10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2013

Or

[]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number:  0-14939

AMERICA’S CAR-MART, INC.

(Exact name of registrant as specified in its charter)

Texas	63-0851141
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

802 Southeast Plaza Ave., Suite 200, Bentonville, Arkansas 72712

(Address of principal executive offices) (zip code)

(479) 464-9944

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ý  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o                                                    Accelerated filer ý

Non-accelerated filer o                                                      Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Title of Each Class	Outstanding at August 28, 2013
Common stock, par value $.01 per share	9,015,929

Part I.  FINANCIAL INFORMATION

Item 1.  Financial Statements America’s Car-Mart, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands except share and per share amounts)

	July 31, 2013			April 30, 2013
Assets:
Cash and cash equivalents	$	288		$	272
Accrued interest on finance receivables		1,973			1,784
Finance receivables, net		301,112			288,049
Inventory		31,722			32,827
Prepaid expenses and other assets		2,311			2,407
Income taxes receivable, net		-			2,390
Goodwill		355			355
Property and equipment, net		31,149			30,181
Total Assets	$	368,910		$	358,265
Liabilities, mezzanine equity and equity:
Liabilities:
Accounts payable	$	9,226		$	8,832
Deferred payment protection plan revenue		13,371			12,910
Accrued liabilities		16,414			16,125
Income taxes payable, net		1,690			-
Deferred tax liabilities, net		18,133			18,167
Revolving credit facilities		99,497			99,563
Total liabilities		158,331			155,597
Commitments and contingencies
Mezzanine equity:
Mandatorily redeemable preferred stock		400			400
Equity:
Preferred stock, par value $.01 per share, 1,000,000 shares authorized; none issued or outstanding		-			-
Common stock, par value $.01 per share, 50,000,000 shares authorized; 12,418,318 and 12,414,659 issued at July 31, 2013 and April 30, 2013,  respectively, of which 9,017,929 and 9,023,290 were outstanding at July 31, 2013 and April 30, 2013, respectively		124			124
Additional paid-in capital		54,096			53,332
Retained earnings		250,790			243,259
Less:  Treasury stock, at cost, 3,400,389 and 3,391,369 shares at July 31, 2013 and April 30, 2013, respectively		(94,931	)		(94,547	)
Total stockholders' equity		210,079			202,168
Non-controlling interest		100			100
Total equity		210,179			202,268
Total Liabilities, Mezzanine Equity and Equity	$	368,910		$	358,265

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Condensed Consolidated Statements of Operations America’s Car-Mart, Inc.

(Unaudited)

(Dollars in thousands except share and per share amounts)

	Three Months Ended  July 31,
	2013			2012
Revenues:
Sales	$	109,149		$	98,297
Interest and other income		13,395			11,703
Total revenue		122,544			110,000
Costs and expenses:
Cost of sales, excluding depreciation shown below		62,789			56,185
Selling, general and administrative		19,647			17,856
Provision for credit losses		26,530			21,663
Interest expense		790			653
Depreciation and amortization		777			662
Loss on disposal of property and equipment		41			-
Total costs and expenses		110,574			97,019
Income before taxes		11,970			12,981
Provision for income taxes		4,429			4,863
Net income	$	7,541		$	8,118
Less:  Dividends on mandatorily redeemable preferred stock		(10	)		(10	)
Net income attributable to common stockholders	$	7,531		$	8,108
Earnings per share:
Basic	$	0.83		$	0.87
Diluted	$	0.79		$	0.83
Weighted average number of shares outstanding:
Basic		9,020,228			9,304,743
Diluted		9,492,852			9,752,069

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Condensed Consolidated Statements of Cash Flows America’s Car-Mart, Inc.

(Unaudited)

(In thousands)

	Three Months Ended July 31,
Operating Activities:	2013			2012
Net income	$	7,541		$	8,118
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Provision for credit losses		26,530			21,663
Losses on claims for payment protection plan		1,790			1,484
Depreciation and amortization		777			662
Amortization of debt issuance costs		73			46
Loss on disposal of property and equipment		41			-
Stock based compensation		644			807
Deferred income taxes		(34	)		277
Change in operating assets and liabilities:
Finance receivable originations		(102,834	)		(90,953	)
Finance receivable collections		51,069			48,279
Accrued interest on finance receivables		(189	)		(153	)
Inventory		11,487			8,571
Prepaid expenses and other assets		23			141
Accounts payable and accrued liabilities		(236	)		(1,615	)
Deferred payment protection plan revenue		461			557
Income taxes, net		4,085			3,301
Excess tax benefit from share based compensation		(5	)		-
Net cash provided by operating activities		1,223			1,185
Investing Activities:
Purchase of property and equipment		(1,786	)		(925	)
Net cash used in investing activities		(1,786	)		(925	)
Financing Activities:
Exercise of stock options and warrants		36			-
Excess tax benefit from share based compensation		5			-
Issuance of common stock		79			69
Purchase of common stock		(384	)		(9,417	)
Dividend payments		(10	)		(10	)
Debt issuance costs		(200	)		-
Change in cash overdrafts		919			1,713
Proceeds from revolving credit facilities		73,996			77,420
Payments on revolving credit facilities		(73,862	)		(70,112	)
Net cash provided by (used in) financing activities		579			(337	)
Increase (Decrease) in cash and cash equivalents		16			(77	)
Cash and cash equivalents, beginning of period		272			276
Cash and cash equivalents, end of period	$	288		$	199

The accompanying notes are an integral part of these condensed consolidated financial statements

4

Notes to Consolidated Financial Statements (Unaudited) America’s Car-Mart, Inc.

A – Organization and Business

America’s Car-Mart, Inc., a Texas corporation (the “Company”), is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market.  References to the Company typically include the Company’s consolidated subsidiaries.  The Company’s operations are principally conducted through its two operating subsidiaries, America’s Car Mart, Inc., an Arkansas corporation (“Car-Mart of Arkansas”), and Colonial Auto Finance, Inc., an Arkansas corporation (“Colonial”).  Collectively, Car-Mart of Arkansas and Colonial are referred to herein as “Car-Mart.”  The Company primarily sells older model used vehicles and provides financing for substantially all of its customers. Many of the Company’s customers have limited financial resources and would not qualify for conventional financing as a result of limited credit histories or past credit problems.  As of July 31, 2013, the Company operated 126 dealerships located primarily in small cities throughout the South-Central United States.

B – Summary of Significant Accounting Policies

General

The accompanying condensed consolidated balance sheet as of April 30, 2013, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of July 31, 2013 and 2012, have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q in Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended July 31, 2013 are not necessarily indicative of the results that may be expected for the year ending April 30, 2014.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended April 30, 2013.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries.  All intercompany accounts and transactions have been eliminated.

Segment Information

Each dealership is an operating segment with its results regularly reviewed by the Company’s chief operating decision maker in an effort to make decisions about resources to be allocated to the segment and to assess its performance. Individual dealerships meet the aggregation criteria under the current accounting guidance.  The Company operates in the Integrated Auto Sales and Finance segment of the used car market.  In this industry, the nature of the sale and the financing of the transaction, financing processes, the type of customer and the methods used to distribute the Company’s products and services, including the actual servicing of the contracts as well as the regulatory environment in which the Company operates, all have similar characteristics.  Each of our individual dealerships is similar in nature and only engages in the selling and financing of used vehicles.  All individual dealerships have similar operating characteristics.  As such, individual dealerships have been aggregated into one reportable segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period.  Actual results could differ from those estimates.

5

Concentration of Risk

The Company provides financing in connection with the sale of substantially all of its vehicles.  These sales are made primarily to customers residing in Alabama, Arkansas, Georgia, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, and Texas, with approximately 37% of revenues resulting from sales to Arkansas customers.  Periodically, the Company maintains cash in financial institutions in excess of the amounts insured by the federal government.

Restrictions on Distributions/Dividends

The Company’s revolving credit facilities generally limit distributions by the Company to its shareholders in order to repurchase the Company’s common stock.  The distribution limitations under the Agreement allow the Company to repurchase the Company’s stock so long as: either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available. Thus, the Company is limited in the amount of dividends or other distributions it can make to its shareholders without the consent of the Company’s lenders.

Cash Equivalents

The Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents.

Finance Receivables, Repossessions and Charge-offs and Allowance for Credit Losses

The Company originates installment sale contracts from the sale of used vehicles at its dealerships.  These installment sale contracts carry interest rates ranging from 11% to 19% using the simple effective interest method including any deferred fees.  Contract origination costs are not significant.  The installment sale contracts are not pre-computed contracts whereby buyers are obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the contract.  Finance receivables are collateralized by vehicles sold and consist of contractually scheduled payments from installment contracts net of unearned finance charges and an allowance for credit losses.  Unearned finance charges represent the balance of interest receivable to be earned over the entire term of the related installment contract, less the earned amount ($2.0 million at July 31, 2013 and $1.8 million at April 30, 2013), and as such, has been reflected as a reduction to the gross contract amount in arriving at the principal balance in finance receivables. An account is considered delinquent when a contractually scheduled payment has not been received by the scheduled payment date.  While the Company does not formally place contracts on nonaccrual status, the immaterial amount of interest that may accrue after an account becomes delinquent up until the point of resolution via repossession or write-off, is reserved for against the accrued interest on the Consolidated Balance Sheets. Delinquent contracts are addressed and either made current by the customer, which is the case in most situations, or the vehicle is repossessed or written off, if the collateral cannot be recovered quickly. Customer payments are set to match their pay-day with over 75% of payments due on either a weekly or bi-weekly basis. The frequency of the payment due dates combined with the declining value of collateral lead to prompt resolutions on problem accounts.  Accounts are delinquent when the customer is one day or more behind on their contractual payments.  At July 31, 2013, 5.4% of the Company’s finance receivable balances were 30 days or more past due compared to 4.0% at July 31, 2012.

Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders.  Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit.

The Company works very hard to keep its delinquency percentages low, and not to repossess vehicles.  Accounts one day late are sent a notice in the mail.  Accounts three days late are contacted by telephone.  Notes from each telephone contact are electronically maintained in the Company’s computer system.  If a customer becomes severely delinquent in his or her payments, and management determines that timely collection of future payments is not probable, the Company will take steps to repossess the vehicle.  The Company attempts to resolve payment delinquencies amicably prior to repossessing a vehicle.  Periodically, the Company enters into contract modifications with its customers to extend the payment terms.  The Company only enters into a contract modification or extension if it believes such action will increase the amount of monies the Company will ultimately realize on the customer’s account. At the time of modification, the Company expects to collect amounts due including accrued interest at the contractual interest rate for the period of delay. Other than the extension of additional time, concessions are not granted to customers at the time of modifications. Modifications are minor and are made for pay-day changes, minor vehicle repairs and other reasons.  For those vehicles that are repossessed, the majority are returned or surrendered by the customer on a voluntary basis.  Other repossessions are performed by Company personnel or third party repossession agents.  Depending on the condition of a repossessed vehicle, it is either resold on a retail basis through a Company dealership, or sold for cash on a wholesale basis primarily through physical and/or on-line auctions.

6

The Company takes steps to repossess a vehicle when the customer becomes delinquent in his or her payments and management determines that timely collection of future payments is not probable.  Accounts are charged-off after the expiration of a statutory notice period for repossessed accounts, or when management determines that the timely collection of future payments is not probable for accounts where the Company has been unable to repossess the vehicle.  For accounts with respect to which the vehicle was repossessed, the fair value of the repossessed vehicle is charged as a reduction of the gross finance receivable balance charged-off.  On average, accounts are approximately 71 days past due at the time of charge-off.  For previously charged-off accounts that are subsequently recovered, the amount of such recovery is credited to the allowance for credit losses.

The Company maintains an allowance for credit losses on an aggregate basis, as opposed to a contract-by-contract basis, at an amount it considers sufficient to cover estimated losses inherent in the portfolio at the balance sheet date in the collection of its finance receivables currently outstanding.  The Company accrues an estimated loss as it is probable that the entire amount will not be collected and the amount of the loss can be reasonably estimated in the aggregate.  The allowance for credit losses is based primarily upon historical credit loss experience, with consideration given to recent credit loss trends and changes in contract characteristics (i.e., average amount financed and term), delinquency levels, collateral values, economic conditions and underwriting and collection practices.  The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations.  Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes that it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses.

The calculation of the allowance for credit losses uses the following primary factors:

·   The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time.

·   The average net repossession and charge-off loss per unit during the last eighteen months, segregated by the number of months since the contract origination date, and adjusted for the expected future average net charge-off loss per unit.  Approximately 50% of the charge-offs that will ultimately occur in the portfolio are expected to occur within 10-11 months following the contract origination date.  The average age of an account at charge-off date is 10.8 months.

·   The timing of repossession and charge-off losses relative to the date of sale (i.e., how long it takes for a repossession or charge-off to occur) for repossessions and charge-offs occurring during the last eighteen months.

A point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors to arrive at an overall reserve amount that management considers to be a reasonable estimate of incurred losses inherent in the portfolio at the balance sheet date that will be realized via actual charge-offs in the future.  Periods of economic downturn do not necessarily lead to increased credit losses because the Company provides basic affordable transportation to customers that, for the most part, do not have access to public transportation.  The effectiveness of the execution of internal policies and procedures within the collections area has historically had a more significant effect on collection results than macro-economic issues.

In most states, the Company offers retail customers who finance their vehicle the option of purchasing a payment protection plan product as an add-on to the installment sale contract.  This product contractually obligates the Company to cancel the remaining principal outstanding for any contract where the retail customer has totaled the vehicle, as defined, or the vehicle has been stolen.  The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred payment protection plan revenues, an additional liability is recorded for such difference.  No such liability was required at July 31, 2013 or April 30, 2013.

7

Inventory

Inventory consists of used vehicles and is valued at the lower of cost or market on a specific identification basis.  Vehicle reconditioning costs are capitalized as a component of inventory.  Repossessed vehicles and trade-in vehicles are recorded at fair value, which approximates wholesale value.  The cost of used vehicles sold is determined using the specific identification method.

Goodwill

Goodwill reflects the excess of purchase price over the fair value of specifically identified net assets purchased.  Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests at the Company’s year-end. The impairment tests are based on the comparison of the fair value of the reporting unit to the carrying value of such unit. If the fair value of the reporting unit falls below its carrying value, the Company performs the second step of the two-step goodwill impairment process to determine the amount, if any, that the goodwill is impaired.  The second step involves determining the fair value of the identifiable assets and liabilities and the implied goodwill.  The implied goodwill is compared to the carrying value of the goodwill to determine the impairment, if any.    There was no impairment of goodwill during fiscal 2013, and to date, there has been none in fiscal 2014.

Property and Equipment

Property and equipment are stated at cost.  Expenditures for additions, renewals and improvements are capitalized.  Costs of repairs and maintenance are expensed as incurred.  Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the lease period.  The lease period includes the primary lease term plus any extensions that are reasonably assured. Depreciation is computed principally using the straight-line method generally over the following estimated useful lives:

Furniture, fixtures and equipment	3 to 7 years
Leasehold improvements	5 to 15 years
Buildings and improvements	18 to 39 years

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying values of the impaired assets exceed the fair value of such assets.  Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Cash Overdraft

As checks are presented for payment from the Company’s primary disbursement bank account, monies are automatically drawn against cash collections for the day and, if necessary, are drawn against one of its revolving credit facilities.  Any cash overdraft balance principally represents outstanding checks, net of any deposits in transit that as of the balance sheet date had not yet been presented for payment.

Deferred Sales Tax

Deferred sales tax represents a sales tax liability of the Company for vehicles sold on an installment basis in the states of Alabama and Texas.  Under Alabama and Texas law, for vehicles sold on an installment basis, the related sales tax is due as the payments are collected from the customer, rather than at the time of sale.

Income Taxes

Income taxes are accounted for under the liability method.  Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates expected to apply in the years in which these temporary differences are expected to be recovered or settled. The quarterly provision for income taxes is determined using an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and the Company’s best estimate of nontaxable and nondeductible items of income and expense.

Occasionally, the Company is audited by taxing authorities.  These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law.  However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes.

8

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.  For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.  The Company applies this methodology to all tax positions for which the statute of limitations remains open.

The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions.  Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before fiscal 2010.

In fiscal 2010, the Internal Revenue Service (“IRS”) completed the examinations of the Company’s income tax returns for fiscal years 2008 and 2009.  As a result of the examinations, the IRS questioned whether deferred payment protection plan (“PPP”) revenue associated with the sale of certain receivables are subject to the acceleration of advance payments provision of the Internal Revenue Code and whether the Company may deduct losses on the sale of the PPP receivables in excess of the income recognized on the underlying contracts.  The issue was timing in nature and did not affect the overall tax provision, but affected the timing of required tax payments.

In January 2013, the Company received approval for a negotiated settlement with the IRS related to the examinations for income tax returns for fiscal years 2008 and 2009.  The negotiated settlement resulted in additional taxable income and a resulting tax payment for the exam period.  The question related to the timing of income recognition and therefore the additional income recognized in 2008 and 2009 will result in a corresponding tax deduction and resulting refund in the following fiscal year.  Under the settlement the Company paid an immaterial amount of interest to the IRS related to the additional tax payment.

The IRS is currently auditing the Company’s federal income tax returns for fiscal years 2010 and 2011.

