Exhibit 99.1
Conn's, Inc. Reports Record Sales Results for the Quarter Ended
July 31, 2004
BEAUMONT, Texas--(BUSINESS WIRE)--Aug. 11, 2004--Conn's, Inc.
(NASDAQ/NM:CONN), a specialty retailer of home appliances, consumer
electronics, home office products, bedding and lawn and garden
products, today announced its net sales results for the quarter and
six months ended July 31, 2004.
Net sales for the quarter ended July 31, 2004 increased $16.1
million, or 15.7%, from $102.8 million for the second quarter of
fiscal 2004 to $118.9 million for the second quarter of fiscal 2005.
Same store sales (sales recorded in stores operated for the entirety
of both periods) were up 7.2% for the second quarter. Net sales
represent net product sales, delivery charges, service revenues and
commissions from service maintenance agreement sales. Revenues from
finance charges and other will be reported in the Company's quarterly
conference call on Aug. 30, 2004.
Net sales for the six months ended July 31, 2004 increased $28.0
million, or 13.3%, from $209.4 million for the six months ended July
31, 2003 to $237.4 million for the six months ended July 31, 2004.
Same store sales (sales recorded in stores operated for the entirety
of both periods) were up 5.3% for the same period. Net sales represent
net product sales, delivery charges, service revenues and commissions
from service maintenance agreement sales. Revenues from finance
charges and other will be reported in the Company's quarterly
conference call on Aug. 30, 2004.
Thomas J. Frank, chairman and chief executive officer, stated,
"While we continued to see strong sales performances for the quarter
over a year ago in our primary categories of appliances and air
conditioners (up 8.5%) and electronics (up 16.2%), we also experienced
significant increases in our track (up 30.6%), bedding (up 94.5%) and
lawn and garden (up 41.0%) product categories. We continue to enjoy a
nice blend of increases in our primary business and the specialty
categories that we have elected to emphasize in our sales promotion
programs. The increases in both areas are indicative of the effort
that we have placed on sales execution." The Company defines track
sales as sales of smaller electronic and appliance items and other
"carry out" products that are sold inside a track located within the
interior of each store.
The Company updated its EPS guidance for earnings per diluted
share for the quarter ended July 31, 2004 from a range of $0.26 to
$0.28 to a range of $0.27 to $0.29 per share. For the year ended Jan.
31, 2005, the Company increased its EPS guidance for earnings per
diluted share from a range of $1.21 to $1.25 to a range of $1.23 to
$1.26 per share.
About Conn's, Inc.
The Company is a specialty retailer currently operating 47 retail
locations in Texas and Louisiana. It sells major home appliances,
including refrigerators, freezers, washers, dryers and ranges, and a
variety of consumer electronics, including projection, plasma, LCD and
DLP televisions, camcorders, VCRs, DVD players and home theater
products. The Company also sells home office equipment, lawn and
garden products and bedding, and continues to introduce additional
product categories for the home to help increase same store sales and
to respond to our customers' product needs.
Unlike many of its competitors, the Company provides in-house
credit options for its customers. Historically, it has financed over
56% of retail sales. Customer receivables are financed substantially
through an asset-backed securitization facility, from which the
Company derives servicing fee income and interest income from these
assets. The Company transfers receivables, consisting of retail
installment contracts and revolving accounts extended to its
customers, to a qualifying special purpose entity, or the issuer, in
exchange for cash and subordinated securities represented by
asset-backed and variable funding notes issued to third parties.
This press release contains forward-looking statements that
involve risks and uncertainties. Such forward-looking statements
generally can be identified by the use of forward-looking terminology
such as "may," "will," "expect," "intend," "could," "estimate,"
"should," "anticipate," or "believe," or the negative thereof or
variations thereon or similar terminology. Although the Company
believes that the expectations reflected in such forward-looking
statements will prove to be correct, the Company can give no assurance
that such expectations will prove to have been correct. The actual
future performance of the Company could differ materially from such
statements. Factors that could cause or contribute to such differences
include, but are not limited to: the Company's growth strategy and
plans regarding opening new stores and entering new markets; the
Company's intention to update or expand existing stores; the Company's
estimated capital expenditures and costs related to the opening of new
stores or the update or expansion of existing stores; the Company's
ability to introduce additional product categories; the Company's cash
flow from operations, growth trends and projected sales in the home
appliance and consumer electronics industry and the Company's ability
to capitalize on such growth; relationships with the Company's key
suppliers; the results of the Company's litigation; weather conditions
in the Company's markets; changes in the Company's stock price; and
the actual number of shares of common stock outstanding. Further
information on these risk factors is included in the Company's filings
with the Securities and Exchange Commission, including the Company's
Form 10-K filed on April 16, 2004. 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.
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CONTACT: Conn's, Inc.
Thomas J. Frank, 409-832-1696 Ext. 3218