Conn's Inc. Announces Transformative Merger with W.S. Badcock and Strategic Priorities for Growth

2024-04-15

In a recent conference call, Conn's Inc. discussed various aspects of their business, with a particular focus on the integration with W.S. Badcock and the financial results for the fourth quarter and fiscal year 2024. The call was attended by key participants such as Norman Miller, the company's CEO; Tim Santo, the CFO; and Derek Sommers, an analyst.

One of the significant announcements made by Conn's Inc. was the transformative merger with Badcock on December 18, 2023. This merger created a leading home goods retailer with a vast presence, boasting over 550 retail locations spread across 15 states in the Southern United States. Following this integration, the company outlined strategic priorities, which included transitioning Badcock to Conn's credit program, optimizing merchandising strategies, and focusing on driving revenue and cost synergies.

During the call, there was a detailed discussion on Conn's credit infrastructure, which has undergone significant evolution over the past 8 years. This evolution has enabled the company to effectively cater to credit-constrained customers and drive growth in lease-to-own services. Additionally, the call touched upon various operational aspects such as last-mile delivery services, appliance and TV repairs, e-commerce sales figures, and strategies aimed at enhancing Badcock's e-commerce sales.

From a financial perspective, Conn's highlighted the impact of one-time costs and the Badcock transaction on their first-quarter results. The company expressed optimism regarding benefits expected from their new operating model in the second quarter. Projections indicated that synergies from the merger could lead to annual adjusted EBITDA ranging between $180 million to $220 million and total annual sales between $2 billion to $2.2 billion by the end of the next fiscal year.

The conference call concluded with expressions of appreciation for the efforts of employees involved in integrating the two businesses and anticipation for future results as the companies continue to merge. Overall, the call provided valuable insights into Conn's Inc.'s strategic priorities, financial performance, and operational initiatives.