The Company’s policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accrued penalties or interest as of July 31, 2013 or April 30, 2013.

Revenue Recognition

Revenues are generated principally from the sale of used vehicles, which in most cases includes a service contract and a payment protection plan product, interest income and late fees earned on finance receivables.  Revenues are net of taxes collected from customers and remitted to government agencies.  Cost of vehicle sales include costs incurred by the Company to prepare the vehicle for sale including license and title costs, gasoline, transport services and repairs.

Revenues from the sale of used vehicles are recognized when the sales contract is signed, the customer has taken possession of the vehicle and, if applicable, financing has been approved.  Revenues from the sale of service contracts are recognized ratably over the service contract period.  Service contract revenues are included in sales and the related expenses are included in cost of sales.  Payment protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” interest method over the life of the contract so that revenues are recognized in proportion to the amount of cancellation protection provided.  Payment protection plan revenues are included in sales and related losses are included in cost of sales as incurred.  Interest income is recognized on all active finance receivable accounts using the simple effective interest method.  Active accounts include all accounts except those that have been paid-off or charged-off.

9

Sales consist of the following:

	Three Months Ended July 31,
(In thousands)	2013		2012
Sales – used autos	$	97,306	$	86,884
Wholesales – third party		4,463		4,835
Service contract sales		3,914		3,524
Payment protection plan revenue		3,466		3,054
Total	$	109,149	$	98,297

Revenues from late fees were approximately $535,000 and $461,000 for the three months ended July 31, 2013 and 2012, respectively. Late fees are recognized when collected and are reflected in interest and other income.  Finance receivables more than 90 days past due were approximately $1.7 million and $638,000 at July 31, 2013 and 2012, respectively.

Earnings per Share

Basic earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period.  Diluted earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period plus dilutive common stock equivalents.  The calculation of diluted earnings per share takes into consideration the potentially dilutive effect of common stock equivalents, such as outstanding stock options and non-vested restricted stock, which if exercised or converted into common stock would then share in the earnings of the Company.  In computing diluted earnings per share, the Company utilizes the treasury stock method and anti-dilutive securities are excluded.

Stock-based compensation

The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant over the requisite service period.  The Company uses the Black Scholes option pricing model to determine the fair value of stock option awards.  The Company may issue either new shares or treasury shares upon exercise of these awards.  Stock-based compensation plans, related expenses and assumptions used in the Black Scholes option pricing model are more fully described in Note I.

Treasury Stock

The Company purchased 9,020 shares of its common stock during the first three months of fiscal 2014 for a total cost of $384,000 and 215,846 shares for a total cost of $9.4 million during the first three months of fiscal 2013.  Treasury stock may be used for issuances under the Company’s stock-based compensation plans or for other general corporate purposes.

Recent Accounting Pronouncements

Occasionally, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies which the Company adopts as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards which are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

10

C – Finance Receivables

The Company originates installment sale contracts from the sale of used vehicles at its dealerships.  These installment sale contracts typically include interest rates ranging from 11% to 19% per annum, are collateralized by the vehicle sold and typically provide for payments over periods ranging from 18 to 36 months.  The weighted average interest rate for the portfolio was approximately 14.9% at July 31, 2014.  The Company’s finance receivables are aggregated as one class of loans, which is sub-prime consumer automobile contracts.  The level of risks inherent in the Company’s financing receivables is managed as one homogeneous pool.  The components of finance receivables are as follows:

(In thousands)	July 31, 2013			April 30, 2013
Gross contract amount	$	433,605		$	414,614
Less unearned finance charges		(53,685	)		(51,220	)
Principal balance		379,920			363,394
Less allowance for credit losses		(78,808	)		(75,345	)
Finance receivables, net	$	301,112		$	288,049

Changes in the finance receivables, net are as follows:

	Three Months Ended July 31,
(In thousands)	2013			2012
Balance at beginning of period	$	288,049		$	251,103
Finance receivable originations		102,834			90,953
Finance receivable collections		(51,069	)		(48,279	)
Provision for credit losses		(26,530	)		(21,663	)
Losses on claims for payment protection plan		(1,790	)		(1,484	)
Inventory acquired in repossession and payment protection plan claims		(10,382	)		(9,200	)
Balance at end of period	$	301,112		$	261,430

Changes in the finance receivables allowance for credit losses are as follows:

	Three Months Ended July 31,
(In thousands)	2013				2012
Balance at beginning of period		$	75,345			$	65,831
Provision for credit losses			26,530				21,663
Charge-offs, net of recovered collateral			(23,067	)			(18,989	)
Balance at end of period		$	78,808			$	68,505

The factors which influenced management’s judgment in determining the amount of the additions to the allowance charged to provision for credit losses are described below:

The level of actual charge-offs, net of recovered collateral, is the most important factor in determining the charges to the provision for credit losses. This is due to the fact that once a contract becomes delinquent the account is either made current by the customer, the vehicle is repossessed or the account is written off if the collateral cannot be recovered.  Net charge-offs as a percentage of average finance receivables increased 5% to 6.2% for the first three months ended July 31, 2013 compared to 5.9% for the same period in the prior year.  The increase in net charge-offs for the first three months of fiscal 2014 resulted primarily from the increased severity of losses due in part to overall wholesale price decreases coupled with the effect of overall longer contract terms partially resulting from the increased sales prices and lower down payments.  Higher sales volumes, lower collections and the shift in the relative age of the dealerships also had the effect of higher additions to the allowance charged to the provision for the first three months of fiscal 2014.

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Collections and delinquency levels can have a significant effect on additions to the allowance and are reviewed frequently.  Collections as a percentage of average finance receivables were 13.8% for the three months ended July 31, 2013 compared to 14.9% for the prior year period.  The decrease in collections as a percentage of average finance receivables was primarily due to the increase in the average term, higher contract modifications and more delinquent accounts for the first three months of fiscal 2014 as compared to the first three months of the prior year.  Delinquencies greater than 30 days were 5.4% for July 31, 2013 and 4.0% at July 31, 2012.

Macro-economic factors as well as proper execution of operational policies and procedures have a significant effect on additions to the allowance charged to the provision. Higher unemployment levels, higher gasoline prices and higher prices for staple items can potentially have a significant effect.  While overall macro-economic factors were still somewhat unfavorable during the first three months of fiscal 2014, the Company continues to focus on operational improvements within the collections area as well as market share gains and governmental stimulus funds directly benefitting most of the Company’s customers which can be a positive factor in the Company’s collection efforts.

Credit quality information for finance receivables is as follows:

(Dollars in thousands)	July 31, 2013						April 30, 2013						July 31, 2012
	Principal Balance			Percent of Portfolio			Principal Balance			Percent of Portfolio			Principal Balance			Percent of Portfolio
Current		$	295,971		77.91	%		$	284,441		78.27	%		$	259,012		78.50	%
3 - 29 days past due			63,260		16.65	%			60,477		16.64	%			57,575		17.45	%
30 - 60 days past due			14,326		3.77	%			10,232		2.82	%			9,968		3.02	%
61 - 90 days past due			4,680		1.23	%			6,280		1.73	%			2,742		0.83	%
> 90 days past due			1,683		0.44	%			1,964		0.54	%			638		0.20	%
Total		$	379,920		100.00	%		$	363,394		100.00	%		$	329,935		100.00	%

Accounts one and two days past due are considered current for this analysis, due to the varying payment dates and variation in the day of the week at each period end.  Delinquencies may vary from period to period based on the average age of the portfolio, seasonality within the calendar year, the day of the week and overall economic factors.  The above categories are consistent with internal operational measures used by the Company to monitor credit results.  The Company believes that the increase in the past due percentages can be attributed in part to the continuing challenging macroeconomic environment our customers are facing.

Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders.  Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit.  The Company monitors contract term length, down payment percentages, and collections for credit quality indicators.

	Three Months Ended July 31,
	2013			2012
Principal collected as a percent of average finance receivables		13.8	%		14.9	%
Average down-payment percentage		6.6	%		7.2	%

	July 31, 2013		July 31, 2012
Average originating contract term (in months)		27.7		26.7
Portfolio weighted average contract term, including modifications (in months)		29.5		28.1

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The decrease in the principal collected as a percent of average finance receivables is primarily attributed to higher delinquencies, the longer average contract term and the increase in contract modifications when compared to this time last year.  The increases in contract term are primarily related to our efforts to keep our payments affordable, for competitive reasons and to continue to work more with our customers when they experience financial difficulties.  In order to remain competitive our term lengths may continue to increase some into the future.

D – Property and Equipment

A summary of property and equipment is as follows:

(In thousands)	July 31, 2013			April 30, 2013
Land	$	6,211		$	6,211
Buildings and improvements		10,873			10,715
Furniture, fixtures and equipment		10,269			9,956
Leasehold improvements		16,648			15,874
Construction in progress		1,706			1,246
Less accumulated depreciation and amortization		(14,558	)		(13,821	)
	$	31,149		$	30,181

E – Accrued Liabilities

A summary of accrued liabilities is as follows:

(In thousands)	July 31, 2013		April 30, 2013
Employee compensation	$	4,073	$	5,227
Cash overdrafts (see Note B)		2,456		1,537
Deferred service contract revenue (see Note B)		3,629		3,464
Deferred sales tax (see Note B)		2,604		2,436
Interest		226		237
Other		3,426		3,224
	$	16,414	$	16,125

F – Debt Facilities

A summary of revolving credit facilities is as follows:

(In thousands)
		Aggregate	Interest			Balance at
		Amount	Rate	Maturity		July 31, 2013	April 30, 2013
Revolving credit facilities	$	145,000	LIBOR + 2.25%	June 2016	$	99,497	$	99,563

( 2.44% at July 31, 2013 and 2.70% at April 30, 2013)

On March 9, 2012, the Company entered into an Amended and Restated Loan and Security Agreement (“Credit Facilities”) with a group of lenders providing revolving credit facilities totaling $125 million.  On September 20, 2012, the Credit Facilities were amended to increase the total revolving commitment to $145 million.  On February 4, 2013, the Company entered into an amendment to the Credit Facilities to amend the definition of eligible vehicle contracts to include contracts with 36-42 month terms. On June 24, 2013, the Credit Facilities were amended to extend the term to June 2016, provided the option to request revolver commitment increases for up to an additional $55 million and provided for a 0.25% decrease in each of the three pricing tiers for determining the applicable interest rate.

The revolving credit facilities are collateralized primarily by finance receivables and inventory, are cross collateralized and contain a guarantee by the Company.  Interest is payable monthly under the revolving credit facilities. The Credit Facilities provide for three pricing tiers for determining the applicable interest rate, based on the Company’s consolidated leverage ratio for the preceding fiscal quarter. The current applicable interest rate under the Credit Facilities is generally LIBOR plus 2.25%.  The Credit Facilities contains various reporting and performance covenants including (i) maintenance of certain financial ratios and tests, (ii) limitations on borrowings from other sources, (iii) restrictions on certain operating activities and (iv) limitations on the payment of dividends or distributions.

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The distribution limitations under the Credit Facilities allow the Company to repurchase the Company’s stock so long as: either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available.

The Company was in compliance with the covenants at July 31, 2013.  The amount available to be drawn under the credit facilities is a function of eligible finance receivables and inventory. Based upon eligible finance receivables and inventory at July 31, 2013, the Company had additional availability of $42 million under the revolving credit facilities.

The Company incurred debt issuance costs of approximately $200,000 and $42,000 in connection with the amendments to the credit facilities in June 2013 and September 2012, respectively.  The Company recognized $73,000 and $46,000 of amortization for the three months ended July 31, 2013 and July 31, 2012, respectively, related to debt issuance costs.  The amortization is reflected as interest expense in the Company’s Consolidated Statements of Operations.

G – Fair Value Measurements

The table below summarizes information about the fair value of financial instruments included in the Company’s financial statements at July 31, 2013 and April 30, 2013:

	July 31, 2013				April 30, 2013
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash	$	288	$	288	$	272	$	272
Finance receivables, net		301,112		237,450		288,049		227,121
Accounts payable		9,226		9,226		8,832		8,832
Revolving credit facilities		99,497		99,497		99,563		99,563

Because no market exists for certain of the Company’s financial instruments, fair value estimates are based on judgments and estimates regarding yield expectations of investors, credit risk and other risk characteristics, including interest rate and prepayment risk.  These estimates are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision.  Changes in assumptions could significantly affect these estimates.  The methodology and assumptions utilized to estimate the fair value of the Company’s financial instruments are as follows:

Financial Instrument	Valuation Methodology
Cash	The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument.
Finance receivables, net	The Company estimated the fair value of its receivables at what a third party purchaser might be willing to pay. The Company has had discussions with third parties and has bought and sold portfolios, and  had a third party appraisal  in November 2012 that indicates a 37.5% discount to face would be a reasonable fair value in a negotiated third party transaction.  The sale of finance receivables from Car-Mart of Arkansas to Colonial is at a 37.5% discount. For financial reporting purposes these sale transactions are eliminated. Since the Company does not intend to offer the receivables for sale to an outside third party, the expectation is that the net book value at July 31, 2013, will be ultimately collected. By collecting the accounts internally the Company expects to realize more than a third party purchaser would expect to collect with a servicing requirement and a profit margin included.
Accounts payable	The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument.
Revolving credit facilities	The fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently.

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H – Weighted Average Shares Outstanding

Weighted average shares of common stock outstanding, which are used in the calculation of basic and diluted earnings per share, are as follows:

	Three Months Ended July 31,
	2013		2012
Weighted average shares outstanding-basic		9,020,228		9,304,743
Dilutive options and restricted stock		472,624		447,326
Weighted average shares outstanding-diluted		9,492,852		9,752,069
Antidilutive securities not included:
Options		60,000		35,000

I – Stock Based Compensation

The Company has stock based compensation plans available to grant non-qualified stock options, incentive stock options and restricted stock to employees, directors and certain advisors of the Company.  The stock based compensation plans currently being utilized are the 2007 Stock Option Plan (“2007 Plan”) and the Stock Incentive Plan (“Incentive Plan”).    The Company recorded total stock based compensation expense for all plans of $644,000 ($406,000 after tax effects) and $807,000 ($504,000 after tax effects) for the three months ended July 31, 2013 and 2012, respectively.  Tax benefits were recognized for these costs at the Company’s overall effective tax rate.

Stock Options

The Company has options outstanding under two stock option plans approved by the shareholders, the 1997 Stock Option Plan (“1997 Plan”) and the 2007 Plan. While previously granted options remain outstanding, no additional option grants may be made under the 1997 Plan.  The shareholders of the Company approved an amendment to the Company’s 2007 Plan on October 13, 2010. The amendment increased from 1,000,000 to 1,500,000 the number of options to purchase our common stock that may be issued under the 2007 Plan.  The 2007 Plan provides for the grant of options to purchase shares of the Company’s common stock to employees, directors and certain advisors of the Company at a price not less than the fair market value of the stock on the date of grant and for periods not to exceed ten years. Options granted under the Company’s stock option plans expire in the calendar years 2013 through 2023.

	1997 Plan			2007 Plan
Minimum exercise price as a percentage of fair market value at date of grant		100	%		100	%
Last expiration date for outstanding options	July 2, 2017			May 6, 2023
Shares available for grant at July 31, 2013		-			367,500

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The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions in the table below.

	July 31, 2013			July 31, 2012
Expected term (years)		5.0			5.0
Risk-free interest rate		0.67	%		0.82	%
Volatility		50	%		50	%
Dividend yield		—			—

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior.  The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date.  Volatility is based on historical volatility of the Company’s common stock.  The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

There were 25,000 and 30,000 options granted during the three months ended July 31, 2013 and 2012, respectively. The grant-date fair value of options granted during the three months ended July 31, 2013 and 2012 was $487,000 and $592,000, respectively. The options were granted at fair market value on date of grant.

Stock option compensation expense on a pre-tax basis was $604,000 ($381,000 after tax effects) and $764,000 ($478,000 after tax effects) for the three months ended July 31, 2013 and 2012, respectively.

The aggregate intrinsic value of outstanding options at July 31, 2013 and 2012 was $24.8 million and $28.4 million, respectively.

As of July 31, 2013, the Company had $1.3 million of total unrecognized compensation cost related to unvested options.  These unvested outstanding options have a weighted-average remaining vesting period of 1.4 years.

The Company had the following options exercised for the periods indicated.  The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows.

	Three Months Ended July 31,
(Dollars in thousands)	2013			2012
Options Exercised			1,500			-
Cash Received from Option Exercises		$	35		$	-
Intrinsic Value of Options Exercised		$	34		$	-

Stock Incentive Plan

The shareholders of the Company approved an amendment to the Company’s Stock Incentive Plan on October 14, 2009. The amendment increased from 150,000 to 350,000 the number of shares of common stock that may be issued under the Stock Incentive Plan.  For shares issued under the Stock Incentive Plan, the associated compensation expense is generally recognized equally over the vesting periods established at the award date and is subject to the employee’s continued employment by the Company.

There were no restricted shares granted during the first three months of fiscal 2014 or fiscal 2013.  A total of 187,027 shares remained available for award at July 31, 2013.There were 23,500 unvested shares at July 31, 2013 with a weighted average grant date fair value of $23.66.

The Company recorded compensation cost of $26,000 ($16,000 after tax effects) and $31,000 ($19,000 after tax effects) related to the Stock Incentive Plan during the three months ended July 31, 2013 and 2012, respectively.

