UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 19, 2013
America's Car-Mart Inc.
(Exact name of registrant as specified in its charter)
Texas | 0-14939 | 63-0851141 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
802 Southeast Plaza Avenue, Suite 200, Bentonville, Arkansas | 72712 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (479) 464-9944
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On November 19, 2013, America's Car-Mart, Inc. issued a press release announcing its operating results for the second fiscal quarter ended October 31, 2013. The press release contains certain financial, operating and other information for the period ended October 31, 2013. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
In accordance with General Instruction B.2., the information contained in this Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, as amended. America's Car-Mart, Inc. undertakes no obligation to update or revise this information.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1
Press release announcing operating results for the second fiscal quarter ended October 31, 2013.
SIGNATURE
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 hereunto duly authorized.
America's Car-Mart Inc.
(Registrant) |
||
November 20, 2013
(Date) |
/s/ JEFFREY A. WILLIAMS
Jeffrey A. Williams Chief Financial Officer and Secretary (Principal Financial and Accounting Officer) |
Exhibit Index
Exhibit 99.1
|
Press release announcing operating results for the second fiscal quarter ended October 31, 2013. |
EXHIBIT 99.1
BENTONVILLE, Ark., Nov. 19, 2013 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its operating results for the second quarter of fiscal 2014.
Highlights of second quarter operating results:
Highlights of six month operating results:
"We are pleased with our top line growth in this presently challenging competitive environment. We are excited about our future and proud of the great work of our associates as they take care of our customers. We are highly focused on increasing customer success and tightening expenses while ensuring that our infrastructure remains solid to support the business," said William H. ("Hank") Henderson, President and Chief Executive Officer of America's Car-Mart. "I would like to note the tireless efforts of our Area Operations Managers and our General Managers as they work hand-in-hand to move our Company forward. They are dedicated to ensuring we are doing everything possible to accomplish our mission of earning the repeat business of our customers by providing quality vehicles, affordable payment terms and excellent service. The roles of Area Operations Manager and General Manager are critical to our future and we are fortunate to have such high quality individuals serving in these capacities."
"We are convinced that our past and future success can and will be directly attributed to the fact that our General Managers truly 'own' their individual dealerships and make the key decisions around purchasing, underwriting, sales and collections," added Mr. Henderson. "Our infrastructure exists to support our General Managers as they run their businesses at the local level. We believe that many companies that are competing for our customers on the funding side are not focused on earning repeat business tied to customer success. This is a reality that is having a negative effect on our business especially on the provision for credit loss line. We remain committed to the belief that the only way to run this business for the long-term is to do everything possible to help customers successfully complete the terms of their contracts. By focusing on customer success, we will continue to fulfill our vision of being the most respected buy-here-pay-here organization in the country."
"We finished the quarter with 129 dealerships, an increase of 12 from this time last year. We have several new openings planned for the next few months and we continue to expect to open a total of 12 for the fiscal year," added Mr. Henderson. "We sold 10,608 retail units during the quarter, an 8.1% increase. Same store revenues were up 3.8% although the average retail units sold per dealership per month decreased for the quarter to 27.6 which is related to the intense competitive environment that we are facing. We remain convinced that the business model will continue to support significant unit volume expansion. We are excited about our future and we will continue to fight to retain our better customers."
"A 10.2% increase in revenues in this environment is significant and something we are very proud of. We will continue to add new dealerships in great new towns but at the same time remain disciplined on our underwriting and deal structures, something that has negatively affected productivity especially in our older more mature dealerships. Even in the face of increased competition, our down-payment percentage was down only slightly from last year. Also, we are pleased that the overall contract term during the quarter was flat sequentially at 29.5 months (28.3 at this time last year). For competitive reasons, we may have to continue to consider offering slightly longer terms and somewhat lower down payments into the future. We will continue to work hard to structure our contracts to maximize customer success in order to earn repeat business," said Jeff Williams, Chief Financial Officer of America's Car-Mart. "Our provision for credit losses is certainly higher than we would like, but our expected cash-on-cash returns are very attractive even with the higher credit loss amounts. We will continue to ensure that we maximize efficiencies on the operating expense side of the business in light of the competition. We remain committed to always being a very low cost operator in a tough business."
"As we have said in the past, we believe it is prudent to maintain a very conservative balance sheet, especially in the current operating environment. Our debt to equity ratio was 47.0% and our debt to finance receivables ratio was 26.1% at the end of the quarter. We repurchased 3,600 shares of common stock during the quarter and since February 1, 2010 we have repurchased 2.9 million shares, or almost 25% of our Company. We believe in the long-term value of our Company and plan to invest in the repurchase program when favorable conditions are present. Our first priority for capital allocation will continue to be to support the healthy growth of the business," added Mr. Williams. "We will continue to stay focused on cash returns and aggressive expense management, and we believe our future is bright."
