America's Car-Mart Reports Earnings
BENTONVILLE, Ark.--June 26, 2003--America's Car-Mart, Inc. today announced its operating results for the fourth fiscal quarter and year ended April 30, 2003. The Company's results are segmented into continuing and discontinued operations.
Highlights of fourth quarter operating results (continuing operations, excluding a charge in prior fiscal period):
-- Revenue growth of 22% over the prior year quarter
-- Income growth of 19% over the prior year quarter
-- EPS growth of 17% over the prior year quarter
-- Retail unit sales growth of 17% over the prior year quarter
For the three months ended April 30, 2003, revenues from continuing operations increased 22% to $42.2 million, compared with $34.7 million in the same period of the prior fiscal year. Income from continuing operations for the quarter increased 19% to $3.7 million, or $0.48 per diluted share, versus $3.2 million, or $0.41 per diluted share, in the same period last year, excluding a $4.3 million after tax charge in the prior fiscal year. Retail unit sales increased 17% to 5,892 vehicles in the current quarter, compared to 5,016 vehicles in the same period last year.
Highlights of FY 2003 operating results (continuing operations, excluding charges in prior fiscal year):
-- Revenue growth of 21% over the prior year
-- Income growth of 42% over the prior year
-- EPS growth of 30% over the prior year
-- Retail unit sales growth of 18% over the prior year
For the year ended April 30, 2003, revenues from continuing operations increased 21% to $154.9 million, compared with $127.9 million in FY 2002. Income from continuing operations in FY 2003 increased 42% to $13.6 million, or $1.73 per diluted share, versus $9.6 million, or $1.33 per diluted share in FY 2002, excluding $10.7 million of after tax charges in the prior fiscal year. Retail unit sales increased 18% to 22,022 vehicles in FY 2003, compared to 18,658 vehicles in FY 2002.
"We are extremely pleased with our strong financial results this year, including revenue growth of 21% and income growth of 42% over last year," commented T. J. ("Skip") Falgout, III, Chief Executive Officer of America's Car-Mart. "Along with our strong operating results, we significantly strengthened Car-Mart's balance sheet. As of year end, debt was reduced to less than $26 million, finance receivable principal balances had grown almost $20 million to $111.8 million, and our debt to equity ratio fell to .39 to 1."
"Car-Mart met its expansion target this year by opening nine new dealerships which, along with our Longview, Texas, dealership that opened in May 2003, brings the total number of dealerships to 65," stated Hank Henderson, America's Car-Mart's President. "We plan to open six to eight new dealerships this year, and we expect to experience strong revenue and earnings growth from our existing dealerships."
Fiscal 2004 Earnings Guidance
The Company has reaffirmed its outlook for fiscal 2004. The Company projects that it will earn $2.01 per diluted share in FY 2004 as follows:
Projected
Period Period Ending Diluted EPS
---------------------------------------------------- ----------------
1st Quarter 7-31-03 $0.50
2nd Quarter 10-31-03 $0.48
3rd Quarter 1-31-04 $0.47
4th Quarter 4-30-04 $0.56
----------------
Fiscal 2004 4-30-04 $2.01
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Conference Call
About America's Car-Mart
America's Car-Mart operates 65 automotive dealerships in seven states and is the largest publicly held automotive retailer in the United States focused exclusively on the "Buy Here/Pay Here" segment of the used car market. 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 on America's Car-Mart, please visit our website at www.car-mart.com.
Included herein are forward-looking statements, including statements with respect to projected earnings per share amounts. There are many factors that affect management's view about future earnings. 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 unit sales, credit losses, gross margins, operating expenses and economic conditions, and other risk factors described under "Forward-Looking Statements" of Item 1 of Part I of the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2002. All forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake any obligation to update forward-looking statements.
America's Car-Mart, Inc.
