Radioshack Corp – ‘10-Q’ for 3/31/95

As of:  Friday, 5/12/95   ·   For:  3/31/95   ·   Accession #:  96289-95-13   ·   File #:  1-05571

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Quarterly Report   —   Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                      24±   115K 
 2: EX-27       Financial Data Schedule (Pre-XBRL)                     1      7K 

10-Q   —   Quarterly Report
Document Table of Contents

10-Q
1st “Page” of 11
TOC
↑Top
Previous
Next
↓Bottom
Just 1st
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION                  
Washington, D.C. 20549                  

FORM 10-Q                 

X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE            
--- SECURITIES EXCHANGE ACT OF 1934                                     

For the quarterly period ended March 31, 1995                   

OR                  

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE        
--- SECURITIES EXCHANGE ACT OF 1934                                     

For the transition period from ____  to ____                    

Commission File No. 1-5571                  

TANDY CORPORATION                 
(Exact name of registrant as specified in its charter)                  

Delaware                         75-1047710       
(State or other jurisdiction of          (I.R.S. Employer               
incorporation or organization)           Identification No.)          

1800 One Tandy Center, Fort Worth, Texas        76102                   
(Address of principal executive offices)      (Zip Code)                

Registrant's telephone number, including area code:                     
(817) 390-3700                                                          

N/A                 
(Former name, former address and former fiscal year,                  
if changed since last report.)                  

Indicate by check mark whether the registrant (1) has filed             
all reports required to be filed by Section 13 or 15(d) of              
the Securities Exchange Act of 1934 during the preceding 12             
months (or for such shorter period that the registrant was              
required to file such reports), and (2) has been subject to             
such filing requirements for the past 90 days.  Yes X   No              
                                        ---    ---

The number of shares outstanding of the issuer's Common                 
Stock, $1 par value, on April 30, 1995 was 65,850,236.                  

Index to Exhibits is on Sequential Page No. 14.                 
Total pages 19.                 

10-Q
2nd “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 2nd
PART I - FINANCIAL INFORMATION                  

ITEM 1.  FINANCIAL STATEMENTS                                           
    
                                                        [Enlarge/Download Table]
                                                                                                  
                                      TANDY CORPORATION AND SUBSIDIARIES                          
                                 Consolidated Statements of Income (Unaudited)                    
<CAPTIONS>                                                                                        
                                                                           Three Months Ended     
                                                                                March 31,         
                                                                       -------------------------- 
(In thousands, except per share amounts)                                   1995           1994    
                                                                       -----------    ----------- 
                                                                                                  
Net sales and operating revenues                                       $ 1,226,622    $   992,135 
Cost of products sold                                                      780,043        584,781 
                                                                       -----------    ----------- 
Gross profit                                                               446,579        407,354 
                                                                       -----------    ----------- 
Expenses:                                                                                         
  Selling, general and administrative                                      373,710        331,920 
  Depreciation and amortization                                             22,302         20,744 
  Interest income                                                          (23,402)       (22,987)
  Interest expense                                                          10,660          9,993 
                                                                       -----------    ----------- 
                                                                           383,270        339,670 
                                                                       -----------    ----------- 

Income before income taxes                                                  63,309         67,684 

Provision for income taxes                                                  24,374         25,889 
                                                                       -----------    ----------- 
Net income                                                                  38,935         41,795 

Preferred dividends                                                          1,667          1,806 
                                                                       -----------    ----------- 
Net income available to common shareholders                            $    37,268    $    39,989 
                                                                       ===========    =========== 

Net income available per average common and common equivalent share    $      0.55    $      0.53 
                                                                       ===========    =========== 

Average common and common equivalent shares outstanding                     68,174         75,802 
                                                                       ===========    =========== 

Dividends declared per common share                                    $      0.18    $      0.15 
                                                                       ===========    =========== 

The accompanying notes are an integral part of these financial statements.                        

                                                                            
10-Q
3rd “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 3rd
                                                            [Enlarge/Download Table]
                                                                                                               
                                      TANDY CORPORATION AND SUBSIDIARIES                                       
                                    Consolidated Balance Sheets (Unaudited)                                    

<CAPTIONS>                                                                                                     
                                                                        March 31,     Dec.  31,     March 31,  
(In thousands)                                                            1995          1994          1994     
                                                                       -----------   -----------   ----------- 
                                                                                                               
Assets                                                                                                         
Current assets:                                                                                                
  Cash and short-term investments                                      $   233,718   $   205,633   $   369,710 
  Accounts and notes receivable, less                                                                          
    allowance for doubtful accounts                                        396,050       769,101       512,468 
  Inventories, at lower of cost or market                                1,324,293     1,504,324     1,171,587 
  Other current assets                                                      76,541        77,202        76,228 
                                                                       -----------   -----------   ----------- 
    Total current assets                                                 2,030,602     2,556,260     2,129,993 

Property, plant and equipment, at cost,                                                                        
  less accumulated depreciation                                            506,715       504,587       463,334 
Investment in discontinued operations                                            -             -        30,181 
Other assets, net of accumulated amortization                              171,364       182,927       191,477 
                                                                       -----------   -----------   ----------- 
                                                                       $ 2,708,681   $ 3,243,774   $ 2,814,985 
                                                                       ===========   ===========   =========== 

Liabilities and Stockholders' Equity                                                                           
Current liabilities:                                                                                           
  Short-term debt, including current maturities of long-term debt      $   239,302   $   229,135   $   132,835 
  Accounts payable                                                         349,256       582,194       217,578 
  Accrued expenses                                                         237,340       376,795       279,406 
  Income taxes payable                                                      24,851        18,026        39,606 
                                                                       -----------   -----------   ----------- 
    Total current liabilities                                              850,749     1,206,150       669,425 
                                                                       -----------   -----------   ----------- 

Long-term debt and capital leases, excluding current maturities            155,350       153,318       141,643 
Other non-current liabilities                                               19,874        34,095        48,032 
                                                                       -----------   -----------   ----------- 
Total other liabilities                                                    175,224       187,413       189,675 
                                                                       -----------   -----------   ----------- 

Stockholders' equity:                                                                                          
  Preferred stock, no par value, 1,000,000 shares authorized                                                   
    Series A junior participating, 100,000 shares authorized                                                   
      and none issued                                                            -             -             - 
    Series B convertible, 100,000 shares authorized and issued             100,000       100,000       100,000 
    Series C PERCS, 150,000 shares authorized and issued                         -       429,982       429,982 
  Common stock, $1 par value, 250,000,000 shares authorized                                                    
    with 85,645,000 shares issued                                           85,645        85,645        85,645 
  Additional paid-in-capital                                                93,638        93,357        89,340 
  Retained earnings                                                      2,198,024     2,176,971     2,051,111 
  Foreign currency translation effects                                       1,880        (1,799)        1,389 
  Common stock in treasury, at cost, 19,611,000,                                                               
    27,388,000 and 22,135,000 shares,respectively                         (735,641)     (971,611)     (732,073)
  Unearned deferred compensation related to TESOP                          (60,838)      (62,334)      (69,509)
                                                                       -----------   -----------   ----------- 
    Total stockholders' equity                                           1,682,708     1,850,211     1,955,885 

Commitments and contingent liabilities                                                                         
                                                                       -----------   -----------   ----------- 
                                                                       $ 2,708,681   $ 3,243,774   $ 2,814,985 
                                                                       ===========   ===========   =========== 

The accompanying notes are an integral part of these financial statements.                                     

