Boston, MA 03/04/2014 (wallstreetpr) – RadioShack Corporation (NYSE:RSH) has reported its fourth quarter earnings for the period ending December 31, 2013 in which the Chief Executive Officer Joseph Magnacca pointed out was heavily driven by the holiday season that had low store traffic. The quarter saw the company performing dismally and as a result plans to close some of its stores. RadioShack results were also impacted by increased promotional activity especially in the consumer electronics segments.
Despite all the challenges in the quarter RadioShack Corporation (NYSE:RSH) continued to thrive on its core pillars of repositioning its brands, revamping product assortment, reinvigorating stores as well as operational efficiency and financial flexibility. This are the key points that RadioShack intends to use as it strives for a turnaround in terms of earnings and net profits.
Fourth quarter earnings highlights
Total net sales and operating revenues for thequarter came in at $935.4 million for the quarter against $1.2 billion reported for the same quarter a year ago. Comparable store sale were also down by 19% heavily affected by soft mobility levels in the industry.
Comparable gross profit dropped from highs of $419.3 million reported for the same quarter a year ago to lows of $278.4 million, general and administrative expenses clocked in at $389.3 million compared to $383.5 million same quarter a year earlier
Operating loss was also on a surge, clocking highs of $344 million for the quarter compared to lows of $25 million for the same quarter a year earlier. Adjusted net loss on an adjusted basis came in at $239.9 million excluding non-cash and one time reserves.
RadioShack Corporation (NYSE:RSH) net loss more than doubled in the quarter compared to lows of $139.4 million for the same quarter a year ago to come in at highs of $400.2 million
RadioShack Corporation (NYSE:RSH) liquidity levels as of December 31, 2013 came in at $554.3 million inclusive of $179.8 million in cash and cash equivalents as well as $374.5 million in credit agreement due in 2018.RackShak total debt as of December 31, 2013 stood at $614 million.
The dismal performance in the quarter has prompted RadioShack Corporation (NYSE:RSH) to close up to 1,100 US store as it plans to save on its operational costs. This will be twice as much stores closed at once compared to last month.
