RadioShack misses by $0.33, misses on revs
Reports Q2 (Jul) adj. loss of $1.00 per share, $0.33 worse than the Capital IQ Consensus Estimate of ($0.67); revenues fell 21.9% year/year to $673 mln vs the $726.28 mln consensus.
- Comparable store sales were down 20.0% (vs. -10.5% estimates) driven by traffic declines and soft performance in the mobility business.
- Consolidated gross profit was $506.3 million, or 35.9% of net sales, compared with $642.4 million last year, or 37.6% of net sales. The decline in gross profit dollars was primarily driven by a 24.7% decrease in sales in the mobility platform.
- Excluding inventory reserves related to store closures, our consolidated gross profit was $500.2 million, or 35.5% of net sales.
- The Company ended the quarter with total liquidity of $182.5 million at August 2, 2014, including $30.5 million in cash and cash equivalents and $152.0 million of availability under the 2018 Credit Agreement.
- This availability is net of letters of credit totaling $89.4 million and $43.0 million in borrowings outstanding at August 2, 2014.
- The Company's total debt was $658.0 million at August 2, 2014, which matures between 2018 and 2019.