Car-Mart(US:CRMT)2024-03-07 16:00Financial Performance - Q3 FY24 revenue was $299.6 million, down 7.9% from $325.3 million in Q3 FY23[12] - Loss per share for the quarter was $1.34, compared to diluted earnings per share of $0.23 in the prior year[12] - Revenues for the nine months ended January 31, 2024, were $854,170, a decrease of 1.8% compared to $869,775 in the same period of 2023[26] - Net income (loss) for the nine months ended January 31, 2024, was $(31,819), a significant decline from a net income of $18,344 in the same period of 2023[26] Profitability and Expenses - Gross profit per unit increased to $7,043, a 10.5% improvement from $6,373 in the prior year[5] - SG&A expenses were $43.6 million, down from $44.7 million in the prior year quarter, reflecting a 6.7% decrease per average account[14] - Interest income increased by 21.8% year-over-year, reaching $175,051, contributing positively to overall financial performance[26] Credit and Collections - The allowance for credit losses decreased to 25.74%, providing a $3.9 million benefit to the provision for credit losses[6] - The provision for credit losses rose by 28.2% to $321,300, compared to $250,719 in the prior year, indicating increased risk in finance receivables[26] - Net charge-offs as a percentage of average finance receivables increased to 6.8% from 5.9% in the prior quarter[12] - Net charge-offs as a percentage of average finance receivables increased to 6.8% from 5.9% year-over-year, indicating a rise in credit losses[30] - Total collections increased by 9.3% year-over-year, indicating improved cash flow management[12] Sales and Market Activity - Sales volume decreased to 11,664 units, down 19.6% compared to 14,508 units in the prior year quarter[13] - The average retail sales price increased by 7.5%, partially offsetting the overall revenue decline driven by fewer retail units sold[29] - The average down-payment percentage for finance receivables was 5.1%, up from 4.8% in the previous year, reflecting improved customer financing conditions[35] Strategic Initiatives - The company completed the acquisition of Central Auto Sales in Hot Springs, Arkansas, and is exploring further acquisition opportunities[7] - The company entered a strategic partnership with Cox Automotive in February, aimed at enhancing vehicle acquisition and remarketing processes[32] Financial Position - Total assets increased to $1,466,947,000 from $1,414,737,000, reflecting a growth of 3.5% year-over-year[54] - Total equity as of January 31, 2024, was $469,007, a decrease from $498,547 in the previous year[48] - Shares outstanding rose to 6,391,061 from 6,373,404, indicating an increase of approximately 0.3%[54] - Restricted cash from collections on auto finance receivables increased to $90,350,000 compared to $58,238,000, representing a growth of 55.1%[54] - The balance of treasury stock remained stable at $297,757,000, unchanged from the previous period[54] - There were no changes in the prior year net income or shareholder's equity due to reclassification of some items[54]