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EX - 99.1 2 a991 - q3fy21earningsrelease.htm EX - 99.1 GameStop GameStop Reports Financial Results for Q3 2021 Grapevine , Texas ( December 8 , 2021 ) - GameStop Corp. ( NYSE : GME ) ( “ GameStop " or the " Company " ) today released financial results for the third quarter ended October 30 , 2021. 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 http://investor.GameStop.com . THIRD QUARTER OVERVIEW Exhibit 99.1 Net sales were $ 1.297 billion for the quarter , compared to $ 1.005 billion in the prior year's third quarter . Sales attributable to new and expanded brand relationships , such as Samsung , LG , Razer , Vizio and others , contributed to the Company's growth in the quarter . Inventory was $ 1.141 billion at the close of the quarter , compared to $ 861 million at the close of the prior year's third quarter , reflecting the Company's focus on front - loading investments in inventory to meet increased customer demand and mitigate supply chain issues . Ended the period with cash and cash equivalents of $ 1.413 billion as well as no debt other than a $ 46.2 million low interest , unsecured term loan associated with the French government's response to COVID - 19 . Established new offices in Seattle , Washington and Boston , Massachusetts , which are technology hubs with established talent markets . Secured a new $ 500 million ABL facility , which closed in November just after the end of the third quarter , with improved liquidity and terms , including reduced borrowing costs , lighter covenants and additional flexibility . WEBCAST AND CONFERENCE CALL INFORMATION A webcast with management is scheduled for December 8 , 2021 , at 5:00 p.m. ET to discuss the Company's third quarter activities and financial results . This call , along with supplemental information , can also be accessed at http://investor.GameStop.com . The phone number for the call is 877-451-6152 and the confirmation code is 13725350. This webcast will be archived for two months on GameStop's investor relations website . 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 , adjusted operating income ( loss ) , adjusted net income ( loss ) , adjusted diluted 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 selling , general and administrative expenses ( " Adjusted SG & A " ) , adjusted operating income ( loss ) , adjusted net income ( loss ) and adjusted diluted earnings ( loss ) per share exclude the effect of items such as transformation costs , asset impairments , store closure costs , severance , as well as divestiture costs . Results reported as constant currency exclude the impact of fluctuations in foreign currency exchange rates by converting the Company's local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company's current period reported results . The Company's definition and calculation of non - GAAP financial measures may differ from that of other companies . Non - GAAP financial measures should be viewed as supplementing , and not as an alternative or substitute for , the Company's financial results prepared in accordance with GAAP . Certain of the items that may be excluded or included in non - GAAP financial measures may be significant items that could impact the Company's financial position , results of operations or cash flows and should therefore be considered in assessing the Company's actual and future financial condition and performance . 1