GameStop Corp (GME) 2022 Q3 法說會逐字稿

Good afternoon, and welcome to the GameStop Third Quarter 2022 Earnings Conference Call.

下午好，歡迎來到 GameStop 2022 年第三季度收益電話會議。

Please note that certain statements made during the call constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are described in the company's earnings press release and its filings with the SEC. The forward-looking statements today are made as of the date of this call, and the company does not undertake any obligation to update the forward-looking statements.

請注意，電話會議期間作出的某些陳述構成前瞻性陳述，這些陳述是根據經修訂的 1995 年《私人證券訴訟法》的安全港條款作出的。此類前瞻性陳述受到已知和未知的風險和不確定性的影響，這些風險和不確定性可能導致實際結果與此類陳述存在重大差異。這些風險和不確定性在公司的收益新聞稿及其提交給美國證券交易委員會的文件中有所描述。今天的前瞻性陳述是截至本次電話會議之日作出的，公司不承擔任何更新前瞻性陳述的義務。

I will now turn the call over to GameStop's CEO, Matt Furlong.

我現在將把電話轉給 GameStop 的首席執行官 Matt Furlong。

Good afternoon, everyone. I want to begin by acknowledging the dedication and focus of the teams managing our stores, fulfillment centers and e-commerce platforms. As the holiday season begins, they are going the extra mile and working exceptionally hard to deliver for our customers. I also want to take the opportunity to acknowledge our stockholders who continue to demonstrate unrivaled enthusiasm and support. As we work to transform the company and do something unprecedented in the retail sector, that sustained passion is a major tailwind for us.

大家下午好。首先，我要感謝管理我們的商店、運營中心和電子商務平台的團隊的奉獻精神和專注。隨著假期的開始，他們更加努力地工作，為我們的客戶提供服務。我還想藉此機會感謝我們的股東，他們繼續表現出無與倫比的熱情和支持。當我們努力改造公司並在零售領域做一些前所未有的事情時，這種持續的熱情對我們來說是一個主要的推動力。

Similar to last quarter, I'm going to spend some time at the outset of this call, recapping where we've been, where we are now and where we're looking to go. Throughout 2021 and 2022, we were extremely focused on repairing our decayed foundation, reestablishing a culture of operational intensity and setting the right long-term priorities. This translated to building a strong balance sheet, modernizing a crumbling infrastructure and putting together teams that are now able to operate with the nimbleness and efficiency our stockholders and customers expect.

與上個季度類似，我將在本次電話會議開始時花一些時間，回顧我們去過的地方、我們現在的位置以及我們希望去的地方。在整個 2021 年和 2022 年，我們非常專注於修復我們腐爛的基礎，重建一種運營強度的文化，並設定正確的長期優先事項。這轉化為建立強大的資產負債表，對搖搖欲墜的基礎設施進行現代化改造，並組建團隊，這些團隊現在能夠以我們的股東和客戶期望的敏捷和高效運作。

Today, we're in the process of aligning corporate costs through our go-forward needs after completing the majority of necessary upgrades to our systems, fulfillment capabilities and overall foundation. A large portion of our cost cuts will stem from reductions in corporate head count that have been made during the back half of this calendar year. In some cases, individuals who helped us complete key initiatives have left on their own accord and are not being replaced. In other cases, we've made the decision to eliminate or streamline parts of the organization where we can leverage the work completed over the past 18 months to operate with increased efficiency. We now have a firm understanding of the resources required to pursue opportunities in gaming as well as high potential growth categories like collectibles and pre-owned businesses.

今天，在完成對我們的系統、履行能力和整體基礎的大部分必要升級後，我們正在根據我們的未來需求調整公司成本。我們削減成本的很大一部分將源於本日曆年下半年的公司裁員。在某些情況下，幫助我們完成關鍵舉措的個人已經自願離職並且沒有被替換。在其他情況下，我們已決定取消或精簡組織的某些部分，以便我們可以利用過去 18 個月完成的工作來提高運營效率。我們現在對在遊戲以及收藏品和二手業務等高潛力增長類別中尋求機會所需的資源有了深刻的了解。

Looking ahead, we have 2 overarching priorities: achieving profitability in the near term; and driving pragmatic growth over the long term. Now that the necessary investments have been made and we have identified the aforementioned opportunity set, we're going to be very judicious with respect to how we allocate capital to the core business. Maintaining a sizable cash position will maximize our optionality and keep us strong against the challenging economic backdrop. If a strategic asset or complementary business becomes available in the right price range, we want to be able to explore those acquisitions.

展望未來，我們有兩個首要任務：在短期內實現盈利；並推動長期的務實增長。既然已經進行了必要的投資並且我們已經確定了上述機會集，我們將在如何將資本分配給核心業務方面非常明智。保持可觀的現金頭寸將使我們的選擇權最大化，並使我們在充滿挑戰的經濟背景下保持強大。如果戰略資產或互補業務在合適的價格範圍內可用，我們希望能夠探索這些收購。

As a result of these steps and our planning, we believe GameStop is well positioned heading into 2023. We stand to benefit from our strong cash position, lack of debt, healthy inventory mix, shrinking cost structure and disciplined focus on categories where we have competitive positioning.

