BEAUMONT, Texas, Jun 03, 2008 (BUSINESS WIRE) -- Conn's, Inc. (NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer electronics, computers, lawn and garden products, furniture and mattresses, today announced that its Board of Directors appointed Timothy L. Frank as its Chief Executive Officer Designate effective June 1, 2008. Additionally, the Board of Directors appointed Reymundo de la Fuente, Jr. as its President - Credit Division and David W. Trahan as its President - Retail Division.
Mr. Frank is currently the Company's President and Chief Operating Officer and will, subject to final approval by the Company's Board of Directors, become Chief Executive Officer upon the retirement of Thomas J. Frank as Chief Executive Officer. He has served as the Company's President and Chief Operating Officer since June 1, 2007, and as President since April 1, 2006. Additionally he served as Senior Vice President - Retail from May, 2005. He joined the Company in September 1995 and has served in various roles, including Director of Advertising, Director of Credit, Director of Legal Collections, Director of Direct Marketing, and as Vice President of Special Projects. Prior to joining the Company, Mr. Frank served in various marketing positions with a nationally known marketing consulting company. Mr. Frank holds a B.S. in Liberal Arts from Texas A & M University and an MBA in Marketing from the University of North Texas. Mr. Frank has also completed a post-graduate program at Harvard University.
Thomas J. Frank, the Company's current Chairman of the Board and Chief Executive Officer will commit the time necessary to ensure an orderly transition of the duties of the Chief Executive Officer and will remain integrally involved in the Company's operations after the transition is completed. Mr. Frank will continue as the Company's Chief Executive Officer until January 31, 2009, or for such other time period as he and the Board of Directors agree is best for the Company.
Reymundo de la Fuente, Jr. has served as the Company's Executive Vice President - Credit since June 1, 2007. He previously served as Senior Vice President - Credit since October 2001. Since joining the Company in 1998, he has served in positions that involve direct responsibility for credit underwriting, customer service inbound operations, collections, recovery of charge-offs and legal activities. Mr. de la Fuente has worked in the credit receivables industry since 1986 with national credit organizations. His responsibilities included the strategic direction and development of large credit portfolios. Mr. de la Fuente obtained his B.B.A. in finance from The University of Texas at San Antonio and holds an M.B.A. from Our Lady of the Lake in San Antonio.
David W. Trahan has served as the Company's Executive Vice President - Retail since June 1, 2007. He previously served as Senior Vice President - Retail from April 1, 2006 and as our Senior Vice President - Merchandising from October 2001. He has been employed by the Company since 1986 in various capacities, including sales, store operations and merchandising. He has been directly responsible for our merchandising and product purchasing functions, as well as product display and pricing operations, for the last four years. Mr. Trahan has completed special study programs at Harvard University, Rice University and Lamar University.
About Conn's, Inc.
The Company is a specialty retailer currently operating 71 retail locations in Texas, Louisiana and Oklahoma: 22 stores in the Houston area, 18 in the Dallas/Fort Worth Metroplex, 10 in San Antonio, five in Austin, five in Southeast Texas, one in Corpus Christi, three in South Texas, six in Louisiana and one in Oklahoma City. It sells home appliances, including refrigerators, freezers, washers, dryers, dishwashers and ranges, and a variety of consumer electronics, including LCD, plasma and DLP televisions, camcorders, digital cameras, computers and computer accessories, DVD players, video game equipment, portable audio, MP3 players, GPS devices and home theater products. The Company also sells lawn and garden products, furniture and mattresses, and continues to introduce additional product categories for the home to help respond to its customers' product needs and to increase same store sales.
Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. In the last three years, the Company has financed, on average, approximately 59% 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. The Company transfers receivables, consisting of retail installment contracts and revolving accounts extended to its customers, to a qualifying special purpose entity (QSPE) in exchange for cash and subordinated securities. The QSPE funds its purchases of the receivables through the issuance of medium-term and variable funding notes issued to third parties and secured by the receivables, and subordinated securities issued to the Company.
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 be correct. The actual future performance of the Company could differ materially from such statements. 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 filed on March 27, 2008. 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.
SOURCE: Conn's, Inc.
Conn's, Inc., Beaumont Chairman and CEO Thomas J. Frank, 409-832-1696 Ext. 3218
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