BENTONVILLE, Ark., Feb 15, 2012 (GlobeNewswire via COMTEX) –
America’s Car-Mart, Inc.
/quotes/zigman/87468/quotes/nls/crmt CRMT
-1.84%
today announced its operating results for its third fiscal quarter ended January 31, 2012.
Highlights of third quarter operating results:
— Net income of $7.3 million ($.73 per diluted share) vs. $5.7 million
($.52 per diluted share) for prior year quarter (40.4% increase in fully
diluted earnings per share)
— Net charge-offs as a percentage of average Finance Receivables of 5.7%
vs. 6.1% for the prior year quarter
— Revenue increase of 13.8% to $105.4 million from $92.6 million for the
prior year quarter with same store revenue growth of 7.9%
— Selling, General & Administrative Expenses of 18.3% of sales vs. 19.2%
for prior year quarter
— Retail unit sales increase of 8.5% to 8,965 from 8,266 for the prior
year quarter.
— Strong cash flows supporting the significant increase in revenues and
the $12.9 million increase in Finance Receivables, $1.2 million in net
capital expenditures, and $3.5 million in common stock re-purchases with
only a $7.4 million increase in total debt
— Active customer base now over 53,000
— Debt to equity of 45.7% and debt to finance receivables of 26.0%
— Allowance for credit losses remains unchanged at 22.0% of Finance
Receivables
— Provision for credit losses of 22.2% of sales vs. 21.9% for prior year
quarter
Highlights of nine month operating results:
— Net income of $23.3 million ($2.28 per diluted share) vs. $19.8 million
($1.77 per diluted share) for prior year period (28.8% increase in fully
diluted earnings per share)
— Net charge-offs as a percentage of average Finance Receivables of 17.7%
flat with prior year period
— Revenue increase of 14.8% to $317 million from $276 million for the
prior year period with same store revenue growth of 8.3 %
— Selling, General & Administrative Expenses of 17.6% of sales vs. 18.3%
for prior year period
— Retail unit sales increase of 10.9% to 27,933 from 25,178 for the prior
year period. Average retail units sold per store per month increased to
28.5 from 28.0
— Strong cash flows supporting the significant increase in revenues and
the $39.9 million increase in Finance Receivables, $3.2 million in net
capital expenditures, and $29.9 million in common stock re-purchases
with only a $36.3 million increase in total debt
— Provision for credit losses of 21.8% of sales vs. 21.4% for prior year
period
“We saw the continuation of our strong operating results in the third quarter. By staying focused on customer success we have been able to consistently produce outstanding returns. Our strong performance is the direct result of taking great care of our customers, one at a time. We operate in a difficult business and the dedication and compassion demonstrated every day by all of our associates truly makes us stand out as the industry leader,” said William H. (“Hank”) Henderson, President and Chief Executive Officer of America’s Car-Mart. “As we look forward, we are very excited to have the opportunity to not only grow our customer base in existing locations but to continue to add great new locations in the future. Our new store openings continue to go very well and these stores are really important in achieving our long-term goals. All of our efforts are directed to helping our customers succeed by working with them when they experience financial difficulties. This is what we do and we have done it very well for over 30 years.”
“We are very pleased with our financial performance for the quarter. From an average store base of 111 we saw an 8.5% increase in unit sales and a 7.9% increase in same store revenues. Once again, based on our strong top line growth, we had impressive leveraging at the Selling, General and Administrative line. Our existing store base will continue to support significant growth into the future, and with the addition of new dealerships, we are committed to serving a growing customer base looking for good, basic, affordable transportation. Our focus on customer success continues to show up in our results,” said Jeff Williams, Chief Financial Officer of America’s Car-Mart. “Our credit results have been strong and have been very consistent over the past several years. Should our collection results for the fourth quarter come in within a range of where currently anticipated; we could be in the position of needing to reduce our allowance for credit losses based on our anticipated future losses within the portfolio in light of our consistent credit performance over an extended period of time.”
“The Company repurchased 98,201 shares of its common stock during the third quarter. Since February 1, 2010 we have repurchased 2,283,109 shares, or 19.4% of our Company. The Company has 908,695 shares available under its existing repurchase plan and intends to repurchase shares in the future when conditions are favorable, subject to restrictions under its senior credit facility,” added Mr. Williams. “We have opened six new dealerships so far this fiscal year and we plan to open three more between now and the end of the fiscal year, April 30, 2012. Our plans continue to be to open new dealerships at an approximate 10% annual rate into the future.”
