CRMT Inventory Trends CRMT Earnings Supplemental Material Q2 FY24 AR Growth (net) Capex • $78M 1 2 | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-------| | | | | | Repurchased shares of $156M | | | | | | | | | | | | Added approx. $1B in gross receivables Funded $78M in capex growth projects including LOS, ERP, and facility upgrades Increased $79M of inventory | on strate ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Page No. PART I FINANCIAL INFORMATION 4 Texas 63-0851141 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1805 North 2nd Street, Suite 401, Rogers, Arkansas 72756 (Address of principal executive offices) (zip code) (479) 464-9944 (Registrant's telephone number, including area code) Securities registered pursuant to S ...

Financial Data and Key Metrics Changes - The company reported strong revenue growth for the quarter, with sales performance generating 15,912 units sold, up 2.4% year-over-year [12] - Gross margin improved to 34.6%, up 20 basis points compared to the previous year and up 120 basis points sequentially [18] - Net charge-offs as a percentage of average finance receivables were 5.8%, compared to 5.1% in the prior year quarter [23] - Total collections increased by 12% to $166 million, with collections per active customer per month rising to $535 from $516 [28] Business Line Data and Key Metrics Changes - Same-store sales increased by 8.2%, positively impacting inventory turns, which rose from 5.9 to 7.2 turns [12] - Online credit applications grew by 19% for the quarter, accounting for about 70% of all applications [12] - Average selling prices increased by 4.1% year-over-year, driven by both vehicle prices and ancillary products [15] Market Data and Key Metrics Changes - Credit availability remains tight compared to the previous year, although there has been mild improvement recently [14] - The industry is experiencing a decline in wholesale pricing, with procurement teams managing to lower purchase prices sequentially throughout the quarter [16] Company Strategy and Development Direction - The company is focused on long-term health and success, with a commitment to investing in the business despite industry challenges [10] - There is an emphasis on improving operational efficiencies and leveraging technology to enhance vehicle transportation and procurement processes [20] - The company is exploring acquisition opportunities as many competitors are struggling, which could lead to significant growth [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, stating that the current environment is ideal for focusing on affordability and customer service [37] - The company believes that credit results will improve as they enhance vehicle quality and execution levels [39] - Management noted that foundational investments are nearing completion, which will allow for a more efficient, data-driven operation [38] Other Important Information - The company has over $125 million in deferred revenue on the balance sheet and closed on a third securitization with net proceeds of $356 million [25][34] - The transition of CEO from Jeff Williams to Doug Campbell is set for October 1, with a focus on ensuring a smooth handoff [7][10] Q&A Session Summary Question: What is the outlook on extending contract terms for affordability? - Management believes there is potential to decrease contract terms in the future as consumer wages increase, but this will depend on car prices and inflationary pressures [47] Question: What changes have occurred in vehicle purchase and disposition? - The company has improved efficiency by purchasing slightly newer vehicles with lower mileage, which should reduce repair costs and enhance resale value [48][49] Question: How is the health of the underlying consumer? - The health of consumers remains stable, with low unemployment and good wages, but inflationary pressures are still a concern [56][58] Question: Will the company raise inventory levels in response to potential strikes? - Management is preparing for various outcomes but does not plan to stock up on inventory; they will remain selective in vehicle purchases [63][66] Question: What are the opportunities seen in the current market? - The company is optimistic about acquiring strong operators looking for succession plans, which could lead to increased productivity and profits [78]

Part I [Business Overview](index=6&type=section&id=Item%201.%20Business) The company is a leading automotive retailer specializing in selling affordable used vehicles and providing in-house financing to credit-challenged customers - The company operates in the **'Integrated Auto Sales and Finance'** segment, selling older used vehicles and providing financing to customers with limited or impaired credit histories[90](index=90&type=chunk)[116](index=116&type=chunk) - As of April 30, 2023, the company operated **156 dealerships**, primarily located in small cities across the South-Central United States[90](index=90&type=chunk) - The business strategy focuses on expanding through controlled organic growth at existing dealerships and pursuing strategic acquisitions, having successfully acquired dealerships in two of the last three fiscal years[69](index=69&type=chunk)[70](index=70&type=chunk) [Business Strategy](index=6&type=section&id=Business%20Strategy) The strategy emphasizes decentralized operations, affordable transportation, strong customer relationships, and growth through expansion and acquisitions - Maintains a **decentralized operation**, with each dealership responsible for its own vehicle quality, sales, credit decisions, and collections[91](index=91&type=chunk) - Focuses on selling basic, affordable transportation, with an average retail sales price of **$18,080** in fiscal 2023[29](index=29&type=chunk) - Grows by increasing revenues at existing dealerships and through strategic acquisitions, adding **3 new dealerships** in fiscal 2023[70](index=70&type=chunk)[74](index=74&type=chunk) - Emphasizes cultivating **customer relationships**, leading to a large percentage of sales from repeat customers and referrals at mature dealerships[54](index=54&type=chunk) [Operations](index=9&type=section&id=Operations) Operations involve decentralized dealerships managing vehicle sales, in-house financing, and collections, with a focus on older, affordable vehicles Dealership Count (Fiscal Years 2021-2023) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Dealerships at beginning of year | 154 | 151 | 148 | | Dealerships opened or acquired | 3 | 3 | 3 | | Dealerships closed | (1) | - | - | | Dealerships at end of year | 156 | 154 | 151 | Typical Vehicle Purchase & Financing Terms (FY 2023) | Metric | Value | | :--- | :--- | | **Vehicle Profile** | | | Age | 5 to 12 years | | Mileage | 70,000 to 140,000 | | Average Cost | $10,000 | | **Financing Terms** | | | Average Down Payment | 5.4% | | Average Term Length | 46.3 months | | Portfolio Weighted Avg. Interest Rate | 16.7% | - Collections are a primary focus, with annual provision for credit losses ranging from **19.30% to 29.20%** of sales over the last five fiscal years[28](index=28&type=chunk) - New dealerships are capitalized with approximately **$1.5 million to $2.5 million** and typically become profitable within the first year of opening[38](index=38&type=chunk) [Competition](index=14&type=section&id=Competition) The company faces intense competition in the fragmented used automotive market, primarily on financing availability, vehicle quality, pricing, and customer service - Competes with other independent **Integrated Auto Sales and Finance dealers**, franchised dealerships, other used car dealers, and private sellers[82](index=82&type=chunk) - Principal competitive factors include the availability of **financing availability** to credit-challenged consumers, **vehicle selection**, **pricing**, and **customer service**[41](index=41&type=chunk) - Increased competition and tight vehicle supply have led to **higher purchase prices** and influenced the company to offer **longer financing terms** and slightly **lower down payments**[82](index=82&type=chunk) [Human Capital Resources](index=15&type=section&id=Human%20Capital%20Resources) The company employs 2,260 associates, emphasizing diversity, safety, and professional development through internal training programs - Employed approximately **2,260 full-time associates** as of April 30, 2023[46](index=46&type=chunk) - As of April 30, 2023, **52% women** and **34% racially or ethnically diverse** associates comprised the company's workforce[44](index=44&type=chunk) - Offers **comprehensive training and development programs**, such as 'Future Manager' and 'Car-Mart U', to foster internal promotion and career growth[218](index=218&type=chunk) [Executive Officers of the Registrant](index=17&type=section&id=Executive%20Officers%20of%20the%20Registrant) The executive leadership team comprises Jeffrey A. Williams (CEO), Vickie D. Judy (CFO), and Douglas Campbell (President) Executive Officers as of April 30, 2023 | Name | Age | Position | | :--- | :--- | :--- | | Jeffrey A. Williams | 60 | Chief Executive Officer and Director | | Vickie D. Judy | 57 | Chief Financial Officer | | Douglas Campbell | 47 | President | [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from economic conditions, inventory costs, intense competition, credit-impaired borrowers, extensive regulation, and stock volatility [Risks Related to the Company's Business, Industry, and Markets](index=18&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Business%2C%20Industry%2C%20and%20Markets) Risks include adverse economic conditions, used vehicle availability and cost, intense competition, extensive regulation, and dependence on successful growth strategies - Disruptions in economic conditions, including **rising interest rates and