Conn’s names interim CFO, reports net loss

The Woodlands, Texas – Conn’s Inc. has named VP and chief accounting officer Mark Haley as interim CFO in the wake of the departure of former CFO Brian Taylor. The company also reported a net loss of $3.06 million in the third quarter of fiscal 2015, compared to net income of $24.38 million a year earlier, missing Wall Street expectations.



Losses in Conn’s credit segment, spurred by credit delinquencies and deteriorating customer credit scores, helped drive the swing to a loss. In response, Conn’s has established a Credit Risk and Compliance Committee, and also approved the creation of the new positions of company president and chief risk officer. A board of directors-directed evaluation of collections operations by two independent third-party advisors has already been completed.



These reviews identified no significant deficiencies in operations effectiveness but did identify opportunities for improvement, particularly in collections cost efficiency.



The company plans to open two new stores and close one store in the fourth quarter of fiscal 2015 and open 15-18 new stores and close two stores in fiscal 2016.



In other third quarter financial results, Conn’s reported total revenues of $370.06 million, up 19% from $310.88 million. Same-store sales slightly declined.



“In the third quarter, we drove significant growth and expanded gross margins in the retail segment, but these gains were more than offset by additional provisions for credit losses,” said Theodore M. Wright, chairman and CEO. “We are disappointed in this quarter’s reported results, and we are committed to improving performance in the credit segment through better execution and oversight.”