America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the
“Company”), today reported financial results for the third quarter
ended January 31, 2024.
Third Quarter Key Highlights (Q3 FY24 vs. Q3
FY23, unless otherwise noted)
- Completed implementation of updated loan origination system
(LOS)
- Q3 revenue was $299.6 million, down 7.9%
- Total collections increased 9.3%
- Allowance for credit loss adjusted to 25.74%, down sequentially
30 bps
- Net charge-offs as a % of average finance receivables were 6.8%
vs. 5.9%, down sequentially 40 bps
- Loss per share $1.34 vs. $0.23 diluted earnings per share
- Entered into a strategic partnership with Cox Automotive in
February
“We continue to navigate a challenging macro
environment facing our customers and remain focused on their
success. While sales volumes fell short of our expectations during
the quarter, they are not reflective of the efforts put forth by
the team. I am encouraged by our continued progress during the
quarter in gross profit, credit losses, and initial results
generated by our loan origination system. We have implemented
several initiatives to improve sales during the fourth quarter. Our
priority is to be agile with our cost structure and
investments to deliver long-term profitability and shareholder
value.”
Doug CampbellPresident and
CEO
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/bdaee810-0330-4474-aefa-099ec1f6e9b4
Note: Discussions in each section provide third quarter
comparisons from fiscal year 2023 to fiscal year 2024.
TOTAL REVENUE – A 7.9% drop in
revenue was primarily driven by the decrease in retail units sold.
Interest income contributed favorably and was up 16.0%
year-over-year. A portion of the decline in revenue was masked
by the average retail sales price being up 7.5%.
SALES – Sales for the quarter
were 11,664 units vs. 14,508 units, down 19.6% compared to the
prior year quarter. Total credit application volume was down 8.3%
year over year, which represented about half of the sales decline.
Two fewer selling days during the quarter, and weather in January
accounted for approximately 3-4% of the decrease in sales volume
compared to the prior year quarter.
GROSS PROFIT – Gross profit per
unit was $7,043, compared to $6,373 for the prior year’s third
quarter. This improvement in gross profit per unit resulted from
better operational execution in pricing discipline and continued
improvements on the cost of vehicle repairs. The Company
experienced headwinds in gross profit related to lower prices in
the wholesale market and an increased volume of wholesale vehicles
related to the higher credit losses in the prior quarter. Despite
these headwinds, gross profits per retail until sold were still up
10.5% year-over-year.
NET CHARGE-OFFS – Net
charge-offs as a percentage of average finance receivables were
6.8% compared to 5.9% during the prior year's third quarter.
Sequentially, net charge-offs improved 40 basis points from
7.2% for the second quarter of fiscal 2024. As a reference, the
quarterly performance of net charge-offs for the five-year period
preceding the pandemic have ranged from 5.9% - 8.7%, signaling a
return to more normal pre-pandemic levels. Both the frequency and
severity of losses played an equal part in overall net charge-offs
performance for the quarter. Delinquencies (accounts 30 days or
more past due) improved year over year by 40 basis points to 3.3%
of finance receivables as of January 31, 2024, and sequentially by
30 basis points from 3.6% of finance receivables as of October 31,
2023.
ALLOWANCE FOR CREDIT LOSSES –
The Company decreased the allowance for credit loss as a percentage
of finance receivables, net of deferred revenue and pending
accident protection plan claims, from 26.04% at October 31, 2023 to
25.74% at January 31, 2024, providing a $3.9 million benefit to the
provision for credit losses during the current quarter, resulting
in a positive impact to basic earnings (loss) per share of $0.50.
The key drivers of the adjustment were a lower overall inflationary
outlook and lower delinquencies at quarter end.
UNDERWRITING – A majority of
sales originated during the quarter were through our new LOS. The
Company continued to enhance and update processes within the system
to attract higher down-payments, shorter terms, and a stronger
consumer profile relative to its legacy system. The average
originating term for the quarter was 43.3 months, down from the
sequential quarter at 44.1 months. This was up from an average term
of 42.5 months for the prior year's third quarter.
SG&A EXPENSE – SG&A
expense was $43.6 million compared to $44.7 million for the prior
year quarter. This also delivered a $1.3 million benefit
sequentially aided by the cost control activities implemented in
the previous quarter. These actions assisted in bringing SG&A
per average account down 6.7% ($421 compared to $451) compared to
the prior year period. We continue to focus on expense management
and the overall efficiency of the business.
