BENTONVILLE, Ark., June 28 /PRNewswire-FirstCall/ -- America's
Car-Mart, Inc. (NASDAQ:CRMT) today announced its operating results
for the fourth fiscal quarter and year ended April 30, 2007.
Highlights of fourth quarter operating results: -- Revenue decline
of 5.1% -- Interest income growth of 8.1% -- Net income of $2.1
million ($.17 per diluted share). Net income for the quarter was
aided by an effective income tax rate of 8.3%. -- Retail unit sales
decrease of 16.6% -- Accounts over 30 days past due down to 3.4% at
April 30, 2007 compared to 3.7% at April 30, 2006 (down from 5.6%,
5.4% and 3.8% at the end of the three prior fiscal 2007 quarter
ends) -- Finance receivables, net, of $139 million as of April 30,
2007, as compared to $149 million as of April 30, 2006.Total
provision for loan losses of $14.2 million or 26.6% of sales, for
the three months ended April 30, 2007, as compared to total
provision for loan losses of $11.2 million, or 19.6% of sales, for
the three months ended April 30, 2006 For the three months ended
April 30, 2007, revenues decreased 5.1% to $59.3 million compared
with $62.5 million in the same period of the prior year. The $2.1
million net income for the current quarter compares to $4.6 million
net income ($.38 per diluted share) for the same period in the
prior year. Retail unit sales decreased 16.6% to 5,917 vehicles in
the current quarter, compared to 7,096 in the same period last
year. Accounts over 30 days past due decreased to 3.4% compared to
3.7% at April 30, 2006 and compared to 3.8% at January 31, 2007
(the end of the Company's third fiscal quarter). On May 8, 2007,
the Company received notification from the Internal Revenue Service
that the Company would not be assessed any additional taxes,
penalties or interest related to the on-going audits of the
Company's two primary operating subsidiaries. Based upon the
favorable notification, the Company recognized $500,000 of net
income in the fourth quarter for the elimination of associated tax
reserves ($.04 per share). Additionally, a favorable state tax law
change had the effect of decreasing the Company's effective income
taxes by approximately $150,000 in the fourth quarter ($.01 per
share). Highlights of twelve month operating results: -- Revenue
growth of 2.6% -- Interest income growth of 18.8% -- Earnings of
$.35 per diluted share including a $.28 per diluted share charge to
increase the allowance for loan losses at October 31, 2006 and
including a $.05 per diluted share benefit related to an overall
26% effective income tax rate for the year -- Retail unit sales
decrease of 8.1% -- Same store revenue decrease of 3.2% -- Total
provision for loan losses of $63.1 million, or 29.1%, for the
twelve months ended April 30, 2007, as compared to total provision
for loan losses of $45.8 million, or 21.4%, for the twelvemonths
ended April 30, 2006 For the twelve months ended April 30, 2007,
revenues increased 2.6% to $240 million, compared with $234 million
for fiscal 2006. Income for fiscal 2007 was $4.2 million ($.35 per
diluted share) compared to $16.7 million ($1.39 per diluted share)
for fiscal 2006. Excluding the effects of the non- cash increase in
the allowance for loan losses in the second quarter and excluding
the effects of the favorable income tax results recognized during
the fourth quarter, the Company earned profits of $6.96 million
($.58 per diluted share) for fiscal 2007. The Company's Allowance
for Loan Losses is 22% of Finance Receivables at April 30, 2007,
compared to 19.2% at April 30, 2006. The increased percentage
equates to approximately $5.0 million in net non-cash additions to
the allowance to cover future credit losses (with $10 million less
in finance receivables, net compared to the prior year-end). Retail
unit sales decreased 8.1% to 25,199 vehicles for fiscal 2007,
compared to 27,415 vehicles for fiscal 2006. "As we discussed in
our second and third quarter comments, we have put in place
numerous initiatives to enhance the quality of our accounts
receivable portfolio," said T. J. ("Skip") Falgout, III, Chairman
and Chief Executive Officer of America's Car Mart. "We have been
focused on improving credit quality and, by slowing our new store
growth, we can all allocate more resources to improving all aspects
of credit quality and collections, with the result being increased
profitability of our existing store base prior to accelerating new
store growth. Also, our balance sheet remains strong with debt to
equity of 33% and debt to finance receivables of 23% at April 30,
2007. Cash flows from operations in the fourth quarter were very
strong allowing us to pay down an additional $2.5 million in debt."
"The decrease in retail unit sales is largely the result of our
efforts to improve the quality of our sales. In addition, the
operational initiatives which we have instituted over the recent
quarters are beginning to show some initial positive results," said
Hank Henderson, President of America's Car Mart. "For example, we
have continued to see significantly higher down payments than a
year ago, and our over-30-day delinquency numbers have remained
steady in an acceptable range. We know we have more work to do, and
more time needs to elapse to fully evaluate our initiatives, but we
remain encouraged by the results so far." As previously announced,
the Company will not provide earnings guidance as our primary goal
is to maximize long-term per share results, and management has
determined that issuing guidance is inconsistent with this goal.
Conference Call Management will be holding a conference call on
Thursday June 28, 2007 at 11:00 a.m. Eastern time to discuss fourth
quarter results. To participate, please dial (800) 309-9490.
International callers dial (706) 634-0104. Callers should dial in
approximately 10 minutes before the call begins. A conference call
replay will be available one hour following the call for seven days
and can be accessed by calling: (800) 642-1687 (U.S. Callers) or
(706) 645-9291 (International Callers), conference ID 9927407.
