America's Car-Mart Reports 15% Increase in Diluted Earnings Per Share to $.84 on Revenue Increase of 12.9% to $119 Million

America's Car-Mart Reports 15% Increase in Diluted Earnings Per Share to $.84
on Revenue Increase of 12.9% to $119 Million

BENTONVILLE, Ark., Feb. 18, 2013 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc.
(Nasdaq:CRMT) today announced its operating results for its third fiscal
quarter ended January 31, 2013. During the quarter the Company repurchased
62,160 shares of its common stock for $2.58 million. Since February 1, 2010,
the Company has invested approximately $88 million to repurchase 24.7% of its
outstanding shares under its stock repurchase program.

Highlights of third quarter operating results:

  *Net income of $8.0 million - $.84 per diluted share vs. $.73 per diluted
    share for prior year quarter
  *Revenues of $119 million compared to $105 million for the prior year
    quarter with same store revenue increase of 8.8%
  *Retail unit sales increase of 16% to 10,403 from 8,965 for the prior year
    quarter with productivity increase of 9.2% to 29.4 retail units sold per
    store per month from 26.9 for prior year quarter
  *Average retail sales price decreased $125 or 1.3% from the prior year
    quarter but increased $282, or 3% sequentially
  *Net Charge-offs as a percent of average Finance Receivables of 5.7%, flat
    with prior year quarter
  *Selling, General and Administrative Expenses at 17.7% of sales vs. 18.3%
    for prior year quarter
  *Opened three new dealerships during the quarter - dealership count now at
    120
  *Active accounts base now over 57,000
  *Debt to equity of 56.6% and debt to finance receivables of 30%
  *Allowance for credit losses at 21.5% of finance receivables at January 31,
    2013 and at April 30, 2012

Highlights of nine month operating results:

  *Net income of $23.4 million or $2.43 per diluted share vs. $2.28 per
    diluted share for prior year period (6.6% increase in diluted earnings per
    share)
  *Revenue increase of 7.1% to $339 million from $317 million for the prior
    year period with same store revenue growth of 2.8%
  *Retail unit sales increase of 7.3% to 29,970 from 27,933 for the prior
    year period
  *Strong cash flows supporting the significant increase in revenues and the
    $47 million increase in Finance Receivables, the $8.6 million increase in
    inventory to support higher sales levels, $3.2 million in net capital
    expenditures, and $17.2 million in common stock re-purchases with a $31
    million increase in total debt
  *Provision for credit losses of 23.3% of sales vs. 21.8% for prior year
    period, net charge-offs as a percent of average Finance Receivables up
    slightly to 18.1% compared to 17.7% for prior year period

"We are very pleased with our results for the quarter, and especially so with
the significant increases in sales. As we mentioned after our second quarter,
we had seen some increases in the amount of funding into the sub-prime auto
industry which did create some increased competition that put some pressure on
our sales earlier in the year.In typical fashion, our General Managers
stepped up to the challenge and delivered.Our focus remains solidly fixed on
driving the same mission we have for years; Striving to earn the repeat
business of our customers by providing quality vehicles, affordable payment
terms, and excellent service. Our customers are looking for good, reliable and
affordable transportation along with the peace of mind that goes with dealing
with America's Car-Mart. Our associates take great care of our customers in an
effort to earn their repeat business.This continued focus is allowing us to
excel even with increased competition on the sub-prime used vehicle financing
side," said William H. ("Hank") Henderson, President and Chief Executive
Officer of America's Car-Mart. "We strongly believe that Car-Mart's local
presence and face to face relationships give us the ability to work with
customers most effectively.We offer the best long-term choice for our
customers and we are dedicated to ensuring their success. We have over 57,000
active accounts and many more past customers who know what Car-Mart stands for
and the lengths we go to help them. We are excited about our new locations.We
just opened our first dealership in the state of Georgia, and are looking
forward to continuing to expand into new markets."

"As Hank mentioned, we are very pleased with our top line growth and our
increase in per dealership sales volumes. Our lot managers have really focused
on our repeat customers and retention efforts in the face of some increased
competition. The same store revenue increase of 8.8% was solid and the
performance of our older, more mature dealerships improved significantly from
the prior quarter. As we discussed, in our efforts to retain our long-term
repeat customers, we did have to lengthen overall contract terms. As
anticipated, this has led to lower current collections, but the most important
measurement is net charge-offs which was flat for the quarter and only up
slightly for the nine month period," said Jeff Williams, Chief Financial
Officer of America's Car-Mart. "As expected, higher unit sales resulted in
significant leveraging at the selling, general and administrative line. When
we look to the future we are convinced that the business model will continue
to support significant unit volume expansion. The overall gross profit
percentage was relatively flat with the prior year quarter and in line with
our expectations. All efforts at our dealerships are aimed at ensuring that we
earn repeat business from existing customers and at the same time attracting
new customers in need of good, basic affordable transportation and the great
Car-Mart service that goes with each sale."

