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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, 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 May 8, 2006, the Company issued a press release announcing its net sales
for the quarter ended April 30, 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 May 8, 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: May 8, 2005 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, May 8, 2005
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Exhibit 99.1
Conn's, Inc. Reports Sales Results for the
Quarter Ended April 30, 2006
BEAUMONT, Texas--(BUSINESS WIRE)--May 8, 2006--Conn's, Inc.
(Nasdaq: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, 2006.
Net sales for the quarter ended April 30, 2006 increased $32.8
million, or 23.6%, from $138.9 million for the quarter ended April 30,
2005 to $171.7 million. 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 June 1, 2006.
Same store sales (sales recorded in stores operated for the
entirety of both periods) increased 16.1% for the quarter ended April
30, 2006. In addition to same store sales, the Company benefited from
the six stores added since the first quarter of last year. The Company
experienced 20+% increases in its core categories of major appliances
and electronics and also saw strong percentage increases in the
mattresses and furniture categories this quarter. As percentage of
total net sales, appliances and electronics represent approximately
39% and 34%, respectively.
During the quarter, the Company opened its 57th store; the new
35,000 square-foot store is located in Baytown, Texas, just east of
Houston. The Company's 58th store is expected to come on-line later
this month in west Houston. The Company expects to open six to eight
new stores during the fiscal year ending January 31, 2007, including
these two stores.
"We are off to a solid start for the year with net sales coming in
as expected," said Thomas J. Frank, Chairman and Chief Executive
Officer. "We identified several strategies for the year relative to
sales which include the company-wide roll-out of our new furniture
initiative, increased focus on our mattress business, enhancing our
training program and improved performance in our Dallas market. We
expect these strategies to enhance our ability to deliver continued
sales growth for the year."
About Conn's, Inc.
The Company is a specialty retailer currently operating 57 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, 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 March 31, 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.
Thomas J. Frank, 409-832-1696 ext. 3218