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Globe Newswire 19-Feb-2019 5:03 PM
BENTONVILLE, Ark., Feb. 19, 2019 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ:CRMT) today announced its operating results for the third quarter of fiscal year 2019.
Highlights of third quarter operating results:
Highlights of nine-month operating results:
"We had a good quarter as we continue to see across the board improvements resulting from our focus on the Company's Non-Negotiables related to inventory, facilities and associates, collections practices and expense management. There is real purpose in our work as we move forward with our efforts to be a great company in the eyes of our associates, customers and shareholders while improving lives in communities we serve. We believe that communities are better when served by America's Car-Mart. We have an obligation to grow our customer count at a rate that is in line with our ability to support associates and customers at the very highest levels. There is tremendous demand for our service, and we will continue to make significant investments in our people especially in our General Manager Recruitment, Training and Advancement Program," said Jeff Williams, President and Chief Executive Officer. "Our productivity improvements have been made possible because of the investments we've made and it's nice to see us leverage those investments so quickly. We are very excited about our future, and we will continue to invest in the key areas of the business. Our most important Non-Negotiable is related to how our blocking and tackling efforts are impacting customer relations and customer experience. Improving the customer experience at various touch points, without sacrificing basic daily discipline, is emerging as our top opportunity, and we are in a unique position to really move the needle in this important area."
"We currently have four new dealership openings in process. These dealerships will be in Conway, Arkansas, Bryant, Arkansas, Chattanooga, Tennessee and Tyler, Texas," said Mr. Williams. "Three of these dealerships will be managed by top-performing General Managers as we expand the number of locations and customers served to leverage their talents. Tyler, Texas is a re-opening and will be managed individually by an experienced General Manager. We are optimistic about these locations and excited to get started in these communities."
"It is nice to see all of our key financial metrics continue to improve. Sales volume productivity is up 2.6% with same store revenues up over 8%, net charge-offs are down 120 basis points, collections are up 70 basis points, and the quarter-end delinquency percentage is down significantly. The financial results follow the operational improvements that Jeff mentioned. The fact that we were able to continue to invest in the key areas of the business and at the same time see some leveraging with our expenses is indicative of our commitment to grow in a healthy manner," said Vickie Judy, Chief Financial Officer. "We are all working very hard to make this company great and to take advantage of the opportunities that are in front of us as we help associates and customers succeed."
"We repurchased 141,500 shares of our common stock during the quarter at an average price of $72.20 for a total of $10.2 million. Since February 2010 we have repurchased 6.1 million shares at an average price of approximately $36. We plan to continue to repurchase shares opportunistically as we move forward. During the first nine months of the fiscal year, we have added over $41.5 million in receivables, repurchased $24.1 million of our common stock, funded $3.0 million in net capital expenditures, and increased inventory by $5.2 million to support higher sales levels with only a $18.4 million increase in debt. Our balance sheet is very strong with a debt to finance receivables ratio of 31.4%," added Ms. Judy. "We will continue to focus on strong cash-on-cash returns while being mindful of the continuing infrastructure investment needs in the key areas of the business."
Conference Call
Management will be holding a conference call on Wednesday, February 20, 2019 at 11:00 a.m. Eastern Time to discuss third 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 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 #4196898.
