Group 1 - Asbury Automotive Group, Inc. (NYSE: ABG) has seen a modest performance over the past year, with a gain of approximately 7% [1] - The company's core maintenance business is performing well, but there are ongoing concerns that auto tariffs may negatively impact car sales and profit margins [1]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $341.3 million, a decrease of 1.9% from the prior year, primarily due to fewer retail units sold [12] - Gross margin expanded to 36.6%, a 160 basis point increase over the prior year quarter [14] - Interest income increased by 7.5%, supported by a larger portfolio and more payments collected year over year [12] - Total collections rose by 6.2% to $183.6 million, highlighting the effectiveness of the Pay Your Way platform [19] - Operating expenses for SG&A totaled $51.4 million, a 10.1% increase from $46.7 million in the prior year [18] Business Line Data and Key Metrics Changes - Volumes declined by 5.7% to 13,568 units compared to 14,391 units a year ago [13] - The average selling price of vehicles decreased by $144 year over year [13] - The company saw a 10% year-over-year increase in credit applications, indicating strong customer demand [15] Market Data and Key Metrics Changes - The procurement costs rose by an incremental $500 per unit during the quarter, impacting inventory capacity [7] - Delinquencies greater than thirty days increased to 3.8%, representing a 30 basis point increase [20] - The average FICO score for new contracts improved by approximately 20 points year over year [50] Company Strategy and Development Direction - The company is focused on quality, growth with affordability, and protecting returns while modernizing payment and collections processes [29] - The rollout of LOS V2 and risk-based pricing is expected to drive improvements in deal quality and cash flow predictability [27] - The company is actively exploring alternative financing solutions to address capital constraints impacting working capital and inventory management [26] Management's Comments on Operating Environment and Future Outlook - Management noted that demand remained solid, with a significant increase in credit applications, particularly in July and August [15][33] - The company expects to see a positive effect on revenue from average selling prices, excluding ancillary products, while remaining disciplined on gross margin [14] - Management expressed confidence in the company's ability to navigate current challenges and position for long-term growth [27] Other Important Information - The company completed a $216 million term securitization at a weighted average interest rate of 6.27% [22] - The recent securitization transaction was nearly eight times oversubscribed for Class A notes and nearly 16 times for Class B notes, indicating strong market interest [22] - The company has taken significant steps to remediate material weaknesses in financial reporting and enhance transparency [25] Q&A Session Summary Question: What has been observed regarding procurement costs subsequent to the quarter end? - Management indicated that pricing has smoothed out and has come down slightly, with demand remaining strong [33] Question: How quickly can delinquencies stabilize with the new LOS systems? - Management expects normal seasonal fluctuations in net charge-offs and believes the portfolio is now weighted with mostly new underwriting in place [36] Question: What are the expectations for SG&A expenses moving forward? - Management anticipates that roughly half of the SG&A increase from this quarter will unwind in the second half of the year as technology implementations are completed [38] Question: What is the outlook for used car pricing and the duration of impacts from tariffs? - Management expects some seasonality and pricing decline in the back half of the year, as the effects of tariffs become known [45] Question: How is the health of the consumer characterized given the increase in delinquencies? - Management noted that while the consumer base is generally strained, the structures in place today are much better than a year ago, with a significant portion of the portfolio under enhanced underwriting standards [60]

Nasdaq: CRMT Q1 FY'26 Supplemental Slides AMERICA'S CAR-MART, INC. September 4, 2025 Disclaimers This presentation has been prepared as a supplement to the Company's earnings announcement for the first quarter of fiscal year 2026 and does not purport to be all-inclusive or to contain all of the information regarding the Company. The information and data contained herein should be read in conjunction with, and not in lieu of, the Company's annual, quarterly and other reports filed with the Securities and Exc ...

