GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today
released financial results for the fourth quarter and fiscal year
ended February 3, 2024. The Company’s 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 $1.794 billion for
the fourth quarter, compared to $2.226 billion in the prior year's
fourth quarter.
- Selling, general and administrative
(“SG&A”) expenses were $359.2 million, or 20.0% of net sales,
for the fourth quarter, compared to $453.4 million, or 20.4% of net
sales, in the prior year's fourth quarter.
- Net income was $63.1 million for
the fourth quarter, compared to net income of $48.2 million for the
prior year’s fourth quarter.
- Cash, cash equivalents and
marketable securities were $1.199 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
- Net sales were $5.273 billion for
fiscal year 2023, compared to $5.927 billion for fiscal year
2022.
- SG&A expenses were $1.324
billion, or 25.1% of net sales, for fiscal year 2023, compared to
$1.681 billion, or 28.4% of net sales, for fiscal year 2022.
- Net income was $6.7 million for
fiscal year 2023, compared to a net loss of $313.1 million for
fiscal year 2022.
- Adjusted EBITDA of $64.7 million
for fiscal year 2023, compared to adjusted EBITDA of ($192.7)
million for fiscal year 2022.
The Company will not be holding a conference call today.
Additional information can be found in the Company’s Form 10-K.
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 expenses, adjusted operating income (loss),
adjusted net income (loss), adjusted earnings (loss) per share and
adjusted EBITDA exclude the effect of items such as certain
transformation costs, asset impairments, severance, as well as
divestiture costs. Free cash flow excludes capital expenditures
otherwise included in net cash flows (used in) provided by
operating activities. 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.
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. 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 competitive nature of the
Company’s industry; 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; interruptions to the Company’s supply chain or
the supply chain of our suppliers; the Company’s dependence on
sales during the holiday selling season; the Company’s ability to
obtain favorable terms from its current and future suppliers and
service providers; the Company’s ability to anticipate, identify
and react to trends in pop culture with regard to its sales of
collectibles; the Company’s ability to maintain strong retail and
ecommerce experiences for its customers; the Company’s ability to
keep pace with changing industry technology and consumer
preferences; the Company’s ability to manage its profitability and
cost reduction initiatives; turnover in senior management or the
Company’s ability to attract and retain qualified personnel;
potential damage to the Company’s reputation or customers'
perception of the Company; the Company’s ability to maintain the
security or privacy of its customer, associate or Company
information; occurrence of weather events, natural disasters,
public health crises and other unexpected events; risks associated
with inventory shrinkage; potential failure or inadequacy of the
Company's computerized systems; 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 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; the Company’s ability to renew or enter into
new leases on favorable terms; 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; potential future litigation and other
legal proceedings; the value of the Company's securities holdings;
concentration of the Company's investment portfolio into one or
fewer holdings; the recognition of losses in a particular security
even if the Company has not sold the security; volatility in the
Company’s 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; 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; risks associated with the Company’s
investment in marketable, nonmarketable and interest-bearing
securities, including the impact of such investments on Company’s
financial results; and the Company’s ability to maintain effective
control over financial reporting. Additional factors that could
cause results to differ materially from those reflected or
described in the forward-looking statements can be found in
GameStop's most recent Annual Report on Form 10-K and other filings
made from time to time with the SEC and available at
www.sec.gov or on the Company’s investor relations website
(https://investor.gamestop.com). Forward-looking statements
contained in this press release speak only as of the date of this
press release. The Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by any applicable securities laws.
