For the quarterly period ended | Commission File Number 1-34956 |
A Delaware Corporation | 06-1672840 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o |
Class | Outstanding | |
Common stock, $.01 par value per share |
PART I. | FINANCIAL INFORMATION | Page No. | ||
Item 1. | Financial Statements | |||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
PART II. | OTHER INFORMATION | |||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item | ||||
Item |
April 30, | January 31, | |||||||
Assets | 2013 | 2013 | ||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 4,310 | $ | 3,849 | ||||
Customer accounts receivable, net of allowance of $29,736 and $27,617, respectively (includes balance of VIE of $28,553 at January 31, 2013) | 395,085 | 378,050 | ||||||
Other accounts receivable, net of allowance of $55 and $55, respectively | 51,565 | 45,759 | ||||||
Inventories | 88,862 | 73,685 | ||||||
Deferred income taxes | 15,327 | 15,302 | ||||||
Prepaid expenses and other assets (includes balance of VIE of $4,717 at January 31, 2013) | 6,121 | 11,599 | ||||||
Total current assets | 561,270 | 528,244 | ||||||
Long-term portion of customer accounts receivable, net of allowance of $24,402 and $22,866, respectively (includes balance of VIE of $23,641 at January 31, 2013) | 324,213 | 313,011 | ||||||
Property and equipment | 148,649 | 141,449 | ||||||
Less accumulated depreciation | (96,918 | ) | (94,455 | ) | ||||
Property and equipment, net | 51,731 | 46,994 | ||||||
Deferred income taxes | 10,938 | 11,579 | ||||||
Other assets | 9,122 | 10,029 | ||||||
Total assets | $ | 957,274 | $ | 909,857 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities | ||||||||
Current portion of long-term debt (includes balance of VIE of $32,307 at January 31, 2013) | $ | 222 | $ | 32,526 | ||||
Accounts payable | 74,748 | 69,608 | ||||||
Accrued compensation and related expenses | 9,684 | 8,780 | ||||||
Accrued expenses | 23,394 | 20,716 | ||||||
Income taxes payable | 8,612 | 4,618 | ||||||
Deferred revenues and allowances | 15,839 | 14,915 | ||||||
Total current liabilities | 132,499 | 151,163 | ||||||
Long-term debt | 293,773 | 262,531 | ||||||
Other long-term liabilities | 22,572 | 21,713 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Preferred stock ($0.01 par value, 1,000,000 shares authorized; none issued or outstanding) | - | - | ||||||
Common stock ($0.01 par value, 50,000,000 shares authorized; 35,708,628 and 35,192,070 shares issued at April 30, 2013 and January 31, 2013, respectively) | 357 | 352 | ||||||
Additional paid-in capital | 216,152 | 204,372 | ||||||
Accumulated other comprehensive loss | (204 | ) | (223 | ) | ||||
Retained earnings | 292,125 | 269,949 | ||||||
Total stockholders’ equity | 508,430 | 474,450 | ||||||
Total liabilities and stockholders' equity | $ | 957,274 | $ | 909,857 |
Assets | July 31, 2013 | January 31, 2013 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 3,799 | $ | 3,849 | |||
Customer accounts receivable, net of allowance of $34,486 and $27,617, respectively (includes balance of VIE of $28,553 at January 31, 2013) | 428,083 | 378,050 | |||||
Other accounts receivable, net of allowance of $55 and $55, respectively | 38,573 | 45,759 | |||||
Inventories | 90,561 | 73,685 | |||||
Deferred income taxes | 16,910 | 15,302 | |||||
Prepaid expenses and other assets (includes balance of VIE of $4,717 at January 31, 2013) | 13,101 | 11,599 | |||||
Total current assets | 591,027 | 528,244 | |||||
Long-term portion of customer accounts receivable, net of allowance of $28,368 and $22,866, respectively (includes balance of VIE of $23,641 at January 31, 2013) | 352,134 | 313,011 | |||||
Property and equipment | 160,490 | 141,449 | |||||
Less accumulated depreciation | (99,805 | ) | (94,455 | ) | |||
Property and equipment, net | 60,685 | 46,994 | |||||
Deferred income taxes | 10,976 | 11,579 | |||||
Other assets | 8,638 | 10,029 | |||||
Total assets | $ | 1,023,460 | $ | 909,857 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Current portion of long-term debt (includes balance of VIE of $32,307 at January 31, 2013) | $ | 385 | $ | 32,526 | |||
Accounts payable | 81,249 | 69,608 | |||||
Accrued compensation and related expenses | 9,056 | 8,780 | |||||
Accrued expenses | 24,890 | 20,716 | |||||
Income taxes payable | 2,187 | 4,618 | |||||
Deferred revenues and allowances | 15,663 | 14,915 | |||||
Total current liabilities | 133,430 | 151,163 | |||||
Long-term debt | 334,298 | 262,531 | |||||
Other long-term liabilities | 23,512 | 21,713 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity | |||||||
Preferred stock ($0.01 par value, 1,000,000 shares authorized; none issued or outstanding) | — | — | |||||
Common stock ($0.01 par value, 50,000,000 shares authorized; 35,918,695 and 35,192,070 shares issued at July 31, 2013 and January 31, 2013, respectively) | 359 | 352 | |||||
Additional paid-in capital | 220,739 | 204,372 | |||||
Accumulated other comprehensive loss | (165 | ) | (223 | ) | |||
Retained earnings | 311,287 | 269,949 | |||||
Total stockholders’ equity | 532,220 | 474,450 | |||||
Total liabilities and stockholders' equity | $ | 1,023,460 | $ | 909,857 |
Three Months Ended | ||||||||
April 30, | ||||||||
2013 | 2012 | |||||||
Revenues | ||||||||
Product sales | $ | 190,860 | $ | 152,115 | ||||
Repair service agreement commissions | 15,989 | 11,392 | ||||||
Service revenues | 2,599 | 3,430 | ||||||
Total net sales | 209,448 | 166,937 | ||||||
Finance charges and other | 41,615 | 33,914 | ||||||
Total revenues | 251,063 | 200,851 | ||||||
Cost and expenses | ||||||||
Cost of goods sold, including warehousing and occupancy costs | 123,457 | 108,443 | ||||||
Cost of service parts sold, including warehousing and occupancy costs | 1,406 | 1,550 | ||||||
Selling, general and administrative expense | 73,255 | 59,656 | ||||||
Provision for bad debts | 13,937 | 9,185 | ||||||
Charges and credits | - | 163 | ||||||
Total cost and expenses | 212,055 | 178,997 | ||||||
Operating income | 39,008 | 21,854 | ||||||
Interest expense | 3,871 | 3,759 | ||||||
Other income, net | (6 | ) | (96 | ) | ||||
Income before income taxes | 35,143 | 18,191 | ||||||
Provision for income taxes | 12,967 | 6,635 | ||||||
Net income | $ | 22,176 | $ | 11,556 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.63 | $ | 0.36 | ||||
Diluted | $ | 0.61 | $ | 0.35 | ||||
Average common shares outstanding: | ||||||||
Basic | 35,313 | 32,195 | ||||||
Diluted | 36,452 | 32,904 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | |||||||||||||||
Product sales | $ | 203,463 | $ | 156,026 | $ | 394,323 | $ | 308,141 | |||||||
Repair service agreement commissions | 17,166 | 12,355 | 33,155 | 23,747 | |||||||||||
Service revenues | 3,083 | 3,274 | 5,682 | 6,704 | |||||||||||
Total net sales | 223,712 | 171,655 | 433,160 | 338,592 | |||||||||||
Finance charges and other | 46,977 | 35,781 | 88,592 | 69,695 | |||||||||||
Total revenues | 270,689 | 207,436 | 521,752 | 408,287 | |||||||||||
Cost and expenses | |||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 136,040 | 110,910 | 259,497 | 219,353 | |||||||||||
Cost of service parts sold, including warehousing and occupancy costs | 1,318 | 1,441 | 2,724 | 2,991 | |||||||||||
Selling, general and administrative expense | 78,757 | 59,381 | 152,012 | 119,037 | |||||||||||
Provision for bad debts | 21,382 | 12,204 | 35,319 | 21,389 | |||||||||||
Charges and credits | — | 346 | — | 509 | |||||||||||
Total cost and expenses | 237,497 | 184,282 | 449,552 | 363,279 | |||||||||||
Operating income | 33,192 | 23,154 | 72,200 | 45,008 | |||||||||||
Interest expense | 3,135 | 4,874 | 7,006 | 8,633 | |||||||||||
Other income, net | (32 | ) | (6 | ) | (38 | ) | (102 | ) | |||||||
