CONNS INC

CIK:0001223389|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Revenues:
Total net sales	$ 978,331	$ 1,076,590	$ 1,305,389
Finance charges and other revenues	259,352	265,937	284,642
Total revenues	1,237,683	1,342,527	1,590,031
Costs and expenses:
Cost of goods sold	629,688	710,234	825,987
Selling, general and administrative expense	561,628	526,212	544,490
Provision for bad debts	154,080	121,193	48,184
Charges and credits	17,565	14,360	2,677
Total costs and expenses	1,362,961	1,371,999	1,421,338
Operating (loss) income	(125,278)	(29,472)	168,693
Interest expense	81,707	36,891	25,758
Gain (Loss) on Extinguishment of Debt	(14,221)	0	(1,218)
Gain from bargain purchase	(104,857)	0	0
(Loss) income before income taxes	(116,349)	(66,363)	141,717
(Benefit) provision for income taxes	(39,456)	(7,071)	33,512
Net (loss) income	$ (76,893)	$ (59,292)	$ 108,205
Earnings (loss) per share:
Basic (in dollars per share)	$ (3.17)	$ (2.46)	$ 3.70
Diluted (in dollars per share)	$ (3.17)	$ (2.46)	$ 3.61
Weighted average common shares outstanding:
Basic (in shares)	24,250,000	24,117,000	29,268,000
Diluted (in shares)	24,250,000	24,117,000	30,001,000
Product sales
Revenues:
Total net sales	$ 896,830	$ 986,600	$ 1,205,545
Repair service agreement commissions
Revenues:
Total net sales	72,738	80,446	89,101
Service revenues
Revenues:
Total net sales	$ 8,763	$ 9,544	$ 10,743

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Cash flows from operating activities:
Net (loss) income	$ (76,893)	$ (59,292)	$ 108,205
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation	50,416	46,276	45,450
Impairment of Long-Lived Assets to be Disposed of	3,500	0	0
Amortization of right-of-use asset	39,517	39,860	35,186
Amortization of debt issuance costs	21,790	8,980	5,485
Provision for bad debts and uncollectible interest	191,122	168,842	84,286
Change in fair value of accounts receivable	4,773	0	0
Amortization of securitized financing costs	784	0	0
Stock-based compensation expense	10,258	10,972	8,915
Charges, net of credits	3,952	14,360	2,677
Deferred income taxes	(27,596)	(5,309)	16,799
Loss on early termination of debt	14,221	0	1,218
Gain from bargain purchase	(104,857)	0	0
Loss from disposal of property and equipment	0	859	258
Tenant improvement allowances received from landlords	23,698	11,560	14,143
Change in operating assets and liabilities:
Customer accounts receivable	(165,587)	(90,465)	(62,543)
Other accounts receivables	5,724	5,273	(1,818)
Inventories	36,569	6,043	(50,363)
Other assets	9,006	(4,317)	1,081
Accounts payable	(16,789)	(3,020)	5,338
Accrued expenses	15,130	(35,905)	19,325
Increase (Decrease) in Operating Lease Liabilities	(64,741)	(56,430)	(53,435)
Income taxes	(11,254)	6,788	(4,687)
Deferred revenues and other credits	(1,289)	(4,627)	882
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities	(12,688)	0	0
Net cash (used in) provided by operating activities	(51,234)	60,448	176,402
Cash flows from investing activities:
Purchases of property and equipment	(51,054)	(72,966)	(44,859)
Cash Acquired from Acquisition	3,714	0	0
Net cash used in investing activities	(47,340)	(72,966)	(44,859)
Cash flows from financing activities:
Proceeds from issuance of asset-backed notes	533,040	451,853	440,710
Payments on asset-backed notes	(393,476)	(409,973)	(483,904)
Borrowings under revolving credit facility	819,659	1,070,795	1,530,376
Payments on revolving credit facility	(672,931)	(998,795)	(1,433,376)
Repayments of Accounts Receivable Securitization	(33,541)	0	0
Payment for share repurchases	0	(71,696)	(55,384)
Payment of debt issuance costs and amendment fees	(35,096)	(6,413)	(7,658)
Proceeds from stock issued under employee stock purchase plan	561	777	809
Tax payments associated with equity-based compensation transactions	(1,238)	(2,378)	(1,410)
Payment for extinguishment of debt	(108,175)	0	(141,279)
Other	153	(918)	(1,050)
Net cash provided by (used in) financing activities	108,956	33,252	(152,166)
Net change in cash, cash equivalents and restricted cash	10,382	20,734	(20,623)
Cash, cash equivalents and restricted cash, beginning of period	60,371	39,637	60,260
Cash, cash equivalents and restricted cash, end of period	70,753	60,371	39,637
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	111,487	65,397	34,847
Right-of-use assets obtained in exchange for new financing lease liabilities	0	1	1,160
Property and equipment purchases not yet paid	14,425	17,258	9,059
Fair Value of Assets Acquired	174,124	0	0
Preferred Stock, Value, Issued	62,246	0	0
Supplemental cash flow data:
Cash interest paid	60,019	26,001	18,252
Cash income taxes paid (refunded), net	$ 1,453	$ (8,508)	$ 21,525