                                                                            
10-Q
4th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 4th
                                                            [Enlarge/Download Table]
                                                                                                  

                                      TANDY CORPORATION AND SUBSIDIARIES                          
                               Consolidated Statements of Cash Flows (Unaudited)                  

<CAPTIONS>                                                                                        

                                                                           Three Months Ended     
                                                                               March 31,          
                                                                       -------------------------- 
(In thousands)                                                            1995           1994     
                                                                       -----------    ----------- 
                                                                                                  
Cash flows from operating activities:                                                             
  Net income                                                           $    38,935    $    41,795 
  Adjustments to reconcile net income to net cash                                                 
    provided by operating activities:                                                             
    Depreciation and amortization                                           22,302         20,744 
    Provision for credit losses and bad debts                               11,466          5,192 
    Other items                                                                703            379 

 Changes in operating assets and liabilities:                                                     
  Sale of credit card portfolios                                           342,822              - 
  Receivables                                                               18,327        106,646 
  Inventories                                                              167,925        104,714 
  Other current assets                                                         661         12,230 
  Accounts payable, accrued expenses and income taxes                     (335,275)      (115,739)
                                                                       -----------    ----------- 
  Net cash provided by operating activities                                267,866        175,961 
                                                                       -----------    ----------- 

Investing activities:                                                                             
  Additions to property, plant and equipment                               (43,336)       (21,904)
  Proceeds from sale of property, plant and equipment                        2,326            681 
  Proceeds from sale of divested operations                                      -        351,250 
  Other investing activities                                                   170            198 
                                                                       -----------    ----------- 
 Net cash provided (used) by investing activities                          (40,840)       330,225 
                                                                       -----------    ----------- 
Financing activities:                                                                             
  Purchase of treasury stock                                              (212,078)       (33,791)
  Sale of treasury stock to employee stock purchase program                 15,863         13,978 
  Proceeds from exercise of stock options                                    9,623          1,751 
  Dividends paid, net of taxes                                             (24,507)       (17,618)
  Changes in short-term borrowings, net                                     61,463       (272,524)
  Additions to long-term borrowings                                          1,706              - 
  Repayments of long-term borrowings                                       (51,011)       (41,507)
                                                                       -----------    ----------- 
  Net cash used by financing activities                                   (198,941)      (349,711)
                                                                       -----------    ----------- 

Increase in cash and short-term investments                                 28,085        156,475 
Cash and short-term investments, beginning of period                       205,633        213,235 
                                                                       -----------    ----------- 
Cash and short-term investments, end of period                         $   233,718    $   369,710 
                                                                       ===========    =========== 

The accompanying notes are an integral part of these financial statements.                        
                                                                            
10-Q
5th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 5th
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                  

NOTE 1-BASIS OF FINANCIAL STATEMENTS                                    

The accompanying unaudited consolidated financial statements            
have been prepared in accordance with the instructions to               
Form 10-Q and do not include all of the information and                 
footnotes required by generally accepted accounting                     
principles for complete financial statements.  In the opinion           
of management, all adjustments (consisting of normal                    
recurring accruals) considered necessary for a fair                     
presentation have been included.  Operating results for the             
three months ended March 31, 1995 are not necessarily                   
indicative of the results that may be expected for the year             
ending December 31, 1995.  For further information, refer to            
the consolidated financial statements and management's                  
discussion and analysis of results of operations and                    
financial condition included in Tandy Corporation's ("Tandy"            
or the "Company") Form 10-K for the year ended December 31,             
1994.                                                                   

NOTE 2-RELATIONS WITH INTERTAN                                          

As of March 31, 1995 InterTAN Inc. ("InterTAN") owed Tandy an           
aggregate of $35,994,000, net of discount.  The current                 
portion of the obligation approximates $7,135,000 and the               
non-current portion approximates $28,859,000.  In the first             
quarter of 1995, Tandy recognized $1,097,000 in accretion of            
discount on the note receivable from InterTAN which resulted            
from the purchase of the bank debt at a discounted price.               
Tandy recognized sales to and commission income from InterTAN           
of approximately $2,349,000 and interest income of $2,096,000           
during the quarter ended March 31, 1995.  During the quarter            
ended March 31, 1994, Tandy recognized approximately                    
$10,913,000 of sales to InterTAN and interest income of                 
$1,974,000.  Tandy recognized accretion of discount of                  
$851,000 on the note receivable during the quarter ended                
March 31, 1994.  See the Company's Annual Report on Form 10-K           
for the year ended December 31, 1994 for further information.           

Through April 1995 InterTAN has met all of its payment                  
obligations to Tandy.  As a result, Tandy management believes           
that InterTAN should be able to continue to meet its payment            
obligations pursuant to its debt agreements with Tandy.                 

Canadian tax authorities are reviewing InterTAN's Canadian              
subsidiary's 1987-89 tax returns.  The Company cannot                   
determine whether the ultimate resolution of that review will           
have an effect on InterTAN's ability to meet its obligations            
to Tandy but, at present the Company believes that the                  
ultimate resolution of this review will not impair InterTAN's           
ability to meet its obligations to Tandy.                               

NOTE 3-SALE OF CREDIT OPERATIONS                                        

Effective March 30, 1995 the Company completed the sale, at             
net book value, of the Radio Shack and Tandy Name Brand                 
Retail Group ("Tandy Name Brand") (McDuff, VideoConcepts and            
The Edge in Electronics) private label credit card accounts             
and substantially all accounts receivable to Hurley State               
Bank, a subsidiary of SPS Transaction Services, Inc. ("SPS"),           
a majority-owned subsidiary of Dean Witter, Discover & Co. As           
a result of the transaction, Tandy received $342,822,000 in             
cash and a deferred payment amount of $49,444,000.  The                 
deferred payment does not bear interest.  Principal will be             
paid monthly.  The Company has discounted the deferred                  
payment by $773,000 to yield approximately 5% over the eleven           
month payout period.  The discounted deferred payment amount            
of $48,671,000 is classified as a current receivable in the             
accompanying Consolidated Balance Sheet at March 31, 1995.              

As part of the completed sales transaction, Tandy Credit                
Corporation ("Tandy Credit") was merged into Hurley                     
Receivables Corporation ("HRC"), a wholly-owned subsidiary of           
SPS, and no longer exists.  The merger was necessary in order           
to transfer an asset securitization program and approximately           
$230,000,000 in customer receivables which backed the                   
program.  HRC assumed the ongoing obligations of the Company            
and its affiliates under the asset securitization program. On           
March 31, 1995, Tandy Credit filed Post Effective Amendment             
No. 2 to its Registration Statement on Form S-3 regarding the           
termination of the registration of all remaining unsold                 
medium term notes.  The termination was declared effective as           
of April 5, 1995.  On March 31, 1995, Tandy Credit also filed           
Form 15 to de-register Tandy Credit's common stock and                  
terminate its reporting obligations under Section 12g-4(a)              
(1) (i) of the Securities Exchange Act of 1934.                         

