Financial Data and Key Metrics Changes - Revenue decreased by $22.3 million, or 5.8%, primarily due to a decline in retail units sold, although interest income increased by 10.5% due to a $91.2 million rise in average finance receivables [47] - Gross margin improved by 120 basis points for the full fiscal year and 200 basis points compared to the prior year's quarter, driven by pricing discipline and improvements in transportation and vehicle repairs [37][47] - SG&A expenses were $44.5 million, showing an improvement of $1.3 million, with the lowest percentage change in annual SG&A in over five years at just a 1.5% increase [21] Business Line Data and Key Metrics Changes - Sales were down 13.6% during the quarter, with average units sold decreasing from 37.7% to 33%, while the average retail sales price increased by 6.2% [37][47] - The average retail price dropped sequentially by approximately $200, while the average retail sales price was up over $1,100 [48] - The company reported a 5% increase in total collections over last year's fourth quarter, with the monthly average total collected per active customer rising 3.6% to $607 [49] Market Data and Key Metrics Changes - The company faced challenges due to economic pressures affecting consumers, including rising auto insurance rates, which are now averaging 50% more than three years ago [36] - Delinquency percentage improved by 50 basis points to 3.1% at quarter end, with a 42 basis point improvement in the allowance for credit losses, now at 25.32% [19] Company Strategy and Development Direction - The company remains committed to growth through strategic acquisitions and prudent financial management, with a focus on operational excellence and improved affordability for core customers [2][6] - The implementation of technology initiatives, including the Loan Origination System (LOS), is expected to position the company well for fiscal 2025 [2][39] - The acquisition of Texas Auto Center is anticipated to drive revenue and generate net income, with expected annual revenues exceeding $60 million from recent acquisitions [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of affordability in the industry and emphasized the importance of technology investments for future operational efficiency [17][37] - The company is focused on value creation for shareholders through improvements in volume, margins, cost efficiencies, and returns [23] - Management expressed optimism about the future, highlighting the benefits of recent technology implementations and strategic acquisitions [42][44] Other Important Information - Interest expense increased by $4.9 million, or 38.2%, due to rising rates and increased debt, with total interest expense up $27 million on an annual basis [22] - The company has completed the rollout of several large-scale technology projects, which are already delivering benefits [5][42] Q&A Session Summary Question: What is the current store count? - The current store count is 154, which includes recently acquired locations [10][12] Question: Can you explain the differences in loss content between severity and frequency? - For the quarter, frequency accounted for about 58% of the change in the provision, indicating higher frequency of losses throughout the year [14]

A quarter ago, it was expected that this auto retailer would post a loss of $1.10 per share when it actually produced a loss of $1.34, delivering a surprise of -21.82%. What's Next for America's Car-Mart? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Ahead of this e ...

America's Car-Mart Reports Fourth Quarter and Fiscal Year 2024 Results ROGERS, Ark., June 18, 2024 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ: CRMT) ("we," "Car-Mart" or the "Company"), today reported financial results for the fourth quarter and full year ended April 30, 2024. Revenue was $364.7 million, down 5.8% Gross Margin improved to 35.5%, up 200 bps Total collections increased 5.0% to $187.2 million Favorable adjustment to allowance for credit loss to 25.32%, down from 25.74% Net charge-off ...

Revenue was $364.7 million, down 5.8% Gross Margin improved to 35.5%, up 200 bps Total collections increased 5.0% to $187.2 million Favorable adjustment to allowance for credit loss to 25.32%, down from 25.74% Net charge-offs as a % of average finance receivables were 7.3% vs. 6.3% Interest expense increase of $4.9 million or 38.2% Diluted earnings per share $0.06 vs. $0.32 Fourth Quarter and Fiscal Year 2024 Key Operating Metrics Note: Discussions in each section provide information for the fourth quarter ...

ROGERS, Ark. , May 08, 2024 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ:CRMT) today announced it will release fourth quarter and full fiscal year financial results on Tuesday, June 18, 2024, before the market opens and senior management will host a conference call at 9:00 a.m ET to discuss the results. 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, a ...

ROGERS, Ark. , May 08, 2024 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced it will release fourth quarter and full fiscal year financial results on Tuesday, June 18, 2024, before the market opens and senior management will host a conference call at 9:00 a.m ET to discuss the results. 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, ...

