RadioShack Corporation Announces Adjusted Earnings Per Share of $0.33 for The First Quarter of 2001

Total Sales Increase 9% During the Same Period



Apr 24, 2001, 01:00 ET from RadioShack Corporation

    FORT WORTH, Texas, April 24 /PRNewswire Interactive News Release/ --
 RadioShack Corporation (NYSE:   RSH) today announced adjusted earnings of
 $65.1 million or $0.33 per share for the quarter ended March 31, 2001, with
 adjustments made for a one-time, non-cash loss provision on an
 Internet-related investment security.  This compares to first quarter 2000
 adjusted net income of $67.9 million or $0.34 per share, with adjustments made
 for early vesting of store managers' restricted stock and the gain on the sale
 of marketable securities during the same period in 2000.  With the
 $30.0 million loss provision -- recognized due to a decline in value of an
 investment in a privately held, Internet-related company -- net income was
 $46.5 million or $0.23 per share in the March 2001 quarter.  This compares to
 unadjusted net income of $69.7 million or $0.35 per share in the same quarter
 a year ago.  Total sales for the Company were $1,139.5 million for the March
 quarter, up from $1,047.3 in the same quarter in the prior year.
     "Our first quarter 9% sales gain, on top of last year's 18% gain for the
 first quarter, is an incredible accomplishment in today's softening economy,"
 stated Leonard Roberts, chairman and chief executive officer of RadioShack
 Corporation.  "As we look ahead to the remainder of 2001, the entire
 RadioShack organization is intently focused on maintaining this steady sales
 growth, while better leveraging our SG&A expenses and gross margin structure.
 We remain committed to growing both the short-term and long-term profitability
 of our company and bringing even greater value to our shareholders."
     The company will host a conference call with management beginning at
 9:00 a.m. eastern daylight time.  To access the live audio cast of the
 conference call, please go to
 http://www.radioshackcorporation.com/ir/irfrm.html and select "audio."  To
 access a replay of the conference call, dial 800-633-8284 and enter pass code
 18498734.  The replay will be available beginning at 11:00 a.m. eastern
 daylight time today through 4:00 p.m. eastern daylight time on Monday,
 April 30th.
     The table below approximates RadioShack's adjusted net income in the first
 quarter.  See the Company's Consolidated Statements of Income and Consolidated
 Balance Sheets included in this news release for historical information.
 
 
      (in millions, except                   Three Months Ended March 31,
       per share amounts)                2001 (A)       2000 (B)  % Inc.(Dec.)
 
     Sales                             $1,139.5       $1,047.3          9%
 
     Gross Profit                         546.5          516.0
 
     Selling, General &
      Administrative Expenses             405.2          375.9
 
 
     Depreciation/Amortization             27.7           25.7
 
     Operating Income                     113.6          114.4         (1%)
 
     Adjusted Net Income                   65.1           67.9         (4%)
 
     Adjusted Earnings Per Diluted Share  $0.33          $0.34         (3%)
 
     Diluted Average Shares               195.5          198.9
 
      (A)  Includes adjustments for the provision for loss on an
           Internet-related investment security.
      (B)  Includes adjustments for the early vesting of store manager
           restricted stock awards and the gain on the sale of marketable
           securities.
 
     RadioShack Corporation is the nation's largest and most trusted consumer
 electronics retailer and offers both on- and off-line shopping convenience.
 With more than 7,100 stores and dealers, RadioShack sells more wireless
 telephones, telecommunications products and electronics parts and accessories
 than any other retailer.  It is estimated that 94 percent of Americans live or
 work within five minutes of a RadioShack store or dealer.  For more
 information, visit the RadioShack corporate web site at
 www.radioshackcorporation.com.
     Statements made in this press release which are forward-looking statements
 involve risk and uncertainties and are indicated by words such as
 "anticipation," "enhanced," "confidence," 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.
 
