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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)
May 8, 2007
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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 May 8, 2007, the Company issued a press release announcing its net
sales for the quarter ended April 30, 2007.
The press release also contains the announcement of the Company's
conference call and audio webcast to be conducted on May 31, 2007, 10:00 A. M.
Central Daylight 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 May 8, 2007.
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: May 8, 2007 By: /s/ David L. Rogers
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David L. Rogers
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Press Release, May 8, 2007
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Exhibit 99.1
Conn's, Inc. Reports Sales Results for the
Quarter Ended April 30, 2007
BEAUMONT, Texas--(BUSINESS WIRE)--May 8, 2007--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
ended April 30, 2007.
Net sales for the quarter ended April 30, 2007 of $181.4 million
increased $9.7 million, or 5.6%, as compared with the quarter ended
April 30, 2006, which, as previously disclosed, was positively
impacted by hurricanes Katrina and Rita. Net sales represent net
product sales (see table below), 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 earnings
release and conference call scheduled for May 31, 2007.
Same store sales (sales recorded in stores operated for the
entirety of both periods) decreased 0.3% for the quarter ended April
30, 2007. As previously disclosed, same store sales for the quarter
ended April 30, 2006 of 16.1% were positively impacted by hurricanes
Katrina and Rita.
"Our same store sales are flat, as expected, compared to an
unusually strong quarter last year," said the Company's Chairman and
CEO, Thomas J. Frank, Sr. "We are on track and look forward to
increased sales growth for the remainder of the year."
Product sales Quarter ended April 30,
---------------------------------
% of % of
(in $000) 2007 Tot 2006 Tot Change % Change
--------- ------ --------- ------ ------- ---------
Electronics $58,823 35.3% $53,636 33.8% $5,187 9.7%
Appliances 57,707 34.6% 61,649 38.9% (3,942) -6.4%
Track 21,681 13.0% 23,264 14.7% (1,583) -6.8%
Furniture 13,513 8.1% 5,406 3.4% 8,107 150.0%
Lawn and garden 6,156 3.7% 5,273 3.3% 884 16.8%
Other 8,759 5.3% 9,281 5.9% (522) -5.6%
--------- ------ --------- ------ -------
Net product sales $166,639 100.0% $158,509 100.0% $8,130 5.1%
========= ====== ========= ====== =======
The electronics category showed strong growth benefiting from the
continued consumer interest in flat panel televisions. The appliance
category decreased as compared to the storm assisted first quarter of
last year, which produced an abnormally high incidence of
refrigeration replacement sales. Track sales (portable electronics,
computers, computer peripherals, and small appliances) decreased as
the Company modifies its merchandising strategies. Furniture continued
its phenomenal growth and Lawn and garden is showing early strength
this year.
Company's total net sales for the quarter benefited from the six
stores added since the first quarter of last year. The Company has
several stores under development and plans to open six to eight new
stores during the fiscal year ending January 31, 2008.
The Company will host a conference call and audio webcast on
Thursday, May 31, 2007 at 10:00AM, CDT, to fully discuss earnings and
performance for the quarter. The webcast will be available live at
www.conns.com and will be archived for one year. Participants can join
the call by dialing 800-811-8824 or 913-981-4903.
About Conn's, Inc.
The Company is a specialty retailer currently operating 62 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
58% 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 filed on March 29, 2007. 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.
Chairman and CEO
Thomas J. Frank, 409-832-1696 Ext. 3218