Delaware
|
1-5571
|
75-1047710
|
|||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|||
300 RadioShack Circle, Mail Stop CF3-203, Fort Worth, Texas
|
76102 | ||||
(Address of principal executive offices)
|
(Zip Code)
|
¨
|
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
|
99.1
|
Press Release, dated July, 25, 2012, “RadioShack Reports Financial Results for Second Quarter 2012”
|
RadioShack Corporation
|
|||
(Registrant)
|
|||
Date: July 25, 2012
|
/s/ Dorvin D. Lively
|
||
Dorvin D. Lively
|
|||
Executive Vice President -
|
|||
Chief Financial Officer and
Chief Administrative Officer
|
|||
(principal financial officer)
|
Exhibit No.
|
Description of Exhibit
|
|
99.1
|
Press Release, dated July 25, 2012, “RadioShack Reports Financial Results for Second Quarter 2012”
|
|
● | Total net sales and operating revenue of $953.2 million, an increase of 1.2% versus last year. Comparable store sales were essentially flat, while mobility platform sales increased 3.3% at U.S. RadioShack company-operated stores. |
● | Consolidated gross profit of $360.3 million, or 37.8% of net sales, compared with $432.1 million last year. Gross margin in the second quarter was negatively impacted by a mix shift within mobility sales toward lower margin smartphones. |
● | Consolidated selling, general and administrative (SG&A) expenses were $362.5 million, or 38.0% of net sales, compared with $364.3 million last year. |
● | Net loss of $21.0 million, or $0.21 per diluted share, compared to net income of $24.9 million, or $0.24 per diluted share, last year. |
● | On June 6, the company announced a new joint-venture relationship with Hon Hai Precision Industry, which will allow for the growth of RadioShack stores in mainland China, Taiwan, Hong Kong and Macau. |
● | The company continues to have a strong balance sheet and total liquidity of $910 million. |
Analyst and Investor Contact: | News Media Contact: |
Bruce Bishop | Media Relations |
(817) 415-3400 | (817) 415-3300 |
Bruce.Bishop@RadioShack.com | Media.Relations@RadioShack.com |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
(In millions, except per share amounts)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net sales and operating revenues
|
$ | 953.2 | $ | 941.9 | $ | 1,961.5 | $ | 1,959.3 | ||||||||
Cost of products sold
|
592.9 | 509.8 | 1,206.7 | 1,072.8 | ||||||||||||
Gross profit
|
360.3 | 432.1 | 754.8 | 886.5 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Selling, general and administrative
|
362.5 | 364.3 | 735.8 | 734.9 | ||||||||||||
Depreciation and amortization
|
18.0 | 18.3 | 36.9 | 36.6 | ||||||||||||
Impairment of long-lived assets
|
1.0 | 0.6 | 1.5 | 1.0 | ||||||||||||
Total operating expenses
|
381.5 | 383.2 | 774.2 | 772.5 | ||||||||||||
Operating (loss) income
|
(21.2 | ) | 48.9 | (19.4 | ) | 114.0 | ||||||||||
Interest income
|
0.3 | 0.5 | 0.8 | 0.8 | ||||||||||||
Interest expense
|
(12.9 | ) | (10.9 | ) | (26.0 | ) | (20.6 | ) | ||||||||
Other loss
|
-- | -- | -- | (4.1 | ) | |||||||||||
(Loss) income from continuing operations before income taxes
|
(33.8 | ) | 38.5 | (44.6 | ) | 90.1 | ||||||||||
Income tax (benefit) expense
|
(12.8 | ) | 15.0 | (15.6 | ) | 35.2 | ||||||||||
(Loss) income from continuing operations
|
(21.0 | ) | 23.5 | (29.0 | ) | 54.9 | ||||||||||
Discontinued operations, net of income taxes
|
-- | 1.4 | -- | 5.1 | ||||||||||||
Net (loss) income
|
$ | (21.0 | ) | $ | 24.9 | $ | (29.0 | ) | $ | 60.0 | ||||||
Basic and diluted net (loss) income per share:
|
||||||||||||||||
(Loss) income per share from continuing operations
|
$ | (0.21 | ) | $ | 0.23 | $ | (0.29 | ) | $ | 0.52 | ||||||
Income per share from discontinued operations
|
-- | 0.01 | -- | 0.05 | ||||||||||||
Net (loss) income per share (basic)
|
$ | (0.21 | ) | $ | 0.24 | $ | (0.29 | ) | $ | 0.57 | ||||||
Comprehensive (loss) income
|
$ | (23.9 | ) | $ | 26.3 | $ | (26.3 | ) | $ | 63.4 | ||||||
Shares used in computing net (loss) income
per share:
|
||||||||||||||||
Basic
|
100.1 | 103.7 | 100.0 | 104.9 | ||||||||||||
Diluted
|
100.1 | 104.6 | 100.0 | 105.9 |
(In millions)
|
June 30,
2012
|
December 31,
2011
|
June 30,
2011
|
|||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$ | 517.7 | $ | 591.7 | $ | 552.2 | ||||||
Accounts and notes receivable, net
|
250.0 | 360.6 | 278.4 | |||||||||
Inventories
|
828.7 | 744.4 | 727.2 | |||||||||
Other current assets (1)
|
144.8 | 116.1 | 104.4 | |||||||||
Total current assets
|
1,741.2 | 1,812.8 | 1,662.2 | |||||||||
Property, plant and equipment, net
|
256.5 | 270.2 | 274.5 | |||||||||
Goodwill
|
38.4 | 37.0 | 43.3 | |||||||||
Other assets, net
|
51.6 | 55.1 | 84.3 | |||||||||
Total assets
|
$ | 2,087.7 | $ | 2,175.1 | $ | 2,064.3 | ||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Current maturities of long-term debt
|
$ | 355.4 | $ | -- | $ | -- | ||||||
Accounts payable
|
352.3 | 348.2 | 225.4 | |||||||||
Accrued expenses and other current liabilities
|
267.5 | 315.4 | 274.8 | |||||||||
Total current liabilities
|
975.2 | 663.6 | 500.2 | |||||||||
Long-term debt, excluding current maturities
|
323.9 | 670.6 | 662.2 | |||||||||
Other non-current liabilities
|
84.0 | 87.6 | 93.9 | |||||||||
Total liabilities
|
1,383.1 | 1,421.8 | 1,256.3 | |||||||||
Stockholders’ equity
|
704.6 | 753.3 | 808.0 | |||||||||
Total liabilities and stockholders’ equity
|
$ | 2,087.7 | $ | 2,175.1 | $ | 2,064.3 | ||||||
(1)
|
Includes $26.5 million of restricted cash. Refer to Note 4 – “Restricted Cash” in the Notes to Condensed Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for the period ended June 30, 2012, for more information.
