Earnings Call Excerpt
Gamestop Corp. (GME)
Q2 2006 Earnings Conference Call
August 17, 2006, 11:00 a.m. EST
Executives:
Dick Fontaine, Chairman and CEO
Dan DeMatteo, Vice Chairman and Chief Operating Officer
Steven R. Morgan, President
David Carlson, Executive Vice President and Chief Financial Officer
Analysts:
Elizabeth Osur, Citigroup
David Magee, Suntrust Robinson Humphrey
Michael Wallace, UBS
Arvind Bhatia, Sterne, Agee & Leach
Tom Andrews (Edward Williams), BMO Capital Markets
Anthony Gikas, Piper Jaffray
Presentation
Operator
Please stand by we are about to begin. Good morning and welcome to GameStop Corporation’s Second Quarter 2006 Earnings Results Conference Call. Today’s call is being recorded. At the conclusion of the announcement the question and answer session will be conducted electronically. Anyone wishing to ask a question may signal us by pressing the ?* key? followed by the digit ?1.? If you find your question has been asked, you may remove yourself by pressing the ?# key.? I would like to remind you that this call is covered by the Safe Harbor disclosure contained in GameStop’s public documents and is the property of GameStop. It is not for rebroadcast or use by any other party without the prior written consent of GameStop. And at this time I’d like to turn the call over to Dick Fontaine, Chairman and Chief Executive Officer of GameStop Corporation. Please go ahead sir.
Dick Fontaine, Chairman and CEO
Thank you. Good morning and welcome to GameStop’s Second Quarter Conference Call. With me this morning are Dan DeMatteo, our Vice Chairman and COO; Steven Morgan, our President; and David Carlson, our Executive Vice President and Chief Financial Officer.
David will be taking you through the numbers in just a moment, Steve will follow up and will be commenting on the completed integration of our merger, and Dan is going to be discussing the drivers, the potential for the third quarter in the second half of the year, and then as usual we’ll wrap the session up by taking question.
This morning we released our second quarter numbers which were superb and combined with the strong first quarter performance has gotten us off to a great first half, in what’s going to be a very strong year for GameStop. During the quarter all aspects of the business were solid and I really want to stress that -- all aspects of the business were solid. We exceeded our sales goals, surpassed our comp store forecast, increased our gross margin, reduced the SG&A expense, we’re more efficient in our inventory control, and improved our cash on hand position at the end of the quarter. That’s about as close to a grand slam as I think you could imagine in any given quarter.
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