|
GameStop Corp.Consolidated Statements of
Operations(in millions, except per share
data)(unaudited) |
| |
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
|
Net sales |
|
$ |
1,793.6 |
|
|
$ |
2,226.4 |
|
| Cost of sales |
|
|
1,374.4 |
|
|
|
1,726.6 |
|
|
Gross profit |
|
|
419.2 |
|
|
|
499.8 |
|
| Selling, general and
administrative expenses |
|
|
359.2 |
|
|
|
453.4 |
|
| Asset impairments |
|
|
4.8 |
|
|
|
0.2 |
|
|
Operating earnings |
|
|
55.2 |
|
|
|
46.2 |
|
| Interest income, net |
|
|
(15.3 |
) |
|
|
(6.2 |
) |
| Other gain, net |
|
|
(0.5 |
) |
|
|
— |
|
|
Earnings before income taxes |
|
|
71.0 |
|
|
|
52.4 |
|
| Income tax expense, net |
|
|
7.9 |
|
|
|
4.2 |
|
| Net income |
|
$ |
63.1 |
|
|
$ |
48.2 |
|
| |
|
|
|
|
| Earnings per share: |
|
|
|
|
|
Basic earnings per share |
|
$ |
0.21 |
|
|
$ |
0.16 |
|
|
Diluted earnings per share |
|
|
0.21 |
|
|
|
0.16 |
|
| |
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
Basic |
|
|
305.6 |
|
|
|
304.3 |
|
|
Diluted |
|
|
305.7 |
|
|
|
304.5 |
|
| |
|
|
|
|
| Percentage of Net Sales: |
|
|
|
|
| Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
| Cost of sales |
|
|
76.6 |
% |
|
|
77.6 |
% |
|
Gross profit |
|
|
23.4 |
% |
|
|
22.4 |
% |
| Selling, general and
administrative expenses |
|
|
20.0 |
% |
|
|
20.4 |
% |
| Asset impairments |
|
|
0.3 |
% |
|
|
— |
% |
|
Operating earnings |
|
|
3.1 |
% |
|
|
2.1 |
% |
| Interest income, net |
|
|
(0.9 |
)% |
|
|
(0.3 |
)% |
| Other gain, net |
|
|
— |
% |
|
|
— |
% |
|
Earnings before income taxes |
|
|
4.0 |
% |
|
|
2.4 |
% |
| Income tax expense, net |
|
|
0.5 |
% |
|
|
0.2 |
% |
| Net income |
|
|
3.5 |
% |
|
|
2.2 |
% |
|
GameStop Corp.Consolidated Statements of
Operations(in millions, except per share
data)(unaudited) |
| |
| |
|
53 weeks endedFebruary 3, 2024 |
|
52 weeks endedJanuary 28, 2023 |
|
Net sales |
|
$ |
5,272.8 |
|
|
$ |
5,927.2 |
|
| Cost of sales |
|
|
3,978.6 |
|
|
|
4,555.1 |
|
|
Gross profit |
|
|
1,294.2 |
|
|
|
1,372.1 |
|
| Selling, general and
administrative expenses |
|
|
1,323.9 |
|
|
|
1,681.0 |
|
| Asset impairments |
|
|
4.8 |
|
|
|
2.7 |
|
|
Operating loss |
|
|
(34.5 |
) |
|
|
(311.6 |
) |
| Interest income, net |
|
|
(49.5 |
) |
|
|
(9.5 |
) |
| Other loss, net |
|
|
1.9 |
|
|
|
— |
|
|
Income (loss) before income taxes |
|
|
13.1 |
|
|
|
(302.1 |
) |
| Income tax expense, net |
|
|
6.4 |
|
|
|
11.0 |
|
| Net income (loss) |
|
$ |
6.7 |
|
|
$ |
(313.1 |
) |
| |
|
|
|
|
| Earnings (loss) per
share: |
|
|
|
|
|
Basic earnings (loss) per share |
|
$ |
0.02 |
|
|
$ |
(1.03 |
) |
|
Diluted earnings (loss) per share |
|
|
0.02 |
|
|
|
(1.03 |
) |
| |
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
Basic |
|
|
305.1 |
|
|
|
304.2 |
|
|
Diluted |
|
|
305.2 |
|
|
|
304.2 |
|
| |
|
|
|
|
| Percentage of Net Sales: |
|
|
|
|
| Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
| Cost of sales |
|
|
75.5 |
% |
|
|
76.9 |
% |
|
Gross profit |
|
|
24.5 |
% |
|
|
23.1 |
% |
| Selling, general and
