-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PAWJQmSXrTlj1y04vaum7OUcH6Sm5KhAiKPp2uwThiTuTDrsm4HtHLrK8Umg1+0e 10DiPhwgpuJn+bcCKK8JiQ== 0000096289-03-000046.txt : 20030722 0000096289-03-000046.hdr.sgml : 20030722 20030722084016 ACCESSION NUMBER: 0000096289-03-000046 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030722 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RADIOSHACK CORP CENTRAL INDEX KEY: 0000096289 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 751047710 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05571 FILM NUMBER: 03795414 BUSINESS ADDRESS: STREET 1: 100 THROCKMORTON ST STREET 2: STE 1700 CITY: FORT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8174153700 MAIL ADDRESS: STREET 1: 100 THROCKMORTON SUITE 1700 CITY: FORTH WORTH STATE: TX ZIP: 76102 FORMER COMPANY: FORMER CONFORMED NAME: TANDY CORP /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: TANDY LEATHER CO DATE OF NAME CHANGE: 19681216 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN HIDE & LEATHER CO DATE OF NAME CHANGE: 19660825 8-K 1 k033103.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 22, 2003 RADIOSHACK CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-5571 75-1047710 (State or other (Commission (I.R.S. Employer jurisdiction of File Number) Identification No.) incorporation) 100 Throckmorton Street, Suite 1800, Fort Worth, Texas 76102 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (817) 415-3700 Item 7. Financial Statements and Exhibits (c) Exhibits Exhibit No. 99.1 Press Release, dated July 22, 2003. Item 9. Regulation FD Disclosure In accordance with SEC Release No. 33-8216, the following information, intended to be furnished under "Item 12. Results of Operations and Financial Condition," is instead furnished under "Item 9. Regulation FD Disclosure." On July 22, 2003, RadioShack Corporation (the "Company") issued a press release reporting its results of operations for the second quarter of 2003. A copy of the press release is attached hereto as Exhibit 99.1. In the press release, the Company utilized non-GAAP financial measures that adjusted the Company's net income for the second quarter of 2002 prepared in accordance with generally accepted accounting principles (GAAP) and also presented the Company's free cash flow. Management does not intend the presentation of these non-GAAP financial measures to be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In the press release, the Company adjusted its net income for the second quarter of 2002 to eliminate the effect of two litigation settlements in that quarter. Management believes that the presentation of adjusted net income for this quarter is useful to investors because it provides a means of evaluating the Company's operating performance and results on a comparable basis through the adjustment of amounts that, while they may possibly recur from time to time, do not typically recur on a quarterly basis. Furthermore, in preparing operating plans and forecasts, management relies, in part, on trends in the Company's historical results, exclusive of these items, and provides its forecasts to investors on this basis. The Company also utilized a non-GAAP financial measure in the press release to describe the Company's free cash flow. The Company's management believes that free cash flow is an appropriate indication of the Company's ability to fund share repurchases, repay maturing debt, change dividend payments or fund other uses of capital that management believes will enhance stockholder value. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized this 22nd day of July, 2003. RADIOSHACK CORPORATION /s/ Mark C. Hill ------------------------------------------ Mark C. Hill Senior Vice President, Corporate Secretary and General Counsel EXHIBIT INDEX Exhibit No. 99.1 Press Release, dated July 22, 2003. Exhibit 99.1 July 22,2003 RSH-2003-031 For further information contact: James M. Grant, Laura Moore, Senior Director, Investor Relations Senior Vice President, (817) 415-7833 Chief Communications Officer Or (817) 415-3300 Leah M. King Media.relations@radioshack.com Director, Investor Relations ------------------------------ (817) 415-2909 investor.relations@radioshack.com - --------------------------------- RadioShack Corporation Announces Second Quarter 2003 Net Income of $57.5 