NASDAQ$CRMT

Americas Car-Mart Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

America's Car-Mart reported diluted earnings per share of $3.05 on record revenues.

America's Car-Mart reported a strong second quarter with record revenues driven by a significant increase in average retail sales price and interest income, despite challenges from a tight used vehicle market.

  • Diluted earnings per share reached $3.05.
  • Record revenues of $223 million were achieved.
  • Average retail sales price increased by 15.3%.
  • Net charge-offs decreased to 4.7% of average finance receivables.

Headline financials

Total Revenue

$223M

Previous: $190M+17.4%
EPS (adj)

$3.05

Previous: $2.00+52.5%
Net charge-offs

$4.70

No prior period
SG&A Expense

$16.50

Previous: $16.90-2.4%
Capital Expenditures

-$5.04M

Previous: -$1.66M-203.6%
Free Cash Flow

$16.2M

Previous: $12.2M+32.1%
Net Income

$21.2M

Previous: $13.9M+52.6%
Operating Income

-$6.68M

Previous: -$11.4M+41.4%
Gross Profit

$107M

Previous: $90.5M+17.9%
Cash & Equivalents

$19.5M

Previous: $2.47M+688.2%
Total Assets

$716M

Previous: $575M+24.5%
Stock-Based Comp

$1.4M

Previous: $592K+135.6%

Revenue & EPS history

Car-Mart · Revenue · Quarterly

$223M

Q2 2021+17.4%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company will prioritize capital allocation to gain market share, continue to invest in customer experience, inventory procurement, and recruiting and training, and focus on a strong balance sheet and cash flows while investing for the future.

Tailwinds

  • Building an efficient, seamless, digital and customer-friendly sales process.
  • Aggressively marketing the lower total cost of ownership advantage.
  • Promoting the advantages that consumers realize when they are part of the Car-Mart family.
  • Prioritizing capital allocation to gain market share in current areas.
  • Superior proposition, local presence, and genuine commitment to customers.

Headwinds

  • Tight used vehicle market, especially at lower price points.
  • Impact on sales volumes due to vehicle supply issues.
  • Lack of affordable alternatives for some customers.
  • Impacted productivity per dealership.
  • Returning selling, general, and administrative expenses to pre-pandemic levels

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.0%

Avg return

Earnings day

+2.9%

Avg return

5 days after

-1.5%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+27.9%

Q4 2022

Best reaction

-26.3%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+9.1%+75.5%
Q3 2026-8.0%-36.2%-41.8%
Q2 2026+10.9%+17.8%+3.9%
Q1 2026-18.0%-15.7%-31.5%
Q4 2025+0.0%-0.6%+22.8%
Q3 2025+15.9%+15.7%+13.8%
Q2 2025+17.4%+22.0%+7.7%
Q1 2025-11.6%-15.4%-29.0%
Q4 2024-2.8%-4.6%+7.0%
Q3 2024+5.6%+0.8%-5.2%
Q2 2024-21.3%-25.1%-21.1%
Q1 2024-16.5%-3.2%-4.6%
Q4 2023+0.1%-4.9%+5.9%
Q3 2023-7.0%-5.6%-15.0%
Q2 2023-4.9%-1.6%-1.1%
Q1 2023-26.3%-37.0%-44.6%
Q4 2022+27.9%+43.8%+24.7%
Q3 2022+8.0%-5.1%-8.8%
Q2 2022-10.0%-13.6%-14.8%
Q1 2022-20.1%-24.0%-26.4%
Q4 2021+8.7%+12.0%-3.3%
Q3 2021+4.0%+0.6%+17.1%
Q2 2021+7.5%+4.1%+15.2%
Q1 2021+5.8%+2.5%-11.3%
Q4 2020+9.1%+14.1%+23.8%
Q3 2020+6.7%-4.7%-66.7%
Q2 2020+14.0%+15.6%+24.2%
Q1 2020+3.5%-0.0%+6.2%
Q4 2019-8.7%-12.5%-14.7%
Q3 2019+3.4%+4.6%+6.0%
Q2 2019+16.4%+2.7%-2.2%
Q1 2019+25.6%+30.1%+27.3%
Q4 2018+14.7%+18.4%+23.4%
Q3 2018+3.8%+11.0%+7.7%
Q2 2018+11.3%+10.5%+5.0%
Q1 2018+1.9%+4.9%+8.7%
Q4 2017+6.9%+6.1%+5.7%
Q3 2017-15.6%-18.0%-11.3%
Q2 2017+2.2%+4.2%+7.2%
Q1 2017+14.2%+25.0%+18.7%
Q4 2016-6.9%+3.3%+9.9%
Q3 2016-3.9%
Q2 2016-12.2%
Q1 2016-12.8%
Q4 2015+0.4%
Q3 2015+3.4%
Q2 2015+12.9%
Q1 2015+11.7%
Q4 2014-1.8%
Q3 2014-4.1%
Q2 2014-5.4%
Q1 2014-5.2%
Q4 2013+0.4%
Q3 2013+10.5%
Q2 2013-11.3%
Q1 2013+0.7%
Q4 2010+7.2%
Q4 2012+7.2%
Q3 2011-3.2%
Q3 2012-3.2%
Q2 2012+2.3%
Q2 2011+2.3%
Q1 2011-2.3%
Q1 2012-2.3%
Q4 2011-2.3%
Q3 2010-0.9%

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