America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the
“Company”), one of the largest publicly held automotive retailers
in the United States, today reported financial results for the
second quarter ended October 31, 2023.
Second Quarter Key Highlights (Q2 FY24 vs.
Q2 FY23)
- Revenues increased 2.8% to $361.6 million
- Retail unit sales were down 4.6%
- Gross margin increased to 34.3% from 32.1%
- Customer count increased 6.0% to 104,596
- Net charge-offs as a % of average finance receivables were 7.2%
vs. 5.8%
- Allowance for credit loss adjusted to 26.04% (EPS reduction of
$3.40 after tax)
- Loss per share $4.30 vs. $0.48 diluted earnings per share
- Expanding dealership footprint with a strategic one-location
acquisition expected to close in Q3; enhancing market presence and
customer service capabilities
“Our second quarter results reflect the Car-Mart
team’s commitment and focus on delivering value to our customers
during a challenging economy. Revenue was up 2.8%, primarily
due to interest income despite unit sales being down 4.6% during
the quarter. The persistent inflationary environment impacted
existing customers, which was evident in our credit losses. This
required an increase in the allowance for credit losses which
subsequently impacted the bottom line for the quarter. We believe
these headwinds regarding credit loss are shorter-term in nature.
The operational investments we’ve made are driving
greater efficiencies in the business, one of which was gross
margin, which was a bright spot during the quarter. However, we are
equally focused on being more agile regarding our cost structure to
effectively navigate this environment. We believe this will leave
our consumer and our Company well-positioned for success in the
long term.”
Doug Campbell President and CEO, America’s
Cart-Mart
Key Operating Metrics
Dollars in thousands, except per share data. Dollar and
percentage changes may not recalculate due to rounding. Charts may
not be to scale.
An infographic accompanying this announcement is available
at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bb686d9e-b17b-4930-97f9-4fa594c821cc
TOTAL REVENUE – The 2.8%
increase in revenue resulted from a 23% increase in interest income
and a 5.6% increase in average retail sales price. Approximately
40% of this increase was related to the vehicle selling price. This
was partially offset by a 4.6% decrease in units sold.
SALES – Sales for the quarter
were 15,162 units vs. 15,885 units, down 4.6% vs. the prior year
quarter. August and September sales were strong collectively
posting a year-over-year (YOY) gain on unit sales, but October
displayed mixed results. Overall website traffic was up YOY when
looking at the number of unique visitors to our website. Online
credit applications (OCAs) were also up YOY by 19%; however,
conversions to sales declined in October. Although affordability of
used vehicles in the current market continues to present some
challenges, we continue to make good progress in terms of lowering
purchase price, vehicle mileage, and providing newer model year
vehicles for our customers to choose from. This is and will
continue to contribute to improved affordability. Additionally, we
believe certain underwriting changes contributed to some of the
sales decline in October as we balance onboarding new stores, sales
volumes, and new underwriting guidelines through our loan
origination system (LOS).
GROSS PROFIT – Gross profit per
unit was $6,835 compared to $6,132 for the prior year’s second
quarter. The improvement in gross profit over the prior year's
quarter resulted from our continued focus on inventory efficiencies
in procurement, remarketing, and repairs. We have identified
strategic partnerships to assist us in providing more lower-cost
units, which should drive further improvements to gross
profits.
NET CHARGE-OFFS – Net
charge-offs (NCOs) as a percentage of average finance receivables
were 7.2% compared to 5.8% during the prior year's second quarter,
signaling a return to pre-pandemic net charge-off percentages. As a
comparison, NCOs for the five-year period preceding the pandemic
averaged 7.0% during the second quarters. Both the frequency and
severity of losses played a factor in the increase, with frequency
driving approximately two-thirds of the increase primarily due to
the external environment. Severity was driven by longer contract
terms and lower recovery values. We have experienced increases in
both frequency and severity on some 2021/2022 pools as well.
Sequentially, our accounts 30+ days past due improved by 80 basis
points as they dropped from 4.4% to 3.6%. This is important as
delinquencies are a leading indicator to overall credit loss, and
we are seeing evidence of improved losses in November.
