America's Car-Mart Reports 37.5% Increase in Diluted Earnings Per Share on Revenue Increase of 20.7%, Now Operating 111 Deale...
November 17 2011 - 5:42PM
America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its
operating results for its second fiscal quarter ended October 31,
2011. The Company repurchased 515,642 shares of its common stock
during the quarter representing 5.1% of the outstanding shares. On
November 17, 2011, the Company's Board of Directors once again
re-authorized the repurchase of up to 1 million shares of its
common stock under the common stock repurchase program which was
last amended and approved on May 26, 2011. Since February 1, 2010,
the Company has repurchased 2,184,908 shares (18.6%) of its common
stock under this program.
Highlights of second quarter operating
results:
- Net income of $7.8 million ($.77 per diluted share) vs. $6.2
million ($.56 per diluted share) for prior year quarter (37.5%
increase in diluted earnings per share)
- Revenue increase of 20.7% to $110.8 million from $91.8 million
for the prior year quarter with same store revenue growth of
13.7%
- Retail unit sales increase of 17.6% to 9,919 from 8,431 for the
prior year quarter. Average retail units sold per store per month
increased to 30.3 from 28.4
- Strong cash flows supporting the significant increase in
revenues and the $15.1 million increase in Finance Receivables,
$1.3 million in net capital expenditures, and $15.3 million in
common stock re-purchases with only a $19.0 million increase in
total debt
- Active customer base now over 52,000
- Debt to equity of 42.8% and debt to finance receivables of
24.7%
- Allowance for credit losses remains unchanged at 22.0% of
Finance Receivables
- Provision for credit losses of 22.6% of sales vs. 22.7% for
prior year quarter
Highlights of six month operating results:
- Net income of $16.0 million ($1.55 per diluted share) vs. $14.2
million ($1.25 per diluted share) for prior year period (24.0%
increase in diluted earnings per share)
- Revenue increase of 15.3% to $211.3 million from $183.3 million
for the prior year period with same store revenue growth of
8.5%
- Retail unit sales increase of 12.2% to 18,968 from 16,912 for
the prior year period. Average retail units sold per store per
month increased to 29.3 from 28.5
- Strong cash flows supporting the significant increase in
revenues and the $27.0 million increase in Finance Receivables,
$2.0 million in net capital expenditures, and $26.4 million in
common stock re-purchases with only a $28.9 million increase in
total debt
- Provision for credit losses of 21.6% of sales
- Down payments increased to 7.1% from 7.0% for the prior year
period
"We are very proud of our results for the quarter and the hard
work and dedication of our associates," said William H. ("Hank")
Henderson, President and Chief Executive Officer of America's
Car-Mart. "We continue to focus all of our efforts on increasing
customer success by providing quality vehicles, affordable payment
terms and excellent service. Our strength is our ability to
individually work with our customers to help them succeed and our
lot managers continue to raise the bar in this critical area of the
business. Needless to say, we are excited about our future and
the opportunities to expand our great products and services to new
communities."
"Once again, our financial performance was solid for the
quarter. We saw an improvement in credit losses and impressive
leveraging at the Selling, General and Administrative line as lot
level productivity improved resulting from our 20.7% increase in
revenues. The 13.7% increase in same store revenues was outstanding
and reflects our commitment to providing customers a superior
experience that sets us apart from the competition in the areas we
serve," said Jeff Williams, Chief Financial Officer of America's
Car-Mart. "It is an exciting time to be part of a company that is
performing so well and has so much more room for growth. Our
success results from our dedication to earning repeat business one
customer at a time."
"The company repurchased 515,642 shares, or 5.1%, of its common
stock during the second quarter. Since February 1, 2010 we have
repurchased 2,184,908 shares, or 18.6% of our Company," added Mr.
Williams. "We have opened five new dealerships so far this fiscal
year and we plan to open five more between now and the end of the
fiscal year, April 30, 2012. Additionally, beyond fiscal 2012, our
plans continue to be to open new dealerships at an approximate 10%
annual rate into the future. Our focus on cash flows and customer
equity 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, November
18, 2011 at 11:00 a.m. Eastern time to discuss second 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 #25454562.
