Non-GAAP Net Revenue was $144.3 Million
Non-GAAP Net Loss Narrowed to $0.54 Per Diluted Share
Increases Financial Outlook for Fiscal Year 2014
NEW YORK--(BUSINESS WIRE)--Jul. 30, 2013--
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported
better-than-expected financial results for fiscal first quarter 2014,
ended June 30, 2013. In addition, the Company increased its financial
outlook for fiscal year 2014, ending March 31, 2014, and provided its
initial financial outlook for fiscal second quarter 2014, ending
September 30, 2013.
For fiscal first quarter 2014, GAAP net revenue was $142.7 million, as
compared to $226.1 million for fiscal first quarter 2013, which had
benefited from the releases of Max Payne® 3 and Spec Ops®: The
Line. Non-GAAP net revenue was $144.3 million, as compared to $226.1
million for the year-ago period. GAAP net loss from continuing
operations narrowed to $61.9 million, or $0.71 per diluted share, as
compared to $110.8 million, or $1.30 per diluted share, for the year-ago
period. Non-GAAP net loss narrowed to $47.1 million, or $0.54 per
diluted share, as compared to $98.8 million, or $1.16 per diluted share,
for the year-ago period. Both GAAP and Non-GAAP net loss for fiscal
first quarter 2014 include an impairment of capitalized software
development cost related to a 2K title in development totaling $29.6
million, or $0.34 per share, for GAAP, and $29.0 million, or $0.33 per
share, for Non-GAAP. As of June 30, 2013, the Company had cash and cash
equivalents of $646.3 million.
The largest contributors to net revenue in fiscal first quarter 2014
were offerings for Borderlands® 2, NBA® 2K13, Grand
Theft Auto® IV, and BioShock® Infinite. Catalog sales
accounted for 60% of Non-GAAP net revenue led by the Borderlands
franchise, the Grand Theft Auto franchise, and Red Dead
Redemption®. Revenue from digitally delivered content grew 128%
year-over-year and accounted for a record 52% of Non-GAAP net revenue,
driven by offerings for Borderlands 2, the Grand Theft Auto
franchise, NBA 2K13, and BioShock Infinite.
Management Comments
“Our better-than-expected first quarter results demonstrate that the
market remains strong for the highest-quality interactive
entertainment,” said Strauss Zelnick, Chairman and CEO of Take-Two. “We
continue to benefit from robust demand for our recent genre-leading
releases, iconic catalog titles and growing portfolio of innovative
digitally delivered offerings.
“With Grand Theft Auto V launching on September 17th, followed by
the releases of NBA 2K14 and WWE® 2K14, fiscal 2014
is poised to be one of our best years ever. Looking ahead, we are
well-positioned to capitalize on the opportunities presented by the
upcoming launches of the next-generation consoles. We have an extensive
development pipeline, highlighted by proven franchises and
groundbreaking new intellectual property. As a result, we expect to
continue to deliver Non-GAAP profits in fiscal 2015 and for the
foreseeable future.”
Business and Product Highlights
Since April 1, 2013:
-
Take-Two completed a $287.5 million principal amount offering of 1%
convertible senior notes due 2018. This offering enables the Company
to refinance its 4.375% convertible senior notes due 2014 on
substantially improved terms. It also provides Take-Two with
additional capital to take advantage of potential opportunities for
acquisitions, strategic investments, share repurchases and other
initiatives to grow its business and create shareholder value.
Rockstar Games:
-
Released Max Payne 3, the critically acclaimed, gritty action
title, for Mac®.
-
Announced full details of the Special Edition and Collector’s
Edition of Grand Theft Auto V, which are now available for
pre-order from participating retailers. Grand Theft Auto V is
scheduled to launch worldwide on September 17, 2013 for Xbox 360 and
PS3.
2K:
-
Released Sid Meier's Civilization® V: Brave New World, the
second expansion pack for the award-winning Civilization V, for
the PC and Mac.
-
Launched XCOM®: Enemy Unknown for iOS. Developed by Firaxis
Games, this mobile version of one of 2012’s most critically acclaimed
console/PC releases received an average Metacritic score of 92 and
became one of the highest user-rated games to hit the App Store during
the quarter.
-
Released several new free-to-play titles designed exclusively for
smartphones and tablets, including Haunted Hollow™, Sid
Meier’s Ace Patrol™, Beejumbled™ and Turd Birds™.