ROGERS, Ark., May 02, 2024 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ:CRMT), today announced that it has entered into a definitive agreement to purchase the dealership assets of Texas Auto Center ("TAC"). The transaction, which excludes legacy finance receivables, is expected to close in the first quarter of Car-Mart's 2025 fiscal year, which begins May 1, 2024. Since founding Texas Auto Center in 1995, Bob and Erika Blankenship have grown their operation into an award-winning dealership group wit ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended January 31, 2024, show a net loss of $31.8 million for the nine-month period, a significant downturn from the $18.3 million net income in the prior year [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 31, 2024, total assets were $1.47 billion, up from $1.41 billion at April 30, 2023, primarily driven by a rise in finance receivables and restricted cash Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Jan 31, 2024 | April 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $4,239 | $9,796 | | Finance receivables, net | $1,085,772 | $1,063,460 | | Total Assets | $1,466,947 | $1,414,737 | | **Liabilities & Equity** | | | | Non-recourse notes payable, net | $684,688 | $471,367 | | Revolving line of credit, net | $55,374 | $167,231 | | Total Liabilities | $997,540 | $915,790 | | Total stockholders' equity | $468,907 | $498,447 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the nine-month period ended January 31, 2024, the company reported a net loss of $31.8 million, a sharp reversal from the $18.3 million net income year-over-year, driven by lower sales, increased provision for credit losses, and higher interest expense Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $299,614 | $325,339 | $1,029,221 | $1,013,465 | | Provision for credit losses | $89,582 | $85,650 | $321,300 | $250,719 | | Interest expense | $16,731 | $9,765 | $47,587 | $25,460 | | Net (loss) income | $(8,542) | $1,508 | $(31,819) | $18,344 | | Diluted EPS | $(1.34) | $0.23 | $(4.99) | $2.79 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended January 31, 2024, net cash used in operating activities was $63.2 million, an improvement from the prior year, with net cash provided by financing activities of $99.1 million leading to a net increase in cash and equivalents Cash Flow Summary (Nine Months Ended Jan 31, in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(63,172) | $(123,956) | | Net cash used in investing activities | $(9,329) | $(24,417) | | Net cash provided by financing activities | $99,056 | $171,256 | | **Increase in cash, cash equivalents, and restricted cash** | **$26,555** | **$22,883** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including a change in credit loss allowance methodology, an increase in the allowance rate for finance receivables, expanded debt facilities, and a subsequent amendment to the revolving credit facility - The company implemented new third-party software for calculating its allowance for credit losses using an undiscounted cash flow model. This change resulted in a **$28.0 million** increase to the provision for credit losses in the second quarter of fiscal 2024[48](index=48&type=chunk)[50](index=50&type=chunk) - The allowance for credit losses was **25.74%** of the principal balance in finance receivables as of January 31, 2024, a decrease from 26.04% at the end of the previous quarter but an increase from 23.91% at April 30, 2023[50](index=50&type=chunk)[51](index=51&type=chunk)[83](index=83&type=chunk) - Subsequent to the quarter end, on February 28, 2024, the company amended its revolving credit facility, extending the term to September 2025, reducing total permitted borrowings from **$600 million** to **$340 million**, and updating financial covenants[124](index=124&type=chunk) Debt Facilities Summary (in thousands) | Debt Type | Jan 31, 2024 | April 30, 2023 | | :--- | :--- | :--- | | Revolving line of credit, net | $55,374 | $167,231 | | Non-recourse notes payable, net | $684,688 | $471,367 | | **Total debt** | **$740,062** | **$638,598** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the decline in profitability for the third quarter and first nine months of fiscal 2024 to decreased retail units sold, a significant increase in the provision for credit losses, and higher interest expenses, while focusing on strategic initiatives to improve credit standards and inventory efficiency [Overview](index=33&type=section&id=Overview) The company's revenue increased 1.6% for the first nine months of fiscal 2024, driven by higher interest income and average retail sales price, despite a decrease in retail units sold, while the provision for credit losses significantly increased due to inflationary pressures - For the first nine months of fiscal 2024, revenue increased **1.6%** YoY, driven by a **21.8%** increase in interest income and a **5.6%** rise in average retail sales price, despite a **6.9%** decrease in retail units sold[137](index=137&type=chunk) - The provision for credit losses as a percentage of sales rose to **37.6%** for the first nine months of fiscal 2024, primarily due to a **$28 million** increase in the provision during Q2 and higher net charge-offs[140](index=140&type=chunk) - The company is implementing a new Loan Origination System (LOS) across its dealerships to improve the customer application process, provide enhanced data for credit decisions, and tighten credit standards, expecting to reduce credit losses[147](index=147&type=chunk) - A new strategic partnership with an automotive services provider aims to improve inventory supply chain efficiencies, particularly in vehicle reconditioning and quality[139](index=139&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) For Q3 FY2024, revenues decreased 7.9% YoY, leading to a pretax loss of $10.3 million, while for the nine-month period, revenues increased 1.6% YoY, but