Car-Mart reporting record sales, revenue for second quarter

America’s Car-Mart on Monday reported quarterly profits that once again bested analyst’s estimates along with record sales.

The Bentonville-based buy-here pay-here used-car dealer said it saw earnings of $13.9 million, or $2 per share, in its second quarter, ended Oct. 31, for its fiscal year 2020. That compares to $11.3 million, or $1.58 per share, for the same quarter a year ago.

According to Yahoo Finance, a consensus of five analysts predicted the company would post profits of $1.81 a share for the quarter.

Revenue stood at $190 million for the quarter, a new record according to the company, compared with $167 million for the second quarter of fiscal 2019. Five analysts predicted average revenue of $169.59 million for the period.

The report was released after market close on Monday.

Car-Mart shares rose $3.06, or about 3.5%, to close Monday at $90.72 in trading on the Nasdaq exchange. Shares have traded as low as $66.26 and as high as $104.05 over the past year.

This is the seventh quarter in a row that Car-Mart’s profits exceeded the average analyst prediction.

Jeff Williams, the usedcar dealer’s president and chief executive officer, said in a news release the company’s strong showing and continued success is a result

of Car-Mart’s commitment to quality customer service.

“Our new vision statement — ‘To be America’s best auto sales and finance company in the eyes of our customers and associates while improving the communities we serve’ — is our purpose, and we have a sense of urgency to get better every day,” Williams said in a statement.

Car-Mart’s customers often do not have access to traditional vehicle financing because of poor credit or no

credit history.

The company opened two Arkansas dealerships during the first quarter and Williams said dealerships are in the works for Chattanooga, Tenn., and Cabot, and work has begun on a new dealership in Edmond, Okla.

Car-Mart operates 145 dealerships in Alabama, Arkansas, Georgia, Indiana, Iowa, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee and Texas.

In September, Car-Mart named Leonard Walthall the company’s new chief operating officer.

Walthall, 53, has been with the company since 1989 and recently served as

its field operations officer.

The company had been without a COO for years.

Car-Mart sold 13,763 vehicles in its second quarter, up nearly 9% when compared with 12,667 sold in the same period last year. Revenue at stores open at least a year, or same-store sales, was up 12.2%.

Car-Mart lots, on average, sold 31.6 vehicles per lot per month during the period, up from 29.7, a jump of 6.4% when compared with the second quarter last year. The average sale price per vehicle for the period was $11,589, up 5.1% from the second quarter of 2019.