NASDAQ$CRMT

Americas Car-Mart Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

America's Car-Mart reported diluted earnings per share of $6.19 on record revenues of $279 million.

America's Car-Mart reported a strong fourth quarter with record revenues of $279 million and diluted earnings per share of $6.19. Net income for the quarter was $43.5 million, driven by a 15.9% increase in the average retail sales price and a 24.3% increase in units sold. The company also saw a decrease in net charge-offs and lowered its allowance for credit losses.

  • Record sales volume productivity of 36.5 sales per lot per month.
  • Revenue increases were driven by a 15.9% increase in the average retail sales price and a 24.3% increase in units sold.
  • Net charge-offs for the quarter decreased to 4.8% compared to 5.6% in the prior year quarter.
  • The company lowered its allowance for credit losses from 26.5% to 24.5% as a percentage of finance receivables, net of deferred revenue.

Headline financials

Total Revenue

$279M

Previous: $196M+42.6%
EPS (adj)

$6.19

Previous: $1.35+358.5%
Net charge-offs

$4.80

Previous: $26.50-81.9%
Capital Expenditures

$1.94M

Previous: $2.18M-10.9%
Free Cash Flow

-$16.3M

Previous: $18.8M-186.9%
Net Income

$43.5M

Previous: $9.26M+369.8%
Gross Profit

$130M

Previous: $93.4M+39.5%
Cash & Equivalents

$2.89M

Previous: $59.6M-95.1%
Total Assets

$822M

Previous: $667M+23.2%
Stock-Based Comp

$993K

Previous: $1.58M-37.2%

Revenue & EPS history

Car-Mart · Revenue · Quarterly

$279M

Q4 2021+42.6%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

America's Car-Mart is optimistic about its ability to continue to grow and serve more customers. The company is focused on investing in its associates, inventory, and customer experience, and is seeing benefits from these investments. They believe that most of their existing dealerships could support 1,000 or more customers over time and that they have significant long-term growth potential from this existing dealership base.

Tailwinds

  • Unique position in the market to serve more customers.
  • Investments are foundational and will continue to allow increased productivity.
  • Leveraging cost structure while significantly improving the customer experience.
  • Prioritizing investments in associate recruiting, training and retention, inventory procurement and management, and customer experience.
  • Completing the rollout of new service contracts with positive customer reaction.

Headwinds

  • Pandemic and social unrest in the country.
  • Selling, general and administrative expenses increased $5.7 million compared to the fourth quarter of fiscal 2020.
  • Debt, net of cash, to finance receivables is 27.6%, compared to 25.1% at the end of the fourth quarter of fiscal 2020.
  • Must continue to move certain functions from the field to the corporate office.
  • Must continue to open new locations and look for acquisition opportunities into the future.

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 Q4 2021

Historical avgQ4 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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