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): February 17, 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 February 17, 2005 RadioShack Corporation (the "Company") issued a press
release containing certain information with respect to its fourth 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 17th day of February, 2005.
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 February 17, 2005.
February 17, 2005
RSH-2005-005
For further information contact:
James M. Grant, Kay Jackson,
Senior Director, Investor Relations Senior Director, Public 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 2004 Fourth Quarter,
Fiscal Year Financial Results
Fort Worth, Texas, February 17, 2005 - RadioShack Corporation (NYSE: RSH) today
announced net income of $130.9 million or $0.81 per diluted share for the
quarter ended December 31, 2004 versus net income of $127.3 million or $0.77 per
diluted share for the quarter ended December 31, 2003. This represents a fourth
quarter 2004 growth rate of 3% in net income and 5% in diluted earnings per
share.
As reported last month, fourth quarter 2004 comparable store sales were up 3%
versus the prior year. Total sales in the fourth quarter of 2004 were up 7% to
$1,593 million, compared to total sales of $1,490 million for the previous year.
"Strong sales and gross margin preservation were the keys to delivering higher
operating and net profits in the fourth quarter and for the entire fiscal year,"
said Leonard Roberts, chairman and chief executive officer. "The difference
between comparable and total sales in the fourth quarter of 2004 was the result
of the first step in our plan to expand channels and to position the company to
deliver higher growth."
For fiscal year 2004, RadioShack reported net income of $337.2 million or $2.08
per diluted share versus net income of $298.5 million or $1.77 per diluted share
in fiscal year 2003. This represents a fiscal year 2004 growth rate of 13% in
net income and 18% in diluted earnings per share.
Fiscal year 2004 comparable store sales were up 3% versus the prior year. Total
sales in fiscal 2004 were $4,841 million versus $4,649 million in fiscal 2003,
an increase of 4%.
"RadioShack had an outstanding 2004," Roberts said. "The company generated
higher sales growth, expanded gross margin, leveraged SG&A, and increased
operating income by 15%. Our investment in strategic growth channels, such as
Sam's Club and Sprint kiosks, impacting SG&A in the fourth quarter will serve as
a platform for profitable growth going forward."
Page 2
2005 Financial Guidance
RadioShack announced estimated fiscal year 2005 earnings per share of $2.34 to
$2.40. The estimate represents a $0.07 reduction versus previous guidance. In
addition, the estimate includes the impact of FAS123R requiring the expensing of
stock options. The fiscal year earnings are predicated upon the following
estimated financial metrics for 2005:
o Total sales growth of 9% to 11%,
o Gross margin rate down 20 to 60 basis points, and
o SG&A growth of 8% to 10%.
RadioShack also initiated first quarter 2005 earnings per share guidance of
$0.39 to $0.41 representing a decline of 5% to 0% versus first quarter 2004
earnings per share. Management looks forward to providing further insight and
its confidence into how the company will achieve its full-year guidance at its
annual institutional investor conference.
Today, starting at 9:30 a.m. ET, management will host a webcast to discuss its
financial results. The public is invited to listen to the event live on the
Internet at www.radioshackcorporation.com on the Investor Relations page. The
conference agenda is posted on the company's website too. The webcast will be
replayed until at least March 31, 2005.