About America's Car-Mart
America's Car-Mart, Inc. (the "Company") operates 111 automotive
dealerships in nine 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 accounts
effectively;
- competition;
- dependence on existing management;
- availability of quality vehicles at prices that will be
affordable to customers;
- changes in financing 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) |
|
|
|
|
|
|
|
|
|
% Change |
As a % of Sales |
|
Three Months Ended |
2011 |
Three Months Ended |
|
October 31, |
vs. |
October 31, |
|
|
2011 |
2010 |
2010 |
2011 |
2010 |
Operating Data: |
|
|
|
|
|
Retail units sold |
9,919 |
8,431 |
17.6% |
|
|
Average number of stores in
operation |
109 |
99 |
10.1 |
|
|
Average retail units sold per
store per month |
30.3 |
28.4 |
6.7 |
|
|
Average retail sales price |
$ 9,557 |
$ 9,209 |
3.8 |
|
|
Same store revenue growth |
13.7% |
8.1% |
|
|
|
Net charge-offs as a percent
of average Finance Receivables |
6.5% |
6.5% |
|
|
|
Collections as a percent of
average Finance Receivables |
15.7% |
16.2% |
|
|
|
Average percentage of Finance
Receivables-Current (excl. 1-2 day) |
82.4% |
81.3% |
|
|
|
Average down-payment
percentage |
6.8% |
6.8% |
|
|
|
|
|
|
|
|
|
Period End Data: |
|
|
|
|
|
Stores open |
111 |
101 |
9.9% |
|
|
Accounts over 30 days past
due |
3.9% |
3.9% |
-- |
|
|
Finance Receivables, gross |
$ 309,453 |
$ 277,022 |
11.7% |
|
|
|
|
|
|
|
|
Operating Statement: |
|
|
|
|
|
Revenues: |
|
|
|
|
|
Sales |
$ 100,128 |
$ 82,611 |
21.2% |
100.0% |
100.0% |
Interest income |
10,679 |
9,224 |
15.8 |
10.7 |
11.2 |
Total |
110,807 |
91,835 |
20.7 |
110.7 |
111.2 |
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
Cost of sales |
57,807 |
47,269 |
22.3 |
57.7 |
57.2 |
Selling, general and
administrative |
16,721 |
14,684 |
13.9 |
16.7 |
17.8 |
Provision for credit
losses |
22,623 |
18,767 |
20.5 |
22.6 |
22.7 |
Interest expense |
575 |
753 |
(23.6) |
0.6 |
0.9 |
Interest expense- change in
fair value of Interest Rate Swap |
-- |
50 |
-- |
-- |
0.1 |
Depreciation and
amortization |
565 |
465 |
21.5 |
0.6 |
0.6 |
Total |
98,291 |
81,988 |
19.9 |
98.2 |
99.2 |
|
|
|
|
|
|
Income before taxes |
12,516 |
9,847 |
|
12.5 |
11.9 |
|
|
|
|
|
|
Provision for income taxes |
4,756 |
3,658 |
|
4.7 |
4.4 |
|
|
|
|
|
|
Net income |
$ 7,760 |
$ 6,189 |
|
7.8 |
7.5 |
|
|
|
|
|
|
Dividends on subsidiary preferred
stock |
$ (10) |
$ (10) |
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
$ 7,750 |
$ 6,179 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
Basic |
$ 0.79 |
$ 0.57 |
|
|
|
Diluted |
$ 0.77 |
$ 0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
Basic |
9,776,817 |
10,892,177 |
|
|
|
Diluted |
10,081,274 |
11,117,087 |
|
|
|
America's Car-Mart,
Inc. |
Consolidated Results of
Operations |
(Operating Statement Dollars in
Thousands) |
|
|
|
|
|
|
|
|
|
% Change |
As a % of Sales |
|
|
Six Months Ended |
2011 |
Six Months Ended |
|
|
October 31, |
vs. |
October 31, |
|
|
2011 |
2010 |
2010 |
2011 |
2010 |
Operating Data: |
|
|
|
|
Retail units sold |
18,968 |
16,912 |
12.2% |
|
|
Average number of stores
in operation |
108 |
99 |
9.1 |
|
|
Average retail units sold
per store per month |
29.3 |
28.5 |
2.8 |
|
|
Average retail sales
price |
$ 9,502 |
$ 9,225 |
3.0 |
|
|