About America's Car-Mart America's Car-Mart operates 92 automotive
dealerships in nine states and is the largest publicly held
automotive retailer in the United States focused exclusively on the
"Buy Here/Pay Here" segment of the used car market. 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 on America's Car-Mart, please visit our website at
http://www.car-mart.com/ . Included herein are forward-looking
statements, including statements with respect to projected revenues
and earnings per share amounts. Such forward- looking statements
are based upon management's current knowledge and assumptions.
There are many factors that affect management's view about future
revenues and earnings. These factors involve risks and
uncertainties that could cause actual results to differ materially
from management's present view. These factors include, without
limitation, assumptions relating to unit sales, average selling
prices, credit losses, gross margins, operating expenses,
collection results, operational initiatives underway and economic
conditions, and other risk factors described under "Forward-Looking
Statements" of Item 1A of Part I of the Company's Annual Report on
Form 10-K for the fiscal year ended April 30, 2006 and its current
and quarterly reports filed with or furnished to the Securities and
Exchange Commission. All forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The Company does not undertake any
obligation to update forward-looking statements. America's
Car-Mart, Inc. Consolidated Balance Sheet and Other Data (Dollars
in Thousands) April 30, April 30, 2007 2006 Cash and cash
equivalents $257 $255 Finance receivables, net $139,194 $149,379
Total assets $173,598 $177,613 Total debt $40,829 $43,588
Stockholders' equity $123,728 $119,251 Shares outstanding
11,874,708 11,848,024 Finance receivables: Principal balance
$178,519 $185,243 Allowance for credit losses (39,325)(a)
(35,864)(a) Finance receivables, net $139,194 $149,379 Allowance as
% of principal balance 22.03% 19.36% (a) Represents the weighted
average for Finance Receivables generated by the Company (at 22.0%
and 19.2%) and purchased Finance Receivables. Changes in allowance
for credit losses: Twelve Months Ended April 30, 2007 2006 Balance
at beginning of year $35,864 $29,251 Provision for credit losses
63,077 45,810 Net charge-offs (59,250) (39,724) Change in allowance
related to purchased accounts (366) 527 Balance at end of period
$39,325 $35,864 America's Car-Mart, Inc. Consolidated Results of
Operations (Operating Statement Dollars in Thousands) % Change As a
% of Sales Three Months Ended 2007 Three Months Ended April 30, vs.
April 30, 2007 2006 2006 2007 2006 Operating Data: Retail units
sold 5,917 7,096 (16.6)% Average number of stores in operation 91.7
84.7 8.3 Average retail units sold per store per month 21.5 27.9
(23.0) Average retail sales price $8,384 $7,701 8.9 Same store
revenue growth -9.5% 8.3% Period End Data: Stores open 92 85 8.2%
Accounts over 30 days past due 3.4% 3.7% Finance Receivables, gross
$178,519 $185,243 (3.6)% Operating Statement: Revenues: Sales
$53,515 $57,105 (6.3)% 100.0% 100.0% Interest income 5,781 5,346
8.1 10.8 9.4 Total 59,296 62,451 (5.1) 110.8 109.4 Costs and
expenses: Cost of sales 31,308 32,422 (3.4) 58.5 56.8 Selling,
general and administrative 10,373 10,567 (1.8) 19.4 18.5 Provision
for credit losses 14,231 11,214 26.9 26.6 19.6 Interest expense 873
723 20.7 1.6 1.3 Depreciation and amortization 269 279 (3.6) 0.5
0.5 Total 57,054 55,205 3.3 106.6 96.7 Income before taxes 2,242
7,246 4.2 12.7 Provision for income taxes 187 2,693 0.3 4.7 Net
income $2,055 $4,553 3.8 8.0 Earnings per share: Basic $0.17 $0.38
Diluted $0.17 $0.38 Weighted average number of shares outstanding:
Basic 11,853,317 11,846,063 Diluted 11,940,202 11,991,375 America's
Car-Mart, Inc. Consolidated Results of Operations (Operating
Statement Dollars in Thousands) % Change As a % of Sales Twelve
Months Ended 2007 Twelve Months Ended April 30, vs. April 30, 2007
2006 2006 2007 2006 Operating Data: Retail units sold 25,199 27,415
(8.1)% Average number of stores in operation 89.7 81.5 10.1 Average
retail units sold per store per month 23.4 28.0 (16.5) Average
retail sales price $8,125 $7,494 8.4 Same store revenue growth
-3.2% 9.8% Period End Data: Stores open 92 85 8.2% Accounts over 30
days past due 3.4% 3.7% Finance Receivables, gross $178,519
$185,243 (3.6)% Operating Statement: Revenues: Sales $216,898
$214,482 1.1% 100.0% 100.0% Interest income 23,436 19,725 18.8 10.8
9.2 Total 240,334 234,207 2.6 110.8 109.2 Costs and expenses: Cost
of sales 125,073 119,433 4.7 57.7 55.7 Selling, general and
administrative 41,778 39,261 6.4 19.3 18.3 Provision for credit
losses 63,077 45,810 37.7 29.1 21.4 Interest expense 3,728 2,458
51.7 1.7 1.1 Depreciation and amortization 994 724 37.3 0.5 0.3
Total 234,650 207,686 13.0 108.2 96.8 Income before taxes 5,684
26,521 2.6 12.4 Provision for income taxes 1,452 9,816 0.7 4.6 Net
income $4,232 $16,705 2.0 7.8 Earnings per share: Basic $0.36 $1.41
Diluted $0.35 $1.39 Weighted average number of shares outstanding:
Basic 11,850,247 11,852,804 Diluted 11,953,987 12,018,541
DATASOURCE: America's Car-Mart, Inc. CONTACT: T.J. ("Skip")
Falgout, III, CEO, +1-972-717-3423, or Jeffrey A. Williams, CFO,
+1-479-418-8021, both of America's Car-Mart Web site:
http://www.car-mart.com/
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