inflation**, could adversely affect consumer demand and **increase delinquencies, repossessions, and credit losses**, particularly for the non-prime customer base[209](index=209&type=chunk)[253](index=253&type=chunk) - **Reduced availability or increased cost of used vehicles**, affected by new car sales volumes and supply chain issues, could negatively impact inventory and gross margins[210](index=210&type=chunk) - The business is geographically concentrated, with approximately **27.4% of revenues from Arkansas**, making it susceptible to local economic conditions[256](index=256&type=chunk) - The business is subject to **extensive regulation** from federal, state, and local authorities, including the **Consumer Financial Protection Bureau (CFPB)**, which could result in significant compliance costs and penalties[227](index=227&type=chunk) [Risks Related to the Company's Operations](index=21&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Operations) Operational risks include high delinquency rates from credit-impaired borrowers, insufficient credit loss allowance, dependence on key personnel, and cybersecurity threats - Financing sales to individuals with impaired or limited credit histories entails a **higher risk of delinquency, default, and repossession** compared to traditional lenders[262](index=262&type=chunk) - The allowance for credit losses, an estimate based on historical data and forecasts, may be **insufficient to cover actual losses**, which could adversely affect financial results[235](index=235&type=chunk)[263](index=263&type=chunk) - The company's decentralized model makes it **dependent on its management teams** and its ability to attract and retain qualified employees in a competitive market[237](index=237&type=chunk) - Information systems are **vulnerable to security breaches, cyber-attacks, and system failures**, which could disrupt operations, lead to data theft, and cause reputational damage[239](index=239&type=chunk) [Risks Related to the Company's Common Stock](index=24&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Common%20Stock) Common stock risks include price volatility due to low trading volume and the company's policy of not paying cash dividends - The common stock's relatively **low trading volume** may result in **greater price volatility** and may not provide adequate liquidity for investors[245](index=245&type=chunk)[272](index=272&type=chunk) - The company **does not currently pay cash dividends** and intends to retain earnings for future growth, meaning stockholders should not rely on future dividend income[246](index=246&type=chunk)[273](index=273&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) The company leases approximately 79% of its facilities, including its 50,000 sq ft corporate office in Rogers, Arkansas, and dealerships across ten states - The company leases approximately **79% of its facilities**, including most dealerships and its corporate offices[275](index=275&type=chunk) - Corporate offices are located in a **50,000 square foot leased space** in Rogers, Arkansas[275](index=275&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) Management anticipates no material adverse effect on financial position or operations from ongoing legal proceedings - The company does not expect any ongoing legal proceedings to have a **no material adverse effect** on its financial condition or operations[305](index=305&type=chunk) [Mine Safety Disclosure](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to the company's business - Not applicable[276](index=276&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Common stock (CRMT) trades on NASDAQ, with 977 shareholders; the company retains earnings for growth and did not repurchase shares in Q4 FY2023 - The company's common stock trades on the **NASDAQ Global Select Market** under the symbol **CRMT**[278](index=278&type=chunk) - As of June 23, 2023, there were approximately **977 shareholders** of record[307](index=307&type=chunk) - The company has **not paid cash dividends** and intends to continue retaining earnings for future growth[281](index=281&type=chunk) - **No shares** of common stock were repurchased under the company's authorized program during the fourth quarter of fiscal 2023[310](index=310&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2023 revenues grew 17.6% to $1.41 billion, but net income declined significantly due to a 48.2% increase in credit loss provision and a 250.9% surge in interest expense [Results of Operations](index=30&type=section&id=Results%20of%20Operations) FY2023 revenues rose 17.6% to $1.41 billion, but income before taxes fell sharply due to a 48.2% increase in credit loss provision and a 250.9% rise in interest expense Key Operating Metrics (FY2023 vs FY2022) | Metric | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,405.5M | $1,195.6M | 17.6% | | Retail Units Sold | 63,584 | 60,595 | 4.9% | | Average Retail Sales Price | $18,080 | $16,372 | 10.4% | | Gross Margin % | 33.4% | 36.4% | (3.0 p.p.) | | Provision for Credit Losses | $352.9M | $238.1M | 48.2% | | Interest Expense | $38.3M | $10.9M | 250.9% | | Income Before Taxes | $25.8M | $122.6M | (79.0%) | - The increase in provision for credit losses in FY2023 was due to **credit metrics normalizing** to pre-pandemic levels, driven by the absence of government stimulus, inflationary pressures on customers, and an increased frequency and severity of losses[323](index=323&type=chunk)[286](index=286&type=chunk) - Interest expense surged in FY2023 due to **higher interest rates (71%)** and **higher average debt balances (29%)**[293](index=293&type=chunk) [Financial Condition](index=33&type=section&id=Financial%20Condition) Total assets grew to $1.42 billion, driven by a 24.2% increase in net finance receivables to $1.07 billion, funded by increased debt Selected Balance Sheet Data (in thousands) | Account | April 30, 2023 | April 30, 2022 | | :--- | :--- | :--- | | Finance receivables, net | $1,073,764 | $863,674 | | Inventory | $109,290 | $115,302 | | Total Assets | $1,420,431 | $1,154,696 | | Non-recourse notes payable, net | $471,367 | $395,986 | | Revolving line of credit, net | $167,231 | $44,670 | | Total Equity | $498,547 | $476,534 | - Growth in finance receivables (**24.2%**) exceeded revenue growth (**17.6%**) in fiscal 2023, primarily due to an increase in the average contract term to **46.3 months** from 42.9 months in the prior year[327](index=327&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity sources include operations, revolving credit, and securitizations; FY2023 saw $135.7 million net cash used in operations, with $121.4 million available credit - Net cash used in operating activities was **$135.7 million** in FY2023, compared to $119.2 million in FY2022, primarily due to the increase in finance receivable originations[363](index=363&type=chunk)[110](index=110&type=chunk) - Net cash provided by financing activities was **$188.7 million**, largely from the issuance of non-recourse notes and net borrowings on the revolving credit facility[110](index=110&type=chunk) - As of April 30, 2023, the company had **$121.4 million** of availability under its revolving credit facilities, which mature in September 2024[338](index=338&type=chunk)[485](index=485&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) The allowance for credit losses, $299.6 million (23.91% of receivables) as of April 30, 2023, is the most significant estimate, based on historical data and macroeconomic forecasts - The allowance for credit losses is the **most significant accounting estimate**, determined by management's judgment[372](index=372&type=chunk) - The allowance calculation uses **historical loss experience** adjusted for qualitative factors and a **one-year forecast of macroeconomic conditions**[373](index=373&type=chunk)[348](index=348&type=chunk) - At April 30, 2023, the allowance for credit losses was **$299.6 million**, representing **23.91%** of the net finance receivables principal balance, up from 23.57% at the end of fiscal 2022[344](index=344&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risk is interest rate exposure on variable-rate revolving credit facilities; a 1% rate increase would raise annual interest expense by $1.7 million - The primary market risk is **interest rate risk** on its variable-rate revolving credit facilities[352](index=352&type=chunk)[398](index=398&type=chunk) - A **1% increase** in interest rates on the **$167.2 million** of revolving debt outstanding at April 30, 2023, would increase annual interest expense by approximately **$1.7 million**[398](index=398&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited financial statements with an unqualified opinion from Grant Thornton LLP, highlighting the allowance for credit losses as a critical audit matter - The independent auditor, Grant Thornton LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting as of April 30, 2023[355](index=355&type=chunk)[384](index=384&type=chunk) - The auditor identified the **allowance for credit losses** as a **critical audit matter** due to the significant management judgments required for its estimation, particularly adjustments for current conditions and macroeconomic forecasts[386](index=386&type=chunk)[402](index=402&type=chunk) [Consolidated Financial Statements](index=44&type=section&id=Consolidated%20Financial%20Statements) FY2023 consolidated financial statements show $1.41 billion in revenues, $20.4 million net income, $1.42 billion total assets, and $638.6 million total debt Consolidated Statement of Operations Highlights (FY 2023, in thousands) | Metric | Amount | | :--- | :--- | | Total Revenues | $1,405,498 | | Cost of Sales | $805,873 | | Provision for Credit Losses | $352,860 | | Income Before Income Taxes | $25,794 | | Net Income | $20,432 | | Diluted EPS | $3.11 | Consolidated Balance Sheet Highlights (As of April 30, 2023, in thousands) | Metric | Amount | | :--- | :--- | | Total Assets | $1,420,431 | | Finance Receivables, Net | $1,073,764 | | Total Liabilities | $921,484 | | Total Debt (Revolving + Non-recourse) | $638,598 | | Total Equity | $498,547 | Consolidated Statement of Cash Flows Highlights (FY 2023, in thousands) | Metric | Amount | | :--- | :--- | | Net cash used in operating activities | ($135,728) | | Net cash used in investing activities | ($27,571) | | Net cash provided by financing activities | $188,746 | | Increase in cash | $25,447 | [Notes to Consolidated Financial Statements](index=48&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including segment reporting, credit loss allowance, and debt composition, noting a corrected immaterial error in prior period financials - All individual dealerships are aggregated into a **single reportable segment**: Integrated Auto Sales and Finance[117](index=117&type=chunk) - The allowance for credit losses is a significant estimate. At April 30, 2023, it was **$299.6 million**, or **23.91%** of the net principal balance of finance receivables[118](index=118&type=chunk)[426](index=426&type=chunk) - Total debt of **$638.6 million** at April 30, 2023, consists of a $168.5 million revolving line of credit and $472.9 million in non-recourse notes payable from asset-backed securitizations[459](index=459&type=chunk) - Certain **immaterial errors** in prior period financial statements related to deferred revenue and the allowance for credit losses were identified and **corrected**[159](index=159&type=chunk)[509](index=509&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls were effective as of April 30, 2023, with a previously identified material weakness in CECL analysis fully remediated through personnel and system enhancements - Management concluded that disclosure controls and procedures were **effective** as of April 30, 2023[512](index=512&type=chunk) - A **material weakness** related to the CECL analysis for the allowance for credit losses, identified in a prior quarter, was **fully remediated** as of the end of fiscal 2023[540](index=540&type=chunk)[541](index=541&type=chunk) - Remediation actions included **hiring new Senior Director of Finance**, **implementing third-party software**, and **engaging advisory services** to improve the CECL analysis process[164](index=164&type=chunk) Part III [Directors, Executive Compensation, Security Ownership, and Other Matters](index=73&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10-14, covering directors, executive compensation, and security ownership, is incorporated by reference from the 2023 proxy statement - Information for Items 10, 11, 12, 13, and 14 is **incorporated by reference** from the company's definitive proxy statement[172](index=172&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=74&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all Form 10-K exhibits, including governance documents and material contracts; financial statement schedules are omitted - This section provides a list of **all exhibits** filed with the annual report, including governance documents, material contracts, and required certifications[554](index=554&type=chunk) - Financial statement schedules have been **omitted** because the required information is included elsewhere in the report or is not applicable[553](index=553&type=chunk) [Form 10-K Summary](index=79&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is noted as not applicable in the report - Not applicable[558](index=558&type=chunk)

America's Car-Mart, Inc. (NASDAQ:CRMT) Q4 2023 Results Conference Call May 24, 2023 11:00 AM ET Company Participants Jeff Williams - CEO Doug Campbell - President Vickie Judy - CFO Conference Call Participants Billy Healey - Bank of America Derek Sommers - Jefferies Operator Good morning, everyone. Thank you for holding, and welcome to America's Car-Mart Fourth Quarter Fiscal 2023 Conference Call. The topic of this call will be the earnings and operating results for the company's fourth quarter of fiscal ye ...

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended January 31, 2023, show significant growth in assets, primarily driven by an increase in finance receivables, while total revenues for the nine-month period grew 19.8% year-over-year, net income declined sharply from $68.6 million to $18.3 million due to substantially higher provisions for credit losses and interest expenses, and the statements also include a correction of an immaterial error from previously issued financials related to deferred revenue and the allowance for credit losses [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows significant asset growth, primarily in finance receivables, funded by an increase in non-recourse notes payable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Jan 31, 2023 (Unaudited) | Apr 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $4,322 | $6,916 | | Finance receivables, net | $1,023,181 | $863,674 | | Inventory | $131,616 | $115,302 | | **Total Assets** | **$1,384,680** | **$1,154,696** | | **Liabilities & Equity** | | | | Non-recourse notes payable | $588,310 | $395,986 | | Revolving line of credit | $27,782 | $44,670 | | **Total Liabilities** | **$889,036** | **$677,762** | | **Total Equity** | **$495,244** | **$476,534** | - Total assets grew by **20%** from April 30, 2022, to January 31, 2023, primarily due to an **18.5%** increase in net finance receivables[10](index=10&type=chunk) - Total liabilities increased by **31.2%** over the same period, largely driven by a **48.6%** rise in non-recourse notes payable used to fund the growth in receivables[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Despite revenue growth, net income significantly declined due to higher credit loss provisions and increased interest expenses Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Jan 31, 2023 | Three Months Ended Jan 31, 2022 | Nine Months Ended Jan 31, 2023 | Nine Months Ended Jan 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $326,530 | $287,292 | $1,017,189 | $849,320 | | Provision for credit losses | $85,650 | $61,646 | $250,719 | $167,987 | | Interest expense | $9,765 | $2,944 | $25,460 | $7,439 | | Net Income | $1,508 | $19,140 | $18,344 | $68,618 | | Diluted EPS | $0.23 | $2.82 | $2.79 | $9.97 | - For the nine months ended January 31, 2023, total revenues increased **19.8%** YoY, but net income plummeted by **73.3%** due to a **49.2%** increase in the provision for credit losses and a **242.3%** increase in interest expense[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities consumed significant cash, primarily offset by cash provided from financing activities, largely through non-recourse notes Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Nine Months Ended Jan 31, 2023 | Nine Months Ended Jan 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($123,339) | ($102,671) | | Net cash used in investing activities | ($25,034) | ($15,199) | | Net cash provided by financing activities | $171,256 | $117,580 | - The company experienced a significant cash outflow from operations, primarily due to finance receivable originations (**$841.4 million**) outpacing collections (**$308.7 million**)[14](index=14&type=chunk) - Financing activities provided net cash of **$171.3 million**, largely from proceeds from non-recourse notes payable (**$400.2 million**), which was used to fund operations, investments, and pay down the revolving line of credit[14](index=14&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) Key notes detail the company's integrated auto sales and finance operations, significant credit loss allowance, recent debt offerings, and correction of prior immaterial errors - The company operates in the Integrated Auto Sales and Finance segment, selling older model used vehicles and providing financing to customers with limited credit histories through **157 dealerships** as of January 31, 2023 (Note A)[21](index=21&type=chunk) - The allowance for credit losses is a significant estimate, calculated to cover expected lifetime losses. As of January 31, 2023, the allowance was **$283 million**, or **23.65%** of the relevant finance receivables principal balance (Note B)[25](index=25&type=chunk)[43](index=43&type=chunk) - The company completed two non-recourse notes payable offerings: **$400.0 million** in April 2022 with a **5.14%** weighted average coupon rate, and **$400.2 million** in January 2023 with an **8.68%** rate (Note F)[94](index=94&type=chunk)[95](index=95&type=chunk) - Immaterial errors in prior financial statements were corrected, related to the classification of deferred ancillary product revenue at charge-off and the allowance for credit losses calculation. This increased previously reported net income for the nine months ended Jan 31, 2022, by **$2.0 million** (Note L)[120](index=120&type=chunk)[121](index=121&type=chunk) - Subsequent to the quarter end, on February 22, 2023, the company amended its loan agreement to expand its borrowing base by including vehicle contracts with terms up to **72 months** (Note M)[122](index=122&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 19.8% revenue growth for the first nine months of fiscal 2023 to a 13.3% increase in average retail sales price and a 4.0% increase in units sold, however, profitability was severely impacted by a decline in gross margin percentage (33.3% vs 36.8%) due to higher vehicle costs, and a significant increase in the provision for credit losses to 28.7% of sales as credit performance normalizes post-stimulus, while rising interest rates also drove interest expense up 242.3%, and the company is funding its growth in finance receivables through increased debt, including two recent