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 20, 2004
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 12. Results of Operations and Financial Condition
On July 20, 2004, RadioShack Corporation (the "Company") issued a press
release containing certain information with respect to its second quarter 2004
financial results. A copy of the press release is attached as Exhibit 99.1.
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 20th day of July, 2004.
RADIOSHACK CORPORATION
/s/ Mark C. Hill
------------------------------------------
Mark C. Hill
Senior Vice President - Chief
Administrative Officer, Secretary and
General Counsel
EXHIBIT INDEX
Exhibit No.
99.1 Press Release, dated July 20, 2004.
Exhibit 99.1
July 20, 2004
RSH-2004-035
For further information contact:
James M. Grant, Charles Hodges,
Senior Director, Investor Relations Director, Media Relations
(817) 415-7833 (817) 415-3300
Or Media.relations@radioshack.com
Leah M. King ------------------------------
Director, Investor Relations
(817) 415-2909
investor.relations@radioshack.com
---------------------------------
RadioShack Corporation Announces Second Quarter 2004 Financial Results
4th Consecutive Quarter Net Income, E.P.S. Growth Up Over 16%
Company Raises 2004 E.P.S. Guidance
Fort Worth, Texas - RadioShack Corporation (NYSE: RSH) today announced net
income of $68.3 million or $0.42 per diluted share for the quarter ended June
30, 2004 versus net income of $57.5 million or $0.34 per diluted share for the
quarter ended June 30, 2003. This represents a second quarter 2004 growth rate
of 19% in net income and 24% in diluted earnings per share.
Second quarter 2004 comparable store sales were up 3% compared to the prior
year. Total sales in the second quarter of 2004 were also up 3% to $1,054
million, compared to total sales of $1,025 million for the previous year. Second
quarter 2004 wireless communications department sales were up 16%.
"Strong wireless and computer department sales along with greater productivity
positively impacted our bottom line," said Leonard Roberts, chairman and chief
executive officer. "RadioShack continues to drive higher profit and better
returns for its shareholders, and, as a result, it has raised 2004 earnings per
share guidance above its previous forecast."
Other financial highlights of the second quarter of 2004 included:
o Inventory turnover for the trailing four quarters ended June 30, 2004 was 2.8
times versus 2.6 times in the corresponding period the prior year.
o Gross margin increased by 36 basis points.
o RadioShack leveraged selling, general and administrative (SG&A) expenses as a
percent of sales by 150 basis points. SG&A expenses decreased 1% in the
second quarter of 2004 versus the prior year.
Roberts said, "We are very bullish on the long term outlook for RadioShack. Our
sound operations today coupled with exciting growth initiatives that are
starting to gain traction make for a very promising future for years to come."
As for financial guidance, RadioShack anticipates generating third quarter 2004
earnings per share of $0.38 to $0.40. Earnings per diluted share for fiscal year
2004 are anticipated to be $2.07 - $2.09, representing a 17% - 18% growth rate
over fiscal year 2003.
In addition, RadioShack's two-year departmental sales change projections, last
articulated in January 2004, warrant the following updates:
o Wireless growth will be more than 5% to 8%,
o Home entertainment will likely be less than flat, and
o Toys/Personal Electronics will likely be less than 3% to 5%.
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
16, 2004 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 "anticipates" 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 of wireless communications,
electronic parts, batteries and accessories, as well as other digital technology
products and services. With 6,930 outlets nationwide at quarter's end, 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.(R)" - 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.
