Car-Mart revenue a record for its 2Q

Over $21M profit exceeds forecasts

Rogers-based America’s Car-Mart reported record revenue for its second quarter Monday and handily bested analysts’ estimates for profits.

The buy-here pay-here used-car dealer reported profit of $21.19 million, or $3.05 a share, for the company’s fiscal 2021 second quarter that ended Oct. 31.

That’s an increase of 52% when compared with $13.88 million, or $2 a share, the company booked for the same quarter in fiscal 2020.

A consensus of three analysts predicted earnings per share of $2.29, according to Yahoo Finance.

“We continue to make significant investments in the areas of customer experience, inventory procurement and recruiting and training. Improvements in these key areas will drive increased traffic and productivity,” Jeff Williams CEO of Car-Mart, said in a statement.

The company posted revenue of $223.36 million for the quarter, up 17% when compared with $190.31 million for the same quarter last year.

A consensus of three analysts had forecast revenue of $205.99 million, according to Yahoo Finance.

“Our overall revenue increase was driven by a 15.3% increase in the average retail

Shares closed at $101.96, up $4.35, or 4.46%, in trading on the Nasdaq. Shares have traded as low as $35.18 and as high as $129.70 over the past year.

sales price combined with a $4.1 million increase in interest income,” Vicki Judy, Car-Mart’s chief financial officer, said in a statement. “Our second quarter sales volumes were impacted by the continued tight supply of vehicles at lower price points resulting in a lack of an affordable alternative for some of our customers.”

Car-Mart released earnings after market close on Monday. Shares closed at $101.96, up $4.35, or 4.46%, in trading on the Nasdaq. Shares have traded as low as $35.18 and as high as $129.70 over the past year.

The company will hold its conference call at 10 a.m. today.

The live audio may be accessed by calling (877) 776-4031 with the conference ID 4393992. It will also be available via webcast on the company’s investor relations page.

Car-Mart sold 14,022 vehicles in its second quarter, up nearly 2% when compared with 13,763 sold in the same period last year. The average retail sale price per vehicle was $13,365, up 15.3% when compared with $11,589 for the second quarter of last year.

The company has new lots under development in Edmond and Norman, Okla., according to the release.

In May, Car-Mart said it would relocate its headquarters from Bentonville to nearby Rogers.

In late March, Car-Mart said thatit would borrow up to an additional $30 million under an established loan and security agreement as a precautionary measure in the face of the covid-19 pandemic.

Car-Mart has more than 81,000 customers and more than 2,000 employees, and it operates 150 dealerships in 12 states.