GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today
released financial results for the second quarter ended August 3,
2024. The Company’s condensed and consolidated financial
statements, including GAAP and non-GAAP results, are below. The
Company’s Form 10-Q and supplemental information can be found at
https://investor.gamestop.com.
SECOND QUARTER OVERVIEW
- Net sales were $0.798
billion for the second quarter, compared to $1.164 billion in the
prior year's second quarter.
- Selling, general and
administrative (“SG&A") expenses were $270.8 million, or 33.9%
of net sales for the second quarter, compared to $322.5 million, or
27.7% of net sales, in the prior year's second quarter.
- Net income was
$14.8 million for the second quarter, compared to a net loss of
$2.8 million for the prior year’s second quarter.
- Cash, cash
equivalents and marketable securities were $4.204 billion at the
close of the quarter.
The Company will not be holding a conference call
today. Stockholders can review the Company’s Form 10-Q.
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 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 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 few
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
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.Condensed Consolidated
Statements of Operations(in millions, except per share
data)(unaudited) |
|
|
13 Weeks endedAugust 3, 2024 |
|
13 Weeks endedJuly 29, 2023 |
Net sales |
|
798.3 |
|
|
|
1,163.8 |
|
Cost of sales |
|
549.5 |
|
|
|
857.9 |
|
Gross profit |
|
248.8 |
|
|
|
305.9 |
|
Selling, general and administrative expenses |
|
270.8 |
|
|
|
322.5 |
|
Operating loss |
|
(22.0 |
) |
|
|
(16.6 |
) |
Interest income, net |
|
(39.5 |
) |
|
|
(11.6 |
) |
Other income, net |
|
— |
|
|
|
(2.0 |
) |
Earnings (loss) before income taxes |
|
17.5 |
|
|
|
(3.0 |
) |
Income tax expense (benefit) |
|
2.7 |
|
|
|
(0.2 |
) |
Net income (loss) |
$ |
14.8 |
|
|
$ |
(2.8 |
) |
|
|
|
|
Net income (loss) per share: |
|
|
|
Basic Income (loss) per share |
$ |
0.04 |
|
|
$ |
(0.01 |
) |
Diluted income (loss) per share |
$ |
0.04 |
|
|
$ |
(0.01 |
) |
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
Basic |
|
386.4 |
|
|
|
304.8 |
|
Diluted |
|
387.2 |
|
|
|
304.8 |
|
|
|
|
|
Percentage of Net Sales: |
|
|
|
|
|
|
|
Net sales |
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
68.8 |
|
|
|
73.7 |
|
Gross profit |
|
31.2 |
|
|
|
26.3 |
|
Selling, general and administrative expenses |
|
33.9 |
|
|
|
27.7 |
|
Asset Impairments |
|
— |
|
|
|
— |
|
Operating loss |
|
(2.8 |
) |
|
|
(1.4 |
) |
Interest income, net |
|
(4.9 |
) |
|
|
(1.0 |
) |
Other income, net |
|
— |
|
|
|
(0.2 |
) |
Earnings (loss) before income taxes |
|
2.2 |
|
|
|
(0.3 |
) |
Income tax expense (benefit) |
|
0.3 |
|
|
|
— |
|
Net income (loss) |
|
1.9 |
% |
|
|
(0.2 |
)% |
|
|
|
|
|
|
GameStop Corp.Condensed Consolidated
Statements of Operations(in millions, except per share
data)(unaudited) |
|
|
26 Weeks endedAugust 3, 2024 |
|
26 Weeks endedJuly 29, 2023 |
Net sales |
|
1,680.1 |
|
|
|
2,400.9 |
|
Cost of sales |
|
1,186.8 |
|
|
|
1,807.7 |
|
Gross profit |
|
493.3 |
|
|
|
593.2 |
|
Selling, general and administrative expenses |
|
565.9 |
|
|
|
668.2 |
|
Operating loss |
|
(72.6 |
) |
|
|
(75.0 |
) |
Interest income, net |
|
(54.4 |
) |
|
|
(21.3 |
) |
Other income, net |
|
— |
|
|
|
(0.1 |
) |
Loss before income taxes |
|
(18.2 |
) |
|
|