Million, up 11% Fort Worth, Texas - RadioShack Corporation (NYSE: RSH) today announced second quarter net income of $57.5 million or $0.34 per diluted share for the quarter ended June 30, 2003, compared to net income of $51.8 million or $0.28 per diluted share for the quarter ended June 30, 2002. In 2002, the company also reported adjusted second quarter net income of $53.2 million or $0.29 per diluted share due to the effect of two litigation settlements. Comparable store sales for the second quarter 2003 were up 3% compared to the prior year. Total sales in the second quarter 2003 were also up 3% to $1,025 million, compared to total sales of $998 million for the previous year. Wireless communications department sales for the second quarter of 2003 were up 14%. "RadioShack's second quarter financials were primarily the result of striking a prudent balance between sales and profitability, as executed by our merchants and field associates," said Leonard Roberts, chairman and chief executive officer of RadioShack Corporation. "Strong sales in the wireless and toy departments combined with excellent profitability improvement in the computer and power-technical departments, made for very respectable financial results." Inventory turnover through the second quarter of 2003 was 2.6 times versus 2.5 a year ago. Free cash flow(1) was $221 million for the six-months ended June 30, 2003. Financial Guidance o For the third quarter of 2003, RadioShack anticipates generating diluted earnings per share of $0.27 - $0.29. o For the full year 2003, RadioShack anticipates earnings per share to be at least $1.63, representing a 15% increase over its full year adjusted 2002 earnings per share. The new 2003 forecast is $0.03 higher than previously anticipated and represents similar operating income assumptions with a slightly more favorable outlook for lines below operating income. The full year assumptions include: o Approximately 3.5% to 4.0% growth in sales o Wireless communications department growth will be notably higher than earlier estimates of 3% to 4% o Collectively, the decline in the home entertainment, wired communications, and radio communications departments will be more pronounced than earlier expectations of "down slightly to flat." o Gross margin improvement of 0 to 20 basis points o SG&A growth of 3.5% to 4.0% o Average year-end diluted shares of approximately 168 million. Today at 9:00 a.m. ET, management will host a conference call for interested investors followed by a question and answer period. The public is invited to listen to the call live on the Internet at www.radioshackcorporation.com on the Investor Relations page. The call will be replayed on the Web site until October 19, 2003 at 11:59 p.m. ET. Statements made in this news release which are forward-looking statements involve risks and uncertainties and are indicated by words such as "anticipates," "approximately," and other similar words or phrases. These uncertainties include, but are not limited to, economic conditions, product demand, competitive products and pricing, availability of products, the regulatory environment and other risks indicated in filings with the S.E.C. such as RadioShack's most recent Form 10-K and 10-Q. Fort Worth-based RadioShack Corporation (NYSE: RSH) is the nation's most trusted consumer electronics specialty retailer of wireless communications, electronic parts, batteries and accessories as well as other digital technology products and services. With more than 7,000 outlets nationwide, it is estimated that 94 percent of all Americans live or work within five minutes of a RadioShack store or dealer. The company's knowledgeable sales associates and brand position, "You've Got Questions, We've Got Answers," support RadioShack's mission to demystify technology in every neighborhood in America. For more information on the company, visit the RadioShack Corporation Web site at www.radioshackcorporation.com. For more information on RadioShack products and services, visit its e-commerce Web site at www.radioshack.com. - -------------------- 1 Free cash flow is defined as net cash from operating activities minus additions to property, plant and equipment (a.k.a. capital expenditures) minus dividends paid. RADIOSHACK CORPORATION AND SUBSIDIARIES Consolidated Income Statement (Unaudited)