securitization transactions, with management also disclosing and remediating a material weakness in internal controls related to its credit loss allowance calculation [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Revenue growth was offset by declining gross margins and significantly higher credit loss provisions, leading to a sharp drop in pretax income Comparison of Operations: Three Months Ended Jan 31, 2023 vs 2022 | Metric | Q3 FY2023 | Q3 FY2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $326.5M | $287.3M | 13.7% | | Gross Margin % | 33.6% | 36.7% | (3.1 p.p.) | | Provision for Credit Losses (% of Sales) | 31.1% | 24.8% | 6.3 p.p. | | Pretax Income | $1.8M | $25.3M | (92.9%) | Comparison of Operations: Nine Months Ended Jan 31, 2023 vs 2022 | Metric | YTD FY2023 | YTD FY2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,017.2M | $849.3M | 19.8% | | Gross Margin % | 33.3% | 36.8% | (3.5 p.p.) | | Provision for Credit Losses (% of Sales) | 28.7% | 22.7% | 6.0 p.p. | | Pretax Income | $23.5M | $88.7M | (73.5%) | - For the nine-month period, revenue growth was driven by a **13.3%** increase in average retail sales price to **$18,059** and a **4.0%** increase in retail units sold[151](index=151&type=chunk) - Net charge-offs as a percentage of average finance receivables increased to **16.9%** for the nine-month period, up from **13.3%** in the prior year, reflecting normalization from stimulus-aided lows[154](index=154&type=chunk) [Financial Condition](index=37&type=section&id=Financial%20Condition) Net finance receivables and inventory increased, with growth funded by a recent asset-backed securitization - Net finance receivables increased by **18.5%** since April 30, 2022, consistent with historical trends where receivables growth slightly outpaces revenue growth[157](index=157&type=chunk) - Inventory grew by **$16.3 million** since April 30, 2022, to support higher sales volumes and due to increased costs to prepare vehicles for resale[158](index=158&type=chunk) - The company completed a **$400.2 million** asset-backed securitization on January 31, 2023, using the proceeds to pay down its revolving credit facilities and support growth[163](index=163&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Operations consumed significant cash, primarily for finance receivable originations, with liquidity primarily sourced from borrowings and recent securitization market access - The company used **$123.3 million** in cash from operations in the first nine months of fiscal 2023, primarily to fund **$841.4 million** in new finance receivable originations[166](index=166&type=chunk)[168](index=168&type=chunk) - Primary sources of liquidity are income from operations and borrowings. The company has recently accessed the securitization market to increase borrowing capacity and diversify funding[164](index=164&type=chunk)[167](index=167&type=chunk) - As of January 31, 2023, the company had **$4.3 million** in cash and approximately **$148 million** of availability under its revolving credit facilities[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk related to its debt obligations, with the revolving credit facility of $27.8 million at quarter-end having a variable interest rate, where a hypothetical 1% increase in interest rates would increase annual interest expense by approximately $280,000, and while existing non-recourse notes are fixed-rate, future securitizations would likely carry higher rates in the current environment - The company's main market risk exposure is to interest rate changes on its debt obligations, particularly its revolving credit facilities[191](index=191&type=chunk) - The outstanding balance on the variable-rate revolving line of credit was **$27.8 million** at January 31, 2023. A **1%** increase in interest rates would result in an additional annual interest expense of about **$280,000**[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management disclosed a material weakness in internal control over financial reporting, identified in the previous quarter, related to the precision of review controls for the Current Expected Credit Losses (CECL) analysis, and due to this weakness, the CEO and CFO concluded that disclosure controls and procedures were not effective as of January 31, 2023, with the company actively remediating the issue by hiring new personnel with technical accounting expertise and engaging third-party advisors - A material weakness was identified in the company's internal control over financial reporting concerning the precision of management's review of the CECL analysis for the allowance for credit losses[195](index=195&type=chunk) - As a result of the material weakness, the CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of January 31, 2023[196](index=196&type=chunk) - Remediation efforts are underway, including hiring a new Senior Director of Finance and Reporting in January 2023 and engaging a third-party advisory service with CECL expertise[198](index=198&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings](index=46&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 outcomes to have a material adverse effect on its financial position, results of operations, or cash flows - The company is a defendant in various legal proceedings arising from its ordinary course of business[204](index=204&type=chunk) - Management does not anticipate that the final outcome of these proceedings will have a material adverse effect on the company's financials[204](index=204&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended April 30, 2022 - No material changes to the company's risk factors have occurred since the last annual report filing for the fiscal year ended April 30, 2022[205](index=205&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock under its authorized repurchase program during the third quarter of fiscal 2023, and has not historically paid dividends and does not expect to in the foreseeable future, with payments also being restricted by its credit agreements - No shares were repurchased under the company's stock repurchase program during the third quarter of fiscal 2023[206](index=206&type=chunk) - The company does not expect to pay cash dividends in the foreseeable future, and its ability to do so is limited by its lenders[207](index=207&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net charge-off percentage of 5.9%, which is flat sequentially and compared to the pre-pandemic third quarter of fiscal year 2019, but slightly above the five-year average of 5.6% [33] - Total collections increased by over 11% to $153 million, with collections per active customer per month rising by 5.9% to $519 [38] - The average selling price of vehicles increased by 8% or approximately $1,341 compared to the same period last year [28] Business Line Data and Key Metrics Changes - The company finished the quarter with over 14,500 units sold, with a sales performance increase of approximately 5% to 6% if not for adverse weather impacts [25][27] - The average originating contract term for the quarter was 42.5 months, compared to 40.4 months for the prior year quarter [38] - The gross margin for the quarter was reported at 33.6%, with a noted improvement of 147 basis points sequentially due to better management of wholesale vehicle sales [30][31] Market Data and Key Metrics Changes - The company noted that access to auto credit tightened again in January, reflecting the tightest conditions since June 2021, although there was a slight loosening for the independent dealer channel [8] - The company expects used car affordability to shift back to historical levels over time, which will likely increase customer demand for credit [7] Company Strategy and Development Direction - The company is focusing on improving processes, increasing accountability, and reorganizing work to maximize efficiency, with significant investments in ERP and CRM systems [12][13] - Acquisitions are expected to play a leading role in future growth, with plans to add five or more dealerships per year [14] - The company aims to achieve returns on equity at historical levels by increasing volume productivity and improving gross margins through procurement initiatives and acquisitions [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future cash flows improving as vehicle costs flatten and efficiencies in inventory management are gained [51] - The company is confident in its ability to provide quality vehicles with affordable payment terms, which is seen as a significant opportunity for growth [55] - Management highlighted the importance of the new loan origination system in enhancing customer experience and streamlining operations [54] Other Important Information - The company completed the acquisition of three new dealerships in December, located in Knoxville, Tennessee, and Tyler, Texas [14] - The weighted average age of the portfolio increased by 12.5% from approximately 8.8 months to 9.9 months [40] Q&A Session Summary Question: Inquiry about the impact of modifications on delinquencies - Management confirmed that modifications were slightly higher this quarter but within a normal range, and they are working with customers as they approach the income tax refund season [61][64] Question: Discussion on post-pandemic annual earnings run rate - Management indicated that cash-on-cash returns look healthy and they expect to achieve returns on equity closer to historical levels over time due to ongoing initiatives [68][69] Question: Inquiry about inventory levels and normalization - Management stated that they expect to return to historical levels of inventory and are making progress in addressing inventory challenges, although some work remains [72][75]