Conference Call
Management will be holding a conference call on Thursday, February 16, 2012 at 11:00 a.m. Eastern time to discuss third quarter results. A live audio of the conference call will be accessible to the public by calling (877) 776-4031. International callers dial (631) 291-4132. Callers should dial in approximately 10 minutes before the call begins. A conference call replay will be available one hour following the call for thirty days and can be accessed by calling (855) 859-2056 (domestic) or (404) 537-3406 (international), conference call ID # 48136523.
About America’s Car-Mart
America’s Car-Mart, Inc. (the “Company”) operates 112 automotive dealerships in nine states and is the largest publicly held automotive retailer in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in small cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information, including investor presentations, on America’s Car-Mart, please visit our website at
www.car-mart.com .
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company’s future objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations regarding future operating performance, and can generally be identified by words such as “may,” “will,” “should,” “could, “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and other similar words or phrases. Specific events addressed by these forward-looking statements include, but are not limited to:
— new dealership openings;
— performance of new dealerships;
— same store revenue growth;
— future overall revenue growth;
— the Company’s collection results, including but not limited to
collections during income tax refund periods;
— repurchases of the Company’s common stock;
— the Company’s business and growth strategies.
These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:
— the availability of credit facilities to support the Company’s business;
— the Company’s ability to underwrite and collect its accounts
effectively, including but not limited to collections during income tax
refund periods;
— competition;
— dependence on existing management;
— availability of quality vehicles at prices that will be affordable to
customers;
— changes in financing laws or regulations; and
— general economic conditions in the markets in which the Company
operates, including but not limited to fluctuations in gas prices,
grocery prices and employment levels.
Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
America’s Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
%
Change As a % of Sales
—— —————-
Three Months
Three Months Ended 2012 Ended
January 31, vs. January 31,
2012 2011 2011 2012 2011
———- ———– —— ——- ——-
Operating Data:
Retail units sold 8,965 8,266 8.5%
Average number of stores in
operation 111 102 8.8
Average retail units sold
per store per month 26.9 27.0 (0.4)
Average retail sales price $ 9,922 $ 9,463 4.9
Same store revenue growth 7.9% 5.3%
Net charge-offs as a percent
of average Finance
Receivables 5.7% 6.1%
Collections as a percent of
average Finance Receivables 14.8% 16.4%
Average percentage of
Finance Receivables-Current
(excl. 1-2 day) 80.0% 81.1%
Average down-payment
percentage 4.3% 4.8%
Period End Data:
Stores open 111 103 7.8%
Accounts over 30 days past
due 4.7% 4.6%
Finance Receivables, gross $ 322,353 $ 281,852 14.4%
Operating Statement:
Revenues:
Sales $ 93,957 $ 82,775 13.5% 100.0% 100.0%
Interest income 11,408 9,794 12.1 11.8
———- ———– 16.5 ——- ——-
Total 105,365 92,569 112.1 111.8
———- ———– 13.8 ——- ——-
Costs and expenses:
Cost of sales 54,298 48,154 12.8 57.8 58.2
Selling, general and
administrative 17,175 15,863 8.3 18.3 19.2
Provision for credit losses 20,899 18,089 15.5 22.2 21.9
Interest expense 659 699 (5.7) 0.7 0.8
Interest expense- early
pay-off of term loan — 507 — — 0.6
Interest expense- change in
fair value of Interest Rate
Swap — (250) — — (0.3)
Depreciation and
amortization 594 485 0.6 0.6
———- ———– 22.5 ——- ——-
Total 93,625 83,547 99.6 100.9
———- ———– 12.1 ——- ——-
Income before taxes 11,740 9,022 12.5 10.9
Provision for income taxes 4,436 3,334 4.7 4.0
