America's Car-Mart Reports Diluted Earnings per Share of $.79 on Revenues of $149 Million and Announces Appointment of CFO
November 16 2017 - 5:00PM
America’s Car-Mart, Inc. (NASDAQ:CRMT) today announced its
operating results for the second quarter of fiscal year 2018.
Highlights of second quarter operating
results:
- Net earnings of $6.0 million – $.79 per diluted share vs. net
earnings of $5.0 million – $.62 per diluted share for prior year
quarter
- Revenues of $149 million compared to $150 million for the prior
year quarter, current quarter includes a $1.7 million increase in
interest income and same store revenue increase of 0.6%
- Sales volume productivity was flat with 28.4 retail units sold
per store per month
- Average retail sales price decreased $73 to $10,418 or 0.7%
from the prior year quarter
- Gross profit margin percentage increased to 42.0% from 41.4%
for the prior year quarter
- Collections as a percentage of average finance receivables
decreased to 12.2% from 12.6% for the prior year quarter. The
weighted average contract term increased to 32.5 months from 31.7
from the prior year quarter and decreased from 32.6 for the first
quarter of fiscal 2018
- Net Charge-offs as a percent of average finance receivables of
7.5%, down from 7.7% for prior year quarter
- Accounts over 30 days past due decreased to 4.1% from 4.8% at
October 31, 2016
- Average percentage of finance receivables current was 80%, flat
from October 31, 2016
- Provision for credit losses of 29.7% of sales vs. 29.6% for
prior year quarter
- Selling, general and administrative expenses at 18.2% of sales
vs. 17.0% for prior year quarter
- Income tax benefit of $612,000 ($.08 per diluted share) related
to share based compensation pursuant to accounting standard ASU
2016-09, adopted in May 2017
- Active accounts base approximately 69,900, an increase of
approximately 3,100 from April 30, 2017
- Debt to equity of 60.8% and debt to finance receivables of
28.0% (53.1% and 26.3% at 10/31/16)
- Strong cash flows supporting the $8.8 million increase in
finance receivables, $577,000 increase in inventory, $345,000 in
net capital expenditures and $16.4 million in common stock
repurchases (406,930 shares) with a $20.3 increase in total
debt
Highlights of six-month operating
results:
- Net income of $13.0 million – $1.69 per diluted share vs. net
income of $12.1 million – $1.48 per diluted share for prior year
period
- Revenues of $296 million flat compared to the prior year period
with same store revenue increase of 1.3%
- Retail unit sales decrease of 1.5% to 23,769 from 24,124 for
the prior year period with improved productivity at 28.3 retail
units sold per store per month, up from 28.1 for the prior year
period
- Net Charge-offs as a percent of average finance receivables of
13.8%, down from 14.0% for prior year period
- Provision for credit losses of 28.2% of sales vs. 27.7% of
sales for prior year period
- Income tax benefit of $784,000 ($.10 per diluted share) related
to share based compensation pursuant to accounting standard ASU
2016-09, adopted in May 2017
- Strong cash flows supporting the $25.6 million increase in
finance receivables, $1.2 million increase in inventory, $1.0
million in net capital expenditures and $20.1 million in common
stock repurchases (509,773 shares) with a $20.0 million increase in
total debt
“We are pleased with our results for the quarter
and are very excited about our future. We are proud of our
associates and their dedication to serving our customers at the
highest levels. We will continue to get better as we stay focused
on the success of our customers,” said William H. “Hank” Henderson,
Chief Executive Officer of America’s Car-Mart, Inc. “This is a
face-to-face, high touch business and our customers deserve great
service, always. The investments we have made and continue to make
in the business have been made for one reason only - to improve our
offering to the customers we serve, which in turn will enhance
shareholder value.”
“We will always look for healthy growth
opportunities and believe that our business model will continue to
be scaled by attracting quality people to serve as General
Managers,” said Mr. Henderson. “Recruiting, training and
supporting our General Managers, the face of our Company, will
always be our number one priority since great customer service
starts and ends with our General Managers.”
