America's Car-Mart blew past analyst estimates for profits and revenue in its first quarter, with its top executive crediting the results to company efforts to train and keep top employees inside the organization.
Car-Mart reported earnings of $15.5 million or $2.21 a share for the quarter that ended July 31, compared with $10.9 million or $1.53 for the same period last year. An average estimate of five analysts had predicted profits of $1.73 for the quarter, according to Yahoo Finance.
Revenue for the Bentonville buy-here, pay-here used-car dealer was $172 million for the period compared with $164 million for the first quarter of fiscal 2018. According to Yahoo, the average estimate of five analysts pegged revenue at $169.3 million.
Car-Mart shares closed at $90.97, down $2.21 or 2% in trading Thursday on the Nasdaq. Shares have traded as low as $65.10 and as high as $104.05 over the past year.
The news came after markets closed Thursday and the company plans to hold a conference call with analysts this morning.
Jeff Williams, the used-car dealer's president and chief executive officer, said in a release that the company continues to add customers -- almost 1,600 in the first quarter alone. He said the company's success for the quarter and its future plans, hinge on recruiting, training and keeping top talent, in particular in the general manager slot.
The company opened two Arkansas dealerships during the first quarter, one in Conway and one in Bryant, and has plans to open a few more dealerships this year. Car-Mart operates 145 dealerships in Alabama, Arkansas, Georgia, Indiana, Iowa, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee and Texas.
In the first quarter, the number of vehicles Car-Mart sold was nearly flat, with 12,523 sold compared with 12,533 for the same quarter a year go. Car-Mart lots, on average, sold 29 vehicles per lot per month during the period, down from 29.8, a nearly 3% drop from last year. The average sale price per vehicle for the period was $11,410, up 3.6% from the first quarter of 2018.
Net charge-offs stood at 5.4% for the quarter, down from 6.4% for the first quarter a year ago. Charge-offs are an indication of debt that is unlikely to be collected. Car-Mart's customers often do not have access to traditional vehicle financing because of poor credit or no credit history.
Business on 08/16/2019