ALLOWANCE FOR CREDIT LOSSES –
The Company increased the allowance for credit loss from 23.91% to
26.04% sequentially, resulting in a $28 million charge to the
provision (basic earnings per share loss of $3.40 after tax).
This non-cash adjustment reflects a one-time increase primarily
driven by the recent increases in net charge-offs, underscoring the
challenges and economic pressure on our subprime consumer. As
vehicle prices normalize and potentially decrease over time, credit
losses are expected to decline. Our quarterly cash-on-cash returns
are strong and in line with historical returns. Management is
addressing the credit loss increases through proactive risk
management from both the vehicle aspect and the customer aspect as
well as enhancing underwriting guidelines to improve the profile of
the portfolio.
UNDERWRITING – Approximately
45% of sales at quarter-end are now being originated through our
new LOS. Despite the higher than expected NCOs experienced
during the quarter our returns are still attractive. However, we
look for continuous improvement and adaptability in our
underwriting and our LOS will allow us to be more nimble with that.
Therefore, our team worked hard on implementing some of the new
underwriting changes earlier than planned. Those included
driving higher down payments and lower terms for originations on
the LOS. The initial results were very positive, with down
payments on LOS averaging 5.5% vs. 4.6% for deals originated within
our legacy system. Similar improvements were seen related to
originating terms lengths as those fell to approximately 42.0
months on LOS compared to approximately 44.0 months for deals
originated in the legacy system. This drove average originating
term downward to 44.1 months for the quarter, down from 44.7 months
sequentially. This represented the largest reduction in term since
July 2019.
SG&A EXPENSE – SG&A
expense was $44.9 million compared to $42.9 million during last
year’s second quarter; approximately 64% of our SG&A is
people-related to serve a growing base of customers, now at 104,596
customers which is 6% higher than the prior year’s quarter.
SG&A per average account was $429 compared to $439 during the
prior year’s second quarter. During the quarter we began to take
deliberate steps to reduce costs prospectively. Approximately 75%
of our SG&A spend is at the field and dealership level. Since
the quarter end, we have reduced the size of our corporate
workforce by 10% through a series of strategic decisions, limited
hiring, reduced marketing spend and curtailed the use of some
professional services. We will continue to evaluate spending at
both the dealership and corporate level. We believe these
reductions will assist in mitigating the increased costs of
doing business in this inflationary environment.
ACQUISITIONS & DISPOSITIONS
– We have entered into an agreement to purchase Central
Auto Sales in Hot Springs, Arkansas (“Central Auto”). Central Auto
is a 25-year-old company owned by Mike and Stacey Steven-Assheuer.
We are very excited about their business, the strong culture they
have created, and the opportunity to step into this successful
operation. The structure will be consistent with
prior transactions whereby we will not acquire credit
risk, and the sellers may receive a performance based
earn-out.
We also have several stores which we are
performance managing by restricting capital. We expect that
restricting investments to these under-performing locations will
rebalance our portfolio, allowing us to prioritize higher-ROI
locations and redeploy cash more effectively. As
mentioned before, we will be more agile in deploying strategies
that provide the best return for our shareholders. Lastly, we
closed an additional location during the quarter.
TERM SECURITIZATION – Our April 2022
series of asset-back non-recourse notes are now eligible for
optional redemption at the Company’s discretion, as the remaining
principal balance is 10% or less of the original principal balance
and the purchase price conditions have been met.
