America's Car-Mart Reports Diluted Earnings Per Share Of $.62 On Revenue Increase Of 12.9% To $150 Million

BENTONVILLE, Ark., Nov. 17, 2016 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ:CRMT) today announced its operating results for the second quarter of fiscal 2017.

Highlights of second quarter operating results:
  • Net income of $5.0 million - $.62 per diluted share vs. ($.06) per diluted share ($.29 per diluted share excluding a $3 million non-cash after-tax charge resulting from an increase to the allowance for credit losses) for prior year quarter
  • Revenues of $150 million compared to $133 million for the prior year quarter (a 12.9% increase)
  • Retail unit sales increase of 11.8% to 12,167 from 10,881 for the prior year quarter with increased productivity at 28.4 retail units sold per store per month, up from 25.3 for the prior year quarter  
  • Average retail sales price increased $244 to $10,491 or 2.4% from the prior year quarter (increased $98 or 0.9% sequentially)
  • Gross profit margin percentage increased to 41.4% from 39.2% for the prior year quarter
  • Collections as a percentage of average finance receivables of 12.6% compared to 13.7% for the prior year quarter.  The weighted average contract term increased to 31.7 months from 30.6.
  • Net Charge-offs as a percent of average finance receivables of 7.7%, down slightly from 7.8% for prior year quarter
  • Accounts over 30 days past due increased to 4.8% from 3.5% at October 31, 2015
  • Average percentage of finance receivables current of 80.3% compared to 81.4% at April 30, 2016
  • Provision for credit losses of 29.6% of sales vs. 32.4% (28.3% excluding increase to allowance for credit losses) for prior year quarter  
  • Selling, general and administrative expenses at 17.0% of sales vs. 18.9% for prior year quarter
  • Active accounts base approximately 67,600, an increase of approximately 2,600 from April 30, 2016
  • Debt to equity of 53.1% and debt to finance receivables of 26.3%
  • Allowance for credit losses at 25% of finance receivables, net of deferred revenue at October 31, 2016
  • Strong cash flows supporting the increase in revenues, the $13.7 million increase in finance receivables, $352,000 in net capital expenditures and $894,000 in common stock repurchases (24,601 shares) with a $7.2 million increase in total debt

Highlights of six month operating results:
  • Net income of $12.1 million - $1.48 per diluted share vs. $.46 per diluted share ($.81 per diluted share excluding a $3 million non-cash after-tax charge resulting from an increase to the allowance for credit losses) for prior year period
  • Revenues of $296 million compared to $276 million for the prior year period with same store revenue increase of 5.8%
  • Retail unit sales increase of 4.3% to 24,124 from 23,125 for the prior year period with productivity at 28.1 retail units sold per store per month, up from 27.0 for the prior year period
  • Net Charge-offs as a percent of average finance receivables of 14.0%, down from 15.6% for prior year period
  • Provision for credit losses of 27.7% of sales vs. 29.9% of sales (28% excluding increase to allowance for credit losses) for prior year period 
  • Strong cash flows supporting the increase in revenues, the $37 million increase in finance receivables, $875,000 in net capital expenditures and $8.1 million in common stock repurchases (297,693 shares) with a $16.8 million increase in total debt

"We are pleased with our top line growth and our sales volume productivity improvement. There is significant demand for what we provide our markets and we are excited that we have expanded our customer base by 2,600 since the beginning of our fiscal year. We are now serving almost 67,600 customers looking for good, basic and affordable transportation. Our Mission is 'We strive to earn the repeat business of our customers by providing quality vehicles, affordable payment terms and excellent service.' We work hard every day to live our Mission Statement.  We believe that the communities we serve always deserve our best, and we are prepared to deliver," said William H. ("Hank") Henderson, Chief Executive Office of America's Car-Mart, Inc. (the "Company"). "The competitive environment remains challenging, but we continue to believe that our face-to-face relationships with our customers combined with our efficient operating model will allow us to perform at a very high level as we move forward. We believe that our future is bright, and as always, we will continue to push for excellence in all that we do."

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