GameStop Corp (GME) 2021 Q4 法說會逐字稿

Greetings, and welcome to GameStop's Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded and will be archived for 2 months on GameStop's Investor Relations website.

問候，歡迎來到 GameStop 的第四季度和 2021 財年收益電話會議。 （操作員說明）提醒一下，本次電話會議正在錄音，並將在 GameStop 的投資者關係網站上存檔 2 個月。

This call will include forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Any such statement should be considered in conjunction with the cautionary statements and the safe harbor statement in the earnings release and risk factors discussed in the reports filed with the SEC. GameStop assumes no obligation to update any of these forward-looking statements or information.

本次電話會議將包括前瞻性陳述，這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期存在重大差異。任何此類聲明都應與收益發布中的警示聲明和安全港聲明以及提交給美國證券交易委員會的報告中討論的風險因素一起考慮。 GameStop 不承擔更新任何這些前瞻性陳述或信息的義務。

A reconciliation and other information regarding non-GAAP financial measures discussed on the call can be found in the company's earnings release issued earlier today, as well as on the Investors section of the GameStop website.

電話會議上討論的非 GAAP 財務措施的對賬和其他信息可在公司今天早些時候發布的收益報告以及 GameStop 網站的“投資者”部分中找到。

Please note that the company will not be hosting a question-and-answer session as part of today's call.

請注意，公司不會在今天的電話會議中主持問答環節。

Now I would like to turn the call over to the company's Chief Executive Officer, Matt Furlong.

現在我想把電話轉給公司的首席執行官 Matt Furlong。

Thank you. I want to begin by thanking all of our team members for their dedication and hard work over the past fiscal year. It was an important period of foundation building, significant investment and cultural change at GameStop. While we are still in the early stages of our transformation, we believe the steps taken over the last several months will be key value drivers for quarters and years down the road.

謝謝你。首先，我要感謝我們所有的團隊成員在過去一個財政年度的奉獻和辛勤工作。這是 GameStop 基礎建設、重大投資和文化變革的重要時期。雖然我們仍處於轉型的早期階段，但我們相信過去幾個月採取的步驟將成為未來幾個季度和幾年的關鍵價值驅動因素。

The first year of our transformation was about starting to turn GameStop into a customer-obsessed technology company, one that has wider offerings, more competitive pricing, faster shipping, stronger customer service and an easier shopping experience.

我們轉型的第一年開始將 GameStop 轉變為一家以客戶為中心的技術公司，提供更廣泛的產品、更具競爭力的價格、更快的運輸、更強大的客戶服務和更輕鬆的購物體驗。

With that said, here is a brief recap of what changed in fiscal year 2021: we installed a new management team comprised of technology veterans and introduced a more equity-focused executive compensation structure to increase alignment with stockholders; we refreshed the Board with stockholders and individuals who possess records of value creation, while reducing individual director compensation; we ended relationships with high-priced external consultants who were costing the company millions of dollars per year; we hired hundreds of new individuals with e-commerce, operations and technology experience, while eliminating many redundant and unnecessary roles; we recapitalized the company's balance sheet after raising approximately $1.67 billion in capital; we expanded our product catalog to seize more market share in areas such as PC gaming, personal electronics and virtual reality; we invested in our fulfillment network by standing up new facilities on the East Coast in York, Pennsylvania, and on the West Coast in Reno, Nevada; we invested in our systems and tech stack after years of decay and neglect; we invested in U.S.-based customer service and established a new facility in South Florida; we invested in a dedicated blockchain team and new capabilities to drive the development of initiatives such as our NFT marketplace, which we expect to launch by the end of the second quarter; we see significant long-term potential in the more than $40 billion market for NFTs.

話雖如此，這裡簡要回顧一下 2021 財年發生的變化：我們組建了一個由技術資深人士組成的新管理團隊，並引入了更加註重股權的高管薪酬結構，以加強與股東的一致性；我們用擁有價值創造記錄的股東和個人更新了董事會，同時降低了個人董事薪酬；我們結束了與每年花費公司數百萬美元的高價外部顧問的關係；我們聘請了數百名具有電子商務、運營和技術經驗的新人，同時消除了許多多餘和不必要的角色；在籌集了大約 16.7 億美元的資本後，我們對公司的資產負債表進行了資本重組；我們擴大產品目錄，在 PC 遊戲、個人電子產品和虛擬現實等領域搶占更多市場份額；我們通過在賓夕法尼亞州約克的東海岸和內華達州里諾的西海岸建立新設施來投資我們的履行網絡；經過多年的衰敗和忽視，我們投資了我們的系統和技術堆棧；我們投資了美國的客戶服務，並在南佛羅里達建立了一個新設施；我們投資了一個專門的區塊鏈團隊和新的能力來推動我們的 NFT 市場等計劃的發展，我們預計將在第二季度末推出；我們看到超過 400 億美元的 NFT 市場具有巨大的長期潛力。

In keeping with our focus on the customer, we are going to continue taking steps to create new offerings and make targeted bets in blockchain gaming and cryptocurrency. We recognize that our special connectivity with gamers provides us a unique opportunity in the Web 3.0 and digital asset world. We have learned from the mistakes of the past decade when GameStop failed to adapt to the future of gaming.