administrative expenses |
|
|
25.1 |
% |
|
|
28.4 |
% |
| Asset impairments |
|
|
0.1 |
% |
|
|
— |
% |
|
Operating loss |
|
|
(0.7 |
)% |
|
|
(5.3 |
)% |
| Interest income, net |
|
|
(0.9 |
)% |
|
|
(0.2 |
)% |
| Other loss, net |
|
|
— |
% |
|
|
— |
% |
|
Income (loss) before income taxes |
|
|
0.2 |
% |
|
|
(5.1 |
)% |
| Income tax expense, net |
|
|
0.1 |
% |
|
|
0.2 |
% |
| Net income (loss) |
|
|
0.1 |
% |
|
|
(5.3 |
)% |
|
GameStop Corp.Consolidated Balance
Sheets(in millions)(unaudited) |
| |
| |
|
February 3,2024 |
|
January 28,2023 |
| Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
921.7 |
|
$ |
1,139.0 |
|
Marketable securities |
|
|
277.6 |
|
|
251.6 |
|
Receivables, net of allowance of $4.4 and $2.2, respectively |
|
|
91.0 |
|
|
153.9 |
|
Merchandise inventories, net |
|
|
632.5 |
|
|
682.9 |
|
Prepaid expenses and other current assets |
|
|
51.4 |
|
|
96.3 |
|
Total current assets |
|
|
1,974.2 |
|
|
2,323.7 |
| Property and equipment, net of
accumulated depreciation of $851.2 and $1,006.8, respectively |
|
|
94.9 |
|
|
136.5 |
| Operating lease right-of-use
assets |
|
|
555.8 |
|
|
560.8 |
| Deferred income taxes |
|
|
17.3 |
|
|
18.3 |
| Other noncurrent assets |
|
|
66.8 |
|
|
74.1 |
|
Total assets |
|
$ |
2,709.0 |
|
$ |
3,113.4 |
| |
| Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
324.0 |
|
$ |
531.3 |
|
Accrued liabilities and other current liabilities |
|
|
412.0 |
|
|
602.3 |
|
Current portion of operating lease liabilities |
|
|
187.7 |
|
|
194.7 |
|
Current portion of long-term debt |
|
|
10.8 |
|
|
10.8 |
|
Total current liabilities |
|
|
934.5 |
|
|
1,339.1 |
| Long-term debt |
|
|
17.7 |
|
|
28.7 |
| Operating lease
liabilities |
|
|
386.6 |
|
|
382.4 |
| Other long-term
liabilities |
|
|
31.6 |
|
|
40.9 |
|
Total liabilities |
|
|
1,370.4 |
|
|
1,791.1 |
|
Stockholders’ equity |
|
|
1,338.6 |
|
|
1,322.3 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,709.0 |
|
$ |
3,113.4 |
|
GameStop Corp.Consolidated Statements of
Cash Flows(in millions)(unaudited) |
| |
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
| Cash flows from operating
activities: |
|
|
|
|
|
Net income |
|
$ |
63.1 |
|
|
$ |
48.2 |
|
|
Adjustments to reconcile net income to net cash flows from
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
18.6 |
|
|
|
14.2 |
|
|
Gain on sale of digital assets |
|
|
— |
|
|
|
(0.1 |
) |
|
Digital asset impairments |
|
|
— |
|
|
|
0.1 |
|
|
Asset impairments |
|
|
4.8 |
|
|
|
0.2 |
|
|
Stock-based compensation expense, net |
|
|
8.2 |
|
|
|
7.9 |
|
|
Deferred income taxes |
|
|
(0.1 |
) |
|
|
(2.6 |
) |
|
Loss (gain) on disposal of property and equipment, net |
|
|
6.5 |
|
|
|
(2.6 |
) |
|
Other, net |
|
|
(2.1 |
) |
|
|
(5.7 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Receivables, net |
|
|
(0.7 |
) |
|
|
(30.1 |
) |
|
Merchandise inventories, net |
|
|
397.0 |
|
|
|
474.6 |
|
|
Prepaid expenses and other assets |
|
|
4.7 |
|
|
|
13.5 |
|
|
Prepaid income taxes and income taxes payable |
