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Home > Fortune 500 Companies > Radioshack Corp
Radioshack Corp
Radioshack Corp is a publicly traded company having a good stock performance result. Radioshack Corp is a fortune 500 stock listed company trading under RSH.
RadioShack is one of the leading consumer electronics retail chains in North America with more than 7,460 outlets in the US, Puerto Rico, the Virgin Islands, Canada, and Mexico. Its stores offer a variety of products, including computers, DVD players, electronic toys, telephones, and, of course, radio. The stores also sell third-party services such as wireless calling plans and direct satellite service. In addition, RadioShack sells a wide range of electronics parts and components. The chain includes more than 1,700 dealer outlets and about 750 kiosks located primarily in malls and SAM'S CLUB stores.
RadioShack Corporation recently announced net income of 49.5 million dollars or 0.36 dollars per diluted share for the quarter ended December 31, 2005 versus net income of 130.9 million dollars or 0.81 dollars per diluted share for the quarter ended December 31, 2004. This represents a fourth quarter 2005 rate of decline of 62 percent in net income and 56 percent in diluted earnings per share. Before the cumulative effect of a change in accounting principle, fourth quarter 2005 diluted earnings per share was 0.38 dollars.
The fourth quarter 2005 gross margin rate was 41.1 percent versus 49.3 percent the previous year, a decline of 819 basis points. The decline was driven primarily by the write down of 62 million dollars in inventory as well as a merchandise mix shift and more promotional activity versus the prior period.
The collective full year impact to net income from identifiable transition costs related to RadioShack's termination of its Verizon Wireless agreement was 19 million dollars due to inventory write-downs and labor. The vast majority of costs were incurred in the fourth quarter.
Fiscal year 2005 comparable store sales were up 1 percent versus the prior year. Total sales in fiscal 2005 were 5,082 million dollars versus 4,841 million dollars in fiscal 2004, an increase of 5 percent.
RadioShack generated 158.5 million dollars in free cash flow in 2005. Free cash flow for 2005 came in higher than management's prior projections largely due to the timing of year end reconciliation of matters related to the transition of wireless carriers. This factor drove accounts payable at year end approximately 65 million dollars higher than anticipated.
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