America's Car-Mart's Growth Continues With 11% Increase in Diluted Earnings Per Share of $.78, Now Operating 108 Dealerships;...
August 18 2011 - 6:12PM
America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its
operating results for its first fiscal quarter ended July 31, 2011.
The Company repurchased 388,520 shares of its common stock during
the quarter representing 3.7% of the outstanding shares.
The Company also today announced that our Chairman, Tilman J.
(Skip) Falgout, III, will retire from our Board of Directors upon
completion of his current term in October 2011. We are deeply
grateful for his years of valued leadership within the Company and
on our Board of Directors and wish him well upon his
retirement.
Highlights of first quarter operating
results:
- Net income of $8.3 million ($.78 per diluted share) vs. $8.0
million ($.70 per diluted share) for prior year quarter (11%
increase in diluted earnings per share)
- Revenue increase of 9.9% to $100.5 million from $91.5 million
for the prior year quarter with same store revenue growth of
3.6%
- Retail unit sales increase of 6.7% to 9,049 from 8,481 for the
prior year quarter
- Strong cash flows supporting the significant increase in
revenues and the $11.9 million increase in Finance Receivables,
$700,000 in net capital expenditures, and $11.1 million in common
stock re-purchases with only a $9.9 million increase in debt
- Active customer base now over 51,000
- Debt to equity of 31.1% and debt to finance receivables of
19.5%
- Allowance for credit losses remains unchanged at 22% of Finance
Receivables
- Provision for credit losses of 20.5% of sales
- Down payments increased to 7.3% from 7.2% for the prior year
quarter
"We continue to execute our game-plan very effectively as we
grow the business in a controlled manner. We are excited about our
future prospects and the opportunities that will develop for our
Associates as well as for our new customers as we open new
dealerships and continue to grow our customer base at existing
locations," said William H. ("Hank") Henderson, President and Chief
Executive Officer of America's Car-Mart. "Our business model is
stronger than ever and we are focused on continuing to push for
further improvements so that we can expand our offering to more
hard-working folks in need of good, basic affordable
transportation. Our Associates continue to do a super job of
working with our customers to help them succeed which is certainly
showing up in our solid credit loss numbers."
"Our Chairman, Skip Falgout has decided to retire from our Board
of Directors. He will continue to serve until our annual
shareholders' meeting in October. As our Chairman since May 2004
and our Chief Executive Officer from May 2002 to October 2007, Skip
participated in a period of tremendous growth for the Company,"
said Mr. Henderson. "On behalf of our associates and shareholders,
I'd like to express my appreciation to Skip for all of his
contributions to the Company and wish him all the greatest success
with his future endeavors."
"Our financial performance was solid for the quarter. Our strong
cash flows allowed us to fund our 9.9% increase in revenues and the
resulting $11.9 million increase in Finance Receivables together
with $11.1 million in share re-purchases and $.7 million in capital
expenditures, all with only a $9.9 million increase in total debt,"
said Jeff Williams, Chief Financial Officer of America's Car-Mart.
"We continue to focus on solid deal-structuring to ensure that our
customers have good equity in their vehicles throughout the term of
their contracts. Also, we have done an outstanding job of
minimizing purchase price increases in a difficult environment. As
we have repeatedly said, we are only successful if our customers
are successful and we are dedicated to earning their repeat
business one customer at a time."
"The company repurchased 388,520 shares, or 3.7%, of its common
stock during the first quarter. Since February 1, 2010 we have
repurchased 1,669,266 shares, or 14.2% of our Company," added Mr.
Williams. "Obviously, we believe in the long-term value of our
company and we will invest in the repurchase program when favorable
conditions are presented to us. We've opened two dealerships during
this fiscal year and have several in the pipeline and currently
anticipate that we will open 8 additional new dealerships between
now and April 30, 2012. Our focus on cash flows is allowing us to
re-purchase shares and, at the same time, add customers at new and
existing dealerships at a solid, controlled pace."
Conference Call
Management will be holding a conference call on Friday, August
19, 2011 at 11:00 a.m. Eastern time to discuss first quarter
results. A live audio of the conference call will be
accessible to the public by calling (877)
776-4031. International callers dial (631)
291-4132. Callers should dial in approximately 10 minutes
before the call begins. A conference call replay will be
available one hour following the call for thirty days and can be
accessed by calling (855) 859-2056 (domestic) or (404) 537-3406
(international), conference call ID #89774551.
About America's Car-Mart
America's Car-Mart, Inc. (the "Company") operates 108 automotive
dealerships in eight states and is the largest publicly held
automotive retailer in the United States focused exclusively on the
"Integrated Auto Sales and Finance" segment of the used car
market. The Company emphasizes superior customer service and
the building of strong personal relationships with its customers.
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, including investor
presentations, on America's Car-Mart, please visit our website at
www.car-mart.com.
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements address the Company's
future objectives, plans and goals, as well as the Company's
intent, beliefs and current expectations regarding future operating
performance, and can generally be identified by words such as
"may," "will," "should," "could," "believe," "expect,"
"anticipate," "intend," "plan," "foresee," and other similar words
or phrases. Specific events addressed by these forward-looking
statements include, but are not limited to:
- new dealership openings;
- performance of new dealerships;
- same store revenue growth;
- future overall revenue growth;
- the Company's collection results;
- repurchases of the Company's common stock;
- the Company's business and growth strategies.
These forward-looking statements are based on the Company's
current estimates and assumptions and involve various risks and
uncertainties. As a result, you are cautioned that these
forward-looking statements are not guarantees of future
performance, and that actual results could differ materially from
those projected in these forward-looking statements. Factors
that may cause actual results to differ materially from the
Company's projections include, but are not limited to:
- the availability of credit facilities to support the Company's
business;
- the Company's ability to underwrite and collect its loans
effectively;
- competition;
- dependence on existing management;
- availability of quality vehicles at prices that will be
affordable to customers;
- changes in lending laws or regulations; and
- general economic conditions in the markets in which the Company
operates, including but not limited to fluctuations in gas prices,
grocery prices and employment levels.