As of July 31, 2013, the Company has $169,000 of total unrecognized compensation cost related to unvested awards granted under the Stock Incentive Plan, which the Company expects to recognize over a weighted-average remaining period of 1.6 years.

There were no modifications to any of the Company’s outstanding share-based payment awards during fiscal 2013 or during the first three months of fiscal 2014.

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J - Supplemental Cash Flow Information

Supplemental cash flow disclosures are as follows:

	Three Months Ended July 31,
(in thousands)	2013		2012
Supplemental disclosures:
Interest paid	$	801	$	665
Income taxes paid, net		378		1,286
Non-cash transactions:
Inventory acquired in repossession and payment protection plan claims		10,382		9,200

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Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the Company's consolidated financial statements and notes thereto appearing elsewhere in this report.

Forward-Looking Information

This Quarterly Report on Form 10-Q 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 revenue growth;

·   future credit losses;

·   the Company’s collection results, including but not limited to collections during income tax refund periods;

·   investment in development of workforce;

·   gross margin percentages;

·   financing the majority of growth from profits;

·   seasonality;

·   having adequate liquidity to satisfy its capital needs

·   compliance with tax regulations; and

·   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 contracts effectively;

·   competition;

·   dependence on existing management;

·   availability of quality vehicles at prices that will be affordable to customers;

·   changes in consumer finance laws or regulations, including but not limited to rules and regulations that could be enacted by federal and state governments;

·   the outcome of pending tax audits; 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.

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.

Overview

America’s Car-Mart, Inc., a Texas corporation (the “Company”), is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market.  References to the Company typically include the Company’s consolidated subsidiaries.  The Company’s operations are principally conducted through its two operating subsidiaries, America’s Car Mart, Inc., an Arkansas corporation (“Car-Mart of Arkansas”), and Colonial Auto Finance, Inc., an Arkansas corporation (“Colonial”).  Collectively, Car-Mart of Arkansas and Colonial are referred to herein as “Car-Mart”.  The Company primarily sells older model used vehicles and provides financing for substantially all of its customers. Many of the Company’s customers have limited financial resources and would not qualify for conventional financing as a result of limited credit histories or past credit problems.  As of July 31, 2013, the Company operated 126 dealerships located primarily in small cities throughout the South-Central United States.

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Car-Mart has been operating since 1981.  Car-Mart has grown its revenues between 3% and 16% per year over the last ten fiscal years (average 12%).  Growth results from same dealership revenue growth and the addition of new dealerships.  Revenue increased 11.4% for the first three months of fiscal 2014 compared to the same period of fiscal 2013 due primarily to a 9.1% increase in retail units sold and a 14.5% increase in interest income.  The average retail sales price also increased 2.6% to $9,836 for the first three months of fiscal 2014 from $9,584 for the first three months of fiscal 2013.

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 fiscal years, the Company’s credit losses as a percentage of sales have ranged between approximately 20.2% in fiscal 2010 and 23.1% in fiscal 2013 (average of 21.3%).  In fiscal 2009, the Company saw the benefit of operational improvements despite negative macro-economic factors and experienced credit losses of 21.5% of sales.  Improvements in credit losses continued into fiscal 2010 as the provision for credit losses was 20.2 % of sales for the year ended April 30, 2010.  The Company experienced credit losses of 20.8% of sales for fiscal 2011 and 21.1% of sales for fiscal 2012.  In fiscal 2011 the higher credit losses primarily related to credit losses during the second fiscal quarter as the Company did experience some modest operational difficulties.  In fiscal 2012 the Company experienced slightly higher credit losses; however, the losses were within the range of credit losses that the Company targets annually.  Credit losses as a percentage of sales in fiscal 2013 increased to 23.1% primarily due to increased contract term lengths and lower down payments resulting from increased competitive pressures as well as higher charge-offs which resulted, to an extent, from negative macro-economic factors affecting the Company’s customer base.  Credit losses as a percentage of sales for the first three months of fiscal 2014 were 24.3% compared to 22.0% of sales for the prior year period, resulting from lower finance receivable collections and higher charge-offs along with the effect of lower wholesale sales.

The Company continues to make improvements to its business practices, including better underwriting and better collection procedures. Negative macro-economic issues sometimes can have, but do not always lead to higher credit loss results for the Company because the Company provides basic affordable transportation which in many cases is not a discretionary expenditure for customers. The Company has installed a proprietary credit scoring system which enables the Company to monitor the quality of contracts. Corporate office personnel monitor proprietary credit scores and work with dealerships when the distribution of scores falls outside of prescribed thresholds.  Additionally, the Company has increased its investment in the corporate infrastructure within the collections area, including the hiring of a Director of Collection Practices and Review.  This position provides more timely oversight and provides additional accountability on a consistent basis. In addition, the Company now has several Collection Specialists who assist the Director of Collection Practices and Review with monitoring and training efforts.  Also, turnover at the dealership level for collections positions is down compared to historical levels, which management believes has a positive effect on collection results. The Company believes that the proper execution of its business practices is the single most important determinant of credit loss experience.

Historically, credit losses, on a percentage basis, tend to be higher at new and developing dealerships than at mature dealerships.  Generally, this is the case because the management at new and developing dealerships tends to be less experienced in making credit decisions and collecting customer accounts and the customer base is less seasoned.  Normally the older, more mature dealerships have more repeat customers and on average, repeat customers are a better credit risk than non-repeat customers.  The Company does believe that higher energy and fuel costs, general inflation and potentially lower personal income levels affecting customers can have a negative impact on collections.  Additionally, increased competition for used vehicle financing can have, and is currently having,   a negative effect on collections and charge-offs.

The Company’s gross margins as a percentage of sales have been fairly consistent from year to year. Over the last five fiscal years, the Company’s gross margins as a percentage of sales have ranged between approximately 42% and 44%. Gross margin as a percentage of sales for fiscal 2013 was 42.5%. The Company’s gross margins are based upon the cost of the vehicle purchased, with lower-priced vehicles typically having higher gross margin percentages. Gross margins in recent years have been negatively affected by the increase in the average retail sales price (a function of a higher purchase price) and higher operating costs, mostly related to increased vehicle repair costs and higher fuel costs. Additionally, the percentage of wholesale sales to retail sales, which relate for the most part to repossessed vehicles sold at or near cost, can have a significant effect on overall gross margins.  Annual gross margin percentages over the five-year period peaked in fiscal 2010 partially as a result of higher retail sales levels and a strong wholesale market for repossessed vehicles due to overall used vehicle supply shortages.  The gross margin percentage in fiscal 2011 and fiscal 2012 was negatively affected by higher wholesale sales, increased average retail selling price, higher inventory repair costs and lower margins on the payment protection plan and service contract products. Gross margin improved slightly in fiscal 2013 due to improved wholesale results partially offset by higher losses under the payment protection plan.  For the first quarter of fiscal 2014, the gross margin as a percentage of sales was 42.5% down slightly from 42.8% for the first quarter of fiscal 2013.  The Company expects that its gross margin percentage will not change significantly in the near term from the current level (42% range).

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Hiring, training and retaining qualified associates are critical to the Company’s success.  The rate at which the Company adds new dealerships and is able to implement operating initiatives is limited by the number of trained managers and support personnel the Company has at its disposal.  Excessive turnover, particularly at the dealership manager level, could impact the Company’s ability to add new dealerships and to meet operational initiatives.  The Company has added resources to recruit, train, and develop personnel, especially personnel targeted to fill dealership manager positions.  The Company expects to continue to invest in the development of its workforce.

Consolidated Operations

(Operating Statement Dollars in Thousands)

							% Change			As a % of Sales
	Three Months Ended July 31,						2013 vs.			Three Months Ended July 31,
	2013			2012			2012			2013			2012
Revenues:
Sales	$	109,149		$	98,297			11.0	%		100.0	%		100.0	%
Interest income		13,395			11,703			14.5			12.3			11.9
Total		122,544			110,000			11.4			112.3			111.9
Costs and expenses:
Cost of sales, excluding depreciation shown below		62,789			56,185			11.8			57.5			57.2
Selling, general and administrative		19,647			17,856			10.0			18.0			18.2
Provision for credit losses		26,530			21,663			22.5			24.3			22.0
Interest expense		790			653			21.0			0.7			0.7
Depreciation and amortization		777			662			17.4			0.7			0.7
Loss on disposal of property and equipment		41			-			-			-			-
Total		110,574			97,019			14.0			101.3			98.7
Pretax income	$	11,970		$	12,981			(7.8	) %		11.0	%		13.2	%
Operating Data:
Retail units sold		10,643			9,753
Average stores in operation		125			115
Average units sold per store per month		28.4			28.3
Average retail sales price	$	9,836		$	9,584
Same store revenue change		5.6	%		5.5	%
Period End Data:
Stores open		126			116
Accounts over 30 days past due		5.4	%		4.0	%

Three Months Ended July 31, 2013 vs. Three Months Ended July 31, 2012

Revenues increased by $12.5 million, or 11.4%, for the three months ended July 31, 2013 as compared to the same period in the prior fiscal year.  The increase was principally the result of (i) a revenue increase from dealerships that operated a full three months in both periods ($6.2 million, or 5.6%), (ii) revenue growth from dealerships opened during the three months ended July 31, 2012 ($1.2 million), and (iii) revenue from dealerships opened after July 31, 2012 ($5.1 million).

Cost of sales as a percentage of sales increased 0.3% to 57.5% for the three months ended July 31, 2013 from 57.2% in the same period of the prior fiscal year. The increase from the prior year period relates primarily to higher inventory repair costs.  The average retail sales price for the first quarter of fiscal 2014 increased $252 from the first quarter of fiscal 2013.  The Company will continue to focus efforts on minimizing the average retail sales price in order to help keep the contract terms shorter, which helps customers to maintain appropriate equity in their vehicles. The consumer demand for vehicles the Company purchases for resale remains high.  This high demand has been exacerbated by the recent increases in funding to the used vehicle financing market and by the overall decrease in new car sales during the recession when compared to pre-recession levels.  Both the supply of vehicles as well as the availability of funding to the used vehicle finance market can result in higher purchase costs for the Company.  Recent increases in new car sales have had a positive effect on purchase costs.  Average selling prices and top line sales levels in relation to wholesale volumes, resulting from credit loss experience, can have a significant effect on gross margin percentages.

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Selling, general and administrative expenses as a percentage of sales were 18.0% for the three months ended July 31, 2013, a decrease of 0.2% from the same period of the prior fiscal year.  In dollar terms, overall selling, general and administrative expenses increased $1.8 million in the first quarter of fiscal 2014 compared to the same period of the prior fiscal year, consisting primarily of increased payroll costs, incremental costs at new dealerships as well as higher marketing and advertising costs.

Provision for credit losses as a percentage of sales increased to 24.3% for the three months ended July 31, 2013 compared to 22.0% for the three months ended July 31, 2012.  The increase as a percentage of sales was partially the result of the lower collections as a percentage of average finance receivables as well as higher charge-offs and lower wholesale sales levels.  Net charge-offs as a percentage of average finance receivables was 6.2% for the three months ended July 31, 2013 compared to 5.9% for the prior year quarter.  The increase primarily resulted from the severity of losses due in part to overall wholesale price decreases coupled with the longer terms.  The Company has implemented several operational initiatives for the collections area and continues to push for improvements and better execution of its collection practices. However, the extended negative macro-economic issues are expected to continue to put pressure on our customers and the resulting collections of our finance receivables.  The Company believes that the proper execution of its business practices is the single most important determinant of credit loss experience.

Interest expense for the three months ended July 31, 2013 as a percentage of sales remained constant at 0.7% compared to the three months ended July 31, 2012.   The increase in interest expense resulted from higher average borrowings during the three months ended July 31, 2013 ($100.2 million compared to $82.1 million in the prior year), which were partially offset by lower interest rates on the Company’s variable rate debt.

Financial Condition

The following table sets forth the major balance sheet accounts of the Company as of the dates specified (in thousands):

	July 31, 2013		April 30, 2013
Assets:
Finance receivables, net	$	301,112	$	288,049
Inventory		31,722		32,827
Property and equipment, net		31,149		30,181
Liabilities:
Accounts payable and accrued liabilities		25,640		24,957
Deferred payment protection plan revenue		13,371		12,910
Income taxes payable (receivable), net		1,690		(2,390	)
Deferred tax liabilities, net		18,133		18,167
Debt facilities		99,497		99,563

Historically, finance receivables tended to grow slightly faster than revenue growth.  This has been historically due, to a large extent, to an increasing weighted average term necessitated by increases in the average retail sales price over recent years.  The weighted average term for installment sales contracts at July 31, 2013 increased as compared to July 31, 2012 (29.5 months vs. 28.1 months).  Benefits related to software and operational changes made in an effort to shorten relative terms by maximizing up-front equity and scheduling payments to coincide with anticipated income tax refunds have helped maintain the overall term length in the face of the increasing average retail sales prices.  However, in response to current competitive and economic conditions, the Company is making some structural changes to its customer contracts which include increases to the overall length of contract terms. Revenue growth results from same store revenue growth and the addition of new dealerships.  The Company currently anticipates going forward that the growth in finance receivables will be higher than overall revenue growth on an annual basis due to the overall term length increases partially offset by improvements in underwriting and collection procedures.

During the first three months of fiscal 2014, inventory decreased 3.4% ($1.1 million) as compared to inventory at April 30, 2013.  The Company strives to offer a broad mix and sufficient quantities of vehicles to adequately serve its expanding customer base. The Company will continue to manage inventory levels in the future to ensure adequate supply, in volume and mix, and to meet anticipated sales demand.

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Property and equipment, net, increased $968,000 during the three months ended July 31, 2013 as compared to property and equipment, net, at April 30, 2013 as the Company incurred expenditures related to new dealerships as well as to refurbish and expand existing locations.

Accounts payable and accrued liabilities increased $683,000 during the first three months of fiscal 2014 as compared to Accounts payable and accrued liabilities at April 30, 2013 due primarily to the amount and timing of cash overdrafts and the increase related to higher expenditures for cost of goods sold and selling, general and administrative costs.

Income taxes payable, net, increased $4.1 million at July 31, 2013 as compared to April 30, 2013 as the tax payments for the first quarter 2014 were not due until after the end of the quarter and the receivable existing at April 30, 2013 has not been received.

Deferred tax liabilities, net remained relatively constant at July 31, 2013 as compared to April 30, 2013 due primarily to the increase in finance receivables offset by increases in deferred tax assets related to deferred payment protection plan revenue.

Borrowings on the Company’s revolving credit facilities fluctuate primarily based upon a number of factors including (i) net income, (ii) finance receivables changes, (iii) income taxes, (iv) capital expenditures and (v) common stock repurchases.  Historically, income from continuing operations, as well as borrowings on the revolving credit facilities, have funded the Company’s finance receivables growth, capital asset purchases and common stock repurchases.  In the first three months of fiscal 2014, the Company funded finance receivables growth of $16.5 million, capital expenditures of $1.8 million and common stock repurchases of $384,000 with no increase in its debt facilities.

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Liquidity and Capital Resources

The following table sets forth certain summarized historical information with respect to the Company’s Statements of Cash Flows (in thousands):

	Three Months Ended July 31,
	2013			2012
Operating activities:
Net income	$	7,541		$	8,118
Provision for credit losses		26,530			21,663
Losses on claims for payment protection plan		1,790			1,484
Depreciation and amortization		777			662
Stock based compensation		644			807
Finance receivable originations		(102,834	)		(90,953	)
Finance receivable collections		51,069			48,279
Inventory		11,487			8,571
Accounts payable and accrued liabilities		(236	)		(1,615	)
Deferred payment protection plan revenue		461			557
Income taxes, net		4,080			3,301
Deferred income taxes		(34	)		277
Accrued interest on finance receivables		(189	)		(153	)
Other		137			187
Total		1,223			1,185
Investing activities:
Purchase of property and equipment		(1,786	)		(925	)
Total		(1,786	)		(925	)
Financing activities:
Debt facilities, net		(66	)		7,308
Change in cash overdrafts		919			1,713
Purchase of common stock		(384	)		(9,417	)
Dividend payments		(10	)		(10	)
Exercise of stock options and warrants, including
tax benefits and issuance of common stock		120			69
Total		579			(337	)
Increase (decrease) in Cash	$	16		$	(77	)

The primary drivers of operating profits and cash flows include (i) top line sales (ii) interest rates on finance receivables, (iii) gross margin percentages on vehicle sales, and (iv) credit losses, a significant portion of which relates to the collection of principal on finance receivables. The Company generates cash flow from income from operations.  Historically, most or all of this cash is used to fund finance receivables growth, capital expenditures and common stock repurchases.  To the extent finance receivables growth, capital expenditures and common stock repurchases exceed income from operations generally the Company increases its borrowings under its revolving credit facilities.  The majority of the Company’s growth has been self-funded.

Cash flows from operations for the three months ended July 31, 2013 compared to the same period in the prior fiscal year were negatively impacted by (i) an increase in finance receivables, (ii) lower net income and (iii) a decrease in deferred income taxes, partially offset by (iv) higher non-cash charges including credit losses, depreciation, and losses on claims for payment protection plan and (v) higher values for inventory acquired in repossession and payment protection plan claims.  Finance receivables, net, increased by $13.1 million from April 30, 2013 to July 31, 2013.

