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, reported revenue of $5.4M, down from $16.1M in the prior year period, primarily due to FCG deconsolidation.

• Net income for the nine months ended September 30, 2024, was $161.4M, driven by a $172.3M gain from the change in fair value of earnout liabilities.

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

• As of September 30, 2024, cash and cash equivalents were $0.8M, with total indebtedness of $35.9M and a working capital deficiency of $27.0M.

• FCG deconsolidated in July 2023 after a $30M strategic investment by Qiddiya Investment Company, now accounted for as an equity method investment.

• Significant impairment charges: $14.1M for Sierra Parima investment and $2.4M for ride media content asset in 2023.

Use of proceeds and capital allocation

• Net proceeds of approximately $93.0M (or $107.1M if underwriters' option exercised) expected from the offering.

• Proceeds intended for general corporate purposes, including working capital, operating expenses, capital expenditures, debt repayment, technology and IP investment, and expansion of entertainment destinations.

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