RadioShack Reports Financial Results for First Quarter 2013

         RadioShack Reports Financial Results for First Quarter 2013

CEO Joseph C. Magnacca Says 100 Day Plan is On Track

PR Newswire

FORT WORTH, Texas, April 23, 2013

FORT WORTH,Texas, April 23, 2013 /PRNewswire/ -- RadioShack Corporation
(NYSE: RSH) today reported results for the first quarter ended March 31, 2013,
and Joseph C. Magnacca, chief executive officer, remarked on the initial
priorities and initiatives underway.

Mr. Magnacca said, "In the few weeks that I have been with the company, I have
distilled several key learnings that have led me to focus on an initial set of
priorities to begin driving our turnaround: building the right management
team, reinvigorating the store experience, and jumpstarting our powerful
brand. While I inherited an experienced management team, there were a couple
of important roles to fill. Last week, we announced the hiring of a new chief
marketing officer and a new senior vice president of store concepts."

Mr. Magnacca continued, "I have also studied the existing retail format and
store experience and believe there is a significant opportunity to refresh and
improve how we present the brand, how we deliver on our brand promise, and how
our customer experiences shopping with us. I know we have some gaps and
improvements that need to take place. We are rolling out a new brand image,
and you will start seeing changes in our branding and advertising soon. For
our physical stores, work is underway and will begin with remodeling strategic
New York City locations with a new look and feel over the next few weeks. This
work will also touch our online and mobile channels over time so our customers
receive a compelling, continuous and seamless experience however and whenever
they shop with us. So, we're making good progress and the 100 day plan is on

"RadioShack has a uniquely strong franchise. We have a powerful brand that
has stood the test of time over nine decades and has a large, loyal customer
following. We have strong relationships with leading vendors and a portfolio
of trusted private brands that offer highly innovative technology products. We
have a vast network of more than 4,300 company-operated stores and
approximately 1,000 dealer outlets across the U.S. We have an established
international presence in more than 25 countries, including 270
company-operated stores in Mexico. Most importantly, we have approximately
30,000 employees who are genuinely focused on delivering solutions for our

Mr. Magnacca concluded, "I believe in this brand. I am confident that we can
renew its relevancy and expand the loyal customer base that chooses to shop
with us every day. We are building a compelling long-term strategic vision and
plan that plays to our strengths and is centered around the customer. We
believe there is an opportunity to drive sales growth over time in each of our
platforms: mobility, signature and consumer electronics. The pace of our
initiatives will vary, but each of the initiatives will contribute to bringing
RadioShack back to the forefront of our customers' minds and to improving our
financial performance and profitability."


  oTotal net sales and operating revenues were $849 million, compared to $913
    million last year. Comparable store sales were down 5.7%. Our signature
    platform generated the fifth consecutive quarter of sales growth in our
    U.S. company-operated stores.
  oGross profit was $337 million, compared with $370 million last year.
    Gross profit performance was negatively impacted by a decline in postpaid
    units sold versus last year.
  oGross margin rate excluding our postpaid wireless business improved.
    Gross margin rate in total was 40% of net sales, a decline of 80 basis
    points versus last year, and was negatively impacted by an increase in the
    mix of higher-priced smartphones that have an overall lower margin rate.
  oSelling, general and administrative (SG&A) expenses were $338 million, or
    40% of net sales, compared with $345 million last year. The decrease of $7
    million was driven primarily by one-time benefits this year.
  oOperating loss was $19 million, compared to operating income of $7 million
    last year.
  oNet loss was $43 million, or $0.43 per diluted share, compared to net loss
    of $8 million last year. Net loss would have been $35 million, or $0.35
    per diluted share, excluding the Target Mobile centers that contributed
    net loss of $8.5 million to the consolidated net loss.
  oRadioShack ceased operating the Target Mobile centers prior to March 31,
    2013. Results for this segment have been classified as discontinued
    operations in the financial statements.
  oThe company continues to have a strong balance sheet and total liquidity
    of $820 million at the end of the quarter. The company repurchased $70.5
    million in principal value of the 2013 Convertible Notes during the first


The company ended the first quarter with total liquidity of $820 million,
including cash and cash equivalents of $435 million and $385 million of
available credit under the $450 million asset-based revolving credit facility
that expires in January 2016.

During the quarter, the company repurchased $70.5 million in principal value
of the 2013 Convertible Notes due August 1, 2013, for a total purchase price
of $69.5 million.