Key Operating Results
|
|
Three Months Ended |
|
|
|
|
October 31, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Operating
Data: |
|
|
|
|
|
|
|
Retail units sold |
|
|
15,162 |
|
|
|
15,885 |
|
|
(4.6 |
) |
% |
Average number of stores in
operation |
|
|
154 |
|
|
|
154 |
|
|
- |
|
|
Average retail units sold per
store per month |
|
|
32.8 |
|
|
|
34.4 |
|
|
(4.7 |
) |
|
Average retail sales
price |
|
$ |
19,035 |
|
|
$ |
18,025 |
|
|
5.6 |
|
|
Total gross profit per retail
unit sold |
|
$ |
6,835 |
|
|
$ |
6,132 |
|
|
11.5 |
|
|
Total gross profit
percentage |
|
|
34.3 |
% |
|
|
32.1 |
% |
|
|
|
Same store revenue growth |
|
|
2.7 |
% |
|
|
22.2 |
% |
|
|
|
Net charge-offs as a percent
of average finance receivables |
|
|
7.2 |
% |
|
|
5.8 |
% |
|
|
|
Total collected (principal,
interest and late fees) |
|
$ |
168,282 |
|
|
$ |
150,765 |
|
|
11.6 |
|
|
Average total collected per
active customer per month |
|
$ |
533 |
|
|
$ |
514 |
|
|
3.7 |
|
|
Average percentage of finance
receivables-current (excl. 1-2 day) |
|
|
80.4 |
% |
|
|
80.8 |
% |
|
|
|
Average down-payment
percentage |
|
|
4.9 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
October 31, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Operating
Data: |
|
|
|
|
|
|
|
Retail units sold |
|
|
31,074 |
|
|
|
31,421 |
|
|
(1.1 |
) |
% |
Average number of stores in
operation |
|
|
155 |
|
|
|
154 |
|
|
0.6 |
|
|
Average retail units sold per
store per month |
|
|
33.4 |
|
|
|
34.0 |
|
|
(1.8 |
) |
|
Average retail sales
price |
|
$ |
18,914 |
|
|
$ |
18,045 |
|
|
4.8 |
|
|
Total gross profit per retail
unit sold |
|
$ |
6,801 |
|
|
$ |
6,326 |
|
|
7.5 |
|
|
Total gross profit
percentage |
|
|
34.4 |
% |
|
|
33.2 |
% |
|
|
|
Same store revenue growth |
|
|
5.4 |
% |
|
|
21.4 |
% |
|
|
|
Net charge-offs as a percent
of average finance receivables |
|
|
13.1 |
% |
|
|
11.0 |
% |
|
|
|
Total collected (principal,
interest and late fees) |
|
$ |
334,029 |
|
|
$ |
298,986 |
|
|
11.7 |
|
|
Average total collected per
active customer per month |
|
$ |
534 |
|
|
$ |
515 |
|
|
3.7 |
|
|
Average percentage of finance
receivables-current (excl. 1-2 day) |
|
|
80.4 |
% |
|
|
80.6 |
% |
|
|
|
Average down-payment
percentage |
|
|
4.9 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End
Data: |
|
|
|
|
|
|
|
Stores open |
|
|
153 |
|
|
|
154 |
|
|
(0.6 |
) |
% |
Accounts over 30 days past
due |
|
|
3.6 |
% |
|
|
3.6 |
% |
|
|
|
Active customer count |
|
|
104,596 |
|
|
|
98,636 |
|
|
6.0 |
|
|
Principal balance of finance
receivable |
|
$ |
1,463,398 |
|
|
$ |
1,259,649 |
|
|
16.2 |
|
|
Weighted average total
contract term |
|
|
47.3 |
|
|
|
44.8 |
|
|
5.6 |
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly
results on Tuesday, December 5, 2023, at 11 am ET. Participants may
access the conference call via webcast using this
link: Webcast Link Here. To participate via telephone, please
register in advance using this Registration Link. Upon
registration, all telephone participants will receive a one-time
confirmation email detailing how to join the conference call,
including the dial-in number along with a unique PIN that can be
used to access the call. All participants are encouraged to dial 10
minutes prior to the start time. A replay and transcript of the
conference call and webcast will be available on-demand, which will
be available for 12 months.
About America’s Car-Mart, Inc.
America’s Car-Mart, Inc. (the
“Company”) operates automotive dealerships in 12 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 smaller cities throughout the
South-Central United States, selling quality used vehicles and
providing financing for substantially all of its customers. For
more information about America’s Car-Mart, including investor
presentations, please visit our website
at www.car-mart.com.
Forward-Looking Statements
This news 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,” “expect,” “anticipate,”
“intend,” “plan,” “foresee,” and other similar words or phrases.
