BENTONVILLE, Ark., Nov. 16, 2017 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ:CRMT) today announced its operating results for the second quarter of fiscal year 2018.
Highlights of second quarter operating results:
Highlights of six-month operating results:
“We are pleased with our results for the quarter and are very excited about our future. We are proud of our associates and their dedication to serving our customers at the highest levels. We will continue to get better as we stay focused on the success of our customers,” said William H. “Hank” Henderson, Chief Executive Officer of America’s Car-Mart, Inc. “This is a face-to-face, high touch business and our customers deserve great service, always. The investments we have made and continue to make in the business have been made for one reason only - to improve our offering to the customers we serve, which in turn will enhance shareholder value.”
“We will always look for healthy growth opportunities and believe that our business model will continue to be scaled by attracting quality people to serve as General Managers,” said Mr. Henderson. “Recruiting, training and supporting our General Managers, the face of our Company, will always be our number one priority since great customer service starts and ends with our General Managers.”
“It was nice to see the increase in bottom line profits for the quarter, and we will continue to improve to make our business stronger as we move forward. Selling, general, and administrative expenses as a percentage of sales did increase for the quarter as we have spent several years building an infrastructure to support a growing business. Most recently, our investments have been heavily focused on General Manager Recruitment, Training and Advancement, and Collections Support as well as improvements with our sales and marketing efforts,” said Jeff Williams, President. “Our continuing focus on solid inventory management has resulted in an increase in our gross margin percentage, and we expect continuing success with these efforts. Sales volume productivity was flat for the quarter but up sequentially. We expect productivity will continue to improve as we move forward, which will allow us to leverage our expenses. Additionally, we will be opening a new dealership in Centerton, Arkansas to take advantage of market opportunities in Northwest Arkansas. Our expectations for this dealership are high.”
“We repurchased 406,930 shares of common stock (5.4%) during the quarter at an average price of approximately $40. Since February 2010 we have repurchased 5.3 million shares (46%) at an average price of approximately $33. Our balance sheet is very strong with debt to finance receivables of 28%,” added Mr. Williams. “Today, our Board of Directors approved up to an additional one million shares for repurchase. We plan to continue to repurchase shares opportunistically as we move forward.”
“Also, today, our Board of Directors appointed Vickie D. Judy as the Company’s Chief Financial Officer effective January 1, 2018,” said Mr. Williams. “Vickie has been with the Company for over seven years, most recently as our Principal Accounting Officer, and has earned the highest respect and admiration from her co-workers as well as our business partners. We are excited for Vickie and for the additional contributions she will make to the Company in her new role.”
Conference Call
Management will be holding a conference call on Friday, November 17, 2017 at 11:00 a.m. Eastern Time to discuss quarterly results. A live audio of the conference call will be accessible to the public by calling (877) 776-4031. International callers dial (631) 291-4132. Callers should dial in approximately 10 minutes before the call begins. A conference call replay will be available two hours following the call for thirty days and can be accessed by calling (855) 859-2056 (domestic) or (404) 537-3406 (international), conference call ID #9874799.