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Pro Baseball® 2K, our online baseball simulation game created
in partnership with Nexon, launched commercially in Korea.
-
Revealed that the cover art for WWE 2K14 will feature WWE
superstar Dwayne “The Rock®” Johnson. Developed by Yukes, WWE 2K14
will be the next title from the renowned WWE video game franchise and
is scheduled for release for the Xbox 360 and PS3 on October 29, 2013
in North America and November 1, 2013 internationally.
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Announced that 2013 NBA MVP, LeBron James, will make his video game
cover debut on NBA 2K14, the next installment of the
top-selling and top-rated NBA video game simulation franchise*. James
will lead 2K’s groundbreaking NBA 2K franchise into the future
of sports video games with two dynamic and unique experiences for
current and next generation consoles. NBA 2K14 is planned for
launch on October 1, 2013 in North America and October 4, 2013
internationally for the Xbox 360, PS3 and PC. The title will also be
Take-Two’s first offering for the next-generation consoles coming
later this year.
-
Announced that The Bureau: XCOM Declassified™, 2K Marin’s
third-person squad-based tactical shooter, is planned for release on
August 20, 2013 in North America and August 23, 2013 internationally
for the Xbox 360, PS3 and PC. The Bureau will deliver a new
experience within the XCOM universe, telling the origin story
of the clandestine XCOM organization and mankind’s first encounter
with the mysterious alien threat.
* According to 2008-2012 Metacritic.com and The NPD Group estimates
of U.S. retail video game sales through June 2013.
Financial Outlook for Fiscal 2014
Take-Two is increasing its financial outlook for fiscal year 2014 to
reflect its strong first quarter results and outlook for the remainder
of the year. In addition, the Company is providing its initial financial
outlook for its fiscal second quarter ending September 30, 2013 as
follows:
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Second Quarter
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Fiscal Year
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Ending 9/30/2013
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Ending 3/31/2014
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Non-GAAP Net Revenue
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$750 to $800 Million
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$1.775 to $1.875 Billion
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Non-GAAP net income per diluted share (1)
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$1.20 to $1.35
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$2.25 to $2.50
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Stock-based compensation expense per share (2)
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$0.12
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$0.30
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Non-cash amortization of discount on convertible notes per
share
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$0.05
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$0.18
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Non-cash tax expense per share
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$0.00
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$0.01
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Note:
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All Non-GAAP per share amounts are calculated based on a fully
diluted share count that includes an estimate of the weighted
average shares expected to be issued from the conversion for cash
and shares in connection with the previously announced redemption
of the Company’s 4.375% Convertible Senior Notes due 2014 (the
“4.375% Notes”) (approximately 1.0 million shares in the second
quarter ending 9/30/2013 and 1.5 million shares in the fiscal year
ending 3/31/2014), and excludes the 12.93 million shares
underlying the 4.375% Notes.
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1)
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Non-GAAP net income per diluted share for the second quarter
ending 9/30/2013 and fiscal year ending 3/31/2014 exclude the
impact of any debt extinguishment loss or gain which will be
recorded upon the redemption of all of the 4.375% Notes.
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2)
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The Company's stock-based compensation expense for the periods
above includes the cost of approximately 1.9 million shares issued
to ZelnickMedia that are subject to variable accounting. Actual
expense to be recorded in connection with these shares is
dependent upon several factors, including future changes in
Take-Two's stock price.
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Key assumptions and dependencies underlying the Company’s financial
outlook include: the timely delivery of the titles included in this
financial outlook; the ability to develop and publish products that
capture market share for video game and computer entertainment systems;
and stable foreign exchange rates. See also “Cautionary Note Regarding
Forward Looking Statements” below.
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Product Releases
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The following titles were released since April 1, 2013:
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Label
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Title
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Platforms
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Release Date
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2K
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Borderlands 2: Ultimate Vault Hunter Upgrade Pack (DLC)
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Xbox 360, PS3, PC
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April 2, 2013
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2K
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Haunted Hollow
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iOS
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May 2, 2013
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2K
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Pro Baseball 2K
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Nexon (Korea only)
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May 2, 2013
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2K
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Sid Meier’s Ace Patrol
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iOS
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May 9, 2013
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2K
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Borderlands 2: Psycho Pack (DLC)
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Xbox 360, PS3, PC
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May 14, 2013
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2K
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Beejumbled
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iOS, Android
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June 13, 2013
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2K
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XCOM: Enemy Unknown for iOS
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iOS
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June 20, 2013
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Rockstar Games
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Max Payne 3
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Mac
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June 20, 2013
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2K
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Borderlands 2: Tiny Tina’s Assault on Dragon Keep (DLC)
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Xbox 360, PS3, PC
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June 25, 2013
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2K
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Sid Meier's Civilization V: Brave New World
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PC, Mac
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July 9, 2013*
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2K
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Turd Birds
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iOS, Android
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July 11, 2013
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2K
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BioShock Infinite: Clash in the Clouds (DLC)
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Xbox 360, PS3, PC
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July 30, 2013
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*North American release date; international release date typically
follows three days after.