|
|
2.7 |
|
|
|
171.5 |
|
|
Accounts payable and accrued liabilities |
|
|
(512.2 |
) |
|
|
(354.9 |
) |
|
Operating lease right-of-use assets and lease liabilities |
|
|
(1.0 |
) |
|
|
2.8 |
|
|
Changes in other long-term liabilities |
|
|
(0.5 |
) |
|
|
1.2 |
|
|
Net cash flows (used in) provided by operating activities |
|
|
(11.0 |
) |
|
|
338.2 |
|
| Cash flows from investing
activities: |
|
|
|
|
|
Capital expenditures |
|
|
(7.7 |
) |
|
|
(11.6 |
) |
|
Purchases of marketable securities |
|
|
(13.8 |
) |
|
|
(39.8 |
) |
|
Proceeds from maturities of marketable securities |
|
|
42.1 |
|
|
|
27.5 |
|
|
Proceeds from sale of digital assets |
|
|
— |
|
|
|
4.5 |
|
|
Other |
|
|
— |
|
|
|
0.3 |
|
|
Net cash flows provided by (used in) investing activities |
|
|
20.6 |
|
|
|
(19.1 |
) |
| Cash flows from financing
activities: |
|
|
|
|
|
Repayments of French term loans |
|
|
(2.7 |
) |
|
|
(3.9 |
) |
|
Settlement of stock-based awards |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
|
Net cash flows used in financing activities |
|
|
(3.5 |
) |
|
|
(4.6 |
) |
| Exchange rate effect on cash,
cash equivalents and restricted cash |
|
|
3.6 |
|
|
|
22.0 |
|
| Increase in cash, cash
equivalents and restricted cash |
|
|
9.7 |
|
|
|
336.5 |
|
| Cash, cash equivalents and
restricted cash at beginning of period |
|
|
929.2 |
|
|
|
859.5 |
|
| Cash, cash equivalents and
restricted cash at end of period |
|
$ |
938.9 |
|
|
$ |
1,196.0 |
|
| |
|
|
|
|
|
GameStop Corp.Consolidated Statements of
Cash Flows(in millions)(unaudited) |
| |
| |
|
53 weeks endedFebruary 3, 2024 |
|
52 weeks endedJanuary 28, 2023 |
| Cash flows from operating
activities: |
|
|
|
|
|
Net income (loss) |
|
$ |
6.7 |
|
|
$ |
(313.1 |
) |
|
Adjustments to reconcile net income (loss) to net cash flows from
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
56.2 |
|
|
|
61.7 |
|
|
Asset impairments |
|
|
4.8 |
|
|
|
2.7 |
|
|
Stock-based compensation expense, net |
|
|
22.2 |
|
|
|
40.1 |
|
|
Gain on sale of digital assets |
|
|
— |
|
|
|
(7.2 |
) |
|
Digital asset impairments |
|
|
— |
|
|
|
34.0 |
|
|
Deferred income taxes |
|
|
(0.1 |
) |
|
|
(2.6 |
) |
|
Loss on disposal of property and equipment, net |
|
|
1.5 |
|
|
|
2.5 |
|
|
Other, net |
|
|
0.8 |
|
|
|
1.2 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Receivables, net |
|
|
65.0 |
|
|
|
(16.8 |
) |
|
Merchandise inventories, net |
|
|
39.9 |
|
|
|
229.6 |
|
|
Prepaid expenses and other assets |
|
|
10.4 |
|
|
|
(25.2 |
) |
|
Prepaid income taxes and income taxes payable |
|
|
(2.4 |
) |
|
|
172.4 |
|
|
Accounts payable and accrued liabilities |
|
|
(397.7 |
) |
|
|
(66.2 |
) |
|
Operating lease right-of-use assets and lease liabilities |
|
|
(8.1 |
) |
|
|
(4.9 |
) |
|
Changes in other long-term liabilities |
|
|
(2.9 |
) |
|
|
— |
|
|
Net cash flows (used in) provided by operating
activities |
|
|
(203.7 |
) |
|
|
108.2 |
|
| Cash flows from investing
activities: |
|
|
|
|
|