"The Company repurchased 62,160 shares of its common stock during the third
quarter. Since February 1, 2010, we have repurchased 2,890,851 shares, or
24.7% of our Company. We believe in the long-term value of our company and we
plan to invest in the repurchase program when favorable conditions are
present. Our first priority for capital allocation will continue to be to
support the healthy growth of the business.Our debt to equity ratio was 56.6%
and our debt to finance receivables ratio was 30% at the end of the quarter,"
added Mr. Williams. "Our balance sheet is very healthy and by staying focused
on cash returns our future is bright."

Conference Call

Management will be holding a conference call on Tuesday, February 19, 2013 at
11:00 a.m. Eastern Time to discuss third quarter results.A live audio of the
conference call will be accessible to the public by calling (877)
776-4031.International callers dial (631) 291-4132.Callers should dial in
approximately 10 minutes before the call begins.A conference call replay will
be available one hour following the call for thirty days and can be accessed
by calling (855) 859-2056 (domestic) or (404) 537-3406 (international),
conference call ID # 97628926.

About America's Car-Mart

America's Car-Mart, Inc. (the "Company") operates 120 automotive dealerships
in ten states and is the largest publicly held automotive retailer in the
United States focused exclusively on the "Integrated Auto Sales and Finance"
segment of the used car market.The Company emphasizes superior customer
service and the building of strong personal relationships with its customers.
The Company operates its dealerships primarily in small cities throughout the
South-Central United States selling quality used vehicles and providing
financing for substantially all of its customers.For more information,
including investor presentations, on America's Car-Mart, please visit our
website at www.car-mart.com.

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995.These forward-looking
statements address the Company's future objectives, plans and goals, as well
as the Company's intent, beliefs and current expectations regarding future
operating performance, and can generally be identified by words such as "may,"
"will," "should," "could, "believe," "expect," "anticipate," "intend," "plan,"
"foresee," and other similar words or phrases.Specific events addressed by
these forward-looking statements include, but are not limited to:

  *new dealership openings;
  *performance of new dealerships;
  *same store revenue growth;
  *future overall revenue growth;
  *the Company's collection results, including but not limited to collections
    during income tax refund periods;
  *repurchases of the Company's common stock;
  *the Company's business and growth strategies.

These forward-looking statements are based on the Company's current estimates
and assumptions and involve various risks and uncertainties.As a result, you
are cautioned that these forward-looking statements are not guarantees of
future performance, and that actual results could differ materially from those
projected in these forward-looking statements.Factors that may cause actual
results to differ materially from the Company's projections include, but are
not limited to:

  *the availability of credit facilities to support the Company's business;
  *the Company's ability to underwrite and collect its accounts effectively,
    including but not limited to collections during income tax refund periods;
  *competition;
  *dependence on existing management;
  *availability of quality vehicles at prices that will be affordable to
    customers;
  *changes in financing laws or regulations; and
  *general economic conditions in the markets in which the Company operates,
    including but not limited to fluctuations in gas prices, grocery prices
    and employment levels.

Additionally, risks and uncertainties that may affect future results include
those described from time to time in the Company's SEC filings. The Company
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.You are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the dates on which they are made.

America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
                                                               
                                              % Change As a % of Sales
                          Three Months Ended   2013    Three Months Ended 
                          January 31,          vs.     January 31,        
                          2013       2012       2012     2013      2012
Operating Data:                                                 
Retail units sold          10,403    8,965     16.0%            
Average number of stores   118       111       6.3              
in operation
Average retail units sold  29.4      26.9      9.2              
per store per month
Average retail sales price $9,797   $9,922   (1.3)            
Same store revenue growth  8.8%       7.9%                        
Net charge-offs as a
percent ofaverage Finance 5.7%       5.7%                        
Receivables
Collections as a percent
of average Finance         13.4%      14.8%                       
Receivables
Average percentage of
Finance                    80.5%      80.0%                       
Receivables-Current (excl.
1-2 day)
Average down-payment       3.9%       4.3%                        
percentage
                                                               
Period End Data:                                                
Stores open                120       111       8.1%             
Accounts over 30 days past 6.0%       4.7%                        
due
Finance Receivables, gross $363,918 $322,353 12.9%            
                                                               
Operating Statement:                                            
Revenues:                                                       
Sales                      $106,215 $93,957  13.0%   100.0%   100.0%
Interest income            12,707    11,408    11.4    12.0     12.1
Total                      118,922   105,365   12.9    112.0    112.1
                                                               
Costs and expenses:                                             
Cost of sales              60,941    54,298    12.2    57.4     57.8
Selling, general and       18,775    17,175    9.3     17.7     18.3
administrative
Provision for credit       25,189    20,899    20.5    23.7     22.2
losses
Interest expense           795       659       20.6    0.7      0.7
Depreciation and           712       594       19.9    0.7      0.6
amortization
Total                      106,412   93,625    13.7    100.2    99.6
                                                               
