Welcome!

Wearables Authors: Mauro Carniel, Rostyslav Demush, Pat Romanski, Shelly Palmer, Yeshim Deniz

News Feed Item

RadioShack Reports Financial Results for Third Quarter 2013

Concept Store Initiative to be Rolled Out More Broadly in Coming Months

FORT WORTH, Texas, Oct. 22, 2013 /PRNewswire/ -- RadioShack Corporation (NYSE: RSH) today reported results for the third quarter ended September 30, 2013, including total net sales and operating revenues of $805 million and net loss of $112 million. The Company also announced that it has received commitments for $835 million of a new five-year debt financing. The Company continues to address significant legacy issues as it engineers a comprehensive operational turnaround driven by the Company's five pillars: reposition the brand, revamp the product assortment, reinvigorate the store experience, operational efficiency and financial flexibility.

(Logo: http://photos.prnewswire.com/prnh/20130716/LA47690LOGO)

Joseph C. Magnacca, chief executive officer, said, "We are moving forward quickly and as planned with our turnaround efforts. As we have said, we expect our work to take several quarters and during that time our results will vary quarter to quarter as we make strategic changes to improve our long-term financial performance. This quarter reflects our strategic decision to accelerate the improvements to the product assortment in our stores by removing duplicate and unproductive inventory. The lower inventory valuations for these products and projected disposal costs resulted in an expected increase to our cost of products sold this quarter."

Mr. Magnacca continued: "We have an aggressive plan to reinvigorate our store experience this fall in nearly all of our stores. This plan builds upon the sales improvement we've seen in three concept stores and two brand statement stores. By the end of the year, we will have over 100 concept and brand statement stores open. In addition, we are currently contemporizing our stores by significantly re-merchandising inventory in a more logical manner and improving presentation. Our entire store base of nearly 4,300 stores will see improvements from these changes which are being implemented in the early part of the fourth quarter."

"We are pleased with the recently obtained commitments for new financing. We are on track to achieve the Company's previously stated objective to supplement liquidity and enhance financial flexibility for the continued execution of our operational turnaround."

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

"We strongly believe our new retail and consumer-centric strategy has us heading in the right direction. We've made significant progress in the third quarter and will continue to focus on execution during the all-important holiday selling season," Mr. Magnacca concluded.

THIRD QUARTER SUMMARY

  • Total net sales and operating revenues were $805 million, compared to $898 million last year. The decline was driven by an 8.4% decrease in comparable store sales due to reduced sales for each of the Company's product platforms. The Company continued to see increased sales of prepaid mobile phones in the mobility platform and in certain signature categories including portable speakers, Apple Lightning compatible cables and adaptors during the period.
  • Gross profit was $243 million, compared with $341 million last year. Gross margin was 30.1% of net sales, compared to 38.0% last year. Gross profit and gross margin performance were negatively impacted by approximately $47 million as a result of the Company's decision to accelerate the merchandise assortment changes by removing duplicate and unproductive products. Additionally, gross profit was negatively impacted by lower sales and decreased gross profit in the postpaid wireless business.
  • Selling, general and administrative (SG&A) expenses were $343 million, or 42.6% of net sales, compared with $354 million last year. The decrease was driven by fewer stores in operation and lower severance costs versus last year.
  • Operating loss was $118 million, compared to a $34 million loss last year.
  • Net loss was $112 million, or $1.11 per diluted share, compared to net loss of $47 million last year.
  • The Company continues to have a strong balance sheet and total liquidity of $613 million as of September 30, 2013.

CASH, LIQUIDITY AND CAPITAL SPENDING

The Company ended the third quarter with total liquidity of $613 million, including cash and cash equivalents of $316.4 million and $296.2 million of available credit under the asset-based revolving credit facility that expires in January 2016.

The Company's total debt was $499 million at September 30, 2013. On August 1, 2013, the Company repaid the $214 million remaining aggregate principal balance of the 2013 Convertible Notes at maturity. The balance of the Company's debt matures between 2016 and 2019.

Capital spending totaled $14.9 million in the third quarter compared to $16.8 million last year.

