Car-Mart’s 4Q Profit Dips 8.8%
by May 24, 2013 11:47 am 97 views
Hank Henderson
Citing increased competition in the subprime auto lending industry, America’s Car-Mart Inc. of Bentonville said profit fell 8.83 percent in fourth-quarter profit.
After the market closed Thursday, the used-car dealer reported earnings of $8.78 million, or 92 cents per share, for the quarter that ended April 30, down from $9.63 million, or 97 cents per share, in the same period a year ago.
The company matched the average earnings estimate of 92 cents per share from five analysts surveyed by Thomson Reuters.
Revenue rose 10.63 percent to $125.54 million.
The number of cars sold grew 10 percent over the same quarter last year. Operating in 10 states, Car-Mart opened its 124th lot last month in Gadsden, Ala.
The company focuses on the “buy here, pay here” segment of the used-car market, providing financing for most of its customers.
President and CEO William H. “Hank” Henderson said in a news release that increased funding in the subprime auto industry has put some competitive pressure on the company this year. However, he said the company would continue opening new dealerships at a rate of 10 percent a year for fiscal 2014 “and beyond.”
For the year, Car-Mart posted earnings of $32.13 million, or $3.36 per share, compared to $32.95 million, or $3.24 per share, a year earlier.
Revenue for the year rose 8.02 percent to $464.68 million.
In mid-day trading Friday on the Nasdaq, Car-Mart’s shares were at $46.39, up 35 cents or 0.76 percent. Shares have traded between $35.81 and $50.59 in the past year.