Mon, Sep 16, 4:12 PM (96 days ago)
America's Car-Mart, Inc. reported a decline in revenue for the first quarter of fiscal 2025, with total revenues decreasing by 5.2% to $347.8 million compared to the same quarter in fiscal 2024. This decline was driven by a 9.6% drop in retail units sold, although it was partially offset by a 7.2% increase in interest income. The company’s gross profit margin improved slightly to 35.0%, supported by better pricing discipline and operational efficiencies. However, the provision for credit losses remained high at 33.2% of sales, reflecting challenges in customer affordability amid inflationary pressures. The balance sheet showed a 2.5% increase in finance receivables, totaling $1.13 billion, while inventory rose by $7.1 million, influenced by recent acquisitions. The company’s liquidity is supported by $4.7 million in cash and $33.5 million available under credit facilities. Recent amendments to credit agreements have imposed restrictions on stock repurchases and dividends, emphasizing the need for careful capital management. Overall, while the company is focused on operational improvements and maintaining credit quality, the economic environment presents ongoing challenges.