Radio Shack 2009 Annual Report Download - page 5

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2 2009 ANNUAL REPORT
2009 was a significant and exciting year for
RadioShack during which we continued to
implement several long-term strategic initiatives:
to strengthen our financial position, to improve
the quality of our operations, and to revitalize
our brand. Our progress required tremendous
effort from the entire team. Despite challenging
economic conditions, we improved our margins,
built our cash position, and controlled our costs. At
the same time, we continued to make operational
improvements that reinforced our strategic themes
of mobility, innovation, and service. Our success in
each of these areas strengthened our organization.
In the third quarter, we leveraged this strength by
launching our new brand platform — The Shack®
— which quickly captured the attention of
consumers and the marketplace and clearly
highlighted our strategic areas of focus.
In 2009, we demonstrated the value of our mobility
focus, underscored the strength of our management
team, and made good on our commitment to deliver
profitable growth. Moreover, with an eye to the
future, we made RadioShack a stronger company
with a clearer value proposition: a mobile authority
that combines innovative personal technology, an
inviting shopping experience, and smart associates
who help consumers find products and services
that are exactly right for their needs.
BUILDING OUR FINANCIAL STRENGTH
RadioShack has internalized a culture of financial
discipline that enabled us to deliver solid results
even in uncertain economic times. In 2009, we
drew on this discipline to build our financial
position. We took decisive steps to control costs,
to meet customer needs profitably, and to fortify
our balance sheet. Our financial results reflect
these actions. In 2009, we increased net sales
and operating revenues to $4.28 billion, an
improvement of 1.2 percent compared with
2008. We delivered net income of $205 million,
or $1.63 per share, up 8.2 percent from 2008.
We overcame slow customer traffic to increase
same-store sales by 1.3 percent. In addition, while
we invested in our business throughout the year,
by year-end 2009 we had a cash balance of
$908 million, an increase of $93 million compared
with the prior year.
CONNECTING CONSUMERS AND TECHNOLOGY
RadioShack’s more than 6,500 locations in
the United States and Mexico give us a unique
competitive advantage in scale, reach, and
convenience. We continue to capitalize on this
advantage by cultivating traits that differentiate
RadioShack in the marketplace, such as an
appealing store format, a comfortable store
size, a carefully tailored product assortment,
DEAR SHAREHOLDERS:
LETTER TO SHAREHOLDERS
Julian C. Day, Chairman and Chief Executive Officer