GameStop Reports Fourth Quarter and Fiscal Year 2021 Results; Will Launch NFT Marketplace in Q2
Grapevine, TX –– GameStop Corp. released financial results for the fourth quarter and fiscal year ended January 29, 2022. The Company’s condensed and consolidated financial statements, including GAAP and non-GAAP results, are below. The Company’s Form 10-K and supplemental information can be found at http://investor.GameStop.com. The Company also announced it intends to launch its marketplace for non-fungible tokens (“NFTs”) by the end of the second quarter of fiscal year 2022.
FOURTH QUARTER OVERVIEW
- Generated net sales of $2.254 billion for the quarter, compared to $2.122 billion in the fourth quarter of 2020 and $2.194 billion in the fourth quarter of 2019.
- Established new and expanded brand relationships, including with PC gaming companies such as Alienware, Corsair and Lenovo, that contributed to sales growth in the quarter.
- Grew PowerUp Rewards Pro members by 32% on a year-over-year basis, taking total membership to approximately 5.8 million.
- Entered into a partnership with Immutable X that is intended to support the development of GameStop’s NFT marketplace and provide the Company with up to $150 million in IMX tokens upon achievement of certain milestones.
- Launched a redesigned app, which includes an enhanced user interface, improved scalability for a larger product catalog and more functionality to support exclusive offers and promotions.
- Hired dozens of additional individuals with experience in areas such as blockchain gaming, ecommerce and technology, product refurbishment and operations.
FULL YEAR OVERVIEW
- Generated net sales of $6.011 billion for the fiscal year, compared to $5.090 billion for fiscal year 2020.
- Expanded the product catalog to include a broader set of consumer electronics, PC gaming equipment and refurbished hardware.
- Made significant and long-term investments in the Company’s fulfillment network, systems and teams.
- Established new offices in Seattle, Washington and Boston, Massachusetts, which are technology hubs with established talent markets.
- Raised more than $1.67 billion in capital and eliminated all of the Company’s long-term debt, other than a $44.6 million low-interest, unsecured term loan associated with the French government’s response to COVID-19.
- Ended the fiscal year with $1.271 billion in cash and cash equivalents and $915 million in inventory, compared to $635 million in cash and $602.5 million in inventory at the end of fiscal year 2020. Increased investments in inventory reflect the Company’s focus on meeting heightened demand and mitigating supply chain headwinds.
|
GameStop Corp. |
||||||||
|
|
|
13 weeks ended |
|
13 weeks ended |
||||
|
Net sales |
|
$ |
2,253.9 |
|
|
$ |
2,122.1 |
|
|
Cost of sales |
|
|
1,875.7 |
|
|
|
1,673.5 |
|
|
Gross profit |
|
|
378.2 |
|
|
|
448.6 |
|
|
Selling, general and administrative expenses |
|
|
538.9 |
|
|
|
419.1 |
|
|
Asset impairments |
|
|
6.1 |
|
|
|
10.7 |
|
|
Operating earnings |
|
|
(166.8 |
) |
|
|
18.8 |
|
|
Interest expense, net |
|
|
0.9 |
|
|
|
8.2 |
|
|
