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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)
August 7, 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 August 7, 2007, the Company issued a press release announcing its net
sales for the quarter ended July 31, 2007.
The press release also contains the announcement of the Company's
conference call and audio webcast to be conducted on August 30, 2007, at 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 August 7, 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.
2
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: August 7, 2007 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
- ----------- -----------
99.1 Press Release, August 7, 2007
4
Exhibit 99.1
Conn's, Inc. Reports Sales Results for the
Quarter Ended July 31, 2007
BEAUMONT, Texas--(BUSINESS WIRE)--Aug. 7, 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 July 31, 2007.
Net sales for the quarter ended July 31, 2007, of $179.0 million,
increased $15.4 million, or 9.4%, as compared with the quarter ended
July 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 5.0% for the quarter ended
July 31, 2007. Revenues from finance charges and other for the quarter
will be reported in the Company's earnings release and conference call
scheduled for August 30, 2007.
"We had strong same store sales, compared to a solid quarter last
year, while battling in a very competitive market during the current
year period," said the Company's Chairman and CEO, Thomas J. Frank,
Sr. "Despite the pricing pressures we look forward to consistent sales
growth over the rest of the year."
Product sales Quarter ended July 31,
-------------------------------
% of % of
(in $000) 2007 Total 2006 Total Change % Change
-------- ------ -------- ------ -------- --------
Electronics $ 53,426 32.6% $ 46,421 30.8% $ 7,005 15.1%
Appliances 60,737 37.1% 59,931 39.8% 806 1.3%
Track 21,055 12.9% 20,246 13.4% 809 4.0%
Furniture 11,047 6.7% 8,243 5.5% 2,804 34.0%
Lawn and garden 8,555 5.2% 6,576 4.4% 1,979 30.1%
Other 8,973 5.5% 9,230 6.1% (257) -2.8%
-------- ------ -------- ------ --------
Net product sales $163,793 100.0% $150,647 100.0% $13,146 8.7%
======== ====== ======== ====== ========
The electronics category continued to show strong growth
benefiting from consumer interest in flat panel televisions. The
appliance category increased for the first time since the storms in
2005 on higher laundry sales and essentially flat refrigeration sales.
Track sales (portable electronics, computers, computer peripherals,
and small appliances) increased on improved laptop computer sales.
Furniture continued its strong growth and Lawn and garden was
positively benefited by the weather conditions during the quarter.
Net sales for the six months ended July 31, 2007, increased $25.1
million, or 7.5%, from $335.3 million for the six months ended July
31, 2006, to $360.4 million for the six months ended July 31, 2007.
Same store sales for the six month period ended July 31, 2007,
increased 2.1%.
The Company's total net sales for the quarter and six months
benefited from six stores added since the first quarter of last year.
The Company has several stores under development and plans to open
seven to ten new stores during the fiscal year ending January 31,
2008.
The Company will host a conference call and audio webcast on
Thursday, August 30, 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 866-290-0916 or 913-312-1226.
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 micro-display projection,
plasma and LCD flat-panel televisions, camcorders, digital cameras,
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, and 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 (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 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 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