GameStop Reports Fourth Quarter and Fiscal Year 2022 Results
Grapevine, TX –– GameStop Corp. released financial results for the fourth quarter and fiscal year ended January 28, 2023. 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 https://investor.gamestop.com/.
FOURTH QUARTER OVERVIEW
- Net sales were $2.226 billion, compared to $2.254 billion in the prior year’s fourth quarter.
- Selling, general and administrative (“SG&A”) expenses were $453.4 million, or 20.4% of sales, compared to $538.9 million, or 23.9% of sales, in the prior year’s fourth quarter.
- Net income was $48.2 million, compared to a net loss of $147.5 million for the prior year’s fourth quarter.
- Inventory was $682.9 million at the close of the period, compared to $915.0 million at the close of the prior year’s fourth quarter, reflecting the Company’s ongoing focus on maintaining a healthy inventory position.
- Cash, cash equivalents and marketable securities were $1.391 billion at the close of the quarter.
- Long-term debt remains limited to a low-interest, unsecured term loan associated with the French government’s response to COVID-19.
FULL YEAR OVERVIEW
- Generated net sales of $5.927 billion for the fiscal year, compared to $6.011 billion for fiscal year 2021.
- Increased full-year sales in the collectibles category, which is an area in which the Company continues prioritizing long-term growth.
- Completed the majority of implementations and upgrades related to the Company’s infrastructure, systems, shipping capabilities, and online and mobile platforms.
- Initiated cost cutting initiatives and headcount reductions over the course of the year to increase operational efficiency.
- Established an equity incentive program for store leaders and tenured associates to increase their compensation and strengthen alignment of interests with fellow stockholders.
- Set a go-forward strategic direction focused on efficiency, profitability and pragmatic growth.
CONFERENCE CALL INFORMATION
The Company will host an investor conference call today, March 21, 2023, at 5:00 p.m. ET to review its financial results. The phone number for the investor conference call is 1-877-407-6169 and the confirmation code is 13736983. This call, along with supplemental information, can also be accessed at https://investor.gamestop.com/. A recording of the conference call will be made available on the Company’s investor relations website for two months.
NON-GAAP MEASURES AND OTHER METRICS
As a supplement to the Company’s financial results presented in accordance with U.S. generally accepted accounting principles (GAAP), GameStop may use certain non-GAAP measures, such as adjusted SG&A expenses, adjusted operating income (loss), adjusted net income (loss), adjusted earnings (loss) per share, Adjusted EBITDA and free cash flow. The Company believes these non-GAAP financial measures provide useful information to investors in evaluating the Company’s core operating performance. Adjusted SG&A, adjusted operating income (loss), adjusted net income (loss), adjusted earnings (loss) per share and Adjusted EBITDA exclude the effect of items such as transformation costs, asset impairments, store closure costs, severance, as well as divestiture costs. Results reported as constant currency exclude the impact of fluctuations in foreign currency exchange rates by converting the Company’s local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company’s current period reported results. The Company’s definition and calculation of non-GAAP financial measures may differ from that of other companies. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance.
