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): October 19, 2004
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.)
100 Throckmorton Street, Suite 1800
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 October 19, 2004, RadioShack Corporation (the "Company") issued a press
release containing certain information with respect to its third 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 19th day of October, 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 October 19, 2004.
Exhibit 99.1
October 19, 2004
RSH-2004-056
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 Third Quarter 2004 Financial Results
Comparable Store Sales Up 5%, E.P.S. Up 26%
Fort Worth, Texas - RadioShack Corporation (NYSE: RSH) today announced net
income of $69.7 million or $0.43 per diluted share for the quarter ended
September 30, 2004 versus net income of $57.1 million or $0.34 per diluted share
for the quarter ended September 30, 2003. This represents a third quarter 2004
growth rate of 22% in net income and 26% in diluted earnings per share.
Third quarter 2004 comparable store sales were up 5% compared to the prior year.
Total sales in the third quarter of 2004 were up 4% to $1,101.5 million,
compared to total sales of $1,063.6 million for the previous year. Third quarter
2004 wireless communications department sales were up 19%.
"Strong wireless and computer department sales along with greater cost leverage
versus last year positively impacted our bottom line," said Leonard Roberts,
chairman and chief executive officer. "Our decisions and execution throughout
the organization continue to drive higher profit and better returns for our
shareholders."
RadioShack leveraged selling, general and administrative (SG&A) expenses as a
percent of sales by 193 basis points. SG&A expenses decreased 1% in the third
quarter of 2004 versus the prior year. The company remains fully committed to
building upon the operational efficiency improvements it has achieved over the
last two years.
RadioShack delivered its third quarter 2004 earnings in spite of a significantly
lower financial contribution this year from line items below operating income.
Roberts said, "The quality of our earnings this year along with growth
initiatives that are ready for deployment in 2005 suggests a very promising
future for RadioShack."
RadioShack reaffirms its 2004 earnings per share guidance of $2.07 to $2.09. The
company also reaffirms its 2005 earnings per share growth rate guidance of 19%
to 21%.
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 January
7, 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 "suggest" 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 6,874 RadioShack stores and dealer outlets
nationwide at quarter's end, it is estimated that 94 percent of all Americans
live or work within five minutes of one of them. 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/ Nine Months Ended Increase/
September 30, (Decrease) September 30, (Decrease)
----------------------- ------------ ----------------------- ------------
2004 2003 2004 vs 2003 2004 2003 2004 vs 2003
---------- ---------- ------------ ---------- ---------- ------------
Net sales and operating revenues $1,101.5 $1,063.6 $ 37.9 $3,247.9 $3,158.9 $ 89.0
Cost of products sold 544.7 530.9 13.8 1,598.5 1,577.6 20.9
---------- ---------- ------------ ---------- ---------- ------------
Gross profit 556.8 532.7 24.1 1,649.4 1,581.3 68.1
---------- ---------- ------------ ---------- ---------- ------------
Operating expenses:
Selling, general and administrative 415.2 421.4 (6.2) 1,230.3 1,235.8 (5.5)
Depreciation and amortization 24.4 23.3 1.1 73.3 68.8 4.5
---------- ---------- ------------ ---------- ---------- ------------
Total operating expenses 439.6 444.7 (5.1) 1,303.6 1,304.6 (1.0)
---------- ---------- ------------ ---------- ---------- ------------
Operating income 117.2 88.0 29.2 345.8 276.7 69.1
Interest income 1.7 1.9 (0.2) 5.9 11.4 (5.5)
