RadioShack Q4 Loss Widens; To Close Up To 1,100 Underperforming Stores In U.S.

(RTTNews) - Consumer electronics retailer RadioShack Corp. (RSH) said that its fourth-quarter of 2013 net loss widened to $191.4 million or $1.90 per share, from $63.3 million or $0.63 per share in the same quarter last year.

On an adjusted basis, net loss was $129.9 million or $1.29 per share, which compared to an adjusted net income of $6.8 million or $0.07 per share last year.

Operating loss for the fourth quarter was $166.1 million compared to operating income of $16 million last year. On an adjusted basis, operating loss was $115.2 million excluding certain non-cash and one-time reserves on inventory and impairments of fixed assets and goodwill.

Total net sales and operating revenues were $935.4 million, down from $1.171 billion last year. Comparable store sales were down 19% driven by traffic declines and soft performance in the mobility business.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.14 per share and revenues of $1.12 billion for the quarter. Analysts' estimates typically exclude special items.

Joseph Magnacca, chief executive officer, said, "Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues. Even in this environment, we're continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility."

The company expects to close up to 1,100 stores which have been selected based on location, area demographics, lease life and financial performance. The proposed store closure program is subject to the consent of its lenders under the 2018 Credit Agreement and the 2018 Term Loan.