“It was nice to see the increase in bottom line
profits for the quarter, and we will continue to improve to make
our business stronger as we move forward. Selling, general,
and administrative expenses as a percentage of sales did increase
for the quarter as we have spent several years building an
infrastructure to support a growing business. Most recently, our
investments have been heavily focused on General Manager
Recruitment, Training and Advancement, and Collections Support as
well as improvements with our sales and marketing efforts,” said
Jeff Williams, President. “Our continuing focus on solid inventory
management has resulted in an increase in our gross margin
percentage, and we expect continuing success with these efforts.
Sales volume productivity was flat for the quarter but up
sequentially. We expect productivity will continue to improve as we
move forward, which will allow us to leverage our expenses.
Additionally, we will be opening a new dealership in Centerton,
Arkansas to take advantage of market opportunities in Northwest
Arkansas. Our expectations for this dealership are
high.”
“We repurchased 406,930 shares of common stock
(5.4%) during the quarter at an average price of approximately $40.
Since February 2010 we have repurchased 5.3 million shares (46%) at
an average price of approximately $33. Our balance sheet is very
strong with debt to finance receivables of 28%,” added Mr.
Williams. “Today, our Board of Directors approved up to an
additional one million shares for repurchase. We plan to
continue to repurchase shares opportunistically as we move
forward.”
“Also, today, our Board of Directors appointed
Vickie D. Judy as the Company’s Chief Financial Officer effective
January 1, 2018,” said Mr. Williams. “Vickie has been with the
Company for over seven years, most recently as our Principal
Accounting Officer, and has earned the highest respect and
admiration from her co-workers as well as our business partners. We
are excited for Vickie and for the additional contributions she
will make to the Company in her new role.”
Conference Call
Management will be holding a conference call on
Friday, November 17, 2017 at 11:00 a.m. Eastern Time to discuss
quarterly 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 two hours following the
call for thirty days and can be accessed by calling (855) 859-2056
(domestic) or (404) 537-3406 (international), conference call ID
#9874799.
About America's Car-Mart
America’s Car-Mart, Inc. (the “Company”)
operates 140 automotive dealerships in eleven states and is one of
the largest publicly held automotive retailers 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; and
- the Company’s business and growth strategies and plans.
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.
____________________________Contacts:
William H. (“Hank”) Henderson, CEO or Jeffrey A. Williams,
President at (479) 464-9944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
America's Car-Mart,
Inc.Consolidated Results of
Operations(Operating Statement Dollars in Thousands) |
|
|
|
|
|
|
% Change |
|
As a % of Sales |
|
|
Three Months Ended |
|
2017 |
|
Three Months Ended |
|
|
October 31, |
|
vs. |
|
October 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
2016 |
|
2017 |
|
2016 |
Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail units sold |
|
|
11,932 |
|
|
|
12,167 |
|
|
(1.9 |
)% |
|
|
|
|
|
|
Average number of stores in operation |
|
|
140 |
|
|
|
143 |
|
|
(2.1 |
) |
|
|
|
|
|
|
Average retail units sold per store per month |
|
|
28.4 |
|
|
|
28.4 |
|
|
- |
|
|
|
|
|
|
|
Average retail sales price |
|
$ |
10,418 |
|
|
$ |
10,491 |
|
|
(0.7 |
) |
|
|
|
|
|
|
Same store revenue growth |
|
|
0.6 |
% |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
Net charge-offs as a percent of average finance
receivables |
|
7.5 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