由於這些步驟和我們的計劃，我們相信 GameStop 在進入 2023 年時處於有利地位。我們將受益於我們強大的現金狀況、缺乏債務、健康的庫存組合、收縮的成本結構以及對我們具有競爭力的類別的嚴格關注定位。

We are also fortunate that the company's exposure to digital assets has been very modest, thanks to risk management efforts. The company has proactively minimized exposure to cryptocurrency risk throughout the year and does not currently hold a material balance of any token. Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in the space.

我們也很幸運，由於風險管理方面的努力，該公司對數字資產的敞口非常小。該公司全年主動將加密貨幣風險敞口降至最低，目前不持有任何代幣的實質餘額。儘管我們仍然相信數字資產在遊戲世界中具有長期潛力，但我們沒有也不會在該領域冒有意義的股東資本風險。

Let me now turn to our financial results for Q3. Net sales were $1.186 billion for the quarter compared to $1.297 billion in the prior year's third quarter. Approximately $50 million of the decline is attributable to FX. Sales attributable to new and expanded brand relationships remained strong. Likewise, sales in the collectibles category remained strong on a year-to-date basis.

現在讓我談談我們第三季度的財務業績。本季度淨銷售額為 11.86 億美元，而去年第三季度為 12.97 億美元。大約 5000 萬美元的下降歸因於外匯。新的和擴展的品牌關係帶來的銷售額依然強勁。同樣，收藏品類別的銷售額從年初至今依然強勁。

SG&A was $387.9 million or 32.7% of sales compared to $421.5 million or 32.5% of sales in last year's third quarter. Notably, SG&A as a percentage of revenue was down on a sequential basis from 34.1% in Q2 of this year. We've also taken additional steps in recent weeks to further reduce SG&A on a go-forward basis now that significant improvements have been made to the core business. We reported a net loss of $94.7 million or $0.31 per diluted share compared to a net loss of $105.4 million or $0.35 in the prior year's third quarter. As with SG&A, we saw a healthy reduction in our net loss on a sequential basis versus Q2 of this year.

SG&A 為 3.879 億美元，佔銷售額的 32.7%，而去年第三季度為 4.215 億美元，佔銷售額的 32.5%。值得注意的是，SG&A 佔收入的百分比從今年第二季度的 34.1% 環比下降。鑑於核心業務已取得顯著改善，我們最近幾週還採取了額外措施，進一步減少 SG&A。我們報告的淨虧損為 9470 萬美元或每股攤薄收益 0.31 美元，而去年第三季度的淨虧損為 1.054 億美元或 0.35 美元。與 SG&A 一樣，與今年第二季度相比，我們的淨虧損環比健康下降。

Turning to the balance sheet. We ended the quarter with cash, cash equivalents and marketable securities of $1.042 billion. We continue to maintain a strong cash position while sustaining strong in-stock levels for the busy holiday season. With respect to inventory, we have strengthened our position in recent months by divesting a small percentage of merchandise that was acquired late in 2021 and early in 2022. Divestitures occurred in categories seeing soft customer demand over multiple quarters. Inventory was $1.131 billion at the close of Q3 compared to $1.141 billion at the close of the prior year's third quarter.

轉向資產負債表。本季度末，我們擁有 10.42 億美元的現金、現金等價物和有價證券。我們繼續保持強勁的現金頭寸，同時為繁忙的假期保持強勁的庫存水平。在庫存方面，我們最近幾個月通過剝離在 2021 年底和 2022 年初收購的一小部分商品來鞏固我們的地位。剝離發生在多個季度客戶需求疲軟的類別中。第三季度末庫存為 11.31 億美元，而去年第三季度末為 11.41 億美元。

At the close of the reporting period, we had no borrowings under our ABL facility and no debt other than a low interest unsecured term loan associated with the French government's response to COVID-19. Capital expenditures for the quarter were $13 million, up $0.5 million from last year's third quarter. We anticipate CapEx will remain at similar or reduced levels now that the company has largely completed its period of heavy investment. In the third quarter, cash flow provided by operations was $177.3 million compared to an outflow of $293.7 million during the same period last year. In terms of an outlook, we're not providing formal guidance at this time. It is worth reiterating, however, that our goal is to achieve profitability in the near term.

在報告期結束時，我們的 ABL 貸款下沒有借款，除了與法國政府對 COVID-19 的反應相關的低息無擔保定期貸款外，沒有任何債務。本季度的資本支出為 1300 萬美元，比去年第三季度增加了 50 萬美元。由於公司已基本完成其大量投資期，我們預計資本支出將保持在類似或降低的水平。第三季度，運營提供的現金流為 1.773 億美元，而去年同期為流出 2.937 億美元。就前景而言，我們目前不提供正式指導。然而，值得重申的是，我們的目標是在短期內實現盈利。

I want to finish by reiterating what we've said in the past. We're attempting to accomplish something unprecedented in the retail sector. We're seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy into a retailer that meets customers' needs through our stores, e-commerce properties and emerging sales channels. This path carries risk and is taking time, but it is the path we are on. With that said, GameStop is a stronger business today than at any time in the recent past. I'll leave it there for this quarter. Thank you.

最後，我想重申一下我們過去說過的話。我們正試圖在零售領域完成一些前所未有的事情。我們正在尋求將一家瀕臨破產的傳統實體企業轉變為一家通過我們的商店、電子商務資產和新興銷售渠道滿足客戶需求的零售商。這條道路有風險，需要時間，但這是我們正在走的道路。話雖如此，今天的 GameStop 業務比過去任何時候都更強大。這個季度我會把它留在那裡。謝謝你。

This concludes today's conference. Thank you for your participation. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連接。