America's Car-Mart Reports 6.4% Increase in Fully Diluted Earnings Per Share on Revenue Increase of 9.4 % to $110 Million, 2.3%
August 16 2012 - 6:04PM
America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its
operating results for its first fiscal quarter ended July 31, 2012.
On August 16, 2012, 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 November 17, 2011. Since February 1,
2010, the Company has invested approximately $80 million to
repurchase 23.2% of its outstanding shares under its stock
repurchase program.
Highlights of first quarter operating
results:
- Net income of $8.1 million - $.83 per diluted share vs. $.78
per diluted share for prior year quarter (6.4% increase in fully
diluted earnings per share)
- Revenue increase of 9.4% to $110 million from $101 million for
the prior year quarter with same store revenue growth of 5.5%
- Retail unit sales increase of 7.8% to 9,753 from 9,049 for the
prior year quarter
- Average retail sales price decreased $200, or 2%,
sequentially
- Opened the Company's 116th dealership in St. Joseph,
Missouri
- Repurchased 215,846 shares of common stock during the quarter
(2.3% of the Company) for $9.4 million
- Active customer base now over 54,800
- Debt to equity of 46.3% and debt to finance receivables of
25.8%
- Allowance for credit losses at 21.5% of finance receivables at
July 31, 2012 and at April 30, 2012
"We are pleased with our first quarter results, specifically as
related to the significant sequential decrease in our average
retail sales price. The market for good used vehicles remains tight
and day in and day out our 45 purchasing agents are in the local
markets out-working the competition to find the very best vehicles
for our customers. Our customers need good, basic transportation
and all of our associates are focused on ensuring that our quality
vehicles remain affordable. Our average retail sales price
decreased by $200, or 2%, from the 4th quarter of fiscal 2012 and
only increased by 1.5% from the first quarter of fiscal 2012 which
is remarkable in light of the overall shortage of used vehicles in
the market. We believe that we can push even harder to keep
affordability levels high by looking at more cars and only
selecting the very best at the appropriate prices," said William H.
("Hank") Henderson, President and Chief Executive Officer of
America's Car-Mart. "Our ability to maintain affordability is even
more impressive when considering that we have not extended the
relative term of our average contract over the last several years.
By keeping our terms short, our customers are able to pay off their
contracts quicker and have more equity in their vehicles leading to
their ultimate success. Quality and affordability together with
Car-Mart's excellent service are the cornerstones of our success
and we will continue to push for improvements in all areas of the
business as we move forward."
"Our financial performance for the quarter was solid. We
continue to see healthy growth at the top line as we add new
locations and increase volumes at existing dealerships. The best
thing we can do for our customers' success is to continue to push
affordability. We obviously think long term and by keeping our
sales prices low and our payment terms affordable, our customers
and the Company will benefit allowing us to continue to expand and
improve our business," said Jeff Williams, Chief Financial Officer
of America's Car-Mart. "The fact that we saw a significant
sequential decrease in our average retail sales price did have
somewhat of a negative short term effect on gross margin dollars,
selling, general and administrative expense leveraging and the
overall credit loss percentage, but once again, when we look to the
long term we are convinced that we are moving in the right
direction to maximize customer success and as a result shareholder
value. It is a great time for Car-Mart to be adding new locations
and increasing our customer count at existing dealerships."
"The Company repurchased 215,846 shares of its common stock
during the first quarter (2.3%). Since February 1, 2010 we have
repurchased 2,709,383 shares, or 23.2% of our Company. 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.
Our Board of Directors has approved another increase in our share
repurchase program, once again allowing for up to 1 million shares
to be repurchased. Our debt to equity ratio of 46.3% and our debt
to finance receivables ratio of 25.8% continue to be very strong
and what we consider to be the best in the industry," added Mr.
Williams. "Our balance sheet is very healthy and by staying focused
on cash returns our future is bright."
Conference Call
Management will be holding a conference call on Friday, August
17, 2012 at 11:00 a.m. Eastern time to discuss fourth 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 #18202224.
About America's Car-Mart
America's Car-Mart, Inc. (the "Company") operates 116 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, including but not limited to
collections during income tax refund periods;
- 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, including but not limited to collections during income
tax refund periods;
- 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.