Take-Two's lineup of future titles announced to date includes:
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Label
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Title
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Platforms
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Planned Release
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2K
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The Bureau: XCOM Declassified
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Xbox 360, PS3, PC
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August 20, 2013*
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Rockstar Games
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Grand Theft Auto V
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Xbox 360, PS3
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September 17, 2013
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2K
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NBA 2K14
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Xbox 360, PS3, PC
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October 1, 2013*
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2K
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WWE 2K14
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Xbox 360, PS3
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October 29, 2013*
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2K
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Borderlands 2: Ultimate Vault Hunter Upgrade Pack 2: Digistruct
Peak Challenge (DLC)
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Xbox 360, PS3, PC
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Fall 2013
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2K
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NBA 2K14
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Xbox One, PS4
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Late 2013
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2K
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BioShock Infinite: Burial at Sea (DLC)
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Xbox 360, PS3, PC
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TBA
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*North American release date; international release date typically
follows three days after.
Conference Call
Take-Two will host a conference call today at 4:30 p.m. Eastern Time to
review these results and discuss other topics. The call can be accessed
by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast
of the call will be available by visiting http://ir.take2games.com
and a replay will be available following the call at the same location.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S.
generally accepted accounting principles (GAAP), the Company uses
Non-GAAP measures of financial performance. The Company believes that
these Non-GAAP financial measures, when taken into consideration with
the corresponding GAAP financial measures, are important in gaining an
understanding of the Company’s ongoing business. These Non-GAAP
financial measures also provide for comparative results from period to
period. Therefore, the Company believes it is appropriate to exclude the
impact of certain items as follows:
-
Net effect from deferral in net revenues - the Company defers
revenue and related costs from the sale of certain titles that have
undelivered elements upon the sale of the game and recognizes that
revenue upon the delivery of the undelivered elements. As there is no
impact to the Company’s operating cash flow, management excludes the
impact of deferred net revenue and related costs from its Non-GAAP
financial measures when evaluating the Company's operating
performance, when planning, forecasting and analyzing future periods,
and when assessing the performance of its management team. In
addition, we believe that these Non-GAAP financial measures provide a
more timely indication of trends in our business, provide
comparability with the way our business is measured by analysts, and
provide consistency with industry data sources.
-
Stock-based compensation – the Company does not consider
stock-based compensation charges when evaluating business performance
and management does not contemplate stock-based compensation expense
in its short- and long-term operating plans. As a result, the Company
has excluded such expenses from its Non-GAAP financial measures.
-
Income (loss) from discontinued operations – the Company does
not engage in sales of subsidiaries on a regular basis and therefore
believes it is appropriate to exclude such gains (losses) from its
Non-GAAP financial measures. As the Company is no longer active in its
discontinued operations, it believes it is appropriate to exclude
income (losses) thereon from its Non-GAAP financial measures.
-
Non-cash amortization of discount on convertible notes – the
Company records non-cash amortization of discount on convertible notes
as interest expense in addition to the interest expense already
recorded for coupon payments. The Company excludes the non-cash
portion of the interest expense from its Non-GAAP financial measures
because these amounts are unrelated to its ongoing business operations.
-
Gain (loss) on change in fair value of convertible note hedge and
warrant transactions – the Company entered into unwind agreements
with respect to its convertible note hedge and warrant transactions.
These transactions are now accounted for as derivatives whereby gains
and losses resulting from changes in the fair value are reported in
interest and other, net. The Company excludes the impact of such
transactions when evaluating the Company’s operating performance.
Management does not believe these gains and losses reflect the
Company's primary business, ongoing operating results or future
outlook. As such, the Company believes it is appropriate to exclude
these gains and losses from its Non-GAAP financial measures.