Consolidated Results of Operations
(in thousands, except operating and share data)
Three Months Ended Year Ended
April 30, April 30,
--------------------- ---------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Operating data:
Retail units sold 5,892 5,016 22,022 18,658
Average number of stores
in operation 63.3 55.0 61.2 52.5
Average retail units sold
per store per month 31.0 30.4 30.0 29.6
Average retail sales price $6,529 $6,258 $6,386 $6,126
Same store revenue growth 17.2% 11.5% 15.5% 14.1%
Accounts 30 days or more
past due (at period end) 4.3% 2.8% 4.3% 2.8%
Revenues:
Sales $39,537 $32,520 $145,014 $118,642
Interest income 2,674 2,176 9,871 9,282
---------- ---------- ---------- ----------
Total 42,211 34,696 154,885 127,924
---------- ---------- ---------- ----------
Costs and expenses:
Cost of sales 21,245 17,416 77,073 62,965
Selling, general and
administrative 7,219 6,284 27,417 22,326
Provision for credit
losses 7,482 5,626 26,897 23,136
Interest expense 319 583 1,686 3,022
Depreciation and
amortization 89 74 299 284
Stock option based
compensation 5,039 7,329
Restructuring charge 2,732
Write-down of investments
and equipment 3,928
---------- ---------- ---------- ----------
Total 36,354 35,022 133,372 125,722
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
before taxes and minority
interests 5,857 (326) 21,513 2,202
Provision for income taxes 2,109 720 7,944 2,789
Minority interests 131 549
---------- ---------- ---------- ----------
Income (loss) from
continuing operations 3,748 (1,177) 13,569 (1,136)
Discontinued operations:
Income (loss) from
discontinued operations,
net of taxes and minority
interests 106 375 (13,170)
Gain on sale of
discontinued operation,
net of tax 131
---------- ---------- ---------- ----------
Income (loss) from
discontinued operations - 106 506 (13,170)
---------- ---------- ---------- ----------
Net income (loss) $3,748 $(1,071) $14,075 $(14,306)
========== ========== ========== ==========
Basic earnings (loss) per
share:
Continuing operations $0.53 $(0.17) $1.93 $(0.17)
Discontinued operations - 0.01 0.08 (1.94)
---------- ---------- ---------- ----------
Total $0.53 $(0.16) $2.01 $(2.11)
========== ========== ========== ==========
Diluted earnings (loss)
per share:
Continuing operations $0.48 $(0.17) $1.73 $(0.17)
Discontinued operations - 0.01 0.07 (1.94)
---------- ---------- ---------- ----------
Total $0.48 $(0.16) $1.80 $(2.11)
========== ========== ========== ==========
Weighted average number of
shares outstanding:
Basic 7,105,535 6,835,843 7,015,992 6,795,461
Diluted 7,778,081 6,835,843 7,828,744 6,795,461
America's Car-Mart, Inc.
Continuing Operating Results by Segment
(in thousands)
For the Three Months Ended April 30, 2003
--------------------------------------------
Car-Mart Corporate Eliminations Consolidated
-------- --------- ------------ ------------
Revenues:
Sales $39,537 $39,537
Interest income 2,667 $154 $(147) 2,674
-------- --------- ------------ ------------
Total 42,204 154 (147) 42,211
-------- --------- ------------ ------------
Costs and expenses:
Cost of sales 21,245 21,245
Selling, general and
administrative 7,089 130 7,219
Provision for credit
losses 7,482 7,482
Interest expense 466 (147) 319
Depreciation and
amortization 69 20 89
-------- --------- ------------ ------------
Total 36,351 150 (147) 36,354
-------- --------- ------------ ------------
Income (loss) before
taxes and minority
interests $5,853 $4 $- $5,857
======== ========= ============ ============
For the Three Months Ended April 30, 2002
--------------------------------------------
Car-Mart Corporate Eliminations Consolidated
-------- --------- ------------ ------------
Revenues:
Sales $32,520 $32,520
Interest income 2,117 $133 $(74) 2,176
-------- --------- ------------ ------------
Total 34,637 133 (74) 34,696
-------- --------- ------------ ------------
Costs and expenses:
Cost of sales 17,416 17,416
Selling, general and
administrative 5,543 741 6,284
Provision for credit
losses 5,626 5,626
Interest expense 490 167 (74) 583
Depreciation and
amortization 57 17 74
Stock option based
compensation 5,039 5,039
-------- --------- ------------ ------------
Total 29,132 5,964 (74) 35,022
-------- --------- ------------ ------------
Income (loss) before
taxes and minority
interests $5,505 $(5,831) $- $(326)
======== ========= ============ ============
America's Car-Mart, Inc.
