RadioShack Corporation today announced that total sales for 2006 were down U.S. $304 million to $4.778 billion versus total sales of $5.082 billion for the same period last year. The company purports that reduction in sales was primarily the result of the store closures mid-year and the comparable store sales decline.
Net income for the full year ended Dec. 31, 2006 was $73.4 million or $0.54 per diluted share versus net income of $267.0 million or $1.79 per diluted share for the comparable prior year period.
The company announced a 65 percent increase in reported net income to $84.5 million, or $0.62 per diluted share, for the quarter ended Dec. 31, 2006. Net income for the quarter ended Dec. 31, 2005, was $51.2 million, or $0.38 per diluted share. Fourth quarter 2006 net income was favorably impacted by improved gross margin, a reduction in SG&A, and reduced interest expense when compared to the prior year. RadioShack's cash balance increased 111 percent or $248 million at the end of the fourth quarter of 2006 to $472 million versus $224 million at the end of the fourth quarter of 2005. The increase in cash was driven by improved working capital management and cash generated from net income.
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