a significant rise in credit loss provision and interest expense resulted in a pretax loss of $40.7 million Q3 FY2024 vs Q3 FY2023 Performance | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $299.6M | $325.3M | (7.9)% | | Retail units sold | 11,664 | 14,508 | (19.6)% | | Provision for credit losses (% of sales) | 37.3% | 31.2% | +6.1 ppt | | Interest expense | $16.7M | $9.8M | +71.3% | | Pretax (loss) income | $(10.3M) | $1.8M | N/A | Nine Months FY2024 vs Nine Months FY2023 Performance | Metric | 9M 2024 | 9M 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,029.2M | $1,013.5M | +1.6% | | Retail units sold | 42,738 | 45,929 | (6.9)% | | Provision for credit losses (% of sales) | 37.6% | 28.8% | +8.8 ppt | | Interest expense | $47.6M | $25.5M | +86.9% | | Pretax (loss) income | $(40.7M) | $23.5M | N/A | [Financial Condition](index=39&type=section&id=Financial%20Condition) As of January 31, 2024, net finance receivables increased 2.1% to $1.09 billion, with a significant shift in total debt structure due to increased non-recourse notes payable and decreased revolving line of credit following asset-backed securitization offerings - The company completed two asset-backed securitization offerings in fiscal 2024 (July 2023 and January 2024) for aggregate principal amounts of **$360.3 million** and **$250.0 million**, respectively. Proceeds were used to pay down the revolving credit facility and provide liquidity[168](index=168&type=chunk) Balance Sheet Highlights (in thousands) | Account | Jan 31, 2024 | April 30, 2023 | | :--- | :--- | :--- | | Finance receivables, net | $1,085,772 | $1,063,460 | | Inventory | $109,313 | $109,290 | | Non-recourse notes payable | $684,688 | $471,367 | | Revolving line of credit | $55,374 | $167,231 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily derived from operations and borrowings, with cash used in operations at $63.2 million for the nine months ended January 31, 2024, and future cash use planned for receivables growth, capital expenditures, and potential acquisitions - As of January 31, 2024, the company had **$4.2 million** in cash and an additional **$125.6 million** of availability under its revolving credit facilities[179](index=179&type=chunk) - The company expects to use cash for growing its finance receivables, funding approximately **$10 million** in capital expenditures over the next 12 months, pursuing acquisitions, and repurchasing stock[182](index=182&type=chunk) - Macro-economic pressures, including inflation, have negatively impacted customers' ability to make payments, resulting in increased charge-offs and affecting liquidity[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk from its variable-rate revolving credit facilities, where a 1% increase in rates would raise annual interest expense by approximately $554,000, while its fixed-rate finance receivables create exposure to margin compression - The company is exposed to interest rate risk from its variable-rate revolving credit facilities. A **1%** increase in interest rates on the **$55.4 million** outstanding balance as of Jan 31, 2024, would increase annual interest expense by about **$554,000**[200](index=200&type=chunk) - The company's finance receivables have fixed interest rates (mostly **16.75%** to **18.25%**), while its revolving credit facilities have variable rates, exposing net interest income to fluctuations in market rates[201](index=201&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of January 31, 2024, with no material changes to internal control over financial reporting during the last fiscal quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of January 31, 2024[202](index=202&type=chunk) - No changes occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[202](index=202&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business but does not expect the outcome of these to have a material adverse effect on its financial position, results of operations, or cash flows - The company does not expect any ongoing legal proceedings to have a material adverse effect on its financial condition or results of operations[205](index=205&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its Form 10-K for the fiscal year ended April 30, 2023 - No material changes to the company's risk factors have occurred since the last annual report on Form 10-K[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares under its stock repurchase program during the third quarter of fiscal 2024 and does not expect to pay dividends in the foreseeable future, with its ability to do so also limited by credit agreements - No shares were repurchased under the company's stock repurchase program during the third quarter of fiscal 2024[207](index=207&type=chunk) - The company does not expect to pay dividends in the foreseeable future, and its credit facilities restrict its ability to do so[208](index=208&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt agreements, employment agreements, and officer certifications

America's Car-Mart, Inc. (NASDAQ:CRMT) Q3 2024 Earnings Conference Call March 8, 2024 11:00 AM ET Company Participants Vickie Judy - Chief Financial Officer Doug Campbell - President and Chief Executive Officer Conference Call Participants John Murphy - Bank of America Securities John Rowan - Janney Montgomery Scott Derek Sommers - Jefferies Operator Good day, and thank you for standing by. Welcome to Americans -- America's Car-Mart's Third Quarter Fiscal 2024 Results Conference Call. At this time all parti ...

America's Car-Mart (CRMT) came out with a quarterly loss of $1.34 per share versus the Zacks Consensus Estimate of a loss of $1.10. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.82%. A quarter ago, it was expected that this auto retailer would post earnings of $0.74 per share when it actually produced a loss of $4.30, delivering a surprise of -681.08%.Over the last four quarters, the co ...