Same store revenue
growth |
8.5% |
7.2% |
|
|
|
Net charge-offs as a
percent of average Finance Receivables |
12.0% |
11.6% |
|
|
|
Collections as a percent
of average Finance Receivables |
31.6% |
32.5% |
|
|
|
Average percentage of Finance
Receivables-Current (excl. 1-2 day) |
81.6% |
82.0% |
|
|
|
Average down-payment
percentage |
7.1% |
7.0% |
|
|
|
|
|
|
|
|
|
Period End Data: |
|
|
|
|
Stores open |
111 |
101 |
9.9% |
|
|
Accounts over 30 days past
due |
3.9% |
3.9% |
-- |
|
|
Finance Receivables, gross |
$ 309,453 |
$ 277,022 |
11.7% |
|
|
|
|
|
|
|
|
Operating Statement: |
|
|
|
Revenues: |
|
|
|
|
Sales |
$ 190,452 |
$ 165,213 |
15.3% |
100.0% |
100.0% |
Interest income |
20,879 |
18,082 |
15.5 |
11.0 |
10.9 |
Total |
211,331 |
183,295 |
15.3 |
111.0 |
110.9 |
|
|
|
|
|
|
Costs and expenses: |
|
|
|
Cost of sales |
109,369 |
93,702 |
16.7 |
57.4 |
56.7 |
Selling, general and
administrative |
32,918 |
29,475 |
11.7 |
17.3 |
17.8 |
Provision for credit
losses |
41,157 |
34,905 |
17.9 |
21.6 |
21.1 |
Interest expense |
1,018 |
1,487 |
(31.5) |
0.5 |
0.9 |
Interest expense- change in
fair value of Interest Rate Swap |
-- |
283 |
-- |
-- |
0.2 |
Depreciation and
amortization |
1,103 |
920 |
19.9 |
0.6 |
0.6 |
Total |
185,565 |
160,772 |
15.4 |
97.4 |
97.3 |
|
|
|
|
|
|
Income before taxes |
25,766 |
22,523 |
|
13.5 |
13.6 |
|
|
|
|
|
|
Provision for income taxes |
9,725 |
8,369 |
|
5.1 |
5.1 |
|
|
|
|
|
|
Net income |
$ 16,041 |
$ 14,154 |
|
8.4 |
8.6 |
|
|
|
|
|
|
Dividends on subsidiary preferred
stock |
$ (20) |
$ (20) |
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
$ 16,021 |
$ 14,134 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
Basic |
$ 1.60 |
$ 1.28 |
|
|
|
Diluted |
$ 1.55 |
$ 1.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
Basic |
10,024,088 |
11,057,977 |
|
|
|
Diluted |
10,330,549 |
11,276,850 |
|
|
|
America's Car-Mart,
Inc. |
Consolidated Balance
Sheets and Other Data |
(Dollars in Thousands) |
|
|
|
|
October 31, |
April 30, |
|
2011 |
2011 |
|
|
|
Cash and cash equivalents |
$ 330 |
$ 223 |
Finance receivables, net |
$ 243,522 |
$ 222,305 |
Total assets |
$ 301,023 |
$ 276,409 |
Total debt |
$ 76,437 |
$ 47,539 |
Treasury stock |
$ 64,301 |
$ 37,875 |
Stockholders' equity |
$ 178,441 |
$ 187,011 |
Shares outstanding |
9,642,717 |
10,496,628 |
|
|
|
|
|
|
|
|
|
Finance receivables: |
|
|
Principal balance |
$ 309,453 |
$ 282,478 |
Deferred Revenue - payment
protection plan |
$ (9,767) |
$ (8,963) |
Allowance for credit
losses |
(65,931) |
(60,173) |
|
|
|
Finance receivables, net of
allowance & deferred revenue |
$ 233,755 |
$ 213,342 |
|
|
|
|
|
|
Allowance as % of net principal
balance |
22.0% |
22.00% |
|
|
|
|
|
|
|
|
|
Changes in allowance for credit losses: |
|
|
|
Six Months Ended |
|
October 31, |
|
2011 |
2010 |
Balance at beginning of
year |
$ 60,173 |
$ 55,628 |
Provision for credit
losses |
41,157 |
34,905 |
Net charge-offs |
(35,399) |
(31,499) |
|
|
|
Balance at end of period |
$ 65,931 |
$ 59,034 |
CONTACT: William H. ("Hank") Henderson, CEO
(479) 464-9944
or
Jeffrey A. Williams, CFO
(479) 418-8021
Americas Car Mart (NASDAQ:CRMT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Americas Car Mart (NASDAQ:CRMT)
Historical Stock Chart
From Jul 2023 to Jul 2024