Falcon's Beyond Global (FBYD) Registration Filing summary

Company overview and business model

• Operates at the intersection of content, technology, and experiences, creating immersive entertainment through theme parks, content development, and brand activations.

• Organized into three divisions: Falcon's Creative Group (FCG), Falcon's Beyond Destinations (FBD), and Falcon's Beyond Brands (FBB), each with distinct but complementary roles.

• FCG focuses on master planning, attraction design, and content production; FBD develops entertainment destinations via joint ventures; FBB monetizes original and third-party IP through media, licensing, and technology.

• Recent strategic shift to an asset-efficient model in FBD, leveraging partnerships to reduce capital intensity and focus on core competencies.

• Major projects include consultancy for Qiddiya in Saudi Arabia and a nonbinding LOI to operate Oceaneering Entertainment Systems.

Financial performance and metrics

• For the nine months ended September 30, 2024: revenue of $5.4M, net income of $161.4M, driven by a $172.3M gain from earnout liability revaluation.

• Adjusted EBITDA for the nine months ended September 30, 2024 was $(8.1)M, an improvement from $(22.6)M in the prior year period.

• Year ended December 31, 2023: revenue of $18.2M, net loss of $(430.9)M, including a $(345.4)M loss from earnout liability revaluation and $(52.4)M equity method loss (mainly Sierra Parima impairment).

• FCG deconsolidated in July 2023 after a $30M strategic investment by QIC; now accounted for as an equity method investment.

• Sierra Parima joint venture fully impaired, resulting in a $14.1M charge; PDP joint venture remains profitable.

Use of proceeds and capital allocation

• Net proceeds from the offering will be used for general corporate purposes, including working capital, operating expenses, capital expenditures, and debt repayment.

• May allocate a portion to acquisitions or strategic investments, though no current agreements exist.

• Ongoing capital needs include funding for joint ventures and commitments such as $2.4M to Karnival in Hong Kong.