(Loss) earnings from continuing operations before income taxes |
|
|
(167.7 |
) |
|
|
10.6 |
|
|
Income tax benefit |
|
|
(20.2 |
) |
|
|
(69.7 |
) |
|
Net (loss) income from continuing operations |
|
|
(147.5 |
) |
|
|
80.3 |
|
|
Income from discontinued operations, net of tax |
|
|
— |
|
|
|
0.2 |
|
|
Net (loss) income |
|
$ |
(147.5 |
) |
|
$ |
80.5 |
|
|
|
|
|
|
|
||||
|
Basic (loss) earnings per share: |
|
|
|
|
||||
|
Continuing operations |
|
$ |
(1.94 |
) |
|
$ |
1.23 |
|
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
Basic (loss) earnings per share |
|
$ |
(1.94 |
) |
|
$ |
1.23 |
|
|
|
|
|
|
|
||||
|
Diluted (loss) earnings per share: |
|
|
|
|
||||
|
Continuing operations |
|
$ |
(1.94 |
) |
|
$ |
1.19 |
|
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
Diluted (loss) earnings per share |
|
$ |
(1.94 |
) |
|
$ |
1.19 |
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding: |
|
|
|
|
||||
|
Basic |
|
|
75.9 |
|
|
|
65.2 |
|
|
Diluted |
|
|
75.9 |
|
|
|
67.8 |
|
|
|
|
|
|
|
||||
|
Percentage of Net Sales: |
|
|
|
|
||||
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
Cost of sales |
|
|
83.2 |
% |
|
|
78.9 |
% |
|
Gross profit |
|
|
16.8 |
% |
|
|
21.1 |
% |
|
Selling, general and administrative expenses |
|
|
23.9 |
% |
|
|
19.7 |
% |
|
Asset impairments |
|
|
0.3 |
% |
|
|
0.5 |
% |
|
Operating earnings |
|
|
(7.4 |
) % |
|
|
0.9 |
% |
|
Interest expense, net |
|
|
— |
% |
|
|
0.4 |
% |
|
(Loss) earnings from continuing operations before income taxes |
|
|
(7.4 |
) % |
|
|
0.5 |
% |
|
Income tax benefit |
|
|
(0.9 |
) % |
|
|
(3.3 |
) % |
|
Net (loss) income from continuing operations |
|
|
(6.5 |
) % |
|
|
3.8 |
% |
|
Income from discontinued operations, net of tax |
|
|
— |
% |
|
|
— |
% |
|
Net (loss) income |
|
|
(6.5 |
) % |
|
|
3.8 |
% |
|
GameStop Corp. |
||||||
|
Consolidated Statements of Operations |
||||||
|
(in millions, except per share data) |
||||||
|
(unaudited) |
||||||
|
|
|
52 weeks ended |
|
52 weeks ended |
||
|
Net sales |
|
$ |
6,010.7 |
|
$ |
5,089.8 |
|
Cost of sales |
|
|
4,662.9 |
|
|
3,830.3 |
|
Gross profit |
|
|
1,347.8 |
|
|
1,259.5 |
|
Selling, general and administrative expenses |
|
|
1,709.6 |
|
|
1,514.2 |
|
Asset impairments |
|
|
6.7 |
|
|
15.5 |
|
Gain on sale of assets |
|
|
— |
|
|
(32.4) |
|
Operating loss |
|
|
(368.5) |
|
|
(237.8) |
|
Interest expense, net |
|
|
26.9 |
|
|
32.1 |
|
Loss from continuing operations before income taxes |
|
|
(395.4) |
|
|
(269.9) |
|
Income tax benefit |
|
|
(14.1) |
|
|
(55.3) |
|
Net loss from continuing operations |
|
|
(381.3) |
|
|
(214.6) |
|
Loss from discontinued operations, net of tax |
|
|
— |
|
|
(0.7) |
|
Net loss |
|
$ |
(381.3) |
|
$ |
(215.3) |
|
|
|
|
|
|
||
|
Basic loss per share: |
|
|
|
|
||
|
Continuing operations |
|
$ |
(5.25) |
|
$ |
(3.30) |
|
Discontinued operations |
|
|
— |
|
|
(0.01) |
|
Basic loss per share: |
|
$ |
(5.25) |
|
$ |
(3.31) |
|
|
|
|
|
|
||
|
Diluted (loss) per share: |
|
|
|
|
||
|
Continuing operations |
|
$ |
(5.25) |
|
$ |
(3.30) |
|
Discontinued operations |
|
|
— |
|
|
(0.01) |
|
Diluted loss per share |
|
$ |
(5.25) |
|
$ |
(3.31) |
|
|
|
|
|
|
||
|
