RadioShack Corp. Reports Operating Results (10-K)

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Feb 21, 2012
RadioShack Corp. (RSH, Financial) filed Annual Report for the period ended 2011-12-31.

Radioshack Corp has a market cap of $786.7 million; its shares were traded at around $7.88 with a P/E ratio of 6 and P/S ratio of 0.2. The dividend yield of Radioshack Corp stocks is 6.4%. Radioshack Corp had an annual average earning growth of 1.2% over the past 10 years.

Highlight of Business Operations:

The aggregate amount of upfront commission revenue and residual income received from wireless service providers and recorded in this platform was $1,499.1 million, $1,270.5 million and $926.5 million for 2011, 2010 and 2009, respectively.

The sales decrease from 2009 to 2010 in the signature platform includes a decrease in sales of digital-to-analog television converter boxes. Consolidated sales of converter boxes, which were predominantly sold in our U.S. RadioShack company-operated stores, were $33.7 million and $170.1 million in 2010 and 2009, respectively.

Consolidated gross profit and gross margin for 2011 were $1,810.8 million and 41.4%, respectively, compared with $1,913.7 million and 44.9%, respectively, in 2010, resulting in a 5.4% decrease in gross profit dollars and a 3.5 percentage point decrease in our gross margin.

Sales in our signature platform decreased 12.7% in 2010. This sales decrease was primarily driven by decreased sales of digital-to-analog television converter boxes and television antennas as well as general and special purpose batteries, which were partially offset by increased sales of wireless accessories. Consolidated sales of converter boxes were $33.7 million and $170.1 million in 2010 and 2009, respectively. Converter box sales have decreased since the transition to digital television occurred in June 2009.

Consolidated gross profit and gross margin for 2010 were $1,913.7 million and 44.9%, respectively, compared with $1,873.1 million and 46.0%, respectively, in 2009, resulting in a 2.2% increase in gross profit dollars and a 110 basis point decrease in our gross margin.

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