Collections as a percent of average finance receivables |
|
|
12.2 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
Average percentage of finance receivables-current (excl. 1-2
day) |
|
80.1 |
% |
|
|
80.3 |
% |
|
|
|
|
|
|
|
|
Average down-payment percentage |
|
|
5.8 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Stores open |
|
|
140 |
|
|
|
143 |
|
|
(2.1 |
)% |
|
|
|
|
|
|
Accounts over 30 days past due |
|
|
4.1 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
Finance receivables, gross |
|
$ |
492,495 |
|
|
$ |
474,295 |
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Statement: |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
130,427 |
|
|
$ |
133,170 |
|
|
(2.1 |
)% |
|
100.0 |
% |
|
100.0 |
% |
Interest income |
|
|
18,691 |
|
|
|
17,040 |
|
|
9.7 |
|
|
14.3 |
|
|
12.8 |
|
Total |
|
|
149,118 |
|
|
|
150,210 |
|
|
(0.7 |
) |
|
114.3 |
|
|
112.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
75,623 |
|
|
|
77,997 |
|
|
(3.0 |
) |
|
58.0 |
|
|
58.6 |
|
Selling, general and administrative |
|
|
23,727 |
|
|
|
22,654 |
|
|
4.7 |
|
|
18.2 |
|
|
17.0 |
|
Provision for credit losses |
|
|
38,746 |
|
|
|
39,441 |
|
|
(1.8 |
) |
|
29.7 |
|
|
29.6 |
|
Interest expense |
|
|
1,324 |
|
|
|
1,036 |
|
|
27.8 |
|
|
1.0 |
|
|
0.8 |
|
Depreciation and amortization |
|
|
1,108 |
|
|
|
1,080 |
|
|
2.6 |
|
|
0.8 |
|
|
0.8 |
|
(Gain) Loss on disposal of property and equipment |
|
|
57 |
|
|
|
(1 |
) |
|
(5,800.0 |
) |
|
0.0 |
|
|
(0.0 |
) |
Total |
|
|
140,585 |
|
|
|
142,207 |
|
|
(1.1 |
) |
|
107.8 |
|
|
106.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before taxes |
|
|
8,533 |
|
|
|
8,003 |
|
|
|
|
6.5 |
|
|
6.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
|
2,564 |
|
|
|
2,985 |
|
|
|
|
2.0 |
|
|
2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
5,969 |
|
|
$ |
5,018 |
|
|
|
|
4.6 |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
on subsidiary preferred stock |
|
$ |
(10 |
) |
|
$ |
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to common shareholders |
|
$ |
5,959 |
|
|
$ |
5,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.82 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.79 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,354,499 |
|
|
|
7,833,061 |
|
|
|
|
|
|
|
|
|
Diluted |
|
|
7,555,026 |
|
|
|
8,136,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
America's Car-Mart, Inc.Consolidated Results
of Operations(Operating Statement Dollars in
Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
As a % of Sales |
|
|
Six Months Ended |
|
2017 |
|
Six Months Ended |
|
|
October 31, |
|
vs. |
|
October 31, |
|
|
2017 |
|
2016 |
|
2016 |
|
2017 |
|
2016 |
Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail units sold |
|
|
23,769 |
|
|
|
24,124 |
|
|
(1.5 |
)% |
|
|
|
|
|
|
Average number of stores in operation |
|
|
140 |
|
|
|
143 |
|
|
(2.1 |
) |
|
|
|
|
|
|
Average retail units sold per store per month |
|
|
28.3 |
|
|
|
28.1 |
|
|
0.7 |
|
|
|
|
|
|
|
Average retail sales price |
|
$ |
10,402 |
|
|
$ |
10,442 |
|
|
(0.4 |
) |
|
|
|
|
|
|
Same store revenue growth |
|
|
1.3 |
% |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
Net charge-offs as a percent of average finance
receivables |
|
13.8 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
Collections as a percent of average finance receivables |
|
|
24.6 |
% |
|
|
25.6 |
% |
|
|
|
|
|
|
|
|
Average percentage of finance receivables-current (excl. 1-2
day) |
|
80.5 |
% |
|
|
80.2 |
% |
|
|
|
|
|
|
|
|
Average down-payment percentage |
|
|
6.0 |
% |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Stores open |
|
|
140 |
|
|
|
143 |
|
|
(2.1 |
)% |
|
|
|
|
|
|
Accounts over 30 days past due |
|
|
4.1 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
Finance receivables, gross |
|
$ |
492,495 |
|
|
$ |
474,295 |
