Business
America’s Car-Mart Reports Second Quarter 2024 Results
ROGERS, Ark., Dec. 05, 2023 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), one of the largest publicly held
About this update from America's Car-mart, Inc.
[{"type":"text","content":"ROGERS, Ark., Dec. 05, 2023 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), one of the largest publicly held automotive retailers in the United States, today reported financial results for the second quarter ended October 31, 2023. Second Quarter Key Highlights (Q2 FY24 vs. Q2 FY23) Revenues increased 2.8% to $361.6 millionRetail unit sales were down 4.6%Gross margin increased to 34.3% from 32.1%Customer count increased 6.0% to 104,596Net charge-offs as a % of average finance receivables were 7.2% vs. 5.8%Allowance for credit loss adjusted to 26.04% (EPS reduction of $3.40 after tax)Loss per share $4.30 vs. $0.48 diluted earnings per shareExpanding dealership footprint with a strategic one-location acquisition expected to close in Q3; enhancing market presence and customer service capabilities “Our second quarter results reflect the Car-Mart team’s commitment and focus on delivering value to our customers during a challenging economy. Revenue was up 2.8%, primarily due to interest income despite unit sales being down 4.6% during the quarter. The persistent inflationary environment impacted existing customers, which was evident in our credit losses. This required an increase in the allowance for credit losses which subsequently impacted the bottom line for the quarter. We believe these headwinds regarding credit loss are shorter-term in nature. The operational investments we’ve made are driving greater efficiencies in the business, one of which was gross margin, which was a bright spot during the quarter. However, we are equally focused on being more agile regarding our cost structure to effectively navigate this environment. We believe this will leave our consumer and our Company well-positioned for success in the long term.” Doug Campbell President and CEO, America’s Cart-Mart Key Operating Metrics Dollars in thousands, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale. An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb686d9e-b17b-4930-97f9-4fa594c821cc TOTAL REVENUE – The 2.8% increase in revenue resulted from a 23% increase in interest income and a 5.6% increase in average retail sales price. Approximately 40% of this increase was related to the v...