For
the quarterly period ended October 31, 2009
|
Commission
File Number 000-50421
|
A
Delaware Corporation
|
06-1672840
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification
Number)
|
Class
|
Outstanding
|
||
Common
stock, $.01 par value per share
|
22,462,565 |
Page
No.
|
|||||
1 | |||||
1 | |||||
2 | |||||
3 | |||||
4 | |||||
5 | |||||
19 | |||||
42 | |||||
43 | |||||
43 | |||||
43 | |||||
44 | |||||
44 | |||||
45 | |||||
45 | |||||
46 |
Conn's,
Inc.
|
||||||||
(in
thousands, except share data)
|
||||||||
Assets
|
January
31,
2009
|
October
31,
2009
|
||||||
Current
assets
|
(unaudited)
|
|||||||
Cash
and cash equivalents
|
$ | 11,798 | $ | 10,582 | ||||
Other
accounts receivable, net of allowance of $60 and $63,
respectively
|
32,878 | 19,611 | ||||||
Customer
accounts receivable, net of allowance of $2,338 and $6,207
respectively
|
61,125 | 136,600 | ||||||
Interests
in securitized assets
|
176,543 | 149,366 | ||||||
Inventories
|
95,971 | 71,698 | ||||||
Deferred
income taxes
|
13,354 | 15,070 | ||||||
Prepaid
expenses and other assets
|
5,933 | 17,475 | ||||||
Total
current assets
|
397,602 | 420,402 | ||||||
Long-term
portion of customer accounts receivable, net of
|
||||||||
allowance
of $1,575 and $3,632, respectively
|
41,172 | 79,934 | ||||||
Property
and equipment
|
||||||||
Land
|
7,682 | 7,682 | ||||||
Buildings
|
12,011 | 14,263 | ||||||
Equipment
and fixtures
|
21,670 | 22,898 | ||||||
Transportation
equipment
|
2,646 | 2,413 | ||||||
Leasehold
improvements
|
83,361 | 88,719 | ||||||
Subtotal
|
127,370 | 135,975 | ||||||
Less
accumulated depreciation
|
(64,819 | ) | (74,364 | ) | ||||
Total
property and equipment, net
|
62,551 | 61,611 | ||||||
Goodwill,
net
|
9,617 | - | ||||||
Non-current
deferred income tax asset
|
2,035 | 3,830 | ||||||
Other
assets, net
|
3,652 | 3,344 | ||||||
Total
assets
|
$ | 516,629 | $ | 569,121 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Current
liabilities
|
||||||||
Current
portion of long-term debt
|
$ | 5 | $ | 156 | ||||
Accounts
payable
|
57,809 | 40,845 | ||||||
Accrued
compensation and related expenses
|
11,473 | 5,935 | ||||||
Accrued
expenses
|
23,703 | 35,225 | ||||||
Income
taxes payable
|
4,334 | 2,294 | ||||||
Deferred
revenues and allowances
|
15,505 | 15,530 | ||||||
Total
current liabilities
|
112,829 | 99,985 | ||||||
Long-term
debt
|
62,912 | 125,308 | ||||||
Other
long-term liabilities
|
5,702 | 5,396 | ||||||
Fair value of interest rate
swaps
|
- | 328 | ||||||
Deferred gains on sales of
property
|
1,036 | 937 | ||||||
Stockholders'
equity
|
||||||||
Preferred
stock ($0.01 par value, 1,000,000 shares authorized; none issued or
outstanding)
|
- | - | ||||||
Common
stock ($0.01 par value, 40,000,000 shares authorized;
|
||||||||
24,167,445 and 24,185,770 shares issued at January 31, 2009 and October 31, 2009, respectively) | 242 | 242 | ||||||
Additional
paid-in capital
|
103,553 | 105,587 | ||||||
Accumulated
other comprehensive loss
|
- | (213 | ) | |||||
Retained
earnings
|
267,426 | 268,622 | ||||||
Treasury
stock, at cost, 1,723,205 shares
|
(37,071 | ) | (37,071 | ) | ||||
Total
stockholders' equity
|
334,150 | 337,167 | ||||||
Total
liabilities and stockholders' equity
|
$ | 516,629 | $ | 569,121 |
Conn's,
Inc.
