RadioShack Q2 Loss Widens on 22% Drop in Revenue
RadioShack reported Q2/14 revenues of $673.8 million compared to $861.4 million last year and a loss of $137.4 million from continuing operations versus $51.4 million in Q2/13. First half 2014 revenue and losses from continuing operations of $1,410.5 million and $235.7 million, respectively compared to $1,709.8 million and $74.7 million last year.
Joseph C. Magnacca, CEO, said, “For the past 18 months we have been working hard on our turnaround plan. While we are advancing on many fronts, we may need additional capital in order to complete our work. As a result, we are actively exploring options for overhauling our balance sheet and are in advanced discussions with a number of parties. We are also working with our key financial stakeholders, including our existing lenders, bondholders, shareholders and landlords seeking to create a long-term solution. This may include a debt restructuring, a store base consolidation program, and other measures to make significant reductions in our cost structure. The details of a recapitalization have yet to be finalized, and we are reviewing several alternatives, some of which would require consent from our lenders.”
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.
To link to the Radio Shack news release, click here.
Previously on abfjournal: RadioShack Said to Be Seeking Refi from UBS, Standard General, September 11, 2014