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Statement: |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
258,701 |
|
|
$ |
262,854 |
|
|
(1.6 |
)% |
|
100.0 |
% |
|
100.0 |
% |
Interest income |
|
|
36,835 |
|
|
|
33,196 |
|
|
11.0 |
|
|
14.2 |
|
|
12.6 |
|
Total |
|
|
295,536 |
|
|
|
296,050 |
|
|
(0.2 |
) |
|
114.2 |
|
|
112.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
150,829 |
|
|
|
153,510 |
|
|
(1.7 |
) |
|
58.3 |
|
|
58.4 |
|
Selling, general and administrative |
|
|
47,592 |
|
|
|
45,822 |
|
|
3.9 |
|
|
18.4 |
|
|
17.4 |
|
Provision for credit losses |
|
|
72,906 |
|
|
|
72,822 |
|
|
0.1 |
|
|
28.2 |
|
|
27.7 |
|
Interest expense |
|
|
2,496 |
|
|
|
1,980 |
|
|
26.1 |
|
|
1.0 |
|
|
0.8 |
|
Depreciation and amortization |
|
|
2,187 |
|
|
|
2,176 |
|
|
0.5 |
|
|
0.8 |
|
|
0.8 |
|
Loss on disposal of property and equipment |
|
|
104 |
|
|
|
399 |
|
|
(73.9 |
) |
|
0.0 |
|
|
0.2 |
|
Total |
|
|
276,114 |
|
|
|
276,709 |
|
|
(0.2 |
) |
|
106.7 |
|
|
105.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before taxes |
|
|
19,422 |
|
|
|
19,341 |
|
|
|
|
7.5 |
|
|
7.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
|
6,461 |
|
|
|
7,214 |
|
|
|
|
2.5 |
|
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
12,961 |
|
|
$ |
12,127 |
|
|
|
|
5.0 |
|
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
on subsidiary preferred stock |
|
$ |
(20 |
) |
|
$ |
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to common shareholders |
|
$ |
12,941 |
|
|
$ |
12,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.74 |
|
|
$ |
1.53 |
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
1.69 |
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,451,673 |
|
|
|
7,890,993 |
|
|
|
|
|
|
|
|
|
Diluted |
|
|
7,661,668 |
|
|
|
8,161,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
America's Car-Mart,
Inc.Consolidated Balance Sheet and Other
Data(Dollars in Thousands) |
|
|
|
|
|
|
|
|
October 31, |
|
April 30, |
|
October 31, |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
358 |
|
|
$ |
434 |
|
|
$ |
170 |
|
|
Finance
receivables, net |
$ |
376,577 |
|
|
$ |
357,161 |
|
|
$ |
362,955 |
|
|
Inventory |
$ |
31,315 |
|
|
$ |
30,129 |
|
|
$ |
32,446 |
|
|
Total
assets |
$ |
444,007 |
|
|
$ |
424,258 |
|
|
$ |
435,239 |
|
|
Total
debt |
$ |
137,950 |
|
|
$ |
117,944 |
|
|
$ |
124,696 |
|
|
Treasury
stock |
$ |
182,112 |
|
|
$ |
162,024 |
|
|
$ |
149,594 |
|
|
Stockholders' equity |
$ |
226,910 |
|
|
$ |
233,008 |
|
|
$ |
234,866 |
|
|
Shares
outstanding |
|
7,177,213 |
|
|
|
7,608,471 |
|
|
|
7,836,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
receivables: |
|
|
|
|
|
|
Principal balance |
$ |
492,495 |
|
|
$ |
466,854 |
|
|
$ |
474,295 |
|
|
Deferred revenue - payment protection plan |
|
(18,956 |
) |
|
|
(18,472 |
) |
|
|
(18,476 |
) |
|
Deferred revenue - service contract |
|
(9,868 |
) |
|
|
(9,611 |
) |
|
|
(10,470 |
) |
|
Allowance for credit losses |
|
(115,918 |
) |
|
|
(109,693 |
) |
|
|
(111,340 |
) |
|
|
|
|
|
|
|
|
Finance receivables, net of allowance and deferred revenue |
$ |
347,753 |
|
|
$ |
329,078 |
|
|
$ |
334,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance as % of principal balance net of deferred
revenue |
|
25.0 |
% |
|
|
25.0 |
% |
|
|
25.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
allowance for credit losses: |
|
|
|
|
|
|
|
Six months |
|
|
|
|
ended October 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
Balance at beginning of period |
$ |
109,693 |
|
|
$ |
102,485 |
|
|
|
|
Provision for credit losses |
|
72,906 |
|
|
|
72,822 |
|
|
|
|
Charge-offs, net of collateral recovered |
|
(66,681 |
) |
|
|
(63,967 |
) |
|
|
|
Balance
at end of period |
$ |
115,918 |
|
|
$ |
111,340 |
|
|
|
|
|
|
|
|
|
|
|
Americas Car Mart (NASDAQ:CRMT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Americas Car Mart (NASDAQ:CRMT)
Historical Stock Chart
From Apr 2023 to Apr 2024