Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 30, 2015 | 26-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CONNS INC | |
Entity Central Index Key | 1223389 | |
Current Fiscal Year End Date | -30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Apr-15 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 36,410,407 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS_un
CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
Deferred Tax Assets, Net, Current | $23,331,000 | $20,040,000 |
Income Taxes Receivable, Current | 0 | 11,058,000 |
Current assets | ||
Cash and cash equivalents | 4,959,000 | 12,223,000 |
Customer accounts receivable, net of allowances | 653,141,000 | 643,094,000 |
Other accounts receivable | 65,445,000 | 67,703,000 |
Inventories | 129,389,000 | 159,068,000 |
Prepaid expenses and other current assets | 11,613,000 | 12,529,000 |
Total current assets | 887,878,000 | 925,715,000 |
Long-term portion of customer accounts receivable, net of allowances | 558,762,000 | 558,257,000 |
Property and equipment, net | 122,189,000 | 120,218,000 |
Deferred income taxes | 34,864,000 | 33,505,000 |
Other assets | 8,979,000 | 9,627,000 |
Total assets | 1,612,672,000 | 1,647,322,000 |
Current Liabilities | ||
Current portion of long-term debt (includes balance of VIE of $32,307 at January 31, 2013) | 400,000 | 395,000 |
Accounts payable | 89,976,000 | 85,355,000 |
Accrued compensation and related expenses | 10,365,000 | 12,151,000 |
Accrued expenses | 23,972,000 | 27,479,000 |
Income taxes payable | 5,651,000 | 3,450,000 |
Deferred revenues and allowances | 15,833,000 | 16,179,000 |
Total current liabilities | 146,197,000 | 145,009,000 |
Deferred Rent Credit, Noncurrent | 54,721,000 | 52,792,000 |
Long-term debt | 719,710,000 | 774,015,000 |
Other long-term liabilities | 22,067,000 | 21,836,000 |
Liabilities | 942,695,000 | 993,652,000 |
Stockholders' equity | ||
Preferred stock ($0.01 par value, 1,000,000 shares authorized; none issued or outstanding) | 0 | 0 |
Common stock ($0.01 par value, 100,000 shares authorized; 36,410 and 36,352 shares issued, respectively) | 364,000 | 364,000 |
Additional paid-in capital | 232,025,000 | 231,395,000 |
Retained earnings | 437,588,000 | 421,911,000 |
Total stockholders' equity | 669,977,000 | 653,670,000 |
Total liabilities and stockholders' equity | 1,612,672,000 | 1,647,322,000 |
Senior Notes [Member] | ||
Debt Instrument, Fair Value Disclosure | $225,000,000 |
CONSOLIDATED_BALANCE_SHEETS_un1
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ||
Customer accounts receivable, net of allowances | $653,141 | $643,094 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 36,410,406 | 36,351,700 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Revenues | ||
Product sales | $271,626 | $254,220 |
Repair service agreement commissions | 23,796 | 20,254 |
Service revenues | 3,057 | 3,155 |
Total net sales | 298,479 | 277,629 |
Finance charges and other | 66,597 | 57,819 |
Total revenues | 365,076 | 335,448 |
Cost and expenses | ||
Cost of goods sold, including warehousing and occupancy costs | 173,472 | 160,782 |
Cost of service parts sold, including warehousing and occupancy costs | 1,312 | 1,419 |
Shipping, Handling and Transportation Costs | 12,349 | 12,163 |
Selling, general and administrative expense | 95,675 | 88,041 |
Provision for bad debts | 47,543 | 22,258 |
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 619 | 1,754 |
Charges and credits | 619 | 1,754 |
Total cost and expenses | 330,970 | 286,417 |
Operating income | 34,106 | 49,031 |
Interest expense | 9,428 | 4,724 |
Income before income taxes | 24,678 | 44,307 |
Provision for income taxes | 9,001 | 15,838 |
Net income | $15,677 | $28,469 |
Earnings per share: | ||
Basic (in dollars per share) | $0.43 | $0.79 |
Diluted (in dollars per share) | $0.43 | $0.77 |
Average common shares outstanding: | ||
Basic (in shares) | 36,365 | 36,134 |
Diluted (in shares) | 36,880 | 36,925 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $15,677 | $28,469 |
Change in fair value of hedges | 0 | 58 |
Impact of provision for income taxes on comprehensive income | 0 | -20 |
Comprehensive income | $15,677 | $28,507 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Balance | $653,670 | |
Net income | 15,677 | 28,469 |
Balance | $669,977 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Statement of Cash Flows [Abstract] | ||
Payments for (Proceeds from) Tenant Allowance | $1,391 | $1,304 |
Cash flows from operating activities | ||
Net income | 15,677 | 28,469 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Amortization and Accretion, Net | 5,608 | 5,037 |
Provision for bad debts and uncollectible interest | 55,961 | 27,189 |
Stock-based compensation | 872 | 1,090 |
Excess tax benefits from stock-based compensation | -100 | -106 |
Store and facility closure and relocation costs | 425 | 1,754 |
Benefit for deferred income taxes | -4,651 | -3,422 |
(Gain) loss on sale of property and equipment | -187 | -4 |
Payments for (Proceeds from) Tenant Allowance | -1,391 | -1,304 |
Change in operating assets and liabilities: | ||
Customer accounts receivable | -66,513 | -61,224 |
Increase (Decrease) in Other Receivables | 3,311 | -1,191 |
Inventories | 29,679 | -17,333 |
Increase (Decrease) in Prepaid Expense and Other Assets | 340 | -1,127 |
Accounts payable | 7,450 | 35,219 |
Accrued expenses | -5,874 | -3,241 |
Income taxes payable | 13,258 | 16,672 |
Increase (Decrease) in Deferred Revenue and Customer Advances and Deposits | -46 | -463 |
Deferred revenues and allowances | -250 | 2,055 |
Net cash used in operating activities | 56,351 | 30,678 |
Cash flows from investing activities | ||
Purchase of property and equipment | -9,602 | -14,272 |
Proceeds from sale of property and equipment | 35 | 4 |
Net cash used in investing activities | -9,567 | -14,268 |
Cash flows from financing activities | ||
Borrowings under lines of credit | 63,041 | 53,146 |
Payments on lines of credit | -117,400 | -71,350 |
Proceeds from stock issued under employee benefit plans | 342 | 486 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 100 | 106 |
Other | -131 | -332 |
Net cash provided by financing activities | -54,048 | -17,944 |
Net change in cash and cash equivalents | -7,264 | -1,534 |
Cash and cash equivalents | ||
Beginning of period | 12,223 | 5,727 |
End of period | $4,959 | $4,193 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||
Apr. 30, 2015 | ||||||
Accounting Policies [Abstract] | ||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||
Business. Conn’s is a leading specialty retailer that offers a broad selection of quality, branded durable consumer goods and related services in addition to a proprietary credit solution for its core credit constrained consumers. We operate an integrated and scalable business through our retail stores and website. Our complementary product offerings include furniture and mattresses, home appliances, consumer electronics and home office products from leading global brands across a wide range of price points. Our credit offering provides financing solutions to a large, underserved population of credit constrained consumers who typically have limited banking options. | ||||||
In October 2014, we announced that our Board of Directors authorized management to explore a full range of strategic alternatives to enhance value for stockholders, including, but not limited to, a sale of the Company, separating its retail and credit businesses or slowing store openings and returning capital to investors. The Company and its advisors have conducted a thorough review of strategic alternatives, including alternatives not identified in the October announcement. In March 2015, after appropriate diligence and consideration, the Board of Directors authorized management to actively pursue the sale of all or a portion of the loan portfolio, or other refinancing of our loan portfolio. BofA Merrill Lynch and Stephens Inc. have been retained as our financial advisors to assist with this process, which is currently ongoing as we are engaged in discussions with interested parties. There is no assurance that we will complete a sale of all or a portion of the loan portfolio, and no timetable has been set for completion of this process. The Board of Directors may also determine that a refinancing transaction or no transaction is in the best interests of stockholders. As a result, we have determined that the loan portfolio does not meet the criteria for treatment as an asset held for sale, which would require recording at the lower of cost, net of allowances, or fair value. Because the fair value will be based on the expected return on the loan portfolio over its expected life whereas a significant portion of our allowances are based on expected charge-offs over the next twelve months, the fair value of the loan portfolio could be less than the amount currently recorded. However, certain conditions and variables may result in the fair value of the loan portfolio being greater than the amount currently recorded, including the current loan portfolio at a weighted average contractual annual percentage rate of 21.4% and buyers having the potential to use higher leverage on the portfolio at a lower cost of capital than us. We have not made an adjustment to the customer accounts receivable balance in anticipation of any gain or loss that may occur should a sale of the receivables be completed. | ||||||
