RadioShack reports wider-than-expected loss, misses on revs
Reports Q3 (Oct) loss of $1.23 per share, $0.20 worse than the Capital IQ Consensus Estimate of ($1.03); revenues fell 16.1% year/year to $650.2 mln vs the $714.63 mln consensus. Comparable store sales were down 13.4% driven by traffic declines and soft performance particularly in the mobility business.
- Co has begun a detailed set of cost reduction initiatives designed to enhance earnings by over $400 million annually
- "In addition, over the three-day Thanksgiving holiday, comparable store sales in our U.S. corporate stores were up 35 percent for our retail segment, while mobility was down 27 percent. It is notable that our core retail efforts are working, even as our mobility category is still experiencing challenges."
- The Company ended the quarter with total liquidity of $62.6 million at November 1, 2014, including $43.3 million in cash and cash equivalents and $19.3 million of availability under our 2018 Credit Agreement.
- This availability is net of letters of credit totaling $94.4 million and $233.9 million in borrowings outstanding at November 1, 2014. The Company's total debt was $841.5 million at November 1, 2014.