Specific events addressed by these forward-looking statements may
include, but are not limited to:
-
operational infrastructure investments;
-
same dealership sales and revenue growth;
-
customer growth;
-
gross profit percentages;
-
gross profit per retail unit sold;
-
business acquisitions;
-
technological investments and initiatives;
-
future revenue growth;
-
receivables growth as related to revenue growth;
-
new dealership openings;
-
performance of new dealerships;
-
interest rates;
-
future credit losses;
-
the Company’s collection results, including but not limited to
collections during income tax refund periods;
-
seasonality; and
- the Company’s business, operating
and growth strategies and expectations.
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:
-
general economic conditions in the markets in which the Company
operates, including but not limited to fluctuations in gas prices,
grocery prices and employment levels and inflationary pressure on
operating costs;
-
the availability of quality used vehicles at prices that will be
affordable to our customers, including the impacts of changes in
new vehicle production and sales;
-
the availability of credit facilities and access to capital through
securitization financings or other sources on terms acceptable to
us to support the Company’s business;
-
the Company’s ability to underwrite and collect its contracts
effectively;
-
competition;
-
dependence on existing management;
-
ability to attract, develop, and retain qualified general
managers;
-
changes in consumer finance laws or regulations, including but not
limited to rules and regulations that have recently been enacted or
could be enacted by federal and state governments;
-
the ability to keep pace with technological advances and changes in
consumer behavior affecting our business;
-
security breaches, cyber-attacks, or fraudulent activity;
-
the ability to identify and obtain favorable locations for new or
relocated dealerships at reasonable cost;
-
the ability to successfully identify, complete and integrate new
acquisitions; and
- potential business and economic
disruptions and uncertainty that may result from any future public
health crises and any efforts to mitigate the financial impact and
health risks associated with such developments.
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
Vickie Judy,
CFO479-464-9944Investor_relations@car-mart.com
America’s Car-MartConsolidated Results of
Operations(Unaudited) |
|
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Sales |
|
|
|
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
October 31, |
|
|
|
October 31, |
|
|
|
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
Statements
of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
302,200 |
|
|
$ |
303,554 |
|
|
(0.4 |
) |
% |
|
100.0 |
|
% |
|
100.0 |
% |
|
Interest
income |
|
|
59,382 |
|
|
|
48,286 |
|
|
23.0 |
|
|
|
19.6 |
|
|
|
15.9 |
|
|
|
|
Total |
|
|
361,582 |
|
|
|
351,840 |
|
|
2.8 |
|
|
|
119.6 |
|
|
|
115.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
198,563 |
|
|
|
206,142 |
|
|
(3.7 |
) |
|
|
65.7 |
|
|
|
67.9 |
|
|
Selling, general
and administrative |
|
|
44,863 |
|
|
|
42,911 |
|
|
4.5 |
|
|
|
14.8 |
|
|
|
14.1 |
|
|
Provision for
credit losses |
|
|
135,395 |
|
|
|
88,828 |
|
|
52.4 |
|
|
|
44.8 |
|
|
|
29.3 |
|
|
Interest
expense |
|
|
16,582 |
|
|
|
8,350 |
|
|
98.6 |
|
|
|
5.5 |
|
|
|
2.8 |
|
|
Depreciation and
amortization |
|
|
1,696 |
|
|
|
1,309 |
|
|
29.6 |
|
|
|
0.6 |
|
|
|
0.4 |
|
|
Loss on disposal
of property and equipment |
|
|
74 |
|
|
|
242 |
|
|
- |
|
|
|
0.0 |
|
|
|
- |
|
|
|
|
Total |
|
|
397,173 |
|
|
|
347,782 |
|
|
14.2 |
|
|
|
131.4 |
|
|
|
114.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
taxes |
|
|
(35,591 |
) |
|
|
4,058 |
|
|
|
|
|
(11.8 |
) |
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes |
|
|
(8,128 |
) |
|
|
919 |
|
|
|
|
|
(2.7 |
) |
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(27,463 |
) |
|
$ |
3,139 |
|
|
|
|
|
(9.1 |
) |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
subsidiary preferred stock |
|
$ |
(10 |
) |
|
$ |
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common shareholders |
|
$ |
(27,473 |
) |
|
$ |
3,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(4.30 |
) |
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(4.30 |
) |
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
6,386,208 |
|
|
|
6,368,840 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
6,386,208 |
|
|
|
6,548,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
America’s Car-MartConsolidated Results of
Operations(Unaudited) |
|
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
As a % of Sales |
|
|
|
|
|
Six Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
October 31, |
|
|
|
October 31, |
|
|
|
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
Statements
of Operations: |
|
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|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
613,769 |
|
|
$ |
598,031 |
|
|
2.6 |
|
% |
|
100.0 |
|
% |
|
100.0 |
% |
|
Interest
income |
|
|
115,838 |
|
|
|
92,627 |
|
|
25.1 |
|
|
|
18.9 |
|
|
|
15.5 |
|
|
|
|
Total |
|
|
729,607 |
|
|
|
690,658 |
|
|
5.6 |
|
|
|
118.9 |
|
|
|
115.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
402,442 |
|
|
|
399,257 |
|
|
0.8 |
|
|
|
65.6 |
|
|
|
66.8 |
|
|
Selling, general
and administrative |
|
|
91,333 |
|
|
|
86,145 |
|
|
6.0 |
|
|
|
14.9 |
|
|
|
14.4 |
|
|
Provision for
credit losses |
|
|
231,718 |
|
|
|
165,068 |
|
|
40.4 |
|
|
|
37.8 |
|
|
|
27.6 |
|
|
Interest
expense |
|
|
30,856 |
|
|
|
15,695 |
|
|
96.6 |
|
|
|
5.0 |
|
|
|
2.6 |
|
|
Depreciation and
amortization |
|
|
3,389 |
|
|
|
2,460 |
|
|
37.8 |
|
|
|
0.6 |
|
|
|
0.4 |
|
|
Loss on disposal
of property and equipment |
|
|
240 |
|
|
|
251 |
|
|
(4.4 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
Total |
|
|
759,978 |
|
|
|
668,876 |
|
|
13.6 |
|
|
|
123.8 |
|
|
|
111.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
taxes |
|
|
(30,371 |
) |
|
|
21,782 |
|
|
|
|
|
(4.9 |
) |
|
|
3.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes |
|
|
(7,094 |
) |
|
|
4,946 |
|
|
|
|
|
(1.2 |
) |
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(23,277 |
) |
|
$ |
16,836 |
|
|
|
|
|
(3.8 |
) |
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
subsidiary preferred stock |
|
$ |
(20 |
) |
|
$ |
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common shareholders |
|
$ |
(23,297 |
) |
|
$ |
16,816 |
|
|
|
|
|
|
|
|
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Earnings per
share: |
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|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(3.65 |
) |
|
$ |
2.64 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(3.65 |
) |
|
$ |
2.56 |
|
|
|
|
|
|
|
|
|
|
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Weighted average
number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
6,383,956 |
|
|
|
6,371,083 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
6,383,956 |
|
|
|
6,574,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
America's Car-Mart, Inc. |
Condensed Consolidated Balance Sheet and Other
Data |
(Unaudited) |
|
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
October 31, |
|
April 30, |
|
October 31, |
|
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,313 |
|
|
$ |
9,796 |
|
|
$ |
4,529 |
|
Restricted cash
from collections on auto finance receivables |
$ |
90,180 |
|
|
$ |
58,238 |
|
|
$ |
32,565 |
|
Finance receivables, net
(1) |
|
$ |
1,105,236 |
|
|
$ |
1,063,460 |
|
|
$ |
978,287 |
|
Inventory |
|
$ |
113,846 |
|
|
$ |
109,290 |
|
|
$ |
130,298 |
|
Total assets (1) |
|
$ |