We operate two reportable segments: retail and credit. Our retail stores bear the "Conn’s" or "Conn’s HomePlus" name and deliver the same products and services to a common customer group. All of the retail stores follow the same procedures and methods in managing their operations. Our retail business and credit business are operated independently from each other. The credit segment is dedicated to providing short- and medium-term financing for our retail customers. The retail segment is not involved in credit approval decisions. Our management evaluates performance and allocates resources based on the operating results of the retail and credit segments. | ||||||
Basis of Presentation. The accompanying unaudited, condensed consolidated financial statements of Conn’s, Inc. and its wholly-owned subsidiaries have been prepared by management in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature, except as otherwise described herein. The condensed consolidated financial position, results of operations and cash flows for these interim periods are not necessarily indicative of the results that may be expected in future periods. The balance sheet at January 31, 2015 has been derived from the audited financial statements at that date. The financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015, filed with the United States Securities and Exchange Commission (the "SEC") on April 1, 2015. | ||||||
Accounting Policies. The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015. | ||||||
Principles of Consolidation. The consolidated financial statements include the accounts of Conn’s, Inc. and its wholly-owned subsidiaries. Conn’s, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. | ||||||
Fiscal Year. Our fiscal year ends on January 31. References to a fiscal year refer to the calendar year in which the fiscal year ends. | ||||||
Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||
Earnings per Share. Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the potential dilutive effects of any stock options and restricted stock units granted, to the extent not anti-dilutive, which is calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: | ||||||
Three Months Ended | ||||||
April 30, | ||||||
(in thousands) | 2015 | 2014 | ||||
Weighted average common shares outstanding - Basic | 36,365 | 36,134 | ||||
Assumed exercise of stock options | 427 | 621 | ||||
Unvested restricted stock units | 88 | 170 | ||||
Weighted average common shares outstanding - Diluted | 36,880 | 36,925 | ||||
For the three months ended April 30, 2015 and 2014, the weighted average number of stock options and restricted stock units not included in the calculation due to their anti-dilutive effect was 357,000 and 40,000, respectively. | ||||||
Customer accounts receivable and related allowance for doubtful accounts. Customer accounts receivable are originated at the time of sale and delivery of the various products and services. Based on contractual terms, we record the amount of principal and accrued interest on customer receivables that is expected to be collected within the next twelve months in current assets with the remaining balance in long-term assets on the consolidated balance sheet. Customer receivables are considered delinquent if a payment has not been received on the scheduled due date. Accounts that are delinquent more than 209 days as of the end of a month are charged-off against the allowance for doubtful accounts and interest accrued subsequent to the last payment is reversed and charged against the allowance for uncollectible interest. | ||||||
In an effort to mitigate losses on our accounts receivable, we may make loan modifications to a borrower experiencing financial difficulty. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to repossess collateral or exercise legal remedies available to us. We may extend the loan term, refinance or otherwise re-age an account. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings ("TDR" or "Restructured Accounts"). | ||||||
We record an allowance for doubtful accounts, including estimated uncollectible interest, for our non-TDR customer accounts receivable that we expect to charge-off over the next twelve months based on our historical cash collection and net loss experience using a projection of monthly delinquency performance, cash collections and losses. In addition to pre-charge-off cash collections and charge-off information, estimates of post-charge-off recoveries, including cash payments, amounts realized from the repossession of the products financed and payments received under credit insurance policies are also considered. We determine allowances for those accounts that are TDR based on the discounted present value of cash flows expected to be collected over the life of those accounts. The excess of the carrying amount over the discounted cash flow amount is recorded as an allowance for loss on those accounts. | ||||||
Interest income on customer accounts receivable. Interest income is accrued using the interest method for installment contracts and is reflected in finance charges and other. Typically, interest income is accrued until the contract or account is paid off or charged-off. We provide an allowance for estimated uncollectible interest. Interest income on installment contracts with our customers is calculated using the rule of 78s. In order to convert the interest income recognized to the interest method, we have recorded the excess earnings of rule of 78s over the interest method as deferred revenue on our balance sheets. This deferred interest will ultimately be brought into income as the accounts pay off or accounts amortize to the point that interest income under the interest method exceeds that which is being earned under rule of 78s. At April 30, 2015 and January 31, 2015, there was $11.4 million and $11.2 million, respectively, of deferred interest included in deferred revenues and other credits and other long-term liabilities. | ||||||
We offer 12-month no-interest finance programs. If the customer is delinquent in making a scheduled monthly payment or does not repay the principal in full by the end of the no-interest program period (grace periods are provided), the account does not qualify for the no-interest provision and the terms of the account revert back to those of the executed installment contract resulting in interest over the entire term. Interest income is recognized based on our historical experience related to customers that fail to satisfy the requirements of the programs. | ||||||
In October 2014, we began offering 18- and 24-month equal-payment, no-interest finance programs to certain higher credit quality borrowers, which are discounted to their present value at origination, resulting in a reduction in sales and customer receivables, and the discount amount is amortized into finance charges and other revenues over the term of the contract. If a customer is delinquent in making a scheduled monthly payment (grace periods are provided), the account begins accruing interest based on the contract rate from the date of the last payment made, which is a higher rate than the discount rate. | ||||||
We recognize interest income on TDR accounts using the interest income method, which requires reporting interest income equal to the increase in the net carrying amount of the loan attributable to the passage of time. Cash proceeds and other adjustments are applied to the net carrying amount such that it always equals the present value of expected future cash flows. | ||||||
We typically only place accounts in non-accrual status when legally required. Payments received on non-accrual loans will be applied to principal and reduce the amount of the loan. Interest accrual is resumed on those accounts once a legally-mandated settlement arrangement is reached or other payment arrangements are made with the customer. At April 30, 2015 and January 31, 2015, customer receivables carried in non-accrual status were $15.4 million and $13.7 million, respectively. At April 30, 2015 and January 31, 2015, customer receivables that were past due 90 days or more and still accruing interest totaled $84.5 million and $97.1 million, respectively. | ||||||
Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to subjectivity associated with the inputs to fair value measurements as follows: | ||||||
• | Level 1 – Quoted prices available in active markets for identical assets or liabilities | |||||
• | Level 2 – Pricing inputs not quoted in active markets but either directly or indirectly observable | |||||
• | Level 3 – Significant inputs to pricing that have little or no transparency with inputs requiring significant management judgment or estimation. | |||||
