America's Car-Mart Reports Fourth Quarter Earnings
Company Reaffirms EPS Guidance for Fiscal 2005
BENTONVILLE, Ark., June 10 -- America's Car-Mart, Inc. today announced its operating results for the fourth fiscal quarter and year ended April 30, 2004. The Company's results are segmented into continuing and discontinued operations.
Highlights of fourth quarter operating results (continuing operations): * Revenue growth of 13% over the prior year quarter * Income growth of 24% from the prior year quarter * Diluted EPS growth of 20% from the prior year quarter * Retail unit sales growth of 5% over the prior year quarter
For the three months ended April 30, 2004, revenues increased 13% to $47.7 million, compared with $42.2 million in the same period of the prior fiscal year. Income for the quarter increased 24% to $4.6 million, or $0.58 per diluted share, versus $3.7 million, or $0.48 per diluted share, in the same period last year. Retail unit sales increased 5% to 6,183 vehicles in the current quarter, compared to 5,892 vehicles in the same period last year.
Highlights of fiscal year 2004 operating results (continuing operations): * Revenue growth of 14% over the prior year * Income growth of 15% over the prior year * Diluted EPS growth of 13% over the prior year * Retail unit sales growth of 10% over the prior year
For the year ended April 30, 2004, revenues from continuing operations increased 14% to $176.2 million, compared with $154.9 million in the same period of the prior fiscal year. Income from continuing operations in FY 2004 increased 15% to $15.6 million, or $1.96 per diluted share, versus $13.6 million, or $1.73 per diluted share, in the prior fiscal year. Retail unit sales increased 10% to 24,281 vehicles in FY 2004, compared to 22,022 vehicles in FY 2003.
"We are pleased with our strong financial results in the fourth quarter, including revenue growth of 13% and income growth of 24% over the same period last year," commented T. J. ("Skip") Falgout, III, Chief Executive Officer of America's Car-Mart. "As planned, we moved our average retail sales price up by about $400 over the prior fiscal quarter principally as a result of virtually eliminating the purchase and sale of lower-priced vehicles, increasing the average sales price at our larger dealerships, and a 3% price increase that went into effect in January 2004. We also brought down the percentage of accounts over 30 days past due to 3.0%, as compared to 4.5% at January 31, 2004 and 3.9% at April 30, 2003. Along with our strong operating results, we continue to strengthen our balance sheet. As of year end, debt was reduced to less than $23 million (down $3 million from last year), finance receivable principal balances had grown almost $17 million to $128 million, and our debt to equity ratio fell to .27 to 1."
"Car-Mart met its expansion target this past year by opening a net of six new dealerships which, along with our Sulphur Springs and Corsicana, Texas, dealerships that will open in a few days, brings the total number of dealerships to 72," stated Hank Henderson, America's Car-Mart's President. "We plan to open eight new dealerships this year, principally in Texas, Oklahoma and Missouri. In addition to opening several new dealerships in fiscal 2005, we expect to expand a number of our existing stores. Growth at a number of our existing facilities has become restricted due to space limitations. Expansion at certain existing facilities, as well as relocations of others, will allow some of our older dealerships to operate more efficiently and continue their sales growth."
Fiscal 2005 Earnings Guidance
The Company has reaffirmed its fiscal year 2005 earnings estimate from continuing operations. Accordingly, the Company projects that it will earn $2.22 to $2.34 per diluted share from continuing operations in FY 2005 as follows:
Period Period Ending Projected
Diluted EPS
1st Quarter 7-31-04 $ .57 to .60
2nd Quarter 10-31-04 .53 to .56
3rd Quarter 1-31-05 .49 to .52
4th Quarter 4-30-05 .63 to .66
Fiscal 2005 4-30-05 $ 2.22 to 2.34
About America's Car-Mart
America's Car-Mart operates 70 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 http://www.car-mart.com/ .
