Conn’s, Inc. Announces Selection of Theodore M. Wright as President and Chief Executive Officer
December 08 2011 - 7:00AM
Business Wire
Conn’s, Inc. (NASDAQ/NM: CONN), a specialty retailer of consumer
electronics, home appliances, furniture, mattresses, computers and
lawn and garden products today announced that the Company’s Board
of Directors has appointed Theodore M. Wright to serve as the
President and Chief Executive Officer of the Company.
Mr. Wright, the Company’s Chairman, has served as Interim
President and Chief Executive Officer since February 28, 2011. Mr.
Wright received stock options and restricted stock units that vest
ratably over the next three years. In addition to the three-year
vesting period, neither the stock options nor the restricted stock
units will vest until the Company’s stock price trades for no less
than $18.00 per share for 20 consecutive trading days, either
before or after the scheduled vesting date. Additionally, the stock
options will expire five years from the date of grant.
Mr. Wright commented, “I am excited about the Company’s progress
to date and my opportunity to contribute to its success over the
long term. I have a strong belief in the business model and the
value it can deliver to our customers and shareholders.”
Mr. Wright has served on the Company’s Board of Directors since
2003, and was a member of the Audit Committee and Compensation
Committee from 2003 to February 2011. He was elected Chairman of
the Board in December 2010. Mr. Wright retired in
2004 as President of Sonic Automotive, Inc., a New York
Stock Exchange listed and Fortune 300 automotive retailer. He also
served that organization as its Chief Financial Officer from April
1997 through April 2003, and served on that company’s board of
directors from 1997 through 2004. Mr. Wright also serves on the
board of directors of Titan Machinery, Inc., and is a member of its
audit and compensation committees. Mr. Wright received a B.A. from
Davidson College.
About Conn’s, Inc.
The Company is a specialty retailer currently operating 70
retail locations in Texas, Louisiana and Oklahoma: with 23 stores
in the Houston area, 17 in the Dallas/Fort Worth Metroplex, eight
in San Antonio, three in Austin, five in Southeast Texas, one in
Corpus Christi, four in South Texas, six in Louisiana and three in
Oklahoma. The Company’s primary product categories include:
- Home appliances, including
refrigerators, freezers, washers, dryers, dishwashers and
ranges;
- Consumer electronics, including LCD,
LED, 3-D, plasma and DLP televisions, camcorders, digital cameras,
Blu-ray and DVD players, video game equipment, portable audio, MP3
players and home theater products;
- Furniture and mattresses, including
furniture for the living room, dining room, bedroom and related
accessories and mattresses; and
- Home office, including desktop,
notebook, netbook and tablet computers, printers and computer
accessories.
Additionally, the Company offers a variety of products on a
seasonal basis, including lawn and garden equipment, and continues
to introduce additional product categories for the home to help
respond to its customers' product needs and to increase same store
sales. Unlike many of its competitors, the Company provides
flexible in-house credit options for its customers, in addition to
third-party financing programs and third-party rent-to-own payment
plans. In the last three years, the Company financed, on average,
approximately 60% of its retail sales under its in-house financing
plan.
This press release contains forward-looking statements that
involve risks and uncertainties. Such forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "will," "expect," "intend," "could,"
"estimate," "should," "anticipate," or "believe," or the negative
thereof or variations thereon or similar terminology. Although the
Company believes that the expectations reflected in such
forward-looking statements will prove to be correct, the Company
can give no assurance that such expectations will prove to be
correct. The actual future performance of the Company could differ
materially from such statements. Factors that could cause or
contribute to such differences include, but are not limited to:
- the Company's growth strategy and plans
regarding opening new stores and entering new markets;
- the Company's intention to update,
relocate or expand existing stores;
- the effect of closing or reducing the
hours of operation of existing stores;
- the Company's estimated capital
expenditures and costs related to the opening of new stores or the
update, relocation or expansion of existing stores;
- the Company's ability to introduce
additional product categories;
- sales trends in the home appliances,
consumer electronics and furniture and mattress industries and the
Company's ability to respond to those trends;
- the pricing actions and promotional
activities of competitors;
- relationships with the Company's key
suppliers;
- delinquency and loss trends in the
receivables portfolio;
- the Company’s ability to offer flexible
financing programs;
- changes in the Company’s collection
practices and policies;
- the Company’s ability to amend, renew
or replace its existing credit facilities before the maturity dates
of the facilities;
- the Company's ability to fund
operations, debt repayment and expansion from cash flow from
operations, borrowings on its revolving lines of credit and
proceeds from securitizations and from accessing debt or equity
markets;
- the ability of the Company to obtain
additional funding for the purpose of funding the receivables
generated by the Company;
- the ability of the Company to maintain
compliance with the covenants in its financing facilities or obtain
amendments or waivers of the covenants to avoid violations or
potential violations of the covenants;
- reduced availability under the
Company’s credit facilities as a result of borrowing base
requirements and the impact on the borrowing base calculation of
changes in the performance or eligibility of the customer
receivables financed by that facility;
- the ability of the financial
institutions providing lending facilities to the Company to fund
their commitments;
- the effect on borrowing costs of
downgrades by rating agencies or changes in laws or regulations on
the Company’s financing providers;
- the cost of any amended, renewed or
replacement credit facilities;
- interest rates;
- general economic and financial market
conditions;
- weather conditions in the Company's
markets;
- the outcome of litigation or government
investigations;
- changes in the Company's stock price;
and
- the actual number of shares of common
stock outstanding.
Further information on these risk factors is included in the
Company's filings with the Securities and Exchange Commission,
including the Company's annual report on Form 10-K filed on April
1, 2011. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Except as required by law, the Company is not
obligated to publicly release any revisions to these
forward-looking statements to reflect the events or circumstances
after the date of this press release or to reflect the occurrence
of unanticipated events.
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