) posted highly disappointing first-quarter 2013 financial
results, which fell below the Zacks Consensus Estimates. This
somber condition is mainly attributed to weakness in the
company's postpaid wireless business.
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 5.7% in the reported quarter. This is a key
retail performance indicator measuring growth from the existing
GAAP net loss from continuing operations in first-quarter 2013
was $34.8 million or a loss of 35 cents per share compared with a
net loss of $4.7 million or 5 cents per share in the year-ago
quarter. Quarterly loss per share of 35 cents was significantly
higher than the Zacks Consensus Estimate of a loss per share of
11 cents. Net revenue was $849 million, down 7% year over
year and also fell below the Zacks Consensus Estimate of $952
Quarterly gross profit was $337.3 million compared with $370.1
million in the prior-year quarter. Gross margin was 39.7%
compared with 40.5% in the prior-year quarter. This was mainly
due to an unfavorable sales mix with lower margin smartphones
coupled with the decline in the sale of post-paid wireless
Selling, general, and administrative expenses were $337.9
million compared with $345.3 million in the year-ago quarter.
Operating loss was $18.5 million compared with an operating
income of $7.1 million in the year-ago quarter.
During the first quarter of 2013, RadioShack generated $16.9
million in cash from operations compared with $48.5 million in
the year-ago quarter. Free cash flow (cash flow from operations
less capital expenditures) was $11.8 million compared with $37.3
million in the prior-year quarter.
At the end of the first quarter of 2013, RadioShack had $434.9
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 $711.9 million compared with $777.7 million
at the end of 2012. Debt-to-capitalization ratio was 0.47
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 7.6% year over year to $770.1 million. Operating income was
$61.2 million, down 33% year over year.
segment revenue decreased 1% year over year to $78.9 million.
Operating income was $8.3 million, remaining same year over
Other Stocks to Consider
RadioShack currently has a Zacks Rank #3 (Hold). Other stocks
to consider in the retail industry include
Costco Wholesale Corp.
). While Conns currently has a Zacks Rank #1 (Strong Buy), both
Costco and hhgregg carry a Zacks Rank #2 (Buy).
CONNS INC (CONN): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis
HHGREGG INC (HGG): Free Stock Analysis Report
RADIOSHACK CORP (RSH): Free Stock Analysis
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