Beaumont, Texas - Multiregional CE and appliance chain Conn's
reported a fiscal third-quarter loss of $7.8 million, compared with a year-ago
loss of $19.3 million.
The improvement largely reflects the absence of one-time charges
taken during the same period last year.
Net sales declined 15.2 percent to $136.8 million, and finance
charges and other income decreased 8.6 percent to $33 million for the three
months, ended Oct. 31. Same-store sales fell 16.3 percent, on top of a 9.3
percent decrease during the year-ago quarter.
Conn's said sales were impacted by weak local economies, tighter
customer credit requirements, competitive pricing and capital limitations.
The latter was corrected with yesterday's completion of a
refinancing plan that provides $500 million in capital and extends the
company's loans out to 2013 and 2014.
Broken out by segment, retail losses before income taxes were
$2.2 million for the quarter, compared with a year-ago loss of $19.2 million
that included a goodwill impairment charge of $9.6 million and a $4.1 million
litigation reserve adjustment.
The credit segment's loss before income taxes was $5.6 million
for the quarter, compared with a year-ago loss of $0.1 million, attributed to
reduced interest earnings, higher collection expenses and borrowing costs, and
a $2.9 million write-off of costs of un-completed financing transactions.
Conn's operates 76 retail
locations in Texas, Louisiana and Oklahoma, including 23 stores in the Houston
area, 20 in the Dallas/Fort Worth market, nine in San Antonio, five in Austin,
five in southeast Texas, one in Corpus Christi, four in south Texas, six in
Louisiana, and three in Oklahoma.
Beaumont, Texas - Multiregional CE and appliance chain Conn's reported a fiscal third-quarter loss of $7.8 million, compared with a year-ago loss of $19.3 million.