The company's total debt was $712 million at March 31, 2013. The 2013
Convertible Notes, which had a par value of $375 million when issued, had a
remaining aggregate principal amount of $216 million at March 31, 2013. The
balance of the company's debt comes due between 2016 and 2019.

Capital spending totaled $5 million in the first quarter compared to $11
million last year.

Note: All comparisons are versus the same period of the prior fiscal year
unless otherwise noted.


RadioShack will host a live webcast of its investor conference call at 9 a.m.
EDT today. The Internet broadcast may be accessed from the investor relations
home page of the RadioShack corporate website at

An archived replay of the conference call will be available in the investor
relations section of the corporate website, A
telephone replay will be available beginning at approximately 11 a.m. EDT
today and will remain available until midnight EDT on May 8, 2013. The
telephone replay can be accessed by calling toll-free at (888) 286-8010, or
via toll call at (617) 801-6888. The replay pass code is 53173005.

For more information about performance, refer to the RadioShack Corporation
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on April 23, 2013.


This press release contains forward-looking statements, as referenced in the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements reflect management's current views and projections regarding
economic conditions, the retail industry environment and company performance.
These statements can be identified by the fact that they include words like
"anticipate," "believe," "estimate," "expect," "intend," "project,"
"guidance," "plan," "outlook" and other words with similar meaning. We
specifically disclaim any duty to update any of the information set forth in
this press release, including any forward-looking statements. These
statements involve a number of risks and uncertainties that could cause our
actual results to differ materially from the results discussed in our
forward-looking statements. Factors that could cause our actual results to
differ materially from the results discussed in our forward-looking statements
include, but are not limited to, our ability to execute and the effectiveness
of our 2013 initiatives; the underperformance or loss of certain of our
important vendors, such as our wireless carrier providers, or breaches by them
of our agreements with them; difficulties associated with our transition to an
outsourced arrangement for the production of products we previously
manufactured at our Chinese manufacturing plant; an adverse impact on our
sales or profitability due to our transition to such an outsourced
arrangement; an adverse impact on our sales or profitability due to changes
wireless carrier providers make to their customer credit requirements,
frequency of upgrade eligibility, or other operational matters, and the
timing, completeness, and accuracy of information we receive about such
changes; a decline in our gross margin due to customer demand for lower
margin mobile devices, such as smartphones and tablets; overall sales
performance; economic conditions; product demand; expense levels; competitive
activity; interest rates; changes in the company's financial condition;
availability of products and services and other risks associated with the
company's vendors and service providers; the regulatory environment; and other
factors affecting the retail category in general. Additional information
regarding these and other factors is included in the company's filings with
the SEC, including its most recent Annual Report on Form 10-K for the year
ended Dec. 31, 2012.


RadioShack (NYSE: RSH) is a leading national retailer of innovative mobile
technology products and services, as well as products related to personal and
home technology and power supply needs. RadioShack^® offers consumers a
targeted assortment of wireless phones and other electronic products and
services from leading national brands, exclusive private brands and major
wireless carriers, all within a comfortable and convenient shopping
environment. RadioShack employs approximately 30,000 knowledgeable and
helpful sales experts globally. RadioShack's retail network includes more
than 4,300 company-operated stores in the United States, 270 company-operated
stores in Mexico, and approximately 1,000 dealer and other outlets worldwide.
For more information on RadioShack Corporation, please visit; to purchase items online, please RadioShack^® is a registered trademark licensed by
RadioShack Corporation.

Analyst and Investor Contact: News Media Contact:
Bruce Bishop                  Media Relations
(817) 415-3400                (817) 415-3300


Condensed Consolidated Statements of Comprehensive Income (unaudited)
                                               Three Months Ended
                                               March 31,
(In millions, except per share amounts)        2013            2012
Net sales and operating revenues               $   849.0     $   913.3
Cost of products sold                          511.7           543.2
Gross profit                                   337.3           370.1
Operating expenses:
 Selling, general and administrative         337.9           345.3
 Depreciation and amortization               16.5            17.2
 Impairment of long-lived assets             1.4             0.5
Total operating expenses                       355.8           363.0
Operating (loss) income                        (18.5)          7.1
Interest income                                0.4             0.5
Interest expense                               (15.0)          (13.1)
Other loss                                     (0.3)           --
Loss from continuing operations before         (33.4)          (5.5)
income taxes
Income tax expense (benefit)                   1.4             (0.8)
Loss from continuing operations                (34.8)          (4.7)
Discontinued operations, net of income         (8.5)           (3.3)
Net loss                                       $   (43.3)   $     (8.0)
Basic and diluted net loss per share:
 Loss per share from continuing              $    (0.35)  $    (0.05)
 Loss per share from discontinued            (0.08)          (0.03)
 Net loss per share                          $    (0.43)  $    (0.08)
Shares used in computing net loss per
 Basic and diluted                           100.4           99.8
Comprehensive loss                             $   (39.0)   $     (2.4)