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The purchase price the Company pays for a vehicle has a significant effect on liquidity and capital resources. Several external factors can negatively affect the purchase cost of vehicles. Decreases in the overall volume of new car sales, particularly domestic brands, leads to decreased supply in the used car market. Also, expansions or constrictions in consumer credit, as well as general economic conditions, can have an overall effect on the demand for the type of vehicle the Company purchases for resale. Because the Company bases its selling price on the purchase cost for the vehicle, increases in purchase costs result in increased selling prices. As the selling price increases, it becomes more difficult to keep the gross margin percentage and contract term in line with historical results because the Company’s customers have limited incomes and their car payments must remain affordable within their individual budgets. The Company has seen increases in the purchase cost of vehicles and resulting increases in selling prices over the last several years.   Management does expect a continuing tight supply of vehicles and a resulting pressure for increases in vehicle purchase costs although there has been some recent relief as a result of an increase in new car sales. The Company has devoted significant efforts to improve its purchasing processes to ensure adequate supply at appropriate prices. This is expected to result in gross margin percentages generally in the 42% range in the near term with overall contract terms increasing due in part to competitive pressures, somewhat mitigated by software and operational changes which have been made to structure seasonal payments during income tax refund periods.  In an effort to ensure an adequate supply of vehicles at appropriate prices, the Company has increased the level of accountability for its purchasing agents including the establishment of sourcing and pricing guidelines.  Additionally, the Company is expanding its purchasing territories to larger cities in close proximity to its dealerships and increasing its efforts to purchase vehicles from individuals at the dealership level as well as via the internet.

The Company believes that the amount of credit available for the sub-prime auto industry has increased recently and management expects the availability of consumer credit within the automotive industry to be higher over the near term when compared to recent history and that this will contribute to overall increases in demand for most, if not all, of the vehicles the Company purchases for resale.  Increased competition resulting from availability of funding to the sub-prime auto industry has contributed to lower down payments and longer terms, which have had a negative effect on collection percentages, liquidity and credit losses when compared to prior periods.

Macro-economic factors can have an effect on credit losses and resulting liquidity. General inflation, particularly within staple items such as groceries and gasoline, as well as overall unemployment levels can have a significant effect on collection results and ultimately credit losses. The Company has made improvements to its business processes within the last few years to strengthen controls and provide stronger infrastructure to support its collections efforts. The Company anticipates that credit losses on a near term going-forward basis will be somewhat higher than historical ranges.  Significant negative macro-economic effects as well as competitive pressures could cause actual results to differ from the anticipated range.  Management continues to focus on improved execution at the dealership level, specifically as related to working individually with its customers concerning collection issues.

The Company has generally leased the majority of the properties where its dealerships are located.  As of July 31, 2013, the Company leased approximately 80% of its dealership properties.  The Company expects to continue to lease the majority of the properties where its dealerships are located.

The Company’s revolving credit facilities generally limit distributions by the Company to its shareholders in order to repurchase the Company’s common stock.  The distribution limitations under these facilities allow the Company to repurchase the Company’s stock so long as either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available. Thus, the Company is limited in the amount of dividends or other distributions it can make to its shareholders without the consent of the Company’s lenders.

At July 31, 2013, the Company had $288,000 of cash on hand and an additional $42 million of availability under its revolving credit facilities (see Note F to the Consolidated Financial Statements).  On a short-term basis, the Company’s principal sources of liquidity include income from operations and borrowings under its revolving credit facilities.  On a longer-term basis, the Company expects its principal sources of liquidity to consist of income from operations and borrowings under revolving credit facilities and/or fixed interest term loans.  The Company’s revolving credit facilities mature in June 2016 and the Company expects that it will be able to renew or refinance its revolving credit facilities on or before the date they mature.  Furthermore, while the Company has no specific plans to issue debt or equity securities, the Company believes, if necessary, it could raise additional capital through the issuance of such securities.

The Company expects to use cash to (i) grow its finance receivables portfolio,  (ii) purchase property and equipment of approximately $6 million in the next 12 months in connection with refurbishing existing dealerships and adding new dealerships, (iii) repurchase shares of common stock when favorable conditions exist and (iv) reduce debt to the extent excess cash is available.  Potential future changes to the structuring of customer contracts could have the effect of reducing the level of capital allocated to our stock repurchase program when compared to levels in recent history.

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The Company believes it will have adequate liquidity to continue to grow its revenues and to satisfy its capital needs for the foreseeable future.

Contractual Payment Obligations

There have been no material changes outside of the ordinary course of business in the Company’s contractual payment obligations from  those reported at April 30, 2013 in the Company’s Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

   The Company has entered into operating leases for approximately 80% of its dealerships and office facilities.  Generally these leases are for periods of three to five years and usually contain multiple renewal options.  The Company uses leasing arrangements to maintain flexibility in its dealership locations and to preserve capital.  The Company expects to continue to lease the majority of its dealerships and office facilities under arrangements substantially consistent with the past.

   Other than its operating leases, the Company is not a party to any off-balance sheet arrangement that management believes is reasonably likely to have a current or future effect on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Related Finance Company Contingency

   Car-Mart of Arkansas and Colonial do not meet the affiliation standard for filing consolidated income tax returns, and as such they file separate federal and state income tax returns.  Car-Mart of Arkansas routinely sells its finance receivables to Colonial at what the Company believes to be fair market value and is able to take a tax deduction at the time of sale for the difference between the tax basis of the receivables sold and the sales price.  These types of transactions, based upon facts and circumstances, have been permissible under the provisions of the Internal Revenue Code as described in the Treasury Regulations.  For financial accounting purposes, these transactions are eliminated in consolidation and a deferred tax liability has been recorded for this timing difference.   The sale of finance receivables from Car-Mart of Arkansas to Colonial provides certain legal protection for the Company’s finance receivables and, principally because of certain state apportionment characteristics of Colonial, also has the effect of reducing the Company’s overall effective state income tax rate by approximately 230 basis points.  The actual interpretation of the Regulations is in part a facts and circumstances matter.  The Company believes it satisfies the material provisions of the Regulations. Failure to satisfy those provisions could result in the loss of a tax deduction at the time the receivables are sold and have the effect of increasing the Company’s overall effective income tax rate as well as the timing of required tax payments.

In fiscal 2010, the Internal Revenue Service (“IRS”) concluded the examinations of the Company’s income tax returns for fiscal years 2008 and 2009.  As a result of the examinations, the IRS questioned whether deferred payment protection plan (“PPP”) revenue associated with the sale of certain receivables are subject to the acceleration of advance payments provision of the Internal Revenue Code and whether the Company may deduct losses on the sale of the PPP receivables in excess of the income recognized on the underlying contracts.  The issue was timing in nature and did not affect the overall tax provision, but affected the timing of required tax payments.

In January 2013, the Company received approval for a negotiated settlement with the IRS related to the examinations for income tax returns for fiscal years 2008 and 2009.  The negotiated settlement resulted in additional taxable income and a resulting tax payment for the exam period.  The question related to the timing of income recognition and therefore the additional income recognized in 2008 and 2009 will result in a corresponding tax deduction and resulting refund in the following fiscal year.  Under the settlement the Company paid an immaterial amount of interest to the IRS related to the additional tax payment.

The IRS is currently auditing the federal income tax returns for fiscal years 2010 and 2011 for the Company.

The Company’s policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accrued penalties and/or interest as of July 31, 2013.

Critical Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires the Company to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from the Company’s estimates.  The Company believes the most significant estimate made in the preparation of the accompanying Condensed Consolidated Financial Statements relates to the determination of its allowance for credit losses, which is discussed below.  The Company’s accounting policies are discussed in Note B to the accompanying Condensed Consolidated Financial Statements.

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The Company maintains an allowance for credit losses on an aggregate basis at an amount it considers sufficient to cover estimated losses in the collection of its finance receivables.  At July 31, 2013, the weighted average total contract term was 29.5 months with 21.5 months remaining. The reserve amount in the allowance for credit losses at July 31, 2013, $78.8 million, was 21.5% of the principal balance in finance receivables of $379.9 million, less unearned payment protection plan revenue of $13.4 million. The estimated reserve amount is the Company’s anticipated future net charge-offs for losses incurred through the balance sheet date. The allowance takes into account historical credit loss experience (both timing and severity of losses), with consideration given to recent credit loss trends and changes in contract characteristics (i.e., average amount financed, months outstanding at loss date, term and age of portfolio), delinquency levels, collateral values, economic conditions and underwriting and collection practices. The allowance for credit losses is reviewed at least quarterly by management with any changes reflected in current operations.  The calculation of the allowance for credit losses uses the following primary factors:

·   The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time.

·   The average net repossession and charge-off loss per unit during the last eighteen months segregated by the number of months since the contract origination date and adjusted for the expected future average net charge-off loss per unit.  About 50% of the charge-offs that will ultimately occur in the portfolio are expected to occur within 10-11 months following the contract origination date.  The average age of an account at charge-off date is 10.8 months.

·   The timing of repossession and charge-off losses relative to the date of sale (i.e., how long it takes for a repossession or charge-off to occur) for repossessions and charge-offs occurring during the last eighteen months.

A point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors to arrive at an overall reserve amount that management considers to be a reasonable estimate of losses inherent in the portfolio at the balance sheet date that will be realized via actual charge-offs in the future. Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes that it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses.  Periods of economic downturn do not necessarily lead to increased credit losses because the Company provides basic affordable transportation to customers that, for the most part, do not have access to public transportation.  The effectiveness of the execution of internal policies and procedures within the collections area has historically had a more significant effect on collection results than macro-economic issues. A 1% change, as a percentage of Finance receivables, in the allowance for credit losses would equate to an approximate pre-tax change of $3.7 million.

Recent Accounting Pronouncements

Occasionally, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies which the Company adopts as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards which are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

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Seasonality

The Company’s third fiscal quarter (November through January) was historically the slowest period for vehicle sales. Conversely, the Company’s first and fourth fiscal quarters (May through July and February through April) were historically the busiest times for vehicle sales. Therefore, the Company generally realized a higher proportion of its revenue and operating profit during the first and fourth fiscal quarters. However, during recent fiscal years, tax refund anticipation sales have begun in early November and continued through January (the Company’s third fiscal quarter). The success of the tax refund anticipation sales effort has led to higher sales levels during the third fiscal quarters and the Company expects this trend to continue in future periods.  However, a shift in the timing of actual tax refund dollars in the Company’s markets shifted sales and collections from the third to the fourth quarter in fiscal 2011, fiscal 2012 and fiscal 2013 and is expected to have a similar effect in future years. If conditions arise that impair vehicle sales during the first, third or fourth fiscal quarters, the adverse effect on the Company’s revenues and operating results for the year could be disproportionately large.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to market risk on its financial instruments from changes in interest rates.  In particular, the Company has exposure to changes in the prime interest rate of its lender.  The Company does not use financial instruments for trading purposes.  The Company has in the past entered into an interest rate swap agreement to manage interest rate risk; however, as of July 31, 2013, the Company has no interest rate swap agreement in effect.  

Interest rate risk. The Company’s exposure to changes in interest rates relates primarily to its debt obligations.  The Company is exposed to changes in interest rates as a result of its revolving credit facilities, and the interest rates charged to the Company under its credit facilities fluctuate based on its primary lender’s base rate of interest.  The Company had total indebtedness of $99.5 million outstanding at July 31, 2013. The impact of a 1% increase in interest rates on this amount of debt would result in increased annual interest expense of approximately $1.0 million and a corresponding decrease in net income before income tax.

The Company’s earnings are impacted by its net interest income, which is the difference between the income earned on interest-bearing assets and the interest paid on interest-bearing notes payable.  The Company’s finance receivables generally bear interest at fixed rates ranging from 11% to 19%, while its revolving credit facilities contain variable interest rates that fluctuate with market interest rates.  Prior to June 2009, interest rates charged on finance receivables originated in the State of Arkansas were limited to the federal primary credit rate plus 5%.  Typically, the Company had charged interest on its Arkansas contracts at or near the maximum rate allowed by law.  Thus, while the interest rates charged on the Company’s contracts do not fluctuate once established, new contracts originated in Arkansas were set at a spread above the federal primary credit rate which does fluctuate. Effective June 26, 2009, the Company began charging 12% on contracts originated in Arkansas. This was due to the passage by the U.S. Congress of the Supplemental Appropriations Act of 2009 which was signed into law on June 24, 2009. Within this legislation was a provision that allowed the Company to charge up to 17% on sales financed to customers in Arkansas, which expired via a sunset clause on December 31, 2010.  On November 2, 2010, voters in Arkansas approved a state constitutional amendment to allow up to 17% interest for non-bank loans and contracts in the state effectively making the Federal legislation permanent.  Subsequently, an appeal challenging the constitutionality of the amendment was filed with the Arkansas Supreme Court.  In June 2011, the Arkansas Supreme Court upheld the amendment.  In mid-July 2011, the Company began charging a fixed 15% interest rate on new contracts for all dealerships in all states in which the Company operates.  At July 31, 2013, approximately 38% of the Company’s finance receivables were originated in Arkansas.

Item 4.  Controls and Procedures

a)   Evaluation of Disclosure Controls and Procedures

Based on management’s evaluation (with the participation of the Company’s Chief Executive Officer and Chief Financial Officer), as of July 31, 2013, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), are effective to provide reasonable assurance that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure.

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b)   Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 4T. Controls and Procedures

Not applicable

PART II

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

The Company is authorized to repurchase up to one million shares of its common stock under the common stock repurchase program last amended and approved by the Board of Directors on August 16, 2012.  The following table sets forth information with respect to purchases made by or on behalf of the Company of shares of the Company’s common stock during the periods indicated:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
May 1, 2013 through May 31, 2013		0	$	0.00		0		861,308
June 1, 2013 through June 31, 2013		9,020	$	42.57		9,020		852,288
July 1, 2013 through July 31, 2013		0	$	0.00		0		852,288
Total		9,020	$	42.57		9,020		852,288

(1)  The above described stock repurchase program has no expiration date.

Item 4.  Mine Safety Disclosure

Not applicable

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Exhibit Number Description of Exhibit

3.1	Articles of Incorporation of the Company, as amended. (Incorporated by reference to Exhibits 4.1-4.8 to the Company's Registration Statement on Form S-8 filed with the SEC on November 16, 2005 (File No. 333-129727)).
3.2	Amended and Restated Bylaws of the Company dated December 4, 2007.  (Incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2007 filed with the SEC on December 7, 2007).
4.1	Amended and Restated Loan and Security Agreement dated March 9, 2012, among America’s Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America’s Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with Bank of America N.A., as Administrative Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 12, 2012).
4.2	Amendment No. 1 to Amended and Restated Loan and Security Agreement dated September 20, 2012, among America’s Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America’s Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with Bank of America N.A., as Administrative Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K filed with the SEC on September 21, 2012).
4.3	Amendment No. 2 to Amended and Restated Loan and Security Agreement dated February 4, 2013, among America’s Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America’s Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with Bank of America N.A., as Administrative Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 4.8 to the Company’s Quarterly Report on Form 10-Q for the quarter ended January 31, 2013 filed with the SEC on March 1, 2013).
4.4	Amendment No. 3 to Amended and Restated Loan and Security Agreement dated June 24, 2013, among America’s Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America’s Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with Bank of America N.A., as Administrative Agent, Lead Arranger and Book Manager.  (Incorporated by reference to Exhibit 4.4 to the Company’s Current Report on Form 8-K filed with the SEC on June 28, 2013).
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.
32.1	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

29

101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

America’s Car-Mart, Inc.