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
(in
thousands, except earnings per share)
|
||||||||||||||||
Three
Months Ended
October
31,
|
Nine
Months Ended
October
31,
|
|||||||||||||||
2008
|
2009
|
2008
|
2009
|
|||||||||||||
Revenues
|
||||||||||||||||
Product
sales
|
$ | 160,253 | $ | 148,463 | $ | 515,404 | $ | 508,669 | ||||||||
Repair
service agreement commissions, net
|
8,547 | 7,320 | 28,428 | 25,968 | ||||||||||||
Service
revenues
|
5,129 | 5,599 | 15,809 | 17,195 | ||||||||||||
Total
net sales
|
173,929 | 161,382 | 559,641 | 551,832 | ||||||||||||
Finance
charges and other
|
25,567 | 25,184 | 81,224 | 84,790 | ||||||||||||
Net
decrease in fair value
|
(15,750 | ) | (3,731 | ) | (20,029 | ) | (2,250 | ) | ||||||||
Total
finance charges and other
|
9,817 | 21,453 | 61,195 | 82,540 | ||||||||||||
Total
revenues
|
183,746 | 182,835 | 620,836 | 634,372 | ||||||||||||
Cost
and expenses
|
||||||||||||||||
Cost
of goods sold, including warehousing
|
||||||||||||||||
and
occupancy costs
|
127,007 | 120,963 | 402,853 | 407,594 | ||||||||||||
Cost
of parts sold, including warehousing
|
||||||||||||||||
and
occupancy costs
|
2,479 | 2,672 | 7,073 | 8,056 | ||||||||||||
Selling,
general and administrative expense
|
62,361 | 65,548 | 185,629 | 193,040 | ||||||||||||
Goodwill
impairment
|
- | 9,617 | - | 9,617 | ||||||||||||
Provision
for bad debts
|
2,802 | 3,504 | 3,394 | 7,645 | ||||||||||||
Total cost and
expenses
|
194,649 | 202,304 | 598,949 | 625,952 | ||||||||||||
Operating income (loss)
|
(10,903 | ) | (19,469 | ) | 21,887 | 8,420 | ||||||||||
Interest
expense, net
|
468 | 1,281 | 368 | 2,809 | ||||||||||||
Other
(income) expense, net
|
(4 | ) | (33 | ) | 102 | (54 | ) | |||||||||
Income
(loss) before income taxes
|
(11,367 | ) | (20,717 | ) | 21,417 | 5,665 | ||||||||||
Provision
(benefit) for income taxes
|
(3,625 | ) | (5,443 | ) | 8,351 | 4,469 | ||||||||||
Net
income (loss)
|
$ | (7,742 | ) | $ | (15,274 | ) | $ | 13,066 | $ | 1,196 | ||||||
Earnings
(loss) per share
|
||||||||||||||||
Basic
|
$ | (0.35 | ) | $ | (0.68 | ) | $ | 0.58 | $ | 0.05 | ||||||
Diluted
|
$ | (0.35 | ) | $ | (0.68 | ) | $ | 0.58 | $ | 0.05 | ||||||
Average
common shares outstanding
|
||||||||||||||||
Basic
|
22,422 | 22,459 | 22,404 | 22,453 | ||||||||||||
Diluted
|
22,422 | 22,459 | 22,604 | 22,658 |
Conn's,
Inc.
