Exhibit 99.1
RadioShack Corporation Announces First Quarter 2003 Net Income
Of $56.6 Million, $0.33 per Share
FORT WORTH, Texas, April 22 /PRNewswire-FirstCall/ -- RadioShack
Corporation (NYSE: RSH) today announced first quarter net income of
$56.6 million or $0.33 per diluted share for the quarter ended March 31, 2003,
compared to net income of $57.6 million or $0.31 per diluted share for the
quarter ended March 31, 2002.
Comparable store sales for the first quarter 2003 were up 5% compared to
the prior year. Total sales in the first quarter 2003 were up 3% to
$1,070 million, compared to total sales of $1,034 million for the previous
year. Wireless communications department sales for the first quarter of 2003
were up 14%.
"RadioShack's first quarter financial results were driven by strong sales
of highly relevant electronics products and services that today's customers
demand and RadioShack is best-positioned to sell," said Leonard Roberts,
chairman and chief executive officer of RadioShack Corporation. "Results in
wireless, digital photography, and other successful categories were driven by
sound execution from our associates and an improved store layout."
First quarter 2003 inventory turnover was 2.6 times versus 2.4 a year ago.
Compared to last year, first quarter 2003 inventory was only 1.6% higher
despite a 3% sales gain. Free cash flow(1) for the first quarter of 2003 was
$82 million.
Financial Guidance
-- For the second quarter of 2003, RadioShack anticipates generating
diluted earnings per share of $0.27 - $0.30.
-- For the full year 2003, RadioShack continues to anticipate earnings
per share to be at least $1.60, representing a 13% increase over its
full year adjusted 2002 earnings per share. The $1.60 is based upon
the following assumptions:
-- Approximately 3.5% to 4.0% growth in sales and SG&A,
-- Gross margin improvement of 0 to 20 basis points, and
-- Average year-end shares of 168 million.
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 April 30, 2003 at 11:59 p.m. ET.
Statements made in this press release which are forward-looking statements
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 Securities and
Exchange Commission such as RadioShack's most recent Form 10-K and 10-Q.
Fort Worth-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 7,200 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," 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 .
(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.
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(In millions, except per share amounts)
Three Months Ended Increase/
March 31, (Decrease)
2003 vs
2003 2002 2002
Net sales and operating revenues $1,070.3 $1,034.4 $35.9
Cost of products sold 542.9 514.7 28.2
Gross profit 527.4 519.7 7.7
Operating expenses:
Selling, general and administrative 407.8 393.2 14.6
Depreciation and amortization 22.6 24.6 (2.0)
Total operating expenses 430.4 417.8 12.6
Operating income 97.0 101.9 (4.9)
Interest income 1.5 1.8 (0.3)
Interest expense (9.6) (10.8) 1.2
Other income 2.4 --- 2.4
Income before income taxes 91.3 92.9 (1.6)
Provision for income taxes 34.7 35.3 (0.6)
Net income 56.6 57.6 (1.0)
Net income per common share:
Basic $0.33 $0.32 $0.01
Diluted $0.33 $0.31 $0.02
Shares used in computing earnings per
common share:
Basic 171.4 176.8 (5.4)
Diluted 171.8 183.6 (11.8)
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
March 31, December 31, March 31
2003 2002 2002
Assets
Cash and cash equivalents $456.7 $446.5 $434.4
Accounts and notes receivable, net 164.6 206.1 217.3
Inventories 844.3 971.2 831.1
Other current assets 84.2 83.1 88.8
Total current assets 1,549.8 1,706.9 1,571.6
Property, plant and equipment, net 419.3 421.6 407.4
Other assets 98.1 99.4 108.9
Total assets $2,067.2 $2,227.9 $2,087.9
Liabilities and Stockholders' Equity
Short-term debt $16.0 $36.0 $72.2
Accounts payable 216.6 312.6 200.1
Accrued expenses 277.0 318.7 265.0
Income taxes payable 155.5 160.9 157.7
Total current liabilities 665.1 828.2 695.0
Long-term debt, excluding current
maturities 590.7 591.3 543.5
Other non-current liabilities 78.4 80.3 69.9
Total liabilities 1,334.2 1,499.8 1,308.4
Stockholders' equity 733.0 728.1 779.5
Total liabilities and stockholders'
equity $2,067.2 $2,227.9 $2,087.9
RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
For the Three Months Ended
March 31
2003 2002
Cash flows from operating activities:
Net income $56.6 $57.6
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 22.6 24.6
Other items 3.3 1.7
Provision for credit losses and bad debts (0.1) 1.5
Changes in operating assets and liabilities:
Receivables 41.6 59.3
Inventories 126.9 118.7
Other current assets (1.1) (1.8)
Accounts payable, accrued expenses
and income taxes payable (146.5) (103.2)
Net cash provided by operating activities 103.3 158.4
Cash flows from investing activities:
Additions to property, plant and equipment (21.4) (16.0)
Proceeds from sale of property,
plant and equipment 0.1 1.0
Other investing activities (0.1) ---
Net cash used in investing activities (21.4) (15.0)
Cash flows from financing activities:
Purchases of treasury stock (62.5) (72.0)
Sale of treasury stock to employee stock plans 10.5 13.3
Proceeds from exercise of stock options 0.3 2.5
Dividends paid --- (0.8)
Repayments of long-term borrowings (20.0) (53.4)
Net cash used in financing activities (71.7) (110.4)
Net increase in cash and cash equivalents 10.2 33.0
Cash and cash equivalents, beginning
of period 446.5 401.4
Cash and cash equivalents, end of period $456.7 $434.4
SOURCE RadioShack Corporation