Earnings Call Excerpt
GameStop Corporation (GME)
Q4 2005 Earnings Conference Call
March 21, 2006, 11:00am EST
Executives
Dick Fontaine, Chairman and CEO
Dan DeMatteo, Vice Chairman and Chief Operating Officer.
David Carlson, Executive Vice President and Chief Financial Officer
Analysts
Elizabeth Osher, Citigroup
Everett Williams, Harris Nesbit
Arvin Bacha, Stern Eddie.
Tony Gigas, Piper Jaffray.
Evan Wilson, Pacific Crest Securities
Bill Armstrong, CL King and Associates
David McGee, Sun Trust, Robinson, Humphries
Operator:
Please stand by we’re about to begin. Good morning. Welcome to GameStop corporation’s 2005 4th quarter and fiscal year end earnings results conference call. Today’s call is being recorded. At the conclusion of the announcement a question and answer session will be conducted electronically. Anyone wishing to ask a question may signal us by pressing the star key followed by the digit 1. If you find your question has been asked, you may remove yourself by pressing the star key followed by the digit 2. Once again, that’s star 2. I would like to remind you that this call is being 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. At this time I would like to turn the call over to Dick Fontaine, Chairman and Chief Executive Officer of GameStop Corporation. Please go ahead sir.
Presentation:
Dick Fontaine, Chairman and CEO.
Thank you and welcome to GameStop’s 2005 and year end conference call. We’re pleased to have you with us today. With me are Dan DeMatteo, GameStop’s Vice Chairman and Chief Operating Officer and David Carlson our Executive VP and Chief Financial Officer. This morning we released our year end numbers which were very satisfying and a reflection of a great deal of hard work on the part of our management team. Fiscal 2005 was clearly a huge win for GameStop and all of our shareholders.
The completion in October of our merger with EB games was obviously a major milestone. It not only has tactically been almost instantly beneficial but has put us in the superb strategic position to capture more of a growing market worldwide.
For the year, we achieved record sales, increased our gross margins, even though very low margin hardware sales grew by almost 5% as a percentage of sales, and kept our expenses well under control, even as we added new stores at a record pace.
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