America’s Car-Mart Reports Diluted Earnings per Share of

ROGERS, Ark., Feb. 16, 2021 (GLOBE NEWSWIRE) — America’s Car-Mart, Inc. (NASDAQ: CRMT) at this time introduced its working outcomes for the third quarter of fiscal 12 months 2021.

“Our results reflect the power of our business model which, at its core, is based on giving our customers ‘peace of mind’ by ‘keeping them on the road.’ What we do is unique, and our customers recognize and appreciate our passionate approach in providing an outstanding customer experience before, during and after the vehicle sale to help them succeed. As we move forward, we believe more consumers will see the benefits of being part of the Car-Mart Family,” mentioned Jeff Williams, President and CEO. “We are proud of our work, but we believe we are in the early stages of our transformation from a collections company to more of a sales company that is very good at collections. When you combine our community-based bricks and mortar structure with a growing digital presence, for which we are investing significant resources, we are very optimistic about our place in the world and the advantages we will continue to leverage as we move forward.”

“During the quarter, we saw a strong increase in the top line with solid volume productivity improvement. Even with our increasing investments in our infrastructure to support a much larger customer base, we saw nice leveraging of our cost structure. Also, our credit results once again showed significant improvement over prior year quarters,” added Mr. Williams. “We will continue to make significant investments in key areas as we fulfill our vision – to be America’s best auto sales and finance company in the eyes of our associates and customers while improving the communities we serve. We believe that we are seeing some initial benefits from the various initiatives we have been working on and we will continue to push to get better. Our on-going investments will not only keep us relevant but will put us in the position of being a market leader focused on recruiting, training, and retaining great associates, inventory procurement and delivering great customer experience.”

“Foundational to these efforts is a significant investment and upgrade to our information technology platform. We have recently begun the implementation of Microsoft Dynamics 365, a full Enterprise Resource Planning product. An important part of this project will be the Customer Relationship Management module which will allow us to better manage the entire customer relationship journey and to exceed expectations from the consumer viewpoint with heavy emphasis on digital,” added Mr. Williams. “We will continue to increase our investment in the corporate Customer Experience team as we build out an infrastructure to support a larger customer base at the highest levels.”

“We believe we have an obligation to serve significantly more customers over time as customers’ lives and the communities we serve are better because we are there. We are so proud of our team and excited for the opportunities we have in front of us,” mentioned Mr. Williams. “Our balance sheet, which is strong as the result of years of disciplined focus on cash flows, gives us a distinct competitive advantage as we move to pick up market share in areas we already serve, add new dealership locations and look for additional acquisition opportunities. Lastly, we have over 2,000 associates, over 85,000 customers and thousands of vendor partners, and together we have a responsibility to positively contribute to making the world a better place. We take that responsibility very seriously.”   

“Revenue increases were driven by a 16.5% increase in the average retail sales price and a 5.6% increase in units sold. We were pleased to see our productivity, the average retail units sold per store per month, improve by 2.0% for the quarter. Productivity increased although we continue to see a tight supply of vehicles at lower price points. We are working diligently in our procurement efforts to provide a quality assortment of vehicles to meet consumer demand,” mentioned Vickie Judy, Chief Financial Officer. “Net charge-offs for the quarter, as a percentage of average finance receivables, were down to 4.9% compared to 5.9% in the prior year quarter, as we continue to work to keep customers on the road and in their vehicles. Although credit results have improved over the nine months since the pandemic began, there is still much uncertainty and as such we have left the allowance at 26.5% of finance receivables, net of deferred revenue. Our investments in our associates and the business are paying off as we had some nice leveraging in our selling, general and administrative expenses decreasing to 16.7% of sales compared to 18.6% in the prior year quarter.”

“Our debt, net of cash, to finance receivables is 27.7%, compared to 30% at the end of the 3^rd quarter of fiscal 2020, just prior to the onset of the pandemic. During the quarter, we added $51.7 million in receivables, increased inventory by $1.1 million, funded $2.0 million in net capital expenditures, and repurchased $3.7 million of our common stock, a total of $58.5 million, with only a $12.3 million increase in debt, net of cash. In the last 12 months, we added $137.0 million in receivables, increased inventory by $14.5 million, repurchased $10.0 million of our common stock, and funded $9.3 million in capital expenditures, a total of $170.8 million, with only a $24.1 million increase in debt, net of cash,” added Ms. Judy.