為了與我們對客戶的關注保持一致，我們將繼續採取措施創建新產品並在區塊鏈遊戲和加密貨幣方面進行有針對性的賭注。我們認識到，我們與遊戲玩家的特殊聯繫為我們提供了在 Web 3.0 和數字資產世界中的獨特機會。我們從過去十年 GameStop 未能適應遊戲未來的錯誤中吸取了教訓。

It is important to stress that GameStop had become such a cyclical business and so capital starved that we have had to rebuild it from within. We've also had to change the way we assess revenue opportunities by starting to embrace, rather than run from, the new frontiers of gaming. Although there is a lot more hard work and necessary execution in front of us, GameStop is a completely different company today than it was at the beginning of the fiscal year.

需要強調的是，GameStop 已成為如此週期性的業務，資金匱乏，以至於我們不得不從內部重建它。我們還必須改變評估收入機會的方式，開始擁抱而不是逃避遊戲的新領域。儘管擺在我們面前的還有很多艱苦的工作和必要的執行，但今天的 GameStop 與本財年初完全不同。

Shifting to the fourth quarter, I want to briefly touch on a few areas. We continued to establish new and expanded brand relationships, including with PC gaming companies such as Alienware, Corsair and Lenovo. This helped grow our PC gaming sales by 150% for the full year. We also formed a partnership with Razer to support sustained growth in PC gaming and console accessories such as controllers and headsets. We now have more than 100 Razer SKUs, including the company's latest laptop. We grew PowerUp Rewards Pro members by 31.8% on a year-over-year basis, taking total membership to approximately 5.8 million. We launched a redesigned app, which includes an enhanced user interface, improved scalability for a larger product catalog and more functionality to support exclusive offers and promotions. We entered into a partnership with Immutable X that is intended to support the development of our NFT marketplace and provide up to $150 million in IMX tokens upon achievement of certain milestones. We have commenced discussions with an array of layer 1s and layer 2s about prospective partnerships that include development benefits and financial incentives. If and when more deals come to fruition, we will announce them.

轉到第四季度，我想簡要談談幾個方面。我們繼續建立新的和擴大的品牌關係，包括與 Alienware、Corsair 和聯想等 PC 遊戲公司。這幫助我們全年的 PC 遊戲銷售額增長了 150%。我們還與 Razer 建立了合作夥伴關係，以支持 PC 遊戲和控制台配件（例如控制器和耳機）的持續增長。我們現在擁有 100 多個 Razer SKU，包括該公司最新的筆記本電腦。我們的 PowerUp Rewards Pro 會員同比增長 31.8%，會員總數達到約 580 萬。我們推出了重新設計的應用程序，其中包括增強的用戶界面、更大產品目錄的可擴展性以及支持獨家優惠和促銷的更多功能。我們與 Immutable X 建立了合作夥伴關係，旨在支持我們 NFT 市場的發展，並在實現某些里程碑後提供高達 1.5 億美元的 IMX 代幣。我們已經開始與一系列第 1 層和第 2 層討論潛在的合作夥伴關係，包括發展利益和財務激勵。如果有更多交易達成，我們將宣布。

Let me now turn to our financial results. Net sales were $2.25 billion for the quarter compared to $2.12 billion in the fourth quarter of 2020 and $2.19 billion in the fourth quarter of 2019. This was the first quarter in which our growth topped prepandemic levels. For the full year, net sales were $6.01 billion compared to $5.09 billion for fiscal year 2020. As indicated in the past, long-term sales growth is the primary metric by which we believe stockholders should assess our execution.

現在讓我談談我們的財務業績。本季度的淨銷售額為 22.5 億美元，而 2020 年第四季度為 21.2 億美元，2019 年第四季度為 21.9 億美元。這是我們的增長首次超過大流行前水平的第一季度。全年淨銷售額為 60.1 億美元，而 2020 財年為 50.9 億美元。如過去所示，長期銷售增長是我們認為股東應評估我們執行情況的主要指標。

SG&A was $538.9 million for the quarter or 23.9% of sales compared to $419.1 million or 19.7% of sales in last year's fourth quarter. We reported a net loss of $147.5 million, or $1.94 per diluted share compared to a net income of $80.3 million, or income per diluted share of $1.18 in the prior year fourth quarter. For the full year, SG&A was $1.71 billion compared to $1.51 billion for the last fiscal year. We had a net loss of $381.3 million for fiscal year 2021 relative to $215.3 million for fiscal year 2020.

