RadioShack announces new capital allocation strategy

Fort Worth, Texas -- RadioShack Corp. announced Tuesday a 100% increase in its dividend and the authorization of a $200 million share repurchase program as part of a new capital allocation strategy.



The strategy, according to the company, is designed to balance business growth opportunities with continued strong cash flow and provide a more consistent return of excess cash to long-term shareholders.



The board increased the annual dividend on the company's common stock to $.50 per share in 2011, compared with $.25 per share paid in 2010, and has changed the annual dividend payout to a quarterly payout. The annual cash dividend of $.50 per share for 2011 is payable on Dec. 15, 2011, to stockholders of record at the close of business on Nov. 25, 2011, after which the dividend will be paid on a quarterly basis beginning in the first quarter of 2012.



The board also approved an authorization for a share repurchase of $200 million of the company's common stock to be executed from time to time through open market or private transactions. The company said it currently expects to repurchase $200 million of the common stock during the next 12 months.



"Our balance sheet is strong and our business generates consistent positive cash flow," said Jim Gooch, president and CEO of RadioShack Corp. "At the same time, our evolving growth profile is well supported by current cash flow. Our new capital strategy reflects our desire to return excess cash more consistently to shareholders during a challenging economic environment."