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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)
February 6, 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 February 6, 2006, the Company issued a press release announcing its net
sales for the quarter and the fiscal year ended January 31, 2006. 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 February 6, 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: February 6, 2006 By: /s/ David L. Rogers
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David L. Rogers
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release, dated February 6, 2006
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Exhibit 99.1
Conn's, Inc. Reports Record Sales Results for the Year Ended January 31, 2006
BEAUMONT, Texas--(BUSINESS WIRE)--Feb. 6, 2006--Conn's, Inc.
(NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer electronics,
computers, lawn and garden products and mattresses, today announced its net
sales results for the quarter and year ended January 31, 2006.
Net sales for the quarter ended January 31, 2006 increased $43.2 million,
or 30.5%, from $141.7 million for the quarter ended January 31, 2005 to $184.9
million for the quarter ended January 31, 2006. Same store sales (sales recorded
in stores operated for the entirety of both periods) increased 22.6% for the
same period. Net sales for the quarter continued to be positively impacted by
residual effects of Hurricanes Katrina and Rita in the geographic areas affected
by the storms. Sales in those areas continue to be stronger than normal although
precise measurement is difficult.
Net sales for year ended January 31, 2006 increased $126.6 million, or
25.6%, from $494.2 million for the year ended January 31, 2005 to $620.8 million
for the year ended January 31, 2006. Same store sales (sales recorded in stores
operated for the entirety of both periods) increased 16.9% for the same period.
As previously reported, third quarter net sales were positively impacted by
Hurricanes Katrina and Rita. Fourth quarter sales also have been positively
impacted as described above.
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 and the year will be reported in the Company's
press release and conference call scheduled for March 30, 2006.
"The fourth quarter was a continuation of a strong sales growth year for
our company," said Thomas J. Frank, Chairman and Chief Executive Officer.
"November set the record for the highest sales month in our history, followed by
December which eclipsed that record. Same store sales increased 23.3% in the
third quarter and 22.6% in the fourth quarter driven by strong performances in
most categories particularly in the appliance category and our emerging
furniture category. I am very pleased with the commitment of all our associates
during this year which led to these good sales numbers."
About Conn's, Inc.
The Company is a specialty retailer currently operating 56 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 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 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, 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; weather conditions in the Company's markets; 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 filed on April 5, 2005. 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