|
||||||||||||||||||||||||||||
Nine
Months Ended October 31, 2009
|
||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||
(in
thousands, except descriptive shares)
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
Additional
|
Compre-
|
|||||||||||||||||||||||||||
Common
Stock
|
Paid-in
|
hensive
|
Retained
|
Treasury
|
||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Loss
|
Earnings
|
Stock
|
Total
|
||||||||||||||||||||||
Balance
January 31, 2009
|
24,167 | $ | 242 | $ | 103,553 | $ | - | $ | 267,426 | $ | (37,071 | ) | $ | 334,150 | ||||||||||||||
|
||||||||||||||||||||||||||||
Issuance
of shares of common
|
||||||||||||||||||||||||||||
stock
under Employee
|
||||||||||||||||||||||||||||
Stock
Purchase Plan
|
19 | 165 | 165 | |||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||
Stock-based
compensation
|
1,869 | 1,869 | ||||||||||||||||||||||||||
Net
income
|
1,196 | 1,196 | ||||||||||||||||||||||||||
Adjustment
of fair value of
|
||||||||||||||||||||||||||||
interest
rate swaps
|
||||||||||||||||||||||||||||
net
of tax of $81
|
(213 | ) | (213 | ) | ||||||||||||||||||||||||
Total
comprehensive income
|
||||||||||||||||||||||||||||
(Total
comprehensive loss of
|
||||||||||||||||||||||||||||
of
$15,337 for three months
|
||||||||||||||||||||||||||||
ended
October 31, 2009)
|
983 | |||||||||||||||||||||||||||
Balance
October 31, 2009
|
24,186 | $ | 242 | $ | 105,587 | $ | (213 | ) | $ | 268,622 | $ | (37,071 | ) | $ | 337,167 |
Conn’s,
Inc.
|
||||||||
(unaudited)
(in thousands)
|
||||||||
Nine
Months Ended
October
31,
|
||||||||
2008
|
2009
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
income
|
$ | 13,066 | $ | 1,196 | ||||
Adjustments
to reconcile net income to net cash used in operating
activities:
|
||||||||
Depreciation
|
9,462 | 10,062 | ||||||
Amortization
/ (Accretion), net
|
(234 | ) | 833 | |||||
Provision
for bad debts
|
3,394 | 7,645 | ||||||
Stock-based
compensation
|
2,465 | 1,869 | ||||||
Goodwill
impairment
|
- | 9,617 | ||||||
Discounts
on promotional credit
|
4,254 | 3,220 | ||||||
(Gains)
losses on interest in securitized assets
|
(17,090 | ) | 5,165 | |||||
(Increase)
decrease in fair value of securitized assets
|
20,029 | 2,250 | ||||||
Provision
for deferred income taxes
|
(9,276 | ) | (2,520 | ) | ||||
(Gains)
losses on sales of property and equipment
|
77 | (79 | ) | |||||
Changes
in operating assets and liabilities:
|
||||||||
Customer
accounts receivable
|
(81,325 | ) | (123,867 | ) | ||||
Other
accounts receivable
|
6,310 | 13,267 | ||||||
Interest
in securitized assets
|
9,205 | 17,741 | ||||||
Inventory
|
(24,844 | ) | 24,273 | |||||
Prepaid
expenses and other assets
|
(3,249 | ) | (1,113 | ) | ||||
Accounts
payable
|
34,050 | (16,964 | ) | |||||
Accrued
expenses
|
7,243 | 5,984 | ||||||
Income
taxes payable
|
185 | (13,345 | ) | |||||
Deferred
revenue and allowances
|
2,984 | 304 | ||||||
Net cash used in operating
activities
|
(23,294 | ) | (54,462 | ) | ||||
Cash
flows from investing activities
|
||||||||
Purchases
of property and equipment
|
(14,971 | ) | (8,627 | ) | ||||
Proceeds
from sales of property
|
212 | 57 | ||||||
Net
cash used in investing activities
|
(14,759 | ) | (8,570 | ) | ||||
Cash
flows from financing activities
|
||||||||
Proceeds
from stock issued under employee benefit plans
|
745 | 165 | ||||||
Excess
tax benefits from stock-based compensation
|
39 | - | ||||||
Borrowings
under lines of credit
