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spk_0: reading and welcome to game stops second quarter cesspool twenty twenty one earnings conference call at this time all participants are now listen only mode i had a reminder that conference call it being recorded and will be archived for two months on game starts investor relations website this call will include forward looking statements which are subject to the harris risks and uncertainties that could cause actual results to differ materially from expectations any such statements should be considered in conjunction with the cautionary statements and the safe harbor statement and the earnings release and risk factors discussed and reports filed with the fcc he gives up assumes no obligation to up the any of these forward looking statements or information a reconciliation and other information regarding non gaap financial measures discuss on the call can be found in the company's earning release issued earlier today as well the investor section of the game stop website please note that the company will not be hosting a cute a session as part of today's call now i would like to turn the call over to the company's chief executive officer matt for furlong
spk_1: thank you it's good to be with everyone today
spk_2: i want to start by begging our entire team for all their hard work given the pace at which the organization is changing i've had the chance to meet a number of team members across our stores fulfillment centers and home office
spk_1: and i look forward to meeting more in the coming weeks and months we appreciate how everyone is stepping up and embracing games gop new operating principles could do after from up in june a refresh board of directors and new management team have settled in we now have unified leadership fully focused on too long term goal the lighting customers and delivering value for stockholders in addition the focusing on long term opportunities we took a number of steps over the past quarter to fortify the company's infrastructure and technology
spk_2: we are focused on positioning game stop to scale while obsessing over competitive pricing expansive selection and fat shipping
spk_1: our actions included continuing to add technology talent across the organization including individuals with experience and ecommerce you i you acts operation and supply chain we also continued to expand our fulfillment network by adding a five hundred thirty thousand square foot facility in reno nevada this new facility which is expected to be operational next year or position of the further expand selection and expedited shipping with this edition the company fulfillment network will span both coast of the continental us for the first time
spk_2: our new seven hundred thousand square foot facility and york pennsylvania also began shipping orders during the quarter
spk_1: we grew our catalog by adding new products and leading brand the crop consumer electronics collectible toys and more we signed a lease on a new customer care facility in south florida and started adding talent to that team as we continue to build out customer care operations in the us lastly we further strengthened our balance sheet and capital position by raising more than one point one billion dollars in net proceeds from the june a t m program
spk_2: let me now turned to our financial results for the quarter
spk_1: net sales increased twenty five point six percent to one point one eight three billion dollars compared to nine hundred forty two million dollars during the same period and twenty twenty we achieve this growth all overcoming a roughly nine percent reduction and our global to lead you to do densification efforts and ongoing store closures across certain international markets due to the pandemic we believe net sales are the primary metric by which stockholders should have that the company's execution as dna was three hundred seventy eight point nine million dollars or thirty two percent of sales compared to three hundred forty eight point two million dollars or thirty seven percent of sales and last year second quarter
spk_2: adjusting for severance and certain other costs are just sg and day with three hundred seventy two point three million dollars or thirty one point five percent of sale compared to three hundred thirty six point nine million dollars or thirty five point eight percent of sale during the same period last year
spk_1: the four hundred thirty basis points of leverage was primarily driven by story opening after widespread shut down due to the pandemic in queue to twenty twenty we reported a net loss of sixty one point six million dollars or eighty five cents per diluted share compared to a net loss of one hundred eleven point three million dollars or locked per diluted share of one dollar seventy one cents in the prior year second quarter are adjusted net loss was fifty five million dollars or seventy six cents per diluted share compared to adjusted net loss of ninety two million dollars are lots of one dollar forty two cents per diluted share and the fiscal twenty twenty second quarter our global start out with four thousand six hundred forty two at the end of the quarter turning to the balance sheet we end of the quarter with cash and restricted cache of one point seven seven five billion dollars which is just over one billion dollars higher than the end of the second quarter last year
spk_2: and we announced in june
spk_1: we raised approximately one point one billion dollars in net proceeds to the issuance of five million shares of common stock under and a t m we intend to continue using those proceeds for general corporate purposes as well as for invest the and growth initiatives and maintaining a strong balance sheet
spk_2: as a result of the a gm total shares outstanding are now approximately seventy five point nine million at the end of the quarter we had no borrowings under our asset based revolving credit facility and no long term debt other than a forty seven point five million dollar low interest unsecured term loan associated with the french government's response to covered nineteen
spk_1: debt levels compared to the second quarter of last year were down four hundred twenty four point seven million dollars
spk_2: capital expenditures for the quarter were thirteen point five million dollars bringing year to date capital investments to twenty eight point two million a number we anticipate will increase as the company continues him that thing and growth initiative in the second quarter cash flow from operations with an outflow of eleven point five million dollars compared to an inflow of one hundred ninety two point eight million dollars during the same period last year
spk_1: largely due to the investment in inventory we are making to drive sales growth
spk_2: in terms of our outlook we're not providing formal guidance at the time
spk_1: thank you again for your support and interest and games stuff
spk_0: this concludes today's conference call thank you for your participation
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