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America's CarMart Inc (CRMT) filed Quarterly Report for the period ended 2011-10-31.
America's Carmart Inc has a market cap of $364 million; its shares were traded at around $37.12 with a P/E ratio of 12.9 and P/S ratio of 0.9. America's Carmart Inc had an annual average earning growth of 23.9% over the past 10 years.
This is the annual revenues and earnings per share of CRMT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CRMT.
Highlight of Business Operations:
Car-Mart has been operating since 1981. Car-Mart has grown its revenues between 3% and 21% per year over the last ten fiscal years (average 14%). Growth results from same dealership revenue growth and the addition of new dealerships. Revenue increased 15.3% for the first six months of fiscal 2012 compared to the same period of fiscal 2011 due primarily to a 12.2% increase in retail units sold, a 3.0% increase in average retail sales price, 15.5% increase in interest income and a $1.0 million increase in wholesale sales.The Company s primary focus is on collections. Each dealership is responsible for its own collections with supervisory involvement of the corporate office. Over the last five full fiscal years, the Company s credit losses as a percentage of sales have ranged between approximately 20.2% in fiscal 2010 and 29.1% in fiscal 2007 (average of 22.7%). Credit losses in fiscal 2007 (29.1%) were higher than the Company s average over the last five years. Credit losses were higher due to several factors and included higher losses experienced in most of the dealerships, including mature dealerships, as the Company saw weakness in the performance of its portfolio as customers had difficulty making payments under the terms of their contracts. Additionally, the Company s rapid growth put stress on its infrastructure, leading to operational difficulties resulting in higher losses. Credit losses in fiscal 2008 returned to a more historical level at 22% of sales as the Company continued to focus on its operational initiatives, including credit and collections efforts. In fiscal 2009, the Company saw the benefit of continuing operational improvements despite negative macro-economic factors and experienced a reduction in credit losses to 21.5% of sales. Improvements in credit losses continued into fiscal 2010 and fiscal 2011 as the provision for credit losses were 20.2% and 20.8% of sales, respectively. While the first six months of fiscal 2012 experienced slightly higher credit losses of 21.6% of sales compared to 21.1% of sales for the prior year period, the credit losses for the first six months of fiscal 2012 were in line with historical experience and within an acceptable range.
Revenues increased by $19.0 million, or 20.7%, for the three months ended October 31, 2011 as compared to the same period in the prior fiscal year. The increase was principally the result of (i) revenue growth from dealerships that operated a full three months in both periods ($12.5 million, or 13.7%), (ii) revenue growth from dealerships opened during the three months ended October 31, 2010 ($1.4 million), and (iii) revenue from dealerships opened after October 31, 2010 ($5.1 million).
Revenues increased by $28.0 million, or 15.3%, for the six months ended October 31, 2011 as compared to the same period in the prior fiscal year. The increase was principally the result of (i) revenue growth from stores that operated a full six months in both periods ($15.4 million, or 8.5%), (ii) revenue growth from stores opened during the six months ended October 31, 2010 and stores that opened or closed a satellite location after October 31, 2010 ($4.0 million), and (iii) revenue from stores opened after October 31, 2010 ($8.6 million).
Interest expense (excluding the non-cash charge related to the change in fair value of the Agreement) as a percentage of sales decreased 0.4% to 0.5% for the six months ended October 31, 2011 from 0.9% for the same period of the prior fiscal year. The decrease was attributable to lower interest rates on the Company s variable rate debt partially offset by higher average borrowings during the six months ended October 31, 2011 as compared to the same period in the prior fiscal year ($63.3 million compared to $45.5 million).
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