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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)
March 28, 2006
----------------------------
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 1.01 Entry into a Material Definitive Agreement.
On March 28, 2006, the Compensation Committee of the Board of Directors
(the "Compensation Committee") of Conn's, Inc. (the "Company") adopted a cash
bonus program for the 2007 fiscal year. The Company's named executive officers,
as well as certain other executive officers and certain employees, are eligible
to participate in the 2007 bonus program. Below is a description of the 2007
bonus program, as adopted by the Compensation Committee.
The purpose of the 2007 bonus program is to promote the interests of the
Company and its stockholders by providing key employees with financial rewards
upon achievement of specified business objectives, as well as help the Company
attract and retain key employees by providing attractive compensation
opportunities linked to performance results.
The Company has established three bonus levels for its 2007 bonus program:
Level 1, Level 2 and Level 3. Each of the levels represent the attainment by the
Company of certain operating pre-tax profit (excluding charges to the Company
for options and other share-based compensation) targets established by the
Compensation Committee (each, a "Profit Goal"). If the Company does not achieve
the Level 1 Profit Goal, no bonus will be paid to any named executive officer,
other executive officer or employee pursuant to the 2007 bonus program. The
bonuses that may become distributable based upon the Company's achievement of
the Level 1 through Level 3 Profit Goals will be distributed by the Chief
Executive Officer with approval from the Compensation Committee.
The Company's Chief Executive Officer will receive a bonus under the 2007
bonus program that varies based upon achievement by the Company of the Level 1
through Level 3 Profit Goals. The Level 1 bonus amount for the Chief Executive
Officer was established based upon the Compensation Committee's independent
evaluation of his relative effect on the Company's performance. The Level 2
bonus is 20% greater than the Level 1 bonus, the Level 3 bonus is 50% greater
than the Level 1 bonus.
The Company's named executive officers (excluding the Chief Executive
Officer), certain other executive officers and certain employees (each a
"Participant" and collectively, the "Participants") will also receive a bonus
under the 2007 bonus program that varies based upon achievement by the Company
of the Level 1 through Level 3 Profit Goals. The Level 1 bonus amount for each
Participant was established based upon the Compensation Committee's independent
evaluation of his or her relative effect on the Company's performance. The Level
2 bonus is generally 41% greater than the Level 1 bonus and the Level 3 bonus is
100% greater than the Level 1 bonus.
In addition, the Company has established a contingency bonus pool under the
2007 bonus program that varies based upon the Company's achievement of the Level
1 through Level 3 Profit Goals and additional funds which may accrue for
exceptional performance beyond the Level 3 Profit Goal. The contingency bonus
pool will be distributed at the discretion of the Chairman and Chief Executive
Officer with approval from the Compensation Committee.
2
Payment of bonuses (if any) is normally made in February after the end of
the performance period during which the bonuses were earned. In order to be
eligible for a bonus under the 2007 bonus program, eligible participants must be
employed through the end of fiscal year ending January 31, 2007. Bonuses
normally will be paid in cash in a single lump sum, subject to payroll taxes and
tax withholdings.
Item 2.02 Results of Operations and Financial Condition.
On March 30, 2006, the Company issued a press release announcing earnings
for the fiscal year ended January 31, 2006. A copy of the press release is
furnished herewith as Exhibit 99.1, and is incorporated herein by reference.
Item 5.02 Appointment of Principal Officer.
On May 28, 2006, our Board of Directors took the following actions, to be
effective April 1, 2006:
1. Expanded the number of members of our board of directors to nine, and
appointed Dr. William C. Nylin, Jr., who is 63 years old, to the board as
Executive Vice Chairman of our Board of Directors. Dr. Nylin will continue as
our Chief Operating Officer. Dr. Nylin has served as our President and Chief
Operating Officer since 1995. He was a member of our Board commencing in 1993,
and remained a member until September 2003, when the Company became a publicly
held entity. In addition to performing responsibilities as President and Chief
Operating Officer, he has direct responsibility for credit granting and
collections, information technology, human resources, distribution, service and
training. From 1984 to 1995, Dr. Nylin held several executive management
positions, including Deputy Chancellor and Executive Vice President of Finance
and Operation at Lamar University in Beaumont, Texas. Dr. Nylin obtained his
B.S. degree in mathematics from Lamar University, and holds both a masters and
doctorate degree in computer sciences from Purdue University. He has also
completed a post-graduate program at Harvard University. Dr Nylin continues to
be employed by us under the terms of his current employment agreement with us.