The fair value of cash and cash equivalents and accounts payable approximate their carrying amounts because of the short maturity of these instruments. The fair value of customer accounts receivables, determined using a Level 3 discounted cash flow analysis, approximates their carrying amount. The fair value of our revolving credit facility approximates carrying value based on the current borrowing rate for similar types of borrowing arrangements. At April 30, 2015, the fair value of our 7.25% senior notes, which was determined using Level 1 inputs, was $225.0 million as compared to the carrying value of $250.0 million, excluding the impact of the related discount. | ||||||
Stockholders' Rights Plan. On October 6, 2014, we adopted a one-year stockholders' rights plan whereby the Board of Directors of the Company ("Board of Directors") declared a dividend of one right for each outstanding share of the Company's common stock to stockholders of record on October 16, 2014. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of the Company's Series A Junior Participating Preferred Stock at a price of $155.00 per right. The rights are not presently exercisable and remain attached to the shares of common stock until the occurrence of certain triggering events. Subject to certain exceptions, the rights will separate from the shares of common stock and a distribution date will be deemed to occur on the earlier of (i) the tenth business day after a public announcement or filing that a person or group has become a beneficial owner of 10% or more of the Company's outstanding common stock after the adoption of the stockholders’ rights plan, or (ii) the tenth business day (or such later date as the Board of Directors may determine) after the commencement of, or announcement of an intention to commence, a tender or exchange offer that, if consummated, would result in a person or group becoming a beneficial owner of 10% or more of the Company's outstanding common stock. The rights will expire on October 5, 2015, unless exercised, redeemed or exchanged prior to that time. The Board of Directors may terminate the rights plan before the expiration date or extend the expiration date. The rights have no voting or dividend privileges and, unless and until they become exercisable, have no dilutive effect on the earnings of the Company. | ||||||
Related Party Transactions. From time to time, we have engaged Stephens Inc. to act as our financial advisor. Stephens Inc. and its affiliates beneficially own shares of our common stock and one of our board of directors, Douglas H. Martin, is a Senior Managing Director of Stephens Inc. On March 31, 2015, we announced that we had engaged Stephens Inc., as a financial advisor to assist us with the process of pursuing a sale of all or a portion of the loan portfolio, or other refinancing of our loan portfolio. We have agreed to pay Stephens Inc. a success fee in the event we consummate one or more of these transactions. The disinterested members of our board of directors have determined that it is in the Company’s best interest to engage Stephens Inc. in such capacity to assist us in analyzing and advising us with respect to the opportunity. The engagement of Stephens Inc. as financial advisor was approved by the independent members of our board of directors after full disclosure of the conflicts of interests of the related parties in the transaction. Douglas H. Martin did not participate in the approval process. | ||||||
Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2014-09, which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current guidance. Upon adoption of ASU 2014-09, entities are required to recognize revenue using the following comprehensive model: (1) identify contracts with customers, (2) identify the performance obligations in contracts, (3) determine transaction price, (4) allocate the transaction price to the performance obligations, and (5) recognize revenue as each performance obligation is satisfied. ASU 2014-09 is effective for us beginning in the first quarter of fiscal year 2018 and will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. In April 2015, the FASB proposed a one-year deferral of the effective date, with early application permitted as of the original effective date. We are currently assessing the impact the new standard will have on our financial statements. | ||||||
Reclassifications. Certain reclassifications have been made to prior year fiscal year amounts to conform to the presentation in the current fiscal year. On the consolidated statement of operations, delivery, transportation and handling costs is shown separately and was reclassified out of selling, general and administrative expenses. On the consolidated statements of cash flows, tenant improvement allowances received from landlords, changes in other accounts receivables and changes in deferred rents is shown separately and was reclassified out of changes in other assets and accrued expenses. These reclassifications did not impact consolidated operating income, net income, or net cash used in operating activities. |
Supplemental_Disclosure_of_Fin
Supplemental Disclosure of Finance Charges and Other Revenue | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | ||||||||||||||||||||||||
Allowance for doubtful accounts and uncollectible interest for customer receivables | Customer Accounts Receivable | |||||||||||||||||||||||
Customer accounts receivable consisted of the following: | ||||||||||||||||||||||||
Total Outstanding Balance | ||||||||||||||||||||||||
Customer Accounts Receivable | 60 Days Past Due (1) | Re-aged (1) | ||||||||||||||||||||||
(in thousands) | April 30, | January 31, | April 30, | January 31, | April 30, | January 31, | ||||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||||||
Customer accounts receivable | $ | 1,286,652 | $ | 1,277,135 | $ | 96,211 | $ | 112,365 | $ | 82,470 | $ | 94,304 | ||||||||||||
Restructured accounts | 95,590 | 88,672 | 19,685 | 20,722 | 95,590 | 88,672 | ||||||||||||||||||
Total customer portfolio balance | 1,382,242 | 1,365,807 | $ | 115,896 | $ | 133,087 | $ | 178,060 | $ | 182,976 | ||||||||||||||
Allowance for uncollectible accounts | (153,389 | ) | (146,982 | ) | ||||||||||||||||||||
Allowance for short-term, no-interest programs | (16,950 | ) | (17,474 | ) | ||||||||||||||||||||
Total customer accounts receivable, net | 1,211,903 | 1,201,351 | ||||||||||||||||||||||
Short-term portion of customer accounts receivable, net | (653,141 | ) | (643,094 | ) | ||||||||||||||||||||
Long-term portion of customer accounts receivable, net | $ | 558,762 | $ | 558,257 | ||||||||||||||||||||
-1 | Due to the fact that an account can become past due after having been re-aged, accounts could be represented as both past due and re-aged. As of April 30, 2015 and January 31, 2015, the amounts included within both past due and re-aged was $39.4 million and $44.9 million, respectively. As of April 30, 2015 and January 31, 2015, the total customer portfolio balance past due one day or greater was $322.8 million and $316.0 million, respectively. These amounts include the 60 days past due balances shown. | |||||||||||||||||||||||
The following presents the activity in our balance in the allowance for doubtful accounts and uncollectible interest for customer receivables: | ||||||||||||||||||||||||
Three Months Ended April 30, 2015 | Three Months Ended April 30, 2014 | |||||||||||||||||||||||
(in thousands) | Customer | Customer | ||||||||||||||||||||||
Accounts | Restructured | Accounts | Restructured | |||||||||||||||||||||
Receivable | Accounts | Total | Receivable | Accounts | Total | |||||||||||||||||||
Allowance at beginning of period | $ | 118,786 | $ | 28,196 | $ | 146,982 | $ | 54,448 | $ | 17,353 | $ | 71,801 | ||||||||||||
Provision (1) | 43,011 | 12,950 | 55,961 | 23,241 | 3,948 | 27,189 | ||||||||||||||||||
Principal charge-offs (2) | (35,725 | ) | (7,072 | ) | (42,797 | ) | (22,801 | ) | (4,440 | ) | (27,241 | ) | ||||||||||||
Interest charge-offs | (6,598 | ) | (1,306 | ) | (7,904 | ) | (4,033 | ) | (785 | ) | (4,818 | ) | ||||||||||||
Recoveries (2) | 957 | 190 | 1,147 | 5,063 | 986 | 6,049 | ||||||||||||||||||
Allowance at end of period | $ | 120,431 | $ | 32,958 | $ | 153,389 | $ | 55,918 | $ | 17,062 | $ | 72,980 | ||||||||||||
Average total customer portfolio balance | $ | 1,274,281 | $ | 92,985 | $ | 1,367,266 | $ | 1,033,443 | $ | 48,013 | $ | 1,081,456 | ||||||||||||
-1 | Includes provision for uncollectible interest, which is included in finance charges and other revenues. | |||||||||||||||||||||||
-2 | Charge-offs include the principal amount of losses (excluding accrued and unpaid interest), and recoveries include principal collections during the period shown of previously charged-off balances. Net charge-offs are calculated as the net of principal charge-offs and recoveries. |
Accrual_for_Store_Closures
Accrual for Store Closures | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Restructuring and Related Activities [Abstract] | ||||||||
