Consumer electronics retailer RadioShack Corp. (RSH) Tuesday reported a net loss for the fourth quarter, compared to a profit last year, hurt by a hefty charge related to deferred tax assets as well as lower revenues.
Dorvin Lively, CFO, said, "Overall, the fourth quarter continued to be impacted by challenges similar to those of the first three quarters of the year. The most significant contributing factor to the decline in our performance was the postpaid wireless business which saw a decline in transaction volume across the year, combined with a lower margin rate.''
The company reported a net loss of $63.3 million or $0.63 per share for the quarter, compared to a profit of $11.9 million or $0.12 per share last year. On average, 19 analysts polled by Thomson Reuters expected a loss of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales and operating revenues fell to $1.296 billion from $1.387 billion in the prior year. Analysts expected revenues of $1.36 billion for the quarter. Comparable store sales dropped 7 percent, driven by a decline in the mobility and consumer electronics platforms.
U.S. RadioShack company-operated stores generated $1.036 billion in the quarter, down 8 percent from last year. Revenues from Target Mobile centers dropped 13 percent to $124.7 million.
Income tax expense was $66 million, compared to $6 million last year, including a $67 million one-time non-cash charge which increased the valuation allowance against U.S. federal and state net deferred tax assets.
For the year, the company reported a net loss of $139.4 million or $1.39 per share, compared to a profit of $72.2 million or $0.70 per share in 2011. Revenues dropped to $4.258 billion from $4.378 billion.
RadioShack has been going through tough times. In November 2012, its chief executive James Gooch stepped down and on February 11 Joe Magnacca joined the firm as new CEO.
"Looking ahead, we will be focused on stabilizing the profitability of our business as well as our growth initiatives...With the addition of Joe and other new senior executives, we now have a strong management team in place focused on rebuilding the business and leading the company into the future,'' Lively added.
RSH settled at $3.05 on Monday.
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