Core Insights - America's Car-Mart, Inc. reported a total revenue of $341.3 million for the first quarter of fiscal year 2026, reflecting a decrease of 1.9% compared to the same period in the previous year, primarily due to a decline in sales volumes [7][13] - The company has implemented strategic investments, including the launch of LOS V2 and an upgraded collections platform, which have positively impacted consumer demand and operational efficiency [3][4] Financial Performance - Total revenue decreased by 1.9% to $341.3 million, driven by a 5.7% decline in sales volumes to 13,568 units [7][13] - Interest income increased by $4.6 million, or 7.5%, contributing to total collections rising by 6.2% to $183.6 million [7][13] - Gross margin percentage improved by 160 basis points to 36.6%, reflecting better vehicle pricing and reduced repair costs [7][15] - The net loss for the quarter was $5.7 million, resulting in a loss per share of $0.69, compared to a loss of $0.15 in the prior year [7][34] Operational Metrics - Customer demand remained strong, with a 10% year-over-year increase in credit applications, although sales volumes declined due to inventory constraints [3][14] - The average retail sales price increased by 1.4% to $19,564, while the total gross profit per retail unit sold rose by 6.6% to $7,456 [23][33] - The allowance for credit losses improved to 23.35% of finance receivables, down from 25.00% a year earlier, indicating better risk management [18][36] Strategic Initiatives - The deployment of LOS V2 has enhanced underwriting capabilities, leading to a 15% increase in credit applications from higher-ranking customers [5][12] - The upgraded Pay Your Way platform has shifted customer payments from in-store to online, improving convenience and payment consistency [3][4] - The company is focused on improving portfolio quality, with nearly 72% of its portfolio now operating under enhanced underwriting standards [5][20] Financing and Leverage - The company completed a term securitization transaction on August 28, 2025, issuing $172 million in asset-backed notes, which helped pay down the revolving line of credit [21] - Debt to finance receivables ratio improved to 51.1%, down from 53.4% a year earlier, indicating better leverage management [19][40]

Core Viewpoint - Lithia & Driveway has announced a private offering of $600 million in senior notes with a 5.500% interest rate, increasing the offering size by $100 million from previous announcements, aimed at repaying a portion of outstanding borrowings under revolving credit lines [1] Group 1: Financial Details - The private offering is expected to close on September 10, 2025, subject to customary closing conditions [1] - The net proceeds from the offering will be used for repaying borrowings and may be reborrowed for general corporate purposes, including acquisitions and working capital [1] Group 2: Regulatory Information - The offering is exempt from the registration requirements of the Securities Act of 1933 and will be sold only to qualified institutional buyers in the U.S. and outside the U.S. under specific regulations [2] - The notes have not been registered under the Securities Act or any state securities laws, and cannot be offered or sold in the U.S. without registration or an applicable exemption [2] Group 3: Company Overview - Lithia & Driveway is the largest global automotive retailer, providing a wide range of products and services throughout the vehicle ownership lifecycle [4] - The company aims to modernize personal transportation solutions through a comprehensive network of physical locations, e-commerce platforms, and other services, delivering consistent and profitable growth in a large and unconsolidated industry [4]

Company Overview - Sonic Automotive is a leading automotive retailer in the United States, involved in selling new and used cars, light trucks, and offering warranties, service contracts, vehicle financing, and insurance [11] - The company also provides maintenance and repair services, and sells replacement parts and aftermarket automotive products [11] Investment Insights - Sonic Automotive has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12] - The company has a Momentum Style Score of B, with shares increasing by 14.7% over the past four weeks [12] - Four analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.71 to $7.12 per share [12] - Sonic Automotive has an average earnings surprise of +7%, suggesting potential for positive performance [12] Conclusion - With a strong Zacks Rank and favorable Momentum and VGM Style Scores, Sonic Automotive is recommended for investors' consideration [13]

