(RTTNews) - Tuesday, automotive dealer America's Car-Mart Inc. (CRMT: News ) reported a growth in profit for the first quarter, as revenue increased 10.7%, reflecting higher sales volumes as well as improved average retail sales price.

Net income for the quarter was $7.02 million or $0.60 per share, higher than $5.28 million or $0.45 per share in the same quarter last year.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share. Analysts' estimates typically exclude special items.

Quarterly revenues increased to $83.8 million from $75.7 million in the same period of the prior year.

Bentonville, Arkansas-based company noted that retail unit sales for the quarter increased 11.3%, with 8,182 vehicles sold in the current quarter, up from 7,353 in the same period last year. Same store revenue increased 8.5% for the quarter.
Average retail sales price for the quarter increased to $9.04 million from $8.95 million in the previous year. Interest income edged up to $6.74 million from $6.44 million in the year-ago quarter. The provision for credit losses was 19.5% of sales, down from 20.9% a year ago.

William Henderson, president and chief executive officer, said that the company's revenues has been positively impacted by a number of factors including focus on improving per location volume levels, better lot level execution in all areas of its business, expanding market which has resulted from credit constrictions for vehicle consumers and most of its competitors, and increase in market share for its current service areas.

"The significant infrastructure investments we have made over the last few years will allow us to support higher sales volumes at existing locations and to continue our 'grass-fire' growth approach in adding new locations," Henderson added.

CRMT closed Monday's regular trading at 20.60 per share on the Nasdaq.

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by RTT Staff Writer

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