America’s Car-Mart posted third quarter net income of $7.98 million on revenue of $119 million.
The results were an improvement from one year ago when Car-Mart recorded net income of $7.3 million on revenue of $105 million.
The Bentonville-based used car chain said the increase in profits and sales came despite increased pressure from competitors.
“We are very pleased with our results for the quarter, and especially so with the significant increases in sales. As we mentioned after our second quarter, we had seen some increases in the amount of funding into the sub-prime auto industry which did create some increased competition that put some pressure on our sales earlier in the year,” said America’s Car-Mart CEO Hank Henderson.
Same-store sales rose 8.8% in a quarter-over-quarter comparison.
“As we discussed, in our efforts to retain our long-term repeat customers, we did have to lengthen overall contract terms. As anticipated, this has led to lower current collections, but the most important measurement is net charge-offs which was flat for the quarter and only up slightly for the nine month period,” said Jeff Williams, Chief Financial Officer of America’s Car-Mart.
You can read more from our recent interview with Car-Mart’s CEO Hank Henderson at this link.
America’s Car-Mart shares (NASDAQ: CRMT) closed trading Monday at $41.56. The company’s stock has traded between $35,81 and $49.20 per share in the last year.