View:
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------
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 6, 2007
----------------------------
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))
================================================================================
Item 2.02 Results of Operations and Financial Condition.
On November 6, 2007, the Company issued a press release announcing its
net sales for the quarter ended October 31, 2007.
The press release also contains the announcement of the Company's
conference call and audio webcast to be conducted on November 29, 2007, at 10:00
A. M. Central Standard 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 6, 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.
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 6, 2007 By: /s/ David L. Rogers
-----------------------
David L. Rogers
Chief Financial Officer
EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
99.1 Press Release, November 6, 2007
Exhibit 99.1
Conn's, Inc. Reports Sales Results for the
Quarter Ended October 31, 2007
BEAUMONT, Texas--(BUSINESS WIRE)--Nov. 6, 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 October 31, 2007.
Net sales for the quarter ended October 31, 2007, of $170.0
million, increased $17.6 million, or 11.6%, as compared with the
quarter ended October 31, 2006. Net sales represent net product sales
(see table below), service revenues and commissions from service
maintenance agreement sales. Same store sales (sales recorded in
stores operated for the entirety of both periods) increased 6.8% for
the quarter ended October 31, 2007. During the quarter ended October
31, 2007, the Company opened one new store in Brownsville, Texas, and
a clearance center in San Antonio, giving it a total of 64 stores as
of the end of the quarter. Revenues from finance charges and other for
the quarter will be reported in the Company's earnings release and
conference call scheduled for November 29, 2007.
"Consumer electronics continued to be a big driver of our sales
this quarter," said the Company's Chairman and CEO, Thomas J. Frank,
Sr. "As expected, the competitive environment has been very
challenging and the margin pressures have continued."
Product sales Quarter ended October 31,
-------------------------------
% of % of
(in $000) 2007 Total 2006 Total Change % Change
-------- ------ -------- ------ -------- --------
Electronics $ 55,435 35.6% $ 46,767 33.5% $ 8,668 18.5%
Appliances 54,209 34.9% 55,080 39.5% (871) -1.6%
Track 22,274 14.3% 18,346 13.1% 3,928 21.4%
Furniture 9,854 6.3% 7,936 5.7% 1,918 24.2%
Lawn and garden 5,450 3.5% 3,995 2.9% 1,455 36.4%
Other 8,435 5.4% 7,470 5.3% 965 12.9%
-------- ------ -------- ------ --------
Net product sales $155,657 100.0% $139,594 100.0% $16,063 11.5%
======== ====== ======== ====== ========
The electronics category showed strong growth benefiting from
continued consumer interest in flat panel televisions, especially LCD
televisions, while the appliance category declined slightly on lower
laundry and refrigeration sales. Strong track sales (computers,
computer peripherals, video game equipment, portable electronics, and
small appliances) increases were driven by improved laptop computer
and video game equipment sales. Furniture continued its solid growth
and Lawn and garden positively benefited from a shift to higher priced
tractors and zero turn radius mowers.
Net sales for the nine months ended October 31, 2007, increased
$42.7 million, or 8.7%, from $487.7 million for the nine months ended
October 31, 2006, to $530.4 million for the nine months ended October
31, 2007. Same store sales for the nine month period ended October 31,
2007, increased 3.5%.
The Company will host a conference call and audio webcast on
Thursday, November 29, 2007, at 10:00AM, CST, 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 888-661-5167 or
913-312-1430.
About Conn's, Inc.
The Company is a specialty retailer currently operating 64 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 micro-display projection,
plasma and LCD flat-panel televisions, camcorders, digital cameras,
computers and computer peripherals, DVD players (both standard and
high definition), video game equipment, portable audio 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 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. The Company transfers the
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
asset-backed and variable funding notes to third parties and
subordinated securities 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. 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 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
annual report on 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