Three Months Ended Increase/ Six Months Ended Increase/ June 30, (Decrease) June 30, (Decrease) ----------------------- ------------- ----------------------- ------------- (In millions, except per share amounts) 2003 2002 2003 vs 2002 2003 2002 2003 vs 2002 - --------------------------------------- ---------- ---------- ------------- ---------- ---------- ------------- Net sales and operating revenues $1,025.0 $998.1 $26.9 $2,095.3 $2,032.5 $62.8 Cost of products sold 503.8 488.0 15.8 1,046.7 1,002.7 44.0 ---------- ---------- ------------- ---------- ---------- ------------- Gross profit 521.2 510.1 11.1 1,048.6 1,029.8 18.8 ---------- ---------- ------------- ---------- ---------- ------------- Operating expenses: Selling, general and administrative (1) 406.6 421.3 (14.7) 814.4 814.5 (0.1) Depreciation and amortization 22.9 24.3 (1.4) 45.5 48.9 (3.4) ---------- ---------- ------------- ---------- ---------- ------------- Total operating expenses 429.5 445.6 (16.1) 859.9 863.4 (3.5) ---------- ---------- ------------- ---------- ---------- ------------- Operating income 91.7 64.5 27.2 188.7 166.4 22.3 Interest income 8.0 2.1 5.9 9.5 3.9 5.6 Interest expense (9.8) (10.7) 0.9 (19.4) (21.5) 2.1 Other income (2) 0.7 27.7 (27.0) 3.1 27.7 (24.6) ---------- ---------- ------------- ---------- ---------- ------------- Income before income taxes 90.6 83.6 7.0 181.9 176.5 5.4 Provision for income taxes 33.1 31.8 1.3 67.8 67.1 0.7 ---------- ---------- ------------- ---------- ---------- ------------- Net income 57.5 51.8 5.7 114.1 109.4 4.7 ========== ========== ============= ========== ========== ============= Net income per common share: Basic $0.34 $0.29 $0.05 $0.67 $0.61 $0.06 ========== ========== ============= ========== ========== ============= Diluted $0.34 $0.28 $0.06 $0.67 $0.59 $0.08 ========== ========== ============= ========== ========== ============= Shares used in computing earnings per common share: Basic 168.9 174.4 (5.5) 170.1 175.6 (5.5) ========== ========== ============= ========== ========== ============= Diluted 169.8 181.5 (11.7) 170.8 182.5 (11.7) ========== ========== ============= ========== ========== ============= (1) - Q2 2002 SG&A includes $29.9 million for settlement of class action lawsuit. (2) - Q2 2002 Other income includes $27.7 million from favorable litigation settlement.
RADIOSHACK CORPORATION AND SUBSIDIARIES Net Income Reconciliation (Unaudited)
Three Months Ended Increase/ Six Months Ended Increase/ June 30, (Decrease) June 30, (Decrease) ----------------------- ------------- ----------------------- ------------- (In millions, except per share amounts) 2003 2002 2003 vs 2002 2003 2002 2003 vs 2002 ---------- ---------- ------------- ---------- ---------- ------------- Net income - consolidated $57.5 $51.8 $5.7 $114.1 $109.4 $4.7 ---------- ---------- ------------- ---------- ---------- ------------- Adjustments: Settlement of class action lawsuit - 29.9 (29.9) - 29.9 (29.9) Favorable litigation settlement - (27.7) 27.7 - (27.7) 27.7 --------- --------- ------------- ---------- ---------- ------------- Total adjustments before tax - 2.2 (2.2) - 2.2 (2.2) Provision for income taxes - (0.8) 0.8 - (0.8) 0.8 ---------- ---------- ------------- ---------- ---------- ------------- Total adjustments - 1.4 (1.4) - 1.4 (1.4) ---------- ---------- ------------- ---------- ---------- ------------- Net income - adjusted $57.5 $53.2 $4.3 $114.1 $110.8 $3.3 ========== ========== ============= ========== ========== =============
RADIOSHACK CORPORATION AND SUBSIDIARIES Adjusted Income Statement (Unaudited)
Three Months Ended Increase/ Six Months Ended Increase/ June 30, (Decrease) June 30, (Decrease) ----------------------- ------------- ----------------------- ------------- (In millions, except per share amounts) 2003 2002 2003 vs 2002 2003 2002 2003 vs 2002 ---------- ---------- ------------- ---------- ---------- ------------- Net sales and operating revenues $1,025.0 $998.1 $26.9 $2,095.3 $2,032.5 $62.8 Cost of products sold 503.8 448.0 15.8 1,046.7 1,002.7 44.0 ---------- ---------- ------------- ---------- ---------- ------------- Gross profit 521.2 510.1 11.1 1,048.6 1,029.8 18.8 ---------- ---------- ------------- ---------- ---------- ------------- Operating expenses: Adjusted selling, general and administrative 406.6 391.4 15.2 814.4 784.6 29.8 