Car-Mart Sales Jump 22 Percent in 4Q

America’s Car-Mart Inc. of Bentonville said revenue from continuing operations in its fourth quarter of fiscal 2003, which ended April 30, increased 22 percent to $42.2 million, compared with $34.7 million in the same period of the prior fiscal year.

Income increased 19 percent to $3.7 million, or 48 cents per diluted share, versus $3.2 million, or 41 cents per diluted share, in the same period last year. But that $3.2 million excludes a $4.3 million after-tax charge that made the bottom line a loss of $1.1 million in the fourth quarter of fiscal 2002.

The company had forecast earnings of 47 cents per share for the most recent quarter. Car-Mart said it still expects earnings of $2.01 per share for fiscal 2004.

Retail unit sales increased 17 percent to 5,892 vehicles in the most recent quarter, compared to 5,016 vehicles in the same period last year.

For the fiscal year that ended April 30, revenues from continuing operations increased 21 percent to $154.9 million, compared with $127.9 million in fiscal 2002. Income from continuing operations in 2003 increased 42 percent to $13.6 million, or $1.73 per diluted share, versus $9.6 million, or $1.33 per diluted share in fiscal 2002, excluding $10.7 million of after-tax charges in the prior fiscal year. Retail unit sales increased 18 percent to 22,022 vehicles in fiscal 2003, compared to 18,658 vehicles in 2002.

“Along with our strong operating results, we significantly strengthened Car-Mart’s balance sheet,” T. J. (“Skip”) Falgout III, Car-Mart’s CEO said via a press release. “As of year end, debt was reduced to less than $26 million, finance receivable principal balances had grown almost $20 million to $111.8 million, and our debt to equity ratio fell to .39 to 1.”

“Car-Mart met its expansion target this year by opening nine new dealerships,” said Hank Henderson, the company’s president. With 65 dealershipnow Car-Mart has plans to open six to eight more this year.