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
(In millions)
|
2012
|
2011
|
||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$ | (29.0 | ) | $ | 60.0 | |||
Adjustments to reconcile net (loss) income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization
|
41.0 | 40.6 | ||||||
Amortization of discounts on long-term debt
|
8.7 | 7.9 | ||||||
Impairment of long-lived assets
|
1.5 | 1.0 | ||||||
Stock-based compensation
|
3.7 | 2.9 | ||||||
Other non-cash items
|
4.4 | 5.7 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts and notes receivable
|
110.1 | 99.5 | ||||||
Inventories
|
(83.2 | ) | (2.1 | ) | ||||
Other current assets
|
(3.0 | ) | 6.3 | |||||
Accounts payable
|
20.5 | (60.4 | ) | |||||
Accrued expenses and other
|
(51.8 | ) | (59.9 | ) | ||||
Net cash provided by operating activities
|
22.9 | 101.5 | ||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant and equipment
|
(27.7 | ) | (41.5 | ) | ||||
Changes in restricted cash (1)
|
(26.5 | ) | -- | |||||
Other investing activities
|
0.1 | -- | ||||||
Net cash used in investing activities
|
(54.1 | ) | (41.5 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of dividends
|
(24.9 | ) | -- | |||||
Changes in cash overdrafts
|
(17.9 | ) | 12.6 | |||||
Issuance of long-term notes
|
-- | 322.5 | ||||||
Long-term notes issuance costs
|
-- | (6.2 | ) | |||||
Repayments of borrowings
|
-- | (306.8 | ) | |||||
Purchases of treasury stock
|
-- | (101.4 | ) | |||||
Proceeds from exercise of stock options
|
-- | 2.1 | ||||||
Net cash used in financing activities
|
(42.8 | ) | (77.2 | ) | ||||
Net decrease in cash and cash equivalents
|
(74.0 | ) | (17.2 | ) | ||||
Cash and cash equivalents, beginning of period
|
591.7 | 569.4 | ||||||
Cash and cash equivalents, end of period
|
$ | 517.7 | $ | 552.2 |
(1)
|
Includes $26.5 million of restricted cash. Refer to Note 4 – “Restricted Cash” in the Notes to Condensed Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for the period ended June 30, 2012, for more information.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net sales and operating revenues:
|
||||||||||||||||
U.S. RadioShack company-operated stores
|
$ | 772.4 | $ | 797.8 | $ | 1,606.0 | $ | 1,693.0 | ||||||||
Other
|
180.8 | 144.1 | 355.5 | 266.3 | ||||||||||||
$ | 953.2 | $ | 941.9 | $ | 1,961.5 | $ | 1,959.3 | |||||||||
Operating income:
|
||||||||||||||||
U.S. RadioShack company-operated stores
|
$ | 72.0 | $ | 137.1 | $ | 163.3 | $ | 289.1 | ||||||||
Other
|
(1.5 | ) | (6.1 | ) | 1.5 | (4.5 | ) | |||||||||
70.5 | 131.0 | 164.8 | 284.6 | |||||||||||||
Unallocated
|
(91.7 | ) | (82.1 | ) | (184.2 | ) | (170.6 | ) | ||||||||
Operating (loss) income
|
(21.2 | ) | 48.9 | (19.4 | ) | 114.0 | ||||||||||
Interest income
|
0.3 | 0.5 | 0.8 | 0.8 | ||||||||||||
Interest expense
|
(12.9 | ) | (10.9 | ) | (26.0 | ) | (20.6 | ) | ||||||||
Other loss
|
-- | -- | -- | (4.1 | ) | |||||||||||
(Loss) income from continuing operations before income taxes
|
$ | (33.8 | ) | $ | 38.5 | $ | (44.6 | ) | $ | 90.1 |
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