|
95,334 | 220,447 | ) | |||||
Payments
on lines of credit
|
(61,934 | ) | (158,347 | ) | ||||
Increase
in deferred financing costs
|
(2,772 | ) | (423 | ) | ||||
Payment
of promissory notes
|
(91 | ) | (26 | ) | ||||
Net
cash provided by financing activities
|
31,321 | 61,816 | ||||||
Net change in
cash
|
(6,732 | ) | (1,216 | ) | ||||
Cash
and cash equivalents
|
||||||||
Beginning
of the year
|
11,015 | 11,798 | ||||||
End of period
|
$ | 4,283 | $ | 10,582 | ||||
Supplemental
disclosure of non-cash activity
|
||||||||
Cash
interest received from interests in securitized assets
|
$ | 23,146 | $ | 32,712 | ||||
Cash
proceeds from new securitizations
|
243,619 | 114,669 | ||||||
Cash
flows from servicing fees
|
19,462 | 18,169 | ||||||
Purchases
of property and equipment financed by notes payable
|
- | 473 |
Three
Months Ended
|
||||||||
October
31,
|
||||||||
2008
|
2009
|
|||||||
Common
stock outstanding, net of treasury stock, beginning of
period
|
22,410,400 | 22,457,486 | ||||||
Weighted
average common stock issued in stock option exercises
|
10,076 | - | ||||||
Weighted
average common stock issued to employee stock purchase
plan
|
1,512 | 1,767 | ||||||
Shares
used in computing basic earnings (loss) per share
|
22,421,988 | 22,459,253 | ||||||
Dilutive
effect of stock options, net of assumed repurchase of treasury
stock
|
- | - | ||||||
Shares
used in computing diluted earnings (loss) per share
|
22,421,988 | 22,459,253 | ||||||
Nine
Months Ended
|
||||||||
October
31,
|
||||||||
2008 | 2009 | |||||||
Common
stock outstanding, net of treasury stock, beginning of
period
|
22,374,966 | 22,444,240 | ||||||
Weighted
average common stock issued in stock option exercises
|
23,022 | - | ||||||
Weighted
average common stock issued to employee stock purchase
plan
|
6,002 | 9,189 | ||||||
Shares
used in computing basic earnings per share
|
22,403,990 | 22,453,429 | ||||||
Dilutive
effect of stock options, net of assumed repurchase of treasury
stock
|
200,379 | 204,729 | ||||||
Shares
used in computing diluted earnings per share
|
22,604,369 | 22,658,158 |
a.
|
The
power to direct the activities of a variable interest entity that most
significantly impact the entity’s economic
performance
|
b.
|
The
obligation to absorb losses of the entity that could potentially be
significant to the variable interest entity or the right to receive
benefits from the entity that could potentially be significant to the
variable interest entity.
|
Three
Months Ended
|
||||||||
October
31,
|
||||||||
2008
|
2009
|
|||||||
Reconciliation of Interests in Securitized
Assets:
|
||||||||
Balance
of Interests in securitized assets at beginning of period
|
$ | 177,648 | $ | 164,090 | ||||
Amounts
recorded in Finance charges and other:
|
||||||||
Gains
(losses) associated with changes in portfolio balances
|
(45 | ) | 846 | |||||
Changes in fair value due to assumption changes: | ||||||||
Fair
value increase (decrease) due to changing portfolio yield
|
(672 | ) | (1,055 | ) | ||||
Fair
value increase (decrease) due to lower (higher) projected interest
rates
|
310 | 251 | ||||||
Fair
value increase (decrease) due to lower (higher) projected loss
rates
|
(3,767 | ) | (3,691 | ) | ||||
Fair
value increase (decrease) due to changes in funding mix
|
(2,749 | ) | (1,619 | ) | ||||
Fair
value increase (decrease) due to change in risk-free interest
rate
|
||||||||
component
of discount rate
|
1,671 | 164 | ||||||
Fair
value increase (decrease) due to change in risk premium
included
|
||||||||
in discount rate
|
(11,252 | ) | 1,452 | |||||
Other changes | 553 | (173 | ) | |||||
Net
change in fair value due to assumption changes
|
(15,906 | ) | (4,671 | ) | ||||
Net
losses included in Finance charges and other (a)
|
(15,951 | ) | (3,825 | ) | ||||
Change
in balance of subordinated security and equity interest due
to
|
||||||||
transfers
of receivables
|
492 | (10,899 | ) | |||||
Balance
of Interests in securitized assets at end of period
|
$ | 162,189 | $ | 149,366 | ||||
Reconciliation of Servicing
Liability:
|
||||||||
Balance
of servicing liability at beginning of period
|
$ | 1,279 | $ | 985 | ||||
Amounts
recorded in Finance charges and other:
|
||||||||
Increase
(decrease) associated with change in portfolio balances
|
(134 | ) | (71 | ) | ||||
Increase
(decrease) due to change in discount rate
|
(46 | ) | 7 | |||||
Other changes | (21 | ) | (30 | ) | ||||
Net
change included in Finance charges and other (b)
|
(201 | ) | (94 | ) | ||||
Balance
of servicing liability at end of period
|
$ | 1,078 | $ | 891 | ||||
Net
decrease in fair value included
|
||||||||
in
Finance charges and other (a) - (b)
|
$ | (15,750 | ) | $ | (3,731 | ) |
Nine
Months Ended
|
||||||||
October
31,
|
||||||||
2008
|
2009
|
|||||||
Reconciliation of Interests in Securitized
Assets:
|
||||||||
Balance
of Interests in securitized assets at beginning of period
|
$ | 178,150 | $ | 176,543 | ||||
Amounts
recorded in Finance charges and other:
|
||||||||
Gains
associated with changes in portfolio balances
|
122 | 1,527 | ||||||
Changes
in fair value due to assumption changes:
|
||||||||
Fair
value increase (decrease) due to changing portfolio yield
|
(1,488 | ) | (1,531 | ) | ||||
Fair
value increase (decrease) due to lower (higher) projected interest rates
|
187 | 384 | ||||||
Fair
value increase (decrease) due to lower (higher) projected loss
rates
|
(3,767 | ) | (3,691 | ) | ||||
Fair
value increase (decrease) due to changes in funding mix
|
(1,496 | ) | (6,505 | ) | ||||
Fair
value increase (decrease) due to change in risk-free interest
rate
|
||||||||
component
of discount rate
|
1,433 | 187 | ||||||
Fair
value increase (decrease) due to change in risk premium
included
|
||||||||
in
discount rate
|
(16,380 | ) | 7,949 | |||||
Other
changes
|
1,241 | (836 | ) | |||||
Net
change in fair value due to assumption changes
|
(20,270 | ) | (4,043 | ) | ||||
Net
losses included in Finance charges and other (a)
|
(20,148 | ) | (2,516 | ) | ||||
Change
in balance of subordinated security and equity interest due
to
|
||||||||
transfers
of receivables
|
4,187 | (24,661 | ) | |||||
Balance
of Interests in securitized assets at end of period
|
$ | 162,189 | $ | 149,366 | ||||
Reconciliation of Servicing
Liability:
|
||||||||
Balance
of servicing liability at beginning of period
|
$ | 1,197 | $ | 1,157 | ||||
Amounts
recorded in Finance charges and other:
|
||||||||
Increase
(decrease) associated with change in portfolio balances
|
(48 | ) | (250 | ) | ||||
Increase
(decrease) due to change in discount rate
|
(66 | ) | 37 | |||||
Other
changes
|
(5 | ) | (53 | ) | ||||
Net
change included in Finance charges and other (b)
|
(119 | ) | (266 | ) | ||||
Balance
of servicing liability at end of period
|
$ | 1,078 | $ | 891 | ||||
Net
decrease in fair value included
|
||||||||
in
Finance charges and other (a) - (b)
|
$ | (20,029 | ) | $ | (2,250 | ) |
Three
Months ended
|
Nine
Months ended
|
|||||||||||||||
October
31,
|
October
31,
|
|||||||||||||||
2008
|
2009
|
2008
|
2009
|
|||||||||||||
Securitization
income:
|
||||||||||||||||
Servicing
fees received
|
$ | 6,602 | $ | 5,548 | $ | 19,462 | $ | 18,169 | ||||||||
Gains
(losses) on sale of receivables, net
|
1,682 | (3,807 | ) | 17,090 | (5,165 | ) | ||||||||||
Change
in fair value of securitized assets
|
(15,750 | ) | (3,731 | ) | (20,029 | ) | (2,250 | ) | ||||||||
Interest
earned on retained interests
|
8,314 | 9,710 | 23,146 | 32,712 | ||||||||||||
Total
securitization income
|
848 | 7,720 | 39,669 | 43,466 | ||||||||||||
Insurance
commissions
|
4,396 | 3,355 | 15,336 | 13,056 | ||||||||||||
Interest
income from receivables not sold and other
|
4,573 | 10,378 | 6,190 | 26,018 | ||||||||||||
Finance
charges and other
|
$ | 9,817 | $ | 21,453 | $ | 61,195 | $ | 82,540 |
Capacity
|
Utilized
|
Available
|
||||||||||
2002
Series A
|
$ | 200,000 | $ | 188,000 | $ | 12,000 | ||||||
2006
Series A – Class A
|
90,000 | 90,000 | - | |||||||||
2006
Series A – Class B
|
43,333 | 43,333 | - | |||||||||
2006
Series A – Class C
|
16,667 | 16,667 | - | |||||||||
Total
|
$ | 350,000 | $ | 338,000 | $ | 12,000 |
January
31,
|
October
31,
|
|||||||
2009
|
2009
|
|||||||
Interest-only
strip
|
$ | 31,958 | $ | 19,061 | ||||
Subordinated
securities
|
144,585 | 130,305 | ||||||
Total
fair value of interests in securitized assets
|
$ | 176,543 | $ | 149,366 | ||||
January
31,
|
October
31,
|
|||||||
2009
|
2009
|
|||||||
Net
interest spread
|
||||||||
Primary
installment
|
14.5 | % | 14.4 | % | ||||
Primary
revolving
|
14.5 | % | 14.4 | % | ||||
Secondary
installment
|
14.1 | % | 12.5 | % | ||||
Expected
losses
|
||||||||
Primary
installment
|
3.4 | % | 4.5 | % | ||||
Primary
revolving
|
3.4 | % | 4.5 | % | ||||
Secondary
installment
|
5.5 | % | 6.5 | % | ||||
Projected
expense
|
||||||||
Primary
installment
|
3.9 | % | 4.0 | % | ||||
Primary
revolving
|
3.9 | % | 4.0 | % | ||||
Secondary
installment
|
3.9 | % | 4.0 | % | ||||
Discount
rates
|
||||||||
Primary
installment
|
29.2 | % | 23.7 | % | ||||
Primary
revolving
|
29.2 | % | 23.7 | % | ||||
Secondary
installment
|
33.2 | % | 27.7 | % |
Primary
|
Primary
|
Secondary
|
||||||||||
Portfolio
|
Portfolio
|
Portfolio
|
||||||||||
Installment
|
Revolving
|
Installment
|
||||||||||
Fair
value of interest in securitized assets
|
$ | 112,154 | $ | 8,668 | $ | 28,544 | ||||||
Expected
weighted average life
|
1.3
years
|
1.3
years
|
1.8
years
|
|||||||||
Net
interest spread assumption
|
14.4 | % | 14.4 | % | 12.5 | % | ||||||
Impact
on fair value of 10% adverse change
|
$ | 3,547 | $ | 274 | $ | 1,044 | ||||||
Impact
on fair value of 20% adverse change
|
$ | 6,994 | $ | 541 | $ | 2,058 | ||||||
Expected
losses assumptions
|
4.5 | % | 4.5 | % | 6.5 | % | ||||||
Impact
on fair value of 10% adverse change
|
$ | 1,110 | $ | 86 | $ | 541 | ||||||
Impact
on fair value of 20% adverse change
|
$ | 2,211 | $ | 171 | $ | 1,075 | ||||||
Projected
expense assumption
|
4.0 | % | 4.0 | % | 4.0 | % | ||||||
Impact
on fair value of 10% adverse change
|
$ | 982 | $ | 76 | $ | 356 | ||||||
Impact
on fair value of 20% adverse change
|
$ | 1,964 | $ | 152 | $ | 711 | ||||||
Discount
rate assumption
|
23.7 | % | 23.7 | % | 27.7 | % | ||||||
Impact
on fair value of 10% adverse change
|
$ | 2,399 | $ | 185 | $ | 829 | ||||||
Impact
