Upcoming AWS Coverage on GameStop Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 14, 2016 / Active Wall St. announces its post-earnings coverage on Conn's, Inc. (NASDAQ: CONN). The Company released its third quarter fiscal 2017 earnings results on December 06, 2016. The specialty retailer of furniture and mattresses, home appliances, consumer electronics, and home office products, and provider of consumer credit's earnings and revenue declined compared to the past year, yet its earnings numbers came in above market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Conn's competitors within the Electronics Stores space, GameStop Corp. (NYSE: GME), reported on November 22, 2016, its sales and earnings for the third quarter ended October 29, 2016. AWS will be initiating a research report on GameStop in the coming days.

Today, AWS is promoting its earnings coverage on CONN; touching on GME. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CONN

http://www.activewallst.com/registration-3/?symbol=GME

Earnings Reviewed

For the three months ended on October 31 2016, Conn's reported net loss of $3.8 million, or $0.12 loss per diluted share, compared to a net loss of $2.4 million, or $0.07 loss per diluted share, for the prior year's same quarter. On an adjusted basis, the company's net loss for the reported quarter was $2.5 million, or $0.08 adjusted loss per diluted share, compared to adjusted net earnings for Q3 FY16 of $0.6 million, or $0.02 adjusted earnings per diluted share. The company's earnings results were above analysts' estimates of a loss of $0.19 per share.

For Q3 FY17, Conn's total revenue declined 4.7% on a y-o-y basis to $376.8 million, and also came in below analysts' projection of $392.8 million.

Segment Results

During Q3 FY17, Conn's Retail Segment generated total revenues of $308.4 million, down 14.7 million, or 4.5% from the year ago same period, primarily as a result of the decline in same store sales partially offset by new store openings. For Q3 FY17, retail segment's operating income was $33.9 million, and adjusted retail segment's operating income was $35.9 million after excluding net charges of $2.0 million, primarily associated with impairments from disposals, legal, and professional fees related to its securities-related litigation, charges for severance, and transition costs due to changes in its executive management team.

For Q3 FY17, Conn's Credit Segment reported revenues of $68.4 million, down 5.2% on a y-o-y basis. The company stated that the decline in revenue was due to lower credit insurance commissions as a result of higher claim volumes in Louisiana after the floods and lower average rates in new states. Conn's noted that the yield rate of 15.0%, 80 basis points lower than a year ago, also offset by growth in the average balance of the customer receivable portfolio of 3.9%. As of October 31, 2016, Conn's total customer portfolio balance was $1.5 billion, higher by 2.2% from October 31, 2015. Provision for bad debts for Q3 FY17 was $51.3 million, down $6.8 million from Q3 FY16.

Store Update

During Q3 FY17, Conn's opened one new Conn's HomePlus® store in North Carolina, bringing the total store count to 113. During FY17, the company has opened ten new stores with no additional openings planned for the remainder of the fiscal year. For FY18, Conn's has committed to opening only three new locations.

Liquidity and Capital Resources

As of October 31, 2016, Conn's had $146.0 million of immediately available borrowing capacity under its $810 million revolving credit facility, with an additional $658.7 million that could become available upon increases in eligible inventory and customer receivable balances under the borrowing base. The Company also had $59.1 million of unrestricted cash available for use.

Outlook and Guidance

For Q4 FY17, Conn's is expecting retail gross margin to be in the range of 37.0% and 37.5% of total net sales. The company is provisioning for bad debts between 16.75% and 17.75% of the average total customer portfolio balance (annualized). The company's credit segment finance charges and other revenues are expected to be in the range of 18.75% and 19.25% of the average total customer portfolio balance (annualized).

Stock Performance

On Tuesday, the stock closed the trading session at $14.00, falling 1.75% from its previous closing price of $14.25. A total volume of 603.89 thousand shares have exchanged hands. Conn's stock price advanced 37.25% in the last month, 52.84% in the past three months, and 74.35% in the previous six months. The stock currently has a market cap of $389.20 million.

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SOURCE: Active Wall Street