(53.6 |
) |
Income tax benefit |
|
(0.7 |
) |
|
|
(0.3 |
) |
Net loss |
$ |
(17.5 |
) |
|
$ |
(53.3 |
) |
|
|
|
|
Loss per share: |
|
|
|
Basic loss per share |
$ |
(0.05 |
) |
|
$ |
(0.17 |
) |
Diluted loss per share |
$ |
(0.05 |
) |
|
$ |
(0.17 |
) |
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
Basic |
|
346.2 |
|
|
|
304.7 |
|
Diluted |
|
346.2 |
|
|
|
304.7 |
|
|
|
|
|
Percentage of Net Sales: |
|
|
|
|
|
|
|
Net sales |
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
70.6 |
|
|
|
75.3 |
|
Gross profit |
|
29.4 |
|
|
|
24.7 |
|
Selling, general and administrative expenses |
|
33.7 |
|
|
|
27.8 |
|
Asset Impairments |
|
— |
|
|
|
— |
|
Operating loss |
|
(4.3 |
) |
|
|
(3.1 |
) |
Interest income, net |
|
(3.2 |
) |
|
|
(0.9 |
) |
Loss before income taxes |
|
(1.1 |
) |
|
|
(2.2 |
) |
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
Net loss |
|
(1.1 |
)% |
|
|
(2.2 |
)% |
|
|
|
|
GameStop Corp.Condensed Consolidated
Balance Sheets(in millions)(unaudited) |
|
|
August 3, 2024 |
|
July 29, 2023 |
ASSETS: |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
4,193.1 |
|
|
$ |
894.7 |
|
Marketable securities |
|
11.1 |
|
|
|
300.0 |
|
Receivables, net of allowance of $4.4 and $2.2, respectively |
|
59.7 |
|
|
|
75.6 |
|
Merchandise inventories, net |
|
560.0 |
|
|
|
676.9 |
|
Prepaid expenses and other current assets |
|
60.0 |
|
|
|
58.0 |
|
Total current assets |
|
4,883.9 |
|
|
|
2,005.2 |
|
Property and equipment, net of accumulated depreciation of $846.0
and $983.0, respectively |
|
78.9 |
|
|
|
119.3 |
|
Operating lease right-of-use assets |
|
490.9 |
|
|
|
583.0 |
|
Deferred income taxes |
|
17.5 |
|
|
|
17.6 |
|
Other noncurrent assets |
|
65.1 |
|
|
|
78.6 |
|
Total assets |
$ |
5,536.3 |
|
|
$ |
2,803.7 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
Current liabilities: |
|
|
|
Accounts payable |
$ |
220.5 |
|
|
$ |
378.0 |
|
Accrued liabilities and other current liabilities |
|
377.8 |
|
|
|
487.5 |
|
Current portion of operating lease liabilities |
|
174.2 |
|
|
|
194.9 |
|
Current portion of long-term debt |
|
11.0 |
|
|
|
11.0 |
|
Total current liabilities |
|
783.6 |
|
|
|
1,071.4 |
|
Long-term debt, net |
|
12.4 |
|
|
|
23.6 |
|
Operating lease liabilities |
|
335.9 |
|
|
|
405.7 |
|
Other long-term liabilities |
|
21.1 |
|
|
|
35.8 |
|
Total liabilities |
|
1,152.9 |
|
|
|
1,536.5 |
|
Total stockholders’ equity |
|
4,383.4 |
|
|
|
1,267.2 |
|
Total liabilities and stockholders’ equity |
$ |
5,536.3 |
|
|
$ |
2,803.7 |
|
|
|
|
|
GameStop Corp.Condensed Consolidated
Statements of Cash Flows(in millions)(unaudited) |
|
|
13 Weeks endedAugust 3, 2024 |
|
13 Weeks endedJuly 29, 2023 |
Cash flows from operating activities: |
|
|
|
Net profit/(loss) |
$ |
14.8 |
|
|
$ |
(2.8 |
) |
Adjustments to reconcile net loss to net cash flows from operating
activities: |
|
|
|
Depreciation and amortization |
|
7.6 |
|
|
|
12.6 |
|
Stock-based compensation expense, net |
|
5.4 |
|
|
|
(0.3 |
) |
Gain on disposal of property and equipment, net |
|
(2.6 |
) |
|
|
— |
|
Other, net |
|
1.1 |
|
|
|
(3.1 |
) |
Changes in operating assets and liabilities: |
|
|
|
Receivables, net |
|
0.5 |
|
|
|
43.4 |
|
Merchandise inventories, net |
|
115.9 |
|
|
|
83.5 |
|
Prepaid expenses and other current assets |
|
(10.6 |
) |
|
|
8.0 |
|
Prepaid income taxes and income taxes payable |
|
1.7 |
|
|
|
(1.1 |
) |
Accounts payable and accrued liabilities |
|
(55.9 |
) |
|
|
(245.1 |