By:      \s\ William H. Henderson

William H. Henderson

Chief Executive Officer

(Principal Executive Officer)

By:      \s\ Jeffrey A. Williams

Jeffrey A. Williams

Chief Financial Officer and Secretary

(Principal Financial and Accounting Officer)

Dated: August 30, 2013

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EX-31.1

Exhibit 31.1

Certification

I, William H. Henderson, certify that:

1.I have reviewed this quarterly report on Form 10-Q of America’s Car-Mart, Inc. for the period ended July 31, 2013;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 30, 2013	\s\ William H. Henderson
	William H. Henderson
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Jeffrey A. Williams, certify that:

1.I have reviewed this quarterly report on Form 10-Q of America’s Car-Mart, Inc. for the period ended July 31, 2013;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 30, 2013	\s\ Jeffrey A. Williams
	Jeffrey A. Williams
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of America’s Car-Mart, Inc. (the “Company”) on Form 10-Q for the quarter ended July 31, 2013 filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, William H. Henderson, Chief Executive Officer of the Company, and Jeffrey A. Williams, Chief Financial Officer of the Company, certify in our capacities as officers of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

(1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:           \s\ William H. Henderson

William H. Henderson

Chief Executive Officer

August 30, 2013

By:           \s\ Jeffrey A. Williams

Jeffrey A. Williams

Chief Financial Officer and Secretary

August 30, 2013

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Note B - Significant Accounting Policies (Tables)

3 Months Ended

Jul. 31, 2013

Accounting Policies [Abstract]

Revenue from External Customers by Products and Services [Table Text Block]

	Three Months Ended July 31,
(In thousands)	2013		2012
Sales – used autos	$	97,306	$	86,884
Wholesales – third party		4,463		4,835
Service contract sales		3,914		3,524
Payment protection plan revenue		3,466		3,054
Total	$	109,149	$	98,297

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Revenues:
Sales	$ 109,149	$ 98,297
Interest and other income	13,395	11,703
Total revenue	122,544	110,000
Costs and expenses:
Cost of sales, excluding depreciation shown below	62,789	56,185
Selling, general and administrative	19,647	17,856
Provision for credit losses	26,530	21,663
Interest expense	790	653
Depreciation and amortization	777	662
Loss on disposal of property and equipment	41
Total costs and expenses	110,574	97,019
Income before taxes	11,970	12,981
Provision for income taxes	4,429	4,863
Net income	7,541	8,118
Less: Dividends on mandatorily redeemable preferred stock	(10)	(10)
Net income attributable to common stockholders	$ 7,531	$ 8,108
Earnings per share:
Basic (in Dollars per share)	$ 0.83	$ 0.87
Diluted (in Dollars per share)	$ 0.79	$ 0.83
Weighted average number of shares outstanding:
Basic (in Shares)	9,020,228	9,304,743
Diluted (in Shares)	9,492,852	9,752,069

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Note E - Accrued Liabilities

3 Months Ended

Jul. 31, 2013

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Other Liabilities Disclosure [Text Block]

E – Accrued Liabilities

A summary of accrued liabilities is as follows:

(In thousands)	July 31, 2013		April 30, 2013
Employee compensation	$	4,073	$	5,227
Cash overdrafts (see Note B)		2,456		1,537
Deferred service contract revenue (see Note B)		3,629		3,464
Deferred sales tax (see Note B)		2,604		2,436
Interest		226		237
Other		3,426		3,224
	$	16,414	$	16,125

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Note I - Stock Based Compensation (Tables)

3 Months Ended

Jul. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plan Comparison [Table Text Block]

	1997 Plan			2007 Plan
Minimum exercise price as a percentage of fair market value at date of grant		100	%		100	%
Last expiration date for outstanding options	July 2, 2017			May 6, 2023
Shares available for grant at July 31, 2013		-			367,500

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	July 31, 2013			July 31, 2012
Expected term (years)		5.0			5.0
Risk-free interest rate		0.67	%		0.82	%
Volatility		50	%		50	%
Dividend yield		—			—

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Three Months Ended July 31,
(Dollars in thousands)	2013			2012
Options Exercised			1,500			-
Cash Received from Option Exercises		$	35		$	-
Intrinsic Value of Options Exercised		$	34		$	-

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Note C - Finance Receivables (Tables)

3 Months Ended

Jul. 31, 2013

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

(In thousands)	July 31, 2013			April 30, 2013
Gross contract amount	$	433,605		$	414,614
Less unearned finance charges		(53,685	)		(51,220	)
Principal balance		379,920			363,394
Less allowance for credit losses		(78,808	)		(75,345	)
Finance receivables, net	$	301,112		$	288,049

Change in Finance Receivables, Net

	Three Months Ended July 31,
(In thousands)	2013			2012
Balance at beginning of period	$	288,049		$	251,103
Finance receivable originations		102,834			90,953
Finance receivable collections		(51,069	)		(48,279	)
Provision for credit losses		(26,530	)		(21,663	)
Losses on claims for payment protection plan		(1,790	)		(1,484	)
Inventory acquired in repossession and payment protection plan claims		(10,382	)		(9,200	)
Balance at end of period	$	301,112		$	261,430

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Three Months Ended July 31,
(In thousands)	2013				2012
Balance at beginning of period		$	75,345			$	65,831
Provision for credit losses			26,530				21,663
Charge-offs, net of recovered collateral			(23,067	)			(18,989	)
Balance at end of period		$	78,808			$	68,505

Past Due Financing Receivables [Table Text Block]

(Dollars in thousands)	July 31, 2013						April 30, 2013						July 31, 2012
	Principal Balance			Percent of Portfolio			Principal Balance			Percent of Portfolio			Principal Balance			Percent of Portfolio
Current		$	295,971		77.91	%		$	284,441		78.27	%		$	259,012		78.50	%
3 - 29 days past due			63,260		16.65	%			60,477		16.64	%			57,575		17.45	%
30 - 60 days past due			14,326		3.77	%			10,232		2.82	%			9,968		3.02	%
61 - 90 days past due			4,680		1.23	%			6,280		1.73	%			2,742		0.83	%
> 90 days past due			1,683		0.44	%			1,964		0.54	%			638		0.20	%
Total		$	379,920		100.00	%		$	363,394		100.00	%		$	329,935		100.00	%

Financing Receivable Credit Quality Indicators [Table Text Block]

	Three Months Ended July 31,
	2013			2012
Principal collected as a percent of average finance receivables		13.8	%		14.9	%
Average down-payment percentage		6.6	%		7.2	%

	July 31, 2013		July 31, 2012
Average originating contract term (in months)		27.7		26.7
Portfolio weighted average contract term, including modifications (in months)		29.5		28.1

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Note F - Debt Facilities (Details) - Revolving credit facilities (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended
	Jun. 24, 2013	Jul. 31, 2013	Apr. 30, 2013	Sep. 20, 2012	Mar. 09, 2012
Revolving credit facilities [Abstract]
Revolving credit facilities		$ 145,000		$ 145,000	$ 125,000
Revolving credit facilities		LIBOR + 2.25%
Revolving credit facilities	Jun. 30, 2016	Jun. 30, 2016
Revolving credit facilities		$ 99,497	$ 99,563

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Note B - Significant Accounting Policies (Details) (USD $)	3 Months Ended		12 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Apr. 30, 2013
Note B - Significant Accounting Policies (Details) [Line Items]
Number of Reportable Segments	1
Concentration Risk, Percentage	37.00%
Finance Receivables Interest Rate Range Start	11.00%
Finance Receivable Interest Rate Range End	19.00%
Interest Earned On Financing Receivables (in Dollars)	$ 2,000,000		$ 1,800,000
Finance Receivables, Customer Payments Due Either Weekly or Bi-Weekly, Percentage	75.00%
Financing Receivable, Greater Than Or Equal To 30 Days Past Due, Percent Of Portfolio	5.40%	4.00%
Financing Receivable, Average Days Past Due At Charge Off	71 days
Average Age of Account At Charge-Off Date	10 months 24 days
Goodwill, Impairment Loss (in Dollars)	0		0
Late Fee Income Generated by Servicing Financial Assets, Amount (in Dollars)	535,000	461,000
Financing Receivable Recorded Investment Greater Than 90 Days Past Due (in Dollars)	1,683,000	638,000	1,964,000
Stock Repurchased During Period, Shares (in Shares)	9,020	215,846
Stock Repurchased During Period, Value (in Dollars)	$ 384,000	$ 9,400,000
Furniture, fixtures, and equipment [Member] | Minimum [Member]
Note B - Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Furniture, fixtures, and equipment [Member] | Maximum [Member]
Note B - Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Leasehold Improvements [Member] | Minimum [Member]
Note B - Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Leasehold Improvements [Member] | Maximum [Member]
Note B - Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Building and Building Improvements [Member] | Minimum [Member]
Note B - Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	18 years
Building and Building Improvements [Member] | Maximum [Member]
Note B - Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	39 years

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Note A - Organization and Business (Details)	3 Months Ended
	Jul. 31, 2013
Disclosure Text Block [Abstract]
Number of Operating Subsidiaries	2
Number of Stores	126

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Note J - Supplemental Cash Flow Information (Details) - Supplemental cash flow disclosures (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Supplemental disclosures:
Interest paid	$ 801	$ 665
Income taxes paid, net	378	1,286
Non-cash transactions:
Inventory acquired in repossession and payment protection plan claims	$ 10,382	$ 9,200

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Note C - Finance Receivables (Details) - Financing receivables analysis	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Financing receivables analysis [Abstract]
Principal collected as a percent of average finance receivables	13.80%	14.90%
Average down-payment percentage	6.60%	7.20%
Average originating contract term (in months)	27 months 21 days	26 months 21 days
Portfolio weighted average contract term, including modifications (in months)	29 months 15 days	28 months 3 days

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Note G - Fair Value Measurements (Details) - Fair value of financial instruments (USD $) In Thousands, unless otherwise specified	Jul. 31, 2013	Apr. 30, 2013
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	$ 288	$ 272
Finance receivables, net	301,112	288,049
Accounts payable	9,226	8,832
Revolving credit facilities	99,497	99,563
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	288	272
Finance receivables, net	237,450	227,121
Accounts payable	9,226	8,832
Revolving credit facilities	$ 99,497	$ 99,563

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Note C - Finance Receivables (Details) - Changes in Finance Receivables (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Changes in Finance Receivables [Abstract]
Balance	$ 288,049	$ 251,103
Finance receivable originations	102,834	90,953
Finance receivable collections	(51,069)	(48,279)
Provision for credit losses	(26,530)	(21,663)
Losses on claims for payment protection plan	(1,790)	(1,484)
Inventory acquired in repossession and payment protection plan claims	(10,382)	(9,200)
Balance	$ 301,112	$ 261,430

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Note I - Stock Based Compensation (Details) - Stock Option Plan Comparison	3 Months Ended
	Jul. 31, 2013
1997 Plan [Member]
Note I - Stock Based Compensation (Details) - Stock Option Plan Comparison [Line Items]
Minimum exercise price as a percentage of fair market value at date of grant	100.00%
Last expiration date for outstanding options	Jul. 02, 2017
2007 Plan [Member]
Note I - Stock Based Compensation (Details) - Stock Option Plan Comparison [Line Items]
Minimum exercise price as a percentage of fair market value at date of grant	100.00%
Last expiration date for outstanding options	May 06, 2023
Shares available for grant at July 31, 2013 (in Shares)	367,500

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Note J - Supplemental Cash Flow Information (Tables)

3 Months Ended

Jul. 31, 2013

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

	Three Months Ended July 31,
(in thousands)	2013		2012
Supplemental disclosures:
Interest paid	$	801	$	665
Income taxes paid, net		378		1,286
Non-cash transactions:
Inventory acquired in repossession and payment protection plan claims		10,382		9,200

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Note A - Organization and Business

3 Months Ended

Jul. 31, 2013

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

A – Organization and Business

America’s Car-Mart, Inc., a Texas corporation (the “Company”), is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market.  References to the Company typically include the Company’s consolidated subsidiaries.  The Company’s operations are principally conducted through its two operating subsidiaries, America’s Car Mart, Inc., an Arkansas corporation (“Car-Mart of Arkansas”), and Colonial Auto Finance, Inc., an Arkansas corporation (“Colonial”).  Collectively, Car-Mart of Arkansas and Colonial are referred to herein as “Car-Mart.”  The Company primarily sells older model used vehicles and provides financing for substantially all of its customers. Many of the Company’s customers have limited financial resources and would not qualify for conventional financing as a result of limited credit histories or past credit problems.  As of July 31, 2013, the Company operated 126 dealerships located primarily in small cities throughout the South-Central United States.

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Note C - Finance Receivables

3 Months Ended

Jul. 31, 2013

Receivables [Abstract]

Financing Receivables [Text Block]

C – Finance Receivables

The Company originates installment sale contracts from the sale of used vehicles at its dealerships.  These installment sale contracts typically include interest rates ranging from 11% to 19% per annum, are collateralized by the vehicle sold and typically provide for payments over periods ranging from 18 to 36 months.  The weighted average interest rate for the portfolio was approximately 14.9% at July 31, 2014.  The Company’s finance receivables are aggregated as one class of loans, which is sub-prime consumer automobile contracts.  The level of risks inherent in the Company’s financing receivables is managed as one homogeneous pool.  The components of finance receivables are as follows:

(In thousands)	July 31, 2013			April 30, 2013
Gross contract amount	$	433,605		$	414,614
Less unearned finance charges		(53,685	)		(51,220	)
Principal balance		379,920			363,394
Less allowance for credit losses		(78,808	)		(75,345	)
Finance receivables, net	$	301,112		$	288,049

Changes in the finance receivables, net are as follows:

	Three Months Ended July 31,
(In thousands)	2013			2012
Balance at beginning of period	$	288,049		$	251,103
Finance receivable originations		102,834			90,953
Finance receivable collections		(51,069	)		(48,279	)
Provision for credit losses		(26,530	)		(21,663	)
Losses on claims for payment protection plan		(1,790	)		(1,484	)
Inventory acquired in repossession and payment protection plan claims		(10,382	)		(9,200	)
Balance at end of period	$	301,112		$	261,430

Changes in the finance receivables allowance for credit losses are as follows:

	Three Months Ended July 31,
(In thousands)	2013				2012
Balance at beginning of period		$	75,345			$	65,831
Provision for credit losses			26,530				21,663
Charge-offs, net of recovered collateral			(23,067	)			(18,989	)
Balance at end of period		$	78,808			$	68,505

The factors which influenced management’s judgment in determining the amount of the additions to the allowance charged to provision for credit losses are described below:

The level of actual charge-offs, net of recovered collateral, is the most important factor in determining the charges to the provision for credit losses. This is due to the fact that once a contract becomes delinquent the account is either made current by the customer, the vehicle is repossessed or the account is written off if the collateral cannot be recovered.  Net charge-offs as a percentage of average finance receivables increased 5% to 6.2% for the first three months ended July 31, 2013 compared to 5.9% for the same period in the prior year.  The increase in net charge-offs for the first three months of fiscal 2014 resulted primarily from the increased severity of losses due in part to overall wholesale price decreases coupled with the effect of overall longer contract terms partially resulting from the increased sales prices and lower down payments.  Higher sales volumes, lower collections and the shift in the relative age of the dealerships also had the effect of higher additions to the allowance charged to the provision for the first three months of fiscal 2014.

Collections and delinquency levels can have a significant effect on additions to the allowance and are reviewed frequently.  Collections as a percentage of average finance receivables were 13.8% for the three months ended July 31, 2013 compared to 14.9% for the prior year period.  The decrease in collections as a percentage of average finance receivables was primarily due to the increase in the average term, higher contract modifications and more delinquent accounts for the first three months of fiscal 2014 as compared to the first three months of the prior year.  Delinquencies greater than 30 days were 5.4% for July 31, 2013 and 4.0% at July 31, 2012.

Macro-economic factors as well as proper execution of operational policies and procedures have a significant effect on additions to the allowance charged to the provision. Higher unemployment levels, higher gasoline prices and higher prices for staple items can potentially have a significant effect.  While overall macro-economic factors were still somewhat unfavorable during the first three months of fiscal 2014, the Company continues to focus on operational improvements within the collections area as well as market share gains and governmental stimulus funds directly benefitting most of the Company’s customers which can be a positive factor in the Company’s collection efforts.

Credit quality information for finance receivables is as follows:

(Dollars in thousands)	July 31, 2013						April 30, 2013						July 31, 2012
	Principal Balance			Percent of Portfolio			Principal Balance			Percent of Portfolio			Principal Balance			Percent of Portfolio
Current		$	295,971		77.91	%		$	284,441		78.27	%		$	259,012		78.50	%
3 - 29 days past due			63,260		16.65	%			60,477		16.64	%			57,575		17.45	%
30 - 60 days past due			14,326		3.77	%			10,232		2.82	%			9,968		3.02	%
61 - 90 days past due			4,680		1.23	%			6,280		1.73	%			2,742		0.83	%
> 90 days past due			1,683		0.44	%			1,964		0.54	%			638		0.20	%
Total		$	379,920		100.00	%		$	363,394		100.00	%		$	329,935		100.00	%

Accounts one and two days past due are considered current for this analysis, due to the varying payment dates and variation in the day of the week at each period end.  Delinquencies may vary from period to period based on the average age of the portfolio, seasonality within the calendar year, the day of the week and overall economic factors.  The above categories are consistent with internal operational measures used by the Company to monitor credit results.  The Company believes that the increase in the past due percentages can be attributed in part to the continuing challenging macroeconomic environment our customers are facing.

Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders.  Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit.  The Company monitors contract term length, down payment percentages, and collections for credit quality indicators.

	Three Months Ended July 31,
	2013			2012
Principal collected as a percent of average finance receivables		13.8	%		14.9	%
Average down-payment percentage		6.6	%		7.2	%

	July 31, 2013		July 31, 2012
Average originating contract term (in months)		27.7		26.7
Portfolio weighted average contract term, including modifications (in months)		29.5		28.1

The decrease in the principal collected as a percent of average finance receivables is primarily attributed to higher delinquencies, the longer average contract term and the increase in contract modifications when compared to this time last year.  The increases in contract term are primarily related to our efforts to keep our payments affordable, for competitive reasons and to continue to work more with our customers when they experience financial difficulties.  In order to remain competitive our term lengths may continue to increase some into the future.

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Note F - Debt Facilities

3 Months Ended

Jul. 31, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

F – Debt Facilities

A summary of revolving credit facilities is as follows:

(In thousands)
		Aggregate	Interest			Balance at
		Amount	Rate	Maturity		July 31, 2013	April 30, 2013
Revolving credit facilities	$	145,000	LIBOR + 2.25%	June 2016	$	99,497	$	99,563

( 2.44% at July 31, 2013 and 2.70% at April 30, 2013)

On March 9, 2012, the Company entered into an Amended and Restated Loan and Security Agreement (“Credit Facilities”) with a group of lenders providing revolving credit facilities totaling $125 million.  On September 20, 2012, the Credit Facilities were amended to increase the total revolving commitment to $145 million.  On February 4, 2013, the Company entered into an amendment to the Credit Facilities to amend the definition of eligible vehicle contracts to include contracts with 36-42 month terms. On June 24, 2013, the Credit Facilities were amended to extend the term to June 2016, provided the option to request revolver commitment increases for up to an additional $55 million and provided for a 0.25% decrease in each of the three pricing tiers for determining the applicable interest rate.

