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Oct 31, 2020
Car-Mart Q2 2021 Earnings Report
America's Car-Mart reported diluted earnings per share of $3.05 on record revenues.
Key Takeaways
America's Car-Mart reported a strong second quarter with record revenues driven by a significant increase in average retail sales price and interest income, despite challenges from a tight used vehicle market.
Diluted earnings per share reached $3.05.
Record revenues of $223 million were achieved.
Average retail sales price increased by 15.3%.
Net charge-offs decreased to 4.7% of average finance receivables.
Forward Guidance
The company will prioritize capital allocation to gain market share, continue to invest in customer experience, inventory procurement, and recruiting and training, and focus on a strong balance sheet and cash flows while investing for the future.
Positive Outlook
- Building an efficient, seamless, digital and customer-friendly sales process.
- Aggressively marketing the lower total cost of ownership advantage.
- Promoting the advantages that consumers realize when they are part of the Car-Mart family.
- Prioritizing capital allocation to gain market share in current areas.
- Superior proposition, local presence, and genuine commitment to customers.
Challenges Ahead
- Tight used vehicle market, especially at lower price points.
- Impact on sales volumes due to vehicle supply issues.
- Lack of affordable alternatives for some customers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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