Conn’s, Inc. Announces Results For The Quarter Ended April 30, 2012

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 appliance, consumer electronic and furniture and mattress industries and the Company's ability to respond to those trends;
• changes in product sales or gross margin trends;
• the pricing actions and promotional activities of competitors;
• relationships with the Company's key suppliers;
• changes in outstanding balance, delinquency and loss trends in the receivables portfolio;
• the Company’s ability to offer flexible financing programs;
• changes in the interest and fee yield earned on the receivables portfolio;
• changes in the Company’s underwriting and collection practices and policies;
• changes in the costs to collect the receivables portfolio;
• the Company’s ability to amend, renew or replace its existing debt or other credit arrangements before the maturity dates of such arrangements;
• 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 debt and other credit arrangements or obtain amendments or waivers of the covenants to avoid violations or potential violations of the covenants;
• changes in covenant requirements in future debt and other credit arrangements;
• 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 debt or other credit arrangements;
• interest rates;
• general economic and financial market conditions, including conditions in the capital markets;
• 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 12, 2012. 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.

CONN'S, INC. AND SUBSIDIARIES
CONDENSED, CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
		Three Months Ended
		April 30,
		2012				2011
Revenues
Total net sales		$	166,937			$	157,070
Finance charges and other			33,914				34,912
Total revenues			200,851				191,982
Cost and expenses
Cost of goods sold, including warehousing and occupancy costs			108,443				106,453
Cost of parts sold, including warehousing and occupancy costs			1,550				1,730
Selling, general and administrative expense			59,656				59,445
Provision for bad debts			9,185				9,564
Store closing costs			163				-
Total cost and expenses			178,997				177,192
Operating income			21,854				14,790
Interest expense			3,759				7,556
Other (income) expense, net			(96	)			52
Income before income taxes			18,191				7,182
Provision for income taxes			6,635				2,781
Net income		$	11,556			$	4,401
Earnings per share:
Basic		$	0.36			$	0.14
Diluted		$	0.35			$	0.14
Average common shares outstanding:
Basic			32,195				31,768
Diluted			32,904				31,772

CONN'S, INC. AND SUBSIDIARIES
CONDENSED RETAIL SEGMENT FINANCIAL INFORMATION
(unaudited)
(dollars in thousands)
		Three Months Ended April 30,
		2012				2011
Revenues
Product sales		$	152,115			$	144,279
Repair service agreement commissions			11,392				8,902
Service revenues			3,430				3,889
Total net sales			166,937				157,070
Finance charges and other			241				225
Total revenues			167,178				157,295
Cost and expenses
Cost of goods sold, including warehousing and occupancy costs			108,443				106,453
Cost of parts sold, including warehousing and occupancy costs			1,550				1,730
Selling, general and administrative expense			46,049				44,102
Provision for bad debts			212				143
Store closing costs			163				-
Total cost and expenses			156,417				152,428
Operating income			10,761				4,867
Other (income) expense, net			(96	)			52
Segment income before income taxes		$	10,857			$	4,815
Retail gross margin			33.7	%			30.5	%
Selling, general and administrative expense as percent of revenues			27.5	%			28.0	%
Operating margin			6.4	%			3.1	%
Number of stores, end of period			65				76

CONN'S, INC. AND SUBSIDIARIES
CONDENSED CREDIT SEGMENT FINANCIAL INFORMATION
(unaudited)
(in thousands)
		Three Months Ended April 30,
		2012				2011
Revenues
Finance charges and other		$	33,673			$	34,687
Cost and expenses
Selling, general and administrative expense			13,607				15,343
Provision for bad debts			8,973				9,421
Total cost and expenses			22,580				24,764
Operating income			11,093				9,923
Interest expense			3,759				7,556
Segment income before income taxes		$	7,334			$	2,367
Selling, general and administrative expense as percent of revenues			40.4	%			44.2	%
Operating margin			32.9	%			28.6	%

MANAGED PORTFOLIO STATISTICS
(dollars in thousands, except average outstanding balance per account)
		Three months ended April 30,
		2012				2011
Total accounts			458,493				491,441
Total outstanding balance		$	635,233			$	625,487
Average outstanding balance per account		$	1,385			$	1,273
Weighted average origination credit score of sales financed			615				623
Weighted average credit score of outstanding balances			601				589
Balance 60+ days delinquent		$	46,438			$	44,453
Percent 60+ days delinquent			7.3	%			7.1	%
Percent 60-209 days delinquent			7.3	%			5.5	%
Percent of portfolio re-aged			11.6	%			19.4	%
Weighted average monthly payment rate (QTD)			6.1	%			6.4	%
Net charge-off ratio (YTD annualized)			8.5	%			6.8	%
Percentage of sales generated by payment option:
GE Capital			12.5	%			6.3	%
Conn's Credit (including down payment)			66.9	%			55.0	%
RAC Acceptance (Rent-to-Own)			3.7	%			3.5	%
Total			83.1	%			64.8	%

CONDENSED, CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
		April 30,			January 31,
		2012			2012
Assets
Current assets
Cash and cash equivalents		$	6,730		$	6,265
Customer accounts receivable, net			313,139			316,385
Other accounts receivable, net			35,414			38,715
Inventories			68,890			62,540
Deferred income taxes			16,007			17,111
Prepaid expenses and other assets			15,785			11,542
Total current assets			455,965			452,558
Long-term customer accounts receivable, net			271,984			272,938
Property and equipment, net			40,257			38,484
Non-current deferred income tax asset			9,570			9,754
Other assets, net			10,856			9,564
Total assets		$	788,632		$	783,298
Liabilities and Stockholders' Equity
Current Liabilities
Current portion of long-term debt		$	103,690		$	726
Accounts payable			60,812			44,711
Accrued compensation and related expenses			7,494			7,213
Accrued expenses			22,314			24,030
Other current liabilities			18,547			17,994
Total current liabilities			212,857			94,674
Long-term debt			194,396			320,978
Other long-term liabilities			12,894			14,275
Stockholders' equity			368,485			353,371
Total liabilities and stockholders' equity		$	788,632		$	783,298

CONN-F

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