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America's Car-Mart Reports Diluted Earnings Per Share Of $.16 (Reflects A $4.9 Million, Or $.52 Per Diluted Share, Non-Cash After-Tax Charge Resulting From An Increase To The Allowance For Credit Losses) On Revenue Increase Of 3.1% To $123 Million

Stocks in this article: CRMT

BENTONVILLE, Ark., Feb. 18, 2014 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its operating results for the third quarter of fiscal 2014.

Highlights of third quarter operating results:

  • Net income of $1.5 million - $.16 per diluted share ($.68 per diluted share excluding a $4.9 million non-cash after-tax charge resulting from an increase to the allowance for credit losses) vs. $.84 per diluted share for prior year quarter
  • Revenues of $123 million compared to $119 million for the prior year quarter with same store revenue decrease of 2.8%
  • Retail unit sales increase of 3.2% to 10,735 from 10,403 for the prior year quarter with 27.7 retail units sold per dealership per month down from 29.4 for prior year quarter
  • Average retail sales price decreased $58 to $9,739 or 0.6% from the prior year quarter and increased $29 or 0.3% sequentially
  • Net charge-offs as a percent of average finance receivables of 6.7%, up from 5.7% for prior year quarter
  • Delinquencies over 30 days at 5.8% of finance receivables vs. 6.0% for the prior year
  • Provision for credit losses of 33.9% of sales (26.8% excluding the effect of the increase in the allowance for credit losses) vs. 23.7% for prior year quarter
  • Selling, General and Administrative Expenses at 18.1% of sales vs. 17.7% for prior year quarter
  • Opened two new dealerships since the end of the 2 nd quarter, our newest dealership opened in Troy, AL this week - dealership count now at 131
  • Active accounts base now over 62,000
  • Repurchased 200,000 shares (2.2%) of common stock during the quarter
  • Debt to equity of 54.3% and debt to finance receivables of 28.5%
  • Allowance for credit losses at 23.5% of finance receivables at January 31, 2014, up from 21.5%

Highlights of nine month operating results:

  • Net income of $14.8 million or $1.56 per diluted share ($2.08 per diluted share excluding a $4.9 million non-cash after-tax charge resulting from an increase to the allowance for credit losses) vs. $2.43 per diluted share for prior year period
  • Revenue increase of 8.1% to $367 million from $339 million for the prior year period with same store revenue growth of 1.8%
  • Retail unit sales increase of 6.7% to 31,986 from 29,970 for the prior year period
  • Net Charge-offs as a percentage of average finance receivables of 19.8% compared to 18.1% for the prior year
  • Provision for credit losses of 28.2% of sales (25.8% excluding the effect of the increase in the allowance for credit losses) vs. 23.3% for prior year period
  • Strong cash flows supporting the significant increase in revenues, the $37.3 million increase in finance receivables, $5.5 million in net capital expenditures and the $8.7 million in common stock repurchases (212,620 shares, or 2.4%) with only a $14.8 million increase in total debt

"Despite the pressure we are feeling in the current competitive environment, we are continuing to see some good growth. We remain committed to growing our business the right way with the realization that so long as the competition does not share our same focus on customer success, our results could continue to be affected somewhat. There are a lot of good people who are currently signing up on financial arrangements with our competitors for what we believe are impractical terms that are not in their long-term best interest. We will continue to do our very best to set our customers up to succeed so that we will be in a position to earn their repeat business in the future. Anything short of our customers successfully completing the terms of their individual contracts is not acceptable to us and not in line with how we believe this business should operate. Unfortunately, the current environment is contributing to higher levels of charge-offs and we will continue to work hard to reverse these trends," said William H. ("Hank") Henderson, President and Chief Executive Officer of America's Car-Mart.

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