Income before income taxes | 30,089 | 18,286 | 65,232 | 36,477 | |||||||||||
Provision for income taxes | 10,927 | 6,680 | 23,894 | 13,315 | |||||||||||
Net income | $ | 19,162 | $ | 11,606 | $ | 41,338 | $ | 23,162 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.54 | $ | 0.36 | $ | 1.16 | $ | 0.72 | |||||||
Diluted | $ | 0.52 | $ | 0.35 | $ | 1.13 | $ | 0.70 | |||||||
Average common shares outstanding: | |||||||||||||||
Basic | 35,777 | 32,404 | 35,549 | 32,304 | |||||||||||
Diluted | 36,849 | 33,119 | 36,688 | 33,017 |
Three Months Ended | ||||||||
April 30, | ||||||||
2013 | 2012 | |||||||
Net income | $ | 22,176 | $ | 11,556 | ||||
Change in fair value of hedges | 29 | 43 | ||||||
Impact of provision for income taxes on comprehensive income | (10 | ) | (15 | ) | ||||
Comprehensive income | $ | 22,195 | $ | 11,584 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 19,162 | $ | 11,606 | $ | 41,338 | $ | 23,162 | |||||||
Change in fair value of hedges | 61 | (31 | ) | 90 | 12 | ||||||||||
Impact of provision for income taxes on comprehensive income | (22 | ) | 11 | (32 | ) | (4 | ) | ||||||||
Comprehensive income | $ | 19,201 | $ | 11,586 | $ | 41,396 | $ | 23,170 |
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||||
Shares | Amount | Capital | Loss | Earnings | Total | |||||||||||||||||||
Balance at January 31, 2013 | 35,191 | $ | 352 | $ | 204,372 | $ | (223 | ) | $ | 269,949 | $ | 474,450 | ||||||||||||
Exercise of stock options, net of tax | 506 | 5 | 10,761 | - | - | 10,766 | ||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 7 | - | 178 | - | - | 178 | ||||||||||||||||||
Vesting of restricted stock units | 4 | - | - | - | - | - | ||||||||||||||||||
Stock-based compensation | 841 | 841 | ||||||||||||||||||||||
Net income | - | - | - | - | 22,176 | 22,176 | ||||||||||||||||||
Change in fair value of hedges, net of tax of $10 | - | - | - | 19 | - | 19 | ||||||||||||||||||
Balance at April 30, 2013 | 35,708 | $ | 357 | $ | 216,152 | $ | (204 | ) | $ | 292,125 | $ | 508,430 |
Additional | Accumulated Other | |||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||
Shares | Amount | Capital | Loss | Earnings | Total | |||||||||||||||||
Balance at January 31, 2013 | 35,191 | $ | 352 | $ | 204,372 | $ | (223 | ) | $ | 269,949 | $ | 474,450 | ||||||||||
Exercise of stock options, net of tax | 657 | 7 | 14,089 | — | — | 14,096 | ||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 15 | — | 406 | — | — | 406 | ||||||||||||||||
Vesting of restricted stock units | 55 | — | — | — | — | — | ||||||||||||||||
Stock-based compensation | — | — | 1,872 | — | — | 1,872 | ||||||||||||||||
Net income | — | — | — | — | 41,338 | 41,338 | ||||||||||||||||
Change in fair value of hedges, net of tax of $32 | — | — | — | 58 | — | 58 | ||||||||||||||||
Balance at July 31, 2013 | 35,918 | $ | 359 | $ | 220,739 | $ | (165 | ) | $ | 311,287 | $ | 532,220 |
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||||
Shares | Amount | Capital | Loss | Earnings | Total | |||||||||||||||||||
Balance at January 31, 2012 | 32,140 | $ | 321 | $ | 136,006 | $ | (293 | ) | $ | 217,337 | $ | 353,371 | ||||||||||||
Exercise of stock options, net of tax | 223 | 3 | 2,866 | - | - | 2,869 | ||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 6 | - | 63 | - | - | 63 | ||||||||||||||||||
Vesting of restricted stock units | 21 | - | - | - | - | - | ||||||||||||||||||
Stock-based compensation | 598 | 598 | ||||||||||||||||||||||
Net income | - | - | - | - | 11,556 | 11,556 | ||||||||||||||||||
Change in fair value of hedges, net of tax of $15 | - | - | - | 28 | - | 28 | ||||||||||||||||||
Balance at April 30, 2012 | 32,390 | $ | 324 | $ | 139,533 | $ | (265 | ) | $ | 228,893 | $ | 368,485 |
Additional | Accumulated Other | |||||||||||||||||||||
Common Stock | Paid-in | Comprehensive | Retained | |||||||||||||||||||
Shares | Amount | Capital | Loss | Earnings | Total | |||||||||||||||||
Balance at January 31, 2012 | 32,140 | $ | 321 | $ | 136,006 | $ | (293 | ) | $ | 217,337 | $ | 353,371 | ||||||||||
Exercise of stock options, net of tax | 326 | 3 | 4,274 | — | — | 4,277 | ||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 14 | — | 163 | — | — | 163 | ||||||||||||||||
Vesting of restricted stock units | 103 | 1 | — | — | — | 1 | ||||||||||||||||
Stock-based compensation | — | — | 1,285 | — | — | 1,285 | ||||||||||||||||
Net income | — | — | — | — | 23,162 | 23,162 | ||||||||||||||||
Change in fair value of hedges, net of tax of $4 | — | — | — | 8 | — | 8 | ||||||||||||||||
Balance at July 31, 2012 | 32,583 | $ | 325 | $ | 141,728 | $ | (285 | ) | $ | 240,499 | $ | 382,267 |
Three Months Ended | ||||||||
April 30, | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 22,176 | $ | 11,556 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 2,490 | 2,402 | ||||||
Amortization | 1,474 | 739 | ||||||
Provision for bad debts and uncollectible interest | 15,787 | 11,282 | ||||||
Stock-based compensation | 841 | 598 | ||||||
Excess tax benefits from stock-based compensation | (2,592 | ) | (116 | ) | ||||
Store closing costs | - | 163 | ||||||
Provision for deferred income taxes | 617 | 1,272 | ||||||
Gain on sale of property and equipment | (6 | ) | (66 | ) | ||||
Discounts and accretion on promotional credit | - | (103 | ) | |||||
Change in operating assets and liabilities: | ||||||||
Customer accounts receivable | (44,024 | ) | (6,768 | ) | ||||
Other accounts receivable | (5,799 | ) | 3,095 | |||||
Inventories | (15,177 | ) | (6,350 | ) | ||||
Prepaid expenses and other assets | 703 | 500 | ||||||
Accounts payable | 5,141 | 16,100 | ||||||
Accrued expenses | 4,542 | (2,953 | ) | |||||
Income taxes payable | 6,606 | 5,651 | ||||||
Deferred revenues and allowances | 708 | 65 | ||||||
Net cash (used in) provided by operating activities | (6,513 | ) | 37,067 | |||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (7,228 | ) | (4,404 | ) | ||||
Proceeds from sale of property and equipment | 6 | 296 | ||||||
Net cash used in investing activities | (7,222 | ) | (4,108 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings under lines of credit | 87,335 | 33,729 | ||||||
Payments on lines of credit | (56,036 | ) | (160,182 | ) | ||||
Proceeds from issuance of asset-backed notes, net of original issue discount | - | 103,025 | ||||||
Payments on asset-backed notes | (32,513 | ) | - | |||||
Change in restricted cash | 4,717 | (10,042 | ) | |||||
Net proceeds from stock issued under employee benefit plans | 8,352 | 2,932 | ||||||
Excess tax benefits from stock-based compensation | 2,592 | 116 | ||||||
Other | (251 | ) | (2,072 | ) | ||||
Net cash provided by (used in) financing activities | 14,196 | (32,494 | ) | |||||
Net change in cash | 461 | 465 | ||||||
Cash and cash equivalents | ||||||||
Beginning of period | 3,849 | 6,265 | ||||||
End of period | $ | 4,310 | $ | 6,730 |
Six Months Ended July 31, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 41,338 | $ | 23,162 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 5,675 | 4,596 | |||||
Amortization | 2,237 | 2,329 | |||||
Provision for bad debts and uncollectible interest | 39,856 | 25,907 | |||||
Stock-based compensation | 1,872 | 1,285 | |||||
Excess tax benefits from stock-based compensation | (4,548 | ) | (472 | ) | |||
Store closing costs | — | 163 | |||||
Provision for deferred income taxes | (1,005 | ) | 2,692 | ||||
Gain on sale of property and equipment | (38 | ) | (104 | ) | |||
Discounts and accretion on promotional credit | — | (162 | ) | ||||
Change in operating assets and liabilities: | |||||||
Customer accounts receivable | (129,012 | ) | (47,776 | ) | |||
Other accounts receivable | 7,164 | 3,165 | |||||
Inventories | (16,876 | ) | (7,624 | ) | |||
Prepaid expenses and other assets | 170 | 112 | |||||
