THE WOODLANDS, Texas, July 15, 2019 (GLOBE NEWSWIRE) – Conn’s, Inc. (NASDAQ: CONN), a specialty retailer of furniture and mattresses, home appliances, consumer electronics and home office products, and a provider of consumer credit, today announced that it has entered into an agreement with Securities and Exchange Commission (the “SEC”). The settlement stems from the SEC’s previously disclosed investigation that began in November 2014 into the company’s underwriting policies and bad debt provisions from July 31, 2012 to July 31, 2014. As part of the settlement process, the SEC today filed a civil lawsuit and accepted the judgment against the Company and a former officer of the US District Court for the Southern District of Texas.
Without admitting or denying the allegations in the SEC’s complaint, the Company has consented to the entry of a final judgment under which it will pay a civil monetary fine of $ 1.1 million to the SEC.
There will be no financial impact of the current period on the results of the Company, as a provision for this amount has previously been established and expensed.
“The company resolved this landmark investigation in order to focus on growing the business for our customers, employees and shareholders,” said Norm Miller, Chairman and CEO of Conn. “I’m happy to have this case, in which no current Conn executive was involved, behind the company. We have transformed Conn’s since that time and I am excited about the many opportunities we have to create value for all of Conn’s stakeholders.
About Conn’s, Inc.
Conn’s HomePlus is a specialty retailer that currently operates more than 130 outlets in Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.
The main product categories of the Company include:
- Furniture and mattresses, including furniture and related accessories for the living room, dining room and bedroom, as well as traditional and specialty mattresses;
- Household appliances, including refrigerators, freezers, washers, dryers, dishwashers and stoves;
- Consumer electronics, including LED, OLED, QLED, Ultra HD and Internet-enabled TVs, game consoles, home theaters and portable audio equipment; and
- Home office, including computers, printers and accessories.
In addition, Conn’s HomePlus offers a variety of products on a seasonal basis. Unlike many of its competitors, Conn’s HomePlus offers flexible internal credit options to its customers in addition to third-party financing programs and third-party capital lease payment plans.
This press release contains forward-looking statements within the meaning of federal securities laws, including, but not limited to the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. These forward-looking statements include information about our future financial performance, business strategy, plans, goals and objectives. Statements containing the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “can”, “plan”, “plan”, “should” , “Predict”, “will”, “potential” or the negative of such terms and other similar expressions are generally forward-looking and not historical facts. These forward-looking statements are based on our current expectations. We cannot guarantee 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 expressed or implied by our forward-looking statements, including, but not limited to: general economic conditions affecting our customers or potential customers; our ability to execute periodic securitizations of future customer loans on favorable terms; our ability to continue with existing customer financing programs or to offer new customer financing programs; changes in the delinquency status of our credit portfolio; the unfavorable development of pending litigation; increased regulatory oversight; higher than expected net charges in the credit portfolio; the success of our plan to open new stores; technological and business developments and sales trends for our main product offerings; our ability to effectively manage the selection of our major product offerings; our ability to protect against cyber attacks or data 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 operating cash flows, borrowings from our revolving credit facility and market access proceeds debt or stocks; and other risks detailed in Part I, Section 1A, Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended January 31, 2019 and other reports filed with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or if the consequences of such development change), or if our underlying assumptions prove to be incorrect, actual results may differ 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 publicly update or revise these statements, whether as a result of new information, future events or otherwise, or to provide periodic updates or advice. All forward-looking statements attributable to us, or to persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.
SM Berger & Company
André Berger (216) 464-6400