Part I. FINANCIAL INFORMATION Presents the unaudited financial information for America's Car-Mart, Inc., covering statements, notes, and management's analysis [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents unaudited condensed consolidated financial statements, including balance sheets, operations, cash flows, equity, and explanatory notes, with error corrections [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheets (Dollars in thousands) | (Dollars in thousands) | October 31, 2022 (Unaudited) | April 30, 2022 | |:-----------------------|:-----------------------------|:---------------| | **Assets:** | | | | Total Assets | $1,306,170 | $1,154,696 | | **Liabilities:** | | | | Total Liabilities | $813,453 | $677,762 | | **Equity:** | | | | Total Equity | $492,317 | $476,534 | - Total Assets increased by **$151,474 thousand (13.1%)** from April 30, 2022, to October 31, 2022, primarily driven by an increase in Finance receivables, net, and Inventory[7](index=7&type=chunk) - Total Liabilities increased by **$135,691 thousand (20.0%)** over the same period, largely due to a significant increase in the Revolving line of credit[7](index=7&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, costs, expenses, and net income for the reported interim periods Condensed Consolidated Statements of Operations (Dollars in thousands) | (Dollars in thousands) | Three Months Ended Oct 31, 2022 | Three Months Ended Oct 31, 2021 | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | |:-----------------------|:--------------------------------|:--------------------------------|:------------------------------|:------------------------------| | Total Revenues | $351,840 | $284,539 | $690,658 | $562,028 | | Total Costs & Expenses | $347,782 | $254,334 | $668,876 | $498,647 | | Net Income | $3,139 | $23,425 | $16,836 | $49,479 | | Basic EPS | $0.49 | $3.59 | $2.64 | $7.53 | | Diluted EPS | $0.48 | $3.41 | $2.56 | $7.14 | - Net income for the three months ended October 31, 2022, decreased significantly by **86.6% YoY**, from $23,425 thousand to $3,139 thousand[9](index=9&type=chunk) - For the six months ended October 31, 2022, net income decreased by **66.0% YoY**, from $49,479 thousand to $16,836 thousand[9](index=9&type=chunk) - Basic EPS for the three months decreased from **$3.59 to $0.49**, and for the six months, it decreased from **$7.53 to $2.64**[9](index=9&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports cash inflows and outflows from operating, investing, and financing activities for the interim periods Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | |:-------------------------------|:------------------------------|:------------------------------| | Net cash used in operating activities | $(92,678) | $(69,951) | | Net cash used in investing activities | $(16,667) | $(7,069) | | Net cash provided by financing activities | $103,852 | $76,251 | | Decrease in cash, cash equivalents, and restricted cash | $(5,493) | $(769) | - Net cash used in operating activities increased by **32.5% YoY**, from $(69,951) thousand to $(92,678) thousand, primarily due to higher finance receivable originations[11](index=11&type=chunk)[184](index=184&type=chunk) - Net cash used in investing activities more than doubled, increasing from $(7,069) thousand to $(16,667) thousand, driven by increased purchases of property and equipment[11](index=11&type=chunk) - Net cash provided by financing activities increased by **36.2% YoY**, from $76,251 thousand to $103,852 thousand, largely due to increased proceeds from the revolving line of credit[11](index=11&type=chunk) [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Outlines changes in shareholders' equity, including common stock, retained earnings, and treasury stock Condensed Consolidated Statements of Equity (In thousands) | (In thousands) | October 31, 2022 (Unaudited) | April 30, 2022 | |:---------------|:-----------------------------|:---------------| | Common Stock | $137 | $136 | | Additional Paid-In Capital | $107,275 | $103,113 | | Retained Earnings | $682,226 | $665,410 | | Treasury Stock | $(297,421) | $(292,225) | | Total Equity | $492,317 | $476,534 | - Total equity increased by **$15,783 thousand** from April 30, 2022, to October 31, 2022, primarily due to net income and stock-based compensation, partially offset by treasury stock repurchases[14](index=14&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Provides detailed explanations of the company's organization, accounting policies, and specific financial statement line items [A – Organization and Business](index=8&type=section&id=A%20%E2%80%93%20Organization%20and%20Business) Describes the company's business model as an integrated auto sales and finance retailer of used vehicles - America's Car-Mart, Inc. is a publicly held automotive retailer focused on the 'Integrated Auto Sales and Finance' segment of the used car market[18](index=18&type=chunk) - The Company primarily sells older model used vehicles and provides financing to customers with limited financial resources or credit histories[18](index=18&type=chunk) - As of October 31, 2022, the Company operated **154 dealerships** mainly in small cities across the South-Central United States[18](index=18&type=chunk) [B – Summary of Significant Accounting Policies](index=8&type=section&id=B%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) Details the key accounting principles and estimates used in preparing the interim financial statements - The financial statements are prepared in accordance with GAAP for interim financial information and Form 10-Q instructions, with all necessary adjustments included[19](index=19&type=chunk) - The Company operates as one reportable segment: Integrated Auto Sales and Finance, as individual dealerships meet aggregation criteria[21](index=21&type=chunk) - Significant estimates include the allowance for credit losses[22](index=22&type=chunk) - Restricted cash, totaling **$32,565 thousand** at October 31, 2022, is related to securitization transactions and is held for non-recourse note holders[28](index=28&type=chunk)[30](index=30&type=chunk) - The Company recognizes transfers of auto finance receivables into term securitization as secured borrowings, consolidating the trust as the primary beneficiary[31](index=31&type=chunk)[32](index=32&type=chunk) - Finance receivables are collateralized by vehicles, with an average interest rate of approximately **16.5%**; accounts are charged-off when timely collection is not probable, typically around 68 days past due[34](index=34&type=chunk)[39](index=39&type=chunk) - The allowance for credit losses is management's best estimate of lifetime expected losses, considering historical data, contract characteristics, delinquency levels, and macroeconomic factors[41](index=41&type=chunk)[45](index=45&type=chunk) - Revenue from used vehicle sales is recognized at contract signing and vehicle possession, while service contract and accident protection plan revenues are deferred and recognized over time[62](index=62&type=chunk) - The effective income tax rates were **22.7%** and **21.9%** for the six months ended October 31, 2022 and 2021, respectively[55](index=55&type=chunk) - The Company is evaluating ASU 2022-02 (Financial Instruments – Credit Losses), effective for fiscal years beginning after December 15, 2022, for its impact on financial statements[69](index=69&type=chunk) [C – Finance Receivables, Net](index=16&type=section&id=C%20%E2%80%93%20Finance%20Receivables%2C%20Net) Provides details on the company's finance receivables, including terms, credit quality, and allowance for losses - Finance receivables are installment sale contracts for used vehicles, with fixed interest rates of **16.5%** (**19.5%-21.5%** in Illinois) and terms of **18-54 months**[70](index=70&type=chunk) Finance Receivables, Net (In thousands) | (In thousands) | October 31, 2022 | April 30, 2022 | |:---------------------------------------|:-----------------|:---------------| | Gross contract amount | $1,584,745 | $1,378,803 | | Less unearned finance charges | $(325,096) | $(277,306) | | Principal balance | $1,259,649 | $1,101,497 | | Less allowance for credit losses | $(272,730) | $(237,823) | | **Finance receivables, net** | **$986,919** | **$863,674** | - Net charge-offs as a percentage of average finance receivables increased to **11%** for the six months ended October 31, 2022, compared to **8.4%** in the prior year, driven by increased frequency and severity of losses[75](index=75&type=chunk) - Principal collections as a percentage of average finance receivables decreased to **17.4%** for the six months ended October 31, 2022, from **21.9%** in the prior year, mainly due to term extensions and fewer early payoffs[76](index=76&type=chunk) Finance Receivables Principal Balance by Delinquency (Dollars in thousands) | (Dollars in thousands) | October 31, 2022 Principal Balance | Percent of Portfolio | April 30, 2022 Principal Balance | Percent of Portfolio | October 31, 2021 Principal Balance | Percent of Portfolio | |:-----------------------|:-----------------------------------|:---------------------|:---------------------------------|:---------------------|:-----------------------------------|:---------------------| | Current | $1,028,291 | 81.63% | $958,808 | 87.05% | $819,314 | 84.78% | | 3 - 29 days past due | $185,434 | 14.72% | $109,873 | 9.97% | $108,563 | 11.23% | | 30 - 60 days past due | $35,258 | 2.80% | $22,477 | 2.04% | $24,499 | 2.53% | | 61 - 90 days past due | $7,151 | 0.57% | $7,360 | 0.67% | $7,509 | 0.78% | | > 90 days past due | $3,515 | 0.28% | $2,979 | 0.27% | $6,540 | 0.68% | | **Total** | **$1,259,649** | **100.00%** | **$1,101,497** | **100.00%** | **$966,425** | **100.00%** | - The portfolio weighted average contract term increased to **44.8 months** at October 31, 2022, from **40.0 months** at October 31, 2021, primarily due to a **15.9%** increase in the average selling price[82](index=82&type=chunk) [D – Property and Equipment](index=19&type=section&id=D%20%E2%80%93%20Property%20and%20Equipment) Presents the breakdown and net value of the company's land, buildings, and other fixed assets Property and Equipment (In thousands) | (In thousands) | October 31, 2022 | April 30, 2022 | |:---------------------------------------|:-----------------|:---------------| | Land | $12,454 | $11,749 | | Buildings and improvements | $18,836 | $13,876 | | Furniture, fixtures and equipment | $18,176 | $16,189 | | Leasehold improvements | $43,214 | $36,392 | | Construction in progress | $15,143 | $14,234 | | Less accumulated depreciation and amortization | $(42,654) | $(41,002) | | **Total** | **$65,169** | **$51,438** | - Total property and equipment, net, increased by **$13,731 thousand (26.7%)** from April 30, 2022, to October 31, 2022[91](index=91&type=chunk) [E – Accrued Liabilities](index=19&type=section&id=E%20%E2%80%93%20Accrued%20Liabilities) Details various accrued expenses, including employee compensation, deferred sales tax, and interest payable Accrued Liabilities (In thousands) | (In thousands) | October 31, 2022 | April 30, 2022 | |:-------------------------------|:-----------------|:---------------| | Employee compensation | $11,854 | $12,865 | | Deferred sales tax | $8,354 | $7,388 | | Reserve for APP claims | $4,561 | $4,761 | | Fair value of contingent consideration | $3,544 | $3,544 | | Health insurance payable | $977 | $1,041 | | Accrued interest payable | $1,486 | $813 | | Other | $2,545 | $2,218 | | **Total** | **$33,321** | **$32,630** | - Total accrued liabilities increased by **$691 thousand (2.1%)** from April 30, 2022, to October 31, 2022, primarily due to increases in deferred sales tax and accrued interest payable[92](index=92&type=chunk) [F – Debt Facilities](index=20&type=section&id=F%20%E2%80%93%20Debt%20Facilities) Describes the company's debt structure, including non-recourse notes and revolving credit facilities Debt Facilities (In thousands) | (In thousands) | October 31, 2022 | April 30, 2022 | |:-------------------------------|:-----------------|:---------------| | Non-recourse notes payable, net | $249,622 | $395,986 | | Revolving line of credit, net | $302,123 | $44,670 | | **Total debt** | **$551,745** | **$440,656** | - Total debt increased by **$111,089 thousand (25.2%)** from April 30, 2022, to October 31, 2022[94](index=94&type=chunk) - The revolving line of credit increased significantly from **$44,670 thousand to $302,123 thousand**, while non-recourse notes payable decreased from **$395,986 thousand to $249,622 thousand**[94](index=94&type=chunk) - The revolving credit facilities mature in September 2024, with an interest rate of SOFR plus **2.35%** (**6.25%** at Oct 31, 2022)[103](index=103&type=chunk) - Non-recourse notes payable were issued in April 2022 with a weighted average fixed coupon rate of **5.14%** and mature through April 2029[106](index=106&type=chunk) [G – Fair Value Measurements](index=22&type=section&id=G%20%E2%80%93%20Fair%20Value%20Measurements) Explains the methodologies and categorization of fair value measurements for financial instruments - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) Fair Value Measurements (In thousands) | (In thousands) | October 31, 2022 Carrying Value | October 31, 2022 Fair Value | April 30, 2022 Carrying Value | April 30, 2022 Fair Value | |:------------------------------|:--------------------------------|:----------------------------|:------------------------------|:--------------------------| | Cash and cash equivalents | $4,529 | $4,529 | $6,916 | $6,916 | | Restricted cash | $32,565 | $32,565 | $35,671 | $35,671 | | Finance receivables, net | $986,919 | $774,684 | $854,290 | $677,421 | | Accounts payable | $24,763 | $24,763 | $20,055 | $20,055 | | Revolving line of credit | $302,123 | $302,123 | $44,670 | $44,670 | | Non-recourse notes payable | $249,622 | $249,622 | $395,986 | $395,986 | - The fair value of finance receivables, net, was **$774,684 thousand** at October 31, 2022, which is lower than its carrying value of $986,919 thousand, reflecting a discount based on potential third-party sale[114](index=114&type=chunk) [H – Weighted Average Shares Outstanding](index=24&type=section&id=H%20%E2%80%93%20Weighted%20Average%20Shares%20Outstanding) Provides the basic and diluted weighted average shares outstanding for EPS calculations Weighted Average Shares Outstanding | | Three Months Ended Oct 31, 2022 | Three Months Ended Oct 31, 2021 | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | |:--------------------------------|:--------------------------------|:--------------------------------|:------------------------------|:------------------------------| | Weighted average shares outstanding-basic | 6,368,840 | 6,529,846 | 6,371,083 | 6,567,020 | | Dilutive options and restricted stock | 179,431 | 333,427 | 203,845 | 363,584 | | Weighted average shares outstanding-diluted | 6,548,271 | 6,863,273 | 6,574,928 | 6,930,604 | - Basic weighted average shares outstanding decreased by **2.5%** for the three months and **3.0%** for the six months ended October 31, 2022, compared to the prior year[115](index=115&type=chunk) - Diluted weighted average shares outstanding decreased by **4.6%** for the three months and **5.1%** for the six months ended October 31, 2022, compared to the prior year[115](index=115&type=chunk) [I – Stock-Based Compensation](index=24&type=section&id=I%20%E2%80%93%20Stock-Based%20Compensation) Details the expense and activity related to the company's stock option and restricted stock awards - Total stock-based compensation expense was approximately **$2.8 million** (**$2.1 million** after tax) for the six months ended October 31, 2022, down from $3.9 million ($3.0 million after tax) in the prior year[116](index=116&type=chunk) - The Company granted **137,500 stock options** with a fair value of **$5.0 million** during the six months ended October 31, 2022, compared to 30,000 options with a fair value of $2.1 million in the prior year[122](index=122&type=chunk) - Unrecognized compensation cost for unvested options was **$5.2 million** with a weighted-average remaining vesting period of **1.4 years** as of October 31, 2022[123](index=123&type=chunk) - The aggregate intrinsic value of outstanding options decreased from **$24.2 million** at October 31, 2021, to **$5.1 million** at October 31, 2022[126](index=126&type=chunk) - Unrecognized compensation cost for unvested restricted stock awards was **$6.2 million** with a weighted-average remaining period of **4.4 years** as of October 31, 2022[129](index=129&type=chunk) [J – Commitments and Contingencies](index=26&type=section&id=J%20%E2%80%93%20Commitments%20and%20Contingencies) Outlines the company's lease obligations, letters of credit, and potential tax-related contingencies - The Company leases approximately **81%** of its dealership and office facilities, with rent expense of **$4.4 million** for the six months ended October 31, 2022, up from $3.9 million in the prior year[132](index=132&type=chunk) Maturity of Lease Liabilities (In thousands) | Maturity of lease liabilities | Amount (in thousands) | |:------------------------------|:----------------------| | 2023 (remaining) | $3,791 | | 2024 | $7,261 | | 2025 | $7,151 | | 2026 | $6,581 | | 2027 | $6,058 | | Thereafter | $51,065 | | Total undiscounted operating lease payments | $81,907 | | Less: imputed interest | $(20,411) | | Present value of operating lease liabilities | $61,496 | - The Company has two standby letters of credit totaling **$750,000** at October 31, 2022[134](index=134&type=chunk) - A tax deduction from intercompany sales of finance receivables between subsidiaries (Car-Mart of Arkansas and Colonial) reduces the overall effective state income tax rate, but failure to satisfy regulations could increase the rate[135](index=135&type=chunk) [K – Supplemental Cash Flow Information](index=27&type=section&id=K%20%E2%80%93%20Supplemental%20Cash%20Flow%20Information) Provides additional details on non-cash investing and financing activities and other cash flow items Supplemental Cash Flow Information (In thousands) | (In thousands) | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | |:----------------------------------------------------------------------------|:------------------------------|:------------------------------| | Interest paid | $15,023 | $4,430 | | Income taxes paid, net | $3,888 | $8,777 | | Inventory acquired in repossession and accident protection plan claims | $61,222 | $33,881 | | Reduction in net receivables for deferred ancillary product revenue at time of charge-off | $13,714 | $6,602 | | Net settlement option exercises | $- | $4,291 | - Interest paid increased significantly to **$15,023 thousand** for the six months ended October 31, 2022, from $4,430 thousand in the prior year[137](index=137&type=chunk) - Income taxes paid, net, decreased to **$3,888 thousand** from $8,777 thousand YoY[137](index=137&type=chunk) [L – Correction of an Immaterial Error in Previously Issued Financial Statements](index=27&type=section&id=L%20%E2%80%93%20Correction%20of%20an%20Immaterial%20Error%20in%20Previously%20Issued%20Financial%20Statements) Explains the correction of immaterial errors in prior financial statements related to revenue and credit loss classification - Immaterial errors were identified and corrected in historical financial statements related to the classification of deferred revenue of ancillary products at charge-off and the calculation for allowance for credit losses[138](index=138&type=chunk) - The correction reclassified deferred revenue from sales revenue to a reduction in customer accounts receivable at charge-off, impacting sales revenue, net charge-offs, provision