GameStop Reports Fourth Quarter and Fiscal Year 2021 Results
GameStop Corp. (GME) reported Q4 and FY 2021 results, achieving net sales of $2.254 billion for Q4, up from $2.122 billion in Q4 2020. For FY 2021, net sales increased to $6.011 billion compared to $5.090 billion in FY 2020. The company plans to launch an NFT marketplace by Q2 FY22 and has expanded brand partnerships in the PC gaming sector. Additionally, GameStop raised over $1.67 billion in capital, eliminated most long-term debt, and ended the year with $1.271 billion in cash. A conference call is scheduled for March 17, 2022.
- Net sales grew to $2.254 billion in Q4 2021 from $2.122 billion in Q4 2020.
- FY 2021 sales increased to $6.011 billion, up from $5.090 billion in FY 2020.
- Successful partnership with Immutable X for NFT marketplace, potentially yielding up to $150 million in IMX tokens.
- Increased PowerUp Rewards Pro members by 32% YoY to approximately 5.8 million.
- Raised over $1.67 billion in capital, enhancing financial stability.
- None.
Announces Intended Launch of
FOURTH QUARTER OVERVIEW
-
Generated net sales of
$2.25 4 billion$2.12 2 billion$2.19 4 billion
-
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
- 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
$6.01 1 billion$5.09 0 billion
- 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 andBoston, Massachusetts , which are technology hubs with established talent markets.
-
Raised more than
$1.67 billion $44.6 million
-
Ended the fiscal year with
$1.27 1 billion$915 million $635 million $602.5 million
CONFERENCE CALL INFORMATION
A webcast with management is scheduled for
NON-GAAP MEASURES AND OTHER METRICS
As a supplement to the Company’s financial results presented in accordance with
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current beliefs, views, estimates and expectations, including as to the Company’s industry, business strategy, goals and expectations concerning its market position, strategic and transformation initiatives, future operations, margins, profitability, sales growth, capital expenditures, liquidity, capital resources, expansion of technology expertise, and other financial and operating information, including expectations as to future operating profit improvement. Such statements include without limitation those about the Company’s expectations for fiscal 2022, future financial and operating results, projections and other statements that are not historical facts. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: economic, social, and political conditions in the markets in which we operate; the impact of the COVID-19 pandemic on the Company’s business and financial results; the cyclicality of the video game industry; the Company’s dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Company’s sales; the Company’s ability to keep pace with changing industry technology and consumer preferences; the Company’s ability to obtain favorable terms from its current and future suppliers and service providers; the ability of the Company’s third party delivery services to deliver products to the Company’s retail locations, fulfillment centers and consumers and changes in the terms the Company has with such service providers; the Company’s dependence on sales during the holiday selling season; the decrease in popularity of certain types of video games containing graphic violence; the Company’s ability to renew or enter into new leases on favorable terms; the Company’s ability to maintain strong retail and ecommerce experiences for its customers; the Company’s strategic plans and transformation initiatives and the Company’s ability to achieve the desired results of its transformation initiatives within the anticipated time-frame or at all; enhanced risks as new business initiatives lead the Company to engage in new activities; the competitive nature of the Company’s industry, including competition from multi-channel retailers, ecommerce businesses, and others; disruptions or interruptions to the Company’s logistics capabilities or supply chain or the supply chain of the Company's suppliers; the Company’s ability to anticipate, identify and react to trends in pop culture with regard to its sales of collectibles; the ability and willingness of the Company’s vendors to provide marketing and merchandising support at historical or anticipated levels; restrictions on the Company’s ability to purchase and sell pre-owned products; changes to tariff and import/export regulations; unfavorable changes in the Company’s global tax rate; legislative actions; the Company’s ability to comply with federal, state, local and international laws and regulations and statutes; the evolution of government regulation related to blockchain, digital assets and Web 3.0 technology; fluctuations in the Company’s results of operations from quarter to quarter; the restrictions contained in the agreement governing the Company’s revolving credit facility; the Company’s ability to generate sufficient cash flow to fund its operations; the Company’s ability to incur additional debt; turnover in senior management or the Company’s ability to attract and retain qualified personnel; turnover in the Company’s Board of Directors; the Company’s ability to maintain the security or privacy of its customer, associate or Company information; potential damage to the Company’s reputation or customers' perception of the Company; occurrence of weather events, natural disasters, public health crises and other unexpected events; potential failure or inadequacy of the Company's computerized systems; the Company’s ability to maintain effective control over financial reporting; volatility in the Company’s Class A Common Stock price, including volatility due to potential short squeezes; continued high degrees of media coverage by third parties; the availability and future sales of substantial amounts of the Company’s Class A Common Stock; and potential future litigation and other legal proceedings. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found on
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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 |
|
|
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 |
% |
|
||||||
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 |
|
|
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) % |
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(in millions) |
||||||
(unaudited) |
||||||
|
|
|
|
|
||
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 |
|
||||||
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 |
|
|
|
|
|
||
|
||||||
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 |
|
||||||||||
Schedule I |
||||||||||
Sales Mix |
||||||||||
(in millions) |
||||||||||
(unaudited) |
||||||||||
|
|
13 weeks ended
|
|
13 weeks ended
|
||||||
|
|
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 |
|
52 weeks ended |
||||||
|
|
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. |
||||||||||
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
|
|
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 (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 (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 (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 |
||||
|
|
|
|
|
|
|
|
|
||||
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 (2) Severance includes cash and stock based compensation for key personnel that have separated from the Company. |
||||||||||||
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 |
||||
|
|
|
|
|
|
|
|
||||
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005428/en/
GameStop Investor Relations
817-424-2001
ir@gamestop.com
GameStop Public Relations
646-386-0091
media@gamestop.com
Source:
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