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Car-Mart Reports Lower Revenue, Better Performance

Car-Mart Reports Lower Revenue, Better Performance Featured

America’s Car-Mart, Inc. reported net earnings of $5.2 million for the quarter ended April 30.
Revenues were $153 million compared to $155 million for the prior year quarter including a $1.6 million increase in interest income and same-store revenue increase of 1.3 percent.
Average retail sales price increased $13 to $10,654 from the prior year quarter. The average retail sales price increased $25 from the quarter ended Jan. 31.
Collections as a percentage of average finance receivables decreased to 15.6 percent from 16.8 percent from the prior year quarter.  The weighted average contract term increased to 32.5 months from 31.6.
Net charge-offs as a percent of average finance receivables declined to 8.7 percent from 9 percent for the prior year quarter.
Accounts over 30 days past due increased to 3.6 percent from 3 percent at April 30, 2016.
Average percentage of finance receivables current improved slightly to 81 percent from 80.5 percent at April 30, 2016.
Provision for credit losses was 28.4 percent of sales vs. 27.4 percent for the prior year quarter.
Selling, general and administrative expenses rose to 17.2 percent of sales from 16.7 percent for the prior year quarter.
America’s Car-Mart now has an active accounts base approximately 66,800.

Last modified on Tuesday, 23 May 2017 22:09
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  • Dealer Shares Tale Of Recovery After Disaster

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    “We’re about 60 miles east of Oklahoma City,” he said, “and we went through this back in July of ’07.

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    One big problem for Sisco is he was out of town at the time.

    “We were racing at the track, so I was in Tulsa at the time,” he said. “We were starting to come back home when the rain started. We had a living quarters in the race trailer, so we just pulled over and went to sleep.”

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    Sisco said when he arrived home, he saw flooding “a quarter-mile-wide all the way down” Oklahoma State Highway 99 and U.S. 377 to his dealership.

    “It just looked like a big river,” Sisco said. “It was a kind of a sick feeling. It was a bewildered-type of feeling.

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    The good thing is the in-house finance lots were on higher ground in a different town.

    But at the Ford lot, about 250 to 300 vehicles were damaged.

    Since it was a Ford dealership, the manufacturer stepped up and took care of its damaged inventory, Sisco said.

    “They took every one of their flooded vehicles out of there and crushed them,” he said.

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    “We had been paying for flood insurance and thought we had it,” he said. “I was a country boy and didn’t understand about insurance. But we first got the insurance policy, we had flood insurance, so I thought I was covered.”

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    “About the third day in, my local agent came down and he was just sick. He said, ‘Roy, I hate to tell you. But they will not cover the flood.’”

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    “He pulled my policy book and we looked at it,” Sisco said. “That was about an inch thick. Right toward the end, about three pages from the back, there it was (buried at the end of the paperwork).”

    Sisco said he protested the issue all the way up to the state insurance commissioner, but in the end, he was not covered for the used vehicles.

    “It was about $750,000,” he said.

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    “If you really want to know the truth of it,” he said. “I sat down out there and just thought, ‘Now Lord, you gave me this dealership, so how am I going to get through this? How are you going to work this out so I can survive?’”

    The dealership re-opened right away, but it took a while for Sisco and his business partner to get all the way back.

    They sat down and made out a plan and just went to work.

    On the vehicles they couldn’t collect insurance on or repair, they sold for scrap.

    “On the ones that only had a little bit of water damage but didn’t get into the motor, we pulled the carpet and cleaned them,” he said.  “I borrowed a lot of money and started working and it took me a long time.

    “I think we finally paid it off about two years ago. We finally worked our way out of the hole.”

    He understands the struggle that dealers in Houston and Florida will have to go through.

    “Ain’t no doubt, they are going to be hurting,” he said. “They’re going to be doing just like we were – trying to work their way out of this.”

    They face a worse challenge, Sisco said, because they will be dealing with saltwater from the ocean, as opposed to fresh water.

    However, he said even these dealers have the ability to come back from this.

    “What I’m saying is, son, don’t give up,” he said.

    Today, Sisco still has Seminole Ford, his franchise, and has one Town and Country Auto Inc., a buy-here, pay-here store. He even has a new facility to go with his old building.

    Just a month before his 71st birthday, Sisco is still working hard, but he keeps an eye on the creek, too.

    “We’re doing pretty good now,” he said. “We still don’t have flood insurance, but when that creek starts rising, we start moving vehicles.”