The revolving credit facilities are collateralized primarily by finance receivables and inventory, are cross collateralized and contain a guarantee by the Company.  Interest is payable monthly under the revolving credit facilities. The Credit Facilities provide for three pricing tiers for determining the applicable interest rate, based on the Company’s consolidated leverage ratio for the preceding fiscal quarter. The current applicable interest rate under the Credit Facilities is generally LIBOR plus 2.25%.  The Credit Facilities contains various reporting and performance covenants including (i) maintenance of certain financial ratios and tests, (ii) limitations on borrowings from other sources, (iii) restrictions on certain operating activities and (iv) limitations on the payment of dividends or distributions.

The distribution limitations under the Credit Facilities allow the Company to repurchase the Company’s stock so long as: either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available.

The Company was in compliance with the covenants at July 31, 2013.  The amount available to be drawn under the credit facilities is a function of eligible finance receivables and inventory. Based upon eligible finance receivables and inventory at July 31, 2013, the Company had additional availability of $42 million under the revolving credit facilities.

The Company incurred debt issuance costs of approximately $200,000 and $42,000 in connection with the amendments to the credit facilities in June 2013 and September 2012, respectively.  The Company recognized $73,000 and $46,000 of amortization for the three months ended July 31, 2013 and July 31, 2012, respectively, related to debt issuance costs.  The amortization is reflected as interest expense in the Company’s Consolidated Statements of Operations.

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Note D - Property and Equipment

3 Months Ended

Jul. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

D – Property and Equipment

A summary of property and equipment is as follows:

(In thousands)	July 31, 2013			April 30, 2013
Land	$	6,211		$	6,211
Buildings and improvements		10,873			10,715
Furniture, fixtures and equipment		10,269			9,956
Leasehold improvements		16,648			15,874
Construction in progress		1,706			1,246
Less accumulated depreciation and amortization		(14,558	)		(13,821	)
	$	31,149		$	30,181

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Note H - Weighted Average Shares Outstanding (Details) - Weighted average shares of common stock outstanding	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Weighted average shares of common stock outstanding [Abstract]
Weighted average shares outstanding-basic	9,020,228	9,304,743
Dilutive options and restricted stock	472,624	447,326
Weighted average shares outstanding-diluted	9,492,852	9,752,069
Antidilutive securities not included:
Options	60,000	35,000

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Note B - Significant Accounting Policies (Details) - Sales (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Revenue from External Customer [Line Items]
Sales	$ 109,149	$ 98,297
Sales - Used Autos [Member]
Revenue from External Customer [Line Items]
Sales	97,306	86,884
Wholesales - Third Party [Member]
Revenue from External Customer [Line Items]
Sales	4,463	4,835
Service Contract Sales [Member]
Revenue from External Customer [Line Items]
Sales	3,914	3,524
Payment Protection Plan Revenue [Member]
Revenue from External Customer [Line Items]
Sales	$ 3,466	$ 3,054

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Note C - Finance Receivables (Details) - Changes in the finance receivables allowance for credit losses (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Changes in the finance receivables allowance for credit losses [Abstract]
Balance	$ 75,345	$ 65,831
Provision for credit losses	26,530	21,663
Charge-offs, net of recovered collateral	(23,067)	(18,989)
Balance	$ 78,808	$ 68,505

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Note F - Debt Facilities (Details) (USD $)	1 Months Ended			3 Months Ended					3 Months Ended
	Jun. 24, 2013	Jun. 30, 2013	Sep. 30, 2012	Jul. 31, 2013	Jul. 31, 2012	Apr. 30, 2013	Sep. 20, 2012	Mar. 09, 2012	Jul. 31, 2013 London Interbank Offered Rate (LIBOR) [Member]	Feb. 04, 2013 Minimum [Member]	Feb. 04, 2013 Maximum [Member]
Note F - Debt Facilities (Details) [Line Items]
Line of Credit Facility, Interest Rate at Period End				2.44%		2.70%
Line of Credit Facility, Maximum Borrowing Capacity				$ 145,000,000			$ 145,000,000	$ 125,000,000
Contract Term Of Contracts Included By Credit Facilities Amendment										36 years	42 years
Line of Credit Facility, Expiration Date	Jun. 30, 2016			Jun. 30, 2016
Line of Credit Facility, Additional Borrowing Capacity	55,000,000
Decrease in Pricing Tiers, Percent	0.25%
Line of Credit Facility, Interest Rate Description				The Credit Facilities provide for three pricing tiers for determining the applicable interest rate, based on the Company's consolidated leverage ratio for the preceding fiscal quarter. The current applicable interest rate under the Credit Facilities is generally LIBOR plus 2.25%
Debt Instrument, Basis Spread on Variable Rate									2.25%
Line of Credit Facility, Dividend Restrictions				The distribution limitations under the Credit Facilities allow the Company to repurchase the Company's stock so long as: either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available.
Dividend Restrictions, Maximum Aggregate Amount of Stock Repurchases				40,000,000
Dividend Restrictions, Percentage of Sum of Borrowing Bases				25.00%
Dividend Restrictions, Percentage of Consolidated Net income				75.00%
Dividend Restrictions, Minimum Percentage of Aggregate Funds Available				12.50%
Line of Credit Facility, Remaining Borrowing Capacity				42,000,000
Debt Issuance Cost		200,000	42,000
Amortization of Financing Costs and Discounts				$ 73,000	$ 46,000

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Note I - Stock Based Compensation (Details) - Options Exercised (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Jul. 31, 2013
Options Exercised [Abstract]
Options Exercised (in Shares)	1,500
Cash Received from Option Exercises	$ 35
Intrinsic Value of Options Exercised	$ 34

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Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Jul. 31, 2013	Apr. 30, 2013
Preferred stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	12,418,318	12,414,659
Common stock, shares outstanding	9,017,929	9,023,290
Treasury stock, shares	3,400,389	3,391,369

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Note I - Stock Based Compensation

3 Months Ended

Jul. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

I – Stock Based Compensation

The Company has stock based compensation plans available to grant non-qualified stock options, incentive stock options and restricted stock to employees, directors and certain advisors of the Company.  The stock based compensation plans currently being utilized are the 2007 Stock Option Plan (“2007 Plan”) and the Stock Incentive Plan (“Incentive Plan”).    The Company recorded total stock based compensation expense for all plans of $644,000 ($406,000 after tax effects) and $807,000 ($504,000 after tax effects) for the three months ended July 31, 2013 and 2012, respectively.  Tax benefits were recognized for these costs at the Company’s overall effective tax rate.

Stock Options

The Company has options outstanding under two stock option plans approved by the shareholders, the 1997 Stock Option Plan (“1997 Plan”) and the 2007 Plan. While previously granted options remain outstanding, no additional option grants may be made under the 1997 Plan.  The shareholders of the Company approved an amendment to the Company’s 2007 Plan on October 13, 2010. The amendment increased from 1,000,000 to 1,500,000 the number of options to purchase our common stock that may be issued under the 2007 Plan.  The 2007 Plan provides for the grant of options to purchase shares of the Company’s common stock to employees, directors and certain advisors of the Company at a price not less than the fair market value of the stock on the date of grant and for periods not to exceed ten years. Options granted under the Company’s stock option plans expire in the calendar years 2013 through 2023.

	1997 Plan			2007 Plan
Minimum exercise price as a percentage of fair market value at date of grant		100	%		100	%
Last expiration date for outstanding options	July 2, 2017			May 6, 2023
Shares available for grant at July 31, 2013		-			367,500

The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions in the table below.

	July 31, 2013			July 31, 2012
Expected term (years)		5.0			5.0
Risk-free interest rate		0.67	%		0.82	%
Volatility		50	%		50	%
Dividend yield		—			—

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior.  The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date.  Volatility is based on historical volatility of the Company’s common stock.  The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

There were 25,000 and 30,000 options granted during the three months ended July 31, 2013 and 2012, respectively. The grant-date fair value of options granted during the three months ended July 31, 2013 and 2012 was $487,000 and $592,000, respectively. The options were granted at fair market value on date of grant.

Stock option compensation expense on a pre-tax basis was $604,000 ($381,000 after tax effects) and $764,000 ($478,000 after tax effects) for the three months ended July 31, 2013 and 2012, respectively.

The aggregate intrinsic value of outstanding options at July 31, 2013 and 2012 was $24.8 million and $28.4 million, respectively.

As of July 31, 2013, the Company had $1.3 million of total unrecognized compensation cost related to unvested options.  These unvested outstanding options have a weighted-average remaining vesting period of 1.4 years.

The Company had the following options exercised for the periods indicated.  The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows.

	Three Months Ended July 31,
(Dollars in thousands)	2013			2012
Options Exercised			1,500			-
Cash Received from Option Exercises		$	35		$	-
Intrinsic Value of Options Exercised		$	34		$	-

Stock Incentive Plan

The shareholders of the Company approved an amendment to the Company’s Stock Incentive Plan on October 14, 2009. The amendment increased from 150,000 to 350,000 the number of shares of common stock that may be issued under the Stock Incentive Plan.  For shares issued under the Stock Incentive Plan, the associated compensation expense is generally recognized equally over the vesting periods established at the award date and is subject to the employee’s continued employment by the Company.

There were no restricted shares granted during the first three months of fiscal 2014 or fiscal 2013.  A total of 187,027 shares remained available for award at July 31, 2013.There were 23,500 unvested shares at July 31, 2013 with a weighted average grant date fair value of $23.66.

The Company recorded compensation cost of $26,000 ($16,000 after tax effects) and $31,000 ($19,000 after tax effects) related to the Stock Incentive Plan during the three months ended July 31, 2013 and 2012, respectively.

As of July 31, 2013, the Company has $169,000 of total unrecognized compensation cost related to unvested awards granted under the Stock Incentive Plan, which the Company expects to recognize over a weighted-average remaining period of 1.6 years.

There were no modifications to any of the Company’s outstanding share-based payment awards during fiscal 2013 or during the first three months of fiscal 2014.

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Net income	$ 7,541,000	$ 8,118,000
Adjustments to reconcile net income from operations to net cash provided by operating activities:
Provision for credit losses	26,530,000	21,663,000
Losses on claims for payment protection plan	1,790,000	1,484,000
Depreciation and amortization	777,000	662,000
Amortization of debt issuance costs	73,000	46,000
Loss on disposal of property and equipment	41,000
Stock based compensation	644,000	807,000
Deferred income taxes	(34,000)	277,000
Change in operating assets and liabilities:
Finance receivable originations	(102,834,000)	(90,953,000)
Finance receivable collections	51,069,000	48,279,000
Accrued interest on finance receivables	(189,000)	(153,000)
Inventory	11,487,000	8,571,000
Prepaid expenses and other assets	23,000	141,000
Accounts payable and accrued liabilities	(236,000)	(1,615,000)
Deferred payment protection plan revenue	461,000	557,000
Income taxes, net	4,085,000	3,301,000
Excess tax benefit from share based compensation	(5,000)
Net cash provided by operating activities	1,223,000	1,185,000
Investing Activities:
Purchase of property and equipment	(1,786,000)	(925,000)
Net cash used in investing activities	(1,786,000)	(925,000)
Financing Activities:
Exercise of stock options and warrants	36,000
Excess tax benefit from share based compensation	5,000
Issuance of common stock	79,000	69,000
Purchase of common stock	(384,000)	(9,417,000)
Dividend payments	(10,000)	(10,000)
Debt issuance costs	(200,000)
Change in cash overdrafts	919,000	1,713,000
Proceeds from revolving credit facilities	73,996,000	77,420,000
Payments on revolving credit facilities	(73,862,000)	(70,112,000)
Net cash provided by (used in) financing activities	579,000	(337,000)
Increase (Decrease) in cash and cash equivalents	16,000	(77,000)
Cash and cash equivalents, beginning of period	272,000	276,000
Cash and cash equivalents, end of period	$ 288,000	$ 199,000

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jul. 31, 2013	Apr. 30, 2013
Assets:
Cash and cash equivalents	$ 288	$ 272
Accrued interest on finance receivables	1,973	1,784
Finance receivables, net	301,112	288,049
Inventory	31,722	32,827
Prepaid expenses and other assets	2,311	2,407
Income taxes receivable, net		2,390
Goodwill	355	355
Property and equipment, net	31,149	30,181
Total Assets	368,910	358,265
Liabilities:
Accounts payable	9,226	8,832
Deferred payment protection plan revenue	13,371	12,910
Accrued liabilities	16,414	16,125
Income taxes payable, net	1,690
Deferred tax liabilities, net	18,133	18,167
Revolving credit facilities	99,497	99,563
Total liabilities	158,331	155,597
Commitments and contingencies
Mezzanine equity:
Mandatorily redeemable preferred stock	400	400
Equity:
Preferred stock, par value $.01 per share, 1,000,000 shares authorized; none issued or outstanding
Common stock, par value $.01 per share, 50,000,000 shares authorized; 12,418,318 and 12,414,659 issued at July 31, 2013 and April 30, 2013, respectively, of which 9,017,929 and 9,023,290 were outstanding at July 31, 2013 and April 30, 2013, respectively	124	124
Additional paid-in capital	54,096	53,332
Retained earnings	250,790	243,259
Less: Treasury stock, at cost, 3,400,389 and 3,391,369 shares at July 31, 2013 and April 30, 2013, respectively	(94,931)	(94,547)
Total stockholders' equity	210,079	202,168
Non-controlling interest	100	100
Total equity	210,179	202,268
Total Liabilities, Mezzanine Equity and Equity	$ 368,910	$ 358,265

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Note C - Finance Receivables (Details)	3 Months Ended		15 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2013
Receivables [Abstract]
Finance Receivables Interest Rate Range Start	11.00%
Finance Receivable Interest Rate Range End	19.00%
Finance Receivables Payment Periods Start	18 months
Finance Receivables Payment Periods End	36 months
Installment Sale Contracts,Weighted Average Interest Rate	14.90%
Finance Receivables, Number Of Loan Classes	1
Finance Receivables, Number Of Risk Pools	1
Net Increase In Net Charge Offs As Percentage Of Average Finance Receivables	5.00%
Net Charge Offs As Percentage of Average Finance Receivables	6.20%	5.90%
Collections As Percentage of Average Finance Receivables	13.80%	14.90%
Dellinquecies Greater Than 30 Days As Percentage Of Average Finance Receivables		4.00%	5.40%

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Note H - Weighted Average Shares Outstanding (Tables)

3 Months Ended

Jul. 31, 2013

Weighted Average Shares Outstanding [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

	Three Months Ended July 31,
	2013		2012
Weighted average shares outstanding-basic		9,020,228		9,304,743
Dilutive options and restricted stock		472,624		447,326
Weighted average shares outstanding-diluted		9,492,852		9,752,069
Antidilutive securities not included:
Options		60,000		35,000

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Note I - Stock Based Compensation (Details) - Options valuation assumptions	3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012
Options valuation assumptions [Abstract]
Expected term (years)	5 years	5 years
Risk-free interest rate	0.67%	0.82%
Volatility	50.00%	50.00%

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Note G - Fair Value Measurements (Details)	3 Months Ended
	Jul. 31, 2013
Fair Value Disclosures [Abstract]
Fair Value Inputs, Discount Rate	37.50%

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Note D - Property and Equipment (Details) - Property and equipment (USD $) In Thousands, unless otherwise specified	Jul. 31, 2013	Apr. 30, 2013
Property and equipment [Abstract]
Land	$ 6,211	$ 6,211
Buildings and improvements	10,873	10,715
Furniture, fixtures and equipment	10,269	9,956
Leasehold improvements	16,648	15,874
Construction in progress	1,706	1,246
Less accumulated depreciation and amortization	(14,558)	(13,821)
	$ 31,149	$ 30,181

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Note E - Accrued Liabilities (Details) - Accrued liabilities (USD $) In Thousands, unless otherwise specified	Jul. 31, 2013	Apr. 30, 2013
Accrued liabilities [Abstract]
Employee compensation	$ 4,073	$ 5,227
Cash overdrafts (see Note B)	2,456	1,537
Deferred service contract revenue (see Note B)	3,629	3,464
Deferred sales tax (see Note B)	2,604	2,436
Interest	226	237
Other	3,426	3,224
	$ 16,414	$ 16,125

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Note H - Weighted Average Shares Outstanding

3 Months Ended

Jul. 31, 2013

Weighted Average Shares Outstanding [Abstract]

Weighted Average Shares Outstanding

H – Weighted Average Shares Outstanding

Weighted average shares of common stock outstanding, which are used in the calculation of basic and diluted earnings per share, are as follows:

	Three Months Ended July 31,
	2013		2012
Weighted average shares outstanding-basic		9,020,228		9,304,743
Dilutive options and restricted stock		472,624		447,326
Weighted average shares outstanding-diluted		9,492,852		9,752,069
Antidilutive securities not included:
Options		60,000		35,000

