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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report:
(Date of earliest event reported)
November 7, 2006
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CONN'S, INC.
(Exact name of registrant as specified in charter)
Delaware
(State or other Jurisdiction of Incorporation or Organization)
000-50421 06-1672840
(Commission File Number) (IRS Employer Identification No.)
3295 College Street
Beaumont, Texas 77701
(Address of Principal Executive
Offices and zip code)
(409) 832-1696
(Registrant's telephone
number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) 12 under the
Securities Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) 12 under the
Securities Act (17 CFR 240.13e-2(c))
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Item 2.02 Results of Operations and Financial Condition.
On November 7, 2006, the Company issued a press release announcing its
net sales for the quarter and the nine months ended October 31, 2006.
The press release also contains the announcement of a Company's webcast
to be broadcast on November 30, 2006, 10:00 a.m. Central Time from the Company's
corporate headquarters.
A copy of the press release is furnished herewith as Exhibit 99.1 and
is incorporated herein by reference.
Item 9.01(c) Exhibits.
Exhibit 99.1 Press Release, dated November 7, 2006
All of the information contained in Item 2.02 and Item 9.01(c) in this
Form 8-K and the accompanying exhibit shall not be deemed to be "filed" for the
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and
shall not be incorporated by reference in any filing under the Securities Act of
1933, as amended.
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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 hereunto duly authorized.
CONN'S, INC.
Date: November 7, 2006 By: /s/ David L. Rogers
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David L. Rogers
Chief Financial Officer
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EXHIBIT INDEX
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Exhibit No. Description
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99.1 Press Release, November 7, 2006
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Exhibit 99.1
Conn's, Inc. Reports Sales Results for the Quarter
and Nine Months Ended October 31, 2006
BEAUMONT, Texas--(BUSINESS WIRE)--Nov. 7, 2006--Conn's, Inc.
(NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer electronics,
computers, lawn and garden products, furniture and mattresses, today announced
its net sales results for the quarter and nine months ended October 31, 2006.
Net sales for the quarter ended October 31, 2006 of $152.4 million
decreased $0.7 million, or 0.4%, as compared with the quarter ended October 31,
2005 which, as previously disclosed, was positively impacted by hurricanes
Katrina and Rita. Net sales for the nine months ended October 31, 2006 increased
$51.8 million, or 11.9%, to $487.7 million from $435.9 million for the nine
months ended October 31, 2005.
Net sales represent net product sales, delivery charges, service revenues
and commissions from service maintenance agreement sales. Revenues from finance
charges and other for the quarter will be reported in the Company's press
release and conference call scheduled for November 30, 2006.
Same store sales (sales recorded in stores operated for the entirety of
both periods) decreased 3.7% for the quarter ended October 31, 2006. As
previously disclosed, same store sales for the quarter ended October 31, 2005 of
23.3% were positively impacted 700 to 900 basis points by hurricanes Katrina and
Rita. Same store sales were up 6.5% for the nine month period ended October 31,
2006.
"We are generally pleased with our sales performance for the quarter
considering the positive impact of last year's Gulf Coast hurricane activity
which augmented last year's sales," said Thomas J. Frank, Chairman and Chief
Executive Officer. "We were up against unprecedented sales volume with same
store sales increases of 23.3% in last year's third quarter. We were able to
retain most of the prior year's enormous sales growth."
The Company's total net sales for the quarter benefited from the four
stores added since the first three quarters of last year. The Company
experienced approximately 10% and 18% increases in its core categories of major
appliances and electronics, respectively, and also saw strong percentage
increases in the mattresses and furniture categories of 46% and 106%,
respectively, for the nine month period ended October 31, 2006. As a percentage
of total product sales, appliances and electronics represent approximately 36%
and 33%, respectively. Combined mattresses and furniture sales comprise 8% of
total product sales.
During the quarter, the Company opened its 59th store; the new 30,000
square-foot store is located in San Antonio. Conn's expects to open its 60th
store later this week in Arlington, Texas, west of Dallas. The Company is
targeting to open five to six new stores during the fiscal year ending January
31, 2007, including the three stores already opened so far this year and the one
expected to open this week.
The Company will host a conference call and audio webcast on Thursday,
November 30, 2006 at 10:00 AM, CDT, to fully discuss earnings and performance
for the quarter and nine months ended October 31, 2006. The webcast will be
available live at www.conns.com and will be archived for one year. Participants
can join the call by dialing 800-289-0572 or 913-981-5543.
About Conn's, Inc.
The Company is a specialty retailer currently operating 59 retail locations
in Texas and Louisiana. It sells major home appliances, including refrigerators,
freezers, washers, dryers and ranges, and a variety of consumer electronics,
including projection, plasma, LCD and DLP televisions, camcorders, DVD players
and home theater products. The Company also sells computers, lawn and garden
products, mattresses and furniture, 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 in-house credit
options for its customers. Historically, it has financed over 57% 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 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 and plans regarding opening new stores and entering
new markets; the Company's intention to update or expand existing stores; the
Company's estimated capital expenditures and costs related to the opening of new
stores or the update or expansion of existing stores; the Company's ability to
introduce additional product categories; the Company's cash flow from
operations, borrowings from its revolving line of credit and proceeds from
securitizations to fund operations, debt repayment and expansion; growth trends
and projected sales in the home appliance and consumer electronics industry and
the Company's ability to capitalize on such growth; relationships with the
Company's key suppliers; the results of the Company's litigation; interest
rates; weather conditions in the Company's markets; delinquency and loss trends
in the sold receivables portfolio; changes in the Company's stock price; and the
actual number of shares of common stock outstanding. Further information on
these risk factors is included in the Company's filings with the Securities and
Exchange Commission, including the Company's Form 10-K/A filed on September 15,
2006. 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.
CONTACT: Conn's, Inc., Beaumont
Thomas J. Frank, 409-832-1696 Ext. 3218
Chairman and CEO