for credit losses, and deferred tax liability[138](index=138&type=chunk) Balance Sheet Corrections (In thousands) | (In thousands) | April 30, 2022 As Previously Reported | Corrections | April 30, 2022 As Corrected | |:---------------------------------------------|:--------------------------------------|:------------|:----------------------------| | Finance receivables, net | $854,290 | $9,384 | $863,674 | | Deferred income tax liabilities, net | $28,233 | $2,216 | $30,449 | | Retained earnings | $658,242 | $7,168 | $665,410 | Statement of Operations Corrections (In thousands) | (In thousands) | Six Months Ended Oct 31, 2021 As Previously Reported | Corrections | Six Months Ended Oct 31, 2021 As Corrected | |:---------------------------------------------|:-----------------------------------------------------|:------------|:-------------------------------------------| | Sales | $498,025 | $(6,602) | $491,423 | | Provision for credit losses | $115,055 | $(8,714) | $106,341 | | Provision for income taxes | $13,409 | $493 | $13,902 | | Net income | $47,860 | $1,619 | $49,479 | | Net income attributable to common shareholders | $47,840 | $1,619 | $49,459 | | Basic EPS | $7.28 | $0.25 | $7.53 | | Diluted EPS | $6.90 | $0.24 | $7.14 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis of financial performance, condition, and liquidity, including forward-looking statements and critical estimates [Forward-Looking Information](index=29&type=section&id=Forward-Looking%20Information) Discusses statements about future objectives and performance, highlighting potential risks that could cause actual results to differ - The report contains forward-looking statements regarding future objectives, plans, goals, and expectations for operating performance, including revenue growth, credit losses, and liquidity[143](index=143&type=chunk) - Actual results may differ materially due to various risks, such as general economic conditions, credit facility availability, underwriting effectiveness, competition, and regulatory changes[144](index=144&type=chunk) [Overview](index=30&type=section&id=Overview) Provides a high-level summary of the company's financial performance, revenue drivers, and strategic investments - Revenue increased **22.9%** for the first six months of fiscal 2023, driven by a **31.2%** increase in interest income, a **15.9%** increase in average retail sales price, and a **4.6%** increase in retail units sold[148](index=148&type=chunk) - The average retail sales price increased due to tight supply and high demand for used vehicles, although slight declines in used vehicle values began toward the end of the second quarter[149](index=149&type=chunk) - Provision for credit losses as a percentage of sales was **27.6%** for the first six months of fiscal 2023, normalizing to pre-pandemic levels after positive impacts from stimulus payments in prior years[150](index=150&type=chunk)[151](index=151&type=chunk) - Gross profit dollars per retail unit sold increased by **$285 (4.7%)** for the first six months of fiscal 2023, but gross margin as a percentage of sales decreased to **33.2%** from **36.9%** due to higher purchase costs and inflationary pressures[154](index=154&type=chunk) - Total collections of principal, interest, and late fees increased by **$33.8 million (12.8%) YoY** for the first six months of fiscal 2023, but principal collections as a percentage of average finance receivables decreased to **17.4%** from **21.9%** due to longer contract terms[155](index=155&type=chunk) - The Company is investing in people, digital/technology, procurement/inventory management, and customer experience, including recent additions to its senior management team[157](index=157&type=chunk) [Three months ended October 31, 2022 vs. Three months ended October 31, 2021](index=32&type=section&id=Three%20months%20ended%20October%2031%2C%202022%20vs.%20Three%20months%20ended%20October%2031%2C%202021) Compares the company's financial results for the three-month periods, highlighting key revenue and expense trends Operating Statement (Dollars in Thousands) | (Operating Statement Dollars in Thousands) | October 31, 2022 | October 31, 2021 | % Change | |:-------------------------------------------|:-----------------|:-----------------|:---------| | Sales | $303,554 | $247,520 | 22.6% | | Interest income | $48,286 | $37,019 | 30.4% | | Total Revenues | $351,840 | $284,539 | 23.7% | | Cost of sales | $206,142 | $157,167 | 31.2% | | Selling, general and administrative | $42,911 | $37,161 | 15.5% | | Provision for credit losses | $88,828 | $56,491 | 57.2% | | Interest expense | $8,350 | $2,513 | 232.3% | | Pretax income | $4,058 | $30,205 | -86.6% | - Total revenues increased by **23.7% YoY**, driven by a **30.4%** increase in interest income and a **13.2%** increase in average retail sales price[161](index=161&type=chunk) - Cost of sales as a percentage of sales increased to **67.9%** from **63.5%**, leading to a gross margin decrease to **32.1%** from **36.5%**, primarily due to wholesale losses and higher inventory procurement costs[162](index=162&type=chunk) - Provision for credit losses as a percentage of sales increased to **29.3%** from **22.8%**, reflecting a **$158.2 million** growth in finance receivables and increased frequency and severity of losses[166](index=166&type=chunk) - Interest expense as a percentage of sales increased to **2.8%** from **1.0%**, due to rising interest rates and a **$232.1 million** increase in average borrowings[167](index=167&type=chunk) [Six months ended October 31, 2022 vs. Six months ended October 31, 2021](index=34&type=section&id=Six%20months%20ended%20October%2031%2C%202022%20vs.%20Six%20months%20ended%20October%2031%2C%202021) Compares the company's financial results for the six-month periods, focusing on revenue, costs, and profitability changes Operating Statement (Dollars in Thousands) | (Operating Statement Dollars in Thousands) | Six Months Ended Oct 31, 2022 | Six Months Ended Oct 31, 2021 | % Change | |:-------------------------------------------|:------------------------------|:------------------------------|:---------| | Sales | $598,031 | $491,423 | 21.7% | | Interest income | $92,627 | $70,605 | 31.2% | | Total Revenues | $690,658 | $562,028 | 22.9% | | Cost of sales | $399,257 | $309,930 | 28.8% | | Selling, general and administrative | $86,145 | $75,961 | 13.4% | | Provision for credit losses | $165,068 | $106,341 | 55.2% | | Interest expense | $15,695 | $4,496 | 249.1% | | Pretax income | $21,782 | $63,381 | -65.6% | - Total revenues increased by **22.9% YoY**, primarily due to a **15.9%** increase in average retail sales price and a **4.6%** increase in retail units sold[170](index=170&type=chunk) - Gross margin as a percentage of sales decreased to **33.2%** from **36.9%**, mainly due to wholesale losses and higher inventory procurement costs[171](index=171&type=chunk) - Provision for credit losses as a percentage of sales increased to **27.6%** from **21.6%**, with net charge-offs as a percentage of average finance receivables rising to **11.0%** from **8.4%**[174](index=174&type=chunk) - Interest expense as a percentage of sales increased to **2.6%** from **0.9%**, driven by rising interest rates and a **$236.9 million** increase in average borrowings[175](index=175&type=chunk) [Financial Condition](index=35&type=section&id=Financial%20Condition) Analyzes changes in key balance sheet items, including receivables, inventory, and property and equipment Financial Condition (In thousands) | (In thousands) | October 31, 2022 | April 30, 2022 | |:---------------------------------|:-----------------|:---------------| | Finance receivables, net | $986,919 | $863,674 | | Inventory | $130,298 | $115,302 | | Income tax receivable, net | $4,389 | $274 | | Property and equipment, net | $65,169 | $51,438 | | Accounts payable and accrued liabilities | $58,084 | $52,685 | | Deferred revenue | $106,508 | $92,491 | | Deferred tax liabilities, net | $35,620 | $30,449 | | Non-recourse notes payable | $249,622 | $395,986 | | Revolving line of credit | $302,123 | $44,670 | - Finance receivables, net, increased by **14.3%** since April 30, 2022, and **30.3%** since October 31, 2021, consistent with historical patterns of growth slightly exceeding revenue growth[176](index=176&type=chunk) - Inventory increased by **$15.0 million** due to higher sales volumes, increased investment in inventory quantities, and higher costs for vehicle preparation[177](index=177&type=chunk) - Property and equipment, net, increased by **$13.7 million**, primarily from **$16.5 million** in technology investments and remodeling/relocating existing dealerships[178](index=178&type=chunk) - Deferred revenue increased by **$14.0 million**, mainly from increased sales of accident protection plans and service contracts with longer terms[181](index=181&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash flows, debt capacity, and future capital allocation plans - Cash flows from operations decreased for the six months ended October 31, 2022, primarily due to larger finance receivable originations and deferred revenue, partially offset by increased collections[184](index=184&type=chunk) - Increased vehicle purchase costs lead to higher selling prices, which can pressure gross margins and contract terms due to customers' limited incomes[185](index=185&type=chunk) - The supply of used vehicles remains tight due to modest new vehicle sales and pandemic-related disruptions, although slight declines in used car prices began in Q2 fiscal 2023[188](index=188&type=chunk) - The Company's revolving credit facilities restrict distributions and stock repurchases, allowing repurchases up to **$50 million** (net of stock option proceeds) or **75%** of consolidated net income, subject to availability[192](index=192&type=chunk) - At