RadioShack Corporation Announces Financial Results for the Third Quarter 2009

FORT WORTH, Texas, Oct. 26 /PRNewswire-FirstCall/ -- RadioShack Corporation
(NYSE: RSH) today announced net income for the third quarter ended September
30, 2009, of $37.4 million, or $0.30 per diluted share, compared with net
income of $49.1 million, or $0.38 per diluted share, reported for the third
quarter ended September 30, 2008.

Operating income for the third quarter was $69.4 million, or 7.0 percent of
sales, compared with $84.9 million, or 8.3 percent of sales, last year.

Total net sales and operating revenues were down 3.1 percent to $990.0 million
compared with $1,021.9 million for the same period last year. Comparable
same-store sales for company-operated stores and kiosks decreased 2.9 percent
during the third quarter compared with the third quarter of 2008.

Cash and cash equivalents as of September 30, 2009 were $856.7 million
compared with $824.1 million for September 30, 2008. Inventories of $737.4
million were $56.2 million higher than at the end of the third quarter of last
year.

Commenting on the financial results, Jim Gooch, Executive Vice President and
Chief Financial Officer, said, "Our financial performance improved in the
latter part of the quarter, primarily driven by our strong mobility business
combined with an economy showing some signs of potential stabilization."

Capital expenditures for the first nine months of 2009 totaled $62.1 million.
The Company continues to estimate that capital expenditures for the full year
of 2009 will be in the range of $75 million to $100 million.

"Two key strategic efforts continue to be primary areas of focus for the
organization," said Julian C. Day, Chairman and Chief Executive Officer.
"First, the launch of the 'THE SHACK' brand platform was a success, and we
will continue to refine and invest in this positioning. Second, the
introduction of T-Mobile in our company-operated stores and Verizon Wireless
in our Sam's Club Kiosks further enhances our mobility proposition. Together
with AT&T and Sprint, we now offer a broader range of choices to fit
consumers' needs."

Third Quarter Results

Net Sales and Operating Revenues

Total net sales and operating revenues in the third quarter of 2009 decreased
$31.9 million to $990.0 million compared with $1,021.9 million for the same
period last year. The 3.1 percent decrease was attributable to a 3.5 percent
decrease in the sales generated by company-operated stores; a 17.8 percent
decrease in kiosk sales; and a 13.5 percent increase in other sales. The
decrease in kiosk sales is primarily due to a 17.1% sales gain in our
continuing kiosks being offset by declines resulting from a reduced number of
locations. Other sales were up for the quarter primarily due to the addition
of sales generated by RadioShack de Mexico which was acquired in December 2008
which was partially offset by a 15.7 percent decline in dealer sales and a 5.1
percent decrease in online sales during the third quarter.

Third quarter comparable store sales for company-operated stores and kiosks
decreased 2.9 percent, compared with the third quarter of 2008. This decrease
was driven primarily by sales declines in digital-to-analog converter boxes,
laptop computers, batteries, wireless accessories, and GPS products. These
sales declines were substantially offset by increased sales in our Sprint
Nextel postpaid wireless business, increased sales of prepaid wireless
handsets and airtime, the addition of T-Mobile as a postpaid wireless carrier,
and increased sales of netbooks.

Gross Profit

Consolidated gross profit for the third quarter of 2009 was $471.1 million, or
47.6 percent of sales, compared with $477.4 million, or 46.7 percent of sales,
for the third quarter last year. The increase of 90 basis points in our gross
margin rate was primarily driven by a change in our sales mix away from lower
margin products such as converter boxes, laptops and GPS into higher margin
products such as postpaid and prepaid wireless.

Selling, General and Administrative

Consolidated selling, general and administrative expenses ("SG&A") for the
third quarter of 2009 were $380.7 million, or 38.5 percent of sales, compared
with $370.4 million, or 36.2 percent of sales, for the third quarter last
year. The increase in SG&A for the third quarter was primarily due to
increased compensation expense, legal settlements and advertising expense
related to our new brand creative platform, "THE SHACK," partially offset by
reductions in product specific promotional activities. The increase to
compensation expense was driven by incentive compensation paid on increased
wireless sales, additional employee headcount across our stores, and the full
consolidation of our Mexican subsidiary in 2009.