 
     RADIOSHACK CORPORATION AND SUBSIDIARIES
     Consolidated Statements of Income  (Unaudited)
     (In millions, except per share amounts)
                                                   Three Months Ended
                                                       March 31,
 
                                               2001                    2000
     Net sales and operating revenues      $1,139.5                $1,047.3
     Cost of products sold                    593.0                   531.3
     Gross profit                             546.5                   516.0
     Operating expenses/(income):
       Selling, general and
        administrative                        405.2                   374.0
       Depreciation and amortization           27.7                    25.7
       Restricted stock awards                   --                    (1.0)
     Total operating expenses                 432.9                   398.7
     Operating income                         113.6                   117.3
     Interest income                            4.4                     4.6
     Interest expense                         (13.0)                   (9.5)
     Provision for loss on Internet-
      related investment                      (30.0)                     --
     Income before income taxes                75.0                   112.4
     Provision for income taxes                28.5                    42.7
     Net income                                46.5                    69.7
     Preferred dividends                        1.3                     1.4
     Net income available to common
      shareholders                            $45.2                   $68.3
     Net income available per common
      share:
       Basic                                  $0.24                   $0.36
       Diluted                                $0.23                   $0.35
 
     Shares used in computing earnings
      per common share:
       Basic                                  186.6                   188.9
       Diluted                                195.5                   198.9
     Dividends declared per common share     $0.055                  $0.055
 
 
     RADIOSHACK CORPORATION AND SUBSIDIARIES
     Consolidated Balance Sheets (Unaudited)
     (In millions)
                                                    March 31,      March 31,
                                                      2001            2000
 
     Cash and cash equivalents                       $113.9          $87.2
     Accounts and notes receivable, net               351.9          234.2
     Inventories                                    1,061.0          967.6
     Other current assets                              68.8           77.8
         Total current assets                       1,595.6        1,366.8
     Property, plant and equipment, net               453.5          448.3
     Other assets, net of accumulated
      amortization                                    274.3          286.9
     Total assets                                  $2,323.4       $2,102.0
     Short-term debt                                 $407.5         $267.9
     Accounts payable                                 203.5          272.1
     Accrued expenses                                 239.7          242.2
     Income taxes payable                             140.7          139.7
         Total current liabilities                    991.4          921.9
     Long-term debt, excluding current
      maturities                                      249.8          318.3
     Other non-current liabilities                     66.1           51.4
          Total liabilities                         1,307.3        1,291.6
     Minority interest in consolidated
      subsidiary                                      100.0          100.0
     Common stock put options                           2.1           14.0
     Total stockholders' equity                       914.0          696.4
     Total liabilities and stockholders'
      equity                                       $2,323.4       $2,102.0
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE RadioShack Corporation
    FORT WORTH, Texas, April 24 /PRNewswire Interactive News Release/ --
 RadioShack Corporation (NYSE:   RSH) today announced adjusted earnings of
 $65.1 million or $0.33 per share for the quarter ended March 31, 2001, with
 adjustments made for a one-time, non-cash loss provision on an
 Internet-related investment security.  This compares to first quarter 2000
 adjusted net income of $67.9 million or $0.34 per share, with adjustments made
 for early vesting of store managers' restricted stock and the gain on the sale
 of marketable securities during the same period in 2000.  With the
 $30.0 million loss provision -- recognized due to a decline in value of an
 investment in a privately held, Internet-related company -- net income was
 $46.5 million or $0.23 per share in the March 2001 quarter.  This compares to
 unadjusted net income of $69.7 million or $0.35 per share in the same quarter
 a year ago.  Total sales for the Company were $1,139.5 million for the March
 quarter, up from $1,047.3 in the same quarter in the prior year.
     "Our first quarter 9% sales gain, on top of last year's 18% gain for the
 first quarter, is an incredible accomplishment in today's softening economy,"
 stated Leonard Roberts, chairman and chief executive officer of RadioShack
 Corporation.  "As we look ahead to the remainder of 2001, the entire
 RadioShack organization is intently focused on maintaining this steady sales
 growth, while better leveraging our SG&A expenses and gross margin structure.
 We remain committed to growing both the short-term and long-term profitability
 of our company and bringing even greater value to our shareholders."
     The company will host a conference call with management beginning at
 9:00 a.m. eastern daylight time.  To access the live audio cast of the
 conference call, please go to
 http://www.radioshackcorporation.com/ir/irfrm.html and select "audio."  To
 access a replay of the conference call, dial 800-633-8284 and enter pass code
 18498734.  The replay will be available beginning at 11:00 a.m. eastern
 daylight time today through 4:00 p.m. eastern daylight time on Monday,
 April 30th.
     The table below approximates RadioShack's adjusted net income in the first
 quarter.  See the Company's Consolidated Statements of Income and Consolidated
 Balance Sheets included in this news release for historical information.
 
