-----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, IrMFOanYSd5xaANwagesak2vYTl5HxsN5TJJFGR0f5khnZ4GMNl7HgRZo+LZtGFQ 5n/2BuoyWW+o1EFIc3pjtw== 0000096289-05-000033.txt : 20050719 0000096289-05-000033.hdr.sgml : 20050719 20050719082927 ACCESSION NUMBER: 0000096289-05-000033 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050719 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050719 DATE AS OF CHANGE: 20050719 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: 05960510 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 k071905.htm

UNITED STATES 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 19, 2005

RADIOSHACK CORPORATION
(Exact name of registrant as specified in its charter)


Delaware
(State or Other
Jurisdiction of
Incorporation)
1-05571
(Commission
File Number)
75-1047710
(IRS Employer
 Identification No.)


Mail Stop CF3-203, 300 RadioShack Circle, Fort Worth, Texas 76102
(Address of principal executive offices) (Zip Code)


(Registrant’s telephone number, including area code)  (817)415-3700


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

_           Written communications pursuant to Rule 425 under the Securities Act

_          Soliciting material pursuant to Rule 14a-12 under the Exchange Act

_          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

_          Pre-commencement communications pursuant to Rule 13e-4(c) under the  Exchange Act


Item 2.02 Results of Operations and Financial Condition.

On July 19, 2005 RadioShack Corporation (the “Company”) issued a press release containing certain information with respect to its second quarter 2005 financial results. A copy of the press release is attached as Exhibit 99.1.

In the press release, the Company utilized a non-GAAP financial measure to present the Company’s estimated 2005 free cash flow guidance. 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. Management does not intend the presentation of this non-GAAP financial measure to be considered in isolation or as a substitute for measures prepared in accordance with GAAP.

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 19th day of July, 2005.

RADIOSHACK CORPORATION

 /s/ David S. Goldberg
 ------------------------------------------
 David S. Goldberg
 Vice President - Law,
 Corporate Secretary and
 Acting General Counsel

EXHIBIT INDEX

Exhibit No.

99.1         Press Release, dated July 19, 2005.

          Exhibit 99.1

         July 19, 2005
RSH-2005-024


For further information contact:
James M. Grant,
Senior Director, Investor Relations
(817) 415-7833
investor.relations@radioshack.com
Kay Jackson,
Senior Director, Public Relations
(817) 415-3300
Media.relations@radioshack.com

RadioShack Corporation Announces Second Quarter Financial Results

Fort Worth, Texas — July 19, 2005 — RadioShack Corporation (NYSE: RSH) today announced net income of $52.3 million or $0.33 per diluted share for the quarter ended June 30, 2005 versus net income of $68.3 million or $0.42 per diluted share for the quarter ended June 30, 2004.

Total sales in the second quarter of 2005 were up 4% to $1,092.2 million, compared to total sales of $1,053.8 million for the previous year. Second quarter 2005 comparable store sales were down 1% versus the prior year.

“Our profit decline in the second quarter was driven by lower comp store sales and more specifically by weakness in our core store wireless business,” said David Edmondson, president and chief executive officer. “Nevertheless, non-wireless product lines and key initiatives, such as our store standard operating procedures and new store format, are performing well and this gives us confidence in the future.”

Total wireless sales were up 2% due to growth in RadioShack’s kiosk channel offset by a decline in sales of wireless in its company stores. Most of the company’s seven merchandise platforms realized both a sales and gross profit dollar increase for the second quarter. Selling, general and administrative expenses were up, as planned, 7% due primarily to new growth channels such as our kiosks.

RadioShack reiterated its fiscal year 2005 diluted earnings per share guidance of $1.80 to $1.90. The annual guidance is predicated upon a number of year-over-year assumptions.

“Our outlook for the year reflects a rebound in same store sales driven primarily by rapidly growing categories which tend to carry lower gross margins than the company average. We also expect continued progress in our close-to-core growth channels,” Edmondson said.

In addition, RadioShack anticipates 2005 free cash flow(1) of approximately $180 million to $200 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 September 30, 2005 at 11:59 p.m. ET.

Statements made in this news release which are forward-looking involve risks and uncertainties and are indicated by words such as “expect” 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 Forms 10-K and 10-Q.