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Note C - Finance Receivables (Details) - Components of Finance Receivables (USD $) In Thousands, unless otherwise specified	Jul. 31, 2013	Apr. 30, 2013	Jul. 31, 2012	Apr. 30, 2012
Components of Finance Receivables [Abstract]
Gross contract amount	$ 433,605	$ 414,614
Less unearned finance charges	(53,685)	(51,220)
Principal balance	379,920	363,394	329,935
Less allowance for credit losses	(78,808)	(75,345)	(68,505)	(65,831)
Finance receivables, net	$ 301,112	$ 288,049	$ 261,430	$ 251,103

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Note I - Stock Based Compensation (Details) (USD $)	3 Months Ended					3 Months Ended
	Jul. 31, 2013	Jul. 31, 2012	Jul. 31, 2013 Employee Stock Option [Member]	Jul. 31, 2012 Employee Stock Option [Member]	Oct. 12, 2010 Employee Stock Option [Member]	Jul. 31, 2013 Stock Incentive Plan [Member]	Jul. 31, 2012 Stock Incentive Plan [Member]	Oct. 13, 2009 Stock Incentive Plan [Member]
Note I - Stock Based Compensation (Details) [Line Items]
Share-based Compensation	$ 644,000	$ 807,000	$ 604,000	$ 764,000		$ 26,000	$ 31,000
Allocated Share-based Compensation Expense, Net of Tax	406,000	504,000	381,000	478,000		16,000	19,000
Number Of Stock Option Plans	2
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)			1,500,000		1,000,000	350,000		150,000
Stock Options, Maximum Term			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)			25,000	30,000
Share Based Compensation Arrangement By Share Based Payment Award, Options, Grants In Period, Grant Date Fair Value			487,000	592,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value			24,800,000	28,400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 1,300,000			$ 169,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 146 days			1 year 219 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)						187,027
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares)						23,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in Dollars per share)						$ 23.66

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Accounting Policies, by Policy (Policies)

3 Months Ended

Jul. 31, 2013

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries.  All intercompany accounts and transactions have been eliminated

Segment Reporting, Policy [Policy Text Block]

Segment Information

Each dealership is an operating segment with its results regularly reviewed by the Company’s chief operating decision maker in an effort to make decisions about resources to be allocated to the segment and to assess its performance. Individual dealerships meet the aggregation criteria under the current accounting guidance.  The Company operates in the Integrated Auto Sales and Finance segment of the used car market.  In this industry, the nature of the sale and the financing of the transaction, financing processes, the type of customer and the methods used to distribute the Company’s products and services, including the actual servicing of the contracts as well as the regulatory environment in which the Company operates, all have similar characteristics.  Each of our individual dealerships is similar in nature and only engages in the selling and financing of used vehicles.  All individual dealerships have similar operating characteristics.  As such, individual dealerships have been aggregated into one reportable segment.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period.  Actual results could differ from those estimates.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Risk

The Company provides financing in connection with the sale of substantially all of its vehicles.  These sales are made primarily to customers residing in Alabama, Arkansas, Georgia, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, and Texas, with approximately 37% of revenues resulting from sales to Arkansas customers.  Periodically, the Company maintains cash in financial institutions in excess of the amounts insured by the federal government.

Line Of Credit Facility, Dividend Restrictions [Policy Text Block]

Restrictions on Distributions/Dividends

The Company’s revolving credit facilities generally limit distributions by the Company to its shareholders in order to repurchase the Company’s common stock.  The distribution limitations under the Agreement allow the Company to repurchase the Company’s stock so long as: either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available. Thus, the Company is limited in the amount of dividends or other distributions it can make to its shareholders without the consent of the Company’s lenders.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents

The Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents.

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Finance Receivables, Repossessions and Charge-offs and Allowance for Credit Losses

The Company originates installment sale contracts from the sale of used vehicles at its dealerships.  These installment sale contracts carry interest rates ranging from 11% to 19% using the simple effective interest method including any deferred fees.  Contract origination costs are not significant.  The installment sale contracts are not pre-computed contracts whereby buyers are obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the contract.  Finance receivables are collateralized by vehicles sold and consist of contractually scheduled payments from installment contracts net of unearned finance charges and an allowance for credit losses.  Unearned finance charges represent the balance of interest receivable to be earned over the entire term of the related installment contract, less the earned amount ($2.0 million at July 31, 2013 and $1.8 million at April 30, 2013), and as such, has been reflected as a reduction to the gross contract amount in arriving at the principal balance in finance receivables. An account is considered delinquent when a contractually scheduled payment has not been received by the scheduled payment date.  While the Company does not formally place contracts on nonaccrual status, the immaterial amount of interest that may accrue after an account becomes delinquent up until the point of resolution via repossession or write-off, is reserved for against the accrued interest on the Consolidated Balance Sheets. Delinquent contracts are addressed and either made current by the customer, which is the case in most situations, or the vehicle is repossessed or written off, if the collateral cannot be recovered quickly. Customer payments are set to match their pay-day with over 75% of payments due on either a weekly or bi-weekly basis. The frequency of the payment due dates combined with the declining value of collateral lead to prompt resolutions on problem accounts.  Accounts are delinquent when the customer is one day or more behind on their contractual payments.  At July 31, 2013, 5.4% of the Company’s finance receivable balances were 30 days or more past due compared to 4.0% at July 31, 2012.

Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders.  Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit.

The Company works very hard to keep its delinquency percentages low, and not to repossess vehicles.  Accounts one day late are sent a notice in the mail.  Accounts three days late are contacted by telephone.  Notes from each telephone contact are electronically maintained in the Company’s computer system.  If a customer becomes severely delinquent in his or her payments, and management determines that timely collection of future payments is not probable, the Company will take steps to repossess the vehicle.  The Company attempts to resolve payment delinquencies amicably prior to repossessing a vehicle.  Periodically, the Company enters into contract modifications with its customers to extend the payment terms.  The Company only enters into a contract modification or extension if it believes such action will increase the amount of monies the Company will ultimately realize on the customer’s account. At the time of modification, the Company expects to collect amounts due including accrued interest at the contractual interest rate for the period of delay. Other than the extension of additional time, concessions are not granted to customers at the time of modifications. Modifications are minor and are made for pay-day changes, minor vehicle repairs and other reasons.  For those vehicles that are repossessed, the majority are returned or surrendered by the customer on a voluntary basis.  Other repossessions are performed by Company personnel or third party repossession agents.  Depending on the condition of a repossessed vehicle, it is either resold on a retail basis through a Company dealership, or sold for cash on a wholesale basis primarily through physical and/or on-line auctions.

The Company takes steps to repossess a vehicle when the customer becomes delinquent in his or her payments and management determines that timely collection of future payments is not probable.  Accounts are charged-off after the expiration of a statutory notice period for repossessed accounts, or when management determines that the timely collection of future payments is not probable for accounts where the Company has been unable to repossess the vehicle.  For accounts with respect to which the vehicle was repossessed, the fair value of the repossessed vehicle is charged as a reduction of the gross finance receivable balance charged-off.  On average, accounts are approximately 71 days past due at the time of charge-off.  For previously charged-off accounts that are subsequently recovered, the amount of such recovery is credited to the allowance for credit losses.

The Company maintains an allowance for credit losses on an aggregate basis, as opposed to a contract-by-contract basis, at an amount it considers sufficient to cover estimated losses inherent in the portfolio at the balance sheet date in the collection of its finance receivables currently outstanding.  The Company accrues an estimated loss as it is probable that the entire amount will not be collected and the amount of the loss can be reasonably estimated in the aggregate.  The allowance for credit losses is based primarily upon historical credit loss experience, with consideration given to recent credit loss trends and changes in contract characteristics (i.e., average amount financed and term), delinquency levels, collateral values, economic conditions and underwriting and collection practices.  The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations.  Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes that it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses.

Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block]

The calculation of the allowance for credit losses uses the following primary factors:

·   The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time.

·   The average net repossession and charge-off loss per unit during the last eighteen months, segregated by the number of months since the contract origination date, and adjusted for the expected future average net charge-off loss per unit.  Approximately 50% of the charge-offs that will ultimately occur in the portfolio are expected to occur within 10-11 months following the contract origination date.  The average age of an account at charge-off date is 10.8 months.

·   The timing of repossession and charge-off losses relative to the date of sale (i.e., how long it takes for a repossession or charge-off to occur) for repossessions and charge-offs occurring during the last eighteen months.

A point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors to arrive at an overall reserve amount that management considers to be a reasonable estimate of incurred losses inherent in the portfolio at the balance sheet date that will be realized via actual charge-offs in the future.  Periods of economic downturn do not necessarily lead to increased credit losses because the Company provides basic affordable transportation to customers that, for the most part, do not have access to public transportation.  The effectiveness of the execution of internal policies and procedures within the collections area has historically had a more significant effect on collection results than macro-economic issues.

In most states, the Company offers retail customers who finance their vehicle the option of purchasing a payment protection plan product as an add-on to the installment sale contract.  This product contractually obligates the Company to cancel the remaining principal outstanding for any contract where the retail customer has totaled the vehicle, as defined, or the vehicle has been stolen.  The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred payment protection plan revenues, an additional liability is recorded for such difference.  No such liability was required at July 31, 2013 or April 30, 2013.

Inventory, Policy [Policy Text Block]

Inventory

Inventory consists of used vehicles and is valued at the lower of cost or market on a specific identification basis.  Vehicle reconditioning costs are capitalized as a component of inventory.  Repossessed vehicles and trade-in vehicles are recorded at fair value, which approximates wholesale value.  The cost of used vehicles sold is determined using the specific identification method.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill reflects the excess of purchase price over the fair value of specifically identified net assets purchased.  Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests at the Company’s year-end. The impairment tests are based on the comparison of the fair value of the reporting unit to the carrying value of such unit. If the fair value of the reporting unit falls below its carrying value, the Company performs the second step of the two-step goodwill impairment process to determine the amount, if any, that the goodwill is impaired.  The second step involves determining the fair value of the identifiable assets and liabilities and the implied goodwill.  The implied goodwill is compared to the carrying value of the goodwill to determine the impairment, if any.    There was no impairment of goodwill during fiscal 2013, and to date, there has been none in fiscal 2014.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost.  Expenditures for additions, renewals and improvements are capitalized.  Costs of repairs and maintenance are expensed as incurred.  Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the lease period.  The lease period includes the primary lease term plus any extensions that are reasonably assured. Depreciation is computed principally using the straight-line method generally over the following estimated useful lives:

Furniture, fixtures and equipment	3 to 7 years
Leasehold improvements	5 to 15 years
Buildings and improvements	18 to 39 years

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying values of the impaired assets exceed the fair value of such assets.  Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Cash Overdraft [Policy Text Block]

Cash Overdraft

As checks are presented for payment from the Company’s primary disbursement bank account, monies are automatically drawn against cash collections for the day and, if necessary, are drawn against one of its revolving credit facilities.  Any cash overdraft balance principally represents outstanding checks, net of any deposits in transit that as of the balance sheet date had not yet been presented for payment.

Deferred Sales Tax [Policy Text Block]

Deferred Sales Tax

Deferred sales tax represents a sales tax liability of the Company for vehicles sold on an installment basis in the states of Alabama and Texas.  Under Alabama and Texas law, for vehicles sold on an installment basis, the related sales tax is due as the payments are collected from the customer, rather than at the time of sale.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income taxes are accounted for under the liability method.  Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates expected to apply in the years in which these temporary differences are expected to be recovered or settled. The quarterly provision for income taxes is determined using an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and the Company’s best estimate of nontaxable and nondeductible items of income and expense.

Occasionally, the Company is audited by taxing authorities.  These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law.  However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.  For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.  The Company applies this methodology to all tax positions for which the statute of limitations remains open.

The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions.  Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before fiscal 2010.

In fiscal 2010, the Internal Revenue Service (“IRS”) completed the examinations of the Company’s income tax returns for fiscal years 2008 and 2009.  As a result of the examinations, the IRS questioned whether deferred payment protection plan (“PPP”) revenue associated with the sale of certain receivables are subject to the acceleration of advance payments provision of the Internal Revenue Code and whether the Company may deduct losses on the sale of the PPP receivables in excess of the income recognized on the underlying contracts.  The issue was timing in nature and did not affect the overall tax provision, but affected the timing of required tax payments.

In January 2013, the Company received approval for a negotiated settlement with the IRS related to the examinations for income tax returns for fiscal years 2008 and 2009.  The negotiated settlement resulted in additional taxable income and a resulting tax payment for the exam period.  The question related to the timing of income recognition and therefore the additional income recognized in 2008 and 2009 will result in a corresponding tax deduction and resulting refund in the following fiscal year.  Under the settlement the Company paid an immaterial amount of interest to the IRS related to the additional tax payment.

The IRS is currently auditing the Company’s federal income tax returns for fiscal years 2010 and 2011.

The Company’s policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accrued penalties or interest as of July 31, 2013 or April 30, 2013.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Revenues are generated principally from the sale of used vehicles, which in most cases includes a service contract and a payment protection plan product, interest income and late fees earned on finance receivables.  Revenues are net of taxes collected from customers and remitted to government agencies.  Cost of vehicle sales include costs incurred by the Company to prepare the vehicle for sale including license and title costs, gasoline, transport services and repairs.

Revenues from the sale of used vehicles are recognized when the sales contract is signed, the customer has taken possession of the vehicle and, if applicable, financing has been approved.  Revenues from the sale of service contracts are recognized ratably over the service contract period.  Service contract revenues are included in sales and the related expenses are included in cost of sales.  Payment protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” interest method over the life of the contract so that revenues are recognized in proportion to the amount of cancellation protection provided.  Payment protection plan revenues are included in sales and related losses are included in cost of sales as incurred.  Interest income is recognized on all active finance receivable accounts using the simple effective interest method.  Active accounts include all accounts except those that have been paid-off or charged-off.

Sales consist of the following:

	Three Months Ended July 31,
(In thousands)	2013		2012
Sales – used autos	$	97,306	$	86,884
Wholesales – third party		4,463		4,835
Service contract sales		3,914		3,524
Payment protection plan revenue		3,466		3,054
Total	$	109,149	$	98,297

Revenues from late fees were approximately $535,000 and $461,000 for the three months ended July 31, 2013 and 2012, respectively. Late fees are recognized when collected and are reflected in interest and other income.  Finance receivables more than 90 days past due were approximately $1.7 million and $638,000 at July 31, 2013 and 2012, respectively.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Share

Basic earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period.  Diluted earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period plus dilutive common stock equivalents.  The calculation of diluted earnings per share takes into consideration the potentially dilutive effect of common stock equivalents, such as outstanding stock options and non-vested restricted stock, which if exercised or converted into common stock would then share in the earnings of the Company.  In computing diluted earnings per share, the Company utilizes the treasury stock method and anti-dilutive securities are excluded.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-based compensation

The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant over the requisite service period.  The Company uses the Black Scholes option pricing model to determine the fair value of stock option awards.  The Company may issue either new shares or treasury shares upon exercise of these awards.  Stock-based compensation plans, related expenses and assumptions used in the Black Scholes option pricing model are more fully described in Note I.

Treasury Stock [Policy Text Block]

Treasury Stock

The Company purchased 9,020 shares of its common stock during the first three months of fiscal 2014 for a total cost of $384,000 and 215,846 shares for a total cost of $9.4 million during the first three months of fiscal 2013.  Treasury stock may be used for issuances under the Company’s stock-based compensation plans or for other general corporate purposes.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Occasionally, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies which the Company adopts as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards which are not yet effective will not have a material impact on its consolidated financial statements upon adoption

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Note G - Fair Value Measurements

3 Months Ended

Jul. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

G – Fair Value Measurements

The table below summarizes information about the fair value of financial instruments included in the Company’s financial statements at July 31, 2013 and April 30, 2013:

	July 31, 2013				April 30, 2013
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash	$	288	$	288	$	272	$	272
Finance receivables, net		301,112		237,450		288,049		227,121
Accounts payable		9,226		9,226		8,832		8,832
Revolving credit facilities		99,497		99,497		99,563		99,563

Because no market exists for certain of the Company’s financial instruments, fair value estimates are based on judgments and estimates regarding yield expectations of investors, credit risk and other risk characteristics, including interest rate and prepayment risk.  These estimates are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision.  Changes in assumptions could significantly affect these estimates.  The methodology and assumptions utilized to estimate the fair value of the Company’s financial instruments are as follows:

Financial Instrument	Valuation Methodology
Cash	The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument.
Finance receivables, net	The Company estimated the fair value of its receivables at what a third party purchaser might be willing to pay. The Company has had discussions with third parties and has bought and sold portfolios, and  had a third party appraisal  in November 2012 that indicates a 37.5% discount to face would be a reasonable fair value in a negotiated third party transaction.  The sale of finance receivables from Car-Mart of Arkansas to Colonial is at a 37.5% discount. For financial reporting purposes these sale transactions are eliminated. Since the Company does not intend to offer the receivables for sale to an outside third party, the expectation is that the net book value at July 31, 2013, will be ultimately collected. By collecting the accounts internally the Company expects to realize more than a third party purchaser would expect to collect with a servicing requirement and a profit margin included.
Accounts payable	The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument.
Revolving credit facilities	The fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently.

