Latest news with #CRMT
Yahoo
4 days ago
- Automotive
- Yahoo
CRMT Q1 Earnings Call: Operational Upgrades and Credit Model Changes Shape Outlook
Used-car retailer America's Car-Mart (NASDAQ:CRMT) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 1.9% year on year to $370.2 million. Its non-GAAP profit of $1.26 per share was 65.8% above analysts' consensus estimates. Is now the time to buy CRMT? Find out in our full research report (it's free). Revenue: $370.2 million vs analyst estimates of $343.5 million (1.9% year-on-year growth, 7.8% beat) Adjusted EPS: $1.26 vs analyst estimates of $0.76 (65.8% beat) Adjusted EBITDA: $37.67 million vs analyst estimates of $25.12 million (10.2% margin, 50% beat) Operating Margin: 8.1%, up from 5.1% in the same quarter last year Locations: 154 at quarter end, in line with the same quarter last year Same-Store Sales fell 3.9% year on year (-5.3% in the same quarter last year) Market Capitalization: $406.3 million America's Car-Mart's latest quarter reflected management's focus on operational improvements and credit discipline. CEO Doug Campbell emphasized a return to profitability following a year marked by an operational turnaround, specifically highlighting the transition to a more advanced underwriting and risk-based pricing model. The company also benefited from enhanced collections infrastructure, with Campbell noting, 'We believe these changes will strengthen payment performance, improve customer satisfaction, and ultimately deepen the relationship between our brand and the communities we serve.' Inventory management strategies and a proactive approach to procurement ahead of tax season contributed to steady sales volume and improved gross margins. Additionally, the company's leadership transition—with Jonathan Collins joining as CFO and Vickie Judy moving to Chief Accounting Officer—was positioned as a move to further strengthen financial leadership for future growth. Looking ahead, management expects continued evolution in underwriting and pricing strategies to shape credit performance and portfolio growth. Campbell indicated that the company is accelerating its risk-based pricing model nationwide, stating, 'We pulled that forward to have that as a lever in the business, and we're quickly learning what some of those opportunities are.' CFO Jonathan Collins added that diversification of funding platforms and additional capital market activities are underway to support expansion. While management sees opportunities in targeting higher-quality customer segments and adjusting inventory mix, Campbell cautioned that a tighter used car supply environment and macroeconomic uncertainties, such as tariffs and consumer spending trends, will remain challenges. The rollout of digital payment tools and further technology investments are expected to enhance collections and customer engagement in the coming quarters. Management attributed the quarter's results to new initiatives in risk-based pricing, operational changes in collections, and a sharpened focus on customer needs within a challenging supply environment. Leadership transitions and finance team expansion: The appointment of Jonathan Collins as CFO and Marie Persichetti as Senior Vice President of Capital Markets reflects a push to diversify funding sources and optimize capital structure. Management views these moves as foundational for long-term growth and capital efficiency. Risk-based pricing and advanced underwriting: The nationwide rollout of a new 7x7 credit scorecard and risk-based pricing model is designed to better segment customers by risk and align financing offers accordingly. Early results indicate increased sales volume from higher-quality customers and improved conversion rates, supporting both top-line growth and margin improvement. Digital payment platform relaunch: The updated Pay Your Way platform introduces digital payment methods such as Apple Pay, Google Pay, Venmo, and PayPal, as well as expanded cash payment locations at major retailers. This initiative aims to improve payment performance, reduce missed payments, and cater to underbanked customers. Inventory management strategy: Management increased inventory levels ahead of tax season to mitigate wholesale procurement volatility and tariff-related costs, allowing for lower vehicle selling prices and steady sales volumes. This proactive approach resulted in higher gross margins despite a competitive environment. Credit performance and reserve methodology: Enhancements to the Current Expected Credit Loss (CECL) allowance model, driven by improved data and loss history, enabled a reduction in reserves and more precise capital allocation. The company reported better collection rates and lower net charge-offs, signaling stronger portfolio quality. America's Car-Mart's outlook is shaped by expanded use of risk-based pricing, continued operational upgrades, and a focus on capital efficiency amid a tight supply market. Targeting higher-quality customers: Management believes that expanding risk-based pricing and focusing on customers with stronger credit profiles will enable the company to grow share in less risky segments, potentially lowering reconditioning costs and improving gross margins over time. Technology and digital adoption: The company is investing in digital payment tools and CRM (Customer Relationship Management) systems to enhance collections, customer engagement, and operational efficiency. Management expects these technology initiatives to drive long-term gains in customer retention and payment performance. Capital structure and funding diversification: CFO Jonathan Collins highlighted ongoing efforts to diversify funding sources, including more frequent and favorable securitizations, as well as exploring new warehouse and debt facilities. Management sees this as crucial for supporting future receivables growth and managing funding costs in an evolving capital markets environment. In the quarters ahead, the StockStory team will closely monitor (1) the impact of risk-based pricing and advanced underwriting on sales mix and gross margins, (2) execution of technology initiatives, especially the rollout of digital payment solutions and CRM enhancements, and (3) continued progress in capital markets activity and funding diversification. Additional focus will be given to how macroeconomic forces—such as tariffs and used car supply constraints—affect procurement strategies and customer affordability. America's Car-Mart currently trades at a forward P/E ratio of 12.6×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Automotive
- Yahoo
America's Car-Mart Inc (CRMT) Q4 2025 Earnings Call Highlights: A Remarkable Financial ...
