) posted mixed second-quarter 2013 financial results. Notably,
the comparable store sales for the company-operated stores and
kiosks (stores and kiosks that have been operational for at least
a year) were up 1.3% in the reported quarter. This is a key
retail performance indicator measuring growth from the existing
sales locations. Comparable store sales were up for the first
time since 2010.
GAAP net loss from continuing operations in second-quarter
2013 was $53.4 million or a loss of 53 cents per share compared
with a net loss of $21 million or a loss of 16 cents per share in
the year-ago quarter. Quarterly loss per share of 53 cents was
significantly higher than the Zacks Consensus Estimate of a loss
per share of 24 cents. Total revenue was $844.5 million, down
0.5% year over year. However, revenues surpassed the Zacks
Consensus Estimate of $814 million.
Quarterly gross profit was $313.8 million compared with $340.2
million in the prior-year quarter. Gross margin was 37.2%
compared with 40.1% in the prior-year quarter. Selling, general,
and administrative expenses were $336.9 million, remaining same
year over year. Operating loss was $41.4 million compared with
$14.1 million in the year-ago quarter.
During the first half of 2013, RadioShack generated $63
million in cash from operations compared with $22.9 million in
the year-ago period. Free cash flow, in the reported period, was
$51.3 million compared with a negative $4.8 million in the
prior-year period. At the end of the first half of 2013,
RadioShack had $432 million in cash & cash equivalent
compared with $537.5 million at the end of 2012. Total debt, at
the end of the reported quarter, was $712.7 million compared with
$777.7 million at the end of 2012. The debt-to-capitalization
ratio was 0.50 compared with 0.45 at the end of 2012.
U.S. RadioShack Company-operated store
segment, which is the prime contributor to the total revenue, was
down 0.5% year over year to $768.5 million. Operating income was
$39.4 million, down 45.3% year over year.
segment revenues decreased 0.5% year over year to $75.8 million.
Operating income was $3.3 million, down 45% year over year.
Other Stocks to Consider
RadioShack currently has a Zacks Rank #5 (Strong Sell). While
we prefer to avoid RadioShack until we see signs of improvement
in the company's performance, other stocks in the electronics
retail industry worth a look are
). While Conns currently has a Zacks Rank #1 (Strong Buy), both
GameStop and hhgregg carry a Zacks Rank #2 (Buy).
CONNS INC (CONN): Free Stock Analysis Report
GAMESTOP CORP (GME): Free Stock Analysis
HHGREGG INC (HGG): Free Stock Analysis Report
RADIOSHACK CORP (RSH): Free Stock Analysis
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