Continuing Operating Results by Segment
(in thousands)
For the Year Ended April 30, 2003
---------------------------------------------
Car-Mart Corporate Eliminations Consolidated
--------- --------- ------------ ------------
Revenues:
Sales $145,014 $145,014
Interest income 9,787 $516 $(432) 9,871
--------- --------- ------------ ------------
Total 154,801 516 (432) 154,885
--------- --------- ------------ ------------
Costs and expenses:
Cost of sales 77,073 77,073
Selling, general and
administrative 25,612 1,805 27,417
Provision for credit
losses 26,897 26,897
Interest expense 1,972 146 (432) 1,686
Depreciation and
amortization 218 81 299
--------- --------- ------------ ------------
Total 131,772 2,032 (432) 133,372
--------- --------- ------------ ------------
Income (loss) before
taxes and minority
interests $23,029 $(1,516) $- $21,513
========= ========= ============ ============
For the Year Ended April 30, 2002
---------------------------------------------
Car-Mart Corporate Eliminations Consolidated
--------- --------- ------------ ------------
Revenues:
Sales $118,642 $118,642
Interest income 8,775 $838 $(331) 9,282
--------- --------- ------------ ------------
Total 127,417 838 (331) 127,924
--------- --------- ------------ ------------
Costs and expenses:
Cost of sales 62,965 62,965
Selling, general and
administrative 19,354 2,972 22,326
Provision for credit
losses 23,036 100 23,136
Interest expense 2,564 789 (331) 3,022
Depreciation and
amortization 162 122 284
Stock option based
compensation 7,329 7,329
Restructuring charge 2,732 2,732
Write-down of
investments and
equipment 3,928 3,928
--------- --------- ------------ ------------
Total 108,081 17,972 (331) 125,722
--------- --------- ------------ ------------
Income (loss) before
taxes and minority
interests $19,336 $(17,134) $- $2,202
========= ========= ============ ============
America's Car-Mart, Inc.
Car-Mart Results Only
(dollars in thousands)
% Change As a % of Sales
---------- ---------------
Three Months Three Months
Ended 2003 Ended
April 30, vs April 30,
2003 2002 2002 2003 2002
--------- --------- ---------- ------- -------
Revenues:
Sales $39,537 $32,520 21.6 % 100.0 % 100.0 %
Interest income 2,667 2,117 26.0 6.7 6.5
--------- --------- ------- -------
Total 42,204 34,637 21.8 106.7 106.5
--------- --------- ------- -------
Costs and expenses:
Cost of sales 21,245 17,416 22.0 53.7 53.6
Selling, general
and administrative 7,089 5,543 27.9 17.9 17.0
Provision for
credit losses 7,482 5,626 33.0 18.9 17.3
Interest expense 466 490 (4.9) 1.2 1.5
Depreciation and
amortization 69 57 21.1 0.2 0.2
--------- --------- ------- -------
Total 36,351 29,132 24.8 91.9 89.6
--------- --------- ------- -------
Pretax income $5,853 $5,505 6.3 14.8 16.9
========= ========= ======= =======
% Change As a % of Sales
---------- ---------------
Year Ended 2003 Year Ended
April 30, vs April 30,
2003 2002 2002 2003 2002
--------- --------- ---------- ------- -------
Revenues:
Sales $145,014 $118,642 22.2 % 100.0 % 100.0 %
Interest income 9,787 8,775 11.5 6.8 7.4
--------- --------- ------- -------
Total 154,801 127,417 21.5 106.8 107.4
--------- --------- ------- -------
Costs and expenses:
Cost of sales 77,073 62,965 22.4 53.1 53.1
Selling, general
and
administrative 25,612 19,354 32.3 17.7 16.3
Provision for
credit losses 26,897 23,036 16.8 18.5 19.4
Interest expense 1,972 2,564 (23.1) 1.4 2.2
Depreciation and
amortization 218 162 34.6 0.2 0.1
--------- --------- ------- -------
Total 131,772 108,081 21.9 90.9 91.1
--------- --------- ------- -------
Pretax income $23,029 $19,336 19.1 15.9 16.3
========= ========= ======= =======
America's Car-Mart, Inc.
Consolidated Balance Sheet and Other Data
April 30, April 30,
2003 2002
------------- -------------
Cash and cash equivalents $783,786 $1,229,920
Finance receivables, net $91,358,935 $75,079,603
Total assets $101,840,582 $128,142,362
Credit facility and other debt $25,968,220 $39,791,957
Stockholders' equity $65,960,873 $52,813,187
Shares outstanding 7,207,963 6,944,325
Book value per share $9.15 $7.61
Stores open at period end 64 55
Finance receivables:
Principal balance $111,754,030 $92,122,212
Allowance for credit losses (20,395,095) (17,042,609)
------------- -------------
Finance receivables, net $91,358,935 $75,079,603
============= =============
Allowance as % of principal
balance 18.25% 18.50%
============= =============
Changes in allowance for credit
losses:
Year Ended
April 30,
2003 2002
------------- -------------
Balance at beginning of year $17,042,609 $14,066,782
Provision for credit losses 26,896,608 23,035,926
Net charge-offs (23,544,122) (20,060,099)
------------- -------------
Balance at end of year $20,395,095 $17,042,609
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