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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, 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 February 6, 2007, the Company issued a press release announcing its net
sales for the quarter and the fiscal year ended January 31, 2007.
The press release also contains the announcement of a Company's webcast to
be broadcast on March 29, 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 February 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.
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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, 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
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99.1 Press Release, February 6, 2007
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Exhibit 99.1
Conn's, Inc. Reports Sales Results for the Quarter and Year Ended
January 31, 2007
BEAUMONT, Texas--(BUSINESS WIRE)--Feb. 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 and
year ended January 31, 2007.
Net sales for the quarter ended January 31, 2007 of $189.6 million
increased $4.7 million, or 2.5%, as compared with the quarter ended
January 31, 2006, which, as previously disclosed, was positively
impacted by hurricanes Katrina and Rita. Net sales for the year ended
January 31, 2007 increased $56.6 million, or 9.1%, from $620.7 million
for the year ended January 31, 2006 to $677.3 million for the year
ended January 31, 2007.
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 March 29, 2007.
Same store sales (sales recorded in stores operated for the
entirety of both periods) decreased 2.0% for the quarter ended January
31, 2007. As previously disclosed, same store sales for the quarter
ended January 31, 2006 of 22.6% were positively impacted 700 to 900
basis points by hurricanes Katrina and Rita. Same store sales were up
3.7% for the year ended January 31, 2007.
"Despite being up against unprecedented same store sales growth of
22.6% in the fourth quarter of last year, we posted very respectable
sales growth in this fourth quarter," said the Company's Chairman and
CEO, Thomas J. Frank, Sr., "primarily as a result of very good
performance in the critical, holiday selling season."
The Company's total net sales for the quarter benefited from the
six stores added since last year. For the year ended January 31, 2007,
the Company experienced approximately 4% and 15% increases in its core
categories of major appliances and electronics, respectively, and also
saw strong percentage increases in the mattresses and furniture
categories of 35% and 118%, respectively. As a percentage of total
product sales, appliances and electronics represent approximately 34%
and 34%, respectively. Combined mattresses and furniture sales
comprise 8% of total product sales.
During the quarter, the Company opened three stores: two in the
Dallas market and one in the Houston market. The Company opened six
new stores for the year. The Company is targeting 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, March 29, 2007 at 10:00AM, CDT, to fully discuss earnings
and performance for the quarter and year ended January 31, 2007. The
Company will also discuss its projections for the next fiscal year at
that time. 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
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, 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/A filed on September 15, 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., Beaumont
Chairman and CEO
Thomas J. Frank, 409-832-1696 Ext. 3218