NASDAQ$CRMT

Americas Car-Mart Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

America's Car-Mart reported diluted earnings per share of $2.85 on record revenues of $228 million.

America's Car-Mart reported a strong increase in top-line revenue driven by a 16.5% increase in the average retail sales price and a 5.6% increase in units sold. The company saw improvements in cost structure and credit results, with net charge-offs decreasing. The company continues to invest in infrastructure and technology to support a larger customer base and improve the customer experience.

  • Revenue increased due to a 16.5% rise in average retail sales price and a 5.6% increase in units sold.
  • Productivity improved by 2.0% for the quarter, despite a tight supply of vehicles at lower price points.
  • Net charge-offs decreased to 4.9% of average finance receivables, compared to 5.9% in the prior year quarter.
  • Selling, general, and administrative expenses decreased to 16.7% of sales compared to 18.6% in the prior year quarter.

Headline financials

Total Revenue

$228M

Previous: $187M+22.2%
EPS (adj)

$2.85

Previous: $1.83+55.7%
Net charge-offs

$4.90

Previous: $5.90-16.9%
SG&A Expense

$16.70

Previous: $18.60-10.2%
Capital Expenditures

-$7.01M

Previous: -$3.24M-116.1%
Free Cash Flow

$12.9M

Previous: $9.44M+36.3%
Net Income

$19.9M

Previous: $12.7M+56.7%
Operating Income

-$52.4M

Previous: -$54.9M+4.5%
Gross Profit

$109M

Previous: $89.2M+22.7%
Cash & Equivalents

$4.16M

Previous: $2.08M+99.8%
Total Assets

$742M

Previous: $598M+24.1%
Stock-Based Comp

$1.25M

Previous: $938K+33.7%

Revenue & EPS history

Car-Mart · Revenue · Quarterly

$228M

Q3 2021+22.2%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

America's Car-Mart is focused on its transformation from a collections company to a sales company with strong collections capabilities, and believes more consumers will see the benefits of being part of the Car-Mart Family.

Tailwinds

  • The company is optimistic about the combination of its community-based structure and growing digital presence.
  • Investments in infrastructure are expected to support a larger customer base and improve cost structure.
  • The company is focused on recruiting, training, and retaining great associates.
  • The company is investing in inventory procurement and delivering great customer experience.
  • The company's strong balance sheet provides a competitive advantage for market share expansion and acquisitions.

Headwinds

  • There is still much uncertainty related to credit results since the pandemic began.
  • The company continues to see a tight supply of vehicles at lower price points.
  • Significant investments are required for key areas to fulfill the company's vision.
  • The implementation of Microsoft Dynamics 365 is underway, requiring significant investment.
  • The company is increasing its investment in the corporate Customer Experience team.

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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro