GameStop Reports First Quarter 2013 Results
Diluted EPS beats high end of guidance by
Company declares
First Quarter Results
Total global sales for the first quarter of 2013 were
During the quarter, mobile sales grew 290% to
GameStop’s net earnings for the first quarter were
Capital Allocation Update
As previously reported on
GameStop’s board of directors also declared a quarterly cash dividend of
Earnings Guidance
For the second quarter of fiscal 2013,
The company is increasing the lower end of its previously announced full
year diluted earnings per share guidance range of
Note: Current guidance only includes the effect of the shares purchased thus far in fiscal 2013.
Conference Call and Webcast Information
About
General information on
Safe Harbor
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements may include, but are not limited to, the outlook for the
second quarter and fiscal 2013, future financial and operating results,
projected store openings, the company's plans, objectives, expectations
and intentions, and other statements that are not historical facts. Such
statements are based upon the current beliefs and expectations of
GameStop Corp. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in millions, except per share data) | |||||||||
13 weeks | 13 weeks | ||||||||
ended | ended | ||||||||
May 4, 2013 | April 28, 2012 | ||||||||
Net sales | $ | 1,865.3 | $ | 2,002.2 | |||||
Cost of sales | 1,287.0 | 1,402.3 | |||||||
Gross profit | 578.3 | 599.9 | |||||||
Selling, general and administrative | |||||||||
expenses | 449.2 | 440.4 | |||||||
Depreciation and amortization | 41.9 | 44.5 | |||||||
Operating earnings | 87.2 | 115.0 | |||||||
Interest expense, net | 0.9 | 0.4 | |||||||
Earnings before income | |||||||||
tax expense | 86.3 | 114.6 | |||||||
Income tax expense | 31.7 | 42.2 | |||||||
Consolidated net income | 54.6 | 72.4 | |||||||
Net loss attributable to noncontrolling interests | 0.0 | 0.1 | |||||||
Consolidated net income attributable to GameStop Corp. | $ | 54.6 | $ | 72.5 | |||||
Net income per common share: | |||||||||
Basic1 | $ | 0.46 | $ | 0.54 | |||||
Diluted1 | $ | 0.46 | $ | 0.54 | |||||
Dividends per common share | $ | 0.275 | $ | 0.15 | |||||
Weighted average common shares | |||||||||
outstanding: | |||||||||
Basic | 118.4 | 134.0 | |||||||
Diluted | 119.4 | 134.8 | |||||||
Percentage of Sales: |
|||||||||
Net sales | 100.0 | % | 100.0 | % | |||||
Cost of sales | 69.0 | % | 70.0 | % | |||||
Gross profit | 31.0 | % | 30.0 | % | |||||
Selling, general and administrative | 24.1 | % | 22.0 | % | |||||
expenses | |||||||||
Depreciation and amortization | 2.2 | % | 2.3 | % | |||||
Operating earnings | 4.7 | % | 5.7 | % | |||||
Interest expense, net | 0.1 | % | 0.0 | % | |||||
Earnings before income | |||||||||
tax expense | 4.6 | % | 5.7 | % | |||||
Income tax expense | 1.7 | % | 2.1 | % | |||||
Consolidated net income | 2.9 | % | 3.6 | % | |||||
Net loss attributable to noncontrolling interests | 0.0 | % | 0.0 | % | |||||
Consolidated net income attributable to GameStop Corp. |
2.9 |
% |
3.6 | % |
1 Basic net income per share and diluted net income per share are calculated based on consolidated net income |
attributable to GameStop Corp. |
GameStop Corp. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in millions) | ||||||||||
May 4, | April 28, | |||||||||
2013 | 2012 | |||||||||
ASSETS: | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 245.7 | $ | 329.1 | ||||||
Receivables, net | 57.2 | 48.1 | ||||||||
Merchandise inventories | 1,112.3 | 1,118.2 | ||||||||
Prepaid expenses and other current assets | 91.9 | 101.0 | ||||||||
Deferred income taxes | 55.3 | 39.2 | ||||||||
Total current assets | 1,562.4 | 1,635.6 | ||||||||
Property and equipment: | ||||||||||
Land | 22.2 | 22.4 | ||||||||
Buildings & leasehold improvements | 600.8 | 602.2 | ||||||||
Fixtures and equipment | 932.9 | 877.3 | ||||||||
1,555.9 | 1,501.9 | |||||||||
Less accumulated depreciation and amortization | 1,055.2 | 952.7 | ||||||||
Net property and equipment | 500.7 | 549.2 | ||||||||
Goodwill | 1,378.2 | 2,021.3 | ||||||||
Other noncurrent assets | 203.8 | 252.9 | ||||||||
Total assets | $ | 3,645.1 | $ | 4,459.0 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 528.7 | $ | 656.4 | ||||||
Accrued liabilities | 707.0 | 662.6 | ||||||||
Total current liabilities | 1,235.7 | 1,319.0 | ||||||||
Other long-term liabilities | 113.1 | 162.7 | ||||||||
Total liabilities | 1,348.8 | 1,481.7 | ||||||||
Stockholders' equity: | ||||||||||
Preferred stock - authorized 5.0 shares; no shares | ||||||||||
issued or outstanding | - | - | ||||||||
Class A common stock - $.001 par value; authorized 300.0 shares; | ||||||||||
119.0 and 132.0 shares outstanding, respectively |
0.1 |
0.1 | ||||||||
Additional paid-in-capital | 355.0 | 611.3 | ||||||||
Accumulated other comprehensive income | 146.3 | 170.4 | ||||||||
Retained earnings | 1,794.9 | 2,197.6 | ||||||||
Equity attributable to GameStop Corp. stockholders |
2,296.3 |
2,979.4 | ||||||||
Equity (deficit) attributable to noncontrolling interest | 0.0 | (2.1 | ) | |||||||
Total equity | 2,296.3 | 2,977.3 | ||||||||
Total liabilities and stockholders' equity | $ | 3,645.1 | $ | 4,459.0 |
Schedule I | ||||||||||||||
GameStop Corp. | ||||||||||||||
Sales Mix | ||||||||||||||
13 Weeks Ended | 13 Weeks Ended | |||||||||||||
May 4, 2013 | April 28, 2012 | |||||||||||||
Percent | Percent | |||||||||||||
Net Sales | of Total | Net Sales | of Total | |||||||||||
Net Sales (in millions): | ||||||||||||||
New video game hardware | $ | 241.8 | 13.0 | % | $ | 348.6 | 17.4 | % | ||||||
New video game software | 703.2 | 37.7 | % | 731.1 | 36.5 | % | ||||||||
Pre-owned video game products | 572.6 | 30.7 | % | 619.0 | 30.9 | % | ||||||||
Other | 347.7 | 18.6 | % | 303.5 | 15.2 | % | ||||||||
Total | $ | 1,865.3 | 100.0 | % | $ | 2,002.2 | 100.0 | % | ||||||
Schedule II | ||||||||||||||
GameStop Corp. | ||||||||||||||
Gross Profit Mix | ||||||||||||||
13 Weeks Ended | 13 Weeks Ended | |||||||||||||
May 4, 2013 | April 28, 2012 | |||||||||||||
Gross | Gross | |||||||||||||
Gross | Profit | Gross | Profit | |||||||||||
Profit | Percent | Profit | Percent | |||||||||||
Gross Profit (in millions): | ||||||||||||||
New video game hardware | $ | 20.3 | 8.4 | % | $ | 22.9 | 6.6 | % | ||||||
New video game software | 148.2 | 21.1 | % | 150.0 | 20.5 | % | ||||||||
Pre-owned video game products | 270.7 | 47.3 | % | 304.2 | 49.1 | % | ||||||||
Other | 139.1 | 40.0 | % | 122.8 | 40.5 | % | ||||||||
Total | $ | 578.3 | 31.0 | % | $ | 599.9 | 30.0 | % |
Source:
Matt Hodges
Vice President,
Public and Investor Relations
GameStop
Corp.
(817) 424-2130