Weighted average common shares outstanding: |
|
|
|
|
||
|
Basic |
|
|
72.6 |
|
|
65.0 |
|
Diluted |
|
|
72.6 |
|
|
65.0 |
|
|
|
|
|
|
||
|
Percentage of Net Sales: |
|
|
|
|
||
|
Net sales |
|
|
100.0 % |
|
|
100.0 % |
|
Cost of sales |
|
|
77.6 % |
|
|
75.3 % |
|
Gross profit |
|
|
22.4 % |
|
|
24.7 % |
|
Selling, general and administrative expenses |
|
|
28.4 % |
|
|
29.7 % |
|
Asset impairments |
|
|
0.1 % |
|
|
0.3 % |
|
Gain on sale of assets |
|
|
— % |
|
|
(0.6) % |
|
Operating loss |
|
|
(6.1) % |
|
|
(4.7) % |
|
Interest expense, net |
|
|
0.4 % |
|
|
0.6 % |
|
Loss from continuing operations before income taxes |
|
|
(6.6) % |
|
|
(5.3) % |
|
Income tax benefit |
|
|
(0.2) % |
|
|
(1.1) % |
|
Net loss from continuing operations |
|
|
(6.3) % |
|
|
(4.2) % |
|
Loss from discontinued operations, net of tax |
|
|
— % |
|
|
— % |
|
Net loss |
|
|
(6.3) % |
|
|
(4.2) % |
|
GameStop Corp. |
||||||
|
Condensed Consolidated Balance Sheets |
||||||
|
(in millions) |
||||||
|
(unaudited) |
||||||
|
|
|
January 29, |
|
January 30, |
||
|
Current assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,271.4 |
|
$ |
508.5 |
|
Restricted cash |
|
|
33.1 |
|
|
110.0 |
|
Receivables, net |
|
|
141.1 |
|
|
105.3 |
|
Merchandise inventories |
|
|
915.0 |
|
|
602.5 |
|
Prepaid expenses and other current assets |
|
|
238.2 |
|
|
224.9 |
|
Total current assets |
|
|
2,598.8 |
|
|
1,551.2 |
|
Property and equipment, net |
|
|
163.6 |
|
|
201.2 |
|
Operating lease right-of-use assets |
|
|
586.6 |
|
|
662.1 |
|
Deferred income taxes |
|
|
16.3 |
|
|
— |
|
Long-term restricted cash |
|
|
15.4 |
|
|
16.5 |
|
Other noncurrent assets |
|
|
118.6 |
|
|
41.6 |
|
Total assets |
|
$ |
3,499.3 |
|
$ |
2,472.6 |
|
|
||||||
|
Current liabilities: |
|
|
|
|
||
|
Accounts payable |
|
$ |
471.0 |
|
$ |
341.8 |
|
Accrued liabilities and other current liabilities |
|
|
668.9 |
|
|
626.8 |
|
Current portion of operating lease liabilities |
|
|
210.7 |
|
|
227.4 |
|
Short-term debt, including current portion of long-term debt, net |
|
|
4.1 |
|
|
121.7 |
|
Borrowings under revolving line of credit |
|
|
— |
|
|
25.0 |
|
Total current liabilities |
|
|
1,354.7 |
|
|
1,342.7 |
|
Long-term debt, net |
|
|
40.5 |
|
|
216.0 |
|
Operating lease liabilities |
|
|
393.7 |
|
|
456.7 |
|
Other long-term liabilities |
|
|
107.9 |
|
|
20.5 |
|
Total liabilities |
|
|
1,896.8 |
|
|
2,035.9 |
|
Stockholders’ equity |
|
|
1,602.5 |
|
|
436.7 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,499.3 |
|
$ |
2,472.6 |
|
GameStop Corp. |
||||||
|
Consolidated Statements of Cash Flows |
||||||
|
(in millions) |
||||||
|
(unaudited) |
||||||
|
|
|
13 weeks ended |
|
13 weeks ended |
||
|
Cash flows from operating activities: |
|
|
|
|
||
|
Net (loss) income |
|
$ |
(147.5) |
|
$ |
80.5 |
|
Adjustments to reconcile net loss to net cash flows from operating activities: |
|
|
|
|
||
|
Depreciation and amortization |
|
|
24.0 |
|
|
19.6 |
|
Asset impairments |
|
|
6.1 |
|
|
10.7 |
|
Stock-based compensation expenses |
|
|
9.8 |
|
|
1.8 |
|
Deferred income taxes |
|
|
(16.3) |
|
|
34.9 |
|
Loss on disposal of property and equipment, net |
|
|