NOTE 4-RESTRUCTURING CHARGES                                            

In December 1994, the Company adopted a business                        
restructuring plan to close or convert 233 of the 306 Tandy             
Name Brand stores.  Closed stores included 151 VideoConcepts,           
30 McDuff mall stores and 19 McDuff Supercenters.                       
Approximately 33 other mall stores or McDuff Supercenters               
will be converted to Radio Shack or Computer City Express(SM)           
stores sometime in 1995.  At March 31, 1995 all 233 stores              
had been closed.  Approximately 57 McDuff Supercenters and 16           
The Edge in Electronics stores remain open and as of January            
1, 1995 became part of the Specialty Retail Group of Radio              
Shack.  A pre-tax charge of $89,071,000 taken in the fourth             
quarter of fiscal 1994 related to the closing and conversion            
of these stores.  The components of the restructuring charge            
and an analysis of the amounts charged against the reserve              
are outlined in the following table:                                    

                                                            [Enlarge/Download Table]
                                                                                                       
<CAPTIONS>                                                                                             
                                                        Charges                   Charges              
                                            Original    Through      Balance      1/1/95-      Balance 
(In thousands)                              Reserve     12/31/94     12/31/94     3/31/95      3/31/95 
-----------------------------------------  ----------  ----------   ----------  ----------   ----------
                                                                                                       
Lease obligations                          $   46,682  $   (1,466)  $   45,216  $  (12,001)  $   33,215
Impairment of fixed assets                     17,991           -       17,991     (17,991)           -
Inventory impairment                           16,600           -       16,600     (13,326)       3,274
Goodwill impairment                             4,222      (4,222)           -           -            -
Termination benefits                            1,218           -        1,218      (1,218)           -
Other                                           2,358           -        2,358        (810)       1,548
                                           ----------  ----------   ----------  ----------   ----------
Total                                      $   89,071  $   (5,688)  $   83,383  $  (45,346)  $   38,037
                                           ==========  ==========   ==========  ==========   ==========

                                                                            
Sales and operating revenues associated with the closing of             
233 Tandy Name Brand stores were approximately $28,350,000              
and $65,926,000 for the quarters ended March 31, 1995 and               
1994, respectively.  In conjunction with this restructuring,            
Tandy terminated 1,425 employees most of whom were store                
employees and managers.                                                 

NOTE 5-SHARE REPURCHASE PROGRAM                                         

On August 1, 1994, the Company announced that its Board of              
Directors authorized management to purchase up to 7,500,000             
shares of its common stock in addition to shares required for           
employee plans.  On December 30, 1994, the Board of Directors           
authorized management to increase the share repurchase                  
program to 12,500,000 shares.  Future purchases will be made            
from time to time in the open market, and it is expected that           
funding for the remainder of the program will come from                 
existing cash, short-term debt and proceeds from the sale of            
the credit card portfolios. At March 31, 1995, approximately            
8,800,000 shares had been repurchased under this program.               

NOTE 6-RETIREMENT OF DEBT                                               

In January 1995, the $45,000,000 of 8.69% senior notes which            
were outstanding at December 31, 1994 were paid in full.                
These senior notes had been outstanding since February 7,               
1990.  In February 1995, the $6,000,000 of Tandy Credit's               
medium-term notes which were outstanding at December 31, 1994           
and were to mature in May and August of 1995 were paid in               
full.                                                                   

NOTE 7-CONTINGENCY                                                      

The IRS Dallas field office is reviewing the Company's                  
1987-1989 tax returns and has referred certain issues to the            
IRS National office.  The resolution of this matter could               
result in additional taxes and interest to the Company                  
related to the spin-off of InterTAN and raises questions                
about the private letter rulings issued by the IRS regarding            
the spin-off and certain other tax matters.  Although                   
aggregate additional taxes involved in these transactions               
could potentially range from $0 to $27 million, based on the            
advice of the Company's independent tax advisors, the Company           
believes it would prevail if any tax litigation had to be               
instituted.  Any ultimate tax assessment would also involve             
interest.  In any event, the Company believes the ultimate              
resolution would have no material impact on the Company's               
financial condition.                                                    

The Company is a defendant in a consolidated action titled              
O'Sullivan Industries Holdings, Inc. Securities Litigation,             
----------------------------------------------------------              
which was commenced in 1994 and is currently pending before             
the United States District Court for the Western District of            
Missouri.  The plaintiffs seek damages in an unspecified                
amount alleging that O'Sullivan's initial public offering               
prospectus, certain press releases and other materials                  
contained material misrepresentations and omissions.  They              
have also named O'Sullivan, O'Sullivan's officers and                   
directors, and the underwriters as defendants.  Tandy                   
believes that the lawsuit is totally without merit and is               
defending itself vigorously.  It further believes that even             
though an adverse resolution of the litigation might have a             
negative impact on its results of operation in the year of              
resolution, resolution will not have a material adverse                 
effect on its financial condition or liquidity.                         

NOTE 8-HEDGING AND DERIVATIVE ACTIVITY                                  

The Company enters into interest rate swap agreements to                
manage its interest rate exposure by effectively trading                
floating interest rates for fixed interest rates.  As the               
Company has used the swaps to hedge certain obligations with            
floating rates, the difference between the floating and fixed           
interest rate amounts, based on these swap agreements, is               
recorded as income or expense.  Through March 31, 1995, the             
Company has entered into five swaps with regard to notional             
amounts totaling $90,000,000.  The swap agreements all expire           
during the third quarter of 1999.  Prior to 1995 the Company            
was not a party to any interest rate swaps.  The Board of               
Directors has authorized management to enter into interest              
rate swaps up to notional amounts not exceeding $250,000,000.           
At March 31, 1995, the Company would have to pay                        
approximately $2,100,000 to terminate the interest rate swaps           
in place.  This amount was obtained from the counterparties             
and represents the fair value of the swap agreements; the               
amount is not recognized in the consolidated financial                  
statements.  The Company has no intention of terminating the            
interest rate swap agreements at this time.  At March 31,               
1995, the weighted average interest rate of the floating rate           
obligations being hedged was 6.99%, and the weighted average            
interest rate of the fixed rate obligations imposed by the              
swap agreements was 7.70%.  The interest rate swap agreements           
have been entered into with major financial institutions                
which are expected to fully perform under the terms of the              
swap agreements.                                                        

NOTE 9-PERCS CONVERSION                                                 

Tandy announced on January 23, 1995 that it had exercised its           
right to call all the issued and outstanding Preferred Equity           
Redemption Convertible Stock ("PERCS") for conversion on                
March 10, 1995, prior to its mandatory conversion date of               
April 15, 1995.  For each PERCS depositary share redeemed,              
0.787757 Tandy common shares were issued for an aggregate of            
approximately 11,816,000 shares.  In addition, each PERCS               
depositary share received a dividend in cash of $0.321                  
representing the accrued dividend from January 16, 1995                 
through the redemption date of March 10, 1995.                          