on fair value of 20% adverse change
|
$ | 4,683 | $ | 362 | $ | 1,612 |
Total
Principal Amount of
|
Principal
Amount Over
|
Principal
Amount
|
||||||||||||||||||||||
Receivables
|
60
Days Past Due (1)
|
Reaged
(1)
|
||||||||||||||||||||||
January
31,
|
October
31,
|
January
31,
|
October
31,
|
January
31,
|
October
31,
|
|||||||||||||||||||
2009
|
2009
|
2009
|
2009
|
2009
|
2009
|
|||||||||||||||||||
Primary
portfolio:
|
||||||||||||||||||||||||
Installment
|
$ | 551,838 | $ | 556,535 | $ | 33,126 | $ | 42,694 | $ | 88,224 | $ | 88,152 | ||||||||||||
Revolving
|
38,084 | 36,553 | 2,027 | 2,083 | 2,401 | 1,912 | ||||||||||||||||||
Subtotal
|
589,922 | 593,088 | 35,153 | 44,777 | 90,625 | 90,064 | ||||||||||||||||||
Secondary
portfolio:
|
||||||||||||||||||||||||
Installment
|
163,591 | 145,109 | 19,988 | 23,735 | 50,537 | 49,073 | ||||||||||||||||||
Total
receivables managed
|
753,513 | 738,197 | 55,141 | 68,512 | 141,162 | 139,137 | ||||||||||||||||||
Less
receivables sold
|
645,715 | 506,783 | 52,214 | 58,871 | 131,893 | 123,384 | ||||||||||||||||||
Receivables
not sold
|
107,798 | 231,414 | $ | 2,927 | $ | 9,641 | $ | 9,269 | $ | 15,753 | ||||||||||||||
Allowance
for uncollectible accounts
|
(3,913 | ) | (9,840 | ) | ||||||||||||||||||||
Allowances
for promotional credit programs
|
(1,588 | ) | (5,040 | ) | ||||||||||||||||||||
Current
portion of customer accounts
|
||||||||||||||||||||||||
receivable,
net
|
61,125 | 136,600 | ||||||||||||||||||||||
Long-term
customer accounts
|
||||||||||||||||||||||||
receivable,
net
|
$ | 41,172 | $ | 79,934 | ||||||||||||||||||||
(1)
Amounts are based on end of period balances and accounts could be
represented in both the past due and reaged columns shown
above.
|
Net
Credit
|
Net
Credit
|
|||||||||||||||||||||||||||||||
Average
Balances
|
Charge-offs
(2)
|
Average
Balances
|
Charge-offs
(2)
|
|||||||||||||||||||||||||||||
Three
Months Ended
|
Three
Months Ended
|
Nine
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||
October
31,
|
October
31,
|
October
31,
|
October
31,
|
|||||||||||||||||||||||||||||
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
|||||||||||||||||||||||||
Primary
portfolio:
|
||||||||||||||||||||||||||||||||
Installment
|
$ | 508,241 | $ | 558,195 | $ | 485,951 | $ | 555,090 | ||||||||||||||||||||||||
Revolving
|
42,420 | 33,408 | 44,375 | 33,614 | ||||||||||||||||||||||||||||
Subtotal
|
550,661 | 591,603 | $ | 3,849 | $ | 5,860 | 530,326 | 588,704 | $ | 10,859 | $ | 14,261 | ||||||||||||||||||||
Secondary
portfolio:
|
||||||||||||||||||||||||||||||||
Installment
|
151,783 | 152,705 | 2,098 | 2,236 | 151,883 | 155,003 | 5,179 | 5,840 | ||||||||||||||||||||||||
Total
receivables managed
|
702,444 | 744,308 | 5,947 | 8,096 | 682,209 | 743,707 | 16,038 | 20,101 | ||||||||||||||||||||||||
Less
receivables sold
|
644,447 | 553,550 | 5,748 | 6,977 | 653,735 | 575,407 | 15,473 | 18,069 | ||||||||||||||||||||||||
Receivables
not sold
|
$ | 57,997 | $ | 190,758 | $ | 199 | $ | 1,119 | $ | 28,474 | $ | 168,300 | $ | 565 | $ | 2,032 | ||||||||||||||||
(2)
Amounts represent total credit charge-offs, net of recoveries, on total
receivables.
|
January
31,
|
October
31,
|
|||||||
2009
|
2009
|
|||||||
Revolving
credit facility for $210 million maturing in August 2011
|
$ | 62,900 | $ | 125,000 | ||||
Unsecured
revolving line of credit for $10 million maturing in September
2009
|
- | - | ||||||
Other
long-term debt
|
17 |