) |
Operating lease right-of-use assets and liabilities |
|
(0.6 |
) |
|
|
(2.8 |
) |
Changes in other long-term liabilities |
|
(8.7 |
) |
|
|
(1.4 |
) |
Net cash flows provided by (used in) operating activities |
|
68.6 |
|
|
|
(109.1 |
) |
Cash flows from investing
activities: |
|
|
|
Proceeds from sale of property and equipment |
|
9.8 |
|
|
|
— |
|
Proceeds from sale of digital assets |
|
— |
|
|
|
1.5 |
|
Purchases of marketable securities |
|
— |
|
|
|
(102.0 |
) |
Proceeds from the maturities and sales of marketable
securities |
|
72.0 |
|
|
|
58.3 |
|
Capital expenditures |
|
(3.1 |
) |
|
|
(10.1 |
) |
Other |
|
(0.3 |
) |
|
|
0.1 |
|
Net cash flows provided by (used in) investing activities |
|
78.4 |
|
|
|
(52.2 |
) |
Cash flows from financing activities: |
|
|
|
Repayments of debt |
|
(2.8 |
) |
|
|
(2.7 |
) |
Proceeds from issuance of shares in at-the-market (ATM) offering,
net of costs |
|
3,055.7 |
|
|
|
— |
|
Net cash flows provided by (used in) financing activities |
|
3,052.9 |
|
|
|
(2.7 |
) |
Exchange rate effect on cash, cash equivalents and restricted
cash |
|
(0.4 |
) |
|
|
(0.6 |
) |
Increase (decrease) in cash, cash equivalents, and restricted
cash |
|
3,199.5 |
|
|
|
(164.6 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
1,017.5 |
|
|
|
1,079.8 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
4,217.0 |
|
|
$ |
915.2 |
|
|
|
|
|
GameStop Corp.Condensed Consolidated
Statements of Cash Flows(in millions)(unaudited) |
|
|
26 Weeks endedAugust 3, 2024 |
|
26 Weeks endedJuly 29, 2023 |
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(17.5 |
) |
|
$ |
(53.3 |
) |
Adjustments to reconcile net loss to net cash flows from operating
activities: |
|
|
|
Depreciation and amortization |
|
24.4 |
|
|
|
26.3 |
|
Stock-based compensation expense, net |
|
6.0 |
|
|
|
7.6 |
|
(Gain) loss on disposal of property and equipment, net |
|
(2.3 |
) |
|
|
0.6 |
|
Other, net |
|
0.5 |
|
|
|
(2.9 |
) |
Changes in operating assets and liabilities: |
|
|
|
Receivables, net |
|
33.9 |
|
|
|
79.0 |
|
Merchandise inventories, net |
|
72.7 |
|
|
|
0.4 |
|
Prepaid expenses and other current assets |
|
(2.1 |
) |
|
|
4.0 |
|
Prepaid income taxes and income taxes payable |
|
(3.4 |
) |
|
|
(1.3 |
) |
Accounts payable and accrued liabilities |
|
(143.7 |
) |
|
|
(267.4 |
) |
Operating lease right-of-use assets and liabilities |
|
0.5 |
|
|
|
(3.4 |
) |
Changes in other long-term liabilities |
|
(10.2 |
) |
|
|
(1.4 |
) |
Net cash flows used in operating activities |
|
(41.2 |
) |
|
|
(211.8 |
) |
Cash flows from investing activities: |
|
|
|
Proceeds from sale of property and equipment |
|
9.8 |
|
|
|
— |
|
Proceeds from sale of digital assets |
|
— |
|
|
|
2.8 |
|
Purchases of marketable securities |
|
(7.5 |
) |
|
|
(313.0 |
) |
Proceeds from the maturities and sales of marketable
securities |
|
273.9 |
|
|
|
270.5 |
|
Capital expenditures |
|
(8.0 |
) |
|
|
(19.2 |
) |
Net cash flows provided by (used in) investing activities |
|
268.2 |
|
|
|
(58.9 |
) |
Cash flows from financing activities: |
|
|
|
Settlements of stock-based awards |
|
— |
|
|
|
(0.1 |
) |
Repayments of debt |
|
(5.5 |
) |
|
|
(5.4 |
) |
Proceeds from issuance of shares in at-the-market (ATM) offering,
net of costs |
|
3,055.7 |
|
|
|
— |
|
Net cash flows provided by (used in) financing activities |
|
3,050.2 |
|
|
|
(5.5 |
) |
Exchange rate effect on cash, cash equivalents and restricted
cash |
|
0.9 |
|
|