Accounts payable | 11,640 | 20,597 | |||||
Accrued expenses | 6,392 | (5,997 | ) | ||||
Income taxes payable | (4,329 | ) | 1,359 | ||||
Deferred revenues and allowances | 276 | (766 | ) | ||||
Net cash (used in) provided by operating activities | (39,188 | ) | 22,466 | ||||
Cash flows from investing activities | |||||||
Purchase of property and equipment | (19,310 | ) | (11,217 | ) | |||
Proceeds from sale of property and equipment | 47 | 350 | |||||
Net cash used in investing activities | (19,263 | ) | (10,867 | ) | |||
Cash flows from financing activities | |||||||
Borrowings under lines of credit | 181,306 | 94,745 | |||||
Payments on lines of credit | (109,737 | ) | (176,495 | ) | |||
Proceeds from issuance of asset-backed notes, net of original issue discount | — | 103,025 | |||||
Payments on asset-backed notes | (32,513 | ) | (27,444 | ) | |||
Change in restricted cash | 4,717 | (8,292 | ) | ||||
Net proceeds from stock issued under employee benefit plans | 9,954 | 3,968 | |||||
Excess tax benefits from stock-based compensation | 4,548 | 472 | |||||
Other | 126 | (2,648 | ) | ||||
Net cash provided by (used in) financing activities | 58,401 | (12,669 | ) | ||||
Net decrease in cash and cash equivalents | (50 | ) | (1,070 | ) | |||
Cash and cash equivalents | |||||||
Beginning of period | 3,849 | 6,265 | |||||
End of period | $ | 3,799 | $ | 5,195 |
1. Summary of Significant Accounting Policies |
The Company directed the activities that generated the customer receivables that were transferred to the VIE; |
The Company directed the servicing activities related to the collection of the customer receivables transferred to the VIE; |
The Company absorbed losses incurred by the VIE to the extent of its interest in the VIE before any other investors incurred losses; and |
The Company had the right to receive benefits generated by the VIE after paying the contractual amounts due to the other investors. |
Three Months Ended | ||||||||
April 30, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Weighted average common shares outstanding - Basic | 35,313 | 32,195 | ||||||
Assumed exercise of stock options | 937 | 576 | ||||||
Unvested restricted stock units | 202 | 133 | ||||||
Weighted average common shares outstanding - Diluted | 36,452 | 32,904 |
Three Months Ended July 31, | |||||
(in thousands) | 2013 | 2012 | |||
Weighted average common shares outstanding - Basic | 35,777 | 32,404 | |||
Assumed exercise of stock options | 859 | 611 | |||
Unvested restricted stock units | 213 | 104 | |||
Weighted average common shares outstanding - Diluted | 36,849 | 33,119 |
Six Months Ended July 31, | |||||
(in thousands) | 2013 | 2012 | |||
Weighted average common shares outstanding - Basic | 35,549 | 32,304 | |||
Assumed exercise of stock options | 926 | 596 | |||
Unvested restricted stock units | 213 | 117 | |||
Weighted average common shares outstanding - Diluted | 36,688 | 33,017 |
Total Outstanding Balance | ||||||||||||||||||||||||
Customer Accounts Receivable | 60 Days Past Due (1) | Re-aged (1) | ||||||||||||||||||||||
April 30, | January 31, | April 30, | January 31, | April 30, | January 31, | |||||||||||||||||||
(in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||
Customer accounts receivable | $ | 733,626 | $ | 702,737 | $ | 40,106 | $ | 41,704 | $ | 47,024 | $ | 47,757 | ||||||||||||
Restructured accounts (2) | 39,810 | 38,807 | 11,437 | 11,135 | 39,669 | 38,671 | ||||||||||||||||||
Total receivables managed | $ | 773,436 | $ | 741,544 | $ | 51,543 | $ | 52,839 | $ | 86,693 | $ | 86,428 |
Allowance for uncollectible accounts related to the credit portfolio | (46,162 | ) | (43,911 | ) | ||||
Allowance for promotional credit programs | (7,976 | ) | (6,572 | ) | ||||
Short-term portion of customer accounts receivable, net | (395,085 | ) | (378,050 | ) | ||||
Long-term customer accounts receivable, net | $ | 324,213 | $ | 313,011 |
Total Outstanding Balance | |||||||||||||||||||||||
Customer Accounts Receivable | 60 Days Past Due (1) | Re-aged (1) | |||||||||||||||||||||
(in thousands) | July 31, 2013 | January 31, 2013 | July 31, 2013 | January 31, 2013 | July 31, 2013 | January 31, 2013 | |||||||||||||||||
Customer accounts receivable | $ | 802,747 | $ | 702,737 | $ | 55,604 | $ | 41,704 | $ | 50,520 | $ | 47,757 | |||||||||||
Restructured accounts (2) | 40,324 | 38,807 | 13,554 | 11,135 | 40,176 | 38,671 | |||||||||||||||||
Total receivables managed | $ | 843,071 | $ | 741,544 | $ | 69,158 | $ | 52,839 | $ | 90,696 | $ | 86,428 |
Allowance for uncollectible accounts related to the credit portfolio | (53,524 | ) | (43,911 | ) | |||
Allowance for promotional credit programs | (9,330 | ) | (6,572 | ) | |||
Short-term portion of customer accounts receivable, net | (428,083 | ) | (378,050 | ) | |||
Long-term portion of customer accounts receivable, net | $ | 352,134 | $ | 313,011 |
(1) | Amounts are based on end of period balances. As an account can become past due after having been re-aged, accounts may be presented in both the past due and re-aged columns shown above. The amounts included within both the past due and re-aged columns shown above as of |
(2) | In addition to the amounts included in restructured accounts, there are |
Net Credit | Net Credit | ||||||||||||||||||||||||||||||
Average Balances | Charge-offs (1) | Average Balances | Charge-offs (1) | ||||||||||||||||||||||||||||
Three Months Ended July 31, | Three Months Ended July 31, | Six Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Customer accounts receivable | $ | 766,718 | $ | 609,253 | $ | 10,818 | $ | 8,389 | $ | 741,108 | $ | 600,299 | $ | 19,661 | $ | 15,932 | |||||||||||||||
Restructured accounts | 39,935 | 37,901 | 3,358 | 5,240 | 39,716 | 41,466 | 6,070 | 11,226 | |||||||||||||||||||||||
Total receivables managed | $ | 806,653 | $ | 647,154 | $ | 14,176 | $ | 13,629 | $ | 780,824 | $ | 641,765 | $ | 25,731 | $ | 27,158 |
Net Credit | ||||||||||||||||
Average Balances | Charge-offs (1) | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Customer accounts receivable | $ | 713,700 | $ | 589,969 | $ | 8,843 | $ | 7,576 | ||||||||
Restructured accounts | 39,521 | 44,774 | 2,712 | 5,953 | ||||||||||||
Total receivables managed | $ | 753,221 | $ | 634,743 | $ | 11,555 | $ | 13,529 |
(1) | Charge-offs include the principal amount of losses (excluding accrued and unpaid interest) net of recoveries which include principal collections during the period shown of previously charged-off balances. |
Three Months Ended April 30, 2013 | Three Months Ended April 30, 2012 | |||||||||||||||||||||||
(in thousands) | Customer Accounts Receivable | Restructured Accounts | Total | Customer Accounts Receivable | Restructured Accounts | Total | ||||||||||||||||||
Allowance at beginning of period | $ | 27,702 | $ | 16,209 | $ | 43,911 | $ | 24,518 | $ | 25,386 | $ | 49,904 | ||||||||||||
Provision(1) | 12,505 | 3,282 | 15,787 | 9,448 | 1,834 | 11,282 | ||||||||||||||||||
Principal charge-offs(2) | (9,634 | ) | (2,955 | ) | (12,589 | ) | (8,597 | ) | (6,755 | ) | (15,352 | ) | ||||||||||||
Interest charge-offs | (1,516 | ) | (465 | ) | (1,981 | ) | (1,282 | ) | (1,007 | ) | (2,289 | ) | ||||||||||||
Recoveries(2) | 791 | 243 | 1,034 | 1,021 | 802 | 1,823 | ||||||||||||||||||
Allowance at end of period | $ | 29,848 | $ | 16,314 | $ | 46,162 | $ | 25,108 | $ | 20,260 | $ | 45,368 |
Six Months Ended July 31, 2013 | Six Months Ended July 31, 2012 | ||||||||||||||||||||||
(in thousands) | Customer Accounts Receivable | Restructured Accounts | Total | Customer Accounts Receivable | Restructured Accounts | Total | |||||||||||||||||
Allowance at beginning of period | $ | 27,702 | $ | 16,209 | $ | 43,911 | $ | 24,518 | $ | 25,386 | $ | 49,904 | |||||||||||