Conference Call

Management will likely be holding a convention name on Wednesday, February 17, 2021 at 11:00 a.m. Eastern Time to debate quarterly outcomes. A dwell audio of the convention name will likely be accessible to the general public by calling (877) 776-4031. International callers dial (631) 291-4132. Callers ought to dial in roughly 10 minutes earlier than the decision begins. A convention name replay will likely be out there two hours following the decision for thirty days and could be accessed by calling (855) 859-2056 (home) or (404) 537-3406 (worldwide), convention name ID #8139134.

About America’s Car-Mart

America’s Car-Mart, Inc. operates automotive dealerships in twelve states and is one of the biggest publicly held automotive retailers within the United States targeted completely on the “Integrated Auto Sales and Finance” section of the used automobile market. The Company emphasizes superior customer support and the constructing of robust private relationships with its clients. The Company operates its dealerships primarily in smaller cities all through the South-Central United States promoting high quality used automobiles and offering financing for considerably all of its clients. For extra details about America’s Car-Mart, together with investor displays, please go to our web site at www.car-mart.com.

This press launch comprises “forward-looking statements” inside the which means of the Private Securities Litigation Reform Act of 1995. These forward-looking statements handle the Company’s future aims, plans and objectives, in addition to the Company’s intent, beliefs and present expectations relating to future working efficiency and may usually be recognized by phrases reminiscent of “may,” “will,” “should,” “could,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and different comparable phrases or phrases. Specific occasions addressed by these forward-looking statements might embrace, however usually are not restricted to:

• new dealership openings.
• efficiency of new dealerships.
• identical dealership income progress.
• future income progress.
• receivables progress as associated to income progress.
• gross revenue per retail unit offered.
• rates of interest.
• future credit score losses.
• the Company’s assortment outcomes, together with however not restricted to collections throughout revenue tax refund durations;
• seasonality;
• technological investments and initiatives; and
• the Company’s business, working and progress methods.

These forward-looking statements are based mostly on the Company’s present estimates and assumptions and contain varied dangers and uncertainties. As a end result, you might be cautioned that these forward-looking statements usually are not ensures of future efficiency, and that precise outcomes may differ materially from these projected in these forward-looking statements. Factors which will trigger precise outcomes to vary materially from the Company’s projections embrace, however usually are not restricted to:

• business and financial disruptions and uncertainty ensuing from the continuing COVID-19 pandemic and efforts to mitigate the monetary affect and well being dangers related to the pandemic.
• common financial situations within the markets wherein the Company operates, together with however not restricted to fluctuations in gasoline costs, grocery costs and employment ranges;
• the adoption and implementation of any future financial stimulus laws or different authorities help packages for shoppers or companies in consequence of the COVID-19 pandemic;
• the provision of credit score amenities to help the Company’s business;
• the Company’s skill to underwrite and gather its contracts successfully;
• competitors;
• dependence on present administration;
• skill to draw, develop and retain certified common managers;
• availability of high quality automobiles at costs that will likely be inexpensive to clients;
• adjustments in shopper finance legal guidelines or rules, together with however not restricted to guidelines and rules which have lately been enacted or might be enacted by federal and state governments;
• skill to maintain tempo with technological advances and adjustments in shopper habits affecting our business;                
• safety breaches, cyber-attacks, or fraudulent exercise; and
• the power to efficiently determine, full and combine new acquisitions.

Additionally, dangers and uncertainties which will have an effect on future outcomes embrace these described on occasion within the Company’s SEC filings. The Company undertakes no obligation to replace or revise any forward-looking statements, whether or not in consequence of new data, future occasions or in any other case. You are cautioned to not place undue reliance on these forward-looking statements, which communicate solely as of the dates on which they’re made.

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Contacts:        Jeffrey A. Williams, President and CEO (479) 464-9944 or Vickie D. Judy, CFO (479) 464-9944