10-Q
6th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 6th
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF             
OPERATIONS AND FINANCIAL CONDITION                    

Net Sales and Operating Revenues                                        

Net sales and operating revenues for the three months ended             
March 31 were:                                                          

                                                                    [Download Table]
                                                                          
<CAPTIONS>                                                                
                                                               % Increase 
(In thousands)                       1995           1994        (Decrease)
-------------------------         -----------    -----------    ----------
                                                                          
Radio Shack                       $   663,069    $   637,640       4.0 %  
Tandy Name Brand (closed)              28,350         65,926     (57.0)   
Incredible Universe                   133,753         50,993     162.3    
Computer City                         378,563        211,787      78.8    
                                  -----------    -----------              
                                    1,203,735        966,346      24.6    
Import/Export and Other Sales          22,887         25,789     (11.3)   
                                  -----------    -----------              
                                  $ 1,226,622    $   992,135      23.6 %  
                                  ===========    ===========              
                                                                            
U.S. and Canada continuing retail operations had a 31.0%                
sales gain for the quarter ended March 31, 1995.                        
Consolidated sales and operating revenues for the quarter               
were up 23.6% to $1,226,622,000.  Tandy's overall comparable            
store sales gains approximated 6.6% for the quarter.                    
Incredible Universe was a key contributor to the sales growth           
with 162.4% sales growth and 16.1% same store gains.  Since             
March 31, 1994, Incredible Universe added five stores and               
plans an additional eight stores for 1995.  Computer sales              
during the quarter were strong at Incredible Universe.  Sales           
of big screen televisions and home theater products were also           
strong, offset slightly by appliance sales which were down              
but in line with industry trends.  Computer City was also a             
major contributor to Tandy's sales growth with an overall               
increase of 78.8% and comparable store sales gains of 12.7%.            
Thirty-one stores have been added to the Computer City chain            
since March 31, 1994, including four which were added in the            
quarter ended March 31, 1995.  It is anticipated that                   
Computer City will add four to five new stores in the second            
quarter of 1995 and by the end of 1995 Computer City plans to           
have approximately 100 stores.  Sales of Pentium(R)                     
processor-based computers and multimedia products were strong           
at Computer City.  Radio Shack's sales reflected an increase            
in sales of core electronic products which was partially                
offset by a decline in computer sales.  Non-computer sales at           
Radio Shack were up 9.0% for the quarter.  As of January 1,             
1995, Radio Shack sales include the sales for Tandy Name                
Brand Retail Group ("Tandy Name Brand") stores which were not           
closed and are now included in the Specialty Retail Group of            
Radio Shack.  Radio Shack comparable store sales gains for              
the quarter were 3.9%.  Commencing in March 1994, InterTAN              
Inc. ("InterTAN") purchases from third parties through A&A              
International were no longer recorded as sales, but instead             
A&A International recognized commission income on such                  
purchases; therefore, sales by A&A International as reported            
in the Import/Export group have decreased approximately                 
$9,288,000 for the quarter but earned income relating thereto           
was not materially different.  Increases in repair and other            
income from support operations have partially offset this               
decrease.                                                               

Gross Profit                                                            

Gross profit as a percent of net sales was 36.4% during the             
three months ended March 31, 1995 as compared to 41.1% during           
the corresponding 1994 period.  This trend toward lower gross           
margins is expected to continue as additional sales are made            
by Computer City(R) and Incredible Universe(R) stores which             
operate on lower margins.  In the first quarter of 1995,                
Computer City and Incredible Universe accounted for                     
approximately 41.8% of consolidated sales compared to 26.5%             
in the first quarter of 1994.  This mix of business shift               
continues to be partially offset by increasing margins at               
Radio Shack resulting from the increased emphasis on sales of           
core categories, although the offset was less than seen in              
1994.                                                                   

Selling, General and Administrative Expenses                            

Selling, general and administrative ("SG&A") expenses as a              
percent of sales and operating revenues declined 3.0                    
percentage points in comparison with the first quarter of               
1994.  Most expense categories, including rent, payroll and             
utilities, were lower as a percent of sales during the three            
months ended March 31, 1995 as compared with the same prior             
period results.  The lower rent and payroll costs as a                  
percent of sales reflects the lower relative costs associated           
with the Company's newer retail formats.  As a result of                
Computer City and Incredible Universe expansion into new                
markets and Radio Shack's new promotional programs such as              
The Repair Shop at Radio Shack(R) service, consolidated                 
advertising costs increased $8,751,000 or 23.3% this quarter            
in comparison with the prior year period.  The Company                  
expects SG&A expenses as a percent of sales to continue to              
decrease as Computer City and Incredible Universe, which                
operate at lower costs than consolidated Tandy Corporation,             
become more significant portions of the Company's total                 
business.                                                               

Sale of Credit Operations                                               

In a transaction completed on March 30, 1995, the Company               
sold the Radio Shack and Tandy Name Brand (McDuff,                      
VideoConcepts and The Edge in Electronics) private label                
credit card accounts and substantially all accounts                     
receivable to Hurley State Bank, a subsidiary of SPS                    
Transaction Services, Inc., a majority-owned subsidiary of              
Dean Witter, Discover & Co., resulting in no material gain or           
loss.  The transaction should impact future periods as                  
follows: (1) SG&A costs incurred in processing the private              
label credit card accounts will be eliminated and (2) no                
interest income will be recorded and customer service fees              
earned on the credit card accounts will decline as the                  
Company's remaining consumer credit balances decrease during            
1995 and 1996.                                                          

Restructuring Charges                                                   

Sales and operating revenues associated with the closing of             
233 Tandy Name Brand stores were approximately $28,350,000              
and $65,926,000 for the quarters ended March 31, 1995 and               
1994, respectively.  In conjunction with this restructuring,            
Tandy terminated 1,425 employees most of whom were store                
employees and managers.                                                 

Provision for Income Taxes                                              

Provision for income taxes for each quarterly period is based           
on the estimate of the annual effective tax rate for the                
fiscal year as evaluated at the end of each quarter.  The               
effective tax rates for the first quarters of 1995 and 1994             
were 38.5% and 38.25%, respectively.  The increase reflects             
shifts of income into states with higher income tax rates               
such as California, New York and Ohio.                                  

The IRS Dallas field office is reviewing the Company's                  
1987-1989 tax returns and has referred certain issues to the            
IRS National office.  The resolution of this matter could               
result in additional taxes and interest to the Company                  
related to the spin-off of InterTAN and raises questions                
about the private letter rulings issued by the IRS regarding            
the spin-off and certain other tax matters.  Although                   
aggregate additional taxes involved in these transactions               
could potentially range from $0 to $27 million, based on the            
advice of the Company's independent tax advisors, the Company           
believes it would prevail if any tax litigation had to be               
instituted.  Any ultimate tax assessment would also involve             
interest.  In any event, the Company believes the ultimate              
resolution would have no material impact on the Company's               
financial condition.                                                    

Earnings Per Share                                                      

Net income per average common and common equivalent share is            
computed by dividing net income less the Series B convertible           
stock dividends by the weighted average common and common               
equivalent shares outstanding during the period.  As the                
Preferred Equity Redemption Convertible Stock ("PERCS")                 
mandatorily convert into common stock, they are considered              
outstanding common stock and the dividends are not deducted             
from net income for purposes of calculating net income per              
average common and common equivalent share.  Current quarter            
weighted average share calculations include approximately               
11,816,000 common shares relating to the conversion of the              
PERCS into common shares on March 10, 1995.  Per share                  
amounts and the weighted average number of shares outstanding           
for the quarter ended March 31, 1994 also reflect the PERCS             
conversion into approximately 11,816,000 common shares.                 
Fully diluted earnings available per common and common                  
equivalent share are not presented since dilution is less               
than 3%.                                                                

Cash Flow and Financial Condition                                       

Cash flow from operating activities increased in the                    
three-month period ended March 31, 1995 as compared with the            
same period of the prior year.  This increase relates                   
primarily to the sale of the credit card portfolios and the             
reduction of inventories partially offset by a net decrease             
in accounts payable, accrued expenses and income taxes.                 

