Business
America’s Car-Mart Reports Fourth Quarter and Fiscal Year 2024 Results
ROGERS, Ark., June 18, 2024 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), today reported financial results
About this update from America's Car-mart, Inc.
[{"type":"text","content":"ROGERS, Ark., June 18, 2024 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), today reported financial results for the fourth quarter and full year ended April 30, 2024. Fourth Quarter Key Highlights (FY’24 Q4 vs. FY’23 Q4, unless otherwise noted) Revenue was $364.7 million, down 5.8%Gross Margin improved to 35.5%, up 200 bpsTotal collections increased 5.0% to $187.2 millionFavorable adjustment to allowance for credit loss to 25.32%, down from 25.74%Net charge-offs as a % of average finance receivables were 7.3% vs. 6.3%Interest expense increase of $4.9 million or 38.2%Diluted earnings per share $0.06 vs. $0.32 Full Year Key Highlights (FY’24 vs. FY’23, unless otherwise noted) Revenue was $1.4 billion, down 0.5%Gross Margin increased to 34.7%, up 120 bpsTotal collections increased 9.2% to $688.9 millionSG&A per average account was down 2.5%Interest expense increase of $27.0 million or 70.6%Loss per share $4.92 vs. $3.11 diluted earnings per shareSignificant progress on strategic initiatives – implementation of Loan Origination System (LOS), initiation of Cox partnership, deployment of acquisition strategy President and CEO Commentary, Doug Campbell “Our sales results improved sequentially but fell short of our internal expectations for the quarter. I am encouraged by our disciplined management on several fronts, including SG&A, total cash collected from customers, improved down payments, and stronger gross margins -- all of which were improved over the prior year quarter. The LOS and its improved underwriting capability continues to deliver superior results when compared to our legacy system and aided in a reduction in our provision for credit loss. We are also thrilled about our most recent acquisition and welcome our new associates from Texas Auto Center to the Car-Mart family. This transaction closed June 3, 2024, and is the largest acquisition to date for our company. Despite these positives, the persistent inflationary environment driven by macro trends disproportionately impacted our customer base. In the upcoming year we are confident in our multi-pronged approach to lower overall vehicle costs and improve affordability for our consumers.” Fourth Quarter and Fiscal Year 2024 Key Operating Metrics Dollars in thousands, except per share data. Dollar and percentage changes may n...