2. Appointed Timothy L. Frank as our President. Mr. Frank, who is 38 years
old, has served as our Senior Vice President - Retail since May 2005. He joined
us in September 1995 and has served in various roles throughout our Company,
including Director of Advertising, Director of Credit, Director of Legal
Collections, Director of Direct Marketing, and as Vice President of Special
Projects. Prior to joining our Company, Mr. Frank served in various marketing
positions with a nationally known marketing consulting company. Mr. Frank holds
a BS in Liberal Arts from Texas A & M University and an MBA in Marketing from
the University of North Texas. Mr. Frank has also completed a post-graduate
program at Harvard University. Mr. Frank is the son of Thomas J. Frank, Sr., our
Chief Executive Officer and Chairman of our Board of Directors. We do not have
an employment agreement with Mr. Frank. Mr. Frank will be eligible for bonuses
under the terms approved by the compensation committee of the board and other
benefits provided to our executive officers.
3. Appointed David W. Trahan as our Senior Vice President - Retail. Mr.
Trahan, who is 45 years old, has served as our Senior Vice President -
Merchandising since October 2001. He joined us in1986 and has served in various
capacities, including sales, store operations and merchandising. He has been
directly responsible for our merchandising and product purchasing functions, as
well as product display and pricing operations, for the last five years. Mr.
Trahan has completed special study programs at Harvard University, Rice
University and Lamar University. We do not have an employment agreement with Mr.
Trahan. Mr. Trahan continues to be eligible for bonuses under the terms approved
by the compensation committee of the board and other benefits provided to our
executive officers.
3
On March 30, 2006, the Company issued a press release announcing these changes.
A copy of the press release is furnished herewith as Exhibit 99.2, and is
incorporated herein by reference.
Item 9.01(c) Exhibits.
Exhibit 99.1 Press Release, dated March 30, 2006, January 31, 2006 Earnings
Exhibit 99.2 Press Release, dated March 30, 2006, Appointment of Director and
Principal Officers
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: March 30, 2006 By: /s/ David L. Rogers
--------------------------------
David L. Rogers
Chief Financial Officer
4
EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
99.1 Press Release, dated March 30, 2006, January 31, 2006
Earnings
99.2 Press Release, dated March 30, 2006, Appointment of
Director and Principal Officers
5
Exhibit 99.1
Conn's, Inc. Reports Record Earnings for Fourth Quarter and
Fiscal Year Ending January 31, 2006
BEAUMONT, Texas--(BUSINESS WIRE)--March 30, 2006--Conn's, Inc.
(NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer
electronics, computers, mattresses, furniture and lawn and garden
products, today announced record earnings results for the fourth
quarter and year ended January 31, 2006.
Net income available for common stockholders for the fourth
quarter increased 39.8% to $12.9 million compared to $9.2 million for
the fourth quarter of last year. Diluted earnings per share available
for common stockholders were $0.53 compared with $0.39 for the fourth
quarter of last year. Total revenues for the quarter ended January 31,
2006 increased 27.0% to $206.6 million compared with $162.7 million
for the quarter ended January 31, 2005. This increase in revenue
included net sales increases of $43.2 million, or 30.5%, and increases
from "Finance charges and other" of $709,000, or 3.4%. Same store
sales (revenues earned in stores operated for the entirety of both
periods) increased 22.6% for the fourth quarter of fiscal 2006.
