Apr 26, 2005
Conn's Board Extends CEO's and Other Executives' Employment Agreements
Conn's Board Extends CEO's and Other Executives' Employment Agreements
Conn's Board Extends CEO's and Other Executives' Employment Agreements BEAUMONT, Texas--(BUSINESS WIRE)--April 26, 2005--Conn's, Inc. (NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer electronics, computers, mattresses and lawn and garden products, announced today that it has entered into agreements with Thomas J. Frank, Conn's Chairman and Chief Executive Officer, William C. Nylin, Conn's President and Chief Operating Officer, and David R. Atnip, Conn's Senior Vice President and Secretary/Treasurer to extend the term of their employment agreements. Messrs. Frank and Nylin's employment agreements were extended until January 31, 2008, and Mr. Atnip's employment agreement was extended until January 31, 2007. Conn's also announced today that it has entered into an employment agreement with David L. Rogers, Conn's Chief Financial Officer, with an initial term that ends January 31, 2007. The amendment to Mr. Frank's employment agreement is subject to Conn's stockholder's approval, while all the other amendments and agreements were effective immediately.
"Tommy Frank and his management team have delivered superior results, including increases in Conn's net income from continuing operations at a compounded annual rate of nearly 25% since fiscal 1999," commented Douglas H. Martin, a director of Conn's and Executive Vice President of Stephens Group, Inc., Conn's largest shareholder. "We are pleased with the leadership they have provided over the last several years and believe their continued commitment to the Company bodes well for our shareholders and is consistent with Conn's continuing process of developing executive talent for orderly management succession in future years."
About Conn's, Inc.
The Company is a specialty retailer currently operating 50 retail locations in Texas and Louisiana: 18 stores in the Houston area, eight in the Dallas/Fort Worth Metroplex, seven in San Antonio, five in Austin, four in Southeast Texas, one in Corpus Christi, one in McAllen and six stores in Louisiana. It sells major home appliances, including refrigerators, freezers, washers, dryers and ranges, and a variety of consumer electronics, including projection, plasma and LCD televisions, camcorders, computers and computer peripherals, DVD players, portable audio and home theater products. The Company also sells lawn and garden products and mattresses, and continues to introduce additional product categories for the home to help increase same store sales and to respond to our customers' product needs.
Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. Historically, it has financed, on average, approximately 56% of retail sales. Customer receivables are financed substantially through an asset-backed securitization facility, from which the Company derives servicing fee income and interest income from these assets. The Company transfers receivables, consisting of retail installment contracts and revolving accounts extended to its customers, to a qualifying special purpose entity, or the issuer, in exchange for cash and subordinated securities represented by asset-backed and variable funding notes issued to third parties.
This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to have been correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the Company's growth strategy; the health and personal obligations of the individual executives and the Company's ability to develop or hire the appropriate executives. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
"Tommy Frank and his management team have delivered superior results, including increases in Conn's net income from continuing operations at a compounded annual rate of nearly 25% since fiscal 1999," commented Douglas H. Martin, a director of Conn's and Executive Vice President of Stephens Group, Inc., Conn's largest shareholder. "We are pleased with the leadership they have provided over the last several years and believe their continued commitment to the Company bodes well for our shareholders and is consistent with Conn's continuing process of developing executive talent for orderly management succession in future years."
About Conn's, Inc.
The Company is a specialty retailer currently operating 50 retail locations in Texas and Louisiana: 18 stores in the Houston area, eight in the Dallas/Fort Worth Metroplex, seven in San Antonio, five in Austin, four in Southeast Texas, one in Corpus Christi, one in McAllen and six stores in Louisiana. It sells major home appliances, including refrigerators, freezers, washers, dryers and ranges, and a variety of consumer electronics, including projection, plasma and LCD televisions, camcorders, computers and computer peripherals, DVD players, portable audio and home theater products. The Company also sells lawn and garden products and mattresses, and continues to introduce additional product categories for the home to help increase same store sales and to respond to our customers' product needs.
Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. Historically, it has financed, on average, approximately 56% of retail sales. Customer receivables are financed substantially through an asset-backed securitization facility, from which the Company derives servicing fee income and interest income from these assets. The Company transfers receivables, consisting of retail installment contracts and revolving accounts extended to its customers, to a qualifying special purpose entity, or the issuer, in exchange for cash and subordinated securities represented by asset-backed and variable funding notes issued to third parties.
This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to have been correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the Company's growth strategy; the health and personal obligations of the individual executives and the Company's ability to develop or hire the appropriate executives. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
