Automotive retailer America's Car-Mart, Inc. (CRMT) said Friday that its profit for the second quarter increased from the prior year on higher same store revenue and improved customer base. Earnings per share exceeded analysts' expectations. Looking forward, the company anticipates the demand for vehicles and services to continue to increase in the future.
For the quarter, the Bentonville, Arkansas-based company's net income attributable to common shareholders increased to $6.3 million or $0.53 per share from $3.87 million or $0.33 per share in the previous year. On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 14.7% to $82.56 million from $71.98 million in the same quarter last year. Three analysts estimated revenues of $80.56 million for the quarter.
For the quarter, customer base improved 3.3% to over 45,500. Sales for the period increased to $75.24 million from $65.41 million in the prior year, with same store revenue increase of 11.4%. Interest income was $7.32 million, up from $6.57 million a year ago.
The company said its retail unit sales increased 14.5%, with 7,965 vehicles sold in the second quarter, up from 6,958 vehicles sold in the same period last year.
Provision for credit losses was 20.1% of sales, compared to 22% in the previous year. Net charge-offs as a percentage of average finance receivables was 5.3%, in comparison with 6.2% in the prior year.
For the six-month period, the company's net income increased to $13.34 million or $1.13 per share from $9.17 million or $0.78 per share in the same period last year. Total revenues for the period grew 12.6% to $166.32 million from $147.64 million in the preceding year.
William Henderson, president and chief executive officer said, "We anticipate the demand for our vehicles and service to continue to increase into the future. Continuing credit constrictions for vehicle consumers and most of our competitors will enhance Car-Mart's position as the leader in our industry."
CRMT closed Thursday's regular trading at $23.14 on the Nasdaq.
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