Conference Call
Management will be holding a conference call on Wednesday, November 20, 2013 at 11:00 a.m. Eastern Time to discuss fourth quarter results. A live audio of the conference call will be accessible to the public by calling (877) 776-4031. International callers dial (631) 291-4132. Callers should dial in approximately 10 minutes before the call begins. A conference call replay will be available one hour following the call for thirty days and can be accessed by calling (855) 859-2056 (domestic) or (404) 537-3406 (international), conference call ID # 10344857.
About America's Car-Mart
America's Car-Mart, Inc. (the "Company") operates 129 automotive dealerships in ten states and 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. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in small cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information, including investor presentations, on America's Car-Mart, please visit our website at www.car-mart.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company's future objectives, plans and goals, as well as the Company's intent, beliefs and current expectations regarding future operating performance, and can generally be identified by words such as "may," "will," "should," "could, "believe," "expect," "anticipate," "intend," "plan," "foresee," and other similar words or phrases. Specific events addressed by these forward-looking statements include, but are not limited to:
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:
Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company's SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
America's Car-Mart, Inc. | |||||
Consolidated Results of Operations | |||||
(Operating Statement Dollars in Thousands) | |||||
% Change | As a % of Sales | ||||
Three Months Ended | 2013 | Three Months Ended | |||
October 31, | vs. | October 31, | |||
2013 | 2012 | 2012 | 2013 | 2012 | |
Operating Data: | |||||
Retail units sold | 10,608 | 9,814 | 8.1% | ||
Average number of stores in operation | 128 | 116 | 10.3 | ||
Average retail units sold per store per month | 27.6 | 28.2 | (2.1) | ||
Average retail sales price | $ 9,710 | $ 9,515 | 2.0 | ||
Same store revenue growth | 3.8% | (4.8)% | |||
Net charge-offs as a percent of average Finance Receivables | 6.9% | 6.5% | |||
Collections as a percent of average Finance Receivables | 13.6% | 14.5% | |||
Average percentage of Finance Receivables-Current (excl. 1-2 day) | 81.8% | 82.4% | |||
Average down-payment percentage | 6.2% | 6.4% | |||
Period End Data: | |||||
Stores open | 129 | 117 | 10.3% | ||
Accounts over 30 days past due | 4.7% | 4.3% | |||
Finance Receivables, gross | $ 388,799 | $ 339,248 | 14.6% | ||
Operating Statement: | |||||
Revenues: | |||||
Sales | $ 107,765 | $ 98,194 | 9.7% | 100.0% | 100.0% |
Interest income | 13,666 | 12,025 | 13.6 | 12.7 | 12.2 |
Total | 121,431 | 110,219 | 10.2 | 112.7 | 112.2 |
Costs and expenses: | |||||
Cost of sales | 62,823 | 56,204 | 11.8 | 58.3 | 57.2 |
Selling, general and administrative | 19,581 | 17,351 | 12.9 | 18.2 | 17.7 |
Provision for credit losses | 28,296 | 23,647 | 19.7 | 26.3 | 24.1 |
Interest expense | 722 | 708 | 2.0 | 0.7 | 0.7 |
Depreciation and amortization | 795 | 696 | 14.2 | 0.7 | 0.7 |
Gain on Disposal of Property and Equipment | (2) | -- | -- | -- | -- |
Total | 112,215 | 98,606 | 13.8 | 104.1 | 100.4 |
Income before taxes | 9,216 | 11,613 | 8.6 | 11.8 | |
Provision for income taxes | 3,411 | 4,335 | 3.2 | 4.4 | |
Net income | $ 5,805 | $ 7,278 | 5.4 | 7.4 | |
Dividends on subsidiary preferred stock | $ (10) | $ (10) | |||
Net income attributable to common shareholders | $ 5,795 | $ 7,268 | |||
Earnings per share: | |||||
