Conn's (CONN) Misses Q4 EPS Views

March 31, 2015 6:11 AM

Conn's (NASDAQ: CONN) reported Q4 EPS of $0.42, $0.22 worse than the analyst estimate of $0.64. Revenue for the quarter came in at $426.7 million versus the consensus estimate of $416.1 million.

Comps rose 1.3 percent.

Recent Developments and Operational Changes

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. After appropriate diligence and consideration, the Board of Directors has authorized management to actively pursue the sale of all or a portion of the loan portfolio, or other refinancing of our loan portfolio. We have engaged BofA Merrill Lynch and Stephens Inc., as financial advisors, to assist with this process.

There is no assurance that we will complete a sale of all or a portion of the loan portfolio, or other refinancing, and no timetable has been set for completion of this process. The Board of Directors may also determine that no transaction is in the best interests of shareholders. We do not intend to comment further regarding the process, or any specific transaction, until such time as the Board of Directors deems disclosure is appropriate or necessary.

Regardless of the outcome of pursuing a sale of all or a portion of the loan portfolio, or other refinancing of our loan portfolio, we continue with plans to open 15 to 18 stores in fiscal 2016 and execution of our other business strategies.

Additionally, the Board of Directors continues to search for additional senior leadership. For our Credit Risk Officer position, who will report to the Chief Operating Officer and will provide periodic reporting to the Credit Risk and Compliance Committee of the Board of Directors, we have an accepted offer from a candidate who is expected to join the Company in late April.

For earnings history and earnings-related data on Conn's (CONN) click here.


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