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): January 14, 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 January 14, 2004, RadioShack Corporation (the "Company") issued a press
release containing certain information with respect to its results of operations
and financial condition for the fourth quarter of 2003. 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 free cash flow. 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 14th day of January, 2004.
RADIOSHACK CORPORATION
/s/ Mark C. Hill
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Mark C. Hill
Senior Vice President - Chief
Administrative Officer, Corporate
Secretary and General Counsel
EXHIBIT INDEX
Exhibit No.
99.1 Press Release, dated January 14, 2004.
Exhibit 99.1
January 14, 2004
RSH-2004-001
For further information contact:
James M. Grant, Laura Moore,
Senior Director, Investor Relations Senior Vice President,
(817) 415-7833 Chief Communications Officer
Or (817) 415-3300
Leah M. King Media.relations@radioshack.com
Director, Investor Relations ------------------------------
(817) 415-2909
investor.relations@radioshack.com
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RADIOSHACK CORPORATION REVISES FOURTH QUARTER
EARNINGS PER SHARE GUIDANCE HIGHER
Fort Worth, Texas--January 14, 2004 -- RadioShack Corporation (NYSE: RSH) today
announced that its fourth quarter 2003 earnings per share will exceed the high
end of its previously stated forecast of $0.67 to $0.70. Additionally, the
company reported that fourth quarter 2003 free cash flow(1) will be
approximately $420 million versus previous guidance of $310 million to $350
million.
The most significant driver of RadioShack's earnings results was better than
expected gross margin. Factors impacting gross margin included:
o Favorable merchandise mix,
o Much higher profitability on similar products sold the previous year,
o Better results from merchandise markdowns, and
o Significant benefits from supply chain management initiatives.
"Product mix and other elements of our operating plan continue to positively
impact our bottom line," said Leonard Roberts, Chairman and Chief Executive
Officer. "We overcame light traffic trends and inclement weather by selling more
profitably to deliver higher earnings and greater shareholder value."
RadioShack delivered value to customers and shareholders by selling
competitively priced, relevant products without compromising its financial
model. In addition to the strong gross margin, slightly better-than-expected
results from operating expenses contributed to the favorable fourth quarter
earnings.
Lower sales results partially offset the benefits elsewhere on the income
statement. RadioShack's fourth quarter 2003 total sales decreased 1%, to $1.48
billion from $1.50 billion in fourth quarter 2002. On a comparable store basis,
sales were also down 1% for the quarter.
Departmental year-over-year sales results and key drivers for fourth quarter
2003 were as follows:
o Wireless Communications - Up 17%, due to higher sales of Verizon and Sprint
products and services as well as higher sales of wireless accessories.
o Wired Communications - Down 18%, due to lower sales of telephones and
telephone accessories because of a market shift to wireless.
o Radio Communications - Down 6%, due primarily to lower sales of FRS radios.
o Computer - Down 8%, due to lower sales of computers and gaming bundles
offset by higher sales of networking and imaging products.
o Home Entertainment - Down 15%, due to lower sales of direct-to-home
satellite systems and installation, home video and audio products, and
home entertainment accessories.
o Power & Technical - Down 1%, due primarily to lower sales of technical
parts offset by higher sales of certain power products.
o Personal Electronics, Toys & Portable Audio - Down 5%, due primarily to
lower sales of personal audio, educational toys, and gifts; offset in
part by higher sales of micro radio-controlled toys and wellness products.
Sales in accessory and battery categories throughout all of the company's
departments taken collectively were down less than 1%.
The company will hold a live audiocast of its investor conference on its
corporate website www.radioshackcorporation.com starting at 9:30 a.m. ET this
Friday, January 16, to discuss the results and more.
Results are unaudited.
Statements made in this press release which are forward-looking statements
involve risks and uncertainties and are indicated by words such as "likely,"
"believes," 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 Securities and Exchange Commission such as
RadioShack's most recent Form 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 more than 7,000 outlets nationwide, 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.
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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. Amounts available for a quantitative reconciliation of our
projected free cash flow to the corresponding net cash from operating activities
will not be available until the finalization of our 2003 financial statements.