Crown Group, Inc. Issues Earnings Guidance

    IRVING, Texas--Jan. 15, 2002--Crown Group, Inc. today announced that it expects to report diluted earnings per share from continuing operations of $.27 for the third quarter ending Jan. 31, 2002 and $.31 for the fourth quarter ending April 30, 2002. Based upon these estimates and excluding one-time charges incurred in the first and second fiscal quarters, the Company expects to report diluted earnings per share from continuing operations of $1.18 for the fiscal year ending April 30, 2002. Including one-time charges incurred in the first and second fiscal quarters consisting of (i) a $2.6 million after-tax charge related to the write-down of certain investments and equipment, and (ii) a $1.8 million after-tax charge related to the relocation of the Company's corporate offices and severance pay, the Company expects to report diluted earnings per share from continuing operations of $.57 for the fiscal year ending April 30, 2002.
    For the fiscal year ending April 30, 2003 ("fiscal 2003"), the Company is targeting revenue growth of approximately 14% to 15% and growth in diluted earnings per share from continuing operations of 17% to 19%. Accordingly, the Company is targeting diluted earnings per share from continuing operations of $1.38 to $1.41 for fiscal 2003.
    Commenting on the earnings guidance, Edward R. McMurphy, the Company's Chairman and Chief Executive Officer, stated, "The earnings guidance assumes our provision for credit losses continues at approximately 20% of sales during the projected periods, which is consistent with actual results for the first six months of fiscal 2002 and about 1.3% higher than our historical average of 18.7% over the last six fiscal years." Mr. McMurphy also reported, "Our Car-Mart subsidiary continues to perform well in spite of a slow economy. Car sales have remained strong, and gross margins and operating expenses are in line with historical results. In addition, operating results from Concorde and Precision, which are included in discontinued operations as these businesses are being held for sale, continue to be at or near record levels."

    About Crown Group

    Crown Group, Inc., through its America's Car-Mart, Inc. subsidiary, operates 52 automotive dealerships in seven states and is one of the largest automotive retailers in the United States focused exclusively on the "Buy Here/Pay Here" segment of the used car market. Based in Rogers, Arkansas, Car-Mart operates its dealerships primarily in small cities and rural locations throughout the South-Central United States, providing financing for substantially all of its customers, many of whom are unable to obtain financing from conventional financial institutions.
    Crown Group also owns interests in other subsidiaries that are held for sale and are included in discontinued operations. These subsidiaries include (i) 70% of Smart Choice Automotive Group, Inc. (OTCBB:SCHA), a used car sales and finance company; (ii) 80% of Concorde Acceptance Corporation, a prime and sub-prime mortgage lender; and (iii) 50% of Precision IBC, Inc., a firm specializing in the sale and rental of intermediate bulk containers.
    As previously announced, the Company intends to seek shareholder approval to change its corporate name to "America's Car-Mart, Inc." at its annual meeting of shareholders on January 16, 2002.

    Included herein are forward-looking statements, including statements with respect to targeted revenue growth and expected or targeted earnings per share amounts. There are many factors that affect management's view about future operating results. These factors involve risks and uncertainties that could cause actual results to differ materially from management's present view. These factors include, without limitation, assumptions relating to economic conditions, credit losses, continued availability of lines of credit, unit sales, the opening of additional dealerships, and other risk factors described under "Forward-looking Information" of Item 2 of Part I of the Company's Quarterly Report on Form 10-Q for the quarter ended October 31, 2001. The Company does not undertake any obligation to update forward-looking statements.