Statements made in this news release which are forward-looking involve risks and
uncertainties and are indicated by words such as "estimated" 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; more than 500 SAM'S CLUB wireless kiosks; and a
growing number of mall-based Sprint PCS 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 Statement (Unaudited)
(In millions, except per share amounts)
Three Months Ended Increase/ Twelve Months Ended Increase/
December 31, (Decrease) December 31, (Decrease)
----------------------- ------------ ----------------------- ------------
2004 2003 2004 vs 2003 2004 2003 2004 vs 2003
---------- ---------- ------------ ---------- ---------- ------------
Net sales and operating revenues $1,593.3 $1,490.4 $ 102.9 $4,841.2 $4,649.3 $ 191.9
Cost of products sold 808.2 756.0 52.2 2,406.7 2,333.6 73.1
---------- ---------- ------------ ---------- ---------- ------------
Gross profit 785.1 734.4 50.7 2,434.5 2,315.7 118.8
---------- ---------- ------------ ---------- ---------- ------------
Operating expenses:
Selling, general and administrative 544.5 504.2 40.3 1,774.8 1,740.0 34.8
Depreciation and amortization 28.1 23.2 4.9 101.4 92.0 9.4
---------- ---------- ------------ ---------- ---------- ------------
Total operating expenses 572.6 527.4 45.2 1,876.2 1,832.0 44.2
---------- ---------- ------------ ---------- ---------- ------------
Operating income 212.5 207.0 5.5 558.3 483.7 74.6
Interest income 5.5 1.4 4.1 11.4 12.8 (1.4)
Interest expense (8.6) (7.6) (1.0) (29.6) (35.7) 6.1
Other income, net -- -- -- 2.0 12.0 (10.0)
---------- ---------- ------------ ---------- ---------- ------------
Income before income taxes 209.4 200.8 8.6 542.1 472.8 69.3
Provision for income taxes 78.5 73.5 5.0 204.9 174.3 30.6
---------- ---------- ------------ ---------- ---------- ------------
Net income $ 130.9 $ 127.3 $ 3.6 $ 337.2 $ 298.5 $ 38.7
========== ========== ============ ========== ========== ============
Net income per share:
Basic $ 0.82 $ 0.77 $ 0.05 $ 2.09 $ 1.78 $ 0.31
========== ========== ============ ========== ========== ============
Diluted $ 0.81 $ 0.77 $ 0.04 $ 2.08 $ 1.77 $ 0.31
========== ========== ============ ========== ========== ============
Avg shares used to compute earnings per share:
Basic 159.3 164.5 (5.2) 161.0 167.7 (6.7)
========== ========== ============ ========== ========== ============
Diluted 160.7 166.3 (5.6) 162.5 168.9 (6.4)
========== ========== ============ ========== ========== ============
Shares outstanding 158.2 162.5 (4.3)
========== ========== ============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
Dec. 31, 2004 Dec. 31, 2003
------------- -------------
Assets
Cash and cash equivalents $ 437.9 $ 634.7
Accounts and notes receivable, net 241.0 182.4
Inventories, net 1,003.7 766.5
Other current assets 92.5 83.0
------------- -------------
Total current assets 1,775.1 1,666.6
Property, plant and equipment, net 652.0 513.1
Other assets, net 89.6 64.2
------------- -------------
Total assets $2,516.7 $2,243.9
============= =============
Liabilities and Stockholders' Equity
Notes payable $ 55.6 $ 77.4
Accounts payable 442.2 300.2
Accrued expenses 342.1 343.0
Income taxes payable 117.5 137.5
------------- -------------
Total current liabilities 957.4 858.1
Long-term debt, excluding current maturities 506.9 541.3
Other non-current liabilities 130.3 75.2
------------- -------------
Total liabilities 1,594.6 1,474.6
------------- -------------
Stockholders' equity 922.1 769.3
------------- -------------
Total liabilities and stockholders' equity $2,516.7 $2,243.9
============= =============
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Year Ended December 31,
2004 2003
---------- ----------
Cash flows from operating activities:
Net income $ 337.2 $ 298.5
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 101.4 92.0
Provision for credit losses and bad debt (0.3) 0.4
Deferred income taxes and other items 50.2 51.7
Changes in operating assets and liabilities:
Receivables (53.0) 17.2
Inventories (234.2) 202.3
Other current assets (7.5) (5.2)
Accounts payable, accrued expenses, income
taxes payable, and other 158.7 (5.0)
---------- ----------
Net cash provided by operating activities 352.5 651.9
---------- ----------
Cash flows from investing activities:
Additions to property, plant and equipment (229.4) (189.6)
Proceeds from sale of property, plant and equipment 2.5 2.0
Proceeds from sale of installation subsidiary - 4.7
Purchase of retail subsidiary (59.1) -
Other investing activities (4.2) (6.0)
---------- ----------
Net cash used in investing activities (290.2) (188.9)
---------- ----------
Cash flows from financing activities:
Purchases of treasury stock (251.1) (286.2)
Sales of treasury stock to employee stock plans 35.4 35.8
Proceeds from exercise of stock options 50.4 15.7
Payments of dividends (39.7) (40.8)
Changes in short-term borrowings, net (14.0) 20.7
Repayments of long-term borrowings (40.1) (20.0)
---------- ----------
Net cash used in financing activities (259.1) (274.8)
---------- ----------
Net (decrease) increase in cash and cash
equivalents (196.8) 188.2
Cash and cash equivalents, beginning of period 634.7 446.5
---------- ----------
Cash and cash equivalents, end of period $ 437.9 $ 634.7
========== ==========