Cash used by investing activities for the three-month period            
ended March 31, 1995 includes property, plant and equipment             
additions related to additional fixtures required for the               
Radio Shack Gift Express program, new Radio Shack stores and            
the Company's expansion of its Computer City and Incredible             
Universe store formats.  Management anticipates that capital            
expenditure requirements will approximate $160,000,000 for              
the remainder of 1995, primarily to support the Computer City           
and Incredible Universe store expansions.  Cash used for                
financing activities for the three-month period ended March             
31, 1995, includes continued purchases of treasury stock                
under the share repurchase program.  Repayments of long-term            
borrowings includes the $45,000,000 of 8.69% senior notes and           
Tandy Credit's medium-term notes of $6,000,000.  The Company            
believes that its cash flow from operations, cash on hand and           
availability under its existing debt facilities are adequate            
to fund the planned expansion of its store formats and share            
repurchase program.  In addition, most of the Company's new             
store expenditures are being funded through operating leases.           

Cash and short-term investments at March 31, 1995 were                  
$233,718,000 as compared to $205,633,000 at December 31, 1994           
and $369,710,000 at March 31, 1994.  Total debt as a                    
percentage of total capitalization was 19.0% at March 31,               
1995, compared to 17.3% at December 31, 1994 and 12.3% at               
March 31, 1994.  Long-term debt as a percentage of total                
capitalization was 7.5% at March 31, 1995 compared to 6.9% at           
December 31, 1994 and 6.4% at March 31, 1994.  The increases            
in debt ratios results primarily from the Company's share               
repurchase program described below.                                     

On August 1, 1994, the Company announced that its Board of              
Directors authorized management to purchase up to 7,500,000             
shares of its common stock in addition to shares required for           
employee plans.  On December 30, 1994, the Board of Directors           
authorized management to increase the share repurchase                  
program to 12,500,000 shares.  Future purchases will be made            
from time to time in the open market, and it is expected that           
funding for the remainder of the program will come from                 
existing cash, short-term debt and proceeds from the sale of            
the credit card portfolios. At March 31, 1995, approximately            
8,800,000 shares had been repurchased under this program.               

Inventory                                                               

Compared to March 31, 1994, total inventories at March 31,              
1995 have increased $152,706,000 or 13.0%.  The increase in             
total inventory levels included inventory increases to                  
support new Computer City and Incredible Universe stores.               
The majority of this increase was offset by decreased                   
inventory levels at Tandy Name Brands due to the closure of             
233 stores in the quarter ended March 31, 1995.  Inventory              
levels have decreased 12.0% from the amounts at December 31,            
1994 primarily due to seasonal fluctuations and closing of              
Tandy Name Brand stores.  Inventory is primarily comprised of           
finished goods.                                                         

                                                            [Enlarge/Download Table]
                                                                                             

Changes in Stockholders' Equity                                                              

<CAPTIONS>                                                                                   
                                                                  Outstanding                
(In thousands)                                                   Common Shares     Dollars   
                                                                 -------------   ----------- 
                                                                                             
Balance at December 31, 1994                                            58,257   $ 1,850,211 
Foreign currency translation adjustments, net of deferred taxes              -         3,679 
Sale of treasury stock to employee plans                                   343        15,863 
Purchase of treasury stock                                              (4,642)     (218,605)
Exercise of stock options                                                  260         9,623 
Repurchase of preferred stock                                                -          (612)
Preferred stock dividends, net of tax                                        -        (1,084)
PERCS dividend                                                               -        (4,824)
Redemption of PERCS                                                     11,816             - 
TESOP deferred compensation earned                                           -         1,496 
Common stock dividends                                                       -       (11,974)
Net income                                                                   -        38,935 
                                                                 -------------   ----------- 
Balance at March 31, 1995                                               66,034   $ 1,682,708 
                                                                 =============   =========== 
                                                                            
InterTAN Update                                                         

As of March 31, 1995 InterTAN owed Tandy an aggregate of                
$35,994,000, net of discount.  The current portion of the               
obligation approximates $7,135,000 and the non-current                  
portion approximates $28,859,000.  In the first quarter of              
1995, Tandy recognized $1,097,000 in accretion of discount on           
the note receivable from InterTAN which resulted from the               
purchase of the bank debt at a discounted price.  Tandy                 
recognized sales to and commission income from InterTAN of              
approximately $2,349,000 and interest income of $2,096,000              
during the quarter ended March 31, 1995.  During the quarter            
ended March 31, 1994, Tandy recognized approximately                    
$10,913,000 of sales to InterTAN and interest income of                 
$1,974,000.  Tandy recognized accretion of discount of                  
$851,000 on the note receivable during the quarter ended                
March 31, 1994.  See the Company's Annual Report on Form 10-K           
for the year ended December 31, 1994 for further information.           

Through April 1995 InterTAN has met all of its payment                  
obligations to Tandy.  As a result, Tandy management believes           
that InterTAN should be able to continue to meet its payment            
obligations pursuant to its debt agreements with Tandy.                 

Canadian tax authorities are reviewing InterTAN's Canadian              
subsidiary's 1987-89 tax returns.  The Company cannot                   
determine whether the ultimate resolution of that review will           
have an effect on InterTAN's ability to meet its obligations            
to Tandy but, at present the Company believes that the                  
ultimate resolution of this review will not impair InterTAN's           
ability to meet its obligations to Tandy.                               

Pentium is a trademark of Intel Corporation.  Preferred                 
Equity Redemption Convertible Stock and PERCS are trademarks            
of Morgan Stanley & Co., Incorporated, in connection with               
their investment banking services.  All other trademarks                
identified herein are owned or used by Tandy Corporation.               

10-Q
7th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 7th
PART II - OTHER INFORMATION                 

ITEM 1.  LEGAL PROCEEDINGS.                                             

The Company is a defendant in a consolidated action titled              
O'Sullivan Industries Holdings, Inc. Securities Litigation,             
----------------------------------------------------------              
which was commenced in 1994 and is currently pending before             
the United States District Court for the Western District of            
Missouri.  The plaintiffs seek damages in an unspecified                
amount alleging that O'Sullivan's initial public offering               
prospectus, certain press releases and other materials                  
contained material misrepresentations and omissions.  They              
have also named O'Sullivan, O'Sullivan's officers and                   
directors, and the underwriters as defendants.  Tandy                   
believes that the lawsuit is totally without merit and is               
defending itself vigorously.  It further believes that even             
though an adverse resolution of the litigation might have a             
negative impact on its results of operation in the year of              
resolution, resolution will not have a material adverse                 
effect on its financial condition or liquidity.                         