Total revenues for the year ended January 31, 2006 increased 23.9%
to $702.4 million compared with $567.1 million for the year ended
January 31, 2005. This increase in revenue included net sales
increases of $126.5 million, or 25.6%, and increases from "Finance
charges and other" of $8.8 million, or 12.1%. Same store sales
increased 16.9% for the year ended January 31, 2006. Net income
available for common stockholders for the year ended January 31, 2006
increased 36.7% to $41.2 million compared to $30.1 million for the
year ended January 31, 2005. Diluted earnings per share available for
the common stockholder increased 33.9% to $1.70 for the year ended
January 31, 2006 from $1.27 in the prior year.
During the year, the Company added six new stores to bring the
store count to 56. By the end of January 2007, the Company expects to
operate approximately 62 to 64 stores.
"This was a remarkable year in so many ways," said Thomas J.
Frank, Conn's Chairman and Chief Executive Officer. "We successfully
made substantial modifications to our Retail Division management early
in the year and in the second half of the year contended with two
hurricanes and phenomenal sales growth. Our team was up to the
challenge in every case and delivered excellent bottom line growth. We
take what we learned with those successes into the new year where
again we expect to encounter challenges and will apply ourselves in
the same manner, demanding excellence from ourselves and our
associates."
EPS Guidance
The Company also issued guidance for fiscal year 2007 (the year
ending January 31, 2007) of earnings per diluted share of
approximately $1.85 to $1.90. The earnings guidance does give effect
for changes resulting from the required adoption of Statement of
Financial Accounting Standards No. 123R, Share-Based Payment, during
fiscal 2007. The effect on earnings per diluted share as a result of
FAS 123R is estimated to be approximately $0.07. Earnings per diluted
share on a comparable basis for the year ended January 31, 2006, had
FAS 123R been in effect, would have been $1.66 or a reduction of
approximately $0.04. Comparable store sales increases are projected in
the mid to high single digit range.
Conference Call Information
Conn's, Inc. will host a conference call and audio webcast today,
March 30, 2006, at 10:00 a.m., CST, to discuss financial results for
the quarter and year ended January 31, 2006. The webcast will be
available live at www.conns.com and will be archived for one year.
Participants can join the call by dialing (877) 704-5386.
About Conn's, Inc.
The Company is a specialty retailer currently operating 56 retail
locations in Texas and Louisiana: eighteen stores in the Houston area,
twelve in the Dallas/Fort Worth Metroplex, eight in San Antonio, five
in Austin, four in Southeast Texas, one in Corpus Christi, two in
South Texas and six stores in Louisiana. It sells major home
appliances, including refrigerators, freezers, washers, dryers and
ranges, and a variety of consumer electronics, including projection,
plasma, DLP and LCD televisions, camcorders, computers and computer
peripherals, DVD players, 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. Historically, it has
financed, on average, approximately 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. The Company transfers receivables,
consisting of retail installment contracts and revolving accounts for
credit 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 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
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; 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 30,
2006 and the current report on Form 8-K filed in connection with this
press release. 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.
Conn's, Inc.
CONDENSED, CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except earnings per share)
Three Months Ended Twelve Months Ended
January 31, January 31,
------------------- -------------------
2005 2006 2005 2006
--------- --------- --------- ---------
Revenues
Total net sales $141,721 $184,887 $494,235 $620,738
Finance charges and other 20,983 21,692 72,857 81,684
--------- --------- --------- ---------
Total revenues 162,704 206,579 567,092 702,422
Cost and expenses
Cost of goods sold,
including warehousing
and occupancy costs 102,157 133,544 355,159 448,064
Cost of parts sold,
including warehousing
and occupancy costs 1,197 1,515 4,551 5,310
Selling, general and
administrative expense 42,779 50,568 152,900 181,631
Provision for bad debts 1,615 1,245 5,637 3,769
--------- --------- --------- ---------
Total cost and expenses 147,748 186,872 518,247 638,774
--------- --------- --------- ---------
Operating income 14,956 19,707 48,845 63,648
Interest expense (income), net 595 (88) 2,359 400
--------- --------- --------- ---------
Income before minority
interest and income taxes 14,361 19,795 46,486 63,248
Minority interest in limited
partnership 241 - (118) -
--------- --------- --------- ---------
Income before income taxes 14,602 19,795 46,368 63,248
Total provision for income
taxes 5,355 6,871 16,243 22,067
--------- --------- --------- ---------
Net income $9,247 $12,924 $30,125 $41,181
========= ========= ========= =========
Earnings per share
Basic $0.40 $0.55 $1.30 $1.76
Diluted $0.39 $0.53 $1.27 $1.70
Average common shares
outstanding
Basic 23,230 23,523 23,192 23,412
Diluted 23,764 24,512 23,754 24,192
Conn's, Inc.