|
GameStop Corp. |
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Consolidated Statements of Operations |
||||||||
|
(in millions, except per share data) |
||||||||
|
(unaudited) |
||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
||||
|
Net sales |
|
$ |
2,226.4 |
|
|
$ |
2,253.9 |
|
|
Cost of sales |
|
|
1,726.6 |
|
|
|
1,875.7 |
|
|
Gross profit |
|
|
499.8 |
|
|
|
378.2 |
|
|
Selling, general and administrative expenses |
|
|
453.4 |
|
|
|
538.9 |
|
|
Asset impairments |
|
|
0.2 |
|
|
|
6.1 |
|
|
Operating earnings (loss) |
|
|
46.2 |
|
|
|
(166.8 |
) |
|
Interest (income) expense and other, net |
|
|
(6.2 |
) |
|
|
0.9 |
|
|
Earnings (loss) before income taxes |
|
|
52.4 |
|
|
|
(167.7 |
) |
|
Income tax expense (benefit) |
|
|
4.2 |
|
|
|
(20.2 |
) |
|
Net income (loss) |
|
$ |
48.2 |
|
|
$ |
(147.5 |
) |
|
|
|
|
|
|
||||
|
Earnings (loss) per share: |
|
|
|
|
||||
|
Basic earnings (loss) per share |
|
$ |
0.16 |
|
|
$ |
(0.49 |
) |
|
Diluted earnings (loss) per share |
|
|
0.16 |
|
|
|
(0.49 |
) |
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding: |
|
|
|
|
||||
|
Basic |
|
|
304.3 |
|
|
|
303.6 |
|
|
Diluted |
|
|
304.5 |
|
|
|
303.6 |
|
|
|
|
|
|
|
||||
|
Percentage of Net Sales: |
|
|
|
|
||||
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
Cost of sales |
|
|
77.6 |
% |
|
|
83.2 |
% |
|
Gross profit |
|
|
22.5 |
% |
|
|
16.8 |
% |
|
Selling, general and administrative expenses |
|
|
20.4 |
% |
|
|
23.9 |
% |
|
Asset impairments |
|
|
— |
% |
|
|
0.3 |
% |
|
Operating earnings (loss) |
|
|
2.1 |
% |
|
|
(7.4 |
)% |
|
Interest (income) expense and other, net |
|
|
(0.3 |
)% |
|
|
— |
% |
|
Earnings (loss) before income taxes |
|
|
2.4 |
% |
|
|
(7.4 |
)% |
|
Income tax expense (benefit) |
|
|
0.2 |
% |
|
|
(0.9 |
)% |
|
Net income (loss) |
|
|
2.2 |
% |
|
|
(6.5 |
)% |
|
GameStop Corp. |
||||||||
|
Consolidated Statements of Operations |
||||||||
|
(in millions, except per share data) |
||||||||
|
(unaudited) |
||||||||
|
|
|
52 weeks ended |
|
52 weeks ended |
||||
|
Net sales |
|
$ |
5,927.2 |
|
|
$ |
6,010.7 |
|
|
Cost of sales |
|
|
4,555.1 |
|
|
|
4,662.9 |
|
|
Gross profit |
|
|
1,372.1 |
|
|
|
1,347.8 |
|
|
Selling, general and administrative expenses |
|
|
1,681.0 |
|
|
|
1,709.6 |
|
|
Asset impairments |
|
|
2.7 |
|
|
|
6.7 |
|
|
Operating loss |
|
|
(311.6 |
) |
|
|
(368.5 |
) |
|
Interest (income) expense and other, net |
|
|
(9.5 |
) |
|
|
26.9 |
|
|
Loss before income taxes |
|
|
(302.1 |
) |
|
|
(395.4 |
) |
|
Income tax expense (benefit) |
|
|
11.0 |
|
|
|
(14.1 |
) |
|
Net loss |
|
$ |
(313.1 |
) |
|
$ |
(381.3 |
) |
|
|
|
|
|
|
||||
|
Loss per share: |
|
|
|
|
||||
|
Basic loss per share |
|
$ |
(1.03 |
) |
|
$ |
(1.31 |
) |
|
Diluted loss per share |
|
|
(1.03 |
) |
|
|
(1.31 |
) |
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding: |
|
|
|
|
||||
|
Basic |
|
|
304.2 |
|
|
|
290.4 |
|
|
Diluted |
|
|
304.2 |
|
|
|
290.4 |
|
|
|
|
|
|
|
||||
|
Percentage of Net Sales: |
|
|
|
|
||||
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
Cost of sales |
|
|
76.9 |
% |
|
|
77.6 |
% |
|
Gross profit |
|
|
23.1 |
% |
|
|
22.4 |
% |
|
Selling, general and administrative expenses |
|
|
28.4 |
% |
|
|
28.4 |
% |
|
Asset impairments |
|
|
— |
% |
|
|
0.1 |
% |
|
Operating loss |
|
|
(5.3 |
)% |
|
|
(6.1 |
)% |
|
Interest (income) expense and other, net |
|
|
(0.2 |
)% |
|
|
0.5 |
% |
|
