GameStop 2004 Annual Report Download - page 83

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GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
of the Series A Preferred Stock shall have the right, voting as a class, to elect two of the Company's Directors.
In the event of any merger, consolidation or other transaction in which the Company's Common Stock is
exchanged, each share of Series A Preferred Stock will be entitled to receive one thousand times the amount
and type of consideration received per share of the Company's Common Stock. At January 29, 2005 there
were no shares of Series A Preferred Stock outstanding.
20. Unaudited Quarterly Financial Information
The following table sets forth certain unaudited quarterly consolidated statement of operations informa-
tion for the Ñscal years ended January 29, 2005 and January 31, 2004. The unaudited quarterly information
includes all normal recurring adjustments that management considers necessary for a fair presentation of the
information shown.
Fiscal Year Ended January 29, 2005 Fiscal Year Ended January 31, 2004
1st 2nd 3rd 4th 1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
(In thousands)
Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $371,736 $345,593 $416,737 $708,740 $321,741 $305,674 $326,042 $625,381
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 104,642 106,286 118,959 179,413 84,640 88,032 97,783 162,490
Operating earnings(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,770 12,545 19,852 55,980 10,689 10,849 17,891 64,955
Net earnings(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,678 7,672 12,059 34,517 6,611 6,606 10,693 39,557
Net earnings per Class A and Class B
common share Ì basic(3) ÏÏÏÏÏÏÏÏ 0.12 0.14 0.22 0.68 0.12 0.12 0.19 0.71
Net earnings per Class A and Class B
common share Ì diluted(3)ÏÏÏÏÏÏÏ 0.11 0.13 0.21 0.64 0.11 0.11 0.18 0.67
(1) Includes the following pre-tax charges:
‚ $2,750 in the Ñrst quarter of the Ñscal year ended January 29, 2005 attributable to the California labor
litigation settlement,
‚ $2,800 in the third quarter of the Ñscal year ended January 29, 2005 attributable to the professional fees
related to the spin-oÅ by Barnes & Noble of the Company's Class B common shares, and
‚ $5,373 in the fourth quarter of the Ñscal year ended January 29, 2005 attributable to correcting the
Company's method of accounting for rent expense and depreciation expense on leasehold improve-
ments for those leases that do not contain a renewal option.
(2) Includes the following after-tax charges:
‚ $1,708 in the Ñrst quarter of the Ñscal year ended January 29, 2005 attributable to the California labor
litigation settlement,
‚ $1,739 in the third quarter of the Ñscal year ended January 29, 2005 attributable to the professional fees
related to the spin-oÅ by Barnes & Noble of the Company's Class B common shares, and
‚ $3,312 in the fourth quarter of the Ñscal year ended January 29, 2005 attributable to correcting the
Company's method of accounting for rent expense and depreciation expense on leasehold improve-
ments for those leases that do not contain a renewal option.
(3) Includes the following charges per basic and diluted share:
‚ $0.03 per basic and diluted share in the Ñrst quarter of the Ñscal year ended January 29, 2005
attributable to the California labor litigation settlement,
‚ $0.03 per basic and diluted share in the third quarter of the Ñscal year ended January 29, 2005
attributable to the professional fees related to the spin-oÅ by Barnes & Noble of the Company's
Class B common shares, and
F-27