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America's Car-Mart,
Inc. |
Consolidated Results of
Operations |
(Operating Statement Dollars in
Thousands) |
(unaudited) |
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% Change |
As a % of Sales |
|
Three Months Ended |
2012 |
Three Months
Ended |
|
July 31, |
vs. |
July 31, |
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2012 |
2011 |
2011 |
2012 |
2011 |
Operating Data: |
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Retail units sold |
9,753 |
9,049 |
7.8% |
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Average number of stores in
operation |
115 |
107 |
7.5 |
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Average retail units sold per store per
month |
28.3 |
28.2 |
0.4 |
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Average retail sales price |
$ 9,584 |
$ 9,441 |
1.5 |
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Same store revenue growth |
5.5% |
3.6% |
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Net charge-offs as a percent of average
Finance Receivables |
5.9% |
5.6% |
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Collections as a percent of average
Finance Receivables |
14.9% |
15.9% |
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Average percentage of Finance
Receivables-Current (excl. 1-2 day) |
81.5% |
80.9% |
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Average down-payment percentage |
7.2% |
7.3% |
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Period End Data: |
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Stores open |
116 |
107 |
8.4% |
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Accounts over 30 days past due |
4.0% |
4.0% |
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Finance Receivables, gross |
$ 329,935 |
$ 294,375 |
12.1% |
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Operating Statement: |
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Revenues: |
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Sales |
$ 98,297 |
$ 90,324 |
8.8% |
100.0% |
100.0% |
Interest income |
11,703 |
10,200 |
14.7% |
11.9 |
11.3 |
Total |
110,000 |
100,524 |
9.4% |
111.9 |
111.3 |
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Costs and expenses: |
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Cost of sales |
56,185 |
51,562 |
9.0% |
57.2 |
57.1 |
Selling, general and administrative |
17,856 |
16,198 |
10.2% |
18.2 |
17.9 |
Provision for credit losses |
21,663 |
18,534 |
16.9% |
22.0 |
20.5 |
Interest expense |
653 |
442 |
47.7% |
0.7 |
0.5 |
Depreciation and amortization |
662 |
538 |
23.0% |
0.7 |
0.6 |
Total |
97,019 |
87,274 |
11.2% |
98.7 |
96.6 |
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Income before taxes |
12,981 |
13,250 |
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13.2 |
14.7 |
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Provision for income taxes |
4,863 |
4,968 |
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4.9 |
5.5 |
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Net income |
$ 8,118 |
$ 8,282 |
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8.3 |
9.2 |
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Dividends on subsidiary preferred
stock |
$ (10) |
$ (10) |
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Net income attributable to
common shareholders |
$ 8,108 |
$ 8,272 |
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Earnings per share: |
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Basic |
$ 0.87 |
$ 0.81 |
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Diluted |
$ 0.83 |
$ 0.78 |
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Weighted average number of shares
outstanding: |
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Basic |
9,304,743 |
10,271,359 |
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Diluted |
9,752,069 |
10,579,824 |
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America's Car-Mart,
Inc. |
Consolidated Balance
Sheets and Other Data |
(unaudited) |
(Dollars in Thousands) |
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July 31, |
April 30, |
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2012 |
2012 |
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Cash and cash equivalents |
$ 199 |
$ 276 |
Finance receivables, net |
$ 261,430 |
$ 251,103 |
Total assets |
$ 320,604 |
$ 310,940 |
Total debt |
$ 85,208 |
$ 77,900 |
Treasury stock |
$ 86,659 |
$ 77,242 |
Stockholders' equity |
$ 184,040 |
$ 184,473 |
Shares outstanding |
9,164,597 |
9,378,346 |
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Finance receivables: |
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Principal balance |
$ 329,935 |
$ 316,934 |
Deferred revenue - payment protection
plan |
(11,302) |
(10,745) |
Allowance for credit losses |
(68,505) |
(65,831) |
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Finance receivables, net of allowance and
deferred revenue |
$ 250,128 |
$ 240,358 |
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Allowance as % of principal balance |
21.50% |
21.50% |
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Changes in allowance for credit losses: |
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Three Months |
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Ended July 31, |
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2012 |
2011 |
Balance at beginning of period |
$ 65,831 |
$ 60,173 |
Provision for credit losses |
21,663 |
18,534 |
Charge-offs, net of collateral
recovered |
(18,989) |
(15,983) |
Balance at end of period |
$ 68,505 |
$ 62,724 |
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CONTACT: William H. ("Hank") Henderson, CEO
(479) 464-9944
Jeffrey A. Williams, CFO
(479) 418-8021
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