Capital expenditures |
|
|
(34.9 |
) |
|
|
(55.9 |
) |
|
Purchases of marketable securities |
|
|
(326.8 |
) |
|
|
(276.8 |
) |
|
Proceeds from maturities and sales of marketable securities |
|
|
312.6 |
|
|
|
27.5 |
|
|
Proceeds from sale of property and equipment |
|
|
13.1 |
|
|
|
— |
|
|
Proceeds from sale of digital assets |
|
|
2.8 |
|
|
|
81.9 |
|
|
Other |
|
|
— |
|
|
|
0.6 |
|
|
Net cash flows used in investing activities |
|
|
(33.2 |
) |
|
|
(222.7 |
) |
| Cash flows from financing
activities: |
|
|
|
|
|
Repayments of French term loans |
|
|
(10.7 |
) |
|
|
(3.9 |
) |
|
Settlement of stock-based awards |
|
|
(0.9 |
) |
|
|
(4.0 |
) |
|
Net cash flows used in financing activities |
|
|
(11.6 |
) |
|
|
(7.9 |
) |
| Exchange rate effect on cash,
cash equivalents and restricted cash |
|
|
(8.6 |
) |
|
|
(1.5 |
) |
| Decrease in cash, cash
equivalents and restricted cash |
|
|
(257.1 |
) |
|
|
(123.9 |
) |
| Cash, cash equivalents and
restricted cash at beginning of period |
|
|
1,196.0 |
|
|
|
1,319.9 |
|
| Cash, cash equivalents and
restricted cash at end of period |
|
$ |
938.9 |
|
|
$ |
1,196.0 |
|
|
GameStop Corp.Schedule
ISales Mix(in millions)(unaudited) |
| |
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
| Net Sales: |
|
NetSales |
|
Percentof Total |
|
NetSales |
|
Percentof Total |
| |
|
|
|
|
|
|
|
|
|
Hardware and accessories(1) |
|
$ |
1,094.6 |
|
61.0 |
% |
|
$ |
1,242.8 |
|
55.8 |
% |
| Software(2) |
|
|
465.3 |
|
26.0 |
% |
|
|
670.4 |
|
30.1 |
% |
| Collectibles |
|
|
233.7 |
|
13.0 |
% |
|
|
313.2 |
|
14.1 |
% |
|
Total |
|
$ |
1,793.6 |
|
100.0 |
% |
|
$ |
2,226.4 |
|
100.0 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
53 weeks endedFebruary 3, 2024 |
|
52 weeks endedJanuary 28, 2023 |
| Net Sales: |
|
NetSales |
|
Percentof Total |
|
NetSales |
|
Percentof Total |
| |
|
|
|
|
|
|
|
|
| Hardware and
accessories(1) |
|
$ |
2,996.8 |
|
56.8 |
% |
|
$ |
3,140.0 |
|
53.0 |
% |
| Software(2) |
|
|
1,522.0 |
|
28.9 |
% |
|
|
1,822.6 |
|
30.7 |
% |
| Collectibles |
|
|
754.0 |
|
14.3 |
% |
|
|
964.6 |
|
16.3 |
% |
|
Total |
|
$ |
5,272.8 |
|
100.0 |
% |
|
$ |
5,927.2 |
|
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 gaming software, digital software and PC
entertainment software. |
|
GameStop Corp.Schedule II(in
millions)(unaudited) |
Non-GAAP resultsThe following
tables reconcile the Company's SG&A expenses, operating
earnings (loss), net income (loss) and earnings (loss) per share as
presented in its consolidated statements of operations and prepared
in accordance with U.S. generally accepted accounting principles
("GAAP") to its adjusted SG&A expenses, adjusted operating
income (loss), adjusted net income (loss), adjusted earnings (loss)
per share and adjusted EBITDA. 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 14 and 53 weeks ended February 3, 2024, respectively,
include provisions for the tax effects of non-GAAP adjustments. The
reconciliations below are from continuing operations only.
