UPDATE: RadioShack Exploring Strategic Options, Posts Q2 Loss
RadioShack (NYSE: RSH) posted a loss in the second quarter.
The Fort Worth, Texas-based company posted a quarterly loss from continuing operations of $137.4 million, or $1.35 per share, versus a year-ago loss from continuing operations of $51.4 million. On an adjusted basis, the company's loss from continuing operations came in at $101.5 million, versus a yera-ago adjusted loss from continuing operations of $62.9 million. Excluding one-time items, it lost $1 per share.
Its total net sales and operating revenues fell to $673.8 million from $861.4 million, while comparable store sales declined 20.0% in the quarter. However, analysts were projecting a loss of $0.66 per share on revenue of $736 million.
RadioShack posted an operating loss of $119.4 million, versus an operating loss of $51.1 million last year. On an adjusted basis, operating loss came in at $83.5 million for the recent quarter.
Its consolidated gross profit fell to $237.6 million from $301.5 million, while consolidated selling, general and administrative expenses declined to $323.6 million from $334.4 million.
RadioShack ended the second quarter with total liquidity of $182.5 million.
The company said that it was in advanced discussions with a number of parties and exploring options to overhaul balance sheet.
Joseph C. Magnacca, chief executive officer, 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”
RadioShack shares jumped 8.49% to $1.010 in pre-market trading.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.