About America's Car-Mart
America’s Car-Mart, Inc. (the “Company”) operates 140 automotive dealerships in eleven states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in small cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information, including investor presentations, on America’s Car-Mart, please visit our website at www.car-mart.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company’s future objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations regarding future operating performance and can generally be identified by words such as “may,” “will,” “should,” “could, “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and other similar words or phrases. Specific events addressed by these forward-looking statements include, but are not limited to:
These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:
Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
____________________________
Contacts: William H. (“Hank”) Henderson, CEO or Jeffrey A. Williams, President at (479) 464-9944
America's Car-Mart, Inc. Consolidated Results of Operations (Operating Statement Dollars in Thousands) | |||||||||||||||||
% Change | As a % of Sales | ||||||||||||||||
Three Months Ended | 2017 | Three Months Ended | |||||||||||||||
October 31, | vs. | October 31, | |||||||||||||||
2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||||
Operating Data: | |||||||||||||||||
Retail units sold | 11,932 | 12,167 | (1.9 | )% | |||||||||||||
Average number of stores in operation | 140 | 143 | (2.1 | ) | |||||||||||||
Average retail units sold per store per month | 28.4 | 28.4 | - | ||||||||||||||
Average retail sales price | $ | 10,418 | $ | 10,491 | (0.7 | ) | |||||||||||
Same store revenue growth | 0.6 | % | 11.6 | % | |||||||||||||
Net charge-offs as a percent of average finance receivables | 7.5 | % | 7.7 | % | |||||||||||||
Collections as a percent of average finance receivables | 12.2 | % | 12.6 | % | |||||||||||||
Average percentage of finance receivables-current (excl. 1-2 day) | 80.1 | % | 80.3 | % | |||||||||||||
Average down-payment percentage | 5.8 | % | 5.6 | % | |||||||||||||
Period End Data: | |||||||||||||||||
Stores open | 140 | 143 | (2.1 | )% | |||||||||||||
Accounts over 30 days past due | 4.1 | % | 4.8 | % | |||||||||||||
Finance receivables, gross | $ | 492,495 | $ | 474,295 | 3.8 | % | |||||||||||
Operating Statement: | |||||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | 130,427 | $ | 133,170 | (2.1 | )% | 100.0 | % | 100.0 | % | |||||||
Interest income | 18,691 | 17,040 | 9.7 | 14.3 | 12.8 | ||||||||||||
Total | 149,118 | 150,210 | (0.7 | ) | 114.3 | 112.8 | |||||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 75,623 | 77,997 | (3.0 | ) | 58.0 | 58.6 | |||||||||||
Selling, general and administrative | 23,727 | 22,654 | 4.7 | 18.2 | 17.0 | ||||||||||||
Provision for credit losses | 38,746 | 39,441 | (1.8 | ) | 29.7 | 29.6 | |||||||||||
Interest expense | 1,324 | 1,036 | 27.8 | 1.0 | 0.8 | ||||||||||||
Depreciation and amortization | 1,108 | 1,080 | 2.6 | 0.8 | 0.8 | ||||||||||||
(Gain) Loss on disposal of property and equipment | 57 | (1 | ) | (5,800.0 | ) | 0.0 | (0.0 | ) | |||||||||
Total | 140,585 | 142,207 | (1.1 | ) | 107.8 | 106.8 | |||||||||||
Income before taxes | 8,533 | 8,003 | 6.5 | 6.0 | |||||||||||||
Provision for income taxes | 2,564 | 2,985 | 2.0 | 2.2 | |||||||||||||
Net income | $ | 5,969 | $ | 5,018 | 4.6 | 3.8 | |||||||||||
Dividends on subsidiary preferred stock | $ | (10 | ) | $ | (10 | ) | |||||||||||
Net income attributable to common shareholders | $ | 5,959 | $ | 5,008 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.82 | $ | 0.64 | |||||||||||||
Diluted | $ | 0.79 | $ | 0.62 | |||||||||||||
Weighted average number of shares used in calculation: | |||||||||||||||||
Basic | 7,354,499 | 7,833,061 | |||||||||||||||
Diluted | 7,555,026 | 8,136,961 | |||||||||||||||
America's Car-Mart, Inc. Consolidated Results of Operations (Operating Statement Dollars in Thousands) | |||||||||||||||||
% Change | As a % of Sales | ||||||||||||||||
Six Months Ended | 2017 | Six Months Ended | |||||||||||||||
October 31, | vs. | October 31, | |||||||||||||||
2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||||
Operating Data: | |||||||||||||||||