Provision(1) | 32,526 | 7,330 | 39,856 | 20,491 | 5,416 | 25,907 | |||||||||||||||||
Principal charge-offs(2) | (21,039 | ) | (6,496 | ) | (27,535 | ) | (17,316 | ) | (12,202 | ) | (29,518 | ) | |||||||||||
Interest charge-offs | (3,447 | ) | (1,064 | ) | (4,511 | ) | (2,726 | ) | (1,921 | ) | (4,647 | ) | |||||||||||
Recoveries(2) | 1,378 | 425 | 1,803 | 1,386 | 974 | 2,360 | |||||||||||||||||
Allowance at end of period | $ | 37,120 | $ | 16,404 | $ | 53,524 | $ | 26,353 | $ | 17,653 | $ | 44,006 |
(1) | Includes provision for uncollectible interest, which is included in finance charges and other. |
(2) | Charge-offs include the principal amount of losses (excluding accrued and unpaid interest), and recoveries include principal collections during the period shown of previously charged-off balances. These amounts represent net charge-offs. |
Three Months Ended | ||||||||
April 30, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Interest income and fees on customer receivables | $ | 33,010 | $ | 28,640 | ||||
Insurance commissions | 8,267 | 5,033 | ||||||
Other | 338 | 241 | ||||||
Finance charges and other | $ | 41,615 | $ | 33,914 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Interest income and fees on customer receivables | $ | 36,397 | $ | 29,817 | $ | 69,407 | $ | 58,457 | |||||||
Insurance commissions | 10,289 | 5,688 | 18,556 | 10,722 | |||||||||||
Other | 291 | 276 | 629 | 516 | |||||||||||
Finance charges and other | $ | 46,977 | $ | 35,781 | $ | 88,592 | $ | 69,695 |
Three Months Ended April 30, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Balance at beginning of period | $ | 5,071 | $ | 8,106 | ||||
Accrual for closures | - | 450 | ||||||
Change in estimate | - | (287 | ) | |||||
Cash payments | (522 | ) | (961 | ) | ||||
Balance at end of period | $ | 4,549 | $ | 7,308 |
April 30, | ||||
Balance sheet presentation: | 2013 | |||
Accrued expenses | $ | 2,691 | ||
Other long-term liabilities | 1,858 | |||
$ | 4,549 |
Six Months Ended July 31, | |||||||
(in thousands) | 2013 | 2012 | |||||
Balance at beginning of period | $ | 5,071 | $ | 8,106 | |||
Accrual for closures | — | 450 | |||||
Change in estimate | — | (287 | ) | ||||
Cash payments | (1,047 | ) | (2,187 | ) | |||
Balance at end of period | $ | 4,024 | $ | 6,082 |
Balance sheet presentation: | July 31, 2013 | ||
Accrued expenses | $ | 2,452 | |
Other long-term liabilities | 1,572 | ||
$ | 4,024 |
6. Debt and Letters of Credit |
April 30, | January 31, | |||||||
(in thousands) | 2013 | 2013 | ||||||
Asset-based revolving credit facility | $ | 293,700 | $ | 262,401 | ||||
Asset-backed notes, net of discount of $205 | - | 32,307 | ||||||
Other long-term debt | 295 | 349 | ||||||
Total debt | 293,995 | 295,057 | ||||||
Less current portion of debt | 222 | 32,526 | ||||||
Long-term debt | $ | 293,773 | $ | 262,531 |
(in thousands) | July 31, 2013 | January 31, 2013 | |||||
Asset-based revolving credit facility | $ | 333,970 | $ | 262,401 | |||
Asset-backed notes, net of discount of $205 | — | 32,307 | |||||
Other long-term debt | 713 | 349 | |||||
Total debt | 334,683 | 295,057 | |||||
Less current portion of debt | 385 | 32,526 | |||||
Long-term debt | $ | 334,298 | $ | 262,531 |
Three Months Ended April 30, 2013 | Three Months Ended April 30, 2012 | |||||||||||||||||||||||
(in thousands) | Retail | Credit | Total | Retail | Credit | Total | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Product sales | $ | 190,860 | $ | - | $ | 190,860 | $ | 152,115 | $ | - | $ | 152,115 | ||||||||||||
Repair service agreement commissions | 15,989 | - | 15,989 | 11,392 | - | 11,392 | ||||||||||||||||||
Service revenues | 2,599 | - | 2,599 | 3,430 | - | 3,430 | ||||||||||||||||||
Total net sales | 209,448 | - | 209,448 | 166,937 | - | 166,937 | ||||||||||||||||||
Finance charges and other | 339 | 41,276 | 41,615 | 241 | 33,673 | 33,914 | ||||||||||||||||||
Total revenues | 209,787 | 41,276 | 251,063 | 167,178 | 33,673 | 200,851 | ||||||||||||||||||
Cost and expenses | ||||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 123,457 | - | 123,457 | 108,443 | - | 108,443 | ||||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,406 | - | 1,406 | 1,550 | - | 1,550 | ||||||||||||||||||
Selling, general and administrative expense (a) | 57,510 | 15,745 | 73,255 | 46,049 | 13,607 | 59,656 | ||||||||||||||||||
Provision for bad debts | 114 | 13,823 | 13,937 | 212 | 8,973 | 9,185 | ||||||||||||||||||
Charges and credits | - | - | - | 163 | - | 163 | ||||||||||||||||||
Total cost and expense | 182,487 | 29,568 | 212,055 | 156,417 | 22,580 | 178,997 | ||||||||||||||||||
Operating income | 27,300 | 11,708 | 39,008 | 10,761 | 11,093 | 21,854 | ||||||||||||||||||
Interest expense | - | 3,871 | 3,871 | - | 3,759 | 3,759 | ||||||||||||||||||
Other income, net | (6 | ) | - | (6 | ) | (96 | ) | - | (96 | ) | ||||||||||||||
Income before income taxes | $ | 27,306 | $ | 7,837 | $ | 35,143 | $ | 10,857 | $ | 7,334 | $ | 18,191 |
Three Months Ended July 31, 2013 | Three Months Ended July 31, 2012 | ||||||||||||||||||||||
(in thousands) | Retail | Credit | Total | Retail | Credit | Total | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Product sales | $ | 203,463 | $ | — | $ | 203,463 | $ | 156,026 | $ | — | $ | 156,026 | |||||||||||
Repair service agreement commissions | 17,166 | — | 17,166 | 12,355 | — | 12,355 | |||||||||||||||||
Service revenues | 3,083 | — | 3,083 | 3,274 | — | 3,274 | |||||||||||||||||
Total net sales | 223,712 | — | 223,712 | 171,655 | — | 171,655 | |||||||||||||||||
Finance charges and other | 290 | 46,687 | 46,977 | 276 | 35,505 | 35,781 | |||||||||||||||||
Total revenues | 224,002 | 46,687 | 270,689 | 171,931 | 35,505 | 207,436 | |||||||||||||||||
Cost and expenses | |||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 136,040 | — | 136,040 | 110,910 | — | 110,910 | |||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,318 | — | 1,318 | 1,441 | — | 1,441 | |||||||||||||||||
Selling, general and administrative expense (a) | 60,910 | 17,847 | 78,757 | 46,508 | 12,873 | 59,381 | |||||||||||||||||
Provision for bad debts | 72 | 21,310 | 21,382 | 189 | 12,015 | 12,204 | |||||||||||||||||
Charges and credits | — | — | — | 346 | — | 346 | |||||||||||||||||
Total cost and expense | 198,340 | 39,157 | 237,497 | 159,394 | 24,888 | 184,282 | |||||||||||||||||
Operating income | 25,662 | 7,530 | 33,192 | 12,537 | 10,617 | 23,154 | |||||||||||||||||
Interest expense | — | 3,135 | 3,135 | — | 4,874 | 4,874 | |||||||||||||||||
Other income, net | (32 | ) | — | (32 | ) | (6 | ) | — | (6 | ) | |||||||||||||
Income before income taxes | $ | 25,694 | $ | 4,395 | $ | 30,089 | $ | 12,543 | $ | 5,743 | $ | 18,286 |
July 31, 2013 | January 31, 2013 | ||||||||||||||||||||||
(in thousands) | Retail | Credit | Total | Retail | Credit | Total | |||||||||||||||||
Total assets | $ | 218,741 | $ | 804,719 | $ | 1,023,460 | $ | 188,609 | $ | 721,248 | $ | 909,857 |
Six Months Ended July 31, 2013 | Six Months Ended July 31, 2012 | ||||||||||||||||||||||
(in thousands) | Retail | Credit | Total | Retail | Credit | Total | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Product sales | $ | 394,323 | $ | — | $ | 394,323 | $ | 308,141 | $ | — | $ | 308,141 | |||||||||||
Repair service agreement commissions | 33,155 | — | 33,155 | 23,747 | — | 23,747 | |||||||||||||||||
Service revenues | 5,682 | — | 5,682 | 6,704 | — | 6,704 | |||||||||||||||||
Total net sales | 433,160 | — | 433,160 | 338,592 | — | 338,592 | |||||||||||||||||
Finance charges and other | 629 | 87,963 | 88,592 | 517 | 69,178 | 69,695 | |||||||||||||||||
Total revenues | 433,789 | 87,963 | 521,752 | 339,109 | 69,178 | 408,287 | |||||||||||||||||