Accrual for Store Closures | Accrual for Store Closures | |||||||
We have closed or relocated retail locations that did not perform at a level we expect for mature store locations. Certain of the closed or relocated stores had noncancelable lease agreements, resulting in the accrual of the present value of the remaining lease payments and estimated related occupancy obligations, net of estimated sublease income. Adjustments to these projections for changes in estimated marketing times and sublease rates, as well as other revisions, are made to the obligation as further information related to the actual terms and costs become available. | ||||||||
The following table presents detail of the activity in the accrual for store closures: | ||||||||
Three Months Ended | ||||||||
April 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Balance at beginning of period | $ | 2,556 | $ | 4,316 | ||||
Accrual for additional closures | 318 | 1,621 | ||||||
Adjustments | 32 | 133 | ||||||
Cash payments, net of sublease income | (556 | ) | (1,787 | ) | ||||
Balance at end of period | 2,350 | 4,283 | ||||||
Current portion, included in accrued expenses | (741 | ) | (2,079 | ) | ||||
Long-term portion, included in other long-term liabilities | $ | 1,609 | $ | 2,204 | ||||
Debt_and_Letters_of_Credit
Debt and Letters of Credit | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and Letters of Credit | Debt | |||||||
Debt consisted of the following: | ||||||||
(in thousands) | April 30, | January 31, | ||||||
2015 | 2015 | |||||||
Revolving credit facility | $ | 473,753 | $ | 528,112 | ||||
Senior Notes | 250,000 | 250,000 | ||||||
Other debt | 836 | 933 | ||||||
Total debt | 724,589 | 779,045 | ||||||
Less: | ||||||||
Discount on debt | (4,479 | ) | (4,635 | ) | ||||
Current portion of debt | (400 | ) | (395 | ) | ||||
Long-term debt | $ | 719,710 | $ | 774,015 | ||||
Senior Notes. On July 1, 2014, we issued $250.0 million in senior unsecured notes due July 2022 (the "Senior Notes"), bearing interest at 7.25%, pursuant to an indenture dated July 1, 2014 (the "Indenture"), among Conn’s, Inc., its subsidiary guarantors (the "Guarantors") and U.S. Bank National Association, as trustee. The Senior Notes were sold at par, and resulted in net proceeds of $243.4 million, after deducting the initial purchasers’ discounts and commissions and other offering expenses. The net proceeds were used to repay outstanding borrowings under our revolving credit facility. The effective interest rate of the Senior Notes after giving effect to offering fees and debt discount is 7.6%. | ||||||||
The Indenture restricts the Company's and certain of its subsidiaries' ability to: (i) incur indebtedness; (ii) pay dividends or make other distributions in respect of, or repurchase or redeem, our capital stock; (iii) prepay, redeem or repurchase debt that is junior in right of payment to the notes; (iv) make loans and certain investments; (v) sell assets; (vi) incur liens; (vii) enter into transactions with affiliates; and (viii) consolidate, merge or sell all or substantially all of our assets. These covenants are subject to a number of important exceptions and qualifications. During any time when the Senior Notes are rated investment grade by either of Moody's Investors Service, Inc. or Standard & Poor's Ratings Services and no Default (as defined in the Indenture) has occurred and is continuing, many of such covenants will be suspended, and we will cease to be subject to such covenants during such period. | ||||||||
Events of default under the Indenture include customary events, such as a cross-acceleration provision in the event that we default in the payment of other debt due at maturity or upon acceleration for default in an amount exceeding $25.0 million, as well as in the event a judgment is entered against us in excess of $25.0 million that is not discharged, bonded or insured. | ||||||||
The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Guarantors. The only direct or indirect subsidiaries of Conn’s, Inc. that are not Guarantors are minor subsidiaries. There are no restrictions on the ability of any of the Guarantors to transfer funds to Conn’s, Inc. in the form of loans, advances or dividends, except as provided by applicable law. | ||||||||
On April 24, 2015, the SEC declared effective the Company’s registration statement on Form S-4 pursuant to which we exchanged the Senior Notes for an equivalent amount of 7.25% Senior Notes due July 2022 that are registered under the Securities Act of 1933, as amended (the “Exchange Notes”). The exchange offer was completed on June 1, 2015, and all of the outstanding Senior Notes were tendered in exchange for the Exchange Notes. The terms of the Exchange Notes are substantially identical to the Senior Notes. | ||||||||
Revolving Credit Facility. Conn's, Inc. and certain of its subsidiaries (the "Borrowers") amended its asset-based revolving credit facility in connection with the issuance of the Senior Notes. The amendment provides for, among other things, the issuance of the Senior Notes and Indenture as well as related guarantees, upstream distributions from subsidiaries to Conn’s, Inc. (a holding company) for the payment of interest and principal on the Senior Notes and under certain circumstances optional and mandatory prepayment of the Senior Notes. The amendment also allows holders of the Senior Notes to receive payments even though they may be stockholders of the Company. | ||||||||
Our revolving credit facility with a syndicate of banks had capacity of $880.0 million as of April 30, 2015. The revolving credit facility provides funding based on a borrowing base calculation that includes customer accounts receivable and inventory. The amended and restated credit facility bears interest at LIBOR plus a spread ranging from 250 basis points to 325 basis points, based on a leverage ratio (defined as total liabilities to tangible net worth). As of April 30, 2015, the weighted average interest rate on borrowings outstanding under the revolving credit facility was 3.3%. | ||||||||
In addition to the leverage ratio, the revolving credit facility includes a fixed charge coverage requirement, a minimum customer receivables cash recovery percentage requirement and a net capital expenditures limit. The obligations under the revolving credit facility are secured by all assets of the Borrowers. The revolving credit facility restricts the amount of dividends we can pay. We were in compliance with our debt covenants at April 30, 2015. | ||||||||
As of April 30, 2015, we had immediately available borrowing capacity of $356.3 million under our revolving credit facility, net of standby letters of credit issued, for general corporate purposes. We also had $48.8 million that may become available under our revolving credit facility if we grow the balance of eligible customer receivables and inventory balances. We pay fees in the amount of 25 basis points for the additional commitment amount. Our revolving credit facility provides us the ability to utilize letters of credit to secure deductibles under our property and casualty insurance programs, among other acceptable uses. At April 30, 2015, we had outstanding letters of credit of $1.1 million under this facility. |
Contingencies
Contingencies | 3 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
Securities Class Action Litigation. We and three of our current and former executive officers are defendants in a consolidated securities class action lawsuit pending in the Southern District of Texas, In re Conn’s Inc. Securities Litigation, Cause No. 14-CV-00548 (the “Consolidated Securities Action”). The plaintiffs in the Consolidated Securities Action allege that the defendants made false and misleading statements and/or failed to disclose material adverse facts about our business, operations, and prospects. They allege violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seek to certify a class of all persons and entities that purchased or otherwise acquired Conn’s common stock and/or call options, or sold/wrote Conn’s put options between April 3, 2013, and December 9, 2014. The complaint does not specify the amount of damages sought. | |
The defendants have filed a motion to dismiss all of these claims. Defendants filed this motion on December 15, 2014, and supplemented this motion in April 2015, after the plaintiffs filed an amended complaint that extended the class period from August 31, 2014, to December 9, 2014. Defendants’ motion (including the supplement to this motion) is fully briefed and pending with the Court. | |
The defendants intend to vigorously defend against all of these claims. It is not possible at this time to predict the timing or outcome of any this litigation. | |
