Radio Shack 2012 Annual Report Download - page 73

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71
NOTE 17 – QUARTERLY DATA (UNAUDITED)
As our operations are retail oriented, our business is subject to seasonal fluctuations, with the fourth quarter generally being
the most significant in terms of sales and profits because of the winter holiday selling season.
Three Months Ended
(In millions, except per share amounts)
March 31,
2012
June 30,
2012
September 30,
2012
December 31
2012
Net sales and operating revenues
(1)
$ 1,008.3 $ 953.2 $ 1,000.2 $ 1,296.1
Cost of products sold 613.8 592.9 640.3 849.0
Gross profit 394.5 360.3 359.9 447.1
Operating expenses:
Selling, general and administrative
(
2
)
(
3
)
373.3 362.5 384.6 408.6
Depreciation and amortization 18.9 18.0 17.6 17.8
Impairment of long-lived assets and goodwill
(
4
)
0.5 1.0 16.5 3.4
Total operating expenses 392.7 381.5 418.7 429.8
Operating income (loss) 1.8 (21.2) (58.8) 17.3
Interest income 0.5 0.3 0.5 0.6
Interest expense (13.1) (12.9) (13.2) (15.3)
Other loss -- -- (0.6) --
(Loss) income from continuing operations before
income taxes
(10.8)
(33.8)
(72.1)
2.6
Income tax (benefit) expense
(
5
)
(2.8) (12.8) (25.0) 65.9
Loss from continuing operations (8.0) (21.0) (47.1) (63.3)
Discontinued operations, net of income taxes -- -- -- --
Net loss $ (8.0) $ (21.0) $ (47.1) $ (63.3)
Basic and diluted net loss per share:
Loss per share from continuing operations $ (0.08) $ (0.21) $ (0.47) $ (0.63)
Loss per share from discontinued operations -- -- -- --
Net loss per share $ (0.08) $ (0.21) $ (0.47) $ (0.63)
Shares used in computing net loss
per share:
Basic and diluted 99.8 100.1 100.1 100.2
Comprehensive loss $ (2.4) $ (23.9) $ (44.6) $ (64.1)
(1) The third quarter includes $3.0 million of franchise fee revenue related to the opening of our first franchised stores in Southeast Asia.
(2) The third quarter includes severance costs of $8.5 million related to the departure of our CEO and headcount reductions.
(3) The fourth quarter includes an adjustment to reduce occupancy expense by $1.4 million.
(4) The third quarter includes a long-lived assets impairment charge of $11.7 million for our Target Mobile centers and a goodwill impairment charge of $3.0
million for our U.S. RadioShack company-operated stores reporting unit.
(5) The fourth quarter includes an increase to income tax expense of $66.7 million related to a valuation allowance with respect to our U.S. federal deferred tax
assets and our remaining state deferred tax assets.