Conn's beats by $0.12, reports revs in-line
- Reports Q3 (Oct) earnings of $0.18 per share, $0.12 better than the Capital IQ Consensus of $0.06; revenues fell 1.0% year/year to $373.2 mln vs the $372.4 mln two analyst estimate.
- Q3 Same Store Sales declined 7% YoY
- Credit Segment Third Quarter Results
- Credit revenues were $81.3 million for the third quarter of fiscal year 2018 compared to $68.4 million for the third quarter of fiscal year 2017, an increase of 18.8%.
- The increase in credit revenue was primarily the result of increased originations of higher-yielding direct loan product, which contributed to the increase in the portfolio yield rate to 19.8% from 15.0%, partially offset by the impact of a 3.7% decline in the average balance of the customer receivables portfolio.
- Provision for bad debts was $56.3 million for the third quarter of fiscal year 2018 compared to $51.3 million for the third quarter of fiscal year 2017, an increase of $5.0 million.
- Outlook and Guidance - The following are the Company's expectations for the business for the fourth quarter of fiscal year 2018:
- Change in same store sales down mid single digits
- Retail gross margin between 39.0-39.5% of total retail net sales
- Selling, general and administrative expenses between 27.0-29.0% of total revenues
- Provision for bad debts between $55.0-59.5 million;
- Finance charges and other revenues between $86.0-90.0 million
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