Fort Worth, Texas-based RadioShack Corporation (NYSE: RSH) is the nation’s most trusted consumer electronics specialty retailer and a growing provider of a variety of retail support services. The company operates through a vast network of sales channels, including: nearly 7,000 company and dealer stores; over 100 RadioShack locations in Mexico; and more than 600 wireless kiosks. RadioShack’s knowledgeable and helpful sales associates deliver convenient product and service solutions within an estimated five minutes of where 94 percent of all Americans either live or work. For more information on RadioShack Corporation, visit www.RadioShackCorporation.com. To learn more about RadioShack products and services or to purchase items online, visit 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 Statements of Income (Unaudited)

Three Months Ended
        June 30        
 Increase/ (Decrease)  Six Months Ended           June 30            Increase/ (Decrease)
(In millions, except per share amounts) 2005 2004 2005 vs 2004 2005 2004 2005 vs 2004
 
Net sales and operating revenues      1,092.2    1,053.8    38.4    2,215.1    2,146.4    68.7  
Cost of products sold    538.0    514.2    23.8    1,094.7    1,053.8    40.9  






Gross profit    554.2    539.6    14.6    1,120.4    1,092.6    27.8  






Operating expenses  
  Selling, general and administrative    431.4    402.2    29.2    881.9    815.1    66.8  
  Depreciation and amortization    30.4    24.8    5.6    59.9    48.9    11.0  






Total operating expenses    461.8    427.0    34.8    941.8    864.0    77.8  






Operating income    92.4    112.6    (20.2 )  178.6    228.6    (50.0 )
 
Interest income    1.8    2.7    (0.9 )  3.6    4.2    (0.6 )
Interest expense    (9.4 )  (7.1 )  (2.3 )  (18.7 )  (14.5 )  (4.2 )
Other income        2.0    (2.0 )  10.2    2.0    8.2  






Income before income taxes    84.8    110.2    (25.4 )  173.7    220.3    (46.6 )
Provision for income taxes    32.5    41.9    (9.4 )  66.4    83.7    (17.3 )






Net income    52.3    68.3    (16.0 )  107.3    136.6    (29.3 )






Net income per share:  
Basic    $0.34    $0.42    ($0.08  $0.68     $0.84    ($ 0.16 )






Diluted    $0.33    $0.42    ($0.09  $0.68     $0.83    ($ 0.15 )






Weighted average shares used in computing earnings per share:  
Basic    155.9    161.7    (5.8 )  157.1    162.3    (5.2 )






Diluted    156.4    163.2    (6.8 )  158.0    164.2    (6.2 )






Shares outstanding    154.3    160.5    (6.2 )



RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)

 June 30, 2005  Dec. 31, 2004  June 30, 2004
Assets                
Cash and cash equivalents   $ 254.8   $ 437.9   $ 439.7  
Accounts and notes receivable, net    164.9    241.0    161.7  
Inventories, net    971.6    1,003.7    856.0  
Other current assets    88.5    92.5    90.5  



    Total current assets    1,479.8    1,775.1    1,547.9  
 
Property, plant and equipment, net    660.2    652.0    563.5  
Other assets, net    94.1    89.6    61.1  



Total assets   $ 2,234.1   $ 2,516.7   $ 2,172.5  



Liabilities and Stockholders' Equity  
Short-term debt   $ 98.4   $ 55.6   $ 110.5  
Accounts payable    214.5    442.2    288.8  
Accrued expenses and other current liabilities    272.3    342.1    267.1  
Income taxes payable    88.9    117.5    95.9  



    Total current liabilities    674.1    957.4    762.3  
 
Long-term debt, excluding current maturities    506.1    506.9    502.6  
Other non-current liabilities    131.1    130.3    79.2  



    Total liabilities    1,311.3    1,594.6    1,344.1  



Stockholders' equity    922.8    922.1    828.4  



Total liabilities and stockholders' equity   $ 2,234.1   $ 2,516.7   $ 2,172.5  



RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)

Six Months Ended
           June 30,           
     2005           2004     
Cash flows from operating activities:            
   Net income   $ 107.3   $ 136.6  
     Adjustments to reconcile net income to net cash used in  
     operating activities:  
        Depreciation and amortization    59.9    48.9  
        Other non-cash items    3.1    9.1  
     Changes in operating assets and liabilities:  
        Accounts and notes receivable    76.3    20.7  
        Inventories    32.1    (89.5 )
        Other current assets    5.3    (8.3 )
        Accounts payable, accrued expenses, income taxes payable, and other    (314.9 )  (119.2 )
 
 
 
Net cash used in operating activities    (30.9 )  (1.7 )
 
 
 
Cash flows from investing activities:  
   Additions to property, plant and equipment    (79.1 )  (103.2 )
   Proceeds from sale of property, plant and equipment    2.7    2.2  
   Other investing activities    (9.6 )  (3.9 )
 
 
 
Net cash used in investing activities    (86.0 )  (104.9 )
 
 
 
Cash flows from financing activities:  
   Purchases of treasury stock    (141.0 )  (146.8 )
   Sale of treasury stock to employee benefit plans    15.9    19.4  
   Proceeds from exercise of stock options    16.0    37.6  
   Changes in short-term borrowings, net    43.0    1.5  
   Repayments of long-term borrowings    (0.1 )  (0.1 )
 
 
 
Net cash used in financing activities    (66.2 )  (88.4 )
 
 
 
Net decrease in cash and cash equivalents    (183.1 )  (195.0 )
   Cash and cash equivalents, beginning of period    437.9    634.7  
 
 
 
   Cash and cash equivalents, end of period   $ 254.8   $ 439.7  
 
 
 
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