Condensed Consolidated Balance Sheets (unaudited)
                              March 31,        December 31,      March 31,
(In millions)
                              2013             2012              2012
Current assets:
 Cash and cash equivalents  $            $     535.7  $    
                              434.9                             566.4
 Accounts and notes         278.6            452.5             236.6
receivable, net
 Inventories                926.5            908.3             730.2
 Other current assets       83.0             85.4              131.3
 Total current assets    1,723.0          1,981.9           1,664.5
Property, plant and           220.6            239.0             260.5
equipment, net
Goodwill, net                 38.5             36.6              40.3
Other assets, net             43.1             41.6              52.7
Total assets                  $    2,025.2  $    2,299.1   $   
Liabilities and Stockholders'
Current liabilities:
 Current maturities of      $            $     278.7  $      
long-term debt                212.8                              --
 Accounts payable           301.8            435.6             252.6
 Accrued expenses and other 229.7            263.9             237.7
current liabilities
 Total current            744.3            978.2             490.3
Long-term debt, excluding     499.1            499.0             674.9
current maturities
Other non-current liabilities 220.4            223.2             113.1
 Total liabilities       1,463.8          1,700.4           1,278.3
 Stockholders' equity    561.4            598.7             739.7
Total liabilities and         $    2,025.2  $    2,299.1   $   
stockholders' equity                                             2,018.0


Consolidated Statements of Cash Flows (unaudited)
                                             Three Months Ended
                                             March 31,
(In millions)                                2013             2012
Cash flows from operating activities:
 Net loss                                  $    (43.3)  $     (8.0)
Adjustments to reconcile net loss to net
cashprovided by operating activities:
  Depreciation and amortization        20.0             20.9
  Amortization of discounts on         3.4              4.3
long-term debt
  Impairment of long-lived assets      1.4              0.5
 Stock-based compensation             1.9              1.9
 Other non-cash items                 0.1              2.2
 Changes in assets and liabilities:
 Accounts and notes receivable           174.7            124.8
 Inventories                             (16.2)           16.8
 Other current assets                    3.0              13.4
 Accounts payable                        (89.5)           (75.5)
 Accrued expenses and other              (38.6)           (52.8)
Net cash provided by operating activities    16.9             48.5
Cash flows from investing activities:
 Additions to property, plant and          (5.1)            (11.2)
 Proceeds from sale of property, plant and 6.2              --
 Changes in restricted cash                --               (28.0)
 Other investing activities                (2.9)            --
Net cash used in investing activities        (1.8)            (39.2)
Cash flows from financing activities:
 Principal amount of long-term debt        (70.5)           --
 Payments of dividends                     --               (12.4)
 Changes in cash overdrafts                (45.4)           (22.2)
Net cash used in financing activities        (115.9)          (34.6)
Net decrease in cash and cash equivalents    (100.8)          (25.3)
Cash and cash equivalents, beginning of      535.7            591.7
Cash and cash equivalents, end of period     $    434.9    $    566.4


Segment Reporting (unaudited)
                                                Three Months Ended

                                                March 31,
(In millions)                                   2013           2012
Net sales and operating revenues:
U.S. RadioShack company-operated stores         $   770.1    $   833.6
Other                                           78.9           79.7
                                                $   849.0    $   913.3
Operating (loss) income:
U.S. RadioShack company-operated stores         $    61.2  $    91.3
Other                                           8.3            8.4
                                                69.5           99.7
Unallocated                                     (88.0)         (92.6)
Operating (loss) income                         (18.5)         7.1
Interest income                                 0.4            0.5
Interest expense                                (15.0)         (13.1)
Other loss                                      (0.3)          --
Loss from continuing operations before          $   (33.4)  $     (5.5)
income taxes

SOURCE RadioShack Corporation

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