Income before taxes        12,510    11,740            11.8     12.5
                                                               
Provision for income taxes 4,530     4,436             4.3      4.7
                                                               
Net income                 $7,980   $7,304           7.5      7.8
                                                               
Dividends on subsidiary    $(10)    $(10)                     
preferred stock
                                                               
Net income attributable to $7,970   $7,294                    
common shareholders
                                                               
Earnings per share:                                             
Basic                      $0.88    $0.76                     
Diluted                    $0.84    $0.73                     
                                                               
                                                               
Weighted average number of                                      
shares outstanding:
Basic                      9,017,613 9,610,125                  
Diluted                    9,451,473 9,998,290                  


America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
                                                               
                                               % Change As a % of Sales
                          Nine Months Ended      2013     Nine Months Ended
                          January 31,           vs      January 31,       
                          2013       2012        2012     2013     2012
Operating Data:                                                 
Retail units sold          29,970    27,933     7.3%            
Average number of stores   116       109        6.4             
in operation
Average retail units sold  28.7      28.5       0.8             
per store per month
Average retail sales price $9,635   $9,636    (0.0)           
Same store revenue growth  2.8%       8.3%                        
Net charge-offs as a
percent of average Finance 18.1%      17.7%                       
Receivables
Collections as a percent
of average Finance         42.8%      46.3%                       
Receivables
Average percentage of
Finance                    81.5%      81.1%                       
Receivables-Current (excl.
1-2 day)
Average down-payment       5.8%       6.2%                        
percentage
                                                               
Period End Data:                                                
Stores open                120       111        8.1%            
Accounts over 30 days past 6.0%       4.7%                        
due
Finance Receivables, gross $363,918 $322,353  12.9%           
                                                               
Operating Statement:                                            
Revenues:                                                       
Sales                      $302,706 $284,409  6.4%    100.0%  100.0%
Interest income            36,435    32,287     12.8    12.0    11.4
Total                      339,141   316,696    7.1     112.0   111.4
                                                               
Costs and expenses:                                             
Cost of sales              173,330   163,667    5.9     57.3    57.5
Selling, general and       53,982    50,094     7.8     17.8    17.6
administrative
Provision for credit       70,499    62,056     13.6    23.3    21.8
losses
Interest expense           2,156     1,676      28.6    0.7     0.6
Depreciation and           2,070     1,697      22.0    0.7     0.6
amortization
Total                      302,037   279,190    8.2     99.8    98.2
                                                               
Income before taxes        37,104    37,506             12.3    13.2
                                                               
Provision for income taxes 13,728    14,160             4.5     5.0
                                                               
Net income                 $23,376  $23,346           7.7     8.2
                                                               
Dividends on subsidiary    $(30)    $(30)                     
preferred stock
                                                               
Net income attributable to $23,346  $23,316                   
common shareholders
                                                               
Earnings per share:                                             
Basic                      $2.55    $2.36                     
Diluted                    $2.43    $2.28                     
                                                               
                                                               
Weighted average number of                                      
shares outstanding:
Basic                      9,142,296 9,886,100                  
Diluted                    9,593,854 10,219,796                 


America's Car-Mart, Inc.
Consolidated Balance Sheet and Other Data
(Dollars in Thousands)
                                                                  
                                                       January 31, April 30,
                                                       2013        2012
                                                                  
Cash and cash equivalents                               $865      $276
Finance receivables, net                                $288,352  $251,103
Inventory                                               $35,868   $27,242
Total assets                                            $360,064  $310,940
Total debt                                              $109,274  $77,900
Treasury stock                                          $94,490   $77,242
Stockholders' equity                                    $193,002  $184,473
Shares outstanding                                      9,013,774  9,378,346
                                                                  
                                                                  
                                                                  
Finance receivables:                                               
Principal balance                                       $363,918  $316,934
Deferred revenue - payment protection plan             $(12,359) (10,745)
Allowance for credit losses                             (75,566)   (65,831)
                                                                  
Finance receivables, net of allowance & deferred        $275,993  $240,358
revenue
                                                                  
                                                                  
Allowance as % of net principal balance                 21.5%       21.5%
                                                                  
                                                                  
                                                                  
Changes in allowance for credit losses:                            
                                                       Nine Months Ended
                                                       January 31,
                                                       2013        2012
Balance at beginning of year                            $65,831   $60,173
Provision for credit losses                             70,499     62,056
Net charge-offs                                         (60,764)   (53,521)
                                                                  
Balance at end of period                                $75,566   $68,708

CONTACT: William H. ("Hank") Henderson, CEO
         (479) 464-9944
         Jeffrey A. Williams, CFO
         (479) 418-8021

America's Car-Mart Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.