Cost and expenses | |||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 259,497 | — | 259,497 | 219,353 | — | 219,353 | |||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 2,724 | — | 2,724 | 2,991 | — | 2,991 | |||||||||||||||||
Selling, general and administrative expense (a) | 118,420 | 33,592 | 152,012 | 92,557 | 26,480 | 119,037 | |||||||||||||||||
Provision for bad debts | 186 | 35,133 | 35,319 | 401 | 20,988 | 21,389 | |||||||||||||||||
Charges and credits | — | — | — | 509 | — | 509 | |||||||||||||||||
Total cost and expense | 380,827 | 68,725 | 449,552 | 315,811 | 47,468 | 363,279 | |||||||||||||||||
Operating income | 52,962 | 19,238 | 72,200 | 23,298 | 21,710 | 45,008 | |||||||||||||||||
Interest expense | — | 7,006 | 7,006 | — | 8,633 | 8,633 | |||||||||||||||||
Other income, net | (38 | ) | — | (38 | ) | (102 | ) | — | (102 | ) | |||||||||||||
Income before income taxes | $ | 53,000 | $ | 12,232 | $ | 65,232 | $ | 23,400 | $ | 13,077 | $ | 36,477 |
(a) | Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment which benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. The amount of overhead allocated to each segment was |
Home appliance, including refrigerators, freezers, washers, dryers, dishwashers and ranges; |
Furniture and mattress, including furniture and related accessories for the living room, dining room and bedroom, as well as both traditional and specialty mattresses; |
Consumer electronic, including LCD, LED, 3-D and plasma televisions, Blu-ray players, home theater and video game products, camcorders, digital cameras, and portable audio equipment; and |
Home office, including computers, tablets, printers and accessories. |
Remodeling existing stores utilizing the new Conn’s HomePlus format to increase retail square footage and improve our customers shopping experience; |
Expanding and enhancing our product offering of higher-margin furniture and mattresses; |
Focusing on higher-price, higher-margin products to improve operating performance; |
Reviewing our existing store locations to ensure the customer demographics and retail sales opportunity are sufficient to achieve our store performance expectations, and selectively closing or relocating stores to achieve those goals. In this regard, we closed a total of 13 retail locations in fiscal 2012 and 2013, collectively, that did not perform at the level we expect for mature store locations; |
As of April 30, | ||||||||
2013 | 2012 | |||||||
Total outstanding balance | $ | 773,436 | $ | 635,233 | ||||
Weighted average credit score of outstanding balances | 596 | 601 | ||||||
Percent of total outstanding balances represented by balances over 36 months from origination(1) | 0.8 | % | 1.8 | % | ||||
Average outstanding customer balance | $ | 1,588 | $ | 1,385 | ||||
Number of active accounts | 486,988 | 458,493 | ||||||
Account balances 60+ days past due(2) | $ | 51,543 | $ | 46,438 | ||||
Percent of balances 60+ days past due to total outstanding balance | 6.7 | % | 7.3 | % | ||||
Total account balances reaged(2) | $ | 86,693 | $ | 73,737 | ||||
Percent of re-aged balances to total outstanding balance | 11.2 | % | 11.6 | % | ||||
Account balances re-aged more than six months | $ | 19,172 | $ | 27,052 | ||||
Percent of total bad debt allowance to total outstanding customer receivable balance | 6.0 | % | 7.1 | % | ||||
Percent of total outstanding balance represented by promotional receivables | 30.6 | % | 17.7 | % |
As of July 31, | |||||||
2013 | 2012 | ||||||
Total outstanding balance | $ | 843,071 | $ | 661,740 | |||
Weighted average credit score of outstanding balances | 595 | 602 | |||||
Percent of total outstanding balances represented by balances over 36 months from origination(1) | 0.7 | % | 1.4 | % | |||
Average outstanding customer balance | $ | 1,622 | $ | 1,436 | |||
Number of active accounts | 519,867 | 460,675 | |||||
Account balances 60+ days past due(2) | $ | 69,158 | $ | 49,763 | |||
Percent of balances 60+ days past due to total outstanding balance(3) | 8.2 | % | 7.5 | % | |||
Total account balances reaged(2) | $ | 91,067 | $ | 70,969 | |||
Percent of re-aged balances to total outstanding balance | 10.8 | % | 10.7 | % | |||
Account balances re-aged more than six months | $ | 19,891 | $ | 21,475 | |||
Percent of total bad debt allowance to total outstanding customer receivable balance | 6.3 | % | 6.7 | % | |||
Percent of total outstanding balance represented by promotional receivables | 31.9 | % | 21.0 | % |
Three Months Ended | ||||||||
April 30, | ||||||||
2013 | 2012 | |||||||
Total applications processed | 199,045 | 179,907 | ||||||
Weighted average origination credit score of sales financed | 602 | 615 | ||||||
Total applications approved(3) | 50.2 | % | 46.1 | % | ||||
Average down payment | 3.9 | % | 4.5 | % | ||||
Average total outstanding balance | $ | 753,221 | $ | 634,743 | ||||
Bad debt charge-offs (net of recoveries) | $ | 11,555 | $ | 13,529 | ||||
Percent of bad debt charge-offs (net of recoveries) to average outstanding balance, annualized | 6.1 | % | 8.5 | % | ||||
Payment rate (4) | 6.2 | % | 6.1 | % | ||||
Percent of retail sales paid for by: | ||||||||
Third party financing | 11.8 | % | 12.5 | % | ||||
In-house financing, including down payment received | 74.0 | % | 66.9 | % | ||||
Third party rent-to-own options | 3.8 | % | 3.7 | % | ||||
Total | 89.6 | % | 83.1 | % |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Total applications processed(4) | 215,850 | 184,898 | 414,895 | 363,412 | |||||||||||
Weighted average origination credit score of sales financed | 601 | 615 | 601 | 615 | |||||||||||
Total applications approved(4) | 51.7 | % | 49.1 | % | 51.6 | % | 47.6 | % | |||||||
Average down payment | 3.1 | % | 3.0 | % | 3.5 | % | 3.7 | % | |||||||
Average total outstanding balance | $ | 806,653 | $ | 647,154 | $ | 780,825 | $ | 641,765 | |||||||
Bad debt charge-offs (net of recoveries) | $ | 14,176 | $ | 13,629 | $ | 25,731 | $ | 27,158 | |||||||
Percent of bad debt charge-offs (net of recoveries) to average outstanding balance, annualized | 7.0 | % | 8.4 | % | 6.6 | % | 8.5 | % | |||||||
Payment rate(5) | 5.2 | % | 5.2 | % | 5.7 | % | 5.7 | % | |||||||
Percent of retail sales paid for by: | |||||||||||||||
Third party financing | 12.2 | % | 15.8 | % | 12.0 | % | 14.2 | % | |||||||
In-house financing, including down payment received | 76.8 | % | 69.4 | % | 75.4 | % | 68.1 | % | |||||||
Third party rent-to-own options | 2.5 | % | 3.2 | % | 3.1 | % | 3.5 | % | |||||||
Total | 91.5 | % | 88.4 | % | 90.5 | % | 85.8 | % |
(1) | Includes installment accounts only. |
(2) | Accounts that become delinquent after being re-aged are included in both the delinquency and re-aged amounts. |
(3) | The increase in delinquency rate was due primarily to execution issues within the Company's collection operations experienced during the second quarter of fiscal 2014. |
(4) | Total applications approved data for three and six months ended |
(5) | Three and six month average of gross cash payments as a percentage of gross principal balances outstanding at the beginning of each month in the period. |
Cumulative loss rate as a % of balance originated (a) | ||||||||||||||||||||
Fiscal Year | Years from origination | |||||||||||||||||||
of Origination | 0 | 1 | 2 | 3 | Terminal (b) | |||||||||||||||
2005 | 0.3% | 1.7% | 3.4% | 4.3% | 4.9% | |||||||||||||||
2006 | 0.3% | 1.9% | 3.6% | 4.8% | 5.7% | |||||||||||||||
2007 | 0.2% | 1.7% | 3.5% | 4.6% | 5.6% | |||||||||||||||
2008 | 0.2% | 1.8% | 3.6% | 5.0% | 5.9% | |||||||||||||||
2009 | 0.2% | 2.0% | 4.6% | 6.0% | 6.6% | |||||||||||||||
2010 | 0.2% | 2.4% | 4.5% | 5.9% | 6.0% | |||||||||||||||
2011 | 0.4% | 2.6% | 5.2% | 5.5% | ||||||||||||||||
2012 | 0.2% | 3.1% | 3.8% | |||||||||||||||||
2013 | 0.4% | 0.6% |
Cumulative loss rate as a % of balance originated (a) | ||||||||||
