Conn’s Announces Authorization of $150 Million Share Repurchase Program
December 15 2021 - 6:00AM
Conn’s, Inc. (NASDAQ: CONN) (“Conn’s” or the
“Company”), a specialty retailer of furniture and
mattresses, home appliances, consumer electronics and home office
products, and provider of consumer credit, today announced its
Board of Directors has authorized a $150 million share repurchase
program for the Company’s outstanding stock. The authorization to
repurchase expires on December 14, 2022.
Chandra Holt, Conn’s Chief Executive Officer,
commented, “The Board’s decision to repurchase our common stock
reflects the positive momentum underway across our business, our
strong balance sheet and the confidence we have in our future. The
$150 million share repurchase program is the largest in Conn’s
history and represents approximately 30% of our current market
capitalization. We are committed to creating value for our
shareholders by continuing to prioritize capital allocation
initiatives that support our growth strategies, maintaining
flexibility to pursue inorganic opportunities, and returning excess
capital to shareholders through our share repurchase program.”
Under the repurchase program, the Company may
purchase shares of its common stock through open market
transactions, privately negotiated transactions, block purchases or
otherwise in accordance with applicable federal securities laws,
including Rule 10b-18 of the Securities Exchange Act of 1934, as
amended and pursuant to any trading plan that may be adopted in
accordance with Rule 10b5-1 of the Securities Exchange Act of 1934,
as amended. The timing and amount of any repurchases under this
program will be determined by the Company’s management at its
discretion based on a variety of factors, including the market
price of our common stock, corporate considerations, general market
and economic conditions, and legal requirements. The program does
not obligate the Company to acquire any particular amount of stock,
and the program may be discontinued or suspended at any time at the
Company’s discretion. The Company anticipates funding for this
program to come from available corporate funds, including cash on
hand and future cash flow, as well as from drawing on its revolving
credit facility.
About Conn’s, Inc.
Conn’s is a specialty retailer currently
operating 150+ retail locations in Alabama, Arizona, Colorado,
Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North
Carolina, Oklahoma, South Carolina, Tennessee, Texas and
Virginia.
The Company’s primary product categories
include:
- Furniture and
mattress, including furniture and related accessories for the
living room, dining room and bedroom, as well as both traditional
and specialty mattresses;
- Home appliance,
including refrigerators, freezers, washers, dryers, dishwashers and
ranges;
- Consumer
electronics, including LED, OLED, QLED, 4K Ultra HD, and 8K
televisions, gaming products, next generation video game consoles
and home theater and portable audio equipment; and
- Home office,
including computers, printers and accessories.
Additionally, Conn’s offers a variety of
products on a seasonal basis. Unlike many of its competitors,
Conn’s provides flexible in-house credit options for its customers
in addition to third-party financing programs and third-party
lease-to-own payment plans.
This press release contains forward-looking
statements within the meaning of the federal securities laws,
including but not limited to, the Private Securities Litigation
Reform Act of 1995, that involve risks and uncertainties. Such
forward-looking statements include information concerning our
future financial performance, business strategy, plans, goals and
objectives. Statements containing the words “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“project,” “should,” “predict,” “will,” “potential,” or the
negative of such terms or other similar expressions are generally
forward-looking in nature and not historical facts. Such
forward-looking statements are based on our current expectations.
We can give no assurance that such statements will prove to be
correct, and actual results may differ materially. A wide variety
of potential risks, uncertainties, and other factors could
materially affect our ability to achieve the results either
expressed or implied by our forward-looking statements, including,
but not limited to: general economic conditions impacting our
customers or potential customers; our ability to execute periodic
securitizations of future originated customer loans on favorable
terms; our ability to continue existing customer financing programs
or to offer new customer financing programs; changes in the
delinquency status of our credit portfolio; unfavorable
developments in ongoing litigation; increased regulatory oversight;
higher than anticipated net charge-offs in the credit portfolio;
the success of our planned opening of new stores; technological and
market developments and sales trends for our major product
offerings; our ability to manage effectively the selection of our
major product offerings; our ability to protect against
cyber-attacks or data security breaches and to protect the
integrity and security of individually identifiable data of our
customers and employees; our ability to fund our operations,
capital expenditures, debt repayment and expansion from cash flows
from operations, borrowings from our revolving credit facility, and
proceeds from accessing debt or equity markets; the effects of
epidemics or pandemics, including the COVID-19 outbreak; and other
risks detailed in Part I, Item 1A, Risk Factors, in our Annual
Report on Form 10-K for the fiscal year ended January 31, 2021 and
other reports filed with the Securities and Exchange Commission. If
one or more of these or other risks or uncertainties materialize
(or the consequences of such a development changes), or should our
underlying assumptions prove incorrect, actual outcomes may vary
materially from those reflected in our forward-looking statements.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. We disclaim any intention or obligation to update
publicly or revise such statements, whether as a result of new
information, future events or otherwise, or to provide periodic
updates or guidance. All forward-looking statements attributable to
us, or to persons acting on our behalf, are expressly qualified in
their entirety by these cautionary statements.
CONN-G
S.M. Berger & Company
Andrew Berger (216) 464-6400
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