|
(4.6 |
) |
Increase (decrease) in cash, cash equivalents and restricted
cash |
|
3,278.1 |
|
|
|
(280.8 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
938.9 |
|
|
|
1,196.0 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
4,217.0 |
|
|
$ |
915.2 |
|
|
|
|
|
Schedule ISales Mix(in
millions)(unaudited) |
|
|
13 Weeks ended August 3, 2024 |
|
13 Weeks ended July 29, 2023 |
|
Net |
|
Percent |
|
Net |
|
Percent |
Net Sales: |
Sales |
|
of Total |
|
Sales |
|
of Total |
Hardware and accessories (1) |
$ |
451.2 |
|
|
|
56.5 |
% |
|
$ |
597.0 |
|
|
|
51.3 |
% |
Software (2) |
|
207.7 |
|
|
|
26.0 |
|
|
|
397.0 |
|
|
|
34.1 |
|
Collectibles |
|
139.4 |
|
|
|
17.5 |
|
|
|
169.8 |
|
|
|
14.6 |
|
Total |
$ |
798.3 |
|
|
|
100.0 |
% |
|
$ |
1,163.8 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
26 Weeks ended August 3, 2024 |
|
26 Weeks ended July 29, 2023 |
|
Net |
|
Percent |
|
Net |
|
Percent |
Net Sales: |
Sales |
|
of Total |
|
Sales |
|
of Total |
Hardware and accessories (1) |
$ |
956.5 |
|
|
|
56.9 |
% |
|
$ |
1,322.8 |
|
|
|
55.1 |
% |
Software (2) |
|
447.4 |
|
|
|
26.6 |
|
|
|
735.4 |
|
|
|
30.6 |
|
Collectibles |
|
276.2 |
|
|
|
16.5 |
|
|
|
342.7 |
|
|
|
14.3 |
|
Total |
$ |
1,680.1 |
|
|
|
100.0 |
% |
|
$ |
2,400.9 |
|
|
|
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, except per share data)(unaudited) |
|
Non-GAAP results
The following tables reconcile the Company's
selling, general and administrative expenses ("SG&A expense"),
operating loss, net income (loss) and net income (loss) per share
as presented in its unaudited consolidated statements of operations
and prepared in accordance with U.S. generally accepted accounting
principles ("GAAP") to its adjusted SG&A expense, adjusted
operating loss, adjusted net income (loss), adjusted EBITDA and
adjusted net income (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 reconciliations
below are from continuing operations only.
|
13 Weeks Ended |
|
13 Weeks Ended |
|
26 Weeks Ended |
|
26 Weeks Ended |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Adjusted SG&A expense |
|
|
|
|
SG&A expense |
$ |
270.8 |
|
|
$ |
322.5 |
|
|
$ |
565.9 |
|
|
$ |
668.2 |
|
Transformation costs(1) |
|
9.6 |
|
|
|
4.1 |
|
|
|
13.9 |
|
|
|
(3.1 |
) |
Adjusted SG&A expense |
$ |
280.4 |
|
|
$ |
326.6 |
|
|
$ |
579.8 |
|
|
$ |
665.1 |
|
|
|
|
|
|
|
|
|
Adjusted Operating Loss |
|
|
|
|
|
|
|
Operating loss |
$ |
(22.0 |
) |
|
$ |
(16.6 |
) |
|
$ |
(72.6 |
) |
|
$ |
(75.0 |
) |
Transformation costs(1) |
|
(9.6 |
) |
|
|
(4.1 |
) |
|
|
(13.9 |
) |
|
|
3.1 |
|
Adjusted operating loss |
$ |
(31.6 |
) |
|
$ |
(20.7 |
) |
|
$ |
(86.5 |
) |
|
$ |
(71.9 |
) |
|
|
|
|
|
|
|
|
Adjusted Net Income (loss) |
|
|
|
|
|
|
|
Net Income (loss) |
$ |
14.8 |
|
|
$ |
(2.8 |
) |
|
$ |
(17.5 |
) |
|
$ |
(53.3 |
) |
Transformation costs(1) |
|
(9.6 |
) |
|
|
(4.1 |
) |
|
|
(13.9 |
) |
|
|
3.1 |
|
Divestitures and other |
|
— |
|
|
|
(2.1 |
) |
|
|
— |
|
|
|
(1.1 |
) |
Adjusted net income (loss) |
$ |
5.2 |
|
|
$ |
(9.0 |
) |
|
$ |
(31.4 |
) |
|
$ |
(51.3 |
) |
|
|
|
|
|
|
|
|
Adjusted net income (loss) per share |
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.17 |
) |
Diluted |
|
0.01 |
|
|
|
(0.03 |
) |
|
|
(0.09 |
) |
|
|
(0.17 |
) |
|
|
|
|
|
|
|
|
Number of shares used in adjusted calculation |
|
|
|
|
|
|
|
Basic |
|
386.4 |
|
|
|
304.8 |
|
|
|
346.2 |
|
|
|
304.7 |
|
Diluted |
|
387.3 |
|
|
|
304.8 |
|
|
|
346.2 |
|
|
|
304.7 |