Subsequent to the end of the quarter, the Company obtained financing commitments from a consortium of lenders led by GE Capital, Corporate Finance; CIT Corporate Finance; RBS Citizens, N.A.; and Salus Capital Partners. These commitments total $835 million including a new $585 million senior secured ABL credit facility and a new $250 million secured term loan. The new debt facilities will be used to refinance the Company's existing $450 million ABL credit facility, $75 million of term loans and $100 million second lien term loan. The Company expects the new financings will provide approximately $175 million of incremental liquidity. The Company expects the new debt facilities will be closed in the fourth quarter. The new financings are subject to customary closing conditions.

CONFERENCE CALL

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 http://IR.RadioShackCorporation.com.

An archived replay of the conference call will be available in the investor relations section of the corporate website, radioshackcorporation.com. A telephone replay will be available beginning at approximately 11 a.m. EDT today and will remain available until midnight EDT on November 5, 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 68578415.

For more information about performance, refer to the RadioShack Corporation Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on October 22, 2013.

FORWARD-LOOKING STATEMENTS

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; our ability to complete the new debt financings on the terms contemplated by the commitments in the fourth quarter of 2013 or at all; 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.

ABOUT RADIOSHACK CORPORATION

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 approximately 4,300 company-operated stores in the United States, over 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. For more information on RadioShack Corporation, please visit www.radioshackcorporation.com; to purchase items online, please visit www.radioshack.com. 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

[email protected]

[email protected]

 


RADIOSHACK CORPORATION AND SUBSIDIARIES


Condensed Consolidated Statements of Comprehensive Income (unaudited)




















Three Months Ended


Nine Months Ended



September 30,


September 30,

(In millions, except per share amounts)


2013


2012


2013


2012

Net sales and operating revenues


$

805.4



$

898.0



$

2,498.9



$

2,659.9


Cost of products sold



562.7




557.2




1,605.1




1,608.8


Gross profit



242.7




340.8




893.8




1,051.1



















Operating expenses:

















Selling, general and administrative



343.3




354.0




1,018.1




1,036.3


Depreciation and amortization



15.0




16.0




47.0




49.5


Impairment of long-lived assets and goodwill



2.4




4.8




6.6




6.3


Total operating expenses



360.7




374.8




1,071.7




1,092.1



















Operating loss



(118.0)




(34.0)




(177.9)




(41.0)



















Interest income



0.3




0.5




1.0




1.3


Interest expense



(11.5)




(13.2)




(40.6)




(39.2)


Other loss



--




(0.6)




(0.3)




(0.6)



















Loss from continuing operations before income taxes



(129.2)




(47.3)




(217.8)




(79.5)


Income tax benefit



(16.8)




(15.9)




(17.2)




(27.2)



















Loss from continuing operations



(112.4)




(31.4)




(200.6)




(52.3)


Discontinued operations, net of income taxes



--




(15.7)




(8.2)




(23.8)



















Net loss


$

(112.4)



$

(47.1)



$

(208.8)



$

(76.1)



















Basic and diluted net loss per share:

















Loss per share from continuing operations


$

(1.11)



$

(0.31)



$

(1.99)



$

(0.52)


Loss per share from discontinued operations



--




(0.16)




(0.08)




(0.24)


Net loss per share


$

(1.11)



$

(0.47)



$

(2.07)



$

(0.76)



















Shares used in computing net loss per share:


































Basic and diluted



101.0




100.1




100.7




100.1




































Comprehensive loss


$

(113.2)



$

(44.6)



$

(208.9)



$

(70.9)


 

RADIOSHACK CORPORATION AND SUBSIDIARIES


Consolidated Balance Sheets (unaudited)
















September 30,


December 31,


September 30,

(In millions)


2013


2012


2012

Assets













Current assets:













