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): April 19, 2005
RADIOSHACK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-05571 75-1047710
(Commission File Number) (IRS Employer Identification No.)
Mail Stop CF3-203, 300 RadioShack Circle, Fort Worth, Texas 76102
(Address of principal executive offices) (Zip Code)
(817) 415-3700
(Registrant's telephone number, including area code)
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 April 19, 2005 RadioShack Corporation (the "Company") issued a press release
containing certain information with respect to its first 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 April, 2005.
RADIOSHACK CORPORATION
/s/ David S. Goldberg
------------------------------------------
David S. Goldberg
Vice President - Law
and Assistant Corporate Secretary
EXHIBIT INDEX
Exhibit No.
99.1 Press Release, dated April 19, 2005.
Exhibit 99.1
April 19, 2005
RSH-2005-013
For further information contact:
James M. Grant, Kay Jackson,
Senior Director, Investor Relations Senior Director, Public Relations
(817) 415-7833 (817) 415-3300
investor.relations@radioshack.com Media.relations@radioshack.com
RadioShack Corporation Announces First Quarter Financial Results
Fort Worth, Texas--April 19, 2005--RadioShack Corporation (NYSE: RSH) today
announced net income of $55 million or $0.34 per diluted share for the quarter
ended March 31, 2005 versus net income of $68 million or $0.41 per diluted share
for the quarter ended March 31, 2004.
Total sales in the first quarter of 2005 were up 3% to $1,123 million, compared
to total sales of $1,093 million for the previous year. First quarter 2005
comparable store sales were down 1% versus the prior year.
"We are disappointed that our business did not perform as we originally expected
during the first quarter. Our profits were lower due primarily to
underperformance in the wireless business within our core RadioShack stores,"
said David Edmondson, president and chief executive officer-elect. "Our
non-wireless businesses improved in first quarter 2005, compared with first
quarter 2004. RadioShack remains a very profitable business overall, but our
focus clearly must be on turning our wireless business around, while continuing
to improve our non-wireless businesses."
RadioShack established 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. "While we are expecting our total sales to increase
in 2005, much of the growth will come from products and channels with gross
margin lower than the company average. Also, we expect increases in SG&A and
depreciation as we make investments in the future while maintaining cost control
with our core business," Edmondson said.
In addition, RadioShack also announced estimated 2005 free cash flow(1) guidance
of $200 million to $225 million.
-----
(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.
Page 2
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 July
12, 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 "expected" 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; almost 100
RadioShack locations in Mexico; and more than 500 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.
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Income Statements (Unaudited)
(In millions, except per share amounts)
Three Months Ended Increase/
March 31, (Decrease)
---------------------- ------------
2005 2004 2005 vs 2004
---------- ---------- ------------
Net sales and operating revenues $1,122.9 $1,092.6 $ 30.3
Cost of products sold 556.7 539.6 17.1
---------- ---------- ------------
Gross profit 566.2 553.0 13.2
---------- ---------- ------------
Operating expenses:
Selling, general and administrative 450.5 412.9 37.6
Depreciation and amortization 29.5 24.1 5.4
---------- ---------- ------------
Total operating expenses 480.0 437.0 43.0
---------- ---------- ------------
Operating income 86.2 116.0 (29.8)
Interest income 1.8 1.5 0.3
Interest expense (9.3) (7.4) (1.9)
Other income 10.2 - 10.2
---------- ---------- ------------
Income before income taxes 88.9 110.1 (21.2)
Provision for income taxes 33.9 41.8 (7.9)
---------- ---------- ------------
Net income 55.0 68.3 (13.3)
========== ========== ============
Net income per share:
Basic $ 0.35 $ 0.42 $ (0.07)
========== ========== ============
Diluted $ 0.34 $ 0.41 $ (0.07)
========== ========== ============
Shares used in computing earnings per share:
Basic 158.3 163.0 (4.7)
========== ========== ============
Diluted 159.5 165.1 (5.6)
========== ========== ============
Shares outstanding 156.0 161.9 (5.9)
========== ========== ============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
March 31, December 31, March 31,
2005 2004 2004
------------ ------------ ------------
Assets
Cash and cash equivalents $ 293.0 $ 437.9 $ 577.0
Accounts and notes receivable, net 192.0 241.0 142.1
Inventories, net 956.6 1,003.7 769.9
Other current assets 99.6 92.5 87.7
------------ ------------ ------------
Total current assets 1,541.2 1,775.1 1,576.7
Property, plant and equipment, net 649.4 652.0 528.5
Other assets, net 93.6 89.6 71.4
------------ ------------ ------------
Total assets $ 2,284.2 $ 2,516.7 $ 2,176.6
============ ============ ============
Liabilities and Stockholders' Equity
Short-term debt, including current
maturities of long-term debt $ 73.7 $ 55.6 $ 119.1
Accounts payable 271.2 442.2 271.4
Accrued expenses and other current liabilities 264.4 342.1 259.2
Income taxes payable 125.2 117.5 128.8
------------ ------------ ------------
Total current liabilities 734.5 957.4 778.5
Long-term debt, excluding current maturities 501.2 506.9 515.3
Other non-current liabilities 132.3 130.3 75.0
------------ ------------ ------------
Total liabilities 1,368.0 1,594.6 1,368.8
------------ ------------ ------------
Stockholders' equity 916.2 922.1 807.8
------------ ------------ ------------
Total liabilities and stockholders' equity $ 2,284.2 $ 2,516.7 $ 2,176.6
============ ============ ============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Three Months Ended
March 31,
------------------
2005 2004
-------- --------
Cash flows from operating activities:
Net income $ 55.0 $ 68.3
Adjustments to reconcile net income to net cash (used in) / provided
by operating activities:
Depreciation and amortization 29.5 24.1
Provision for credit losses and bad debts 0.2 0.3
Other items 1.5 5.8
Changes in operating assets and liabilities:
Accounts and notes receivable 48.8 40.5
Inventories 47.2 (3.4)
Other current assets (5.9) (5.1)
Accounts payable, accrued expenses, income taxes payable (242.9) (114.2)
-------- --------
Net cash (used in) / provided by operating activities (66.6) 16.3
-------- --------
Cash flows from investing activities:
Additions to property, plant and equipment (38.6) (41.3)
Proceeds from sale of property, plant and equipment 2.1 0.2
Other investing activities (4.4) (3.5)
-------- --------
Net cash used in investing activities (40.9) (44.6)
-------- --------
Cash flows from financing activities:
Purchases of treasury stock (73.7) (81.1)
Sale of treasury stock to employee benefit plans 10.0 11.1
Proceeds from exercise of stock options 8.0 30.9
Changes in short-term borrowings, net 18.3 9.8
Repayments of long-term borrowings - (0.1)
-------- --------
Net cash used in financing activities (37.4) (29.4)
-------- --------
Net decrease in cash and cash equivalents (144.9) (57.7)
Cash and cash equivalents, beginning of period 437.9 634.7
-------- --------
Cash and cash equivalents, end of period $293.0 $577.0
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