About America's Car-Mart
America's Car-Mart, Inc. (the "Company") operates 143 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:
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:
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: Jeffrey A. Williams, President and CEO (479) 418-8021 or Vickie D. Judy, CFO (479) 418-8081
% Change | As a % of Sales | ||||||||||||||||||
Three Months Ended | 2019 | Three Months Ended | |||||||||||||||||
January 31, | vs. | January 31, | |||||||||||||||||
2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||
Operating Data: | |||||||||||||||||||
Retail units sold | 11,963 | 11,420 | 4.8 | % | |||||||||||||||
Average number of stores in operation | 143 | 140 | 2.1 | ||||||||||||||||
Average retail units sold per store per month | 27.9 | 27.2 | 2.6 | ||||||||||||||||
Average retail sales price | $ | 11,146 | $ | 10,662 | 4.5 | ||||||||||||||
Same store revenue growth | 8.5% | 7.1% | |||||||||||||||||
Net charge-offs as a percent of average finance receivables | 6.2% | 7.4% | |||||||||||||||||
Collections as a percent of average finance receivables | 13.2% | 12.5% | |||||||||||||||||
Average percentage of finance receivables-current (excl. 1-2 day) | 83.0% | 80.4% | |||||||||||||||||
Average down-payment percentage | 5.5% | 5.5% | |||||||||||||||||
Period End Data: | |||||||||||||||||||
Stores open | 143 | 140 | 2.1 | % | |||||||||||||||
Accounts over 30 days past due | 3.2% | 4.1% | |||||||||||||||||
Finance receivables, gross | $ | 542,893 | $ | 497,652 | 9.1 | % | |||||||||||||
Operating Statement: | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Sales | $ | 139,803 | $ | 128,166 | 9.1 | % | 100.0 | % | 100.0 | % | |||||||||
Interest income | 21,251 | 19,048 | 11.6 | 15.2 | 14.9 | ||||||||||||||
Total | 161,054 | 147,214 | 9.4 | 115.2 | 114.9 | ||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of sales | 81,740 | 74,951 | 9.1 | 58.5 | 58.5 | ||||||||||||||
Selling, general and administrative | 26,488 | 25,945 | 2.1 | 18.9 | 20.2 | ||||||||||||||
Provision for credit losses | 35,555 | 37,872 | (6.1) | 25.4 | 29.5 | ||||||||||||||
Interest expense | 2,110 | 1,482 | 42.4 | 1.5 | 1.2 | ||||||||||||||
Depreciation and amortization | 985 | 1,057 | (6.8) | 0.7 | 0.8 | ||||||||||||||
(Gain) loss on disposal of property and equipment | (100) | 84 | (219.0) | (0.1) | 0.1 | ||||||||||||||
Total | 146,778 | 141,391 | 3.8 | 105.0 | 110.3 | ||||||||||||||
Income before taxes | 14,276 | 5,823 | 10.2 | 4.5 | |||||||||||||||
(Benefit) provision for income taxes | 3,381 | (7,556) | 2.4 | (5.9) | |||||||||||||||
Net income | $ | 10,895 | $ | 13,379 | 7.8 | 10.4 | |||||||||||||
Dividends on subsidiary preferred stock | $ | (10) | $ | (10) | |||||||||||||||
Net income attributable to common shareholders | $ | 10,885 | $ | 13,369 | |||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 1.61 | $ | 1.88 | |||||||||||||||
Diluted | $ | 1.55 | $ | 1.82 | |||||||||||||||
Weighted average number of shares used in calculation: | |||||||||||||||||||
Basic | 6,751,026 | 7,106,715 | |||||||||||||||||
Diluted | 7,003,389 | 7,345,428 | |||||||||||||||||
% Change | As a % of Sales | ||||||||||||||||||
Nine Months Ended | 2019 | Nine Months Ended | |||||||||||||||||
January 31, | vs. | January 31, | |||||||||||||||||
2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||
Operating Data: | |||||||||||||||||||
Retail units sold | 37,163 | 35,189 | 5.6 | % | |||||||||||||||
Average number of stores in operation | 141 | 140 | 0.7 | ||||||||||||||||
Average retail units sold per store per month | 29.3 | 27.9 | 5.0 | ||||||||||||||||
Average retail sales price | $ | 11,062 | $ | 10,487 | 5.5 | ||||||||||||||
Same store revenue growth | 10.5% | 3.3% | |||||||||||||||||