3.5 |
|
|
3.3 |
|
Other |
|
|
(2.1) |
|
|
(1.7) |
|
Changes in operating assets and liabilities: |
|
|
|
|
||
|
Receivables, net |
|
|
(59.4) |
|
|
(26.0) |
|
Merchandise inventories |
|
|
215.6 |
|
|
270.8 |
|
Prepaid expenses and other current assets |
|
|
(1.4) |
|
|
11.3 |
|
Prepaid income taxes and income taxes payable |
|
|
(8.8) |
|
|
(98.7) |
|
Accounts payable and accrued liabilities |
|
|
(152.5) |
|
|
(157.5) |
|
Operating lease right-of-use assets and liabilities |
|
|
17.2 |
|
|
17.9 |
|
Changes in other long-term liabilities |
|
|
1.5 |
|
|
(2.1) |
|
Net cash flows (used in) provided by operating activities |
|
|
(110.3) |
|
|
164.8 |
|
Cash flows from investing activities: |
|
|
|
|
||
|
Capital expenditures |
|
|
(21.3) |
|
|
(27.4) |
|
Other |
|
|
(2.3) |
|
|
1.0 |
|
Net cash flows used in investing activities |
|
|
(23.6) |
|
|
(26.4) |
|
Cash flows from financing activities: |
|
|
|
|
||
|
Payments of financing costs |
|
|
(3.0) |
|
|
— |
|
Net repayments of senior notes |
|
|
— |
|
|
(125.0) |
|
Issuance of common stock, net of share repurchases for withholding taxes |
|
|
(0.2) |
|
|
4.1 |
|
Net cash flows used in financing activities |
|
|
(3.2) |
|
|
(120.9) |
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
|
(11.1) |
|
|
14.9 |
|
(Decrease) increase in cash, cash equivalents and restricted cash |
|
|
(148.2) |
|
|
32.4 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,468.1 |
|
|
602.6 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,319.9 |
|
$ |
635.0 |
|
|
|
|
|
|
||
|
GameStop Corp. |
||||||
|
Consolidated Statements of Cash Flows |
||||||
|
(in millions) |
||||||
|
(unaudited) |
||||||
|
|
|
52 weeks ended |
|
52 weeks ended |
||
|
Cash flows from operating activities: |
|
|
|
|
||
|
Net loss |
|
$ |
(381.3) |
|
$ |
(215.3) |
|
Adjustments to reconcile net loss to net cash flows from operating activities: |
|
|
|
|
||
|
Depreciation and amortization |
|
|
77.2 |
|
|
80.7 |
|
Loss (gain) on retirement of debt |
|
|
18.2 |
|
|
(1.5) |
|
Asset impairments |
|
|
6.7 |
|
|
15.5 |
|
Stock-based compensation expenses |
|
|
30.5 |
|
|
7.9 |
|
Deferred income taxes |
|
|
(16.3) |
|
|
80.3 |
|
Loss (gain) on disposal of property and equipment, net |
|
|
5.4 |
|
|
(27.3) |
|
Other |
|
|
(3.5) |
|
|
2.4 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||
|
Receivables, net |
|
|
(38.4) |
|
|
39.8 |
|
Merchandise inventories |
|
|
(329.6) |
|
|
282.4 |
|
Prepaid expenses and other current assets |
|
|
(6.5) |
|
|
8.4 |
|
Prepaid income taxes and income taxes payable |
|
|
(21.7) |
|
|
(87.0) |
|
Accounts payable and accrued liabilities |
|
|
224.4 |
|
|
(78.6) |
|
Operating lease right-of-use assets and liabilities |
|
|
(0.9) |
|
|
19.0 |
|
Changes in other long-term liabilities |
|
|
1.5 |
|
|
(3.0) |
|
Net cash flows (used in) provided by operating activities |
|
|
(434.3) |
|
|
123.7 |
|
Cash flows from investing activities: |
|
|
|
|
||
|
Capital expenditures |
|
|
(62.0) |
|
|
(60.0) |
|
Proceeds from sale of property and equipment |
|
|
— |
|
|
95.5 |
|
Other |
|
|
(2.8) |
|
|
1.4 |
|
Net cash flows (used in) provided by investing activities |
|
|
