Conn's makes ‘progress’ on deleveraging, improves capital structure

By Devika Patel

Knoxville, Tenn., Dec. 4 – Conn's, Inc. is still focused on deleveraging and continued to do so last quarter.

The company also made “continued improvements” on its capital position.

“During the third quarter, we continued to make progress on deleveraging our balance sheet, diversifying our sources of capital and reducing our all-in cost of funds,” executive vice president and chief financial officer Lee A. Wright said on the company’s third quarter ended Oct. 31 earnings conference call on Tuesday.

“I am pleased with the continued improvements we are making on our capital position.

“We remain focused on deleveraging our balance sheet and proactively reducing our interest expense from higher period levels,” he said.

As of Oct. 31, the company had $401.6 million of immediately available borrowing capacity under its $650 million revolving credit facility, with an additional $162.8 million that may become available under the revolver if Conn’s grows the balance of eligible customer receivables and total eligible inventory balances under the borrowing base.

The company also had $3,492,000 of cash and cash equivalents available as of Oct. 31, compared to $9,286,000 as of Jan. 31.

Based in the Woodlands, Texas, Conn’s is a specialty retailer of furniture, mattresses, home appliances and consumer electronics and a provider of consumer credit.

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