Derivative Litigation. On December 1, 2014, an alleged shareholder filed, purportedly on behalf of the Company, a derivative shareholder lawsuit against us and certain of our current and former directors and executive officers in the United States District Court for the Southern District of Texas captioned Robert Hack, derivatively on behalf of Conn’s, Inc., v. Theodore M. Wright, Bob L. Martin, Jon E.M. Jacoby, Kelly M. Malson, Douglas H. Martin, David Schofman, Scott L. Thompson, Brian Taylor and Michael J. Poppe and Conn’s, Inc., Case No. 4:14-cv-03442 (the “Original Derivative Action”). The complaint asserts claims for breach of fiduciary duty, unjust enrichment, gross mismanagement, and insider trading based on substantially similar factual allegations as those asserted in the Consolidated Securities Action. The plaintiff seeks unspecified damages against these persons and does not request any damages from us. The court has approved a stipulation among the parties to stay the action pending resolution of the motion to dismiss in the Consolidated Securities Action. | |
Another derivative action was filed on January 27, 2015, captioned, Richard A. Dohn v. Wright, et al., Cause No. 2015-04405, filed in the 281st District Court, Harris County, Texas. This action makes substantially similar allegations to the Original Derivative Action against the same defendants. The parties have entered into an agreed stay pending resolution of the motion to dismiss in the Consolidated Securities Action. | |
On February 25, 2015, a third derivative action was filed in the United States District Court for the Southern District of Texas, captioned 95250 Canada LTEE, derivatively on Behalf of Conn’s, Inc. v. Wright et al., Cause No. 4:15-cv-00521. This action makes substantially similar allegations to the Original Derivative Action. On March 30, 2015, the plaintiffs in this action and the Original Derivative Action filed a joint motion to consolidate these two derivative actions and continue the stay. That motion is currently pending. | |
None of the plaintiffs in any of the derivative actions made a demand on our Board of Directors prior to filing their respective lawsuits. The defendants in the derivative actions intend to vigorously defend against these claims. | |
Regulatory Matters. We are continuing to cooperate with the SEC’s voluntary request for information dated November 25, 2014, from the Fort Worth Regional Office of the SEC, which generally relates to our underwriting policies and bad debt provisions. The investigation is a non-public, fact-finding inquiry, and the request states that it should not be construed as an indication by the SEC or its staff that any violations of law have occurred. | |
In addition, we are involved in other routine litigation and claims incidental to our business from time to time which, individually or in the aggregate are not expected to have a material adverse effect on our financial position, results of operations or cash flows. As required, we accrue estimates of the probable costs for the resolution of these matters. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. However, the results of these proceedings cannot be predicted with certainty, and changes in facts and circumstances could impact our estimate of reserves for litigation. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Reporting | Segment Reporting | |||||||||||||||||||||||
Financial information by segment is presented in the following tables: | ||||||||||||||||||||||||
Three Months Ended April 30, 2015 | Three Months Ended April 30, 2014 | |||||||||||||||||||||||
(in thousands) | Retail | Credit | Total | Retail | Credit | Total | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Furniture and mattress | $ | 89,502 | $ | — | $ | 89,502 | $ | 80,892 | $ | — | $ | 80,892 | ||||||||||||
Home appliance | 84,102 | — | 84,102 | 77,115 | — | 77,115 | ||||||||||||||||||
Consumer electronic | 71,430 | — | 71,430 | 66,443 | — | 66,443 | ||||||||||||||||||
Home office | 21,985 | — | 21,985 | 23,936 | — | 23,936 | ||||||||||||||||||
Other | 4,607 | — | 4,607 | 5,834 | — | 5,834 | ||||||||||||||||||
Product sales | 271,626 | — | 271,626 | 254,220 | — | 254,220 | ||||||||||||||||||
Repair service agreement commissions | 23,796 | — | 23,796 | 20,254 | — | 20,254 | ||||||||||||||||||
Service revenues | 3,057 | — | 3,057 | 3,155 | — | 3,155 | ||||||||||||||||||
Total net sales | 298,479 | — | 298,479 | 277,629 | — | 277,629 | ||||||||||||||||||
Finance charges and other revenues | 149 | 66,448 | 66,597 | 466 | 57,353 | 57,819 | ||||||||||||||||||
Total revenues | 298,628 | 66,448 | 365,076 | 278,095 | 57,353 | 335,448 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 173,472 | — | 173,472 | 160,782 | — | 160,782 | ||||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,312 | — | 1,312 | 1,419 | — | 1,419 | ||||||||||||||||||
Delivery, transportation and handling costs | 12,349 | — | 12,349 | 12,163 | — | 12,163 | ||||||||||||||||||
Selling, general and administrative expenses (1) | 68,227 | 27,448 | 95,675 | 64,167 | 23,874 | 88,041 | ||||||||||||||||||
Provision for bad debts | 69 | 47,474 | 47,543 | 44 | 22,214 | 22,258 | ||||||||||||||||||
Charges and credits | 619 | — | 619 | 1,754 | — | 1,754 | ||||||||||||||||||
Total costs and expense | 256,048 | 74,922 | 330,970 | 240,329 | 46,088 | 286,417 | ||||||||||||||||||
Operating income (loss) | 42,580 | (8,474 | ) | 34,106 | 37,766 | 11,265 | 49,031 | |||||||||||||||||
Interest expense | — | 9,428 | 9,428 | — | 4,724 | 4,724 | ||||||||||||||||||
Income (loss) before income taxes | $ | 42,580 | $ | (17,902 | ) | $ | 24,678 | $ | 37,766 | $ | 6,541 | $ | 44,307 | |||||||||||
-1 | Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment that benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. The amount of overhead allocated to each segment was $3.5 million and $2.9 million for the three months ended April 30, 2015 and 2014, respectively. The amount of reimbursement made to the retail segment by the credit segment was $8.5 million and $6.7 million for the three months ended April 30, 2015 and 2014, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||
Apr. 30, 2015 | ||||||
Accounting Policies [Abstract] | ||||||
Related Party Transactions Disclosure [Text Block] | Related Party Transactions. From time to time, we have engaged Stephens Inc. to act as our financial advisor. Stephens Inc. and its affiliates beneficially own shares of our common stock and one of our board of directors, Douglas H. Martin, is a Senior Managing Director of Stephens Inc. On March 31, 2015, we announced that we had engaged Stephens Inc., as a financial advisor to assist us with the process of pursuing a sale of all or a portion of the loan portfolio, or other refinancing of our loan portfolio. We have agreed to pay Stephens Inc. a success fee in the event we consummate one or more of these transactions. The disinterested members of our board of directors have determined that it is in the Company’s best interest to engage Stephens Inc. in such capacity to assist us in analyzing and advising us with respect to the opportunity. The engagement of Stephens Inc. as financial advisor was approved by the independent members of our board of directors after full disclosure of the conflicts of interests of the related parties in the transaction. Douglas H. Martin did not participate in the approval process. | |||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2014-09, which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current guidance. Upon adoption of ASU 2014-09, entities are required to recognize revenue using the following comprehensive model: (1) identify contracts with customers, (2) identify the performance obligations in contracts, (3) determine transaction price, (4) allocate the transaction price to the performance obligations, and (5) recognize revenue as each performance obligation is satisfied. ASU 2014-09 is effective for us beginning in the first quarter of fiscal year 2018 and will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. In April 2015, the FASB proposed a one-year deferral of the effective date, with early application permitted as of the original effective date. We are currently assessing the impact the new standard will have on our financial statements. | |||||
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation. The accompanying unaudited, condensed consolidated financial statements of Conn’s, Inc. and its wholly-owned subsidiaries have been prepared by management in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature, except as otherwise described herein. The condensed consolidated financial position, results of operations and cash flows for these interim periods are not necessarily indicative of the results that may be expected in future periods. The balance sheet at January 31, 2015 has been derived from the audited financial statements at that date. The financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015, filed with the United States Securities and Exchange Commission (the "SEC") on April 1, 2015. | |||||
Accounting Policies. The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015. | ||||||
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of Conn’s, Inc. and its wholly-owned subsidiaries. Conn’s, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. | |||||