ACQUISITIONS – The Company
completed the purchase of Central Auto Sales in Hot Springs,
Arkansas, which was announced in December. We are actively working
on other opportunities we expect to materialize during the calendar
year.
TRANSACTION – In February, the
Company entered into a strategic partnership with Cox Automotive
which is expected to drive better outcomes regarding vehicle
acquisition, reconditioning, transportation, and remarketing
activities. Cox Automotive is recognized as the world’s
largest automotive services and technology provider.
FINANCING – The Company paid
off its April 2022 asset-backed non-recourse notes during the
quarter. During the quarter, Kroll Bond Rating Agency upgraded the
rating on all notes from our 2023-1 issuance. Lastly, we completed
our fourth asset-backed non-recourse term securitization on January
31, 2024, issuing $250 million in bonds with a weighted average
fixed coupon rate of 9.5%. The net proceeds were used
to pay outstanding debt and make the initial deposits into the
related collection and reserve accounts to benefit the
noteholders.
Subsequent to quarter end, the Company renewed and extended its
revolving credit agreement to September 2025 with a total
commitment of $340 million with a group of seven banks.
CASH-ON-CASH RETURNS – The
Company continues to originate finance receivable pools with
attractive cash-on-cash returns. The following table provides
details regarding the cash-on-cash returns for our existing loan
pools:
|
Cash-on-Cash Returns1 |
|
|
Loan Origination Year |
Prior Projected |
Current Projected/Actual |
Variance |
Projected IRR2 |
% of A/R Remaining |
FY2017 |
* |
61.0% |
* |
63.3% |
0.0% |
FY2018 |
* |
67.6% |
* |
67.4% |
0.0% |
FY2019 |
* |
69.9% |
* |
69.2% |
0.1% |
FY2020 |
* |
74.0% |
* |
66.4% |
0.4% |
FY2021 |
75.0% |
73.6% |
-1.4% |
56.4% |
4.7% |
FY2022 |
61.0% |
58.3% |
-2.7% |
41.1% |
19.8% |
FY2023 |
56.7% |
55.0% |
-1.7% |
36.2% |
43.9% |
FY2024 |
59.5% |
61.3% |
1.8% |
37.2% |
80.4% |
|
|
|
|
|
|
* 2017 -2020
Pools' Current Projection reflects actual cash-on-cash returns |
|
|
|
|
|
|
|
1 "Cash-on-cash returns" represent the
return on cash invested by the Company in the vehicle finance loans
the Company originates and is calculated with respect to a pool of
loans (or finance receivables) by dividing total “cash in” less
“cash out” by total “cash out” with respect to such pool. “Cash in”
represents the total cash the Company expects to collect on the
pool of finance receivables, including credit losses. This includes
down-payments, principal and interest collected (including special
and seasonal payments) and the fair market value of repossessed
vehicles, if applicable. “Cash out” includes purchase price paid by
the Company to acquire the vehicle (including reconditioning and
transportation costs), and all other post-sale expenses as well as
expenses related to our ancillary products. The calculation assumes
estimates on expected credit losses net of fair market value of
repossessed vehicles and the related timing of such losses as well
as post sales repair expenses and special payments. The Company
evaluates and updates expected credit losses quarterly. The credit
quality of each pool is monitored and compared to prior and initial
forecasts and is reflected in our on-going internal cash-on-cash
projections.