CONDENSED, CONSOLIDATED BALANCE SHEETS
(in thousands)
January 31,
-----------------------------
2005 2006
-------------- --------------
Assets
Current assets
Cash and cash equivalents $7,027 $45,176
Interests in securitized assets and
accounts receivable, net 131,887 146,991
Inventories 62,346 73,987
Deferred income taxes 4,901 4,670
Prepaid expenses and other assets 3,552 4,004
-------------- --------------
Total current assets 209,713 274,828
Non-current deferred tax asset 1,523 2,464
Total property and equipment, net 47,710 54,826
Goodwill and other assets, net 9,846 9,877
-------------- --------------
Total assets $268,792 $341,995
============== ==============
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable $5,500 $-
Current portion of long-term debt 29 136
Accounts payable 27,108 40,920
Accrued compensation 8,548 18,847
Accrued expense 11,928 17,380
Fair value of derivatives 177 -
Other current liabilities 8,349 18,049
-------------- --------------
Total current liabilities 61,639 95,332
Long-term debt 5,003 -
Non-current deferred tax liability 704 903
Deferred gain on sale of property 644 476
Total stockholders' equity 200,802 245,284
-------------- --------------
Total liabilities and
stockholders' equity $268,792 $341,995
============== ==============
Conn's, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Years
Ended January 31,
-----------------------------
2005 2006
-------------- --------------
Net cash provided by operating
activities $170 $64,318
Cash flows from investing activities
Purchase of property and equipment (19,619) (18,490)
Proceeds from sale of property 1,131 34
-------------- --------------
Net cash used by investing activities (18,488) (18,456)
Cash flows from financing activities
Net borrowings (payments) under bank
credit facilities 10,500 (10,500)
Net proceeds from stock issued under
employee benefit plans 1,603 2,813
Debt issuance costs (118) (130)
Borrowings on promissory notes - 136
Payment of promissory notes (60) (32)
-------------- --------------
Net cash provided by (used in) financing
activities 11,925 (7,713)
-------------- --------------
Impact on cash of consolidation of SRDS 478 -
-------------- --------------
Net change in cash (5,915) 38,149
Cash and cash equivalents
Beginning of the year 12,942 7,027
-------------- --------------
End of the year $7,027 $45,176
============== ==============
CALCULATION OF GROSS MARGIN PERCENTAGE
(dollars in thousands)
Three Months Ended Years Ended
January 31, January 31,
------------------- -------------------
2005 2006 2005 2006
--------- --------- --------- ---------
Total revenues $162,704 $206,579 $567,092 $702,422
Less cost of goods and parts
sold, including warehousing
and occupancy cost (103,354) (135,059) (359,710) (453,374)
--------- --------- --------- ---------
Gross margin dollars $59,350 $71,520 $207,382 $249,048
========= ========= ========= =========
Gross margin percentage 36.5% 34.6% 36.6% 35.5%
PORTFOLIO STATISTICS
For the periods ended January 31, 2003, 2004, 2005 and 2006
(dollars in thousands, except average outstanding balance per account)
2003 2004 2005 2006
--------- --------- --------- ---------
Total accounts 285,247 299,717 350,251 415,338
Total outstanding balance $303,825 $349,470 $428,700 $519,721
Average outstanding balance
per account $1,065 $1,166 $1,224 $1,251
60 day delinquency $16,176 $18,267 $23,143 $35,537
Percent delinquency 5.3% 5.2% 5.4% 6.8%
Loan loss ratio 3.5% 3.4% 2.9% 2.5%
CONTACT: Conn's, Inc., Beaumont
Thomas J. Frank, 409-832-1696 Ext. 3218
Exhibit 99.2
Conn's, Inc. Announces Management Changes
BEAUMONT, Texas--(BUSINESS WIRE)--March 30, 2006--Conn's, Inc.
(NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer
electronics, computers, mattresses, furniture and lawn and garden
products, today announced that its Board of Directors appointed Dr.
William C. Nylin, Jr. as Executive Vice Chairman of the Board
effective April 1, 2006. The action came at the March 28, 2006, Board
of Directors meeting after the Board increased from eight to nine the
number of board members. Nylin, who has served as the Company's
President and will remain as its Chief Operating Officer, joins other
Board members Thomas J. Frank, Sr. (Chairman of the Board and Chief
Executive Officer), Marvin D. Brailsford, Jon E.M. Jacoby, Bob L.
Martin, Douglas H. Martin, Scott L. Thompson, William T. Trawick, and
Theodore M. Wright.
Nylin continues to report to Thomas J. Frank, Sr., Chairman of the
Board and Chief Executive Officer. Rey de la Fuente, President of Conn
Credit and Senior Vice President of Conn's, Inc. will continue to
report to Nylin.
Dr. Nylin has served as President and Chief Operating Officer
since 1995. He was a member of our Board commencing in 1993, and
remained a member until September 2003, when the Company became a
publicly held entity. In addition to performing responsibilities as
President and Chief Operating Officer, he had direct responsibility
for credit granting and collections, information technology, human
resources, distribution, service and training. From 1984 to 1995, Dr.
Nylin held several executive management positions, including Deputy
Chancellor and Executive Vice President of Finance and Operation at
Lamar University in Beaumont, Texas. Dr. Nylin obtained his B.S.
degree in mathematics from Lamar University, and holds both a masters
and doctorate degree in computer sciences from Purdue University. He
has also completed a post-graduate program at Harvard University.
The Board also appointed Timothy L. Frank as President of Conn's,
Inc. who will be primarily focused on retail operations. Additionally,
the Board appointed David W. Trahan as Senior Vice President --
Retail. Rey de la Fuente remains as President of Conn Credit and leads
the Company's credit operations.
Timothy L. Frank has served as Senior Vice President -- Retail
since May, 2005. He joined the Company in September 1995 and has
served in various roles, including Director of Advertising, Director
of Credit, Director of Legal Collections, Director of Direct
Marketing, and as Vice President of Special Projects. Prior to joining
the Company, Mr. Frank served in various marketing positions with a
nationally known marketing consulting company. Mr. Frank holds a B.S.
in Liberal Arts from Texas A & M University and an MBA in Marketing
from the University of North Texas. Mr. Frank has also completed a
post-graduate program at Harvard University.
David W. Trahan has served as Senior Vice President --
Merchandising since October 2001. He has been employed since 1986 in
various capacities, including sales, store operations and
merchandising. He has been directly responsible for merchandising and
product purchasing functions, as well as product display and pricing
operations, for the last four years. Mr. Trahan has completed special
study programs at Harvard University, Rice University and Lamar
University.
All appointments were in recognition of the Company's successful,
long-term performance and provides for orderly management development
for continued growth in the future.
About Conn's, Inc.
The Company is a specialty retailer currently operating 56 retail
locations in Texas and Louisiana: eighteen stores in the Houston area,
twelve in the Dallas/Fort Worth Metroplex, eight in San Antonio, five
in Austin, four in Southeast Texas, one in Corpus Christi, two in
South Texas and six stores in Louisiana. It sells major home
appliances, including refrigerators, freezers, washers, dryers and
ranges, and a variety of consumer electronics, including projection,
plasma, DLP and LCD televisions, camcorders, computers and computer
peripherals, DVD players, 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. Historically, it has
financed, on average, approximately 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. The Company transfers receivables,
consisting of retail installment contracts and revolving accounts for
credit 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 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
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; 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 30,
2006 and the current report on Form 8-K filed in connection with this
press release. 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
Thomas J. Frank, 409-832-1696 Ext. 3218