Fiscal Year. Our fiscal year ends on January 31. References to a fiscal year refer to the calendar year in which the fiscal year ends. | ||||||
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||
Earnings per Share | Earnings per Share. Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the potential dilutive effects of any stock options and restricted stock units granted, to the extent not anti-dilutive, which is calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: | |||||
Three Months Ended | ||||||
April 30, | ||||||
(in thousands) | 2015 | 2014 | ||||
Weighted average common shares outstanding - Basic | 36,365 | 36,134 | ||||
Assumed exercise of stock options | 427 | 621 | ||||
Unvested restricted stock units | 88 | 170 | ||||
Weighted average common shares outstanding - Diluted | 36,880 | 36,925 | ||||
For the three months ended April 30, 2015 and 2014, the weighted average number of stock options and restricted stock units not included in the calculation due to their anti-dilutive effect was 357,000 and 40,000, respectively. | ||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to subjectivity associated with the inputs to fair value measurements as follows: | |||||
• | Level 1 – Quoted prices available in active markets for identical assets or liabilities | |||||
• | Level 2 – Pricing inputs not quoted in active markets but either directly or indirectly observable | |||||
• | Level 3 – Significant inputs to pricing that have little or no transparency with inputs requiring significant management judgment or estimation. | |||||
The fair value of cash and cash equivalents and accounts payable approximate their carrying amounts because of the short maturity of these instruments. The fair value of customer accounts receivables, determined using a Level 3 discounted cash flow analysis, approximates their carrying amount. The fair value of our revolving credit facility approximates carrying value based on the current borrowing rate for similar types of borrowing arrangements. At April 30, 2015, the fair value of our 7.25% senior notes, which was determined using Level 1 inputs, was $225.0 million as compared to the carrying value of $250.0 million, excluding the impact of the related discount. | ||||||
Reclassifications [Text Block] | Reclassifications. Certain reclassifications have been made to prior year fiscal year amounts to conform to the presentation in the current fiscal year. On the consolidated statement of operations, delivery, transportation and handling costs is shown separately and was reclassified out of selling, general and administrative expenses. On the consolidated statements of cash flows, tenant improvement allowances received from landlords, changes in other accounts receivables and changes in deferred rents is shown separately and was reclassified out of changes in other assets and accrued expenses. These reclassifications did not impact consolidated operating income, net income, or net cash used in operating activities. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||
Apr. 30, 2015 | ||||||
Accounting Policies [Abstract] | ||||||
Shares outstanding for the earnings per share calculations | Earnings per Share. Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the potential dilutive effects of any stock options and restricted stock units granted, to the extent not anti-dilutive, which is calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: | |||||
Three Months Ended | ||||||
April 30, | ||||||
(in thousands) | 2015 | 2014 | ||||
Weighted average common shares outstanding - Basic | 36,365 | 36,134 | ||||
Assumed exercise of stock options | 427 | 621 | ||||
Unvested restricted stock units | 88 | 170 | ||||
Weighted average common shares outstanding - Diluted | 36,880 | 36,925 | ||||
Supplemental_Disclosure_of_Fin1
Supplemental Disclosure of Finance Charges and Other Revenue (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | ||||||||
Supplemental Disclosure of Finance Charges and Other Revenue [Text Block] | ||||||||
Finance charges and other revenues consisted of the following: | ||||||||
Three Months Ended | ||||||||
April 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Interest income and fees | $ | 55,419 | $ | 46,490 | ||||
Insurance commissions | 11,029 | 10,863 | ||||||
Other revenues | 149 | 466 | ||||||
$ | 66,597 | $ | 57,819 | |||||
Interest income and fees and insurance commissions are derived from the credit segment operations, whereas other income is derived from the retail segment operations. For the three months ended April 30, 2015 and 2014, interest income and fees was reduced by provisions for uncollectible interest of $8.5 million and $5.4 million, respectively. For the three months ended April 30, 2015 and 2014, the amount included in interest income and fees related to TDR accounts was $3.2 million and $1.3 million, respectively. |
Supplemental_Disclosure_of_Cus
Supplemental Disclosure of Customer Receivables (Tables) | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Allowance for doubtful accounts and uncollectible interest for customer receivables | Customer Accounts Receivable | |||||||||||||||||||||||
Customer accounts receivable consisted of the following: | ||||||||||||||||||||||||
Total Outstanding Balance | ||||||||||||||||||||||||
Customer Accounts Receivable | 60 Days Past Due (1) | Re-aged (1) | ||||||||||||||||||||||
(in thousands) | April 30, | January 31, | April 30, | January 31, | April 30, | January 31, | ||||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||||||
Customer accounts receivable | $ | 1,286,652 | $ | 1,277,135 | $ | 96,211 | $ | 112,365 | $ | 82,470 | $ | 94,304 | ||||||||||||
Restructured accounts | 95,590 | 88,672 | 19,685 | 20,722 | 95,590 | 88,672 | ||||||||||||||||||
Total customer portfolio balance | 1,382,242 | 1,365,807 | $ | 115,896 | $ | 133,087 | $ | 178,060 | $ | 182,976 | ||||||||||||||
Allowance for uncollectible accounts | (153,389 | ) | (146,982 | ) | ||||||||||||||||||||
Allowance for short-term, no-interest programs | (16,950 | ) | (17,474 | ) | ||||||||||||||||||||
Total customer accounts receivable, net | 1,211,903 | 1,201,351 | ||||||||||||||||||||||
Short-term portion of customer accounts receivable, net | (653,141 | ) | (643,094 | ) | ||||||||||||||||||||
Long-term portion of customer accounts receivable, net | $ | 558,762 | $ | 558,257 | ||||||||||||||||||||
-1 | Due to the fact that an account can become past due after having been re-aged, accounts could be represented as both past due and re-aged. As of April 30, 2015 and January 31, 2015, the amounts included within both past due and re-aged was $39.4 million and $44.9 million, respectively. As of April 30, 2015 and January 31, 2015, the total customer portfolio balance past due one day or greater was $322.8 million and $316.0 million, respectively. These amounts include the 60 days past due balances shown. | |||||||||||||||||||||||
The following presents the activity in our balance in the allowance for doubtful accounts and uncollectible interest for customer receivables: | ||||||||||||||||||||||||
Three Months Ended April 30, 2015 | Three Months Ended April 30, 2014 | |||||||||||||||||||||||
(in thousands) | Customer | Customer | ||||||||||||||||||||||
Accounts | Restructured | Accounts | Restructured | |||||||||||||||||||||
Receivable | Accounts | Total | Receivable | Accounts | Total | |||||||||||||||||||
Allowance at beginning of period | $ | 118,786 | $ | 28,196 | $ | 146,982 | $ | 54,448 | $ | 17,353 | $ | 71,801 | ||||||||||||
Provision (1) | 43,011 | 12,950 | 55,961 | 23,241 | 3,948 | 27,189 | ||||||||||||||||||
Principal charge-offs (2) | (35,725 | ) | (7,072 | ) | (42,797 | ) | (22,801 | ) | (4,440 | ) | (27,241 | ) | ||||||||||||
Interest charge-offs | (6,598 | ) | (1,306 | ) | (7,904 | ) | (4,033 | ) | (785 | ) | (4,818 | ) | ||||||||||||
Recoveries (2) | 957 | 190 | 1,147 | 5,063 | 986 | 6,049 | ||||||||||||||||||
Allowance at end of period | $ | 120,431 | $ | 32,958 | $ | 153,389 | $ | 55,918 | $ | 17,062 | $ | 72,980 | ||||||||||||
Average total customer portfolio balance | $ | 1,274,281 | $ | 92,985 | $ | 1,367,266 | $ | 1,033,443 | $ | 48,013 | $ | 1,081,456 | ||||||||||||
-1 | Includes provision for uncollectible interest, which is included in finance charges and other revenues. | |||||||||||||||||||||||
-2 | Charge-offs include the principal amount of losses (excluding accrued and unpaid interest), and recoveries include principal collections during the period shown of previously charged-off balances. Net charge-offs are calculated as the net of principal charge-offs and recoveries. |
Accrual_for_Store_Closures_Tab
Accrual for Store Closures (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Restructuring and Related Activities [Abstract] | ||||||||
Activity in accrual for store closures | : | |||||||
Three Months Ended | ||||||||
April 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Balance at beginning of period | $ | 2,556 | $ | 4,316 | ||||