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Current assets:
Cash and cash equivalents	$ 18,703	$ 19,534
Restricted cash (includes VIE balances of $49,940 and $38,727, respectively)	52,050	40,837
Customer accounts receivable, net of allowance (includes VIE balances of $351,825 and $251,689, respectively)	419,005	421,683
Other accounts receivable	50,559	56,887
Inventories	333,962	240,783
Income taxes receivable	44,352	38,436
Prepaid expenses and other current assets	18,679	12,937
Assets, Current	1,204,096	831,097
Long-term portion of customer accounts receivable, net of allowances (includes VIE balances of $276,700 and $181,575, respectively)	364,996	389,054
Property and equipment, net	250,468	218,956
Operating lease right-of-use assets	556,416	262,104
Other assets	30,701	15,004
Total assets	2,444,042	1,716,215
Current liabilities:
Accounts payable	98,567	71,685
Accrued compensation and related expenses	19,309	13,285
Accrued expenses	97,775	69,334
Operating lease liability	82,153	53,208
Income taxes payable	2,693	2,869
Deferred revenues and other credits	16,288	11,043
Total current liabilities	466,523	222,361
Operating lease liability - non current	598,712	331,109
Long-term debt and finance lease obligations (includes VIE balances of $$571,166 and $410,790 respectively)	820,787	636,079
Deferred tax liability	5,603	2,041
Other long-term liabilities	34,078	22,215
Total liabilities	1,946,544	1,213,805
Commitments and contingencies
Temporary Equity, Carrying Amount, Attributable to Parent	62,246	0
Stockholders’ equity:
Common stock ($0.01 par value, 100,000 shares authorized; 33,992 and 33,379 shares issued, respectively)	340	334
Treasury stock (at cost; 9,405 shares and 9,405 shares, respectively)	(193,370)	(193,370)
Additional paid-in capital	164,966	155,523
Retained earnings	463,316	539,923
Total stockholders’ equity	435,252	502,410
Total liabilities, mezzanine equity, and stockholders’ equity	2,444,042	1,716,215
Long-term debt	571,166
VIE
Current assets:
Customer accounts receivable, net of allowance (includes VIE balances of $351,825 and $251,689, respectively)	351,825	251,689
Total assets	852,096	471,991
Current liabilities:
Accrued expenses	1,155	3,475
Total liabilities	723,349	421,092
Stockholders’ equity:
Long-term debt	571,166	410,790
Long-Term Debt
Current liabilities:
Secured Long-Term Debt, Noncurrent	20,841	0
Short-Term Debt
Current liabilities:
Short-term debt and finance lease obligations	1,923	937
Secured Debt, Current	147,815	0
Short-Term Debt \| VIE
Current liabilities:
Secured Debt, Current	147,815
Receivables, Fair Value Disclosure, Noncurrent
Current assets:
Receivables, Fair Value Disclosure	37,365	0
Receivables, Fair Value Disclosure, Current \| VIE
Current assets:
Receivables, Fair Value Disclosure, Current	$ 266,786	$ 0