Key Operating Results
|
|
Three Months Ended |
|
|
|
|
January 31, |
|
|
|
|
2024 |
|
2023 |
|
% Change |
Operating
Data: |
|
|
|
|
|
|
Retail units sold |
|
|
11,664 |
|
|
|
14,508 |
|
|
(19.6 |
)% |
Average number of stores in operation |
|
|
154 |
|
|
|
155 |
|
|
(0.6 |
) |
Average retail units sold per store per month |
|
|
25.2 |
|
|
|
31.2 |
|
|
(19.2 |
) |
Average retail sales price |
|
$ |
19,455 |
|
|
$ |
18,091 |
|
|
7.5 |
|
Total gross profit per retail unit sold |
|
$ |
7,043 |
|
|
$ |
6,373 |
|
|
10.5 |
|
Total gross profit percentage |
|
|
34.2% |
|
|
|
33.7% |
|
|
|
Same store revenue growth |
|
|
(9.3) |
|
|
|
12.3% |
|
|
|
Net charge-offs as a percent of average finance receivables |
|
|
6.8% |
|
|
|
5.9% |
|
|
|
Total collected (principal, interest and late fees) |
|
$ |
167,664 |
|
|
$ |
153,376 |
|
|
9.3 |
|
Average total collected per active customer per month |
|
$ |
540 |
|
|
$ |
519 |
|
|
4.0 |
|
Average percentage of finance receivables-current (excl. 1-2
day) |
|
|
80.3% |
|
|
|
79.4% |
|
|
|
Average down-payment percentage |
|
|
5.1% |
|
|
|
4.8% |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
January 31, |
|
|
|
|
2024 |
|
2023 |
|
% Change |
Operating
Data: |
|
|
|
|
|
|
Retail units sold |
|
|
42,738 |
|
|
|
45,929 |
|
|
(6.9 |
)% |
Average number of stores in operation |
|
|
154 |
|
|
|
154 |
|
|
- |
|
Average retail units sold per store per month |
|
|
30.8 |
|
|
|
33.1 |
|
|
(6.9 |
) |
Average retail sales price |
|
$ |
19,062 |
|
|
$ |
18,059 |
|
|
5.6 |
|
Total gross profit per retail unit sold |
|
$ |
6,867 |
|
|
$ |
6,341 |
|
|
8.3 |
|
Total gross profit percentage |
|
|
34.4% |
|
|
|
33.5% |
|
|
|
Same store revenue growth |
|
|
1.0% |
|
|
|
18.3% |
|
|
|
Net charge-offs as a percent of average finance receivables |
|
|
20.0% |
|
|
|
16.9% |
|
|
|
Total collected (principal, interest and late fees) |
|
$ |
501,692 |
|
|
$ |
452,362 |
|
|
10.9 |
|
Average total collected per active customer per month |
|
$ |
536 |
|
|
$ |
516 |
|
|
3.9 |
|
Average percentage of finance receivables-current (excl. 1-2
day) |
|
|
80.4% |
|
|
|
80.2% |
|
|
|
Average down-payment percentage |
|
|
5.0% |
|
|
|
5.4% |
|
|
|
Period End
Data: |
|
|
|
|
|
|
Stores open |
|
|
154 |
|
|
|
157 |
|
|
(1.9 |
)% |
Accounts over 30 days past
due |
|
|
3.3% |
|
|
|
3.7% |
|
|
|
Active customer count |
|
|
102,175 |
|
|
|
99,577 |
|
|
2.6 |
|
Principal balance of finance
receivable |
|
$ |
1,428,908 |
|
|
$ |
1,305,956 |
|
|
9.4 |
|
Weighted average total
contract term |
|
|
47.6 |
|
|
|
45.4 |
|
|
4.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly
results on Friday, March 8, 2024, at 11 am ET. Participants may
access the conference call via webcast using this
link: Webcast Link. 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 in
10 minutes prior to the start time. A replay and transcript of the
conference call and webcast will be available on-demand 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 and engagement;
-
gross profit percentages;
-
gross profit per retail unit sold;
-
business acquisitions;
-
inventory acquisition, reconditioning, transportation and
remarketing;
-
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 ability to leverage the Cox Automotive services agreement to
perform reconditioning and improve vehicle quality to reduce the
average vehicle cost, improve gross margins, reduce credit loss and
enhance cash flow;
-
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.
Readers 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-Mart |
Consolidated Results of Operations |
(Unaudited) |
|
(Amounts in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Sales |
|
|
|
|
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
|
January 31, |
|
|
|
January 31, |
|
|
|
|
|
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
Statements
of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
240,401 |
|
|
$ |
274,276 |
|
|