Basic | $ 0.64 | $ 0.80 | |||
Diluted | $ 0.61 | $ 0.76 | |||
Weighted average number of shares outstanding: | |||||
Basic | 9,016,820 | 9,105,921 | |||
Diluted | 9,484,654 | 9,579,409 | |||
America's Car-Mart, Inc. | |||||
Consolidated Results of Operations | |||||
(Operating Statement Dollars in Thousands) | |||||
% Change | As a % of Sales | ||||
Six Months Ended | 2013 | Six Months Ended | |||
October 31, | vs. | October 31, | |||
2013 | 2012 | 2012 | 2013 | 2012 | |
Operating Data: | |||||
Retail units sold | 21,251 | 19,567 | 8.6% | ||
Average number of stores in operation | 126 | 115 | 9.6 | ||
Average retail units sold per store per month | 28.1 | 28.4 | (1.1) | ||
Average retail sales price | $ 9,773 | $ 9,549 | 2.3 | ||
Same store revenue growth | 4.6% | 0.1% | |||
Net charge-offs as a percent of average Finance Receivables | 13.1% | 12.4% | |||
Collections as a percent of average Finance Receivables | 27.3% | 29.4% | |||
Average percentage of Finance Receivables-Current (excl. 1-2 day) | 81.1% | 82.0% | |||
Average down-payment percentage | 6.4% | 6.8% | |||
Period End Data: | |||||
Stores open | 129 | 117 | 10.3% | ||
Accounts over 30 days past due | 4.7% | 4.3% | |||
Finance Receivables, gross | $ 388,799 | $ 339,248 | 14.6% | ||
Operating Statement: | |||||
Revenues: | |||||
Sales | $ 216,914 | $ 196,491 | 10.4% | 100.0% | 100.0% |
Interest income | 27,061 | 23,728 | 14.0 | 12.5 | 12.1 |
Total | 243,975 | 220,219 | 10.8 | 112.5 | 112.1 |
Costs and expenses: | |||||
Cost of sales | 125,445 | 112,389 | 11.6 | 57.8 | 57.2 |
Selling, general and administrative | 39,395 | 35,207 | 11.9 | 18.2 | 17.9 |
Provision for credit losses | 54,826 | 45,310 | 21.0 | 25.3 | 23.1 |
Interest expense | 1,512 | 1,361 | 11.1 | 0.7 | 0.7 |
Depreciation and amortization | 1,572 | 1,358 | 15.8 | 0.7 | 0.7 |
Loss on Disposal of Property and Equipment | 39 | -- | -- | 0.0 | -- |
Total | 222,789 | 195,625 | 13.9 | 102.7 | 99.6 |
Income before taxes | 21,186 | 24,594 | 9.8 | 12.5 | |
Provision for income taxes | 7,840 | 9,198 | 3.6 | 4.7 | |
Net income | $ 13,346 | $ 15,396 | 6.2 | 7.8 | |
Dividends on subsidiary preferred stock | $ (20) | $ (20) | |||
Net income attributable to common shareholders | $ 13,326 | $ 15,376 | |||
Earnings per share: | |||||
Basic | $ 1.48 | $ 1.67 | |||
Diluted | $ 1.40 | $ 1.59 | |||
Weighted average number of shares outstanding: | |||||
Basic | 9,018,524 | 9,205,332 | |||
Diluted | 9,488,753 | 9,665,739 | |||
America's Car-Mart, Inc. | ||
Consolidated Balance Sheet and Other Data | ||
(Dollar in Thousands) | ||
October 31, | April 30, | |
2013 | 2013 | |
Cash and cash equivalents | $ 341 | $ 272 |
Finance receivables, net | $ 308,100 | $ 288,049 |
Inventory | $ 30,217 | $ 32,827 |
Total assets | $ 376,465 | $ 358,265 |
Total debt | $ 101,650 | $ 99,563 |
Treasury stock | $ 95,078 | $ 94,547 |
Stockholders' equity | $ 216,151 | $ 202,268 |
Shares outstanding | 9,017,329 | 9,023,290 |
Finance receivables: | ||
Principal balance | $ 388,799 | $ 363,394 |
Deferred revenue - payment protection plan | (13,454) | (12,910) |
Allowance for credit losses | (80,699) | (75,345) |
Finance receivables, net of allowance and deferred revenue | $ 294,646 | $ 275,139 |
Allowance as % of principal balance | 21.50% | 21.50% |
Changes in allowance for credit losses: | ||
Six Months | ||
Ended October 31, | ||
2013 | 2012 | |
Balance at beginning of period | $ 75,345 | $ 65,831 |
Provision for credit losses | 54,826 | 45,310 |
Charge-offs, net of collateral recovered | (49,472) | (40,704) |
Balance at end of period | $ 80,699 | $ 70,437 |
CONTACT: William H. ("Hank") Henderson, CEO at (479) 464-9944 or Jeffrey A. Williams, CFO at (479) 418-8021