America's Car-Mart Reports Third Quarter Earnings
BENTONVILLE, Ark., March 2 -- America's Car-Mart, Inc. today announced its operating results for the third fiscal quarter ended January 31, 2006.
Highlights of third quarter operating results: * Revenue growth of 20.8% * Income increase of 3% * Diluted EPS increase of 3% * Retail unit sales growth of 13% * Same store revenue growth of 16.7% * Increase in Finance Receivables during the quarter of 5.1%
For the three months ended January 31, 2006, revenues increased 20.8% to $58.2 million compared with $48.2 million in the same period of the prior year. Income for the quarter increased 3% to $4.5 million or $0.37 per diluted share, versus $4.3 million, or $0.36 per diluted share in the same period last year. Retail unit sales increased 13% to 6,799 vehicles in the current quarter, compared to 6,019 in the same period last year. Same store revenue increased 16.7% during the quarter. Finance Receivables grew by $8.5 million during the quarter or 5.1%.
Highlights of nine month operating results: * Revenue growth of 14.9% * Income decrease of 11.0% * Diluted EPS decrease of 11.4% * Retail unit sales growth of 8.3% * Same store revenue growth of 10.7% * Increase in Finance Receivables of 15.5% during the nine months
For the nine months ended January 31, 2006, revenues increased 14.9% to $171.8 million, compared with $149.5 million in the same period of the prior fiscal year. Income for the first nine months of FY 2006 decreased 11% to $12.2 million, or $1.01 per diluted share, versus $13.7 million, or $1.14 per diluted share, in the same period last year. Retail unit sales increased 8.3% to 20,319 vehicles in the current period, compared to 18,761 vehicles in the same period last year. Same store sales revenue increased 10.7% during the nine months and Finance Receivables grew by $23.6 million or 15.5%.
"We are pleased with our strong operating results this quarter, including revenue growth of over 20%, same store revenue growth of nearly 17%, and retail unit sales growth of 13%," commented T. J. ("Skip") Falgout, III, Chairman and Chief Executive Officer of America's Car Mart. "On the credit side, our credit losses as a percentage of sales improved from 24.6% last quarter to 20.6% this quarter, versus 20.3% in the same period last year. Also, our accounts over 30 days past due were in line with our historical experience, at 4.7% versus 4.6% last year.
"Net income was somewhat squeezed by lower gross margins, primarily resulting from the tighter inventory availability that we faced in the quarter," added Mr. Falgout. "However, we expect to get some relief on the inventory issues as the hurricane replacement buying tails off and the busy tax refund season winds down."
"During the quarter, we opened four new dealerships, Columbia, Missouri; West Plains, Missouri; Claremore, Oklahoma; and Van Buren, Arkansas," said William H. ("Hank") Henderson, President of America's Car Mart. "In addition, we completed the expansion of our dealerships in Jonesboro, Arkansas; Springfield, Missouri; and Ardmore, Oklahoma. These expanded dealerships, along with other properties in the process of expansion, will be significant in terms of increasing our organic growth on top of our growth in new locations."
Fiscal 2006 Earnings Guidance
The Company expects diluted earnings per share to be in the $1.43 to $1.50 range for the year ended April 30, 2006.
About America's Car-Mart
America's Car-Mart operates 84 automotive dealerships in eight 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 Balance Sheet and Other Data
January 31, April 30,
2006 2005
Cash and cash equivalents $274,870 $459,177
Finance receivables, net $142,197,402 $123,098,966
Total assets $168,401,708 $143,668,258
Revolving credit facility $38,341,448 $29,145,090
Stockholders' equity $114,743,900 $103,265,381
Shares outstanding 11,838,774 11,843,738
Finance receivables:
Principal balance $175,979,142 $152,350,210
Allowance for credit losses (33,781,740) (29,251,244)
Finance receivables, net $142,197,402 $123,098,966
Allowance as % of principal balance 19.20% 19.20%
Changes in allowance for credit losses: Nine Months Ended
January 31,
2006 2005
Balance at beginning of year $29,251,244 $25,035,967
Provision for credit losses 34,596,030 27,655,675
Net charge-offs (30,065,534) (24,420,701)
Balance at end of period $33,781,740 $28,270,941
America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
%Change As a % of Sales
Three Months Ended 2006 Three Months Ended
January 31, vs. January 31,
2006 2005 2005 2006 2005
Operating Data:
Retail units sold 6,799 6,019 13.0 %
Average number of
stores in operation 81.3 76.0 7.0
Average retail units
sold per store per
month 27.9 26.4 5.6
Average retail sales
price $7,507 $7,082 6.0
Same store revenue
growth 16.7% 10.8%
Period End Data:
Stores open 84 76 10.5 %
Accounts over 30 days
past due 4.7% 4.6%
Finance Receivables,
gross $175,979 $147,244 19.5 %
Operating Statement:
Revenues:
Sales $53,200 $44,177 20.4 % 100.0 % 100.0 %
Interest income 5,048 4,042 24.9 9.5 9.1
Total 58,248 48,219 20.8 109.5 109.1
Costs and expenses:
Cost of sales 29,636 23,258 27.4 55.7 52.6
Selling, general and
administrative 9,769 8,689 12.4 18.4 19.7
Provision for credit
losses 10,936 8,947 22.2 20.6 20.3
Interest expense 691 345 100.3 1.3 0.8
Depreciation and
amortization 151 116 30.2 0.3 0.3
Total 51,183 41,355 23.8 96.2 93.6
Income before
taxes 7,065 6,864 2.9 13.3 15.5
Provision for income
taxes 2,601 2,531 2.8 4.9 5.7
Net income $4,464 $4,333 3.0 8.4 9.8
Earnings per share:
Basic $0.38 $0.37
Diluted $0.37 $0.36
Weighted average number
of shares outstanding:
Basic 11,864,475 11,751,054
Diluted 12,011,480 12,040,748
America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
%Change As a % of Sales
Nine Months Ended 2006 Nine Months Ended
January 31, vs. January 31,
2006 2005 2005 2006 2005
Operating Data:
Retail units sold 20,319 18,761 8.3 %
Average number of
stores in operation 79.8 74.0 7.8
Average retail units
sold per store per
month 28.3 28.2 0.4
Average retail sales
price $7,429 $7,079 4.9
Same store revenue
growth 10.7% 11.4%
Period End Data:
Stores open 84 76 10.5 %
Accounts over 30 days
past due 4.7% 4.6%
Finance Receivables,
gross $175,979 $147,244 19.5 %
Operating Statement:
Revenues:
Sales $157,377 $138,104 14.0 % 100.0 % 100.0 %
Interest income 14,379 11,440 25.7 9.1 8.3
Total 171,756 149,544 14.9 109.1 108.3
Costs and expenses:
Cost of sales 87,011 73,825 17.9 55.3 53.5
Selling, general and
administrative 28,709 25,255 13.7 18.2 18.3
Provision for credit
losses 34,596 27,656 25.1 22.0 20.0
Interest expense 1,736 859 102.1 1.1 0.6
Depreciation and
amortization 429 307 39.7 0.3 0.2
Total 152,481 127,902 19.2 96.9 92.6
Income before
taxes 19,275 21,642 (10.9) 12.2 15.7
Provision for income
taxes 7,123 7,984 (10.8) 4.5 5.8
Net income $12,152 $13,658 (11.0) 7.7 9.9
Earnings per share:
Basic $1.03 $1.17
Diluted $1.01 $1.14
Weighted average number
of shares outstanding:
Basic 11,812,337 11,709,948
Diluted 11,984,883 12,020,492