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Apr 30, 2020
Car-Mart Q4 2020 Earnings Report
America's Car-Mart reported diluted earnings per share of $1.35 on record revenues.
Key Takeaways
America's Car-Mart reported a strong Q4 performance with record revenues of $196 million and diluted earnings per share of $1.35, despite an $11.7 million pretax charge due to the COVID-19 pandemic. The company focused on customer service and adapted operations to the challenging environment.
Revenues reached a record $196 million.
Diluted earnings per share were reported at $1.35.
The company increased the allowance for credit losses due to the COVID-19 pandemic, resulting in an $11.7 million pre-tax charge.
Car-Mart focused on customer service and adapted operations during the pandemic, including launching curbside and home delivery processes.
Car-Mart
Car-Mart
Forward Guidance
The company anticipates that disruptions in the consumer credit markets and in vehicle supply channels will present positive opportunities for the business.
Positive Outlook
- Investing in the business, including recruiting, training, and retention of quality associates.
- Improving operations, with significant emphasis on vehicle inventory.
- Delivering an exceptional customer experience.
- Significant opportunities to gain market share from existing locations.
- New lot openings and strategic acquisitions are expected to be part of the plan moving forward.
Challenges Ahead
- Uncertainty of how customers pay and react in this new environment.
- COVID-19 has impacted customers and resulted in increased past-due amounts as a percentage of receivables.
- Potential disruptions in the consumer credit markets.
- Potential disruptions in vehicle supply channels.
- Risk of exposure to the virus.