Car-Mart Drives Easy To Higher Sales, Profits In Q2
by November 19, 2014 6:00 pm 111 views
America’s Car-Mart had a healthy quarter of higher revenue and stronger profits as same-store sales and customer loyalty boosted top line and bottom line growth.
The Bentonville-based “buy here, pay here” auto chain posted second quarter net income of $7.5 million on revenue of $133.8 million. One year ago, Car-Mart reported profits of $5.8 million on sales and interest income of $121.4 million.
“We are pleased with the results for the quarter especially the improvements with our sales productivity. By focusing on affordability and offering a good mix of vehicles at all price points, we were able to increase the average retail units sold per store per month to 29.6 from 27.6 for the prior year quarter,” said President and CEO William H. “Hank” Henderson.
Financial highlights of the quarter included:
- Retail unit sales increase of 13.9% to 12,084 from 10,608 for the prior year quarter;
- Average retail sales price decreased $220 to $9,490 or 2.3% from the prior year quarter and increased $26 sequentially;
- Net charge-offs as a percent of average finance receivables of 7.0%, up from 6.9% for prior year quarter; and
- Provision for credit losses of 26.3% of sales consistent with the prior year quarter.
Henderson said that other used car dealers and alternative financing continues to present challenges.
“The competitive landscape continues to be challenging, but we are committed to earning repeat business by providing quality vehicles, affordable payment terms and excellent service,” he said.
Car-Mart added seven new dealerships in the last year bringing its total number of dealerships t 136. Henderson said another 8 dealerships are expected to open this fiscal year.
Shares of America’s Car-Mart (NASDAQ: CRMT) closed trading on Wednesday (Nov. 19) at $44.00. The company’s stock has traded between $34.56 and $48.93 during the past 52 weeks.