Interest expense (6.5) (8.7) 2.2 (21.0) (28.1) 7.1
Other income, net -- 8.9 (8.9) 2.0 12.0 (10.0)
---------- ---------- ------------ ---------- ---------- ------------
Income before income taxes 112.4 90.1 22.3 332.7 272.0 60.7
Provision for income taxes 42.7 33.0 9.7 126.4 100.8 25.6
---------- ---------- ------------ ---------- ---------- ------------
Net income $ 69.7 $ 57.1 $ 12.6 $ 206.3 $ 171.2 $ 35.1
========== ========== ============ ========== ========== ============
Net income per share:
Basic $ 0.44 $ 0.34 $ 0.10 $ 1.28 $ 1.01 $ 0.27
========== ========== ============ ========== ========== ============
Diluted $ 0.43 $ 0.34 $ 0.09 $ 1.26 $ 1.01 $ 0.25
========== ========== ============ ========== ========== ============
Shares used in computing net income per share:
Basic 160.0 166.1 (6.1) 161.6 168.8 (7.2)
========== ========== ============ ========== ========== ============
Diluted 161.0 167.6 (6.6) 163.1 169.4 (6.3)
========== ========== ============ ========== ========== ============
Shares outstanding 158.8 164.5 (5.7)
========== ========== ============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
Sept. 30, 2004 Dec. 31, 2003 Sept. 30, 2003
------------- ------------- -------------
Assets
Cash and cash equivalents $ 384.8 $ 634.7 $ 558.2
Accounts and notes receivable, net 158.0 182.4 121.4
Inventories, net 1,032.0 766.5 914.6
Other current assets 92.0 83.0 91.3
------------- ------------- -------------
Total current assets 1,666.8 1,666.6 1,685.5
Property, plant and equipment, net 599.0 513.1 438.3
Other assets, net 75.0 64.2 95.5
------------- ------------- -------------
Total assets $2,340.8 $2,243.9 $2,219.3
============= ============= =============
Liabilities and Stockholders' Equity
Short-term debt, including current maturities of long-term debt $ 85.3 $ 77.4 $ 39.5
Accounts payable 426.9 300.2 409.8
Accrued expenses 270.1 343.0 265.3
Income taxes payable 115.9 137.5 150.2
------------- ------------- -------------
Total current liabilities 898.2 858.1 864.8
Long-term debt, excluding current maturities 508.9 541.3 546.5
Other non-current liabilities 80.9 75.2 81.3
------------- ------------- -------------
Total liabilities 1,488.0 1,474.6 1,492.6
------------- ------------- -------------
Stockholders' equity 852.8 769.3 726.7
------------- ------------- -------------
Total liabilities and stockholders' equity $2,340.8 $2,243.9 $2,219.3
============= ============= =============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Nine Months Ended
September 30,
2004 2003
---------- ----------
Cash flows from operating activities:
Net income $ 206.3 $ 171.2
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 73.3 68.8
Other items 11.3 15.9
Changes in operating assets and liabilities:
Receivables 24.7 77.6
Inventories (265.5) 54.2
Other current assets (9.7) (11.7)
Accounts payable, accrued expenses and income
taxes payable 43.6 33.7
---------- ----------
Net cash provided by operating activities 84.0 409.7
---------- ----------
Cash flows from investing activities:
Additions to property, plant and equipment (164.1) (88.6)
Proceeds from sale of property, plant and equipment 2.4 0.3
Proceeds from sale of installation subsidiary - 4.7
Other investing activities (11.4) (2.5)
---------- ----------
Net cash used in investing activities (173.1) (86.1)
---------- ----------
Cash flows from financing activities:
Purchases of treasury stock (206.3) (209.4)
Sales of treasury stock to employee stock plans 27.3 27.1
Proceeds from exercise of stock options 41.7 6.4
Changes in short-term borrowings, net 16.1 (16.0)
Repayments of long-term borrowings (39.6) (20.0)
---------- ----------
Net cash used in investing activities (160.8) (211.9)
---------- ----------
Net (decrease) / increase in cash and cash
equivalents (249.9) 111.7
Cash and cash equivalents, beginning of period 634.7 446.5
---------- ----------
Cash and cash equivalents, end of period $ 384.8 $ 558.2
========== ==========