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Note B - Significant Accounting Policies

3 Months Ended

Jul. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

B – Summary of Significant Accounting Policies

General

The accompanying condensed consolidated balance sheet as of April 30, 2013, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of July 31, 2013 and 2012, have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q in Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended July 31, 2013 are not necessarily indicative of the results that may be expected for the year ending April 30, 2014.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended April 30, 2013.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries.  All intercompany accounts and transactions have been eliminated.

Segment Information

Each dealership is an operating segment with its results regularly reviewed by the Company’s chief operating decision maker in an effort to make decisions about resources to be allocated to the segment and to assess its performance. Individual dealerships meet the aggregation criteria under the current accounting guidance.  The Company operates in the Integrated Auto Sales and Finance segment of the used car market.  In this industry, the nature of the sale and the financing of the transaction, financing processes, the type of customer and the methods used to distribute the Company’s products and services, including the actual servicing of the contracts as well as the regulatory environment in which the Company operates, all have similar characteristics.  Each of our individual dealerships is similar in nature and only engages in the selling and financing of used vehicles.  All individual dealerships have similar operating characteristics.  As such, individual dealerships have been aggregated into one reportable segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period.  Actual results could differ from those estimates.

Concentration of Risk

The Company provides financing in connection with the sale of substantially all of its vehicles.  These sales are made primarily to customers residing in Alabama, Arkansas, Georgia, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, and Texas, with approximately 37% of revenues resulting from sales to Arkansas customers.  Periodically, the Company maintains cash in financial institutions in excess of the amounts insured by the federal government.

Restrictions on Distributions/Dividends

The Company’s revolving credit facilities generally limit distributions by the Company to its shareholders in order to repurchase the Company’s common stock.  The distribution limitations under the Agreement allow the Company to repurchase the Company’s stock so long as: either (a) the aggregate amount of such repurchases does not exceed $40 million beginning March 9, 2012 and the sum of borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 25% of the sum of the borrowing bases, or (b) the aggregate amount of such repurchases does not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remain available. Thus, the Company is limited in the amount of dividends or other distributions it can make to its shareholders without the consent of the Company’s lenders.

Cash Equivalents

The Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents.

Finance Receivables, Repossessions and Charge-offs and Allowance for Credit Losses

The Company originates installment sale contracts from the sale of used vehicles at its dealerships.  These installment sale contracts carry interest rates ranging from 11% to 19% using the simple effective interest method including any deferred fees.  Contract origination costs are not significant.  The installment sale contracts are not pre-computed contracts whereby buyers are obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the contract.  Finance receivables are collateralized by vehicles sold and consist of contractually scheduled payments from installment contracts net of unearned finance charges and an allowance for credit losses.  Unearned finance charges represent the balance of interest receivable to be earned over the entire term of the related installment contract, less the earned amount ($2.0 million at July 31, 2013 and $1.8 million at April 30, 2013), and as such, has been reflected as a reduction to the gross contract amount in arriving at the principal balance in finance receivables. An account is considered delinquent when a contractually scheduled payment has not been received by the scheduled payment date.  While the Company does not formally place contracts on nonaccrual status, the immaterial amount of interest that may accrue after an account becomes delinquent up until the point of resolution via repossession or write-off, is reserved for against the accrued interest on the Consolidated Balance Sheets. Delinquent contracts are addressed and either made current by the customer, which is the case in most situations, or the vehicle is repossessed or written off, if the collateral cannot be recovered quickly. Customer payments are set to match their pay-day with over 75% of payments due on either a weekly or bi-weekly basis. The frequency of the payment due dates combined with the declining value of collateral lead to prompt resolutions on problem accounts.  Accounts are delinquent when the customer is one day or more behind on their contractual payments.  At July 31, 2013, 5.4% of the Company’s finance receivable balances were 30 days or more past due compared to 4.0% at July 31, 2012.

Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders.  Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit.

The Company works very hard to keep its delinquency percentages low, and not to repossess vehicles.  Accounts one day late are sent a notice in the mail.  Accounts three days late are contacted by telephone.  Notes from each telephone contact are electronically maintained in the Company’s computer system.  If a customer becomes severely delinquent in his or her payments, and management determines that timely collection of future payments is not probable, the Company will take steps to repossess the vehicle.  The Company attempts to resolve payment delinquencies amicably prior to repossessing a vehicle.  Periodically, the Company enters into contract modifications with its customers to extend the payment terms.  The Company only enters into a contract modification or extension if it believes such action will increase the amount of monies the Company will ultimately realize on the customer’s account. At the time of modification, the Company expects to collect amounts due including accrued interest at the contractual interest rate for the period of delay. Other than the extension of additional time, concessions are not granted to customers at the time of modifications. Modifications are minor and are made for pay-day changes, minor vehicle repairs and other reasons.  For those vehicles that are repossessed, the majority are returned or surrendered by the customer on a voluntary basis.  Other repossessions are performed by Company personnel or third party repossession agents.  Depending on the condition of a repossessed vehicle, it is either resold on a retail basis through a Company dealership, or sold for cash on a wholesale basis primarily through physical and/or on-line auctions.

The Company takes steps to repossess a vehicle when the customer becomes delinquent in his or her payments and management determines that timely collection of future payments is not probable.  Accounts are charged-off after the expiration of a statutory notice period for repossessed accounts, or when management determines that the timely collection of future payments is not probable for accounts where the Company has been unable to repossess the vehicle.  For accounts with respect to which the vehicle was repossessed, the fair value of the repossessed vehicle is charged as a reduction of the gross finance receivable balance charged-off.  On average, accounts are approximately 71 days past due at the time of charge-off.  For previously charged-off accounts that are subsequently recovered, the amount of such recovery is credited to the allowance for credit losses.

The Company maintains an allowance for credit losses on an aggregate basis, as opposed to a contract-by-contract basis, at an amount it considers sufficient to cover estimated losses inherent in the portfolio at the balance sheet date in the collection of its finance receivables currently outstanding.  The Company accrues an estimated loss as it is probable that the entire amount will not be collected and the amount of the loss can be reasonably estimated in the aggregate.  The allowance for credit losses is based primarily upon historical credit loss experience, with consideration given to recent credit loss trends and changes in contract characteristics (i.e., average amount financed and term), delinquency levels, collateral values, economic conditions and underwriting and collection practices.  The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations.  Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes that it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses.

The calculation of the allowance for credit losses uses the following primary factors:

·   The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time.

·   The average net repossession and charge-off loss per unit during the last eighteen months, segregated by the number of months since the contract origination date, and adjusted for the expected future average net charge-off loss per unit.  Approximately 50% of the charge-offs that will ultimately occur in the portfolio are expected to occur within 10-11 months following the contract origination date.  The average age of an account at charge-off date is 10.8 months.

·   The timing of repossession and charge-off losses relative to the date of sale (i.e., how long it takes for a repossession or charge-off to occur) for repossessions and charge-offs occurring during the last eighteen months.

A point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors to arrive at an overall reserve amount that management considers to be a reasonable estimate of incurred losses inherent in the portfolio at the balance sheet date that will be realized via actual charge-offs in the future.  Periods of economic downturn do not necessarily lead to increased credit losses because the Company provides basic affordable transportation to customers that, for the most part, do not have access to public transportation.  The effectiveness of the execution of internal policies and procedures within the collections area has historically had a more significant effect on collection results than macro-economic issues.

In most states, the Company offers retail customers who finance their vehicle the option of purchasing a payment protection plan product as an add-on to the installment sale contract.  This product contractually obligates the Company to cancel the remaining principal outstanding for any contract where the retail customer has totaled the vehicle, as defined, or the vehicle has been stolen.  The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred payment protection plan revenues, an additional liability is recorded for such difference.  No such liability was required at July 31, 2013 or April 30, 2013.

Inventory

Inventory consists of used vehicles and is valued at the lower of cost or market on a specific identification basis.  Vehicle reconditioning costs are capitalized as a component of inventory.  Repossessed vehicles and trade-in vehicles are recorded at fair value, which approximates wholesale value.  The cost of used vehicles sold is determined using the specific identification method.

Goodwill

Goodwill reflects the excess of purchase price over the fair value of specifically identified net assets purchased.  Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests at the Company’s year-end. The impairment tests are based on the comparison of the fair value of the reporting unit to the carrying value of such unit. If the fair value of the reporting unit falls below its carrying value, the Company performs the second step of the two-step goodwill impairment process to determine the amount, if any, that the goodwill is impaired.  The second step involves determining the fair value of the identifiable assets and liabilities and the implied goodwill.  The implied goodwill is compared to the carrying value of the goodwill to determine the impairment, if any.    There was no impairment of goodwill during fiscal 2013, and to date, there has been none in fiscal 2014.

Property and Equipment

Property and equipment are stated at cost.  Expenditures for additions, renewals and improvements are capitalized.  Costs of repairs and maintenance are expensed as incurred.  Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the lease period.  The lease period includes the primary lease term plus any extensions that are reasonably assured. Depreciation is computed principally using the straight-line method generally over the following estimated useful lives:

Furniture, fixtures and equipment	3 to 7 years
Leasehold improvements	5 to 15 years
Buildings and improvements	18 to 39 years

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying values of the impaired assets exceed the fair value of such assets.  Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Cash Overdraft

As checks are presented for payment from the Company’s primary disbursement bank account, monies are automatically drawn against cash collections for the day and, if necessary, are drawn against one of its revolving credit facilities.  Any cash overdraft balance principally represents outstanding checks, net of any deposits in transit that as of the balance sheet date had not yet been presented for payment.

Deferred Sales Tax

Deferred sales tax represents a sales tax liability of the Company for vehicles sold on an installment basis in the states of Alabama and Texas.  Under Alabama and Texas law, for vehicles sold on an installment basis, the related sales tax is due as the payments are collected from the customer, rather than at the time of sale.

Income Taxes

Income taxes are accounted for under the liability method.  Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates expected to apply in the years in which these temporary differences are expected to be recovered or settled. The quarterly provision for income taxes is determined using an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and the Company’s best estimate of nontaxable and nondeductible items of income and expense.

Occasionally, the Company is audited by taxing authorities.  These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law.  However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.  For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.  The Company applies this methodology to all tax positions for which the statute of limitations remains open.

The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions.  Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before fiscal 2010.

In fiscal 2010, the Internal Revenue Service (“IRS”) completed the examinations of the Company’s income tax returns for fiscal years 2008 and 2009.  As a result of the examinations, the IRS questioned whether deferred payment protection plan (“PPP”) revenue associated with the sale of certain receivables are subject to the acceleration of advance payments provision of the Internal Revenue Code and whether the Company may deduct losses on the sale of the PPP receivables in excess of the income recognized on the underlying contracts.  The issue was timing in nature and did not affect the overall tax provision, but affected the timing of required tax payments.

In January 2013, the Company received approval for a negotiated settlement with the IRS related to the examinations for income tax returns for fiscal years 2008 and 2009.  The negotiated settlement resulted in additional taxable income and a resulting tax payment for the exam period.  The question related to the timing of income recognition and therefore the additional income recognized in 2008 and 2009 will result in a corresponding tax deduction and resulting refund in the following fiscal year.  Under the settlement the Company paid an immaterial amount of interest to the IRS related to the additional tax payment.

The IRS is currently auditing the Company’s federal income tax returns for fiscal years 2010 and 2011.

The Company’s policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accrued penalties or interest as of July 31, 2013 or April 30, 2013.

Revenue Recognition

Revenues are generated principally from the sale of used vehicles, which in most cases includes a service contract and a payment protection plan product, interest income and late fees earned on finance receivables.  Revenues are net of taxes collected from customers and remitted to government agencies.  Cost of vehicle sales include costs incurred by the Company to prepare the vehicle for sale including license and title costs, gasoline, transport services and repairs.

Revenues from the sale of used vehicles are recognized when the sales contract is signed, the customer has taken possession of the vehicle and, if applicable, financing has been approved.  Revenues from the sale of service contracts are recognized ratably over the service contract period.  Service contract revenues are included in sales and the related expenses are included in cost of sales.  Payment protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” interest method over the life of the contract so that revenues are recognized in proportion to the amount of cancellation protection provided.  Payment protection plan revenues are included in sales and related losses are included in cost of sales as incurred.  Interest income is recognized on all active finance receivable accounts using the simple effective interest method.  Active accounts include all accounts except those that have been paid-off or charged-off.

Sales consist of the following:

	Three Months Ended July 31,
(In thousands)	2013		2012
Sales – used autos	$	97,306	$	86,884
Wholesales – third party		4,463		4,835
Service contract sales		3,914		3,524
Payment protection plan revenue		3,466		3,054
Total	$	109,149	$	98,297

Revenues from late fees were approximately $535,000 and $461,000 for the three months ended July 31, 2013 and 2012, respectively. Late fees are recognized when collected and are reflected in interest and other income.  Finance receivables more than 90 days past due were approximately $1.7 million and $638,000 at July 31, 2013 and 2012, respectively.

Earnings per Share

Basic earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period.  Diluted earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period plus dilutive common stock equivalents.  The calculation of diluted earnings per share takes into consideration the potentially dilutive effect of common stock equivalents, such as outstanding stock options and non-vested restricted stock, which if exercised or converted into common stock would then share in the earnings of the Company.  In computing diluted earnings per share, the Company utilizes the treasury stock method and anti-dilutive securities are excluded.

Stock-based compensation

The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant over the requisite service period.  The Company uses the Black Scholes option pricing model to determine the fair value of stock option awards.  The Company may issue either new shares or treasury shares upon exercise of these awards.  Stock-based compensation plans, related expenses and assumptions used in the Black Scholes option pricing model are more fully described in Note I.

Treasury Stock

The Company purchased 9,020 shares of its common stock during the first three months of fiscal 2014 for a total cost of $384,000 and 215,846 shares for a total cost of $9.4 million during the first three months of fiscal 2013.  Treasury stock may be used for issuances under the Company’s stock-based compensation plans or for other general corporate purposes.

Recent Accounting Pronouncements

Occasionally, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies which the Company adopts as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards which are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

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Note C - Finance Receivables (Details) - Credit quality information for finance receivables (USD $)	Jul. 31, 2013	Apr. 30, 2013	Jul. 31, 2012
Credit quality information for finance receivables [Abstract]
Current (in Dollars)	$ 295,971,000	$ 284,441,000	$ 259,012,000
Current	77.91%	78.27%	78.50%
3 - 29 days past due (in Dollars)	63,260,000	60,477,000	57,575,000
3 - 29 days past due	16.65%	16.64%	17.45%
30 - 60 days past due (in Dollars)	14,326,000	10,232,000	9,968,000
30 - 60 days past due	3.77%	2.82%	3.02%
61 - 90 days past due (in Dollars)	4,680,000	6,280,000	2,742,000
61 - 90 days past due	1.23%	1.73%	0.83%
> 90 days past due (in Dollars)	1,683,000	1,964,000	638,000
> 90 days past due	0.44%	0.54%	0.20%
Total (in Dollars)	$ 379,920,000	$ 363,394,000	$ 329,935,000
Total	100.00%	100.00%	100.00%

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Note D - Property and Equipment (Tables)

3 Months Ended

Jul. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

(In thousands)	July 31, 2013			April 30, 2013
Land	$	6,211		$	6,211
Buildings and improvements		10,873			10,715
Furniture, fixtures and equipment		10,269			9,956
Leasehold improvements		16,648			15,874
Construction in progress		1,706			1,246
Less accumulated depreciation and amortization		(14,558	)		(13,821	)
	$	31,149		$	30,181

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Note J - Supplemental Cash Flow Information

3 Months Ended

Jul. 31, 2013

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

J - Supplemental Cash Flow Information

Supplemental cash flow disclosures are as follows:

	Three Months Ended July 31,
(in thousands)	2013		2012
Supplemental disclosures:
Interest paid	$	801	$	665
Income taxes paid, net		378		1,286
Non-cash transactions:
Inventory acquired in repossession and payment protection plan claims		10,382		9,200

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Note G - Fair Value Measurements (Tables)

3 Months Ended

Jul. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

	July 31, 2013				April 30, 2013
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash	$	288	$	288	$	272	$	272
Finance receivables, net		301,112		237,450		288,049		227,121
Accounts payable		9,226		9,226		8,832		8,832
Revolving credit facilities		99,497		99,497		99,563		99,563

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Note E - Accrued Liabilities (Tables)

3 Months Ended

Jul. 31, 2013

Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

(In thousands)	July 31, 2013		April 30, 2013
Employee compensation	$	4,073	$	5,227
Cash overdrafts (see Note B)		2,456		1,537
Deferred service contract revenue (see Note B)		3,629		3,464
Deferred sales tax (see Note B)		2,604		2,436
Interest		226		237
Other		3,426		3,224
	$	16,414	$	16,125

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Document And Entity Information	3 Months Ended
	Jul. 31, 2013	Aug. 28, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAS CARMART INC
Document Type	10-Q
Current Fiscal Year End Date	--04-30
Entity Common Stock, Shares Outstanding		9,015,929
Amendment Flag	false
Entity Central Index Key	0000799850
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jul. 31, 2013
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

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Note F - Debt Facilities (Tables)

3 Months Ended

Jul. 31, 2013

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

(In thousands)
		Aggregate	Interest			Balance at
		Amount	Rate	Maturity		July 31, 2013	April 30, 2013
Revolving credit facilities	$	145,000	LIBOR + 2.25%	June 2016	$	99,497	$	99,563