5 Things Your Boss Needs To Know About Conns Insurance

Second Consecutive Division of Profitability

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Record Crop Drives Accomplished Advance in 11 Quarters

Direct Accommodation Program Auspiciously Implemented in Two Added States

60 Crime Amount Declined 110 Abject Credibility Year-Over-Year; Aboriginal Year-Over-Year Abatement in Four Years

Retail Belvedere Able-bodied Positioned for Planned New Abundance Advance in Budgetary Year 2019

THE WOODLANDS, Texas, Dec. 07, 2017 (GLOBE NEWSWIRE) -- Conn's, Inc. (NASDAQ:CONN), a specialty banker of apparatus and mattresses, home appliances, chump electronics and home appointment products, and provider of chump credit, today appear its banking after-effects for the third division assured October 31, 2017.

“Our third division after-effects authenticate the connected success of Conn’s transformation, as we benefited from a almanac net yield, a accession acclaim spread, and able retail gross margins, admitting the appulse Hurricane Harvey had on abounding of our communities,” declared Norm Miller, Conn’s Chairman and Chief Controlling Officer.

Conn’s accomplished a almanac net crop of 19.8%, and our acclaim advance added to 460 abject credibility in the third division of budgetary year 2018, which was the accomplished akin in the accomplished 11 quarters. During the third quarter, new absolute accommodation programs were auspiciously implemented in Oklahoma and Tennessee. As a result, about 90% of accustomed originations are now at college ante and the boilerplate APR on absolute originations for the ages of October was 27.9%, compared to 21.4% in July of aftermost budgetary year.

During the third division of budgetary year 2018, the company’s 60 crime amount fell year-over-year for the aboriginal time in four years. This represents a cogent milestone, and based on the achievement of originations back June of aftermost budgetary year, we ahead acclaim articulation advantage will abide to advance as newer accounts become a beyond allotment of the portfolio.

“Retail achievement charcoal solid and Conn’s accomplished almanac third division retail gross margins, which helped aftermath accession division of able retail operating income. With convalescent acclaim trends, we are added assured that the investments we accept fabricated in the acclaim belvedere can abutment assisting growth. For budgetary year 2019 we are planning to accessible bristles to nine new stores, all in absolute states which will acquiesce us to advantage our accustomed infrastructure. I am encouraged by the acknowledged transformation underway at Conn’s, and the abiding opportunities to actualize acceptable advance and profitability,” assured Mr. Miller.

Third Division Results

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Net assets for the third division of budgetary year 2018 was $1.6 million, or $0.05 per adulterated share, compared to a net accident for the third division of budgetary year 2017 of $3.8 million, or $0.12 per adulterated share. On a non-GAAP basis, adapted net assets for the third division of budgetary year 2018 was $5.6 million, or $0.18 per adulterated share, which excludes a accident from the write-off of ahead capitalized costs for a software activity that was alone during the third division of budgetary year 2018 accompanying to the accomplishing of a new point of auction arrangement that began in budgetary year 2013 and a accident from concealment of debt accompanying to the aboriginal accretion of our 2016-A Notes. This compares to adapted net accident for the third division of budgetary year 2017 of $2.5 million, or $0.08 per adulterated share, which excludes costs associated with abundance and adeptness closures, impairments from disposals, acknowledged and able fees accompanying to our securities-related action and severance costs due to changes in the controlling administration team. The impairments from disposals included the write-off of leasehold improvements for one abundance we relocated above-mentioned to the end of the advantageous activity of the leasehold improvements and incurred costs for a concluded abundance activity above-mentioned to starting construction.

Retail Articulation Third Division Results

Total retail revenues were $291.9 actor for the third division of budgetary year 2018 compared to $308.4 actor for the third division of budgetary year 2017, a abatement of 5.3%. The abatement in retail acquirement was primarily apprenticed by a abatement in aforementioned abundance sales of 7.0%, partially account by new abundance growth. Sales for the three months assured October 31, 2017 were impacted abnormally by accustomed benevolence in chump spending. For the third division of budgetary year 2018, retail articulation operating assets was $29.6 actor and, on a non-GAAP basis, adapted retail articulation operating assets was $35.4 million, which excludes a accident from the write-off of ahead capitalized costs for a software activity that was alone during the third division of budgetary year 2018 accompanying to the accomplishing of a new point of auction arrangement that began in budgetary year 2013.

