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.
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