Loss before income taxes |
|
|
(5.1 |
)% |
|
|
(6.6 |
)% |
|
Income tax expense (benefit) |
|
|
0.2 |
% |
|
|
(0.2 |
)% |
|
Net loss |
|
|
(5.3 |
)% |
|
|
(6.3 |
)% |
|
GameStop Corp. |
||||||
|
Consolidated Balance Sheets |
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|
(in millions) |
||||||
|
(unaudited) |
||||||
|
|
|
January 28, |
|
January 29, |
||
|
Current assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,139.0 |
|
$ |
1,271.4 |
|
Marketable securities |
|
|
251.6 |
|
|
— |
|
Receivables, net of allowance of $2.2 and $3.3, respectively |
|
|
153.9 |
|
|
141.1 |
|
Merchandise inventories |
|
|
682.9 |
|
|
915.0 |
|
Prepaid expenses and other current assets |
|
|
96.3 |
|
|
271.3 |
|
Total current assets |
|
|
2,323.7 |
|
|
2,598.8 |
|
Property and equipment, net of accumulated depreciation of $1,006.8 and $1,029.8, respectively |
|
|
136.5 |
|
|
163.6 |
|
Operating lease right-of-use assets |
|
|
560.8 |
|
|
586.6 |
|
Deferred income taxes |
|
|
18.3 |
|
|
16.3 |
|
Other noncurrent assets |
|
|
74.1 |
|
|
134.0 |
|
Total assets |
|
$ |
3,113.4 |
|
$ |
3,499.3 |
|
|
||||||
|
Current liabilities: |
|
|
|
|
||
|
Accounts payable |
|
$ |
531.3 |
|
$ |
471.0 |
|
Accrued liabilities and other current liabilities |
|
|
602.3 |
|
|
668.9 |
|
Current portion of operating lease liabilities |
|
|
194.7 |
|
|
210.7 |
|
Current portion of long-term debt |
|
|
10.8 |
|
|
4.1 |
|
Total current liabilities |
|
|
1,339.1 |
|
|
1,354.7 |
|
Long-term debt |
|
|
28.7 |
|
|
40.5 |
|
Operating lease liabilities |
|
|
382.4 |
|
|
393.7 |
|
Other long-term liabilities |
|
|
40.9 |
|
|
107.9 |
|
Total liabilities |
|
|
1,791.1 |
|
|
1,896.8 |
|
Stockholders’ equity |
|
|
1,322.3 |
|
|
1,602.5 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,113.4 |
|
$ |
3,499.3 |
|
GameStop Corp. |
||||||||
|
Consolidated Statements of Cash Flows |
||||||||
|
(in millions) |
||||||||
|
(unaudited) |
||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
||||
|
Cash flows from operating activities: |
|
|
|
|
||||
|
Net income (loss) |
|
$ |
48.2 |
|
|
$ |
(147.5 |
) |
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
14.2 |
|
|
|
24.0 |
|
|
Gain on sale of digital assets |
|
|
(0.1 |
) |
|
|
— |
|
|
Digital asset impairments |
|
|
0.1 |
|
|
|
— |
|
|
Asset impairments |
|
|
0.2 |
|
|
|
6.1 |
|
|
Stock-based compensation expense |
|
|
7.9 |
|
|
|
9.8 |
|
|
Deferred income taxes |
|
|
(2.6 |
) |
|
|
(16.3 |
) |
|
(Gain) loss on disposal of property and equipment, net |
|
|
(2.6 |
) |
|
|
3.5 |
|
|
Other |
|
|
(5.7 |
) |
|
|
(2.1 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Receivables, net |
|
|
(30.1 |
) |
|
|
(59.4 |
) |
|
Merchandise inventories |
|
|
474.6 |
|
|
|
215.6 |
|
|
Prepaid expenses and other assets |
|
|
13.5 |
|
|
|
(1.4 |
) |
|
Prepaid income taxes and income taxes payable |
|
|
171.5 |
|
|
|
(8.8 |
) |
|
Accounts payable and accrued liabilities |
|
|
(354.9 |
) |
|
|
(152.5 |
) |
|
Operating lease right-of-use assets and lease liabilities |
|
|
2.8 |
|
|
|
17.2 |
|
|
Changes in other long-term liabilities |
|
|
1.2 |
|
|
|
1.5 |
|
|
Net cash flows provided by (used in) operating activities |
|
|
338.2 |
|
|
|
(110.3 |
) |
|
Cash flows from investing activities: |
|
|
|
|
||||
|
Capital expenditures |
|
|
(11.6 |
) |
|
|
(21.3 |
) |
|
Purchases of marketable securities |
|
|
(39.8 |
) |
|
|
— |
|
|
Proceeds from maturities of marketable securities |
|
|
27.5 |
|
|
|
— |
|
|
Proceeds from sale of digital assets |
|
|
4.5 |
|
|
|
— |
|
|
Other |
|
|
0.3 |
|
|
|
(2.3 |
