Fort Worth, Texas-based RadioShack Corporation (NYSE: RSH) is the nation’s most trusted consumer electronics specialty retailer of wireless communications, electronic parts, batteries and accessories as well as other digital technology products and services. With more than 7,200 stores nationwide, it is estimated that 94 percent of all Americans live or work within five minutes of a RadioShack store or dealer. The company’s knowledgeable sales associates and brand position, “You’ve Got Questions, We’ve Got Answers®,” support RadioShack’s mission to demystify technology in every neighborhood in America. For more information on the company, visit the RadioShack Corporation 

Fort Worth, Texas – February 27, 2007 – RadioShack Corporation (NYSE: RSH) today announced a 65% increase in reported net income to $84.5 million, or $0.62 per diluted share, for the quarter ended December 31, 2006. Net income for the quarter ended December 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% 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.
"Our team put forth a tremendous effort executing our plan during the fourth quarter. We have made great progress in some areas, while other areas such as the wireless business remain a challenge. We have strengthened our balance sheet and cash position while enhancing profitability of the company. This gives us greater flexibility as we develop our longer-term strategy,” said Julian Day, chairman and chief executive officer. “I look forward to 2007, as we continue our focus on improving our core operations in all facets of our company.”
Fourth Quarter Results
Revenue
Fourth quarter 2006 comparable store sales were down 7.7% versus the fourth quarter of 2005. An income statement reclassification relating to the sale of prepaid wireless airtime, due primarily to contract changes, negatively impacted comparable store sales by approximately 220 basis points but did not impact operating profit. Adjusted comparable store sales, excluding the impact of the reclassification, decreased by 5.5%. The decline in comparable sales was mainly driven by lower sales in postpaid wireless and personal electronics, partially offset by increases in pre-paid wireless sales, MP3 players and accessories.
Total sales in the fourth quarter of 2006 were down $214 million to $1.458 billion versus total sales of $1.672 billion for the same period last year, driven by the impact of closed stores and the decline in comparable store sales. RadioShack had 4,467 U.S. company-operated stores at the end of the fourth quarter of 2006, down 505 from the previous year.
Operating Income
Fourth quarter 2006 operating income was $145.8 million as compared to $82.4 million in the prior year. This increase was driven by lower operating expenses, which was partially offset by fewer gross profit dollars. The decline in gross profit dollars versus the prior year was due to the impact of closed stores and comparable store sales decreases. Nevertheless, the company’s gross margin for the fourth quarter increased 450 basis points to 45.6%. This favorability in gross margin versus prior year was driven by improved inventory management, reduced promotional markdowns and the change in income statement geography of prepaid wireless airtime, partially offset by an unfavorable merchandise mix.
SG&A expenses were $482.8 million in the fourth quarter of 2006, down $89.5 million versus the prior year. The decrease in SG&A was driven by payroll, both from headcount reductions at headquarters and efficiencies in labor scheduling at store level, impact of store closings and reduced advertising expense.
Full-Year Sales and Net Income
Full year 2006 comparable store sales were down 5.6% versus calendar year 2005. An income statement reclassification relating to the sale of prepaid wireless airtime, described above, negatively impacted comparable store sales by approximately 280 basis points but did not impact operating profit. Adjusted comparable store sales, excluding the impact of the reclassification, decreased by 2.8%.
Total sales for 2006 were down $304 million to $4.778 billion versus total sales of $5.082 billion for the same period last year. The 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 December 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.
Financial Position at Year End and Full-Year Cash Flow
The company ended the year with a reduction in accounts receivable and inventory when compared to prior year. These improvements were a result of increased focus on working capital and to a lesser extent, the impact of a reduction in the wireless business.
Net property, plant and equipment was less than last year due to the impact of closing stores mid-year and the removal of their corresponding fixed asset balances.
The company’s total debt remained consistent with 2005, although at December 31, 2006, $150 million was reclassified from long-term debt to short-term debt due to the upcoming maturity of notes issued in 1997.
RadioShack generated $189.9 million in free cash flow1 through the twelve months of 2006 versus free cash flow of $158.5 million for the same period in 2005. Compared to 2005, the increased cash generated in 2006 was driven by improved inventory and accounts receivable management, combined with more prudent capital expenditures, partially offset by lower net income.
2007 Outlook 
“We are pleased with the progress made during the fourth quarter, as we improved profitability and strengthened our balance sheet,” stated Jim Gooch, chief financial officer. “We expect these improvements to drive increased profitability for 2007, and we therefore anticipate fully diluted earnings per share will be in the range of $1.00 to $1.20.”
 

RadioShack Corporation Announces 2006 Third Quarter Financial Results 
Fort Worth, Texas, October 25, 2006 – RadioShack Corporation (NYSE: RSH) today announced a net loss of $16 million or $0.12 per diluted share for the quarter ended September 30, 2006 versus net income of $108.5 million or $0.75 per diluted share for the quarter ended September 30, 2005. Third quarter 2005 net income was favorably impacted by a non-cash gain of $56.5 million or $0.39 per diluted share due to the reversal of a tax contingency reserve. Third quarter 2006 pre-tax earnings were adversely affected by the non-cash write-down of $29 million of assets associated with RadioShack’s wireless kiosk operations; $18 million in costs associated with the company’s turnaround plan; and lower wireless sales. RadioShack’s cash position increased $229 million at the end of the third quarter of 2006 to $276 million versus $47 million at the end of the third quarter of 2005. The cash position was driven by improved working capital management. 
"Though too early in the management transition to see fundamental change in business trends, RadioShack made some important achievements in Q3 towards improving its operations,” said Julian Day, chairman and chief executive officer. “During the quarter, we streamlined costs; better aligned people and roles; and strengthened our balance sheet.”