America’s Car-Mart, Inc. CRMT shares are trading lower on Wednesday.
In the first quarter, the company reported a 15-cent loss per share, compared with earnings per share of 63 cents in the year-ago period and missing the profit consensus of 66 cents.
Quarterly revenues of $347.76 million (down 5.2% year over year) beat the street view of $338.78 million. The revenue drop was primarily driven by the decrease in retail units sold.
Sales for the quarter were 14,391 units versus 15,912 units, down 9.6%. This is the second quarter of sequential improvement in unit sales on a year-on-year basis.
“I’m encouraged with our rebound in sales volume from two quarters ago, despite the ongoing economic challenges facing the customer today. During the quarter, our new loan origination system (“LOS”) contributed to higher down payments and improved deal structures,” said President and CEO Doug Campbell.
The company’s same-store revenue fell 8.6% compared with growth of 8.2% in the year-ago period.
America’s Car-Mart reported a 7.2% increase in interest income, rising by $4.1 million.
Total collections grew by 4.3% to $172.9 million. The allowance for credit loss was favorably adjusted to 25.0%, down from 25.32%.
However, net charge-offs as a percentage of average finance receivables increased to 6.4% from 5.8%. Additionally, interest expense rose by $4.0 million, or 28.3%.
Gross profit margin as a percentage of sales was 35%, or $6,996 per unit, an improvement of 30 basis points, or $228 per unit.
The company exited the quarter with cash and equivalents of $98.62 million. Inventory as of quarter-end was $114.548 million. Average total collected per active customer per month was $562.
Price Action: CRMT shares are trading lower by 10.3% to $53.57 at last check Wednesday.
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