(12.4 |
)% |
|
100.0 |
% |
|
100.0 |
% |
|
Interest
income |
|
|
59,213 |
|
|
|
51,063 |
|
|
16.0 |
|
|
|
24.6 |
|
|
|
18.6 |
|
|
|
|
|
Total |
|
|
299,614 |
|
|
|
325,339 |
|
|
(7.9 |
) |
|
|
124.6 |
|
|
|
118.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
158,250 |
|
|
|
181,823 |
|
|
(13.0 |
) |
|
|
65.8 |
|
|
|
66.3 |
|
|
Selling, general
and administrative |
|
|
43,562 |
|
|
|
44,737 |
|
|
(2.6 |
) |
|
|
18.1 |
|
|
|
16.3 |
|
|
Provision for
credit losses |
|
|
89,582 |
|
|
|
85,650 |
|
|
4.6 |
|
|
|
37.3 |
|
|
|
31.2 |
|
|
Interest
expense |
|
|
16,731 |
|
|
|
9,765 |
|
|
71.3 |
|
|
|
7.0 |
|
|
|
3.6 |
|
|
Depreciation and
amortization |
|
|
1,712 |
|
|
|
1,537 |
|
|
11.4 |
|
|
|
0.7 |
|
|
|
0.6 |
|
|
Loss on disposal
of property and equipment |
|
119 |
|
|
|
68 |
|
|
75.0 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Total |
|
|
309,956 |
|
|
|
323,580 |
|
|
(4.2 |
) |
|
|
128.9 |
|
|
|
118.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
taxes |
|
|
(10,342 |
) |
|
|
1,759 |
|
|
|
|
|
(4.3 |
) |
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes |
|
|
(1,800 |
) |
|
|
251 |
|
|
|
|
|
(0.7 |
) |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(8,542 |
) |
|
$ |
1,508 |
|
|
|
|
|
(3.6 |
) |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
subsidiary preferred stock |
|
$ |
(10 |
) |
|
$ |
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common shareholders |
|
$ |
(8,552 |
) |
|
$ |
1,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.34 |
) |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(1.34 |
) |
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
6,393,080 |
|
|
|
6,370,031 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
6,393,080 |
|
|
|
6,536,785 |
|
|
|
|
|
|
|
|
|
|
America’s Car-Mart |
Consolidated Results of Operations |
(Unaudited) |
|
(Amounts in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Sales |
|
|
|
|
|
Nine Months Ended |
|
|
|
Nine Months Ended |
|
|
|
|
|
January 31, |
|
|
|
January 31, |
|
|
|
|
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
Statements
of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
854,170 |
|
|
$ |
869,775 |
|
|
(1.8 |
)% |
|
100.0 |
% |
|
100.0 |
% |
|
Interest
income |
|
|
175,051 |
|
|
|
143,690 |
|
|
21.8 |
|
|
|
20.5 |
|
|
|
16.5 |
|
|
|
|
Total |
|
|
1,029,221 |
|
|
|
1,013,465 |
|
|
1.6 |
|
|
|
120.5 |
|
|
|
116.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
560,692 |
|
|
|
578,547 |
|
|
(3.1 |
) |
|
|
65.6 |
|
|
|
66.5 |
|
|
Selling, general
and administrative |
|
|
134,895 |
|
|
|
130,881 |
|
|
3.1 |
|
|
|
15.8 |
|
|
|
15.0 |
|
|
Provision for
credit losses |
|
|
321,300 |
|
|
|
250,719 |
|
|
28.2 |
|
|
|
37.6 |
|
|
|
28.8 |
|
|
Interest
expense |
|
|
47,587 |
|
|
|
25,460 |
|
|
86.9 |
|
|
|
5.6 |
|
|
|
2.9 |
|
|
Depreciation and
amortization |
|
|
5,101 |
|
|
|
3,997 |
|
|
27.6 |
|
|
|
0.6 |
|
|
|
0.5 |
|
|
Loss on disposal
of property and equipment |
|
359 |
|
|
|
320 |
|
|
12.2 |
|
|
|
- |
|
|
|
- |
|
|
|
|
Total |
|
|
1,069,934 |
|
|
|
989,924 |
|
|
8.1 |
|
|
|
125.3 |
|
|
|
113.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
taxes |
|
|
(40,713 |
) |
|
|
23,541 |
|
|
|
|
|
(4.8 |
) |
|
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes |
|
|
(8,894 |
) |
|
|
5,197 |
|
|
|
|
|
(1.0 |
) |
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(31,819 |
) |
|
$ |
18,344 |
|
|
|
|
|
(3.7 |
) |
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
subsidiary preferred stock |
|
$ |
(30 |
) |
|
$ |
(30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common shareholders |
|
$ |
(31,849 |
) |
|
$ |
18,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(4.99 |
) |
|
$ |
2.87 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(4.99 |
) |
|
$ |
2.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
6,386,997 |
|
|
|
6,370,732 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
6,386,997 |
|
|
|
6,562,214 |
|
|
|
|
|
