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Jul 31, 2020
Car-Mart Q1 2021 Earnings Report
America's Car-Mart reported strong first quarter results with increased revenues and earnings per share.
Key Takeaways
America's Car-Mart announced strong Q1 2021 results, with revenue reaching $188 million and diluted earnings per share of $2.83. The company saw top-line growth of over 9%, a significant decrease in net charge-offs, and leveraged selling, general, and administrative costs. They opened two new dealerships and have two more in progress.
Revenue increased to $188 million, driven by a 12.2% increase in the average retail sales price and a $3.3 million increase in interest income.
Diluted earnings per share reached $2.83.
Net charge-offs decreased to 4.8% of average finance receivables.
The company opened two new dealerships during the quarter.
Car-Mart
Car-Mart
Forward Guidance
The company anticipates significant growth opportunities in existing towns and potential acquisition opportunities moving forward. Their goal is to continue growing at a rate that supports customers at the highest levels.
Positive Outlook
- Growing customer base from existing dealerships.
- Significant growth opportunities in towns already served.
- Potential acquisition opportunities moving forward.
- Strong balance sheet allowing for nimbleness.
- Continuing investments in recruiting, training, and retention of associates.
Challenges Ahead
- Impacted first quarter sales volumes due to reduced inventory levels.
- Lower customer traffic due to the pandemic.
- Continuing challenges related to the pandemic.
- Social unrest.
- Need to quickly improve in all areas.