) gave yet another disappointing performance in the fourth
quarter of 2012, falling much below the Zacks Consensus
Estimates. The comparable store sales for the company-operated
stores and kiosks (stores and kiosks that have been operational
for at least a year) were down 7% in the reported quarter. This
is a key retail performance indicator measuring growth from the
existing sales locations.
GAAP net loss in the fourth quarter was $63.3 million or a
loss of 63 cents per share compared to a net income of $11.9
million or 12 cents per share in the year-ago quarter. The
reported loss was nowhere near the Zacks Consensus Estimate of a
loss of 3 cents. Net revenue was $1,296.1 million, down 6.5% year
over year and well below the Zacks Consensus Estimate of $1,368
Quarterly gross profit was $447.1 million compared with $482.4
million in the prior-year quarter. Gross margin was 34% compared
with 35% in the prior-year quarter. This was mainly due to an
unfavorable sales mix with lower margin smartphones coupled with
the decline in post-paid wireless handsets sold.
Selling, general, and administrative expenses were $408.6
million compared with $431.1 million in the year-ago quarter.
Operating income was $17.3 million compared with $30.5 million in
the year-ago quarter.
During 2012, RadioShack generated $43 million in cash from
operations compared with $217.9 million in 2011. Free cash flow
(cash flow from operations less capital expenditures) was a
negative $24.8 million compared with a positive $135.8 million in
At the year-end, RadioShack had $535.71 million in cash &
cash equivalent compared with $591.7 million at the end of 2011.
Total debt, at the end of 2012 was $777.7 million compared with
$670.6 million at the end of 2011. Debt-to-capitalization ratio
was 0.45 compared with 0.47 at the prior-year end.
U.S. RadioShack Company-operated
store segment, which is the prime contributor to the total
revenue, was down 7.8% year over year at $1,036.1 million.
Operating income was $112.3 million, down 22.8% year over
Target Mobile Centers
segment revenue was down 12.6% year over year at $124.7 million.
Operating income was $0.7 million compared with an operating loss
of $6.9 million in the year-ago quarter.
revenue increased 12.6% year over year to $135.3 million.
Operating income was $12 million, up 15.4% year over year.
Other Stocks to Consider
RadioShack currently has a Zacks Rank #2 (Buy). Other stocks
to consider in the Electronics retail industry include
Best Buy Co. Inc.
). While Conns currently has a Zacks Rank #2 (Buy), both Best Buy
and Target carries a Zacks Rank #3 (Hold).
BEST BUY (BBY): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
RADIOSHACK CORP (RSH): Free Stock Analysis
TARGET CORP (TGT): Free Stock Analysis Report
To read this article on Zacks.com click here.