America’s Car-Mart Reports Improved Results Featured

By Staff Writer August 23, 2018

America’s Car-Mart Inc. reported higher net earnings on higher revenues in the quarter ended July 31.

Net earnings for the buy-her, pay-here chain was $10.9 million, up from $7 million in the same period a year ago.

Revenues were $164 million compared to $146 million for the prior year quarter.

Car-Mart saw increased sales volume productivity with 29.8 retail units sold per store per month, up from 28.2 for the prior year quarter.

“Our efficiencies are showing up in our sales volume productivity, which was up 5.7 percent for the quarter, and we were especially pleased with the same store revenue growth of 12.1 percent,” said Vickie Judy, the company’s chief financial officer. 

Average retail sales price increased $629 to $11,015 or 6.1 percent from the prior year quarter.

Gross profit margin percentage increased to 41.6 percent from 41.4 percent for the prior year quarter

Collections as a percentage of average finance receivables increased to 13.1 percent from 12.4 percent for the prior year quarter.  The weighted average contract term decreased to 32.4 months from 32.6 from the prior year quarter and remained essentially flat from the fourth quarter of fiscal 2018

Net charge-offs as a percent of average finance receivables remained consistent at 6.4 percent compared to the prior year quarter.

Accounts over 30 days past due decreased to 3.5 percent from 4.6 percent at July 31, 2017.

Average percentage of finance receivables current increased to 81.9 percent from 80.9 percent at July 31, 2017.

Provision for credit losses of 26.1 percent of sales vs. 26.6 percent for prior year quarter .

Selling, general and administrative expenses at 18.3 percent of sales vs. 18.6 percent for prior year quarter. Judy said Car-Mart is refocusing some of its marketing spend to increase its digital presence and advertising.

Active accounts base approximately 72,800.

Debt to equity of 65.2 percent and debt to finance receivables of 29.8 percent.

Strong cash flows supporting the increase in revenues, the $19.4 million increase in finance receivables, $3.9 million increase in inventory, $685,000 in net capital expenditures and $7.4 million in common stock repurchases (115,999 shares) with a $2.8 million increase in total debt.

 

Last modified on Thursday, 23 August 2018 20:08