本季度 SG&A 為 5.389 億美元，佔銷售額的 23.9%，而去年第四季度為 4.191 億美元，佔銷售額的 19.7%。我們報告淨虧損 1.475 億美元，或每股攤薄收益 1.94 美元，而去年第四季度的淨收入為 8030 萬美元，或每股攤薄收益 1.18 美元。全年，SG&A 為 17.1 億美元，而上一財年為 15.1 億美元。相對於 2020 財年的 2.153 億美元，我們 2021 財年的淨虧損為 3.813 億美元。

Turning to the balance sheet. We finished the year with cash and cash equivalents of over $1.27 billion, roughly $760 million higher than the company's cash position at the close of last year. We are maintaining a sizable cash position, even while continuing to invest heavily in inventory to drive pragmatic growth and meet demand amidst global supply chain issues. We intend to build up our cash position by the end of fiscal year 2022, assuming the operating environment permits.

轉向資產負債表。今年結束時，我們的現金和現金等價物超過 12.7 億美元，比去年年底公司的現金頭寸高出約 7.6 億美元。即使在繼續大力投資庫存以推動務實增長並滿足全球供應鏈問題的需求的同時，我們仍保持著可觀的現金頭寸。假設經營環境允許，我們打算在 2022 財年末建立我們的現金頭寸。

At the end of the year, we had no borrowings under our ABL facility and no debt other than a $44.6 million low-interest, unsecured term loan associated with the French government's response to COVID-19. Capital expenditures for the quarter were $21.3 million, bringing full year CapEx to $62 million. CapEx may remain elevated as we make pragmatic investments in our infrastructure and tech.

到年底，我們的 ABL 貸款沒有借款，除了與法國政府應對 COVID-19 相關的 4460 萬美元低息無擔保定期貸款外，我們沒有任何債務。本季度的資本支出為 2130 萬美元，使全年資本支出達到 6200 萬美元。隨著我們對基礎設施和技術進行務實的投資，資本支出可能會保持較高水平。

In the fourth quarter, cash flow from operations was an outflow of $110.3 million compared to an inflow of $164.8 million during the same period last year. In order to meet customer demand throughout the holiday season, we maintained a higher inventory level. We believe our inventory level remains prudent given our operating headwinds and increased customer demand. We ended the year with $915 million in inventory compared to $602.5 million at the close of fiscal year 2020. To put things into context, the combination of supply chain issues and the Omicron variant had a sizable impact on this past year's holiday season. We made the conscious decision to lean in and absorb higher costs in order to meet customer demand. We felt and continue to feel that investing in our customers and rebuilding brand loyalty right now is in the company's best interest over the long term.

第四季度，運營現金流為流出 1.103 億美元，而去年同期為流入 1.648 億美元。為了滿足整個假期期間的客戶需求，我們維持較高的庫存水平。鑑於我們的經營逆風和客戶需求的增加，我們認為我們的庫存水平保持謹慎。到今年年底，我們的庫存為 9.15 億美元，而 2020 財年末的庫存為 6.025 億美元。綜合來看，供應鏈問題和 Omicron 變體的結合對過去一年的假期產生了相當大的影響。為了滿足客戶的需求，我們有意識地決定傾斜並承擔更高的成本。我們感到並繼續認為，從長遠來看，現在投資於我們的客戶並重建品牌忠誠度符合公司的最佳利益。

With respect to an outlook, we're not delivering guidance at this time. We do not feel it's prudent to provide guidance during the early stages of our transformation and with the current global backdrop. What we are comfortable saying is that we anticipate growth across our stores, e-commerce properties and blockchain gaming offerings.

關於前景，我們目前不提供指導。在我們轉型的早期階段和當前的全球背景下，我們認為提供指導並不謹慎。我們可以放心地說，我們預計我們的商店、電子商務資產和區塊鏈遊戲產品都會增長。

In closing, we know the investments and sacrifices made in fiscal year 2021 will take time to yield tangible value, but we are completely comfortable with that. If GameStop is going to once again become a market leader in gaming and also realize new revenue opportunities across emerging communities, we needed to lay a lasting foundation rather than taking shortcuts. That is what we did over the past year as we started to transform into a technology company.

最後，我們知道在 2021 財年所做的投資和犧牲需要時間才能產生有形價值，但我們對此完全滿意。如果 GameStop 想要再次成為遊戲市場的領導者，並在新興社區中實現新的收入機會，我們需要打下持久的基礎，而不是走捷徑。這就是我們在過去一年開始轉型為一家科技公司時所做的事情。

I'll wrap up there for today. As always, we appreciate the enthusiasm and support from our customers, employees and stockholders.

今天我就到此結束。一如既往，我們感謝客戶、員工和股東的熱情和支持。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。