Cash and cash equivalents


$

316.4



$

535.7



$

546.1


Accounts and notes receivable, net



201.6




452.5




349.2


Inventories



707.7




908.3




851.1


Other current assets



105.2




85.4




174.0


Total current assets



1,330.9




1,981.9




1,920.4















Property, plant and equipment, net



203.2




239.0




241.0


Goodwill, net



36.1




36.6




36.9


Other assets, net



36.9




41.6




39.0


Total assets


$

1,607.1



$

2,299.1



$

2,237.3















Liabilities and Stockholders' Equity













Current liabilities:













Current maturities of long-term debt


$

1.0



$

278.7



$

275.2


Accounts payable



282.1




435.6




386.2


Accrued expenses and other current liabilities



217.4




263.9




261.3


Total current liabilities



500.5




978.2




922.7















Long-term debt, excluding current maturities



498.3




499.0




474.0


Other non-current liabilities



214.3




223.2




178.2


Total liabilities



1,213.1




1,700.4




1,574.9















Total stockholders' equity



394.0




598.7




662.4


Total liabilities and stockholders' equity


$

1,607.1



$

2,299.1



$

2,237.3


 

RADIOSHACK CORPORATION AND SUBSIDIARIES


Consolidated Statements of Cash Flows (unaudited)












Nine Months Ended




September 30,


(In millions)


2013


2012

Cash flows from operating activities:







Net loss


$

(208.8)



$

(76.1)


Adjustments to reconcile net loss to net cash









provided by operating activities:









Depreciation and amortization



54.9




60.7


Amortization of discounts on long-term debt



7.1




12.8


Impairment of long-lived assets and goodwill



6.6




18.0


Stock-based compensation



5.9




6.0


Other non-cash items



4.2




11.1


Changes in assets and liabilities:









Accounts and notes receivable



252.2




102.8


Inventories



200.3




(104.0)


Other current assets



(10.7)




(35.3)


Accounts payable



(76.6)




74.1


Accrued expenses and other



(59.5)




(37.7)


Net cash provided by operating activities



175.6




32.4











Cash flows from investing activities:









Additions to property, plant and equipment



(26.6)




(44.5)


Proceeds from sale of property, plant and equipment



6.5




--


Changes in restricted cash



(6.8)




(26.5)


Other investing activities



(3.0)




0.1


Net cash used in investing activities



(29.9)




(70.9)











Cash flows from financing activities:









Principal amount of long-term debt repayments



(286.9)




(88.1)


Net proceeds from issuance of long-term debt



--




150.0


Payments of debt issuance costs



--




(5.9)


Payments of dividends



--




(24.9)


Changes in cash overdrafts



(78.1)




(38.2)


Net cash used in financing activities



(365.0)




(7.1)











Net decrease in cash and cash equivalents



(219.3)




(45.6)


Cash and cash equivalents, beginning of period



535.7




591.7


Cash and cash equivalents, end of period


$

316.4



$

546.1


 

RADIOSHACK CORPORATION AND SUBSIDIARIES


Segment Reporting (unaudited)




















Three Months Ended


Nine Months Ended



September 30,


September 30,

(In millions)


2013


2012


2013


2012


















Net sales and operating revenues:

















U.S. RadioShack company-operated stores


$

733.9



$

814.4



$

2,272.7



$

2,420.4


Other



71.5




83.6




226.2




239.5




$

805.4



$

898.0



$

2,498.9



$

2,659.9



















Operating income (loss):

















U.S. RadioShack company-operated stores


$

(26.5)



$

62.1



$

74.1



$

225.4


Other



1.6




10.1




13.2




24.5





(24.9)




72.2




87.3




249.9



















Unallocated



(93.1)




(106.2)




(265.2)




(290.9)


Operating loss



(118.0)




(34.0)




(177.9)




(41.0)



















Interest income



0.3




0.5




1.0




1.3


Interest expense



(11.5)




(13.2)




(40.6)




(39.2)


Other loss



--




(0.6)




(0.3)




(0.6)


Loss from continuing operations before income taxes


$

(129.2)



$

(47.3)



$

(217.8)



$

(79.5)


 

SOURCE RadioShack Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things’). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing? IoT is not about the devices, it’s about the data consumed and generated. The devices are tools, mechanisms, conduits. In his session at Internet of Things at Cloud Expo | DXWor...