-
Non-cash tax expense for the impact of deferred tax liabilities
associated with tax deductible amortization of goodwill – due to
the nature of the adjustment as well as the expectation that it will
not have any cash impact in the foreseeable future, the Company
believes it is appropriate to exclude this expense from its Non-GAAP
financial measures.
These Non-GAAP financial measures are not intended to be considered in
isolation from, as a substitute for, or superior to, GAAP results. These
Non-GAAP financial measures may be different from similarly titled
measures used by other companies.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a
leading developer, marketer and publisher of interactive entertainment
for consumers around the globe. The Company develops and publishes
products through its two wholly-owned labels Rockstar Games and 2K. Our
products are designed for console systems, handheld gaming systems and
personal computers, including smartphones and tablets, and are delivered
through physical retail, digital download, online platforms and cloud
streaming services. The Company’s common stock is publicly traded on
NASDAQ under the symbol TTWO. For more corporate and product information
please visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their
respective holders.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein which are not historical facts are
considered forward-looking statements under federal securities laws and
may be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "potential," "predicts,"
"projects," "seeks," "will," or words of similar meaning and include,
but are not limited to, statements regarding the outlook for the
Company's future business and financial performance. Such
forward-looking statements are based on the current beliefs of our
management as well as assumptions made by and information currently
available to them, which are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
outcomes and results may vary materially from these forward-looking
statements based on a variety of risks and uncertainties including: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability to develop
other hit titles for current and next-generation platforms, the timely
release and significant market acceptance of our games, the ability to
maintain acceptable pricing levels on our games, our ability to raise
capital if needed and risks associated with international operations.
Other important factors and information are contained in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2013, in
the section entitled "Risk Factors," the Company’s Registration
Statement on Form S-3 filed with the SEC on June 12, 2013, and the
Company's other periodic filings with the SEC, which can be accessed at www.take2games.com.
All forward-looking statements are qualified by these cautionary
statements and apply only as of the date they are made. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.
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TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
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(in thousands, except per share amounts)
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Three months ended June 30,
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2013
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2012
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Net revenue
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$
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142,667
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$
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226,139
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Cost of goods sold:
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Software development costs and royalties
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53,728
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105,004
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Product costs
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30,987
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72,259
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Licenses
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6,187
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8,520
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Internal royalties
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2,940
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948
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Total cost of goods sold
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93,842
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186,731
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Gross profit
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48,825
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39,408
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Selling and marketing
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41,601
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79,007
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General and administrative
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32,860
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43,202
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Research and development
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20,871
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15,312
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Depreciation and amortization
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3,057
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2,769
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Total operating expenses
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98,389
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140,290
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Loss from operations
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(49,564
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)
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(100,882
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)
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Interest and other, net
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(11,233