) |
|
Net cash flows used in investing activities |
|
|
(19.1 |
) |
|
|
(23.6 |
) |
|
Cash flows from financing activities: |
|
|
|
|
||||
|
Payments of financing costs |
|
|
— |
|
|
|
(3.0 |
) |
|
Repayments of French term loans |
|
|
(3.9 |
) |
|
|
— |
|
|
Settlement of stock-based awards |
|
|
(0.7 |
) |
|
|
(0.2 |
) |
|
Net cash flows used in financing activities |
|
|
(4.6 |
) |
|
|
(3.2 |
) |
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
|
22.0 |
|
|
|
(11.1 |
) |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
336.5 |
|
|
|
(148.2 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
859.5 |
|
|
|
1,468.1 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,196.0 |
|
|
$ |
1,319.9 |
|
|
GameStop Corp. |
||||||||
|
Consolidated Statements of Cash Flows |
||||||||
|
(in millions) |
||||||||
|
(unaudited) |
||||||||
|
|
|
52 weeks ended |
|
52 weeks ended |
||||
|
Cash flows from operating activities: |
|
|
|
|
||||
|
Net loss |
|
$ |
(313.1 |
) |
|
$ |
(381.3 |
) |
|
Adjustments to reconcile net loss to net cash flows from operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
61.7 |
|
|
|
77.2 |
|
|
Loss on retirement of debt |
|
|
— |
|
|
|
18.2 |
|
|
Asset impairments |
|
|
2.7 |
|
|
|
6.7 |
|
|
Stock-based compensation expense |
|
|
40.1 |
|
|
|
30.5 |
|
|
Gain on sale of digital assets |
|
|
(7.2 |
) |
|
|
— |
|
|
Digital asset impairments |
|
|
34.0 |
|
|
|
— |
|
|
Deferred income taxes |
|
|
(2.6 |
) |
|
|
(16.3 |
) |
|
Loss on disposal of property and equipment, net |
|
|
2.5 |
|
|
|
5.4 |
|
|
Other |
|
|
1.2 |
|
|
|
(3.5 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Receivables, net |
|
|
(16.8 |
) |
|
|
(38.4 |
) |
|
Merchandise inventories |
|
|
229.6 |
|
|
|
(329.6 |
) |
|
Prepaid expenses and other assets |
|
|
(25.2 |
) |
|
|
(6.5 |
) |
|
Prepaid income taxes and income taxes payable |
|
|
172.4 |
|
|
|
(21.7 |
) |
|
Accounts payable and accrued liabilities |
|
|
(66.2 |
) |
|
|
224.4 |
|
|
Operating lease right-of-use assets and lease liabilities |
|
|
(4.9 |
) |
|
|
(0.9 |
) |
|
Changes in other long-term liabilities |
|
|
— |
|
|
|
1.5 |
|
|
Net cash flows provided by (used in) operating activities |
|
|
108.2 |
|
|
|
(434.3 |
) |
|
Cash flows from investing activities: |
|
|
|
|
||||
|
Capital expenditures |
|
|
(55.9 |
) |
|
|
(62.0 |
) |
|
Purchases of marketable securities |
|
|
(276.8 |
) |
|
|
— |
|
|
Proceeds from maturities of marketable securities |
|
|
27.5 |
|
|
|
— |
|
|
Proceeds from sale of digital assets |
|
|
81.9 |
|
|
|
— |
|
|
Other |
|
|
0.6 |
|
|
|
(2.8 |
) |
|
Net cash flows used in investing activities |
|
|
(222.7 |
) |
|
|
(64.8 |
) |
|
Cash flows from financing activities: |
|
|
|
|
||||
|
Proceeds from issuance of common stock, net of costs |
|
|
— |
|
|
|
1,672.8 |
|
|
Net repayments of senior notes |
|
|
— |
|
|
|
(307.4 |
) |
|
Repayments of revolver borrowings |
|
|
— |
|
|
|
(25.0 |
) |
|
Repayments of French term loans |
|
|
(3.9 |
) |
|
|
— |
|
|
Settlement of stock-based awards |
|
|
(4.0 |
) |
|
|
(136.8 |
) |
|
Payments of financing costs |
|
|
— |
|
|
|
(3.0 |
) |
|
Net cash flows (used in) provided by financing activities |
|
|
(7.9 |
) |
|
|
1,200.6 |
|
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
|
(1.5 |
) |
|
|
(16.6 |
) |
|
(Decrease) increase in cash, cash equivalents and restricted cash |
|
|
(123.9 |
) |
|
|
684.9 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,319.9 |
|
|
|
635.0 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,196.0 |
|
|
$ |
1,319.9 |