Fiscal Year | Years from origination | |||||||||
of Origination | — | 1 | 2 | 3 | Terminal (b) | |||||
2005 | 0.3% | 1.8% | 3.5% | 4.4% | 5.1% | |||||
2006 | 0.3% | 1.9% | 3.6% | 4.8% | 5.8% | |||||
2007 | 0.2% | 1.7% | 3.5% | 4.8% | 5.8% | |||||
2008 | 0.2% | 1.8% | 3.6% | 5.1% | 5.9% | |||||
2009 | 0.2% | 2.1% | 4.6% | 6.1% | 6.6% | |||||
2010 | 0.2% | 2.4% | 4.6% | 6.0% | 6.1% | |||||
2011 | 0.4% | 2.6% | 5.2% | 5.7% | ||||||
2012 | 0.2% | 3.1% | 4.5% | |||||||
2013 | 0.4% | 2.1% |
(a) | The most recent percentages in years from origination 1 through 3 include loss data through |
(b) | The terminal loss percentage presented represents the point at which that pool of loans has reached its maximum loss rate. |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Revenues | ||||||||||||
Product sales | $ | 190,860 | $ | 152,115 | $ | 38,745 | ||||||
Repair service agreement commissions | 15,989 | 11,392 | 4,597 | |||||||||
Service revenues | 2,599 | 3,430 | (831 | ) | ||||||||
Total net sales | 209,448 | 166,937 | 42,511 | |||||||||
Finance charges and other | 41,615 | 33,914 | 7,701 | |||||||||
Total revenues | 251,063 | 200,851 | 50,212 | |||||||||
Cost and expenses | ||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 123,457 | 108,443 | 15,014 | |||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,406 | 1,550 | (144 | ) | ||||||||
Selling, general and administrative expense (a) | 73,255 | 59,656 | 13,599 | |||||||||
Provision for bad debts | 13,937 | 9,185 | 4,752 | |||||||||
Charges and credits | - | 163 | (163 | ) | ||||||||
Total cost and expenses | 212,055 | 178,997 | 33,058 | |||||||||
Operating income | 39,008 | 21,854 | 17,154 | |||||||||
Interest expense | 3,871 | 3,759 | 112 | |||||||||
Other income, net | (6 | ) | (96 | ) | 90 | |||||||
Income before income taxes | 35,143 | 18,191 | 16,952 | |||||||||
Provision for income taxes | 12,967 | 6,635 | 6,332 | |||||||||
Net income | $ | 22,176 | $ | 11,556 | $ | 10,620 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
(in thousands) | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Product sales | $ | 203,463 | $ | 156,026 | $ | 47,437 | $ | 394,323 | $ | 308,141 | $ | 86,182 | |||||||||||
Repair service agreement commissions | 17,166 | 12,355 | 4,811 | 33,155 | 23,747 | 9,408 | |||||||||||||||||
Service revenues | 3,083 | 3,274 | (191 | ) | 5,682 | 6,704 | (1,022 | ) | |||||||||||||||
Total net sales | 223,712 | 171,655 | 52,057 | 433,160 | 338,592 | 94,568 | |||||||||||||||||
Finance charges and other | 46,977 | 35,781 | 11,196 | 88,592 | 69,695 | 18,897 | |||||||||||||||||
Total revenues | 270,689 | 207,436 | 63,253 | 521,752 | 408,287 | 113,465 | |||||||||||||||||
Cost and expenses | |||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 136,040 | 110,910 | 25,130 | 259,497 | 219,353 | 40,144 | |||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,318 | 1,441 | (123 | ) | 2,724 | 2,991 | (267 | ) | |||||||||||||||
Selling, general and administrative expense (a) | 78,757 | 59,381 | 19,376 | 152,012 | 119,037 | 32,975 | |||||||||||||||||
Provision for bad debts | 21,382 | 12,204 | 9,178 | 35,319 | 21,389 | 13,930 | |||||||||||||||||
Charges and credits | — | 346 | (346 | ) | — | 509 | (509 | ) | |||||||||||||||
Total cost and expenses | 237,497 | 184,282 | 53,215 | 449,552 | 363,279 | 86,273 | |||||||||||||||||
Operating income | 33,192 | 23,154 | 10,038 | 72,200 | 45,008 | 27,192 | |||||||||||||||||
Interest expense | 3,135 | 4,874 | (1,739 | ) | 7,006 | 8,633 | (1,627 | ) | |||||||||||||||
Other income, net | (32 | ) | (6 | ) | (26 | ) | (38 | ) | (102 | ) | 64 | ||||||||||||
Income before income taxes | 30,089 | 18,286 | 11,803 | 65,232 | 36,477 | 28,755 | |||||||||||||||||
Provision for income taxes | 10,927 | 6,680 | 4,247 | 23,894 | 13,315 | 10,579 | |||||||||||||||||
Net income | $ | 19,162 | $ | 11,606 | $ | 7,556 | $ | 41,338 | $ | 23,162 | $ | 18,176 |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Revenues | ||||||||||||
Product sales | $ | 190,860 | $ | 152,115 | $ | 38,745 | ||||||
Repair service agreement commissions | 15,989 | 11,392 | 4,597 | |||||||||
Service revenues | 2,599 | 3,430 | (831 | ) | ||||||||
Total net sales | 209,448 | 166,937 | 42,511 | |||||||||
Finance charges and other | 339 | 241 | 98 | |||||||||
Total revenues | 209,787 | 167,178 | 42,609 | |||||||||
Cost and expenses | ||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 123,457 | 108,443 | 15,014 | |||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,406 | 1,550 | (144 | ) | ||||||||
Selling, general and administrative expense (a) | 57,510 | 46,049 | 11,461 | |||||||||
Provision for bad debts | 114 | 212 | (98 | ) | ||||||||
Charges and credits | - | 163 | (163 | ) | ||||||||
Total cost and expenses | 182,487 | 156,417 | 26,070 | |||||||||
Operating income | 27,300 | 10,761 | 16,539 | |||||||||
Other income, net | (6 | ) | (96 | ) | 90 | |||||||
Segment income before income taxes | $ | 27,306 | $ | 10,857 | $ | 16,449 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
(in thousands) | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Product sales | $ | 203,463 | $ | 156,026 | $ | 47,437 | $ | 394,323 | $ | 308,141 | $ | 86,182 | |||||||||||
Repair service agreement commissions | 17,166 | 12,355 | 4,811 | 33,155 | 23,747 | 9,408 | |||||||||||||||||
Service revenues | 3,083 | 3,274 | (191 | ) | 5,682 | 6,704 | (1,022 | ) | |||||||||||||||
Total net sales | 223,712 | 171,655 | 52,057 | 433,160 | 338,592 | 94,568 | |||||||||||||||||
Finance charges and other | 290 | 276 | 14 | 629 | 517 | 112 | |||||||||||||||||
Total revenues | 224,002 | 171,931 | 52,071 | 433,789 | 339,109 | 94,680 | |||||||||||||||||
Cost and expenses | |||||||||||||||||||||||
Cost of goods sold, including warehousing and occupancy costs | 136,040 | 110,910 | 25,130 | 259,497 | 219,353 | 40,144 | |||||||||||||||||
Cost of service parts sold, including warehousing and occupancy cost | 1,318 | 1,441 | (123 | ) | 2,724 | 2,991 | (267 | ) | |||||||||||||||
Selling, general and administrative expense (a) | 60,910 | 46,508 | 14,402 | 118,420 | 92,557 | 25,863 | |||||||||||||||||
Provision for bad debts | 72 | 189 | (117 | ) | 186 | 401 | (215 | ) | |||||||||||||||
Charges and credits | — | 346 | (346 | ) | — | 509 | (509 | ) | |||||||||||||||
Total cost and expenses | 198,340 | 159,394 | 38,946 | 380,827 | 315,811 | 65,016 | |||||||||||||||||
Operating income | 25,662 | 12,537 | 13,125 | 52,962 | 23,298 | 29,664 | |||||||||||||||||
Other income, net | (32 | ) | (6 | ) | (26 | ) | (38 | ) | (102 | ) | 64 | ||||||||||||
Income before income taxes | $ | 25,694 | $ | 12,543 | $ | 13,151 | $ | 53,000 | $ | 23,400 | $ | 29,600 |
Three Months Ended. | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Revenues | ||||||||||||
Finance charges and other | $ | 41,276 | $ | 33,673 | $ | 7,603 | ||||||
Cost and expenses | ||||||||||||
Selling, general and administrative expense (a) | 15,745 | 13,607 | 2,138 | |||||||||
Provision for bad debts | 13,823 | 8,973 | 4,850 | |||||||||
Total cost and expenses | 29,568 | 22,580 | 6,988 | |||||||||
Operating income | 11,708 | 11,093 | 615 | |||||||||
Interest expense | 3,871 | 3,759 | 112 | |||||||||
Segment income before income taxes | $ | 7,837 | $ | 7,334 | $ | 503 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
(in thousands) | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Finance charges and other | $ | 46,687 | $ | 35,505 | $ | 11,182 | $ | 87,963 | $ | 69,178 | $ | 18,785 | |||||||||||
Cost and expenses | |||||||||||||||||||||||
Selling, general and administrative expense (a) | 17,847 | 12,873 | 4,974 | 33,592 | 26,480 | 7,112 | |||||||||||||||||
Provision for bad debts | 21,310 | 12,015 | 9,295 | 35,133 | 20,988 | 14,145 | |||||||||||||||||