The afterward table presents net sales and changes in net sales by category:

The afterward provides a arbitrary of items impacting the achievement of our artefact categories during the third division of budgetary year 2018 compared to the third division of budgetary year 2017:

Credit Articulation Third Division Results

Credit revenues were $81.3 actor for the third division of budgetary year 2018 compared to $68.4 actor for the third division of budgetary year 2017, an access of 18.8%. The access in acclaim acquirement was primarily the aftereffect of added originations of our higher-yielding absolute accommodation product, which contributed to the access in the portfolio crop amount to 19.8% from 15.0%, partially account by the appulse of a 3.7% abatement in the boilerplate antithesis of the chump receivables portfolio. Acclaim revenues for the third division of budgetary year 2018 additionally reflect a abatement in allowance assets primarily due to a abatement in attendant commissions as a aftereffect of college affirmation volumes accompanying to Hurricane Harvey. The absolute chump portfolio antithesis was $1.49 billion at October 31, 2017 compared to $1.53 billion at October 31, 2016, a abatement of 3.0%.

Provision for bad debts was $56.3 actor for the third division of budgetary year 2018 compared to $51.3 actor for the third division of budgetary year 2017, an access of $5.0 million. The best cogent affidavit for the access in the accouterment for bad debts for the three months assured October 31, 2017 compared to the three months assured October 31, 2016 were:

Additional advice on the acclaim portfolio and its achievement may be begin in the Chump Receivable Portfolio Statistics table included aural this columnist absolution and in the Company's Form 10-Q for the division assured October 31, 2017, to be filed with the Antithesis and Exchange Commission.

Store Update

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During budgetary year 2018, the Company has opened three new Conn's HomePlus® stores, two of which were opened during the aboriginal division of budgetary year 2018 in North Carolina, and one of which was opened during the added division of budgetary year 2018 in Virginia, bringing the absolute abundance calculation to 116 in 14 states. The Company does not intend to accessible any added food in budgetary year 2018. The Company currently affairs to accessible amid bristles and nine food in budgetary year 2019, all in absolute states to advantage accustomed infrastructure.

Liquidity and Basic Resources

As of October 31, 2017, the Company had $110.5 actor of anon accessible borrowing accommodation beneath its $750.0 actor revolving acclaim facility, with an added $284.8 actor that may become accessible beneath the Company's revolving acclaim adeptness if the Company grows the antithesis of acceptable chump receivables and acceptable account balances beneath the borrowing base. The Company additionally had $12.7 actor of complete banknote accessible for use.

Outlook and Guidance

The afterward are the Company's expectations for the business for the fourth division of budgetary year 2018:

Conference Alarm Information

The Company will host a appointment alarm on December 7, 2017 at 10 a.m. CT / 11 a.m. ET to altercate its third division budgetary 2018 banking results. Participants can accompany the alarm by dialing 877-754-5302 or 678-894-3020. The appointment alarm will additionally be advertisement accompanying via webcast on a listen-only basis. A articulation to the antithesis release, webcast and third division budgetary 2018 appointment alarm presentation will be accessible at ir.conns.com.

Replay of the telephonic alarm can be accessed through December 14, 2017 by dialing 855-859-2056 or 404-537-3406 and Appointment ID: 5182279. A articulation to the antithesis absolution and webcast will be accessible at ir.conns.com.

About Conn's, Inc.

Conn's is a specialty banker currently operating 116 retail locations in Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. The Company's primary artefact categories include:

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Additionally, Conn's offers a array of articles on a melancholia basis. Unlike abounding of its competitors, Conn's provides adjustable centralized acclaim options for its barter in accession to third-party costs programs and third-party lease-to-own acquittal plans.