|
|
GameStop Corp. |
||||||||||||
|
Schedule I |
||||||||||||
|
Sales Mix |
||||||||||||
|
(in millions) |
||||||||||||
|
(unaudited) |
||||||||||||
|
|
|
13 Weeks Ended January 28, |
|
13 Weeks Ended January 29, |
||||||||
|
Net Sales: |
|
Net |
|
Percent |
|
Net |
|
Percent |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Hardware and accessories(1) |
|
$ |
1,242.8 |
|
55.8 |
% |
|
$ |
1,188.7 |
|
52.7 |
% |
|
Software(2) |
|
|
670.4 |
|
30.1 |
% |
|
|
785.9 |
|
34.9 |
% |
|
Collectibles |
|
|
313.2 |
|
14.1 |
% |
|
|
279.3 |
|
12.4 |
% |
|
Total |
|
$ |
2,226.4 |
|
100.0 |
% |
|
$ |
2,253.9 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
52 weeks ended January 28, |
|
52 weeks ended January 29, |
||||||||
|
Net Sales: |
|
Net |
|
Percent |
|
Net |
|
Percent |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Hardware and accessories(1) |
|
$ |
3,140.0 |
|
53.0 |
% |
|
$ |
3,171.7 |
|
52.8 |
% |
|
Software(2) |
|
|
1,822.6 |
|
30.7 |
% |
|
|
2,014.8 |
|
33.5 |
% |
|
Collectibles |
|
|
964.6 |
|
16.3 |
% |
|
|
824.2 |
|
13.7 |
% |
|
Total |
|
$ |
5,927.2 |
|
100.0 |
% |
|
$ |
6,010.7 |
|
100.0 |
% |
| (1) |
Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are packaged 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 tables reconcile the Company’s 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 earnings (loss) 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 28, 2023, 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 |
|
$ |
453.4 |
|
|
$ |
538.9 |
|
$ |
1,681.0 |
|
|
$ |
1,709.6 |
|
|
Transformation costs(1)(3) |
|
|
(0.5 |
) |
|
|
— |
|
|
(0.9 |
) |
|
|
(24.7 |
) |
|
Significant transactions (2) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(0.4 |
) |
|
Divestitures and other (3) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(0.1 |
) |
|
Adjusted SG&A |
|
$ |
452.9 |
|
|
$ |
538.9 |
|
$ |
1,680.1 |
|
|
$ |
1,684.4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
|||||||
|
Adjusted Operating Income (Loss) |
|
|
|
|
|
|
|
|
|||||||
|
Operating earnings (loss) |
|
$ |
46.2 |
|
$ |
(166.8 |
) |
|
$ |
(311.6 |
) |
|
$ |
(368.5 |
) |
|
Transformation costs(1)(3) |
|
|
0.5 |
|
|
— |
|
|
|
0.9 |
|
|
|
24.7 |
|
|
Asset impairments |
|
|
0.2 |
|
|
6.1 |
|
|
|
2.7 |
|
|
|
6.7 |
|
|
Significant transactions (2) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
Divestitures and other (3) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Adjusted operating income (loss) |
|
$ |
46.9 |
|
$ |
(160.7 |
) |
|
$ |
(308.0 |
) |
|
$ |
(336.6 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
|||||||
|
Adjusted Net Income (Loss) |
|
|
|
|
|
|
|
|
|||||||
|
Net income (loss) |
|
$ |
48.2 |
|
$ |
(147.5 |
) |
|
$ |
(313.1 |
) |
|
$ |
(381.3 |
) |
|
Transformation costs(1)(3) |
|
|
0.5 |
|
|
— |
|
|
|
0.9 |
|
|
|
24.7 |
|
|
Asset impairments |
|
|
0.2 |
|
|
6.1 |
|
|
|
2.7 |
|
|
|
6.7 |
|
|
Significant transactions (2) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
18.6 |
|
|
Divestitures and other (3) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Adjusted net income (loss) |
|
$ |
48.9 |
|
$ |
(141.4 |
) |
|
$ |
(309.5 |
) |
|
$ |
(331.2 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Adjusted Earnings (Loss) Per Share |
|
|
|
|
|
|
|
|
|||||||
|
Basic |
|
$ |
0.16 |
|
$ |
(0.47 |
) |
|
$ |
(1.02 |
) |
|
$ |
(1.14 |
) |
|
Diluted |
|
$ |
0.16 |
|
$ |
(0.47 |
) |
|
$ |
(1.02 |
) |
|
$ |
(1.14 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Number of shares used in adjusted calculation |
|
|
|
|
|
|
|
|
