1223389--3/27/2008--CONNS

related topics

{capital, credit, financial}

{product, market, service}

{customer, product, revenue}

{cost, operation, labor}

{stock, price, operating}

{condition, economic, financial}

{system, service, information}

{regulation, change, law}

{operation, international, foreign}

{acquisition, growth, future}

{property, intellectual, protect}

{operation, natural, condition}

{financial, litigation, operation}

OUR SUCCESS DEPENDS ON OUR ABILITY TO OPEN AND OPERATE PROFITABLY NEW STORES IN EXISTING, ADJACENT AND NEW GEOGRAPHIC MARKETS. IF WE ARE UNABLE TO MANAGE OUR GROWING BUSINESS, OUR REVENUES MAY NOT INCREASE AS ANTICIPATED, OUR COST OF OPERATIONS MAY RISE AND OUR PROFITABILITY MAY DECLINE. THE INABILITY TO OBTAIN FUNDING FOR OUR CREDIT OPERATIONS THROUGH SECURITIZATION FACILITIES OR OTHER SOURCES MAY ADVERSELY AFFECT OUR BUSINESS AND EXPANSION PLANS. AN INCREASE IN INTEREST RATES MAY ADVERSELY AFFECT OUR PROFITABILITY. WE HAVE SIGNIFICANT FUTURE CAPITAL NEEDS WHICH WE MAY BE UNABLE TO FUND, AND WE MAY NEED ADDITIONAL FUNDING SOONER THAN CURRENTLY ANTICIPATED. A DECREASE IN OUR CREDIT SALES OR A DECLINE IN CREDIT QUALITY COULD LEAD TO A DECREASE IN OUR PRODUCT SALES AND PROFITABILITY. WHICH COULD REDUCE OUR NET SALES. WE FACE SIGNIFICANT COMPETITION FROM NATIONAL, REGIONAL AND LOCAL RETAILERS OF HOME APPLIANCES AND CONSUMER ELECTRONICS. IF NEW PRODUCTS ARE NOT INTRODUCED OR CONSUMERS DO NOT ACCEPT NEW PRODUCTS, OUR SALES MAY DECLINE. IF WE FAIL TO ANTICIPATE CHANGES IN CONSUMER PREFERENCES, OUR SALES MAY DECLINE. A DISRUPTION IN OUR RELATIONSHIPS WITH, OR IN THE OPERATIONS OF, ANY OF OUR KEY SUPPLIERS COULD CAUSE OUR SALES TO DECLINE. YOU SHOULD NOT RELY ON OUR COMPARABLE STORE SALES AS AN INDICATION OF OUR FUTURE RESULTS OF OPERATIONS BECAUSE THEY FLUCTUATE SIGNIFICANTLY. BECAUSE WE EXPERIENCE SEASONAL FLUCTUATIONS IN OUR SALES, OUR QUARTERLY RESULTS WILL FLUCTUATE, WHICH COULD ADVERSELY AFFECT OUR COMMON STOCK PRICE. OUR BUSINESS COULD BE ADVERSELY AFFECTED BY CHANGES IN CONSUMER PROTECTION LAWS AND REGULATIONS. PENDING LITIGATION RELATING TO THE SALE OF CREDIT INSURANCE AND THE SALE OF SERVICE MAINTENANCE AGREEMENTS IN THE RETAIL INDUSTRY COULD ADVERSELY AFFECT OUR BUSINESS. OUR OPERATING RESULTS COULD SUFFER. BECAUSE OUR STORES ARE LOCATED IN TEXAS, LOUISIANA AND OKLAHOMA, WE ARE SUBJECT TO REGIONAL RISKS. OUR INFORMATION TECHNOLOGY INFRASTRUCTURE IS VULNERABLE TO DAMAGE THAT COULD HARM OUR BUSINESS. IF WE ARE UNABLE TO MAINTAIN OUR INSURANCE LICENSES IN THE STATES WE OPERATE OUR OPERATING RESULTS COULD SUFFER. IF WE ARE UNABLE TO MAINTAIN OUR CURRENT INSURANCE COVERAGE FOR OUR SERVICE MAINTENANCE AGREEMENTS, OUR CUSTOMERS COULD INCUR ADDITIONAL COSTS AND OUR REPAIR EXPENSES COULD INCREASE, WHICH COULD ADVERSELY AFFECT OUR FINANCIAL CONDITION AND RESULTS OF OPERATIONS. IF WE ARE UNABLE TO MAINTAIN GROUP CREDIT INSURANCE POLICIES FROM INSURANCE CARRIERS, WHICH ALLOW US TO OFFER THEIR CREDIT INSURANCE PRODUCTS TO OUR CUSTOMERS PURCHASING ON CREDIT, OUR REVENUES COULD BE REDUCED AND BAD DEBTS MIGHT INCREASE. CHANGES IN PREMIUM AND COMMISSION RATES ALLOWED BY REGULATORS ON OUR CREDIT INSURANCE AND SERVICE MAINTENANCE AGREEMENTS AS ALLOWED BY THE LAWS AND REGULATIONS IN THE STATES IN WHICH WE OPERATE COULD AFFECT OUR REVENUES. CHANGES IN TRADE REGULATIONS, CURRENCY FLUCTUATIONS AND OTHER FACTORS BEYOND OUR CONTROL COULD AFFECT OUR BUSINESS. WE MAY BE UNABLE TO PROTECT OUR INTELLECTUAL PROPERTY RIGHTS, WHICH COULD IMPAIR OUR NAME AND REPUTATION. FAILURE TO PROTECT THE SECURITY OF OUR CUSTOMER'S INFORMATION COULD EXPOSE US TO LITIGATION, JUDGMENTS FOR DAMAGES AND UNDERMINE THE TRUST PLACED WITH US BY OUR CUSTOMERS. ANY CHANGES IN THE TAX LAWS OF THE STATES IN WHICH WE OPERATE COULD AFFECT OUR STATE TAX LIABILITIES. ADDITIONALLY, BEGINNING OPERATIONS IN NEW STATES COULD ALSO AFFECT OUR STATE TAX LIABILITIES. DETERMINATION TO DRIVE TO OUR STORES, AND CAUSE US TO RAISE OUR DELIVERY CHARGES.

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1223389--3/27/2008--CONNS_INC