|
|
|
|
|
America's Car-Mart, Inc. |
Condensed Consolidated Balance Sheet and Other
Data |
(Unaudited) |
|
(Amounts in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
January 31, |
|
April 30, |
|
January 31, |
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
4,239 |
|
|
$ |
9,796 |
|
|
$ |
4,322 |
|
Restricted cash
from collections on auto finance receivables |
$ |
90,350 |
|
|
$ |
58,238 |
|
|
$ |
61,148 |
|
Finance
receivables, net (1) |
|
$ |
1,085,772 |
|
|
$ |
1,063,460 |
|
|
$ |
1,012,580 |
|
Inventory |
|
|
$ |
109,313 |
|
|
$ |
109,290 |
|
|
$ |
131,616 |
|
Total assets
(1) |
|
$ |
1,466,947 |
|
|
$ |
1,414,737 |
|
|
$ |
1,379,519 |
|
Revolving lines of
credit, net |
|
$ |
55,374 |
|
|
$ |
167,231 |
|
|
$ |
27,782 |
|
Non-recourse notes
payable, net |
|
$ |
684,688 |
|
|
$ |
471,367 |
|
|
$ |
588,310 |
|
Treasury
stock |
|
$ |
297,757 |
|
|
$ |
297,421 |
|
|
$ |
297,421 |
|
Total equity |
|
$ |
469,007 |
|
|
$ |
498,547 |
|
|
$ |
495,244 |
|
Shares
outstanding |
|
|
6,391,061 |
|
|
|
6,373,404 |
|
|
|
6,370,031 |
|
Book value per
outstanding share |
$ |
73.45 |
|
|
$ |
78.29 |
|
|
$ |
77.81 |
|
|
|
|
|
|
|
|
|
|
Allowance as % of
principal balance net of deferred revenue |
|
25.74% |
|
|
|
23.91% |
|
|
|
23.65% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
allowance for credit losses: |
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
|
January 31, |
|
|
|
|
|
|
2024 |
|
2023 |
|
|
Balance at
beginning of period |
|
$ |
299,608 |
|
|
$ |
237,823 |
|
|
|
Provision for
credit losses |
|
|
321,300 |
|
|
|
250,719 |
|
|
|
Charge-offs, net
of collateral recovered |
|
(285,921 |
) |
|
|
(205,767 |
) |
|
|
Balance at end of period |
|
$ |
334,987 |
|
|
$ |
282,775 |
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
Nine months ended |
|
|
|
January 31, |
|
|
|
2024 |
|
2023 |
|
|
|
|
|
|
Operating
activities: |
|
|
|
|
Net income
(loss) |
$ |
(31,819 |
) |
|
$ |
18,344 |
|
|
Provision for
credit losses |
|
321,300 |
|
|
|
250,719 |
|
|
Losses on claims
for accident protection plan |
|
24,480 |
|
|
|
17,717 |
|
|
Depreciation and
amortization |
|
5,101 |
|
|
|
3,997 |
|
|
Finance receivable
originations |
|
(794,477 |
) |
|
|
(841,445 |
) |
|
Finance receivable
collections |
|
324,703 |
|
|
|
308,671 |
|
|
Inventory |
|
103,451 |
|
|
|
76,933 |
|
|
Deferred accident
protection plan revenue |
|
(1,926 |
) |
|
|
13,987 |
|
|
Deferred service
contract revenue |
|
(130 |
) |
|
|
17,565 |
|
|
Income taxes,
net |
|
(10,735 |
) |
|
|
252 |
|
|
Other(1) |
|
(3,120 |
) |
|
|
9,304 |
|
|
|
Net cash used in operating activities |
|
(63,172 |
) |
|
|
(123,956 |
) |
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
Purchase of
investments |
|
(4,815 |
) |
|
|
(5,499 |
) |
|
Purchase of
property and equipment and other(1) |
|
(4,514 |
) |
|
|
(18,918 |
) |
|
|
Net cash used in investing
activities |
|
(9,329 |
) |
|
|
(24,417 |
) |
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
Change in
revolving credit facility, net |
|
(112,522 |
) |
|
|
(17,599 |
) |
|
Payments on
non-recourse notes payable |
|
(394,450 |
) |
|
|
(209,327 |
) |
|
Change in cash
overdrafts |
|
2,183 |
|
|
|
3,795 |
|
|
Issuances of
non-recourse notes payable |
|
610,340 |
|
|
|
400,176 |
|
|
Debt issuance
costs |
|
(5,892 |
) |
|
|
(2,001 |
) |
|
Purchase of common
stock |
|
(336 |
) |
|
|
(5,196 |
) |
|
Dividend
payments |
|
(30 |
) |
|
|
(30 |
) |
|
Exercise of stock
options and issuance of common stock |
|
(237 |
) |
|
|
1,438 |
|
|
|
Net cash provided by financing
activities |
|
99,056 |
|
|
|
171,256 |
|
|
|
|
|
|
|
Increase in cash,
cash equivalents, and restricted cash |
$ |
26,555 |
|
|
$ |
22,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Prepaid expenses and other assets at January 31, 2023, reflects an
immaterial reclassification of approximately $8.9 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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