Retail units sold | 23,769 | 24,124 | (1.5 | )% | |||||||||||||
Average number of stores in operation | 140 | 143 | (2.1 | ) | |||||||||||||
Average retail units sold per store per month | 28.3 | 28.1 | 0.7 | ||||||||||||||
Average retail sales price | $ | 10,402 | $ | 10,442 | (0.4 | ) | |||||||||||
Same store revenue growth | 1.3 | % | 5.8 | % | |||||||||||||
Net charge-offs as a percent of average finance receivables | 13.8 | % | 14.0 | % | |||||||||||||
Collections as a percent of average finance receivables | 24.6 | % | 25.6 | % | |||||||||||||
Average percentage of finance receivables-current (excl. 1-2 day) | 80.5 | % | 80.2 | % | |||||||||||||
Average down-payment percentage | 6.0 | % | 5.8 | % | |||||||||||||
Period End Data: | |||||||||||||||||
Stores open | 140 | 143 | (2.1 | )% | |||||||||||||
Accounts over 30 days past due | 4.1 | % | 4.8 | % | |||||||||||||
Finance receivables, gross | $ | 492,495 | $ | 474,295 | 3.8 | % | |||||||||||
Operating Statement: | |||||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | 258,701 | $ | 262,854 | (1.6 | )% | 100.0 | % | 100.0 | % | |||||||
Interest income | 36,835 | 33,196 | 11.0 | 14.2 | 12.6 | ||||||||||||
Total | 295,536 | 296,050 | (0.2 | ) | 114.2 | 112.6 | |||||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 150,829 | 153,510 | (1.7 | ) | 58.3 | 58.4 | |||||||||||
Selling, general and administrative | 47,592 | 45,822 | 3.9 | 18.4 | 17.4 | ||||||||||||
Provision for credit losses | 72,906 | 72,822 | 0.1 | 28.2 | 27.7 | ||||||||||||
Interest expense | 2,496 | 1,980 | 26.1 | 1.0 | 0.8 | ||||||||||||
Depreciation and amortization | 2,187 | 2,176 | 0.5 | 0.8 | 0.8 | ||||||||||||
Loss on disposal of property and equipment | 104 | 399 | (73.9 | ) | 0.0 | 0.2 | |||||||||||
Total | 276,114 | 276,709 | (0.2 | ) | 106.7 | 105.3 | |||||||||||
Income before taxes | 19,422 | 19,341 | 7.5 | 7.4 | |||||||||||||
Provision for income taxes | 6,461 | 7,214 | 2.5 | 2.7 | |||||||||||||
Net income | $ | 12,961 | $ | 12,127 | 5.0 | 4.6 | |||||||||||
Dividends on subsidiary preferred stock | $ | (20 | ) | $ | (20 | ) | |||||||||||
Net income attributable to common shareholders | $ | 12,941 | $ | 12,107 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 1.74 | $ | 1.53 | |||||||||||||
Diluted | $ | 1.69 | $ | 1.48 | |||||||||||||
Weighted average number of shares used in calculation: | |||||||||||||||||
Basic | 7,451,673 | 7,890,993 | |||||||||||||||
Diluted | 7,661,668 | 8,161,019 | |||||||||||||||
America's Car-Mart, Inc. Consolidated Balance Sheet and Other Data (Dollars in Thousands) | ||||||||||||
October 31, | April 30, | October 31, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
Cash and cash equivalents | $ | 358 | $ | 434 | $ | 170 | ||||||
Finance receivables, net | $ | 376,577 | $ | 357,161 | $ | 362,955 | ||||||
Inventory | $ | 31,315 | $ | 30,129 | $ | 32,446 | ||||||
Total assets | $ | 444,007 | $ | 424,258 | $ | 435,239 | ||||||
Total debt | $ | 137,950 | $ | 117,944 | $ | 124,696 | ||||||
Treasury stock | $ | 182,112 | $ | 162,024 | $ | 149,594 | ||||||
Stockholders' equity | $ | 226,910 | $ | 233,008 | $ | 234,866 | ||||||
Shares outstanding | 7,177,213 | 7,608,471 | 7,836,335 | |||||||||
Finance receivables: | ||||||||||||
Principal balance | $ | 492,495 | $ | 466,854 | $ | 474,295 | ||||||
Deferred revenue - payment protection plan | (18,956 | ) | (18,472 | ) | (18,476 | ) | ||||||
Deferred revenue - service contract | (9,868 | ) | (9,611 | ) | (10,470 | ) | ||||||
Allowance for credit losses | (115,918 | ) | (109,693 | ) | (111,340 | ) | ||||||
Finance receivables, net of allowance and deferred revenue | $ | 347,753 | $ | 329,078 | $ | 334,009 | ||||||
Allowance as % of principal balance net of deferred revenue | 25.0 | % | 25.0 | % | 25.0 | % | ||||||
Changes in allowance for credit losses: | ||||||||||||
Six months | ||||||||||||
ended October 31, | ||||||||||||
2017 | 2016 | |||||||||||
Balance at beginning of period | $ | 109,693 | $ | 102,485 | ||||||||
Provision for credit losses | 72,906 | 72,822 | ||||||||||
Charge-offs, net of collateral recovered | (66,681 | ) | (63,967 | ) | ||||||||
Balance at end of period | $ | 115,918 | $ | 111,340 | ||||||||
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