Accrual for additional closures | 318 | 1,621 | ||||||
Adjustments | 32 | 133 | ||||||
Cash payments, net of sublease income | (556 | ) | (1,787 | ) | ||||
Balance at end of period | 2,350 | 4,283 | ||||||
Current portion, included in accrued expenses | (741 | ) | (2,079 | ) | ||||
Long-term portion, included in other long-term liabilities | $ | 1,609 | $ | 2,204 | ||||
Debt_and_Letters_of_Credit_Tab
Debt and Letters of Credit (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long term debt | ebt consisted of the following: | |||||||
(in thousands) | April 30, | January 31, | ||||||
2015 | 2015 | |||||||
Revolving credit facility | $ | 473,753 | $ | 528,112 | ||||
Senior Notes | 250,000 | 250,000 | ||||||
Other debt | 836 | 933 | ||||||
Total debt | 724,589 | 779,045 | ||||||
Less: | ||||||||
Discount on debt | (4,479 | ) | (4,635 | ) | ||||
Current portion of debt | (400 | ) | (395 | ) | ||||
Long-term debt | $ | 719,710 | $ | 774,015 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Financial information by segment | Financial information by segment is presented in the following tables: | |||||||||||||||||||||||
Three Months Ended April 30, 2015 | Three Months Ended April 30, 2014 | |||||||||||||||||||||||
(in thousands) | Retail | Credit | Total | Retail | Credit | Total | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Furniture and mattress | $ | 89,502 | $ | — | $ | 89,502 | $ | 80,892 | $ | — | $ | 80,892 | ||||||||||||
Home appliance | 84,102 | — | 84,102 | 77,115 | — | 77,115 | ||||||||||||||||||
Consumer electronic | 71,430 | — | 71,430 | 66,443 | — | 66,443 | ||||||||||||||||||
Home office | 21,985 | — | 21,985 | 23,936 | — | 23,936 | ||||||||||||||||||
Other | 4,607 | — | 4,607 | 5,834 | — | 5,834 | ||||||||||||||||||
Product sales | 271,626 | — | 271,626 | 254,220 | — | 254,220 | ||||||||||||||||||
Repair service agreement commissions | 23,796 | — | 23,796 | 20,254 | — | 20,254 | ||||||||||||||||||
Service revenues | 3,057 | — | 3,057 | 3,155 | — | 3,155 | ||||||||||||||||||
Total net sales | 298,479 | — | 298,479 | 277,629 | — | 277,629 | ||||||||||||||||||
Finance charges and other revenues | 149 | 66,448 | 66,597 | 466 | 57,353 | 57,819 | ||||||||||||||||||
Total revenues | 298,628 | 66,448 | 365,076 | 278,095 | 57,353 | 335,448 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 173,472 | — | 173,472 | 160,782 | — | 160,782 | ||||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,312 | — | 1,312 | 1,419 | — | 1,419 | ||||||||||||||||||
Delivery, transportation and handling costs | 12,349 | — | 12,349 | 12,163 | — | 12,163 | ||||||||||||||||||
Selling, general and administrative expenses (1) | 68,227 | 27,448 | 95,675 | 64,167 | 23,874 | 88,041 | ||||||||||||||||||
Provision for bad debts | 69 | 47,474 | 47,543 | 44 | 22,214 | 22,258 | ||||||||||||||||||
Charges and credits | 619 | — | 619 | 1,754 | — | 1,754 | ||||||||||||||||||
Total costs and expense | 256,048 | 74,922 | 330,970 | 240,329 | 46,088 | 286,417 | ||||||||||||||||||
Operating income (loss) | 42,580 | (8,474 | ) | 34,106 | 37,766 | 11,265 | 49,031 | |||||||||||||||||
Interest expense | — | 9,428 | 9,428 | — | 4,724 | 4,724 | ||||||||||||||||||
Income (loss) before income taxes | $ | 42,580 | $ | (17,902 | ) | $ | 24,678 | $ | 37,766 | $ | 6,541 | $ | 44,307 | |||||||||||
-1 | Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment that benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. The amount of overhead allocated to each segment was $3.5 million and $2.9 million for the three months ended April 30, 2015 and 2014, respectively. The amount of reimbursement made to the retail segment by the credit segment was $8.5 million and $6.7 million for the three months ended April 30, 2015 and 2014, respectively. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | Oct. 06, 2014 | Jul. 01, 2014 | |
segment | |||||
Accounting Policies [Abstract] | |||||
Weighted average contractual annual percentage rate of customer receivables portfolio | 21.40% | ||||
Schedule of Earnings Per Share [Line Items] | |||||
Number of Operating Segments | 2 | ||||
Long-term Debt, Gross | $724,589,000 | $779,045,000 | |||
Shares outstanding for earnings (loss) per share calculations [Abstract] | |||||
Weighted average common shares outstanding - Basic (in shares) | 36,365,000 | 36,134,000 | |||
Weighted average common shares outstanding - Diluted (in shares) | 36,880,000 | 36,925,000 | |||
Weighted average number of options not included in the calculation of the dilutive effect of stock options and restricted stock units (in shares) | 357,000 | 40,000 | |||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Stockholders' Rights Plan | |||||
Stockholders' Rights Plan Period | 1 | ||||
Interest Income on Customer Accounts Receivable [Abstract] | |||||
Deferred Revenue | 11,400,000 | 11,200,000 | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | 15,400,000 | 13,700,000 | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 84,500,000 | 97,100,000 | |||
Stock Options [Member] | |||||
Shares outstanding for earnings (loss) per share calculations [Abstract] | |||||
Common shares attributable to stock options and restricted stock units (in shares) | 427,000 | 621,000 | |||
Restricted Stock Units [Member] | |||||
Shares outstanding for earnings (loss) per share calculations [Abstract] | |||||
Common shares attributable to stock options and restricted stock units (in shares) | 88,000 | 170,000 | |||
Stockholders' Rights Plan [Member] | |||||
Stockholders' Rights Plan | |||||
Class of Warrant or Right, Triggering Events, Beneficial Owner Percentage | 10.00% | ||||
Stockholders' Rights Plan [Member] | Series A Junior Participating Preferred Stock [Member] | |||||
Stockholders' Rights Plan | |||||
Class of Warrant or Right, Eligible Purchase Ratio | 0.001 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 155 | ||||
Senior Notes [Member] | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||||
Long-term Debt, Gross | $250,000,000 | $250,000,000 |
Charges_and_Credits_Details
Charges and Credits (Details) (USD $) | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | |||||||
Charges and Credits [Abstract] | |||||||||
Schedule of Charges and Credits [Table Text Block] | Charges and Credits | ||||||||
Charges and credits consisted of the following: | |||||||||
Three Months Ended | |||||||||
April 30, | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Store and facility closure and relocation costs | $ | 425 | $ | 1,754 | |||||
Legal and professional fees related to the exploration of strategic alternatives and | 194 | — | |||||||
securities-related litigation | |||||||||
$ | 619 | $ | 1,754 | ||||||
Store closing and relocation costs | $425 | $1,754 | |||||||
Legal Fees | 194 | 0 | |||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | $619 | $1,754 |
Supplemental_Disclosure_of_Fin2
Supplemental Disclosure of Finance Charges and Other Revenue (Details) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Summary of the classification of the amounts as Finance charges and other [Abstract] | ||
Interest income and fees on customer receivables | $55,419,000 | $46,490,000 |
Fees and Commissions | 11,029,000 | 10,863,000 |
Other | 149,000 | 466,000 |
Finance charges and other | 66,597,000 | 57,819,000 |
Provisions for uncollectible interest | 8,500,000 | 5,400,000 |
Interest income and fees on customer receivables related to TDR accounts | $3,200,000 | $1,300,000 |
Supplemental_Disclosure_of_Cus1
Supplemental Disclosure of Customer Receivables (Details) (USD $) | 3 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | |
Total Outstanding Balance | |||
Customer Accounts Receivable | $1,382,242,000 | $1,365,807,000 | |
60 Days Past Due | 115,896,000 | 133,087,000 | |
Reaged | 178,060,000 | 182,976,000 | |
Allowance for uncollectible accounts related to the credit portfolio | -153,389,000 | -72,980,000 | |
Allowances for promotional credit programs | -16,950,000 | -17,474,000 | |
Accounts Receivable, Net | 1,211,903,000 | 1,201,351,000 | |
Short-term portion of customer accounts receivable, net | -653,141,000 | -643,094,000 | |
Long-term customer accounts receivable, net | 558,762,000 | 558,257,000 | |
Amounts included within past due and reaged accounts | 39,400,000 | 44,900,000 | |
Total amount of customer receivables past due one day or greater | 322,800,000 | 316,000,000 | |
Number of days past due | 60 days | ||
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | |||
Allowance at beginning of period | -146,982,000 | -71,801,000 | |
Provision | 55,961,000 | 27,189,000 | |
Principal charge-offs | 42,797,000 | 27,241,000 | |
Interest charge-offs | 7,904,000 | 4,818,000 | |
Recoveries | 1,147,000 | 6,049,000 | |
Allowance at end of period | -153,389,000 | -72,980,000 | |
Average Total Customer Portfolio Balance | 1,367,266,000 | 1,081,456,000 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 15,400,000 | 13,700,000 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 84,500,000 | 97,100,000 | |
Customer Accounts Receivable [Member] | |||
Total Outstanding Balance | |||
