Conn’s Inc (NASDAQ: CONN) stock rose over 0.4% on 26th March, 2019 (as of 12:02 pm GMT-4; Source: Google finance) after the company posted mixed results for the fourth quarter of FY 19. On a non-GAAP basis, the company has reported the adjusted net income for the fourth quarter of fiscal year 2019 of $31.0 million compared to adjusted net income for the fourth quarter of fiscal year 2018 of $17.9 million. As of January 31, 2019, the company had $381.0 million of immediately available borrowing capacity under its $650 million revolving credit facility. The company also had $5.9 million of unrestricted cash available for use.
Meanwhile, CONN had opened two new Conn’s HomePlus stores during the fourth quarter of fiscal year 2019 and has opened two new Conn’s HomePlus stores during the first quarter of fiscal year 2020, bringing the total store count to 125 in 14 states. During FY 2020, the company plans to open between 12 and 15 new stores (including the two already opened) in existing states to leverage current infrastructure.
CONN in the fourth quarter of FY 19 has reported the adjusted earnings per share of 96 cents, beating the analysts’ estimates for the adjusted earnings per share of 77 cents. The company had reported the adjusted revenue of $433 million in the fourth quarter of FY 19, missing the analysts’ estimates for revenue of $438.1 million. Retail revenues were $338.9 million for the fourth quarter 2019 compared to $334.5 million for the fourth quarter 2018, an increase of $4.4 million or 1.3%. The increase in retail revenue was primarily driven by new store growth and an increase in same store sales in markets not impacted by Hurricane Harvey of 3.7%, partially offset by a decrease in same store sales in markets impacted by Hurricane Harvey of 12.9%
For FY 20, the company expects change in same store sales to be between negative 5% and negative 1%, in which the markets not impacted by Hurricane Harvey to be between negative 2% and positive 2% and the markets impacted by Hurricane Harvey between negative 12% and negative 8%. For FY 20, the retail gross margin is expected to be between 39.5% and 40.0% of total net retail sales, selling, general and administrative expenses to be between 32.5% and 33.5% of total revenues, provision for bad debts to be between $38.5 million and $42.5 million, finance charges and other revenues to be between $88.5 million and $92.5 million and interest expense to be between $15.0 million and $16.0 million.