THE WOODLANDS, Texas - Conn's, Inc. (NASDAQ: NASDAQ:CONN), a specialty retailer of home goods and electronics, has been notified by the Nasdaq Stock Market of non-compliance with listing rules due to a delayed quarterly filing. The company revealed on Monday that it received a delinquency notification on June 20, 2024, for not filing its Form 10-Q for the quarter ended April 30, 2024, on time.
The notice from Nasdaq, which currently does not affect the trading of Conn's common stock, grants the company 60 days, until August 19, 2024, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may allow Conn's up to December 16, 2024, to file the overdue report and regain compliance. However, the company has not guaranteed that it will meet these deadlines.
Conn's operates over 550 stores across 15 states and offers products such as furniture, mattresses, appliances, and consumer electronics. The retailer also provides next-day delivery and personalized payment options, including an in-house credit program.
The press release also contained forward-looking statements regarding the integration of W.S. Badcock business and potential risks, such as the impact on customer retention and the ability to achieve synergies. However, these projections are speculative and subject to a variety of factors that could cause actual results to differ materially.
The company's ability to maintain its Nasdaq listing is contingent upon the timely filing of its SEC reports and managing risks detailed in its Annual Report on Form 10-K and other SEC filings. Conn's has not provided further details on the reasons for the delay or the specific measures it will take to address the compliance issue. This information is based on a press release statement from Conn's, Inc.
In other recent news, Conn's Inc has reported significant financial developments. The company secured a $25 million term loan agreement, leading to the issuance of warrants for purchasing additional shares. This strategic financial arrangement is part of Conn's ongoing efforts to manage its capital structure and finance its operations.
Conn's Inc also announced its fourth quarter results, reporting a narrower adjusted net loss. However, the company's revenue fell short of expectations. The total consolidated revenue for the quarter increased by 9.3% compared to the same period last year, mainly due to the acquisition of W.S. Badcock.
In analyst news, Jefferies has reduced the price target for Conn's Inc but maintained a Buy rating on the stock. The adjustment follows a review of Conn's acquisition of Badcock and an analysis of the company's master trust data. Despite persistent credit challenges and top-line headwinds, the firm maintains a positive outlook on the retailer.
These are recent developments in the company's performance and financial strategy, as reported by various sources. As always, investors are advised to consider these facts in the context of their overall investment strategies.
InvestingPro Insights
As Conn's, Inc. navigates through its current Nasdaq non-compliance situation, a closer look at the company's financial health and stock performance offers key insights. According to InvestingPro, Conn's operates with a significant debt burden and may have trouble making interest payments on its debt, which could be a contributing factor to the compliance issues it faces.
InvestingPro Data shows that Conn's has a market capitalization of $40.81 million and is trading at a low Price / Book multiple of 0.11 as of the last twelve months ending Q4 2024. This valuation suggests the stock is currently undervalued, which is further supported by the fact that the stock is trading near its 52-week low. Moreover, the company's revenue for the last twelve months stands at $1,237.68 million, although it has experienced a revenue decline of 7.81% during the same period.
From a stock performance perspective, Conn's has seen its price fall significantly, with a 1-month total return of -44.16% as of the latest data point. The InvestingPro Tips also indicate that the stock is in oversold territory according to the Relative Strength Index (RSI), which might interest investors looking for potential rebounds or value plays.
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