1,487,149 |
|
|
$ |
1,414,737 |
|
|
$ |
1,301,609 |
|
Revolving lines of credit,
net |
|
$ |
165,509 |
|
|
$ |
167,231 |
|
|
$ |
302,123 |
|
Non-recourse notes payable,
net |
|
$ |
579,030 |
|
|
$ |
471,367 |
|
|
$ |
249,622 |
|
Treasury stock |
|
$ |
297,489 |
|
|
$ |
297,421 |
|
|
$ |
297,421 |
|
Total equity |
|
$ |
476,609 |
|
|
$ |
498,547 |
|
|
$ |
492,317 |
|
Shares outstanding |
|
|
6,392,838 |
|
|
|
6,373,404 |
|
|
|
6,368,840 |
|
Book value per
outstanding share |
$ |
74.62 |
|
|
$ |
78.29 |
|
|
$ |
77.36 |
|
|
|
|
|
|
|
|
Allowance as % of
principal balance net of deferred revenue |
|
26.04 |
% |
|
|
23.91 |
% |
|
|
23.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
allowance for credit losses: |
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
October 31, |
|
|
|
|
2023 |
|
2022 |
|
|
Balance at beginning of
period |
|
$ |
299,608 |
|
|
$ |
237,823 |
|
|
|
Provision for credit
losses |
|
|
231,718 |
|
|
|
165,068 |
|
|
|
Charge-offs, net
of collateral recovered |
|
(186,996 |
) |
|
|
(130,161 |
) |
|
|
Balance at end of period |
|
$ |
344,330 |
|
|
$ |
272,730 |
|
|
|
|
|
|
|
|
|
|
(1) Some items in
the prior year financial statements were reclassified to conform to
the current presentation. Reclassification had no effect on the
prior year net income or shareholder’s equity |
|
America's Car-Mart, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
|
(Amounts in thousands) |
|
|
|
|
Six months ended |
|
|
|
|
October 31, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
Operating
activities: |
|
|
|
|
|
Net income
(loss) |
|
$ |
(23,277 |
) |
|
$ |
16,836 |
|
|
Provision for
credit losses |
|
|
231,718 |
|
|
|
165,068 |
|
|
Losses on claims
for accident protection plan |
|
15,173 |
|
|
|
11,232 |
|
|
Depreciation and
amortization |
|
3,389 |
|
|
|
2,460 |
|
|
Finance receivable
originations |
|
(580,082 |
) |
|
|
(580,838 |
) |
|
Finance receivable
collections |
|
218,208 |
|
|
|
206,358 |
|
|
Inventory |
|
|
65,123 |
|
|
|
46,226 |
|
|
Deferred accident
protection plan revenue |
|
1,306 |
|
|
|
13,328 |
|
|
Deferred service
contract revenue |
|
4,042 |
|
|
|
14,402 |
|
|
Income taxes,
net |
|
|
(8,605 |
) |
|
|
850 |
|
|
Other(1) |
|
|
(3,125 |
) |
|
|
8,947 |
|
|
|
Net cash used in
operating activities |
|
(76,130 |
) |
|
|
(95,131 |
) |
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
Purchase of
investments |
|
|
- |
|
|
|
(225 |
) |
|
Purchase of
property and equipment and other(1) |
|
(1,588 |
) |
|
|
(14,040 |
) |
|
|
Net cash used in
investing activities |
|
(1,588 |
) |
|
|
(14,265 |
) |
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
Change in
revolving credit facility, net |
|
(2,152 |
) |
|
|
256,977 |
|
|
Payments on
non-recourse notes payable |
|
(250,935 |
) |
|
|
(149,184 |
) |
|
Change in cash
overdrafts |
|
|
1,416 |
|
|
|
- |
|
|
Issuances of
non-recourse notes payable |
|
360,340 |
|
|
|
- |
|
|
Debt issuance
costs |
|
|
(4,091 |
) |
|
|
(39 |
) |
|
Purchase of common
stock |
|
|
(69 |
) |
|
|
(5,195 |
) |
|
Dividend
payments |
|
|
(20 |
) |
|
|
(20 |
) |
|
Exercise of stock
options and issuance of common stock |
|
(312 |
) |
|
|
1,364 |
|
|
|
Net cash provided
by financing activities |
|
104,177 |
|
|
|
103,903 |
|
|
|
|
|
|
|
|
Increase
(decrease) in cash, cash equivalents, and restricted cash |
$ |
26,459 |
|
|
$ |
(5,493 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Prepaid expenses and
other assets at October 31, 2022, reflects an immaterial
reclassification of approximately $8.4 million of capitalized
implementation costs related to a cloud-computing arrangement
previously recorded in property and equipment, net, and did not
impact operating income. |
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|
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|
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