(64.8) |
|
|
36.9 |
|
Cash flows from financing activities: |
|
|
|
|
||
|
Proceeds from issuance of common stock, net of costs |
|
|
1,672.8 |
|
|
— |
|
Net repayments of senior notes |
|
|
(307.4) |
|
|
(130.3) |
|
Proceeds from French term loans |
|
|
— |
|
|
47.1 |
|
Borrowings from the revolver |
|
|
— |
|
|
150.0 |
|
Repayments of revolver borrowings |
|
|
(25.0) |
|
|
(125.0) |
|
Settlement of stock awards |
|
|
(136.8) |
|
|
3.1 |
|
Payments of financing costs |
|
|
(3.0) |
|
|
— |
|
Other |
|
|
— |
|
|
(0.3) |
|
Net cash flows provided by (used in) financing activities |
|
|
1,200.6 |
|
|
(55.4) |
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
|
(16.6) |
|
|
16.3 |
|
Increase in cash, cash equivalents and restricted cash |
|
|
684.9 |
|
|
121.5 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
635.0 |
|
|
513.5 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,319.9 |
|
$ |
635.0 |
|
GameStop Corp. |
||||||||||
|
Schedule I |
||||||||||
|
Sales Mix |
||||||||||
|
(in millions) |
||||||||||
|
(unaudited) |
||||||||||
|
|
|
13 weeks ended |
|
13 weeks ended |
||||||
|
Net Sales: |
|
Net |
|
Percent |
|
Net |
|
Percent |
||
|
|
|
|
|
|
|
|
|
|
||
|
Hardware and accessories(1) |
|
$ |
1,188.7 |
|
52.7 % |
|
$ |
1,162.7 |
|
54.8 % |
|
Software(2) |
|
|
785.9 |
|
34.9 % |
|
|
731.2 |
|
34.4 % |
|
Collectibles |
|
|
279.3 |
|
12.4 % |
|
|
228.2 |
|
10.8 % |
|
Total |
|
$ |
2,253.9 |
|
100.0 % |
|
$ |
2,122.1 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
52 weeks ended January 29, 2022 |
|
52 weeks ended January 30, 2021 |
||||||
|
Net Sales: |
|
Net |
|
Percent |
|
Net |
|
Percent |
||
|
|
|
|
|
|
|
|
|
|
||
|
Hardware and accessories(1) |
|
$ |
3,171.7 |
|
52.8 % |
|
$ |
2,530.8 |
|
49.7 % |
|
Software(2) |
|
|
2,014.8 |
|
33.5 % |
|
|
1,979.1 |
|
38.9 % |
|
Collectibles |
|
|
824.2 |
|
13.7 % |
|
|
579.9 |
|
11.4 % |
|
Total |
|
$ |
6,010.7 |
|
100.0 % |
|
$ |
5,089.8 |
|
100.0 % |
|
|
|
|
|
|
|
|
|
|
||
|
(1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. (2) Includes sales of new and pre-owned video game software, digital software and PC entertainment software. |
||||||||||
GameStop Corp.
Schedule II
(in millions)
(unaudited)
Non-GAAP results
The following table reconciles the Company’s selling, general and administrative expenses (“SG&A”), operating earnings, net income (loss) and earnings (loss) per share as presented in its consolidated statements of operations and prepared in accordance with United States generally accepted accounting principles (“GAAP”) to its adjusted SG&A, adjusted operating income (loss), adjusted net income (loss) and adjusted diluted earnings per share. The diluted weighted-average shares outstanding used to calculate adjusted earnings per share may differ from GAAP weighted-average shares outstanding. Under GAAP, basic and diluted weighted-average shares outstanding are the same in periods where there is a net loss. The tax adjustments below for the 13 and 52 weeks ended January 29, 2022 respectively, include provisions for the tax effects of non-GAAP adjustments. The reconciliations below are from continuing operations only.