Net charge-offs as a percent of average finance receivables | 19.2% | 21.2% | |||||||||||||||||
Collections as a percent of average finance receivables | 39.2% | 37.2% | |||||||||||||||||
Average percentage of finance receivables-current (excl. 1-2 day) | 82.0% | 80.5% | |||||||||||||||||
Average down-payment percentage | 5.8% | 5.8% | |||||||||||||||||
Period End Data: | |||||||||||||||||||
Stores open | 143 | 140 | 2.1 | % | |||||||||||||||
Accounts over 30 days past due | 3.2% | 4.1% | |||||||||||||||||
Finance receivables, gross | $ | 542,893 | $ | 497,652 | 9.1 | % | |||||||||||||
Operating Statement: | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Sales | $ | 430,315 | $ | 386,867 | 11.2 | % | 100.0 | % | 100.0 | % | |||||||||
Interest income | 61,925 | 55,883 | 10.8 | 14.4 | 14.4 | ||||||||||||||
Total | 492,240 | 442,750 | 11.2 | 114.4 | 114.4 | ||||||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of sales | 251,274 | 225,780 | 11.3 | 58.4 | 58.4 | ||||||||||||||
Selling, general and administrative | 79,068 | 73,537 | 7.5 | 18.4 | 19.0 | ||||||||||||||
Provision for credit losses | 111,619 | 110,778 | 0.8 | 25.9 | 28.6 | ||||||||||||||
Interest expense | 5,895 | 3,978 | 48.2 | 1.4 | 1.0 | ||||||||||||||
Depreciation and amortization | 2,949 | 3,244 | (9.1) | 0.7 | 0.8 | ||||||||||||||
(Gain) loss on disposal of property and equipment | (88) | 188 | (146.8) | - | - | ||||||||||||||
Total | 450,717 | 417,505 | 8.0 | 104.7 | 107.9 | ||||||||||||||
Income before taxes | 41,523 | 25,245 | 9.6 | 6.5 | |||||||||||||||
(Benefit) provision for income taxes | 8,464 | (1,095) | 2.0 | (0.3) | |||||||||||||||
Net income | $ | 33,059 | $ | 26,340 | 7.7 | 6.8 | |||||||||||||
Dividends on subsidiary preferred stock | $ | (30) | $ | (30) | |||||||||||||||
Net income attributable to common shareholders | $ | 33,029 | $ | 26,310 | |||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 4.82 | $ | 3.59 | |||||||||||||||
Diluted | $ | 4.66 | $ | 3.48 | |||||||||||||||
Weighted average number of shares used in calculation: | |||||||||||||||||||
Basic | 6,846,707 | 7,336,687 | |||||||||||||||||
Diluted | 7,087,430 | 7,556,255 | |||||||||||||||||
January 31, | April 30, | January 31, | ||||||||
2019 | 2018 | 2018 | ||||||||
Cash and cash equivalents | $ | 1,624 | $ | 1,022 | $ | 534 | ||||
Finance receivables, net | $ | 414,913 | $ | 383,617 | $ | 380,384 | ||||
Inventory | $ | 38,822 | $ | 33,610 | $ | 38,094 | ||||
Total assets | $ | 493,555 | $ | 455,584 | $ | 455,848 | ||||
Total debt | $ | 170,737 | $ | 152,367 | $ | 148,172 | ||||
Treasury stock | $ | 228,412 | $ | 204,325 | $ | 188,319 | ||||
Total equity | $ | 245,677 | $ | 230,535 | $ | 234,856 | ||||
Shares outstanding | 6,685,013 | 6,849,161 | 7,056,179 | |||||||
Finance receivables: | ||||||||||
Principal balance | $ | 542,893 | $ | 501,438 | $ | 497,652 | ||||
Deferred revenue - payment protection plan | (20,748) | (19,823) | (18,908) | |||||||
Deferred revenue - service contract | (10,224) | (10,332) | (9,672) | |||||||
Allowance for credit losses | (127,980) | (117,821) | (117,268) | |||||||
Finance receivables, net of allowance and deferred revenue | $ | 383,941 | $ | 353,462 | $ | 351,804 | ||||
Allowance as % of principal balance net of deferred revenue | 25.0% | 25.0% | 25.0% | |||||||
Changes in allowance for credit losses: | ||||||||||
Nine Months Ended | ||||||||||
January 31, | ||||||||||
2019 | 2018 | |||||||||
Balance at beginning of period | $ | 117,821 | $ | 109,693 | ||||||
Provision for credit losses | 111,619 | 110,778 | ||||||||
Charge-offs, net of collateral recovered | (101,460) | (103,203) | ||||||||
Balance at end of period | $ | 127,980 | $ | 117,268 | ||||||