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Income Statement (Unaudited)
(In millions, except per share amounts)
Three Months Ended Increase/ Six Months Ended Increase/
June 30, (Decrease) June 30, (Decrease)
----------------------- ------------ ----------------------- ------------
2004 2003 2004 vs 2003 2004 2003 2004 vs 2003
---------- ---------- ------------ ---------- ---------- ------------
Net sales and operating revenues $1,053.8 $1,025.0 $ 28.8 $2,146.4 $2,095.3 $ 51.1
Cost of products sold 514.2 503.8 10.4 1,053.8 1,046.7 7.1
---------- ---------- ------------ ---------- ---------- ------------
Gross profit 539.6 521.2 18.4 1,092.6 1,048.6 44.0
---------- ---------- ------------ ---------- ---------- ------------
Operating expenses:
Selling, general and administrative 402.2 406.6 (4.4) 815.1 814.4 0.7
Depreciation and amortization 24.8 22.9 1.9 48.9 45.5 3.4
---------- ---------- ------------ ---------- ---------- ------------
Total operating expenses 427.0 429.5 (2.5) 864.0 859.9 4.1
---------- ---------- ------------ ---------- ---------- ------------
Operating income 112.6 91.7 20.9 228.6 188.7 39.9
Interest income 2.7 8.0 (5.3) 4.2 9.5 (5.3)
Interest expense (7.1) (9.8) 2.7 (14.5) (19.4) 4.9
Other income 2.0 0.7 1.3 2.0 3.1 (1.1)
---------- ---------- ------------ ---------- ---------- ------------
Income before income taxes 110.2 90.6 19.6 220.3 181.9 38.4
Provision for income taxes 41.9 33.1 8.8 83.7 67.8 15.9
---------- ---------- ------------ ---------- ---------- ------------
Net income $ 68.3 $ 57.5 $ 10.8 $ 136.6 $ 114.1 $ 22.5
========== ========== ============ ========== ========== ============
Net income per share:
Basic $ 0.42 $ 0.34 $ 0.08 $ 0.84 $ 0.67 $ 0.17
========== ========== ============ ========== ========== ============
Diluted $ 0.42 $ 0.34 $ 0.08 $ 0.83 $ 0.67 $ 0.16
========== ========== ============ ========== ========== ============
Shares used in computing earnings per share:
Basic 161.7 168.9 (7.2) 162.3 170.1 (7.8)
========== ========== ============ ========== ========== ============
Diluted 163.2 169.8 (6.6) 164.2 170.8 (6.6)
========== ========== ============ ========== ========== ============
Shares outstanding 160.5 166.8 (6.3)
========== ========== ============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
June 30, 2004 Dec. 31, 2003 June 30, 2003
------------- ------------- -------------
Assets
Cash and cash equivalents $ 439.7 $ 634.7 $ 524.3
Accounts and notes receivable, net 161.7 182.4 137.5
Inventories, net 856.0 766.5 811.1
Other current assets 90.5 83.0 88.0
------------- ------------- -------------
Total current assets 1,547.9 1,666.6 1,560.9
Property, plant and equipment, net 563.5 513.1 422.0
Other assets, net 61.1 64.2 98.4
------------- ------------- -------------
Total assets $2,172.5 $2,243.9 $2,081.3
============= ============= =============
Liabilities and Stockholders' Equity
Short-term debt, including current maturities of long-term debt $ 110.5 $ 77.4 $ -
Accounts payable 288.8 300.2 284.1
Accrued expenses 267.1 343.0 253.6
Income taxes payable 95.9 137.5 140.8
------------- ------------- -------------
Total current liabilities 762.3 858.1 678.5
Long-term debt, excluding current maturities 502.6 541.3 590.5
Other non-current liabilities 79.2 75.2 80.3
------------- ------------- -------------
Total liabilities 1,344.1 1,474.6 1,349.3
------------- ------------- -------------
Stockholders' equity 828.4 769.3 732.0
------------- ------------- -------------
Total liabilities and stockholders' equity $2,172.5 $2,243.9 $2,081.3
============= ============= =============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Six Months Ended
June 30,
2004 2003
---------- ----------
Cash flows from operating activities:
Net income $ 136.6 $ 114.1
Adjustments to reconcile net income to net cash
(used in) / provided by operating activities:
Depreciation and amortization 48.9 45.5
Provision for credit losses and bad debts 0.3 -
Other items 8.8 9.4
Changes in operating assets and liabilities:
Receivables 20.7 68.7
Inventories (89.5) 160.1
Other current assets (8.3) (7.9)
Accounts payable, accrued expenses and income
taxes payable (119.2) (121.3)
---------- ----------
Net cash (used in) / provided by operating activities (1.7) 268.6
---------- ----------
Cash flows from investing activities:
Additions to property, plant and equipment (103.2) (47.7)
Proceeds from sale of property, plant and equipment 2.2 0.1
Other investing activities (3.9) (0.2)
---------- ----------
Net cash used in investing activities (104.9) (47.8)
---------- ----------
Cash flows from financing activities:
Purchases of treasury stock (146.8) (127.1)
Sales of treasury stock to employee stock plans 19.4 18.8
Proceeds from exercise of stock options 37.6 1.3
Changes in short-term borrowings, net 1.5 (16.0)
Repayments of long-term borrowings (0.1) (20.0)
---------- ----------
Net cash used in investing activities (88.4) (143.0)
---------- ----------
Net (decrease) / increase in cash and cash
equivalents (195.0) 77.8
Cash and cash equivalents, beginning of period 634.7 446.5
---------- ----------
Cash and cash equivalents, end of period $ 439.7 $ 524.3
========== ==========