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Company News: Page (1) of 1 - 11/19/12 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page

America's Car-Mart Reports Diluted Earnings Per Share of $.76 on Revenues of $110 Million, 1.3% of Outstanding Shares Repurchased During Quarter By Globenewswire

BENTONVILLE, Ark., Nov. 19, 2012 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its operating results for its second fiscal quarter ended October 31, 2012. Since February 1, 2010, the Company has invested approximately $85 million to repurchase 24.2% of its outstanding shares under its stock repurchase program.



Highlights of second quarter operating results:




  • Net income of $7.3 million - $.76 per diluted share vs. $.77 per diluted share for prior year quarter


  • Revenues of $110 million compared to $111 million for the prior year quarter with same store revenue decrease of 4.8%


  • Retail unit sales decrease of 1.1% to 9,814 from 9,919 for the prior year quarter


  • Average retail sales price decreased $42, or 0.4% from the prior year quarter and $69, or 0.7% sequentially


  • Opened the Company's 117th dealership - in Oxford, Mississippi


  • Repurchased 119,308 shares of common stock during the quarter (1.3% of the Company) for $5.25 million


  • Active accounts base now over 55,500


  • Debt to equity of 48.8% and debt to finance receivables of 26.9%


  • Allowance for credit losses at 21.5% of finance receivables at October 31, 2012 and at April 30, 2012



Highlights of six month operating results:



  • Net income of $15.4 million or $1.59 per diluted share vs. $1.55 per diluted share for prior year period (2.6% increase in diluted earnings per share)


  • Revenue increase of 4.2% to $220.2 million from $211.3 million for the prior year period with same store revenue growth of 0.1%


  • Retail unit sales increase of 3.2% to 19,567 from 18,968 for the prior year period


  • Strong cash flows supporting the increase in revenues and the $22 million increase in Finance Receivables, $2.0 million in net capital expenditures, and $14.7 million in common stock re-purchases with only a $13.4 million increase in total debt


  • Provision for credit losses of 23.1% of sales vs. 21.6% for prior year period



"While we are facing some near-term revenue challenges, we are convinced that the direction we are going will provide significant profitable long-term opportunities for America's Car-Mart. We are confident that our business model is strong and our growth opportunities are outstanding. The amount of funding for the sub-prime auto industry has increased recently and appears to have had somewhat of a negative effect on our overall revenues during the 2nd quarter, especially in some of our older, more established markets," said William H. ("Hank") Henderson, President and Chief Executive Officer of America's Car-Mart. "This is not the first time we have seen this situation over our 31 year history and we are making adjustments to help retain our better repeat customers who now may have a few more options than they have had in the recent past. We believe that Car-Mart's local presence and face to face relationships give us the ability to work with customers far more effectively than subprime finance companies. We offer the best long-term choice for our customers and we will work tirelessly to earn their repeat business by providing quality vehicles, affordable payment terms and excellent service. We have over 55,000 active accounts and many more past customers who know what Car-Mart stands for and the lengths we go to help them succeed. We are committed to fighting to keep our best customers and we look forward to a bright future. In addition to serving our existing markets, we believe that there has never been a better time for Car-Mart to be adding new locations to serve an ever expanding customer base."



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