First Nine Months Results

Net Sales and Operating Revenues

Total net sales and operating revenues for the first nine months ended
September 30, 2009, were $2,957.8 million compared with $2,965.8 million for
the same time period last year. The decrease was attributable to a 1.0 percent
decrease in company-operated stores, decreases in kiosk operations of 10.5
percent, and a 13.7 percent decrease in sales to independent dealers. These
decreases were partially offset by sales generated from RadioShack de Mexico
which was acquired in December 2008 and an online sales increase of 13.8
percent.

Comparable same-store sales for company-operated stores and kiosks for the
first nine months of 2009 decreased 0.7 percent compared with 2008. The
decrease in comparable store sales was primarily due to sales declines in
wireless accessories, GPS products, digital music players, and digital
cameras, but was partially offset by increased sales in our Sprint Nextel
postpaid wireless business, sales of netbook computers, increased sales of
prepaid wireless handsets and airtime, increased sales of digital-to-analog
converter boxes in the first quarter of 2009 and increased sales of digital
televisions and television antennas in the first half of 2009.

Gross Profit

Consolidated gross profit for the first nine months of 2009 was $1,383.5
million, or 46.8 percent of sales, compared with $1,396.4 million, or 47.1
percent of sales, last year. The decrease of 30 basis points in our gross
margin rate was primarily driven by a change in our sales mix towards lower
margin products.

Selling, General and Administrative

Consolidated selling, general and administrative expenses for the first nine
months of 2009 were $1,082.2 million, or 36.6 percent of sales, compared with
consolidated selling, general and administrative expenses for the first nine
months of 2008 of $1,108.2 million, or 37.4 percent of sales. The decrease in
SG&A expense for the first nine months of 2009 resulted primarily from
decreased advertising expense in the first half of 2009.

In addition, SG&A expense for the first nine months of 2008 included a net
charge of $12.1 million associated with the amended lease for our corporate
headquarters and a benefit of $5.1 million related to a sales and use tax
settlement.

Operating Income

Operating income for the first nine months of 2009 was $237.2 million, or 8.0
percent of sales, compared with operating income for the first nine months of
2008 of $220.4 million, or 7.4 percent of sales.

Forward-Looking Statements

This press release contains "forward-looking statements," as referenced in the
Private Securities Litigation Reform Act of 1995 ("the Act"), and those
statements are intended to be subject to the protection of the safe harbor for
forward looking statements in the Act. These forward-looking statements
reflect management's current views and projections regarding future economic
conditions, retail industry environments and company performance. Certain
important factors could cause actual results to differ materially from those
in the forward looking statements. These factors include, but are not limited
to, sales performance, economic conditions, unemployment rates, product
demand, consumer spending, expense levels, availability and cost of capital,
legal and regulatory changes, competitive activity, interest rates, the value
of the U.S. dollar and other currencies, pandemics, acts of terrorism, war,
changes in the company's financial condition, availability of products, theft,
transmission or unauthorized disclosure of customer, employee or company
information, and other risks associated with the company's vendors and service
providers, the regulatory environment and factors affecting the retail
category in general. Additional information regarding these and other factors
is described in the company's filings with the SEC, including its most recent
Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and its Current
Report on Form 8-K filed on August 11, 2008.

About RadioShack Corporation

RadioShack Corporation (NYSE: RSH), headquartered in Fort Worth, Texas, is one
of the nation's most experienced and trusted consumer electronics specialty
retailers, offering innovative products and services from leading brands. Our
knowledgeable, helpful sales associates are committed to enhancing the
in-store shopping experience by listening to our customers, offering advice,
and partnering with them to find the best technology solutions that fit their
needs. Operating from convenient and accessible neighborhood and mall
locations, the company has approximately 4,470 company-operated stores; almost
1,300 dealer outlets; over 450 wireless phone kiosks throughout the U.S.; and
approximately 200 company-operated stores in Mexico. For more information on
RadioShack Corporation, or to purchase items online, visit www.RadioShack.com.

RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(In millions, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----

Net sales and operating
revenues $990.0 $1,021.9 $2,957.8 $2,965.8
Cost of products sold
(includes depreciation
amounts of $2.4 million,
$3.0 million, $7.2 million,
and $8.1 million, respectively) 518.9 544.5 1,574.3 1,569.4
----- ----- ------- -------
Gross profit 471.1 477.4 1,383.5 1,396.4
----- ----- ------- -------

Operating expenses:
Selling, general and
administrative 380.7 370.4 1,082.2 1,108.2
Depreciation and amortization 20.5 21.5 63.1 66.0
Impairment of long-lived
assets 0.5 0.6 1.0 1.8
--- --- --- ---
Total operating expenses 401.7 392.5 1,146.3 1,176.0
----- ----- ------- -------

Operating income 69.4 84.9 237.2 220.4

Interest income 0.9 3.9 3.9 10.9
Interest expense (11.2) (9.3) (33.8) (23.1)
Other loss (1.6) (0.1) (1.6) (2.2)
--- --- --- ---

Income before income taxes 57.5 79.4 205.7 206.0
Income tax expense 20.1 30.3 76.4 76.7
---- ---- ---- ----

Net income $37.4 $49.1 $129.3 $129.3
===== ===== ====== ======

Net income per share:

Basic and diluted $0.30 $0.38 $1.03 $0.99
===== ===== ===== =====

Shares used in computing net
income per share:

Basic 125.5 128.4 125.4 130.3
===== ===== ===== =====

Diluted 126.3 128.8 125.8 130.4
===== ===== ===== =====

RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)

September December September
30, 31, 30,
(In millions, except for share amounts) 2009 2008 2008
---- ---- ----
Assets
Current assets:
Cash and cash equivalents $856.7 $814.8 $824.1
Accounts and notes receivable, net 228.7 241.9 192.1
Inventories 737.4 636.3 681.2
Other current assets 100.2 98.6 116.4
----- ---- -----
Total current assets 1,923.0 1,791.6 1,813.8

Property, plant and equipment, net 286.5 306.4 278.6
Other assets, net 137.6 156.0 122.2
----- ----- -----
Total assets $2,347.1 $2,254.0 $2,214.6
======== ======== ========

Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt $62.8 $39.3 $35.9
Accounts payable 283.6 206.4 248.2
Accrued expenses and other
current liabilities 290.0 367.3 330.8
Income taxes payable 4.5 24.2 20.0
--- ---- ----
Total current liabilities 640.9 637.2 634.9

Long-term debt 624.9 659.5 649.8
Other non-current liabilities 81.3 96.5 99.1
---- ---- ----
Total liabilities 1,347.1 1,393.2 1,383.8

Total stockholders' equity 1,000.0 860.8 830.8
------- ----- -----
Total liabilities and
stockholders' equity $2,347.1 $2,254.0 $2,214.6
======== ======== ========

RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)

Nine Months Ended
September 30,
-------------
(In millions) 2009 2008
---- ----
Cash flows from operating activities:
Net income $129.3 $129.3
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 70.3 74.1
Amortization of discount on convertible
notes 10.2 1.9
Impairment of long-lived assets 1.0 1.8
Stock option compensation 7.0 7.9
Net change in liability for
unrecognized tax benefits (4.9) 3.7
Deferred income taxes 13.3 0.6
Other non-cash items 6.8 10.1
Provision for credit losses and
bad debts 0.2 0.4
Changes in operating assets and
liabilities:
Accounts and notes receivable 14.0 64.7
Inventories (89.1) 8.3
Other current assets 1.8 (8.5)
Accounts payable, accrued expenses,
income taxes payable and other (36.3) (119.0)
---- -----
Net cash provided by operating activities 123.6 175.3
----- -----

Cash flows from investing activities:
Additions to property, plant
and equipment (62.1) (45.0)
Proceeds from sale of property,
plant and equipment 0.2 0.5
Other investing activities -- 1.0
---- ---
Net cash used in investing activities (61.9) (43.5)
---- ----

Cash flows from financing activities:
Changes in short-term borrowings
and outstanding checks in excess of
cash balances, net 23.4 (20.2)
Repayments of borrowings (43.2) (5.0)
Purchases of treasury stock -- (111.4)
Issuance of convertible notes -- 375.0
Convertible notes issuance costs -- (9.4)
Purchase of convertible notes hedges -- (86.3)
Sale of common stock warrants -- 39.9
---- ----
Net cash (used in) provided by
financing activities (19.8) 182.6
---- -----

Net increase in cash and cash equivalents 41.9 314.4
Cash and cash equivalents, beginning
of period 814.8 509.7
----- -----
Cash and cash equivalents, end of period $856.7 $824.1
====== ======

SOURCE RadioShack Corporation

Investors, Martin O. Moad, Vice President and Controller, +1-817-415-2383,
Investor.Relations@RadioShack.com, or Media, Wendy Dominguez, Media Relations,
+1-817-415-3300, Media.Relations@RadioShack.com, both of RadioShack
Corporation