Depreciation and amortization 22.9 24.3 (1.4) 45.5 48.9 (3.4) ---------- ---------- ------------- ---------- ---------- ------------- Total adjusted operating expenses 429.5 415.7 13.8 859.9 833.5 26.4 ---------- ---------- ------------- ---------- ---------- ------------- Adjusted operating income 91.7 94.4 (2.7) 188.7 196.3 (7.6) Interest income 8.0 2.1 5.9 9.5 3.9 5.6 Interest expense (9.8) (10.7) 0.9 (19.4) (21.5) 2.1 Adjusted other income 0.7 - 0.7 3.1 - 3.1 ---------- ---------- ------------- ---------- ---------- ------------- Adjusted income before income taxes 90.6 85.8 4.8 181.9 178.7 3.2 Provision for income taxes 33.1 32.6 0.5 67.8 67.9 (0.1) ---------- ---------- ------------- ---------- ---------- ------------- Adjusted net income $ 57.5 $ 53.2 $ 4.3 $ 114.1 $ 108.5 $ 3.3 ========== ========== ============= ========== ========== ============= Adjusted net income per common share: Basic $ 0.34 $ 0.30 $ 0.04 $ 0.67 $ 0.62 $ 0.05 ========== ========== ============= ========== ========== ============= Diluted $ 0.34 $ 0.29 $ 0.05 $ 0.67 $ 0.59 $ 0.08 ========== ========== ============= ========== ========== ============= Shares used in computing adjusted earnings per common share: Basic 168.9 174.4 (5.5) 170.1 175.6 (5.5) ========== ========== ============= ========== ========== ============= Diluted 169.8 181.5 (11.7) 170.8 182.5 (11.7) ========== ========== ============= ========== ========== =============
RADIOSHACK CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) June 30, December 31, June 30, (In millions) 2003 2002 2002 ------------- ------------ ------------- Assets Cash and cash equivalents $ 524.3 $ 446.5 $ 529.1 Accounts and notes receivable, net 137.5 206.1 151.8 Inventories 811.1 971.2 830.6 Other current assets 88.0 83.1 86.6 ------------- ------------ ------------- Total current assets 1,560.9 1,706.9 1,598.1 Property, plant and equipment, net 422.0 421.6 398.0 Other assets 98.4 99.4 115.4 ------------- ------------ ------------- Total assets $2,081.3 $2,227.9 $2,111.5 ============= ============ ============= Liabilities and Stockholders' Equity Short-term debt $ - $ 36.0 $ 71.3 Accounts payable 284.1 312.6 225.7 Accrued expenses 253.6 318.7 279.6 Income taxes payable 140.8 160.9 126.8 ------------- ------------ ------------- Total current liabilities 678.5 828.2 703.4 Long-term debt, excluding current maturities 590.5 591.3 582.3 Other non-current liabilities 80.3 80.3 71.4 ------------- ------------ ------------- Total liabilities 1,349.3 1,499.8 1,357.1 ------------- ------------ ------------- Stockholders' equity 732.0 728.1 754.4 ------------- ------------ ------------- Total liabilities and stockholders' equity $2,081.3 $2,227.9 $2,111.5 ============= ============ ============= RADIOSHACK CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (In millions) 2003 2002 ---------- ---------- Cash flows from operating activities: Net income $114.1 $109.4 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 45.5 48.9 Provision for credit losses and bad debts - 2.3 Other items 9.4 4.2 Changes in operating assets and liabilities: Receivables 68.7 123.9 Inventories 160.1 119.2 Other current assets (7.9) 0.8 Accounts payable, accrued expenses and income taxes payable (121.3) (93.3) ---------- ---------- Net cash provided by operating activities 268.6 315.4 ---------- ---------- Cash flows from investing activities: Additions to property, plant and equipment (47.7) (34.0) Proceeds from sale of property, plant and equipment 0.1 4.1 Other investing activities (0.2) (0.8) ---------- ---------- Net cash used in investing activities (47.8) (30.7) ---------- ---------- Cash flows from financing activities: Purchases of treasury stock (127.1) (163.4) Sales of treasury stock to employee stock plans 18.8 22.7 Proceeds from exercise of stock options 1.3 7.5 Dividends paid - (1.5) Proceeds from financing obligations - 32.1 Changes in short-term borrowings, net (16.0) - Repayments of long-term borrowings (20.0) (54.4) ---------- ---------- Net cash used in investing activities (143.0) (157.0) ---------- ---------- Net increase in cash and cash equivalents 77.8 127.7 Cash and cash equivalents, beginning of period 446.5 401.4 ---------- ---------- Cash and cash equivalents, end of period $524.3 $529.1 ========== ========== -----END PRIVACY-ENHANCED MESSAGE-----