 
      (in millions, except                   Three Months Ended March 31,
       per share amounts)                2001 (A)       2000 (B)  % Inc.(Dec.)
 
     Sales                             $1,139.5       $1,047.3          9%
 
     Gross Profit                         546.5          516.0
 
     Selling, General &
      Administrative Expenses             405.2          375.9
 
 
     Depreciation/Amortization             27.7           25.7
 
     Operating Income                     113.6          114.4         (1%)
 
     Adjusted Net Income                   65.1           67.9         (4%)
 
     Adjusted Earnings Per Diluted Share  $0.33          $0.34         (3%)
 
     Diluted Average Shares               195.5          198.9
 
      (A)  Includes adjustments for the provision for loss on an
           Internet-related investment security.
      (B)  Includes adjustments for the early vesting of store manager
           restricted stock awards and the gain on the sale of marketable
           securities.
 
     RadioShack Corporation is the nation's largest and most trusted consumer
 electronics retailer and offers both on- and off-line shopping convenience.
 With more than 7,100 stores and dealers, RadioShack sells more wireless
 telephones, telecommunications products and electronics parts and accessories
 than any other retailer.  It is estimated that 94 percent of Americans live or
 work within five minutes of a RadioShack store or dealer.  For more
 information, visit the RadioShack corporate web site at
 www.radioshackcorporation.com.
     Statements made in this press release which are forward-looking statements
 involve risk and uncertainties and are indicated by words such as
 "anticipation," "enhanced," "confidence," 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.
 
 
     RADIOSHACK CORPORATION AND SUBSIDIARIES
     Consolidated Statements of Income  (Unaudited)
     (In millions, except per share amounts)
                                                   Three Months Ended
                                                       March 31,
 
                                               2001                    2000
     Net sales and operating revenues      $1,139.5                $1,047.3
     Cost of products sold                    593.0                   531.3
     Gross profit                             546.5                   516.0
     Operating expenses/(income):
       Selling, general and
        administrative                        405.2                   374.0
       Depreciation and amortization           27.7                    25.7
       Restricted stock awards                   --                    (1.0)
     Total operating expenses                 432.9                   398.7
     Operating income                         113.6                   117.3
     Interest income                            4.4                     4.6
     Interest expense                         (13.0)                   (9.5)
     Provision for loss on Internet-
      related investment                      (30.0)                     --
     Income before income taxes                75.0                   112.4
     Provision for income taxes                28.5                    42.7
     Net income                                46.5                    69.7
     Preferred dividends                        1.3                     1.4
     Net income available to common
      shareholders                            $45.2                   $68.3
     Net income available per common
      share:
       Basic                                  $0.24                   $0.36
       Diluted                                $0.23                   $0.35
 
     Shares used in computing earnings
      per common share:
       Basic                                  186.6                   188.9
       Diluted                                195.5                   198.9
     Dividends declared per common share     $0.055                  $0.055
 
 
     RADIOSHACK CORPORATION AND SUBSIDIARIES
     Consolidated Balance Sheets (Unaudited)
     (In millions)
                                                    March 31,      March 31,
                                                      2001            2000
 
     Cash and cash equivalents                       $113.9          $87.2
     Accounts and notes receivable, net               351.9          234.2
     Inventories                                    1,061.0          967.6
     Other current assets                              68.8           77.8
         Total current assets                       1,595.6        1,366.8
     Property, plant and equipment, net               453.5          448.3
     Other assets, net of accumulated
      amortization                                    274.3          286.9
     Total assets                                  $2,323.4       $2,102.0
     Short-term debt                                 $407.5         $267.9
     Accounts payable                                 203.5          272.1
     Accrued expenses                                 239.7          242.2
     Income taxes payable                             140.7          139.7
         Total current liabilities                    991.4          921.9
     Long-term debt, excluding current
      maturities                                      249.8          318.3
     Other non-current liabilities                     66.1           51.4
          Total liabilities                         1,307.3        1,291.6
     Minority interest in consolidated
      subsidiary                                      100.0          100.0
     Common stock put options                           2.1           14.0
     Total stockholders' equity                       914.0          696.4
     Total liabilities and stockholders'
      equity                                       $2,323.4       $2,102.0
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21946556
 
 SOURCE  RadioShack Corporation

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