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
|
53 Weeks EndedFebruary 3, 2024 |
|
52 Weeks EndedJanuary 28, 2023 |
| Adjusted SG&A
Expenses |
|
|
|
|
|
|
|
|
|
SG&A expenses |
|
$ |
359.2 |
|
|
$ |
453.4 |
|
|
$ |
1,323.9 |
|
|
$ |
1,681.0 |
|
|
Transformation costs(1) |
|
|
(0.3 |
) |
|
|
(0.5 |
) |
|
|
(5.0 |
) |
|
|
(0.9 |
) |
| Adjusted SG&A
expenses |
|
$ |
358.9 |
|
|
$ |
452.9 |
|
|
$ |
1,318.9 |
|
|
$ |
1,680.1 |
|
| |
|
|
|
|
|
|
|
|
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
|
53 Weeks EndedFebruary 3, 2024 |
|
52 Weeks EndedJanuary 28, 2023 |
| Adjusted Operating
Income (Loss) |
|
|
|
|
|
|
|
|
|
Operating earnings (loss) |
|
$ |
55.2 |
|
$ |
46.2 |
|
$ |
(34.5 |
) |
|
$ |
(311.6 |
) |
|
Transformation costs(1) |
|
|
0.3 |
|
|
0.5 |
|
|
5.0 |
|
|
|
0.9 |
|
|
Asset impairments |
|
|
4.8 |
|
|
0.2 |
|
|
4.8 |
|
|
|
2.7 |
|
| Adjusted operating income
(loss) |
|
$ |
60.3 |
|
$ |
46.9 |
|
$ |
(24.7 |
) |
|
$ |
(308.0 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
|
53 Weeks EndedFebruary 3, 2024 |
|
52 Weeks EndedJanuary 28, 2023 |
| Adjusted Net Income
(Loss) |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
63.1 |
|
|
$ |
48.2 |
|
$ |
6.7 |
|
$ |
(313.1 |
) |
|
Transformation costs(1) |
|
|
0.3 |
|
|
|
0.5 |
|
|
5.0 |
|
|
0.9 |
|
|
Asset impairments |
|
|
4.8 |
|
|
|
0.2 |
|
|
4.8 |
|
|
2.7 |
|
|
Divestitures and other(2) |
|
|
(0.5 |
) |
|
|
— |
|
|
0.9 |
|
|
— |
|
| Adjusted net income
(loss) |
|
$ |
67.7 |
|
|
$ |
48.9 |
|
$ |
17.4 |
|
$ |
(309.5 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Adjusted Earnings
(Loss) Per Share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.22 |
|
|
$ |
0.16 |
|
$ |
0.06 |
|
$ |
(1.02 |
) |
|
Diluted |
|
$ |
0.22 |
|
|
$ |
0.16 |
|
$ |
0.06 |
|
$ |
(1.02 |
) |
| |
|
|
|
|
|
|
|
|
| Number of shares used in
adjusted calculation |
|
|
|
|
|
|
|
|
|
Basic |
|
|
305.6 |
|
|
|
304.3 |
|
|
305.1 |
|
|
304.2 |
|
|
Diluted |
|
|
305.7 |
|
|
|
304.5 |
|
|
305.2 |
|
|
304.2 |
|
| |
|
|
|
|
|
|
|
|
| (1) For the fourth
quarter and fiscal year 2023, transformation costs include
severance, stock-based compensation forfeitures related to
workforce optimization efforts in the U.S., and other costs in
connection with our transformation initiatives. This amount
excludes accelerated lease amortization and fixed asset costs which
have not been factored into our non-GAAP measures. For the fourth
quarter and fiscal year 2022, transformation costs includes the
impact of stock-based compensation forfeitures partially offset by
cash severance costs related to workforce optimization efforts in
connection with our transformation initiatives.(2) Divestitures and
other includes an overall net loss from our divestiture of business
operations in Europe. |
| |
|
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
|
53 Weeks EndedFebruary 3, 2024 |
|
52 Weeks EndedJanuary 28, 2023 |
| Reconciliation of
Adjusted EBITDA to Net Income (Loss) |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
63.1 |
|
|
$ |
48.2 |
|
|
$ |
6.7 |
|
|
$ |
(313.1 |
) |
|
Interest income, net |
|
|
(15.3 |
) |
|
|
(6.2 |
) |
|
|
(49.5 |
) |
|
|
(9.5 |
) |
|
Depreciation and amortization |
|
|
18.6 |
|
|
|
14.2 |
|
|
|
56.2 |
|
|
|
61.7 |
|
|
Income tax expense, net |
|
|
7.9 |
|
|
|
4.2 |
|
|
|
6.4 |
|
|
|
11.0 |
|
| EBITDA |
|
$ |
74.3 |
|
|
$ |
60.4 |
|