Customer Accounts Receivable | 1,286,652,000 | 1,277,135,000 | |
60 Days Past Due | 96,211,000 | 112,365,000 | |
Reaged | 82,470,000 | 94,304,000 | |
Allowance for uncollectible accounts related to the credit portfolio | -120,431,000 | -55,918,000 | |
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | |||
Allowance at beginning of period | -118,786,000 | -54,448,000 | |
Provision | 43,011,000 | 23,241,000 | |
Principal charge-offs | 35,725,000 | 22,801,000 | |
Interest charge-offs | 6,598,000 | 4,033,000 | |
Recoveries | 957,000 | 5,063,000 | |
Allowance at end of period | -120,431,000 | -55,918,000 | |
Average Total Customer Portfolio Balance | 1,274,281,000 | 1,033,443,000 | |
Restructured Accounts [Member] | |||
Total Outstanding Balance | |||
Customer Accounts Receivable | 95,590,000 | 88,672,000 | |
60 Days Past Due | 19,685,000 | 20,722,000 | |
Reaged | 95,590,000 | 88,672,000 | |
Allowance for uncollectible accounts related to the credit portfolio | -32,958,000 | -17,062,000 | |
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | |||
Allowance at beginning of period | -28,196,000 | -17,353,000 | |
Provision | 12,950,000 | 3,948,000 | |
Principal charge-offs | 7,072,000 | 4,440,000 | |
Interest charge-offs | 1,306,000 | 785,000 | |
Recoveries | 190,000 | 986,000 | |
Allowance at end of period | -32,958,000 | -17,062,000 | |
Average Total Customer Portfolio Balance | $92,985,000 | $48,013,000 |
Accrual_for_Store_Closures_Det
Accrual for Store Closures (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | $619 | $1,754 |
Detail of activity in the accrual for store closures [Abstract] | ||
Balance at beginning of period | 2,556 | 4,316 |
Accrual for closures | 318 | 1,621 |
Change in estimate | 32 | 133 |
Cash payments | -556 | -1,787 |
Balance at end of period | 2,350 | 4,283 |
Balance sheet presentation [Abstract] | ||
Accrued expenses | -741 | -2,079 |
Other long-term liabilities | 1,609 | 2,204 |
Restructuring Reserve, Total | $2,350 | $4,283 |
Debt_and_Letters_of_Credit_Det
Debt and Letters of Credit (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Nov. 25, 2013 | Jul. 01, 2014 | Jan. 31, 2015 | |
Long-term debt [Abstract] | |||||
Long-term Debt, Gross | $724,589,000 | $779,045,000 | |||
Debt discount | -4,479,000 | -4,635,000 | |||
Less current portion of debt | -400,000 | -395,000 | |||
Long-term debt | 719,710,000 | 774,015,000 | |||
Variable interest spread at LIBOR under credit facility | 0.25% | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Debt, Weighted Average Interest Rate | 3.30% | ||||
Asset-Based Revolving Credit Facility, Unused Capacity, Commitment Fee Percentage | 2500.00% | ||||
Interest expense | 9,428,000 | 4,724,000 | |||
Income before income taxes | 24,678,000 | 44,307,000 | |||
Minimum [Member] | |||||
Long-term debt [Abstract] | |||||
Variable interest spread at LIBOR under credit facility | 2.50% | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||
Maximum [Member] | |||||
Long-term debt [Abstract] | |||||
Variable interest spread at LIBOR under credit facility | 3.25% | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||
Asset-based Revolving Credit Facility [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term Debt, Gross | 473,753,000 | 528,112,000 | |||
Maximum capacity extended under credit facility | 880,000,000 | ||||
Debt instrument, description of variable rate basis | LIBOR | ||||
Amount available under asset based revolving credit facility | 356,300,000 | ||||
Amount available under asset based revolving credit facility based on balances | 48,800,000 | ||||
Outstanding letters of credit | 1,100,000 | ||||
Senior Notes [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term Debt, Gross | 250,000,000 | 250,000,000 | |||
Amount of notes issued | 250,000,000 | ||||
Interest rate on notes (in hundredths) | 7.25% | ||||
Proceeds from issuance of senior notes, net of issuance costs | 243,400,000 | ||||
Effective interest rate | 7.60% | ||||
Events of default, acceleration for default, minimum amount | 25,000,000 | ||||
Events of default, judgment, minimum amount that is not discharged, bonded, or insured | 25,000,000 | ||||
Other Long Term Debt [Member] | |||||
Long-term debt [Abstract] | |||||
Long-term Debt, Gross | $836,000 | $933,000 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | |
Revenues [Abstract] | |||
Product sales | $271,626,000 | $254,220,000 | |
Repair service agreement commissions | 23,796,000 | 20,254,000 | |
Service revenues | 3,057,000 | 3,155,000 | |
Total net sales | 298,479,000 | 277,629,000 | |
Finance charges and other | 66,597,000 | 57,819,000 | |
Revenues | 365,076,000 | 335,448,000 | |
Cost and expenses | |||
Cost of goods sold, including warehousing and occupancy costs | 173,472,000 | 160,782,000 | |
Cost of service parts sold, including warehousing and occupancy costs | 1,312,000 | 1,419,000 | |
Shipping, Handling and Transportation Costs | 12,349,000 | 12,163,000 | |
Selling, general and administrative expense | 95,675,000 | 88,041,000 | |
Provision for bad debts | 47,543,000 | 22,258,000 | |
Charges and credits | 619,000 | 1,754,000 | |
Total cost and expenses | 330,970,000 | 286,417,000 | |
Operating income | 34,106,000 | 49,031,000 | |
Interest expense | 9,428,000 | 4,724,000 | |
Income before income taxes | 24,678,000 | 44,307,000 | |
Assets | 1,612,672,000 | 1,647,322,000 | |
Estimated annual rate of reimbursement (in hundredths) | 2.50% | ||
Allocation of overhead by operating segments | 3,500,000 | 2,900,000 | |
Amount of reimbursement made by operating segments | 8,500,000 | 6,700,000 | |
Retail [Member] | |||
Revenues [Abstract] | |||
Product sales | 271,626,000 | 254,220,000 | |
Repair service agreement commissions | 23,796,000 | 20,254,000 | |
Service revenues | 3,057,000 | 3,155,000 | |
Total net sales | 298,479,000 | 277,629,000 | |
Finance charges and other | 149,000 | 466,000 | |
Revenues | 298,628,000 | 278,095,000 | |
Cost and expenses | |||
Cost of goods sold, including warehousing and occupancy costs | 173,472,000 | 160,782,000 | |
Cost of service parts sold, including warehousing and occupancy costs | 1,312,000 | 1,419,000 | |
Shipping, Handling and Transportation Costs | 12,349,000 | 12,163,000 | |
Selling, general and administrative expense | 68,227,000 | 64,167,000 | |
Provision for bad debts | 69,000 | 44,000 | |
Charges and credits | 619,000 | 1,754,000 | |
Total cost and expenses | 256,048,000 | 240,329,000 | |
Operating income | 42,580,000 | 37,766,000 | |
Interest expense | 0 | 0 | |
Income before income taxes | 42,580,000 | 37,766,000 | |
Credit [Member] | |||
Revenues [Abstract] | |||
Product sales | 0 | 0 | |
Repair service agreement commissions | 0 | 0 | |
Service revenues | 0 | 0 | |
Total net sales | 0 | 0 | |
Finance charges and other | 66,448,000 | 57,353,000 | |
Revenues | 66,448,000 | 57,353,000 | |
Cost and expenses | |||
Cost of goods sold, including warehousing and occupancy costs | 0 | 0 | |
Cost of service parts sold, including warehousing and occupancy costs | 0 | 0 | |
Shipping, Handling and Transportation Costs | 0 | 0 | |
Selling, general and administrative expense | 27,448,000 | 23,874,000 | |
Provision for bad debts | 47,474,000 | 22,214,000 | |
Charges and credits | 0 | 0 | |
Total cost and expenses | 74,922,000 | 46,088,000 | |
Operating income | -8,474,000 | 11,265,000 | |
Interest expense | 9,428,000 | 4,724,000 | |
Income before income taxes | -17,902,000 | 6,541,000 | |
Furniture and Mattress [Member] | |||
Revenues [Abstract] | |||
Product sales | 89,502,000 | 80,892,000 | |
Furniture and Mattress [Member] | Retail [Member] | |||
Revenues [Abstract] | |||
Product sales | 89,502,000 | 80,892,000 | |
Furniture and Mattress [Member] | Credit [Member] | |||
Revenues [Abstract] | |||
Product sales | 0 | 0 | |
Home Appliance [Member] | |||
Revenues [Abstract] | |||
Product sales | 84,102,000 | 77,115,000 | |
Home Appliance [Member] | Retail [Member] | |||
Revenues [Abstract] | |||
Product sales | 84,102,000 | 77,115,000 | |
Home Appliance [Member] | Credit [Member] | |||
Revenues [Abstract] | |||
Product sales | 0 | 0 | |
Consumer Electronics [Member] | |||
Revenues [Abstract] | |||
Product sales | 71,430,000 | 66,443,000 | |
Consumer Electronics [Member] | Retail [Member] | |||
Revenues [Abstract] | |||
Product sales | 71,430,000 | 66,443,000 | |
Consumer Electronics [Member] | Credit [Member] | |||
Revenues [Abstract] | |||
Product sales | 0 | 0 | |
Home Office [Member] | |||
Revenues [Abstract] | |||
Product sales | 21,985,000 | 23,936,000 | |
Home Office [Member] | Retail [Member] | |||
Revenues [Abstract] | |||
Product sales | 21,985,000 | 23,936,000 | |
Home Office [Member] | Credit [Member] | |||
Revenues [Abstract] | |||
Product sales | 0 | 0 | |
Other Products [Member] | |||
Revenues [Abstract] | |||
Product sales | 4,607,000 | 5,834,000 | |
Other Products [Member] | Retail [Member] | |||
Revenues [Abstract] | |||
Product sales | 4,607,000 | 5,834,000 | |
Other Products [Member] | Credit [Member] | |||
Revenues [Abstract] | |||
Product sales | $0 | $0 |