NASDAQ$CRMT

Americas Car-Mart Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

America’s Car-Mart reported Q4 2023 earnings, showing increased unit volumes and gross profits while facing challenges from market conditions and customer payment behavior.

America's Car-Mart reported a 7.5% increase in unit volumes and a rise in average retail sales price by 3.5% to $18,133. The company's active customer base grew by 7.6% to 102,305. Gross profits increased to $112.2 million, but the company faced challenges including higher interest expense and increased provision for credit losses.

  • Unit volumes increased by 7.5% driven by market share gains from digital investments.
  • Active customer base grew by 7.6% to 102,305, with an average of 656 customers per dealership.
  • Gross profits totaled $112.2 million, up from $107.5 million in the prior year's fourth quarter.
  • Net charge-offs as a percent of average finance receivables were 6.3%, compared to 5.1% in the prior year quarter.

Headline financials

Total Revenue

$388M

Previous: $352M+10.4%
EPS (adj)

$0.32

Previous: $4.01-92.0%
Net charge-offs

$6.30

Previous: $5.60+12.5%
SG&A Expense

$45.8M

No prior period
Gross Margin

6354.0%

No prior period
Capital Expenditures

$31K

Previous: $7.04M-99.6%
Free Cash Flow

-$12.4M

Previous: -$18.7M+33.4%
Gross Profit

$112M

Previous: $155M-27.8%
Cash & Equivalents

$9.8M

Previous: $6.92M+41.6%
Total Assets

$1.41B

Previous: $1.15B+22.5%
Stock-Based Comp

$1.16M

Previous: $790K+46.8%

Revenue & EPS history

Car-Mart · Revenue · Quarterly

$388M

Q4 2023+10.4%vs Q4 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

The company anticipates improvements in affordability for customers and expects to attract higher credit rated customers as automobile credit terms and conditions tighten. They expect material gross profit margin improvement from structural improvements to procurement, inventory, and wholesale processes. Capital expenditures are expected to be approximately $12 million for fiscal year 2024 as the company completes facility updates and general fixed asset requirements.

Tailwinds

  • Affordability to improve gradually with strong wage increases for customers.
  • Expect to attract higher credit rated customers.
  • Anticipate material gross profit margin improvement.
  • Completing facility updates.
  • Completing general fixed asset requirements.

Headwinds

  • Ongoing disruption in the used car market challenges purchasing quality vehicles at affordable prices.
  • Customers face higher living costs due to persistent inflation.
  • Customers face higher interest rates.
  • Customers face higher fuel and rent expenses.
  • Less favorable customer payment behavior and lower gross profit margin.

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 2023

Historical avgQ4 2023

+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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