Financial: Tandy Corporation Announces Its Ongoing Business Earnings Per Share Increased 15% in the Third Quarter of 1998 - Company Financial Information

Edge: Work-Group Computing Report, Oct 26, 1998

FORT WORTH, Texas, Oct. 21 /PRNewswire/ -- Tandy Corporation (NYSE: TAN -news) today announced earnings of $48.4 million or $0.45 per share for the quarter ended September 30, 1998 compared to earnings of $44.5 million or $0.39 per share in the prior year quarter for comparable ongoing operations. Computer City related provisions and operating losses for the quarter totaled $52.5 million which reduces the 1998 results to a net loss of $4.1 million or $0.06 per share. The operating results of the divested retail groups reduced net income to $36.4 million or $0.32 per diluted share for the quarter ended September 30, 1997.

"The RadioShack group increased operating income 18% this quarter over the prior year and expanded operating margins from 10.5% of sales last year to 11.2 % of sales this year which further demonstrates the strength of our strategies. Our Christmas plans are being finalized and management is optimistic that the fourth quarter will come in as planned," stated RadioShack President and Tandy Corporation CEO-elect Len Roberts.

For the nine months ended September 30, 1998, Tandy earned $139.1 million or $1.28 per share compared to earnings of $118.1 million or $1.02 per share for the same prior year period for comparable ongoing operations. Computer City related provisions and operating losses during the current nine month period totaled $126.2 million, reducing net income to $12.9 million or $0.08 per diluted share. The operating results of the divested retail groups reduced net income to $90.7 million or $0.77 per diluted share for the nine months ended September 30, 1997.

"While the downturn in the financial market has currently affected Tandy's share valuation, I feel Len and the management group have the strategies and marketing plans to achieve further growth and enhance shareholder value not only next quarter, but next year and beyond," stated Chairman of the Board and CEO John V. Roach.

The table below approximates Tandy's adjusted results of operations excluding the divested retail groups for the periods indicated.

   Three Months Ended September 30  Nine Months Ended September 30
                1998    1997  % Inc.       1998       1997  % Inc.
(In millions, except per share amounts)
Sales           $843    $760     11%     $2,383     $2,147    11%
Gross Margin     438     405              1,258     1,165
Selling, General &
 Administrative
  Costs          329     305                943       894
Depreciation/
 Amortization     21      19                 61        56
Operating Income  88      81      9%        254       215     18%
Adjusted Net
 Income           48      44      9%        139       118     18%
Adjusted Earnings
 Per Share      0.45    0.39     15%       1.28      1.02     25%
Assumed Average
 Shares          106     111                106       114
* TANDY CORPORATION AND SUBSIDIARIES
* Consolidated Statements of Income (Unaudited)
* (In millions, except per share amounts)
                        Three Months Ended     Nine Months Ended
                                 Sept. 30,             Sept. 30,
                           1998        1997        1998      1997
 Net sales and
  operating revenues   $1,128.6    $1,227.5    $3,579.7  $3,665.2
 Cost of products sold    676.3       759.5     2,187.4   2,300.0
 Gross profit             452.3       468.0     1,392.3   1,365.2
Expenses/(income):
 Selling, general and
  administrative          394.9       376.4     1,162.9   1,123.8
 Depreciation and
  amortization             25.0        24.2        77.3      71.4
 Interest income           (2.5)       (3.5)       (5.7)    (8.4)
 Interest expense          11.5        11.8        33.6      31.0
 Provision for loss on
  sale of Computer City    30.0         ---       103.2       ---
                          458.9       408.9     1,371.3   1,217.8
Income/(loss) before
 income taxes              (6.6)       59.1        21.0     147.4
Provision/(benefit) for
 income taxes              (2.5)       22.7         8.1      56.7
Net income/(loss)          (4.1)       36.4        12.9      90.7
Preferred dividends         1.5         1.5         4.4       4.6
Net income/(loss) available
 to common shareholders   $(5.6)      $34.9        $8.5     $86.1
Net income/(loss) per average
 common share(A):
  Basic                  $(0.06)      $0.33       $0.08     $0.79
  Diluted                $(0.06)      $0.32       $0.08      0.77
Shares used in computing
 earnings per common share(A):
  Basic                   100.3       105.7       101.0     108.6
  Diluted                 100.3       110.8       102.9     113.5
Dividends declared per
 common share(A)          $0.10       $0.10       $0.30     $0.30
(A) Prior periods have been adjusted to reflect adoption of FAS
 No. 128 "Earnings per Share" and the two-for-one stock split,
 which was distributed on September 22, 1997.
TANDY CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
                            Sept. 30,    December 31,     Sept.30
                               1998           1997           1997
Cash and cash equivalents     $47.4          $105.9         $64.0
Accounts receivable, net      166.5           251.3         262.9
Inventories                   974.9         1,205.2       1,279.7
Other current assets          129.5           153.1         106.0
  Total current assets      1,318.3         1,715.5       1,712.6
Property, plant and equipment,
 at cost, less accumulated
 depreciation                 435.5           521.9         550.0
Other assets, net of accumulated
 amortization                 213.7            80.1         141.5
  Total assets             $1,967.5        $2,317.5      $2,404.1
Short-term debt              $289.0          $299.5        $447.1
Accounts payable              227.6           325.2         365.9
Accrued expenses              236.3           273.1         235.5
Income taxes payable            2.9            78.6          52.6
  Total current liabilities   755.8           976.4       1,101.1
Long-term debt and
 capital leases               241.2           236.1         235.7
Other non-current
 liabilities                   52.3            46.4          20.2
Total stockholders' equity    918.2         1,058.6       1,047.1
  Total liabilities and
stockholders' equity       $1,967.5        $2,317.5      $2,404.1