Tandy has various claims, lawsuits, disputes with third                 
parties, investigations and pending actions involving                   
allegations of negligence, product defects, discrimination,             
infringement of intellectual property rights, securities                
matters, tax deficiencies, violations of permits or licenses,           
and breach of contract and other matters against the Company            
and its subsidiaries incident to the operation of its                   
business.  The liability, if any, associated with these                 
matters was not determinable at March 31, 1995.  While                  
certain of these matters involve substantial amounts, and               
although occasional adverse settlements or resolutions might            
occur and negatively impact earnings in the year of                     
settlement, it is the opinion of management that their                  
ultimate resolution will not have a materially adverse effect           
on Tandy's financial position.                                          

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.                              

a) Exhibits Required by Item 601 of Regulation S-K.   

A list of the exhibits required by Item 601 of  
Regulation S-K and filed as part of this report 
 is set forth in the Index to Exhibits on page 14,
which immediately precedes such exhibits.       

b) Reports on Form 8-K.                               

1) On December 30, 1994, the Company announced the    
sale of part of the credit card portfolios of   
 Tandy Credit Corporation, the transfer of most of
its extended service contract obligations, the  
discontinuance of all VideoConcept stores and   
most McDuff mall stores, and some McDuff        
 Supercenters stores, and an increase of its share
repurchase program to 12.5 million shares.  The 
Company also announced that Dwain H. Hughes was 
named Senior Vice President and Chief Financial 
Officer of Tandy Corporation, effective January 
1, 1995.  The Form 8-K was filed on January 6,  
1995.                                           

2) On January 18, 1995, the Company entered into      
an agreement to sell its Radio Shack and Tandy  
Name Brand Retail Group (McDuff, VideoConcepts  
 and The Edge in Electronics) private label credit
card portfolios to Hurley State Bank, a         
subsidiary of SPS Transaction Services, Inc., a 
majority-owned subsidiary of Dean Witter,       
Discover & Co., subject to regulatory approval  
and rating agency consent.  The Form 8-K was    
filed on February 2, 1995.  Pro forma financial 
information was included.                       

3) On January 21, 1995, the Company elected to        
redeem on March 10, 1995 all of the 150,000     
 shares of its Series C Conversion Preferred Stock
 (the "Preferred Stock").  The shares of Preferred
 Stock to be redeemed constitute all of the shares
of Preferred Stock currently outstanding.       
Redemption of the Preferred Stock will result in
the redemption of 15,000,000 $2.14 Depositary   
Shares, each representing 0.787757 of a share of
 Preferred Stock, on March 10, 1995.  The Form 8-K
was filed on February 1, 1995.                  

No other Form 8-K reports were filed during the quarter ended           
March 31, 1995.                                                         

10-Q
8th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 8th
SIGNATURES                  

Pursuant to the requirements of the Securities Exchange Act             
of 1934, the registrant has duly caused this report to be               
signed on its behalf by the undersigned thereunto duly                  
authorized.                                                             

                         Tandy Corporation
                          (Registrant)

Date: May 12, 1995             By /s/ Richard L.  Ramsey                
                      --------------------------
                      Richard L.  Ramsey
                     Vice President and Controller
                    (Authorized Officer)

Date: May 12, 1995                /s/ Dwain H.  Hughes                  
                      --------------------------
                    Dwain H.  Hughes
                     Senior Vice President and
                     Chief Financial Officer
                     (Principal Financial Officer)

10-Q
9th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 9th
TANDY CORPORATION                 
INDEX TO EXHIBITS                 

Exhibit                                            Sequential           
Number     Description                              Page No.            

2a         Agreement for Purchase and Sale of Assets                    
dated as of June 30, 1993 between AST             
Research, Inc., as Purchaser and Tandy            
Corporation, TE Electronics Inc., and GRiD        
Systems Corporation, as Sellers (without          
exhibits) (filed as Exhibit 2 to Tandy's          
July 13, 1993 Form 8-K filed on July 27,          
1993, Accession No. 0000096289-93-000004          
and incorporated herein by reference).            

2b         Amended and Restated Stock Exchange                          
Agreement dated February 1, 1994 by and           
among O'Sullivan Industries Holdings, Inc.,       
and TE Electronics Inc. (filed as Exhibit         
2b to Tandy's Form 10-K filed on March 30,        
1994, Accession No. 0000096289-94-000029          
and incorporated herein by reference).            

2c         U.S. Purchase Agreement dated January 26,                    
1994 by and among O'Sullivan Industries           
Holdings, Inc., TE Electronics Inc. and the       
U.S. Underwriters which included Merrill          
Lynch & Co., Wheat First Butcher & Singer,        
The Chicago Dearborn Company and Rauscher         
Pierce Refsnes, Inc. (filed as Exhibit 2c to      
Tandy's Form 10-K filed on March 30, 1994,        
Accession No. 0000096289-94-000029 and            
incorporated herein by reference).                

2d         International Purchase Agreement dated January               
26, 1994 by and among O'Sullivan Industries       
Holdings, Inc., TE Electronics Inc. and the       
U.S. Underwriters which included Merrill          
Lynch International Limited and UBS Limited       
(filed as Exhibit 2d to Tandy's Form 10-K         
filed on March 30, 1994, Accession No.            
0000096289-94-000029 and incorporated herein      
by reference).                                    

2e         Acquisition Agreement dated January 18,                      
1995 between Hurley State Bank, as purchaser      
and Tandy Credit Corporation as seller            
(without exhibits) (filed as Exhibit (c)          
to Tandy's January 18, 1995 Form 8-K filed        
on February 2, 1995, Accession No.                
0000096289-95-000008 and incorporated             
herein by reference).                             

2e(i)      Amendment No. 1 to Acquisition Agreement                     
dated January 18, 1995 between Tandy Credit       
Corporation, Tandy National Bank and Hurley       
State Bank (filed as Exhibit 2 to Tandy's         
March 30, 1995 Form 8-K filed on April 12,        
1995, Accession No. 0000096289-95-000012          
and incorporated herein by reference).            

2f         Agreement and Plan of Merger dated March 30,                 
1995 by and among, Tandy Corporation, Tandy       
Credit Corporation, Hurley State Bank and         
Hurley Receivables Corporation (filed as          
Exhibit 3 to Tandy's March 30, 1995 Form          
8-K filed on April 12, 1995, Accession No.        
0000096289-95-000012 and incorporated             
herein by reference).                             

3a(i)      Restated Certificate of Incorporation of                     
Tandy dated December 10, 1982 (filed as           
Exhibit 4A to Tandy's 1993 Form S-8 for           
the Tandy Corporation Incentive Stock Plan,       
Reg.  No. 33-51603, filed on November 12,         
1993, Accession No. 0000096289-93-000017 and      
incorporated herein by reference).                

3a(ii)     Certificate of Amendment of Certificate of                   
Incorporation of Tandy Corporation dated          
November 13, 1986 (filed as Exhibit 4A to         
Tandy's 1993 Form S-8 for the Tandy               
Corporation Incentive Stock Plan, Reg.            
No. 33-51603, filed on November 12, 1993,         
Accession No. 0000096289-93-000017 and            
incorporated herein by reference).                