|
$ |
19.8 |
|
|
$ |
(249.9 |
) |
|
Stock-based compensation expense |
|
|
9.1 |
|
|
|
21.4 |
|
|
|
34.2 |
|
|
|
53.6 |
|
|
Transformation costs(1) |
|
|
0.3 |
|
|
|
0.5 |
|
|
|
5.0 |
|
|
|
0.9 |
|
|
Asset impairments |
|
|
4.8 |
|
|
|
0.2 |
|
|
|
4.8 |
|
|
|
2.7 |
|
|
Divestitures and other(2) |
|
|
(0.5 |
) |
|
|
— |
|
|
|
0.9 |
|
|
|
— |
|
| Adjusted EBITDA |
|
$ |
88.0 |
|
|
$ |
82.5 |
|
|
$ |
64.7 |
|
|
$ |
(192.7 |
) |
| |
|
|
|
|
|
|
|
|
| (1) For the fourth
quarter and fiscal year 2023, transformation costs include
severance, stock-based compensation forfeitures related to
workforce optimization efforts in the U.S., and other costs in
connection with our transformation initiatives. This amount
excludes accelerated lease amortization and fixed asset costs which
have not been factored into our non-GAAP measures. For the fourth
quarter and fiscal year 2022, transformation costs includes the
impact of stock-based compensation forfeitures partially offset by
cash severance costs related to workforce optimization efforts in
connection with our transformation initiatives.(2) Divestitures and
other includes an overall net loss from our divestiture of business
operations in Europe. |
|
GameStop Corp.Schedule III(in
millions)(unaudited) |
Non-GAAP results
The following table reconciles the Company's
cash flows (used in) provided by operating activities as presented
in its Consolidated Statements of Cash Flows and prepared in
accordance with GAAP to its free cash flow. Free cash flow is
considered a non-GAAP financial measure. Management believes,
however, that free cash flow, which measures our ability to
generate additional cash from our business operations, is an
important financial measure for use by investors in evaluating the
Company’s financial performance.
| |
14 Weeks EndedFebruary 3, 2024 |
|
13 Weeks EndedJanuary 28, 2023 |
|
53 Weeks EndedFebruary 3, 2024 |
|
52 Weeks EndedJanuary 28, 2023 |
|
Net cash flows (used in) provided by operating activities |
$ |
(11.0 |
) |
|
$ |
338.2 |
|
|
$ |
(203.7 |
) |
|
$ |
108.2 |
|
|
Capital expenditures |
|
(7.7 |
) |
|
|
(11.6 |
) |
|
|
(34.9 |
) |
|
|
(55.9 |
) |
| Free cash flow |
$ |
(18.7 |
) |
|
$ |
326.6 |
|
|
$ |
(238.6 |
) |
|
$ |
52.3 |
|
Non-GAAP Measures and Other Metrics
Adjusted EBITDA, adjusted SG&A expenses,
adjusted operating income (loss), adjusted net income (loss), and
adjusted earnings (loss) per share 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 net interest income, depreciation and
amortization, stock-based compensation expense, transformation
costs, business divestitures, fixed asset impairments, severance
and certain 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 SG&A expenses, adjusted operating income
(loss), adjusted net income (loss), and adjusted earnings (loss)
per share 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
SG&A expenses, adjusted operating income (loss), adjusted net
income (loss), and adjusted earnings (loss) per share 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
SG&A expenses, adjusted operating income (loss), adjusted net
income (loss), and adjusted earnings (loss) per share 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.
Contact
GameStop Corp. Investor Relations(817)
424-2001ir@gamestop.com
GameStop (NYSE:GME)
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