreement, and (19) 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. If any of these risks materialize or Falcon's Beyond's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. The risks and uncertainties above are not exhaustive, and there may be additional risks that Falcon's Beyond does not presently know or that Falcon's Beyond believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. 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. View source version on Contacts Falcon's BeyondMedia Relations:Kathleen Prihoda, Falcon's Beyondkprihoda@ Investor Relations:ir@ Sign in to access your portfolio
