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 ...

ROGERS, Ark., March 08, 2024 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ:CRMT) ("we," "Car-Mart" or the "Company"), today reported financial results for the third quarter ended January 31, 2024. Third Quarter Key Highlights (Q3 FY24 vs. Q3 FY23, unless otherwise noted) Completed implementation of updated loan origination system (LOS)Q3 revenue was $299.6 million, down 7.9%Total collections increased 9.3%Allowance for credit loss adjusted to 25.74%, down sequentially 30 bpsNet charge-offs as a % of ...

EXHIBIT 99.1 Third Quarter Key Highlights (Q3 FY24 vs. Q3 FY23, unless otherwise noted) "We continue to navigate a challenging macro environment facing our customers and remain focused on their success. While sales volumes fell short of our expectations during the quarter, they are not reflective of the efforts put forth by the team. I am encouraged by our continued progress during the quarter in gross profit, credit losses, and initial results generated by our loan origination system. We have implemented s ...

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 October 31, 2023 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) (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $361.6 million, up 2.8% year-over-year, primarily due to a 23% increase in interest income [12][68] - Sales volumes decreased to 15,162 units from 15,885 units sold last year, reflecting a decline of 4.6% [6][68] - Gross profit dollars per retail unit sold improved by 11.5%, and gross profit percentage increased by 220 basis points year-over-year [13] - The allowance for credit loss increased from 23.91% to 26.04% sequentially, resulting in a $28 million charge to provision expense [79] Business Line Data and Key Metrics Changes - Average down payments for the quarter were 4.9%, down 30 basis points year-over-year, but the new loan origination system (LOS) generated higher inbound payments [8][68] - The gross margin initiatives improved materially year-over-year, although there was a slight sequential decrease due to sales mix [9][13] - Inventory dollars decreased by $16.5 million from the prior year quarter, with inventory turns improving to 7.1 compared to 6.7 [104] Market Data and Key Metrics Changes - The company onboarded three additional states, bringing the total to five states, which accounted for about 45% of revenue at quarter end [7] - Online credit applications increased by 19%, and unique website visitors were up 23%, indicating strong demand despite showroom traffic softness [51][97] Company Strategy and Development Direction - The company is focused on operational efficiencies, reducing costs, and prudent capital management to enhance competitive advantages [83] - The rollout of the new LOS is aimed at improving underwriting and sales origination processes, with full implementation expected by the third quarter [69][99] - The company is actively evaluating opportunities to acquire productive stores, enhancing its dealership group [39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in delinquencies and unit losses, although the macro environment remains challenging for consumers [11][83] - The company is committed to addressing affordability challenges for consumers and improving vehicle quality through partnerships [10][75] - Management acknowledged the impact of inflation on consumer behavior and the need for strategic adjustments in underwriting [101][125] Other Important Information - The company has $4.3 million in unrestricted cash and approximately $86 million in additional availability under revolving credit facilities [19] - The company plans to continue share repurchases as part of its capital allocation strategy [117] Q&A Session All Questions and Answers Question: What were the underwriting changes in October impacting volume? - Management indicated that the underwriting changes were aimed at decreasing terms and increasing down payments due to rising credit losses [134] Question: What is the outlook for share repurchases given the loss reported? - Management confirmed that share repurchases will continue as part of the capital allocation strategy, ensuring opportunities are not missed [136] Question: How does the company plan to address the affordability challenges faced by consumers? - Management highlighted efforts to improve vehicle quality and affordability, which are critical to generating demand despite external challenges [129]

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 ...