Core Insights - America's Car-Mart, Inc. has successfully completed a term securitization transaction, issuing $172 million in asset-backed notes with a weighted average coupon of 5.46% [1] - The transaction includes $133.34 million of Class A Notes with a coupon rate of 5.01% and $38.62 million of Class B Notes with a coupon rate of 6.08% [2] - The Class A Notes were nearly 8 times oversubscribed, while the Class B Notes were almost 16 times oversubscribed, indicating strong market interest [3] Financial Performance - The company has achieved its fourth consecutive improvement in the overall weighted average coupon, reducing the weighted average spread by 308 basis points since the previous transaction in 2024-1 [3] - The favorable pricing of the notes is attributed to strong demand and improved operating performance within the company's portfolio [3] Company Overview - America's Car-Mart operates automotive dealerships in 12 states and is a leading publicly held automotive retailer focused on the integrated auto sales and finance segment of the used car market [5] - The company emphasizes superior customer service and strong personal relationships with customers, primarily operating in smaller cities throughout the South-Central United States [5]

Core Insights - NETSOL Technologies, Inc. has been selected by Sonic Automotive, Inc. to lead a discovery engagement for a next-generation omnichannel digital retail platform powered by NETSOL's Transcend Retail [1][2][4] - This strategic engagement aims to enhance customer experience and dealer operations, particularly within Sonic's EchoPark Automotive operations, by defining a scalable platform architecture [2][3] - The partnership reflects a broader industry trend where leading dealership groups are prioritizing digital transformation to meet evolving consumer expectations [3][4] Company Overview - NETSOL Technologies specializes in AI-powered solutions for the asset finance and leasing industry, serving clients across over 30 countries since its inception in 1996 [5] - The company is recognized for its innovative asset finance solutions and commitment to customer success, leveraging advanced AI and cloud services [5] - Sonic Automotive, a Fortune 500 company, aims to become the most valuable diversified automotive retail and service brand in America, focusing on creating exceptional guest experiences through strategic technology investments [6]

Core Viewpoint - Lithia & Driveway has increased its share repurchase authorization by $750 million, raising the total repurchase capacity to $1.08 billion, reflecting confidence in the company's strategy and cash generation capabilities [1][2]. Company Overview - Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle, including physical locations, e-commerce platforms, and finance solutions [3]. Share Repurchase Program - The company has invested $242 million to repurchase approximately 812,000 shares at a weighted average price of $298 per share in the third quarter to date [2]. - Total repurchases in 2025 amount to $492 million, representing 6.1% of shares outstanding [2]. Strategic Focus - The increase in share repurchase underscores the company's long-term conviction in its strategy and the attractiveness of repurchases as a value-accretive complement to ongoing growth investments [2]. - The company emphasizes disciplined return on invested capital and a commitment to maximizing shareholder returns [2].

Core Insights - Carvana Co. (CVNA) aims for a 40% compound annual growth in unit sales over the next five years, focusing on reconditioning as a key operational area [1][9] Operational Focus - The integration of 12 ADESA sites has expanded inventory access and reduced vehicle transport distances, despite requiring upfront investments [2][9] - Logistics improvements have led to a reduction in average miles traveled per vehicle, supporting long-term growth while maintaining efficiency [3][9] - Market operations are enhancing delivery speeds and building capacity ahead of demand, utilizing large data sets to fuel AI models for better customer communication and cost reduction [4][9] Competitive Landscape - Competitors like Group 1 Automotive, Inc. (GPI) and Lithia Motors, Inc. (LAD) are expanding their geographical footprints to boost sales, although they have not set ambitious annual vehicle sales goals [5] - Group 1 has made several acquisitions in 2025, including dealerships in the UK and Florida, projected to contribute approximately $640 million in annualized revenues [6] - Lithia has also expanded its presence with acquisitions expected to generate around $400 million in annualized revenues [7] Financial Performance - Carvana has outperformed the Zacks Internet – Commerce industry year to date, with shares gaining 75.9% compared to the industry's 13% growth [8] - The company appears overvalued based on its price/sales ratio, trading at a forward sales multiple of 3.47, higher than the industry's 2.29 [10] - The Zacks Consensus Estimate for 2025 and 2026 EPS has increased by 3 cents and 41 cents, respectively, in the past 30 days [11]