This columnist absolution contains advanced statements aural the acceptation of the federal antithesis laws, including but not bound to, the Private Antithesis Action Reform Act of 1995, that absorb risks and uncertainties. Such advanced statements accommodate advice apropos our approaching banking performance, business strategy, plans, goals and objectives. Statements absolute the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," “predict,” “will,” “potential,” or the abrogating of such acceding or added agnate expressions are about advanced in attributes and not absolute facts. Such advanced statements are based on our accustomed expectations. We can accord no affirmation that such statements will prove to be correct, and absolute after-effects may alter materially. A advanced array of abeyant risks, uncertainties, and added factors could materially affect our adeptness to accomplish the after-effects either bidding or adumbrated by our advanced statements including, but not bound to: accustomed bread-and-butter altitude impacting our barter or abeyant customers; our adeptness to assassinate alternate securitizations of approaching originated chump loans on favorable terms; our adeptness to abide absolute chump costs programs or to action new chump costs programs; changes in the crime cachet of our acclaim portfolio; abortive developments in advancing litigation; added authoritative oversight; college than advancing net charge-offs in the acclaim portfolio; the success of our planned aperture of new stores; abstruse and bazaar developments and sales trends for our above artefact offerings; our adeptness to administer finer the alternative of our above artefact offerings; our adeptness to assure adjoin cyber-attacks or abstracts aegis breaches and to assure the candor and aegis of alone identifiable abstracts of our barter and employees; our adeptness to armamentarium our operations, basic expenditures, debt claim and amplification from banknote flows from operations, borrowings from our revolving acclaim facility, and gain from accessing debt or disinterestedness markets; and added risks abundant in Part I, Item 1A, Risk Factors, in our Annual Report on Form 10-K for the budgetary year assured January 31, 2017 and added letters filed with the SEC. If one or added of these or added risks or uncertainties actualize (or the after-effects of such a development changes), or should our basal assumptions prove incorrect, absolute outcomes may alter materially from those reflected in our advanced statements. You are cautioned not to abode disproportionate assurance on these advanced statements, which allege alone as of the date of this columnist release. We abandon any ambition or obligation to amend about or alter such statements, whether as a aftereffect of new information, approaching contest or otherwise, or to accommodate alternate updates or guidance. All advanced statements attributable to us, or to bodies acting on our behalf, are especially able in their absoluteness by these cautionary statements.

/EIN News/ -- CONN-G

S.M. Berger & CompanyAndrew Berger (216) 464-6400

(1) Acclaim array exclude non-scored accounts.

(2) Accounts that become behind afterwards actuality re-aged are included in both the crime and re-aged amounts.

(3) The antithesis of 60 canicule accomplished due as a allotment of absolute chump portfolio antithesis as of October 31, 2017 reflects the appulse of aboriginal time re-ages accompanying to barter aural FEMA-designated Hurricane Harvey adversity areas.

(4) The re-aged antithesis as a allotment of absolute chump portfolio as of October 31, 2017 includes $71.8 actor in aboriginal time re-ages accompanying to barter aural FEMA-designated Hurricane Harvey adversity areas.

Basis for presentation of non-GAAP disclosures:

To supplement the abridged circumscribed banking statements, which are able and presented in accordance with accounting attempt about accustomed in the United States of America ("GAAP"), we accommodate the afterward non-GAAP banking measures: retail articulation adapted operating income, retail articulation adapted operating margin, adapted net assets (loss), and adapted assets (loss) per adulterated share. These non-GAAP banking measures are not meant to be advised as a acting for, or above to, commensurable GAAP measures and should be advised in accession to after-effects presented in accordance with GAAP. They are advised to accommodate added acumen into our operations and the factors and trends affecting the business. Administration believes these non-GAAP banking measures are advantageous to banking account readers because (1) they acquiesce for added accuracy with account to key metrics we use in our banking and operational accommodation authoritative and (2) they are acclimated by some of our institutional investors and the analyst association to advice them assay our operating results.