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted SG&A |
|
|
|
|
|
|
|
|
||||
|
SG&A |
|
$ |
538.9 |
|
$ |
419.1 |
|
$ |
1,709.6 |
|
$ |
1,514.2 |
|
Transformation costs |
|
|
— |
|
|
0.4 |
|
|
(6.5) |
|
|
(1.6) |
|
Significant transactions (1) |
|
|
— |
|
|
— |
|
|
(0.4) |
|
|
(7.5) |
|
Severance, divestitures, and other (2) |
|
|
— |
|
|
0.2 |
|
|
(18.3) |
|
|
(7.6) |
|
Adjusted SG&A |
|
$ |
538.9 |
|
$ |
419.7 |
|
$ |
1,684.4 |
|
$ |
1,497.5 |
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Includes transaction costs associated with the sale of an aggregate of 8,500,000 shares of our common stock under our at-the-market equity offering program during the 52 weeks ended January 29, 2022 (the “ATM Transactions”). Prior year includes transaction costs associated with our debt exchange. (2) Severance includes cash and stock based compensation expenses for key personnel that have separated from the Company. |
||||||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||
|
Adjusted Operating Income (Loss) |
|
|
|
|
|
|
|
|
||||
|
Operating earnings (loss) |
|
$ |
(166.8) |
|
$ |
18.8 |
|
$ |
(368.5) |
|
$ |
(237.8) |
|
Transformation costs |
|
|
— |
|
|
(0.4) |
|
|
6.5 |
|
|
1.6 |
|
Asset impairments |
|
|
6.1 |
|
|
10.7 |
|
|
6.7 |
|
|
15.5 |
|
Significant transactions (1) |
|
|
— |
|
|
— |
|
|
0.4 |
|
|
(24.9) |
|
Severance, divestitures, and other (2) |
|
|
— |
|
|
(0.2) |
|
|
18.3 |
|
|
7.6 |
|
Adjusted operating income |
|
$ |
(160.7) |
|
$ |
28.9 |
|
$ |
(336.6) |
|
$ |
(238.0) |
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Includes transaction costs associated with our ATM transactions paid in the 52 weeks ended January 29, 2022. Prior year includes the gain on sale of assets relating to sale-leaseback transactions and transaction costs associated with our debt exchange. (2) Severance includes cash and stock based compensation expenses for key personnel that have separated from the Company. |
||||||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||
|
Adjusted Net Income (Loss) |
|
|
|
|
|
|
|
|
||||
|
Net income (loss) |
|
$ |
(147.5) |
|
$ |
80.5 |
|
$ |
(381.3) |
|
$ |
(215.3) |
|
(Income) loss from discontinued operations |
|
|
— |
|
|
(0.2) |
|
|
— |
|
|
0.7 |
|
Net income (loss) from continuing operations |
|
|
(147.5) |
|
|
80.3 |
|
|
(381.3) |
|
|
(214.6) |
|
Transformation costs |
|
|
— |
|
|
(0.4) |
|
|
6.5 |
|
|
1.6 |
|
Asset impairments |
|
|
6.1 |
|
|
10.7 |
|
|
6.7 |
|
|
15.5 |
|
Significant transactions (1) |
|
|
— |
|
|
— |
|
|
18.6 |
|
|
(24.9) |
|
Severance, divestitures, and other (2) |
|
|
— |
|
|
(0.2) |
|
|
18.3 |
|
|
7.6 |
|
Tax effect of non-GAAP adjustments |
|
|
— |
|
|
0.3 |
|
|
— |
|
|
23.0 |
|
Adjusted net (loss) income |
|
$ |
(141.4) |
|
$ |
90.7 |
|
$ |
(331.2) |
|
$ |
(191.8) |
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted Earnings (Loss) Per Share |
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
(1.86) |
|
$ |
1.39 |
|
$ |
(4.56) |
|
$ |
(2.95) |
|
Diluted |
|
$ |
(1.86) |
|
$ |
1.34 |
|
$ |
(4.56) |
|
$ |
(2.95) |
|
|
|
|
|
|
|
|
|
|
||||
|
Number of shares used in adjusted calculation |
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
75.9 |
|
|
65.2 |
|
|
72.6 |
|
|
65.0 |
|
Diluted |
|
|
75.9 |
|
|
67.8 |
|
|
72.6 |
|
|
65.0 |
|
|
||||||||||||
|
(1) Includes transaction costs associated with our ATM transactions and first quarter make-whole premium and accelerated amortization of the deferred financing costs associated with the voluntary early redemption of the 2023 Senior Notes paid in the 52 weeks ended January 29, 2022. Prior year includes the gain on sale of assets relating to sale lease-back transactions, a discount on open market purchases of the 2021 Senior Notes, gain on the early retirement of debt for the 39 weeks ended January 30, 2021. (2) Severance includes cash and stock-based compensation expenses for key personnel that have separated from the Company. |
||||||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||
|
|
|
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||
|
Reconciliation of Adjusted EBITDA to Net Income (Loss) |
|
|
|
|
|
|
|
|
||||
|
Net (loss) income |
|
$ |
(147.5) |
|
$ |
80.5 |
|
$ |
(381.3) |
|
$ |
(215.3) |
|
(Loss) income from discontinued operations, net of tax |