|
|
|
|
|
|
|
|
|
(1) Transformation costs include severance, stock-based
compensation forfeitures related to workforce optimization efforts
and departures of key personnel, adjustments to reserves for
expenses for consultants and advisors related to transformation
initiatives, and other costs in connection with the transformation
initiatives. |
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
26 Weeks Ended |
|
26 Weeks Ended |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Reconciliation of Net Income (loss) to Adjusted
EBITDA |
|
|
|
|
|
|
|
Net income (loss) |
$ |
14.8 |
|
|
$ |
(2.8 |
) |
|
$ |
(17.5 |
) |
|
$ |
(53.3 |
) |
Interest income, net |
|
(39.5 |
) |
|
|
(11.6 |
) |
|
|
(54.3 |
) |
|
|
(21.3 |
) |
Depreciation and amortization |
|
7.6 |
|
|
|
12.6 |
|
|
|
24.4 |
|
|
|
26.3 |
|
Income tax expense (benefit) |
|
2.7 |
|
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(0.3 |
) |
EBITDA |
$ |
(14.4 |
) |
|
$ |
(2.0 |
) |
|
$ |
(48.1 |
) |
|
$ |
(48.7 |
) |
Stock-based compensation |
|
6.0 |
|
|
|
9.2 |
|
|
|
12.9 |
|
|
|
18.2 |
|
Transformation costs(1) |
|
(9.6 |
) |
|
|
(4.1 |
) |
|
|
(13.9 |
) |
|
|
3.1 |
|
Divestitures and other |
|
— |
|
|
|
(2.1 |
) |
|
|
— |
|
|
|
(1.1 |
) |
Adjusted EBITDA |
$ |
(18.0 |
) |
|
$ |
1.0 |
|
|
$ |
(49.1 |
) |
|
$ |
(28.5 |
) |
|
|
|
|
|
|
|
|
(1) Transformation costs include severance, stock-based
compensation forfeitures related to workforce optimization efforts
and departures of key personnel, adjustments to reserves for
expenses for consultants and advisors related to transformation
initiatives, and other costs in connection with the transformation
initiatives. |
|
GameStop Corp.Schedule
III(in
millions)(unaudited) |
|
Non-GAAP results
The following table reconciles the Company's
cash flows provided by (used in) operating activities as presented
in its unaudited 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.
|
13 Weeks Ended |
|
13 Weeks Ended |
|
26 Weeks Ended |
|
26 Weeks Ended |
|
August 3, 2024 |
|
July 29, 2023 |
|
August 3, 2024 |
|
July 29, 2023 |
Net cash flows provided by (used in) operating activities |
$ |
68.6 |
|
|
$ |
(109.1 |
) |
|
$ |
(41.2 |
) |
|
$ |
(211.8 |
) |
Capital expenditures |
|
(3.1 |
) |
|
|
(10.1 |
) |
|
|
(8.0 |
) |
|
|
(19.2 |
) |
Free cash flow |
$ |
65.5 |
|
|
$ |
(119.2 |
) |
|
$ |
(49.2 |
) |
|
$ |
(231.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures and Other
Metrics
Adjusted EBITDA, adjusted SG&A expense,
adjusted operating loss, adjusted net income (loss) and adjusted
net income (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 provide 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 income, net and depreciation and amortization,
excluding stock-based compensation, certain 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 SG&A expense, adjusted operating loss,
adjusted net income (loss) and adjusted net income (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 expense, adjusted operating loss, adjusted net income
(loss) and adjusted net income (loss) per share are 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 expense, adjusted operating loss, adjusted net income
(loss) and adjusted net income (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 Investor
Relations817-424-2001ir@gamestop.com
GameStop (NYSE:GME)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
GameStop (NYSE:GME)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024