Car-Mart says revenue, profit in 2Q set records
Rogers-based used-car dealer America’s Car-Mart reported record revenue and profit for its second quarter that beat analysts estimates Wednesday despite challenges placed on inventory by high demand for used cars in the marketplace.
The buy-here pay-here car dealer reported profit of $22.89 million, or $3.33 per share for the period ended Oct. 31, compared with $21.19 million or $3.05 per share for the quarter a year ago. A consensus of four analysts had predicted earnings of $3.20 cents per share, according to Yahoo Finance. The company released earnings after market close on Wednesday.
Revenue for the second quarter of 2021 was $288 million, a new high and up nearly 30% when compared with $223 million for the same quarter a year ago. A consensus of three analysts expected revenue of $269.76 million, according to Yahoo Finance.
“We believe productivity would have been even better had availability of vehicles at lower price points been at more normal levels,” Jeff Williams, president and chief executive officer, said in a statement. “The investments we are making in our inventory procurement area have allowed us to consistently offer better quality vehicles to our customers and keep our dealerships sufficiently stocked during this difficult supply period.
Car-Mart will host a conference call with analysts at 10 a.m. today. The live audio may be accessed by calling (877) 776-4031 with the conference ID 1075918 and it will be webcast on the company’s investor relations page.
Company shares closed
at $123.37, down $3.04 or 2.4% in trading Wednesday on the Nasdaq exchange, before earnings were released. Shares have traded as low as $99.50 and as high as $177.45 over the past year.
Williams also said the best use of the company’s capital is to grow market share from its dealership base and that the company plans to continue to open new dealerships moving forward. He said Car-Mart will add a new dealership in Norman, Okla., in the next few weeks and opened one in El Reno, Okla., in the second quarter. He said CarMart is also looking at expanding through acquisition.
During the second quarter, Car-Mart sold its vehicles at an average retail price per vehicle of $16,179, up 21% from the year ago quarter. The number of vehicles sold in the quarter was 14,824 compared with 14,022 for the same period last year, a 5.7% increase in units sold.
In August, America’s CarMart ranked 67th on Forbes magazine’s 2021 list of America’s Best Small Companies. The company is celebrating its 40th year in business and operates 152 dealerships in 12 states.
In December, Car-Mart began using a new logo, keeping the company’s red, white and blue color scheme and featuring an open road. The company’s new tag-line is “Keeping You on the Road.”