3a(iii)    Certificate of Amendment of Certificate                      
of Incorporation, amending and restating          
the Certificate of Designation, Preferences       
and Rights of Series A Junior Participating       
Preferred Stock dated June 22, 1990 (filed        
as Exhibit 4A to Tandy's 1993 Form S-8 for        
the Tandy Corporation Incentive Stock Plan,       
Reg. No. 33-51603, filed on November 12,          
1993, Accession No. 0000096289-93-000017          
and incorporated herein by reference).            

3a(iv)     Certificate of Designations of Series B                      
TESOP Convertible Preferred dated June 29,        
1990 (filed as Exhibit 4A to Tandy's 1993         
Form S-8 for the Tandy Corporation Incentive      
Stock Plan, Reg. No. 33-51603, filed on           
November 12, 1993, Accession No.                  
0000096289-93-000017 and incorporated             
herein by reference).                             

3a(v)      Certificate of Designation, Series C                         
Conversion Preferred Stock dated February         
13, 1992 (filed as Exhibit 4A to Tandy's          
1993 Form S-8 for the Tandy Corporation           
Incentive Stock Plan, Reg. No. 33-51603,          
filed on November 12, 1993, Accession             
No. 0000096289-93-000017 and incorporated         
herein by reference).                             

3b         Tandy Corporation Bylaws, restated as of                     
August 4, 1993 (filed as Exhibit 4B to            
Tandy's Form S-8 for the Tandy Corporation        
Incentive Stock Plan, Reg. No. 33-51603,          
filed on November 12, 1993, Accession No.         
0000096289-93-000017 and incorporated             
herein by reference).                             

4a         Amended and restated Rights Agreement with                   
the First National Bank of Boston dated           
June 22, 1990 for Preferred Share Purchase        
Rights (filed as Exhibit 4b to Tandy's Form       
10-K filed on March 30, 1994, Accession No.       
0000096289-94-000029 and incorporated             
herein by reference).                             

4b         Revolving Credit Agreement between Tandy                     
Corporation and Texas Commerce Bank,              
individually and as Agent for sixteen other       
banks, dated as of May 27, 1994 (without          
exhibits) (filed as Exhibit 4c to Tandy's         
Form 10Q filed on August 15, 1994, Accession      
No. 0000096289-94-000039 and incorporated         
herein by reference).                             

4c         Continuing Guaranty dated as of June 18,                     
1991 by Tandy Corporation in favor of             
holders of indebtedness issued by Tandy           
Credit Corporation that is or may be              
publicly traded and is rated by at least          
one nationally recognized rating agency           
(filed as Exhibit 4e to Tandy's Form 10-K         
filed on March 30, 1994, Accession No.            
0000096289-94-000029 and incorporated             
herein by reference).                             

10a*       Salary Continuation Plan for Executive                       
Employees of Tandy Corporation and                
Subsidiaries including amendment dated            
June 14, 1984 with respect to participation       
by certain executive employees, as restated       
October 4, 1990 (filed as Exhibit 10a to          
Tandy's Form 10-K filed on March 30, 1994,        
Accession No. 0000096289-94-000029 and            
incorporated herein by reference).                

10b*       Form of Executive Pay Plan Letters (filed                    
as Exhibit 10b to Tandy's Form 10-K filed         
on March 30, 1995, Accession No.                  
0000096289-95-000010 and incorporated             
herein by reference).                             

10c*       Post Retirement Death Benefit Plan for                       
Selected Executive Employees of Tandy             
Corporation and Subsidiaries as restated          
June 10, 1991 (filed as Exhibit 10c to            
Tandy's Form 10-K filed on March 30, 1994,        
Accession No. 0000096289-94-000029 and            
incorporated herein by reference).                

10d*       Tandy Corporation Officers Deferred                          
Compensation Plan as restated July 10,            
1992 (filed as Exhibit 10d to Tandy's Form        
10-K filed on March 30, 1994, Accession No.       
0000096289-94-000029 and incorporated             
herein by reference).                             

10e*       Special Compensation Plan No. 1 for Tandy                    
Corporation Executive Officers, adopted           
in 1993 (filed as Exhibit 10e to Tandy's          
Form 10-K filed on March 30, 1994, Accession      
No. 0000096289-94-000029 and incorporated         
herein by reference).                             

10f*       Special Compensation Plan No. 2 for Tandy                    
Corporation Executive Officers, adopted           
in 1993 (filed as Exhibit 10f to Tandy's          
Form 10-K filed on March 30, 1994, Accession      
No. 0000096289-94-000029 and incorporated         
herein by reference).                             

10g*       Special Compensation Plan for Directors                      
of Tandy Corporation dated November 13,           
1986 (filed as Exhibit 10g to Tandy's             
Form 10-K filed on March 30, 1994,                
Accession No. 0000096289-94-000029 and            
incorporated herein by reference).                

10h*       Director Fee Resolution (filed as Exhibit                    
10h to Tandy's Form 10-K filed on March 30,       
1994, Accession No. 0000096289-94-000029          
and incorporated herein by reference).            

10i*       Tandy Corporation 1985 Stock Option Plan                     
as restated effective August 1990 (filed          
as Exhibit 10i to Tandy's Form 10-K filed         
on March 30, 1994, Accession No.                  
0000096289-94-000029 and incorporated             
herein by reference).                             

10j*       Tandy Corporation 1993 Incentive Stock Plan                  
as restated October 14, 1993 (filed as Exhibit    
4B to Tandy's Form S-8 for Tandy Corporation      
Incentive Stock Plan, Reg.  No.  33-51603,        
filed on November 12, 1993, Accession No.         
0000096289-93-000017 and incorporated             
herein by reference).                             

10k*       Tandy Corporation Officers Life Insurance                    
Plan as amended and restated effective            
August 22, 1990 (filed as Exhibit 10k to          
Tandy's Form 10-K filed on March 30, 1994,        
Accession No. 0000096289-94-000029 and            
incorporated herein by reference).                

10l*       Restated Trust Agreement Tandy Employees                     
Supplemental Stock Program through Amendment      
No. III dated March 29, 1993 (filed as            
Exhibit 10H to Tandy's Form 10-K/A-4 filed        
on September 3, 1993, Accession No.               
0000096289-93-000011 and incorporated             
herein by reference).                             

10m*       Forms of Termination Protection Agreements                   
for (i) Corporate Executives, (ii) Division       
Executives, and (iii) Subsidiary Executives       
(filed as Exhibit 10m to Tandy's Form 10-K        
filed on March 30, 1994, Accession No.            
0000096289-94-000029 and incorporated             
herein by reference).                             

10n*       Tandy Corporation Termination Protection                     
Plans for Executive Employees of Tandy            
Corporation and its Subsidiaries (i) the          
Level I and (ii) Level II Plans (filed as         
Exhibit 10n to Tandy's Form 10-K filed on         
March 30, 1994, Accession No. 0000096289-         
94-000029 and incorporated herein by              
reference).                                       

10o*       Forms of Bonus Guarantee Letter Agreements                   
with certain Executive Employees of Tandy         
Corporation and its Subsidiaries (i)              
Formula, (ii) Discretionary, and (iii) Pay        
Plan (filed as Exhibit 10o to Tandy's Form        
10-K filed on March 30, 1994, Accession No.       
0000096289-94-000029 and incorporated herein      
by reference).                                    