———- ———– ——- ——-
Net income $ 7,304 $ 5,688 7.8 6.9
========== =========== ======= =======
Dividends on subsidiary
preferred stock $ (10) $ (10)
———- ———–
Net income attributable to
common shareholders $ 7,294 $ 5,678
========== ===========
Earnings per share:
Basic $ 0.76 $ 0.53
Diluted $ 0.73 $ 0.52
Weighted average number of
shares outstanding:
Basic 9,610,125 10,758,269
Diluted 9,998,290 10,999,375
America’s Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
%
Change As a % of Sales
——- —————-
Nine Months
Nine Months Ended 2012 Ended
—————-
January 31, vs. January 31,
2012 2011 2011 2012 2011
———– ———– ——- ——- ——-
Operating Data:
Retail units sold 27,933 25,178 10.9%
Average number of stores in
operation 109 100 9.0
Average retail units sold
per store per month 28.5 28.0 1.8
Average retail sales price $ 9,636 $ 9,303 3.6
Same store revenue growth 8.3% 6.5%
Net charge-offs as a percent
of average Finance
Receivables 17.7% 17.7%
Collections as a percent of
average Finance Receivables 46.3% 48.8%
Average percentage of
Finance Receivables-Current
(excl. 1-2 day) 81.1% 81.7%
Average down-payment
percentage 6.2% 6.3%
Period End Data:
Stores open 111 103 7.8%
Accounts over 30 days past
due 4.7% 4.6%
Finance Receivables, gross $ 322,353 $ 281,852 14.4%
Operating Statement:
Revenues:
Sales $ 284,409 $ 247,988 14.7% 100.0% 100.0%
Interest income 32,287 27,875 11.4 11.2
———– ———– 15.8 ——- ——-
Total 316,696 275,863 111.4 111.2
———– ———– 14.8 ——- ——-
Costs and expenses:
Cost of sales 163,667 141,856 15.4 57.5 57.2
Selling, general and
administrative 50,094 45,337 10.5 17.6 18.3
Provision for credit losses 62,056 52,994 17.1 21.8 21.4
Interest expense 1,676 2,186 (23.3) 0.6 0.9
Interest expense- early
pay-off of term loan — 507 — — 0.2
Interest expense- change in
fair value of Interest Rate
Swap — 33 — — 0.0
Depreciation and
amortization 1,697 1,405 0.6 0.6
———– ———– 20.8 ——- ——-
Total 279,190 244,318 98.2 98.5
———– ———– 14.3 ——- ——-
Income before taxes 37,506 31,545 13.2 12.7
Provision for income taxes 14,160 11,703 5.0 4.7
———– ———– ——- ——-
Net income $ 23,346 $ 19,842 8.2 8.0
=========== =========== ======= =======
Dividends on subsidiary
preferred stock $ (30) $ (30)
———– ———–
Net income attributable to
common shareholders $ 23,316 $ 19,812
=========== ===========
Earnings per share:
Basic $ 2.36 $ 1.81
Diluted $ 2.28 $ 1.77
Weighted average number of
shares outstanding:
Basic 9,886,100 10,958,074
Diluted 10,219,796 11,184,359
America’s Car-Mart, Inc.
Consolidated Balance Sheet and Other Data
(Dollars in Thousands)
January 31, April 30,
2012 2011
———– ———–
Cash and cash equivalents $ 409 $ 223
Finance receivables, net $ 253,645 $ 222,305
Total assets $ 314,513 $ 276,409
Total debt $ 83,873 $ 47,539
Treasury stock $ 67,825 $ 37,875
Stockholders’ equity $ 183,728 $ 187,011
Shares outstanding 9,585,024 10,496,628
Finance receivables:
Principal balance $ 322,353 $ 282,478
Deferred Revenue – payment
protection plan $ (10,132) $ (8,963)
Allowance for credit losses (68,708) (60,173)
———– ———–
Finance receivables, net of
allowance & deferred
revenue $ 243,513 $ 213,342
=========== ===========
Allowance as % of net
principal balance 22.0% 22.0%
=========== ===========
Changes in allowance for
credit losses:
Nine Months Ended
January 31,
2012 2011
———– ———–
Balance at beginning of year $ 60,173 $ 55,628
Provision for credit losses 62,056 52,994
Net charge-offs (53,521) (48,539)
———– ———–
Balance at end of period $ 68,708 $ 60,083
=========== ===========
This news release was distributed by GlobeNewswire,
www.globenewswire.com
SOURCE: America’s Car-Mart Inc.
CONTACT: William H. (“Hank”) Henderson, CEO
(479) 464-9944
Jeffrey A. Williams, CFO
(479) 418-8021
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
/quotes/zigman/87468/quotes/nls/crmt
Add to portfolio
CRMT
America's Car-Mart Inc.
$
45.42
-0.85
-1.84%
Volume: 53,113
March 16, 2012 4:00p
Look for bad credit auto by using zero deposit or even a poor credit report extremely fast.
Automotive Dealerships | admin | 
March 29, 2012 10:57 pm | 
Comments (0) 
Subscribe