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)
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(8,049
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)
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Loss from continuing operations before income taxes
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(60,797
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)
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(108,931
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)
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Provision for income taxes
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1,087
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1,841
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Loss from continuing operations
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(61,884
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)
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(110,772
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)
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Loss from discontinued operations, net of taxes
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(30
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)
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(66
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)
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Net loss
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$
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(61,914
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)
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$
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(110,838
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)
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Earnings (loss) per share:
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Continuing operations
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$
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(0.71
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)
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$
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(1.30
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)
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Discontinued operations
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-
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-
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Basic earnings (loss) per share
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$
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(0.71
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)
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$
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(1.30
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)
|
|
|
|
|
|
|
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Continuing operations
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$
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(0.71
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)
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$
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(1.30
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)
|
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Discontinued operations
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-
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-
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Diluted earnings (loss) per share
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$
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(0.71
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)
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$
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(1.30
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)
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Weighted average shares outstanding:
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Basic
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86,992
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|
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85,010
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Diluted
|
|
|
|
86,992
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|
|
|
|
85,010
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|
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Three months ended June 30,
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OTHER INFORMATION
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2013
|
|
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2012
|
|
|
|
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|
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Geographic revenue mix
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United States
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60
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%
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|
|
|
47
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%
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|
International
|
|
|
|
40
|
%
|
|
|
|
53
|
%
|
|
|
|
|
|
|
|
|
|
Platform revenue mix
|
|
|
|
|
|
|
|
Console
|
|
|
|
73
|
%
|
|
|
|
84
|
%
|
|
PC and other
|
|
|
|
25
|
%
|
|
|
|
14
|
%
|
|
Handheld
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
|
2013
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
(Unaudited)
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
646,315
|
|
|
|
$
|
402,502
|
|
|
Accounts receivable, net of allowances of $52,103 and $64,081 at
June 30, 2013 and March 31, 2013, respectively
|
|
|
|
35,202
|
|
|
|
|
189,596
|
|
|
Inventory
|
|
|
|
27,852
|
|
|
|
|
30,218
|
|
|
Software development costs and licenses
|
|
|
|
191,449
|
|
|
|
|
198,955
|
|
|
Convertible note hedge receivable
|
|
|
|
62,759
|
|
|
|
|
-
|
|
|
Prepaid expenses and other
|
|
|
|
56,600
|
|
|
|
|
44,881
|
|
|
Total current assets
|
|
|
|
1,020,177
|
|
|
|
|
866,152
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
|
30,285
|
|
|
|
|
25,362
|
|
|
Software development costs and licenses, net of current portion
|
|
|
|
102,121
|
|
|
|
|
95,241
|
|
|
Goodwill
|
|
|
|
226,289
|
|
|
|
|
225,992
|
|
|
Other intangibles, net
|
|
|
|
8,666
|
|
|
|
|
8,827
|