Total cost and expenses | 39,157 | 24,888 | 14,269 | 68,725 | 47,468 | 21,257 | |||||||||||||||||
Operating income | 7,530 | 10,617 | (3,087 | ) | 19,238 | 21,710 | (2,472 | ) | |||||||||||||||
Interest expense | 3,135 | 4,874 | (1,739 | ) | 7,006 | 8,633 | (1,627 | ) | |||||||||||||||
Income before income taxes | $ | 4,395 | $ | 5,743 | $ | (1,348 | ) | $ | 12,232 | $ | 13,077 | $ | (845 | ) |
(a) | Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment which benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. The amount of overhead allocated to each segment was |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Total net sales | $ | 209,448 | $ | 166,937 | $ | 42,511 | ||||||
Finance charges and other | 41,615 | 33,914 | 7,701 | |||||||||
Total Revenues | $ | 251,063 | $ | 200,851 | $ | 50,212 |
Three Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Total net sales | $ | 223,712 | $ | 171,655 | $ | 52,057 | |||||
Finance charges and other | 46,977 | 35,781 | 11,196 | ||||||||
Total Revenues | $ | 270,689 | $ | 207,436 | $ | 63,253 |
Three Months ended April 30, | % | Same store | ||||||||||||||||||||||||||
2013 | % of Total | 2012 | % of Total | Change | Change | % change | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Home appliance | $ | 57,679 | 27.5 | % | $ | 48,293 | 29.0 | % | $ | 9,386 | 19.4 | 11.5 | ||||||||||||||||
Furniture and mattress | 49,123 | 23.5 | 28,446 | 17.0 | 20,677 | 72.7 | 50.9 | |||||||||||||||||||||
Consumer electronic | 56,810 | 27.1 | 52,446 | 31.4 | 4,364 | 8.3 | (0.8 | ) | ||||||||||||||||||||
Home office | 17,506 | 8.4 | 12,150 | 7.3 | 5,356 | 44.1 | 34.2 | |||||||||||||||||||||
Other | 9,742 | 4.7 | 10,780 | 6.5 | (1,038 | ) | (9.6 | ) | (15.3 | ) | ||||||||||||||||||
Product sales | 190,860 | 91.2 | 152,115 | 91.2 | 38,745 | 25.5 | 15.2 | |||||||||||||||||||||
Repair service agreement commissions | 15,989 | 7.6 | 11,392 | 6.8 | 4,597 | 40.4 | 28.0 | |||||||||||||||||||||
Service revenues | 2,599 | 1.2 | 3,430 | 2.0 | (831 | ) | (24.2 | ) | ||||||||||||||||||||
Total net sales | $ | 209,448 | 100.0 | % | $ | 166,937 | 100.0 | % | $ | 42,511 | 25.5 | 16.5 |
Three Months Ended July 31, | % | Same store | |||||||||||||||||||||
2013 | % of Total | 2012 | % of Total | Change | Change | % change | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Home appliance | $ | 63,857 | 28.5 | % | $ | 51,923 | 30.3 | % | $ | 11,934 | 23.0 | 13.3 | |||||||||||
Furniture and mattress | 50,668 | 22.6 | 31,942 | 18.6 | 18,726 | 58.6 | 33.7 | ||||||||||||||||
Consumer electronic | 55,766 | 24.9 | 46,590 | 27.1 | 9,176 | 19.7 | 8.2 | ||||||||||||||||
Home office | 18,712 | 8.4 | 14,436 | 8.4 | 4,276 | 29.6 | 18.9 | ||||||||||||||||
Other | 14,460 | 6.5 | 11,135 | 6.5 | 3,325 | 29.9 | 21.6 | ||||||||||||||||
Product sales | 203,463 | 90.9 | 156,026 | 90.9 | 47,437 | 30.4 | 17.6 | ||||||||||||||||
Repair service agreement commissions | 17,166 | 7.7 | 12,355 | 7.2 | 4,811 | 38.9 | 29.8 | ||||||||||||||||
Service revenues | 3,083 | 1.4 | 3,274 | 1.9 | (191 | ) | (5.8 | ) | |||||||||||||||
Total net sales | $ | 223,712 | 100.0 | % | $ | 171,655 | 100.0 | % | $ | 52,057 | 30.3 | 18.4 |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Interest income and fees | $ | 33,010 | $ | 28,640 | $ | 4,370 | ||||||
Insurance commissions | 8,267 | 5,033 | 3,234 | |||||||||
Other income | 338 | 241 | 97 | |||||||||
Finance charges and other | $ | 41,615 | $ | 33,914 | $ | 7,701 |
Three Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Interest income and fees | $ | 36,397 | $ | 29,817 | $ | 6,580 | |||||
Insurance commissions | 10,289 | 5,688 | 4,601 | ||||||||
Other income | 291 | 276 | 15 | ||||||||
Finance charges and other | $ | 46,977 | $ | 35,781 | $ | 11,196 |
Three Months Ended | ||||||||
April 30, | ||||||||
2013 | 2012 | |||||||
(in thousands, except percentages) | ||||||||
Interest income and fees (a) | $ | 33,010 | $ | 28,640 | ||||
Net charge-offs | (11,555 | ) | (13,529 | ) | ||||
Borrowing costs (b) | (3,871 | ) | (3,759 | ) | ||||
Net portfolio yield | $ | 17,584 | $ | 11,352 | ||||
Average portfolio balance | $ | 753,221 | $ | 634,743 | ||||
Interest income and fee yield % (annualized) | 18.0 | % | 18.0 | % | ||||
Net charge-off % (annualized) | 6.1 | % | 8.5 | % |
Three Months Ended July 31, | |||||||
2013 | 2012 | ||||||
(in thousands, except percentages) | |||||||
Interest income and fees (a) | $ | 36,397 | $ | 29,817 | |||
Net charge-offs | (14,176 | ) | (13,629 | ) | |||
Borrowing costs (b) | (3,135 | ) | (4,874 | ) | |||
Net portfolio yield | $ | 19,086 | $ | 11,314 | |||
Average portfolio balance | $ | 806,653 | $ | 647,154 | |||
Interest income and fee yield % (annualized) | 17.9 | % | 18.4 | % | |||
Net charge-off % (annualized) | 7.0 | % | 8.4 | % |
(a) | Included in finance charges and other. |
(b) | Total interest expense. |
Three Months Ended | |||||||||||||||||||||||
April 30, | Three Months Ended July 31, | ||||||||||||||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||||||||
Cost of goods sold | $ | 123,457 | $ | 108,443 | $ | 15,014 | $ | 136,040 | $ | 110,910 | �� | $ | 25,130 | ||||||||||
Product gross margin percentage | 35.3 | % | 28.7 | % | 33.1 | % | 28.9 | % |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | |||||||||
Cost of service parts sold | $ | 1,406 | $ | 1,550 | $ | (144 | ) | |||||
As a percent of service revenues | 54.1 | % | 45.2 | % |
Three Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Cost of service parts sold | $ | 1,318 | $ | 1,441 | $ | (123 | ) | ||||
As a percent of service revenues | 42.8 | % | 44.0 | % |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | |||||||||
Selling, general and administrative expense - Retail | $ | 57,510 | $ | 46,049 | $ | 11,461 | ||||||
Selling, general and administrative expense - Credit | 15,745 | 13,607 | 2,138 | |||||||||
Selling, general and administrative expense - Total | $ | 73,255 | $ | 59,656 | $ | 13,599 | ||||||
As a percent of total revenues | 29.2 | % | 29.7 | % |
Three Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Selling, general and administrative expense - Retail | $ | 60,910 | $ | 46,508 | $ | 14,402 | |||||
Selling, general and administrative expense - Credit | 17,847 | 12,873 | 4,974 | ||||||||
Selling, general and administrative expense - Total | $ | 78,757 | $ | 59,381 | $ | 19,376 | |||||
As a percent of total revenues | 29.1 | % | 28.6 | % |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | |||||||||
Provision for bad debts | $ | 13,937 | $ | 9,185 | $ | 4,752 | ||||||
As a percent of average portfolio balance (annualized) | 7.4 | % | 5.8 | % |
Three Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Provision for bad debts - Retail | $ | 72 | $ | 189 | $ | (117 | ) | ||||
Provision for bad debts - Credit | 21,310 | 12,015 | 9,295 | ||||||||
Provision for bad debts - Total | $ | 21,382 | $ | 12,204 | $ | 9,178 | |||||
Provision for bad debts - Credit as a percent of average portfolio balance (annualized) | 10.6 | % | 7.4 | % |
Three Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Costs related to relocation | $ | — | $ | 346 | $ | (346 | ) | ||||
Charges and credits | $ | — | $ | 346 | $ | (346 | ) |
Three Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Interest expense | $ | 3,135 | $ | 4,874 | $ | (1,739 | ) |
Three Months Ended July 31, | ||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | |||||||
Provision for income taxes | $ | 10,927 | $ | 6,680 | 4,247 | |||||
As a percent of income before income taxes | 36.3 | % | 36.5 | % |
Six Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Total net sales | $ | 433,160 | $ | 338,592 | $ | 94,568 | |||||
Finance charges and other | 88,592 | 69,695 | 18,897 | ||||||||
Total Revenues | $ | 521,752 | $ | 408,287 | $ | 113,465 |
