Business
America’s Car-Mart Reports Third Quarter Fiscal 2024 Results
ROGERS, Ark., March 08, 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., March 08, 2024 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), today reported financial results for the third quarter ended January 31, 2024. Third Quarter Key Highlights (Q3 FY24 vs. Q3 FY23, unless otherwise noted) Completed implementation of updated loan origination system (LOS)Q3 revenue was $299.6 million, down 7.9%Total collections increased 9.3%Allowance for credit loss adjusted to 25.74%, down sequentially 30 bpsNet charge-offs as a % of average finance receivables were 6.8% vs. 5.9%, down sequentially 40 bpsLoss per share $1.34 vs. $0.23 diluted earnings per shareEntered into a strategic partnership with Cox Automotive in February “We continue to navigate a challenging macro environment facing our customers and remain focused on their success. While sales volumes fell short of our expectations during the quarter, they are not reflective of the efforts put forth by the team. I am encouraged by our continued progress during the quarter in gross profit, credit losses, and initial results generated by our loan origination system. We have implemented several initiatives to improve sales during the fourth quarter. Our priority is to be agile with our cost structure and investments to deliver long-term profitability and shareholder value.” Doug CampbellPresident and CEO 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/bdaee810-0330-4474-aefa-099ec1f6e9b4 Note: Discussions in each section provide third quarter comparisons from fiscal year 2023 to fiscal year 2024. TOTAL REVENUE – A 7.9% drop in revenue was primarily driven by the decrease in retail units sold. Interest income contributed favorably and was up 16.0% year-over-year. A portion of the decline in revenue was masked by the average retail sales price being up 7.5%. SALES – Sales for the quarter were 11,664 units vs. 14,508 units, down 19.6% compared to the prior year quarter. Total credit application volume was down 8.3% year over year, which represented about half of the sales decline. Two fewer selling days during the quarter, and weather in January accounted for approximately 3-4% ...