Additionally, risks and uncertainties that may affect future
results include those described from time to time in the company's
SEC filings. The Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. You are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the dates on which they are made.
America's Car-Mart,
Inc. |
Consolidated Results of
Operations |
(Operating Statement Dollars in
Thousands) |
(unaudited) |
|
|
|
|
% Change |
As a % of Sales |
|
Three Months Ended |
2011 |
Three Months
Ended |
|
July 31, |
vs. |
July 31, |
|
2011 |
2010 |
2010 |
2011 |
2010 |
Operating Data: |
|
|
|
|
|
Retail units sold |
9,049 |
8,481 |
6.7% |
|
|
Average number of stores in
operation |
107 |
98 |
9.2 |
|
|
Average retail units sold per
store per month |
28.2 |
28.8 |
(2.1) |
|
|
Average retail sales price |
$ 9,441 |
$ 9,242 |
2.2 |
|
|
Same store revenue growth |
3.6% |
6.4% |
|
|
|
Net charge-offs as a percent of
average Finance Receivables |
5.6% |
5.1% |
|
|
|
Collections as a percent of
average Finance Receivables |
15.9% |
16.3% |
|
|
|
Average percentage of Finance
Receivables-Current (excl. 1-2 day) |
80.9% |
82.6% |
|
|
|
Average down-payment
percentage |
7.3% |
7.2% |
|
|
|
|
|
|
|
|
|
Period End Data: |
|
|
|
|
|
Stores open |
107 |
98 |
9.2% |
|
|
Accounts over 30 days past
due |
4.0% |
3.6% |
|
|
|
Finance Receivables, gross |
$ 294,375 |
$ 272,555 |
8.0% |
|
|
|
|
|
|
|
|
Operating Statement: |
|
|
|
|
|
Revenues: |
|
|
|
|
|
Sales |
$ 90,324 |
$ 82,602 |
9.3% |
100.0% |
100.0% |
Interest income |
10,200 |
8,858 |
15.2% |
11.3 |
10.7 |
Total |
100,524 |
91,460 |
9.9% |
111.3 |
110.7 |
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of sales |
51,562 |
46,433 |
11.0% |
57.1 |
56.2 |
Selling, general and
administrative |
16,198 |
14,790 |
9.5% |
17.9 |
17.9 |
Provision for credit
losses |
18,534 |
16,138 |
14.8% |
20.5 |
19.5 |
Interest expense |
442 |
734 |
(39.8)% |
0.5 |
0.9 |
Interest expense - change in
fair value of Interest Rate Swap |
-- |
233 |
-- % |
-- |
0.3 |
Depreciation and
amortization |
538 |
456 |
18.0% |
0.6 |
0.6 |
Total |
87,274 |
78,784 |
10.8% |
96.6 |
95.4 |
|
|
|
|
|
|
Income before taxes |
13,250 |
12,676 |
|
14.7 |
15.3 |
|
|
|
|
|
|
Provision for income taxes |
4,968 |
4,711 |
|
5.5 |
5.7 |
|
|
|
|
|
|
Net income |
$ 8,282 |
$ 7,965 |
|
9.2 |
9.6 |
|
|
|
|
|
|
Dividends on subsidiary
preferred stock |
$ (10) |
$ (10) |
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
$ 8,272 |
$ 7,955 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
Basic |
$ 0.81 |
$ 0.71 |
|
|
|
Diluted |
$ 0.78 |
$ 0.70 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
Basic |
10,271,359 |
11,223,777 |
|
|
|
Diluted |
10,579,824 |
11,436,613 |
|
|
|
|
|
America's Car-Mart,
Inc. |
Consolidated Balance
Sheets and Other Data |
(unaudited) |
(Dollars in Thousands) |
|
|
July 31, 2011 |
April 30, 2011 |
|
|
|
Cash and cash equivalents |
$ 219 |
$ 223 |
Finance receivables, net |
$ 231,651 |
$ 222,305 |
Total assets |
$ 288,030 |
$ 276,409 |
Total debt |
$ 57,477 |
$ 47,539 |
Treasury stock |
$ 48,971 |
$ 37,875 |
Stockholders' equity |
$ 184,972 |
$ 187,011 |
Shares outstanding |
10,110,166 |
10,496,628 |
|
|
|
|
|
|
|
|
|
Finance receivables: |
|
|
Principal balance |
$ 294,375 |
$ 282,478 |
Deferred revenue - payment
protection plan |
$ (9,264) |
$ (8,963) |
Allowance for credit
losses |
(62,724) |
(60,173) |
|
|
|
Finance receivables, net of
allowance and deferred revenue |
$ 222,387 |
$ 213,342 |
|
|
|
|
|
|
Allowance as % of principal
balance |
22.00% |
22.00% |
|
|
|
|
|
|
|
|
|
Changes in allowance for credit losses: |
|
|
|
Three Months Ended July
31, |
|
2011 |
2010 |
Balance at beginning of
period |
$ 60,173 |
$ 55,628 |
Provision for credit
losses |
18,534 |
16,138 |
Charge-offs, net of collateral
recovered |
(15,983) |
(13,703) |
Balance at end of period |
$ 62,724 |
$ 58,063 |
CONTACT: William H. ("Hank") Henderson, CEO
(479) 464-9944
Jeffrey A. Williams, CFO
(479) 418-8021
T. J. ("Skip") Falgout, III, Chairman
(972) 717-3423
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