10p*       Form of Indemnity Agreement with Directors,                  
Corporate Officers and two Division Officers      
of Tandy Corporation (filed as Exhibit 10p        
to Tandy's Form 10-K filed on March 30,           
1994, Accession No. 0000096289-94-000029          
and incorporated herein by reference).            

11         Statement of Computation of Earnings                         
per Share                                      17 
12         Statement of Computation of Ratio of                         
Earnings to Fixed Charges                      19 
27         Financial Data Schedule                                      
_______________________                                                 
* Each of these exhibits is a "management contract or                   
compensatory plan, contract, or arrangement".                           

10-Q
10th “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 10th
                                                            [Enlarge/Download Table]
                                                                                                                        

                                                TANDY CORPORATION                                             EXHIBIT 11
                                  STATEMENT OF COMPUTATION OF EARNINGS PER SHARE                                        

<CAPTIONS>                                                                                                              
                                                                        Three Months Ended March 31,                    
                                                                       -----------------------------                    
(In thousands, except per share amounts)                                   1995             1994                        
-------------------------------------------------------------------    ------------    ------------                     
                                                                                                                        
Primary Earnings Per Share                                                                                              

Reconciliation of net income per statements of income to                                                                
  amounts used in computation of primary earnings per share:                                                            

  Net income, as reported                                              $     38,935    $     41,795                     
  Less dividends on preferred stock:                                                                                    
    Series B                                                                 (1,667)         (1,806)                    
                                                                       ------------    ------------                     
  Net income available to common                                                                                        
    shareholders for primary earnings per share                        $     37,268    $     39,989                     
                                                                       ============    ============                     

  Weighted average number of common shares outstanding                       58,655          63,648                     
  Weighted average number of $2.14 depositary shares,                                                                   
    representing Series C preferred stock, treated as                                                                   
    common stock due to mandatory conversion                                  9,059          11,816                     
  Weighted average number of common shares issuable                                                                     
    under stock option plans, net of assumed treasury stock                                                             
    repurchases at average market prices                                        460             338                     
                                                                       ------------    ------------                     
  Weighted average number of common and common                                                                          
    equivalent shares outstanding                                            68,174          75,802                     
                                                                       ============    ============                     

  Net income available per average                                                                                      
    common and common equivalent share                                 $       0.55    $       0.53                     
                                                                       ============    ============                     
Fully Diluted Earnings Per Share (a)                                                                                    

Reconciliation of net income per statements of income to                                                                
  amounts used in computation of fully diluted earnings per share:                                                      

  Net income available to common stockholders                          $     37,268    $     39,989                     
  Adjustments for assumed conversion of Series B preferred stock                                                        
    to common stock as of the beginning of the period:                                                                  
    Plus dividends on Series B preferred stock                                1,667             (b)                     
    Less additional contribution that would have been required                                                          
      for the TESOP if Series B preferred stock had been converted             (932)            (b)                     
                                                                       ------------    ------------                     
  Net income available per common and                                                                                   
    common equivalent share, as adjusted                               $     38,003    $     39,989                     
                                                                       ============    ============                     

Reconciliation of weighted average number of shares outstanding                                                         
  to amount used in computation of fully diluted earnings per share:                                                    

  Weighted average number of shares outstanding                              68,174          75,802                     
  Adjustment to reflect assumed exercise of stock                                                                       
    options as of the beginning of the period                                   128              16                     
  Adjustment to reflect assumed conversion of Series B preferred                                                        
    stock to common stock as of the beginning of the period                   1,936             (b)                     
                                                                       ------------    ------------                     
  Weighted average number of common and common                                                                          
    equivalent shares outstanding, as adjusted                               70,238          75,818                     
                                                                       ============    ============                     

  Fully diluted net income available per average                                                                        
    common and common equivalent share                                 $       0.54    $       0.53                     
                                                                       ============    ============                     

(a) This calculation is submitted in accordance with Regulation S-K, Item 601(b)(11) although not required              
    by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%.                 
(b) For the three months ended March 31, 1994 these items are anti-dilutive and thus are omitted from the calculation.  

                                                                            
10-Q
Last “Page” of 11
TOC
1st
Previous
Next
↓Bottom
Just 11th
                                                            [Enlarge/Download Table]
                                                                                                               
                                                TANDY CORPORATION                                    EXHIBIT 12
                         STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES                        
                         AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS                        

                                                                       Three Months Ended March 31,            
                                                                       ----------------------------            
(In thousands, except ratios)                                             1995            1994                 
-------------------------------------------------------------------    ------------    ------------            
                                                                                                               
Ratio of Earnings to Fixed Charges:                                                                            
Net income                                                             $     38,935    $     41,795            
Plus provision for income taxes                                              24,374          25,889            
                                                                       ------------    ------------            
Income before income taxes                                                   63,309          67,684            
                                                                       ------------    ------------            

Fixed charges:                                                                                                 
  Interest expense and amortization of debt discount                         10,660           9,993            
  Amortization of issuance expense                                               69              88            
  Appropriate portion (33 1/3%) of rentals                                   17,748          17,534            
                                                                       ------------    ------------            
    Total fixed charges                                                      28,477          27,615            
                                                                       ------------    ------------            
Earnings before income taxes and                                                                               
  fixed charges                                                        $     91,786    $     95,299            
                                                                       ============    ============            

Ratio of earnings to fixed charges                                             3.22            3.45            
                                                                       ============    ============            
Ratio of Earnings to Fixed Charges and                                                                         
  Preferred Dividends:                                                                                         

Total fixed charges, as above                                          $     28,477    $     27,615            
Preferred dividends                                                           6,491           9,831            
                                                                       ------------    ------------            
Total fixed charges and preferred dividends                            $     34,968    $     37,446            
                                                                       ============    ============            
Earnings before income taxes, fixed charges                                                                    
  and preferred dividends                                              $     91,786    $     95,299            
                                                                       ============    ============            
Ratio of earnings to fixed charges and preferred dividends                     2.62            2.54            
                                                                       ============    ============            
                                                                            

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘10-Q’ Filing		Date		First		Last			Other Filings
		12/31/95		5					10-K,  11-K
Filed on:		5/12/95		8
		4/30/95		1
		4/15/95		5
		4/12/95		9					8-K
		4/5/95		5
For Period End:		3/31/95		1		7			11-K
		3/30/95		5		9			10-K,  8-K,  DEF 14A
		3/10/95		5		7
		2/3/95		9					8-K
		2/2/95		7		9			8-K
		2/1/95		7
		1/23/95		5
		1/21/95		7					8-K
		1/18/95		7		9			8-K
		1/16/95		5
		1/6/95		7					8-K
		1/1/95		5		7
		12/31/94		5		6			10-K,  11-K
		12/30/94		5		7			8-K
		8/15/94		9					10-Q
		8/1/94		5		6			8-K
		5/27/94		9
		3/31/94		5		10			10-Q,  11-K
		3/30/94		9					10-K,  DEF 14A
		2/1/94		9
		1/26/94		9
		11/12/93		9
		10/14/93		9
		9/3/93		9
		8/4/93		9
		7/27/93		9
		7/13/93		9
		6/30/93		9
		3/29/93		9
		7/10/92		9
		2/13/92		9
									List all Filings