|||||||
|
Basic |
|
|
304.3 |
|
|
303.6 |
|
|
|
304.2 |
|
|
|
290.4 |
|
|
Diluted |
|
|
304.5 |
|
|
303.6 |
|
|
|
304.2 |
|
|
|
290.4 |
|
|
(1) Current year includes the impact of cash severance costs partially offset by stock-based compensation forfeitures related to workforce optimization efforts in connection with our transformation initiatives. Prior year includes cash severance and stock-based compensation costs for key personnel that separated from the Company and expenses for consultants and advisors related to the transformation initiatives. |
|||||||||||||||
|
|
|||||||||||||||
|
(2) Prior year includes transaction costs associated with our at-the-market (“ATM”) offering. Adjusted net loss in the prior year also includes the impact of the make-whole premium and accelerated amortization associated with the voluntary redemption of the 2023 Senior Notes recognized in interest (income) expense and other, net in our Consolidated Statements of Operations. |
|||||||||||||||
|
|
|||||||||||||||
|
(3) Prior year amount related to cash severance costs and stock-based compensation have been reclassified to conform to the current year presentation. |
|||||||||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||||||
|
Reconciliation of Adjusted EBITDA to Net Income (Loss) |
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
|
$ |
48.2 |
|
|
$ |
(147.5 |
) |
|
$ |
(313.1 |
) |
|
$ |
(381.3 |
) |
|
Interest (income) expense and other, net |
|
|
(6.2 |
) |
|
|
0.9 |
|
|
|
(9.5 |
) |
|
|
26.9 |
|
|
Depreciation and amortization |
|
|
14.2 |
|
|
|
24.0 |
|
|
|
61.7 |
|
|
|
77.2 |
|
|
Income tax expense (benefit) |
|
|
4.2 |
|
|
|
(20.2 |
) |
|
|
11.0 |
|
|
|
(14.1 |
) |
|
EBITDA |
|
$ |
60.4 |
|
|
$ |
(142.8 |
) |
|
$ |
(249.9 |
) |
|
$ |
(291.3 |
) |
|
Stock-based compensation expense |
|
|
21.4 |
|
|
|
9.8 |
|
|
|
53.6 |
|
|
|
22.5 |
|
|
Transformation costs(1)(3) |
|
|
0.5 |
|
|
|
— |
|
|
|
0.9 |
|
|
|
24.7 |
|
|
Asset impairments |
|
|
0.2 |
|
|
|
6.1 |
|
|
|
2.7 |
|
|
|
6.7 |
|
|
Significant transactions(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
Divestitures and other(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Adjusted EBITDA |
|
$ |
82.5 |
|
|
$ |
(126.9 |
) |
|
$ |
(192.7 |
) |
|
$ |
(236.9 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
(1) Current year includes the impact of cash severance costs partially offset by stock-based compensation forfeitures related to workforce optimization efforts in connection with our transformation initiatives. Prior year includes cash severance and stock-based compensation costs for key personnel that separated from the Company and expenses for consultants and advisors related to the transformation initiatives. |
||||||||||||||||
|
|
||||||||||||||||
|
(2) Prior year includes transaction costs associated with the ATM offering. |
||||||||||||||||
|
|
||||||||||||||||
|
(3) Prior year amounts related to cash severance costs and stock-based compensation have been reclassified to conform to the current year presentation. |
||||||||||||||||
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.
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
||||||||
|
Net cash flows provided by (used in) operating activities |
$ |
338.2 |
|
|
$ |
(110.3 |
) |
|
$ |
108.2 |
|
|
$ |
(434.3 |
) |
|
Capital expenditures |
|
(11.6 |
) |
|
|
(21.3 |
) |
|
|
(55.9 |
) |
|
|
(62.0 |
) |
|
Free cash flow |
$ |
326.6 |
|
|
$ |
(131.6 |
) |
|
$ |
52.3 |
|
|
$ |
(496.3 |
) |
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