|
|
— |
|
|
(0.2) |
|
|
— |
|
|
0.7 |
|
(Loss) income from continuing operations |
|
$ |
(147.5) |
|
$ |
80.3 |
|
$ |
(381.3) |
|
$ |
(214.6) |
|
Interest expense, net |
|
|
0.9 |
|
|
8.2 |
|
|
26.9 |
|
|
32.1 |
|
Depreciation and amortization |
|
|
24.0 |
|
|
19.6 |
|
|
77.2 |
|
|
80.7 |
|
Income tax benefit |
|
|
(20.2) |
|
|
(69.7) |
|
|
(14.1) |
|
|
(55.3) |
|
EBITDA |
|
$ |
(142.8) |
|
$ |
38.4 |
|
$ |
(291.3) |
|
$ |
(157.1) |
|
Stock-based compensation expenses |
|
|
9.8 |
|
|
1.8 |
|
|
22.5 |
|
|
7.9 |
|
Transformation costs |
|
|
— |
|
|
(0.4) |
|
|
6.5 |
|
|
1.6 |
|
Asset impairments |
|
|
6.1 |
|
|
10.7 |
|
|
6.7 |
|
|
15.5 |
|
Significant transactions(1) |
|
|
— |
|
|
— |
|
|
0.4 |
|
|
(24.9) |
|
Severance, divestitures, and other(2) |
|
|
— |
|
|
(0.2) |
|
|
18.3 |
|
|
7.6 |
|
Adjusted EBITDA |
|
$ |
(126.9) |
|
$ |
50.3 |
|
$ |
(236.9) |
|
$ |
(149.4) |
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Includes transaction costs associated with the ATM transactions paid in the 52 weeks ended January 29,2022. Prior year includes the gain on sale of assets relating to sale-leaseback transactions and transaction costs associated with our debt exchange. (2) Severance includes cash and stock based compensation for key personnel that have separated from the Company. |
||||||||||||
GameStop Corp.
Schedule III
(in millions)
(unaudited)
Non-GAAP results
The following table reconciles the Company’s cash flows provided by operating activities as presented in its unaudited Consolidated Statements of Cash Flows and prepared in accordance with GAAP to its free cash flow and adjusted free cash flow.
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||
|
|
January 29, 2022 |
|
January 30, 2021 |
|
January 29, 2022 |
|
January 30, 2021 |
||||
|
Net cash flows (used in) provided by operating activities |
$ |
(110.3) |
|
$ |
164.8 |
|
$ |
(434.3) |
|
$ |
123.7 |
|
Capital expenditures |
|
(21.3) |
|
|
(27.4) |
|
|
(62.0) |
|
|
(60.0) |
|
Free cash flow |
$ |
(131.6) |
|
$ |
137.4 |
|
$ |
(496.3) |
|
$ |
63.7 |
Non-GAAP Measures and Other Metrics
Adjusted EBITDA, adjusted selling, general and administrative expense, adjusted operating income and adjusted net income are supplemental financial measures of the Company’s performance that are not required by, or presented in accordance with, GAAP. We believe that the presentation of these non-GAAP financial measures provides useful information to investors in assessing our financial condition and results of operations.
We define Adjusted EBITDA as net income (loss) before income taxes, plus interest expense, net and depreciation and amortization, excluding stock-based compensation expenses, transformation costs, business divestitures, asset impairments, severance and other non-cash charges. Net income (loss) is the GAAP financial measure most directly comparable to Adjusted EBITDA. Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measure. Furthermore, non-GAAP financial measures have limitations as an analytical tool because they exclude some but not all items that affect the most directly comparable GAAP financial measures. Some of these limitations include:
- certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure;
- Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- 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; and
- our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
We compensate for the limitations of adjusted EBITDA, adjusted selling, general and administrative expense, adjusted operating income and adjusted net income as analytical tools by reviewing the comparable GAAP financial measure, understanding the differences between the GAAP and non-GAAP financial measures and incorporating these data points into our decision-making process. Adjusted EBITDA, adjusted selling, general and administrative expense, adjusted operating income and adjusted net income is provided in addition to, and not as an alternative to, the Company’s financial results prepared in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because adjusted EBITDA, adjusted selling, general and administrative expense, adjusted operating income and adjusted net income may be defined and determined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