America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
% Change As a % of Sales
Three Months Ended 2004 Three Months Ended
April 30, vs. April 30,
2004 2003 2003 2004 2003
Operating Data:
Retail units sold 6,183 5,892 4.9%
Average number of stores
in operation 69.3 63.3 9.5
Average retail units
sold per store per month 29.7 31.0 (4.1)
Average retail sales
price $6,928 $6,532 6.1
Same store revenue
growth 7.8% 17.2%
Period End Data:
Stores open 70 64 9.4%
Accounts over
30 days past due 3.0% 3.9%
Operating Statement:
Revenues:
Sales $44,429 $39,537 12.4% 100.0% 100.0%
Interest income 3,277 2,674 22.6 7.4 6.8
Total 47,706 42,211 13.0 107.4 106.8
Costs and expenses:
Cost of sales 23,496 21,245 10.6 52.9 53.7
Selling, general and
administrative 7,848 7,219 8.7 17.7 18.3
Provision for credit
losses 8,720 7,482 16.5 19.6 18.9
Interest expense 199 319 (37.6) 0.4 0.8
Depreciation and
amortization 90 89 1.1 0.2 0.2
Total 40,353 36,354 11.0 90.8 91.9
Income from continuing
operations before
taxes 7,353 5,857 25.5 16.6 14.8
Provision for income
taxes 2,718 2,109 28.9 6.1 5.3
Income from continuing
operations 4,635 3,748 23.7 10.4 9.5
Discontinued operations:
Income from discontinued
operations, after taxes
Gain on sale of
discontinued operation,
after taxes
Income from discontinued
operations --- ---
Net income $4,635 $3,748 23.7%
Basic earnings per share:
Continuing operations $ 0.60 $ 0.53 13.4%
Discontinued operations --- ---
Total $ 0.60 $ 0.53
Diluted earnings per share:
Continuing operations $ 0.58 $ 0.48 20.2%
Discontinued operations --- ---
Total $ 0.58 $ 0.48
Weighted average number
of shares outstanding:
Basic 7,746,663 7,105,535
Diluted 8,003,528 7,778,081
America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
% Change As a % of Sales
Year Ended 2004 Year Ended
April 30, vs. April 30,
2004 2003 2003 2004 2003
Operating Data:
Retail units sold 24,281 22,022 10.3%
Average number of
stores in operation 67.0 61.2 9.5
Average retail units
sold per store per
month 30.2 30.0 0.7
Average retail sales
price $6,506 $6,386 1.9
Same store revenue
growth 9.8% 15.5%
Period End Data:
Stores open 70 64 9.4%
Accounts over
30 days past due 3.0% 3.9%
Operating Statement:
Revenues:
Sales $163,589 $145,014 12.8% 100.0% 100.0%
Interest income 12,595 9,871 27.6 7.7 6.8
Total 176,184 154,885 13.8 107.7 106.8
Costs and expenses:
Cost of sales 85,510 77,073 10.9 52.3 53.1
Selling, general
and administrative 29,671 27,417 8.2 18.1 18.9
Provision for credit
losses 34,767 26,897 29.3 21.3 18.5
Interest expense 1,114 1,686 (33.9) 0.7 1.2
Depreciation and
amortization 321 299 7.4 0.2 0.2
Total 151,383 133,372 13.5 92.5 92.0
Income from
continuing
operations
before taxes 24,801 21,513 15.3 15.2 14.8
Provision for
income taxes 9,162 7,944 15.3 5.6 5.5
Income from
continuing
operations 15,639 13,569 15.3 9.6 9.4
Discontinued operations:
Income from
discontinued operations,
after taxes 165 375
Loss on sale of
discontinued operation,
after taxes 131
Income from
discontinued
operations 165 506
Net income $15,804 $14,075 12.3%
Basic earnings per share:
Continuing
operations $2.07 $1.93 7.2%
Discontinued
operations 0.02 0.08
Total $2.09 $2.01
Diluted earnings per share:
Continuing
operations $1.96 $1.73 13.3%
Discontinued
operations 0.02 0.07
Total $1.98 $1.80
Weighted average
number of shares
outstanding:
Basic 7,545,964 7,015,992
Diluted 7,963,426 7,828,744
America's Car-Mart, Inc.
Consolidated Balance Sheet and Other Data
April 30, April 30,
2004 2003
Cash and cash equivalents $ 1,128,349 $ 783,786
Finance receivables, net $103,683,660 $ 91,358,935
Total assets $117,241,451 $101,840,582
Revolving credit facility $ 22,534,120 $ 25,968,220
Stockholders' equity $ 84,577,476 $ 65,960,873
Shares outstanding 7,757,841 7,207,963
Book value per share $ 10.90 $ 9.15
Finance receivables:
Principal balance $128,719,627 $111,754,030
Allowance for credit losses (25,035,967) (20,395,095)
Finance receivables, net $103,683,660 $ 91,358,935
Allowance as % of principal balance 19.45% 18.25%
Changes in allowance for credit losses:
Year Ended
April 30,
2004 2003
Balance at beginning of year $20,395,095 $17,042,609
Provision for credit losses 34,766,496 26,896,608
Net charge-offs (30,125,624) (23,544,122)
Balance at end of period $25,035,967 $20,395,095