Conn's (CONN) Misses Q2 EPS by 2c; Updates on Strategic Initiatives; Approves $75M Common Stock Buyback

September 9, 2015 6:04 AM

Conn's (NASDAQ: CONN) reported Q2 EPS of $0.45, $0.02 worse than the analyst estimate of $0.47. Revenue for the quarter came in at $396.1 million versus the consensus estimate of $396.38 million.

Same store sales for the quarter increased 6.7%, excluding the impact of the Company's decision to exit video game products, digital cameras, and certain tablets.

Conn's announced that, following a thorough exploration of strategic alternatives to enhance shareholder value, it has completed a strategic repositioning of its business and implemented a long-planned leadership succession.

Strategic Initiatives

In separate press releases issued today, Conn’s announced a number of strategic initiatives that collectively represent a major transformation in the business and position the Company to execute its growth strategies while reducing risk and enhancing shareholder value. These actions include the appointment of a new Chief Executive Officer, entering into an agreement to securitize $1.4 billion of retail installment contract receivables, Board authorization to repurchase up to $75.0 million of securities, and termination of the stockholders’ rights plan. The actions represent the culmination of an exploration of strategic alternatives that was initiated by the Company’s Board of Directors in October 2014.

Further details are as follows:

Management and Governance Changes

Securitization Transaction

Repurchase of Securities

Termination of Stockholders’ Rights Plan

Taken together, these actions represent the completion of a carefully considered strategic plan, developed under the leadership of Conn’s Board of Directors, to position the Company for continued future growth and enhanced long-term shareholder value.

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

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