Six Months Ended July 31, | % | Same store | |||||||||||||||||||||
2013 | % of Total | 2012 | % of Total | Change | Change | % change | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Home appliance | $ | 121,536 | 28.1 | % | $ | 100,216 | 29.6 | % | $ | 21,320 | 21.3 | 12.4 | |||||||||||
Furniture and mattress | 99,791 | 23.0 | 60,388 | 17.8 | 39,403 | 65.2 | 41.8 | ||||||||||||||||
Consumer electronic | 112,576 | 26.0 | 99,036 | 29.2 | 13,540 | 13.7 | 3.5 | ||||||||||||||||
Home office | 36,218 | 8.4 | 26,585 | 7.9 | 9,633 | 36.2 | 25.9 | ||||||||||||||||
Other | 24,202 | 5.6 | 21,916 | 6.5 | 2,286 | 10.4 | 5.1 | ||||||||||||||||
Product sales | 394,323 | 91.1 | 308,141 | 91.0 | 86,182 | 28.0 | 16.3 | ||||||||||||||||
Repair service agreement commissions | 33,155 | 7.6 | 23,747 | 7.0 | 9,408 | 39.6 | 28.9 | ||||||||||||||||
Service revenues | 5,682 | 1.3 | 6,704 | 2.0 | (1,022 | ) | (15.2 | ) | |||||||||||||||
Total net sales | $ | 433,160 | 100.0 | % | $ | 338,592 | 100.0 | % | $ | 94,568 | 27.9 | 17.5 |
Six Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Interest income and fees | $ | 69,407 | $ | 58,457 | $ | 10,950 | |||||
Insurance commissions | 18,556 | 10,722 | 7,834 | ||||||||
Other income | 629 | 516 | 113 | ||||||||
Finance charges and other | $ | 88,592 | $ | 69,695 | $ | 18,897 |
Six Months Ended July 31, | |||||||
2013 | 2012 | ||||||
(in thousands, except percentages) | |||||||
Interest income and fees (a) | $ | 69,407 | $ | 58,457 | |||
Net charge-offs | (25,731 | ) | (27,158 | ) | |||
Borrowing costs (b) | (7,006 | ) | (8,633 | ) | |||
Net portfolio yield | $ | 36,670 | $ | 22,666 | |||
Average portfolio balance | $ | 780,825 | $ | 641,765 | |||
Interest income and fee yield % (annualized) | 17.9 | % | 18.2 | % | |||
Net charge-off % (annualized) | 6.6 | % | 8.5 | % |
(a) | Included in finance charges and other. |
(b) | Total interest expense. |
Six Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Cost of goods sold | $ | 259,497 | $ | 219,353 | $ | 40,144 | |||||
Product gross margin percentage | 34.2 | % | 28.8 | % |
Six Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Cost of service parts sold | $ | 2,724 | $ | 2,991 | $ | (267 | ) | ||||
As a percent of service revenues | 47.9 | % | 44.6 | % |
Six Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Selling, general and administrative expense - Retail | $ | 118,420 | $ | 92,557 | $ | 25,863 | |||||
Selling, general and administrative expense - Credit | 33,592 | 26,480 | 7,112 | ||||||||
Selling, general and administrative expense - Total | $ | 152,012 | $ | 119,037 | $ | 32,975 | |||||
As a percent of total revenues | 29.1 | % | 29.2 | % |
Six Months Ended July 31, | |||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | ||||||||
Provision for bad debts - Retail | $ | 186 | $ | 401 | $ | (215 | ) | ||||
Provision for bad debts - Credit | 35,133 | 20,988 | 14,145 | ||||||||
Provision for bad debts - Total | $ | 35,319 | $ | 21,389 | $ | 13,930 | |||||
Provision for bad debts - Credit as a percent of average portfolio balance (annualized) | 9.0 | % | 6.5 | % |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Costs related to store closings | $ | - | $ | 163 | $ | (163 | ) | |||||
Charges and credits | $ | - | $ | 163 | $ | (163 | ) |
Six Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Costs related to store closings | $ | — | $ | 163 | $ | 163 | |||||
Costs related to relocation | $ | — | $ | 346 | $ | 346 | |||||
Charges and credits | $ | — | $ | 509 | $ | 509 |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands) | 2013 | 2012 | Change | |||||||||
Interest expense | $ | 3,871 | $ | 3,759 | $ | 112 |
Six Months Ended July 31, | |||||||||||
(in thousands) | 2013 | 2012 | Change | ||||||||
Interest expense | $ | 7,006 | $ | 8,633 | $ | (1,627 | ) |
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | |||||||||
Provision for income taxes | $ | 12,967 | $ | 6,635 | 6,332 | |||||||
As a percent of income before income taxes | 36.9 | % | 36.5 | % |
Six Months Ended July 31, | ||||||||||
(in thousands, except percentages) | 2013 | 2012 | Change | |||||||
Provision for income taxes | $ | 23,894 | $ | 13,315 | 10,579 | |||||
As a percent of income before income taxes | 36.6 | % | 36.5 | % |
Actual | Required Minimum/ Maximum | |||||
Fixed charge coverage ratio must exceed required minimum | 2.04 to 1.00 | 1.10 to 1.00 | ||||
Total liabilities to tangible net worth ratio must be lower than required maximum | 0.88 to 1.00 | 2.00 to 1.00 | ||||
Cash recovery percentage must exceed stated amount | 6.19% | 4.74% | ||||
Capital expenditures, net must be lower than stated amount | $6.1 million | $40.0 million |
Actual | Required Minimum/ Maximum | ||
Fixed charge coverage ratio must exceed required minimum | 2.04 to 1.00 | 1.10 to 1.00 | |
Total liabilities to tangible net worth ratio must be lower than required maximum | 0.92 to 1.00 | 2.00 to 1.00 | |
Cash recovery percentage must exceed stated amount | 5.24% | 4.74% | |
Capital expenditures, net must be lower than stated amount | $15.6 million | $40.0 million |
Number of Shares | ||||||||
For | Withheld | |||||||
Jon E.M. Jacoby | 28,650,855 | 2,510,736 | ||||||
Kelly M. Malson | 30,995,785 | 165,806 | ||||||
Bob L. Martin | 30,922,598 | 238,993 | ||||||
Douglas H. Martin | 30,933,225 | 228,366 | ||||||
David Schofman | 30,995,617 | 165,974 | ||||||
Scott L. Thompson | 30,941,528 | 220,063 | ||||||
Theodore M. Wright | 30,813,235 | 348,356 |
CONN’S, INC. | ||||||
By: | ||||||
Brian E. Taylor | ||||||
Vice President, Chief Financial Officer and Treasurer | ||||||
(Principal Financial Officer and duly authorized to sign this report on behalf of the registrant) |
Exhibit Number | Description | |
3.1 | Certificate of Incorporation of Conn's, Inc. (incorporated herein by reference to Exhibit 3.1 to Conn's, Inc. registration statement on Form S-1 (file no. 333-109046) as filed with the Securities and Exchange Commission on September 23, 2003). | |
3.1.1 | Certificate of Amendment to the Certificate of Incorporation of Conn’s, Inc. dated June 3, 2004 (incorporated herein by reference to Exhibit 3.1.1 to Conn’s, Inc. Form 10-Q for the quarterly period ended April 30, 2004 (File No. 000-50421) as filed with the Securities and Exchange Commission on June 7, 2004). | |
3.1.2 | Certificate of Amendment to the Certificate of Incorporation of Conn’s, Inc. dated May 30, 2012 (incorporated herein by reference to Exhibit 3.1.2 to Conn’s, Inc. Form 10-Q for the quarterly period ended April 30, 2012 (File No. 000-50421) as filed with the Securities and Exchange Commission on June 5, 2012). | |
3.2 | Amended and Restated Bylaws of Conn’s, Inc. effective as of June 3, 2008 (incorporated herein by reference to Exhibit 3.2.3 to Conn’s, Inc. Form 10-Q for the quarterly period ended April 30, 2008 (File No. 000-50421) as filed with the Securities and Exchange Commission on June 4, 2008). | |
4.1 | Specimen of certificate for shares of Conn's, Inc.'s common stock (incorporated herein by reference to Exhibit 4.1 to Conn's, Inc. registration statement on Form S-1 (file no. 333-109046) as filed with the Securities and Exchange Commission on October 29, 2003). | |
10.1 | ||
Revised Form of Restricted Stock Award Agreement | ||
Non-Employee Director Restricted Stock Plan | |
Form of | |
Statement of computation of Ratio of Earnings to Fixed Charges (filed herewith). | |
Rule 13a-14(a)/15d-14(a) Certification (Chief Executive Officer) (filed herewith). | |
Rule 13a-14(a)/15d-14(a) Certification (Chief Financial Officer) (filed herewith). | |
Section 1350 Certification (Chief Executive Officer and Chief Financial Officer) (furnished herewith). | |
101 | The following financial information from our Quarterly Report on Form 10-Q for the |