October 31, 2022, the Company had **$4.5 million** cash on hand and **$72.8 million** additional availability under its revolving credit facilities[193](index=193&type=chunk) - Future capital will be used to grow finance receivables, purchase **$25 million** in fixed assets (technology, refurbishments, new dealerships), repurchase common stock, and reduce debt[194](index=194&type=chunk) [Off-Balance Sheet Arrangements](index=39&type=section&id=Off-Balance%20Sheet%20Arrangements) Identifies and describes any material off-balance sheet arrangements that could impact financial condition - The Company has two standby letters of credit totaling **$750,000** at October 31, 2022, related to insurance policies[196](index=196&type=chunk) - No other material off-balance sheet arrangements are expected to significantly impact the Company's financial condition or results[197](index=197&type=chunk) [Related Finance Company Contingency](index=41&type=section&id=Related%20Finance%20Company%20Contingency) Explains the tax implications of intercompany finance receivable sales and associated regulatory risks - Intercompany sales of finance receivables between Car-Mart of Arkansas and Colonial allow for a tax deduction, reducing the effective state income tax rate by approximately **250 basis points**[199](index=199&type=chunk) - Failure to comply with IRS regulations regarding these transactions could result in the loss of the tax deduction and an increase in the effective income tax rate[199](index=199&type=chunk) [Critical Accounting Estimates](index=41&type=section&id=Critical%20Accounting%20Estimates) Highlights the most significant accounting estimates, particularly the allowance for credit losses, and their underlying assumptions - The most significant accounting estimate is the allowance for credit losses, which covers estimated losses on outstanding finance receivables[201](index=201&type=chunk)[202](index=202&type=chunk) - At October 31, 2022, the allowance for credit losses was **$272.7 million**, representing **23.65%** of the principal balance in finance receivables[202](index=202&type=chunk) - The calculation considers historical loss experience, recent trends, contract characteristics, delinquency levels, collateral values, economic conditions, and underwriting/collection practices[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) [Recent Accounting Pronouncements](index=43&type=section&id=Recent%20Accounting%20Pronouncements) Discusses the potential impact of newly issued accounting standards on the company's financial statements - The Company is evaluating ASU 2022-02, 'Financial Instruments – Credit Losses,' which changes the methodology for measuring and timing of recording credit losses, effective for fiscal years beginning after December 15, 2022[211](index=211&type=chunk) [Seasonality](index=43&type=section&id=Seasonality) Describes the seasonal patterns in vehicle sales and their potential impact on annual revenues and operating results - The Company's third fiscal quarter (November-January) is historically the slowest for vehicle sales, while the first (May-July) and fourth (February-April) quarters are the busiest[212](index=212&type=chunk) - Adverse conditions during peak sales quarters could disproportionately impact annual revenues and operating results[213](index=213&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Outlines the company's exposure to market risks, primarily interest rate fluctuations on debt obligations - The Company's primary market risk exposure is to changes in interest rates, particularly on its revolving credit facilities[214](index=214&type=chunk)[215](index=215&type=chunk) - A **1%** increase in interest rates on the **$302.1 million** revolving line of credit outstanding at October 31, 2022, would result in an approximate **$3.0 million** increase in annual interest expense[215](index=215&type=chunk) - Finance receivables carry a fixed interest rate of **16.5%** (**19.5%-21.5%** in Illinois), while revolving credit facilities have variable interest rates[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Details the evaluation of disclosure controls and procedures, including identified material weaknesses and remediation efforts [a) Evaluation of Disclosure Controls and Procedures](index=44&type=section&id=a)%20Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Reports on management's assessment of the effectiveness of disclosure controls and identified material weaknesses - Management identified a material weakness in internal control over financial reporting at October 31, 2022, related to the lack of precision in reviewing inputs and results for the CECL analysis[218](index=218&type=chunk) - This material weakness was due to a reduction in technical accounting expertise and lack of segregation of duties from recent staffing turnover[218](index=218&type=chunk) - Despite the material weakness, management concluded that the condensed consolidated financial statements fairly present the Company's financial position, results of operations, and cash flows[219](index=219&type=chunk) [Management's Remediation Efforts](index=44&type=section&id=Management's%20Remediation%20Efforts) Describes the actions being taken by management to address and remediate the identified material weakness - Remediation efforts include filling vacant positions, expanding technical accounting expertise, implementing third-party software, and strengthening review controls on the CECL analysis[221](index=221&type=chunk) - The material weakness will be considered remediated after controls operate effectively for a sufficient period and are tested[222](index=222&type=chunk) [b) Changes in Internal Control Over Financial Reporting](index=44&type=section&id=b)%20Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Discusses any changes in internal control over financial reporting during the period - The Company is actively taking actions to remediate the identified material weakness in internal control over financial reporting[223](index=223&type=chunk) [Inherent Limitations on Effectiveness of Controls](index=44&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls) Acknowledges that internal control systems provide reasonable, but not absolute, assurance against misstatements - Management acknowledges that control systems provide only reasonable, not absolute, assurance and may not prevent or detect all misstatements due to inherent limitations and resource constraints[224](index=224&type=chunk) PART II Covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) States that ongoing legal proceedings are not expected to materially impact the company's financial position - The Company is a defendant in various legal proceedings in the ordinary course of business[227](index=227&type=chunk) - The Company does not anticipate that the final outcome of these proceedings will have a material adverse effect on its financial position, results of operations, or cash flows[227](index=227&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to the company's previously disclosed risk factors since the last annual report - No material changes to the Company's risk factors have occurred since the disclosure in its Form 10-K for the fiscal year ended April 30, 2022[228](index=228&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports on common stock repurchase activity and the company's dividend policy, including credit facility limitations - No shares were repurchased under the Company's stock repurchase program during the second quarter of fiscal 2023[229](index=229&type=chunk) - The Company has not historically issued dividends and does not expect to do so in the foreseeable future[230](index=230&type=chunk) - The Company's ability to pay dividends or make other distributions is limited by its revolving credit facilities, requiring lender consent[230](index=230&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Indicates that this item is not applicable, signifying no defaults on senior securities - This item is not applicable[231](index=231&type=chunk) [Item 4. Mine Safety Disclosure](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) Indicates that this item is not applicable, signifying no mine safety disclosures - This item is not applicable[232](index=232&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) Indicates that this item is not applicable, signifying no other material information to disclose - This item is not applicable[233](index=233&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) Lists all documents filed as exhibits to the Form 10-Q, including organizational and certification documents - The exhibits include Articles of Incorporation, Amended and Restated Bylaws, an Employment Agreement, CEO and CFO certifications, and various Inline XBRL documents[235](index=235&type=chunk) SIGNATURES Provides the official signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report is signed by Jeffrey A. Williams, Chief Executive Officer, and Vickie D. Judy, Chief Financial Officer, on December 9, 2022[239](index=239&type=chunk)[240](index=240&type=chunk)

America's Car-Mart, Inc. (NASDAQ:CRMT) Q2 2023 Earnings Conference Call November 17, 2022 11:00 AM ET Company Participants Jeff Williams - President & Chief Executive Officer Doug Campbell - President Vickie Judy - Chief Financial Officer Conference Call Participants John Rowan - Janney Kyle Joseph - Jefferies Vincent Caintic - Stephens Operator Good morning, everyone. Thank you for holding, and welcome to America's Car-Mart Second Quarter Fiscal 2023 Conference Call. The topic of this call will be the earn ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 0-14939 AMERICA'S CAR-MART, INC. (Exact name of registrant as specified in its charter) Texas 63-0851141 (State or other juri ...