|
|
Other assets
|
|
|
|
60,567
|
|
|
|
|
56,265
|
|
|
Total assets
|
|
|
$
|
1,448,105
|
|
|
|
$
|
1,277,839
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
25,382
|
|
|
|
$
|
79,932
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
194,635
|
|
|
|
|
228,916
|
|
|
Long-term debt, current portion
|
|
|
|
127,768
|
|
|
|
|
-
|
|
|
Convertible note warrant liability
|
|
|
|
39,354
|
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
|
27,983
|
|
|
|
|
26,919
|
|
|
Liabilities of discontinued operations
|
|
|
|
1,165
|
|
|
|
|
1,232
|
|
|
Total current liabilities
|
|
|
|
416,287
|
|
|
|
|
336,999
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
408,925
|
|
|
|
|
335,202
|
|
|
Other long-term liabilities
|
|
|
|
15,631
|
|
|
|
|
17,087
|
|
|
Liabilities of discontinued operations, net of current portion
|
|
|
|
281
|
|
|
|
|
556
|
|
|
Total liabilities
|
|
|
|
841,124
|
|
|
|
|
689,844
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value, 5,000 shares authorized
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Common stock, $.01 par value, 200,000 shares authorized; 94,738
and 93,743 shares issued and outstanding at June 30, 2013 and
March 31, 2013, respectively
|
|
|
|
947
|
|
|
|
|
937
|
|
|
Additional paid-in capital
|
|
|
|
914,338
|
|
|
|
|
832,460
|
|
|
Accumulated deficit
|
|
|
|
(302,744
|
)
|
|
|
|
(240,830
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
(5,560
|
)
|
|
|
|
(4,572
|
)
|
|
Total stockholders' equity
|
|
|
|
606,981
|
|
|
|
|
587,995
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,448,105
|
|
|
|
$
|
1,277,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(61,914
|
)
|
|
|
$
|
(110,838
|
)
|
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
Amortization and impairment of software development costs and
licenses
|
|
|
|
43,238
|
|
|
|
|
95,488
|
|
|
Depreciation and amortization
|
|
|
|
3,057
|
|
|
|
|
2,769
|
|
|
Loss from discontinued operations
|
|
|
|
30
|
|
|
|
|
66
|
|
|
Amortization and impairment of intellectual property
|
|
|
|
139
|
|
|
|
|
4,209
|
|
|
Stock-based compensation
|
|
|
|
5,947
|
|
|
|
|
7,006
|
|
|
Amortization of discount on Convertible Notes
|
|
|
|
5,346
|
|
|
|
|
4,543
|
|
|
Amortization of debt issuance costs
|
|
|
|
497
|
|
|
|
|
511
|
|
|
Net loss on change in fair value of convertible note hedge and
warrant
|
|
|
|
1,911
|
|
|
|
|
-
|
|
|
Other, net
|
|
|
|
742
|
|
|
|
|
581
|
|
|
Changes in assets and liabilities, net of effect from purchases of
businesses:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
154,394
|
|
|
|
|
(26,672
|
)
|
|
Inventory
|
|
|
|
2,366
|
|
|
|
|
(5,510
|
)
|
|
Software development costs and licenses
|
|
|
|
(42,070
|
)
|
|
|
|
(56,332
|
)
|
|
Prepaid expenses, other current and other non-current assets
|
|
|
|
(14,591
|
)
|
|
|
|
2,105
|
|
|
Deferred revenue
|
|
|
|
1,064
|
|
|
|
|
484
|
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
|
(92,583
|
)
|
|
|
|
29,484
|
|
|
Net cash used in discontinued operations
|
|
|
|
(372
|
)
|
|
|
|
(410
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
7,201
|
|
|
|
|
(52,516
|
)
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Purchase of fixed assets
|
|
|
|
(7,994
|
)
|
|
|
|
(3,290
|
)
|
|
Net cash used in investing activities
|
|
|
|
(7,994
|
)
|
|
|
|
(3,290
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of Convertible Notes
|
|
|
|
246,250
|
|
|
|
|
-
|
|
|
Payment of debt issuance costs
|
|
|
|
(2,043
|
)
|
|
|
|
-
|
|
|
Net cash provided by financing activities
|
|
|
|
244,207
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Effects of foreign exchange rates on cash and cash equivalents
|
|
|
|
399
|
|
|
|
|
2,583
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
243,813
|
|
|
|
|
(53,223
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
402,502
|
|
|
|
|
420,279
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
646,315
|
|
|
|
$
|
367,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
RECONCILIATION OF GAAP TO Non-GAAP MEASURES (Unaudited)
|
|
|
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
GAAP Net Revenues
|
|
|
$
|
142,667
|
|
|
|
$
|
226,139
|
|
|
Net effect from deferral in net revenues
|
|
|
|
1,636
|
|
|
|
|
-
|
|
|
Non-GAAP Net Revenues
|
|
|
$
|
144,303
|
|
|
|
$
|
226,139
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
GAAP Gross Profit
|
|
|
$
|
48,825
|
|
|
|
$
|
39,408
|
|
|
Net effect from deferral in net revenues
|
|
|
|
1,143
|
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
|
1,098
|
|
|
|
|
4,948
|
|
|
Non-GAAP Gross Profit
|
|
|
$
|
51,066
|
|
|
|
$
|
44,356
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations
|
|
|
|
|
|
|
|
GAAP Loss from Operations
|
|
|
$
|
(49,564
|
)
|
|
|
$
|
(100,882
|
)
|
|
Net effect from deferral in net revenues
|
|
|
|
1,143
|
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
|
5,947
|
|
|
|
|
7,006
|
|
|
Non-GAAP Loss from Operations
|
|
|
$
|
(42,474
|
)
|
|
|
$
|
(93,876
|
)
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
|
|
|
|
|
GAAP Net Loss
|
|
|
$
|
(61,914
|
)
|
|
|
$
|
(110,838
|
)
|
|
Net effect from deferral in net revenues
|
|
|
|
1,143
|
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
|
5,947
|
|
|
|
|
7,006
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
5,346
|
|
|
|
|
4,543
|
|
|
Net loss on change in fair value of convertible note hedge and
warrant
|
|
|
|
1,911
|
|
|
|
|
-
|
|
|
Non-cash tax expense
|
|
|
|
482
|
|
|
|
|
473
|
|
|
Discontinued operations
|
|
|
|
30
|
|
|
|
|
66
|
|
|
Non-GAAP Net Loss
|
|
|
$
|
(47,055
|
)
|
|
|
$
|
(98,750
|
)
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) Per Share
|
|
|
|
|
|
|
|
GAAP earnings (loss) per share
|
|
|
$
|
(0.71
|
)
|
|
|
$
|
(1.30
|
)
|
|
Non-GAAP earnings (loss) per share
|
|
|
$
|
(0.54
|
)
|
|
|
$
|
(1.16
|
)
|
|
|
|
|
|
|
|
|
|
|
Number of diluted shares used in computation
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
86,992
|
|
|
|
|
85,010
|
|
|
Non-GAAP
|
|
|
|
86,992
|
|
|
|
|
85,010
|
|
Source: Take-Two Interactive
Take-Two Interactive Software, Inc.
Investor Relations:
Henry
A. Diamond, 646-536-3005
Senior Vice President
Investor
Relations & Corporate Communications
Henry.Diamond@take2games.com
or
Corporate
Press:
Alan Lewis, 646-536-2983
Vice President
Corporate
Communications & Public Affairs
Alan.Lewis@take2games.com
|
