Used Car News

America's Car-Mart Inc. announced another quarter of strong returns.

For the three months ended Jan. 31, revenues increased to $83.8 million compared with $73.5 million in the same period of the prior year.

Income for the quarter was $6.3 million, versus $3.6 million in the same period last year. Retail unit sales increased 11.8 percent, with 7,824 vehicles sold in the current quarter, compared to 6,996 in the same period last year.

Same-store revenue increased 11 percent for the quarter.

The provision for credit losses was 21.7 percent of sales compared to 22.4 percent in the same period last year. Net charge-offs as a percentage of average finance receivables was 5.7 percent compared to 6.0 percent in the same period last year.

Gross profit on vehicle sales was 44.0 percent for the quarter compared to 43.1 percent for the prior year quarter. Finance Receivables grew by $7.9 million during the quarter or 3.1 percent. The allowance for credit losses is 22 percent of Finance Receivables principal balance at both Jan. 31, 2010 and 2009.

"We are extremely pleased with our results, and, absent some weather related issues that hit us especially hard at the very end of our third quarter, the results would have even been better." said William H. ("Hank") Henderson, Car-Mart's CEO. "We anticipate that the negative weather effects during the third quarter will simply push some activity into our fourth quarter this year and will not result in ultimate lost sales. Our associates continue to raise the bar in serving our customers and these efforts are showing up with the top and bottom line growth we are experiencing"