Daily News
From Home Furnishing Business
Conn’s CFO Resigns Amid Credit Losses
December 9,
2014 by in Executive Changes, Financial Reports, Industry 
The chief financial officer for home furnishings and electronics retailer Conn’s (NASDAQ: CONN) has left the company in the midst of the retailer’s announcement to withdraw its guidance and to change its management structure to recoup losses from its financing business.
The company announced its third quarter earnings Monday afternoon and in the earnings release said Brian Taylor, former CFO, was out. The Woodland, Texas, company has named Mark Hanley, chief accounting officer, as its interim CFO.
In the release the company said it is creating a credit risk and compliance committee to address the credit operations, which it said had not been “acceptably accurate.” The company’s board also approved two new positions — president and chief risk officer.
“Customer credit scores continue to deteriorate,” said CEO Theodore Wright. “Despite underwriting changes reducing the percentage of originations to customers with scores below 550, the proportion of customers in late stage delinquency with a score below 550 increased this year, though it has remained relatively constant since the end of the second quarter. As a result, delinquency rates have increased and losses are being realized at a faster pace than originally anticipated.”
The company reported a net loss of $3.06 million for the third quarter ended Oct. 31, compared to net profit of $24.4 million in the third quarter last year. Net sales for the third quarter increased 19 percent to $304.6 million, compared to $257 million in the third quarter of last year. Sales were led by an increase in furniture and mattress sales of 37 percent to $86 million.