Net Income: Improved from a net loss of $31.4 million in the prior year to $17.9 million in net income, an improvement of over $49 million. Revenue Growth: Incremental revenue increased by 1.5% in the fourth quarter compared to the prior year's quarter. Unit Sales Volume: Increased by 2.6% in the fourth quarter. Interest Income: Increased by 4.2% in the fourth quarter. Full Year Unit Sales: Sold 57,022 units, down 1.7% year over year. Gross Margin: Fourth quarter gross margin was 36.4%, up from 35.5% a year ago; full fiscal year gross margin was 36.7%, a 200 basis point improvement. Net Charge-Offs: Improved to 6.9% of average finance receivables for the quarter, compared to 7.3% in the prior year quarter. Allowance for Credit Losses: Reduced by $10.3 million due to enhancements in the Cecil allowance methodology. SG&A Expenses: Increased by $3.8 million or 8.6%, driven by investments in technology, talent, and strategic acquisitions. Interest Expense: Decreased by $388,000 or 2.2%. Warning! GuruFocus has detected 12 Warning Signs with CRMT. Release Date: June 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. America's Car-Mart Inc (NASDAQ:CRMT) reported a significant financial turnaround, moving from a net loss of $31.4 million in the prior year to generating $17.9 million in net income this year, an improvement of more than $49 million. The company successfully executed its 7th term securitization, issuing $216 million in asset-backed notes with a favorable weighted average coupon of 6.27%, reflecting growing investor confidence. The introduction of a new 7 by 7 scorecard and risk-based pricing model is expected to improve credit performance and enable smarter growth. The relaunch of the 'Pay Your Way' platform, which includes digital payment options like Apple Pay and Google Pay, aims to enhance customer convenience and satisfaction. Gross margin improved to 36.4% in Q4, up from 35.5% a year ago, driven by stronger performance in the wholesale channel and strategic initiatives. SGNA expenses increased by $3.8 million or 8.6%, primarily due to investments in technology, talent, and strategic acquisitions, impacting short-term cost efficiency. The used car market remains dynamic with a tighter supply environment, posing challenges for procurement and inventory management. Despite improvements, the allowance for credit losses remains high at 23.25% of finance receivables, indicating ongoing credit risk. The company faces pressure from tariffs, which have led to a $300 increase in procurement costs per unit, affecting overall cost management. Interest expense decreased only slightly by $388,000 or 2.2%, indicating limited immediate relief from improved securitization rates. Q: How have tariffs and higher used car prices affected America's Car-Mart's business, and have there been any changes in consumer behavior? A: Douglas Campbell, President and CEO, explained that the impact of tariffs and higher used car prices began to manifest in April, towards the end of the quarter. The company has seen a $300 increase in procurement costs per unit, which is manageable. There hasn't been a significant pull forward of sales due to these factors. The company is focused on sustainable growth and has implemented risk-based pricing to navigate potential headwinds. Q: Can you provide an update on the operational upgrades and partnerships, and how they might affect gross profit margins and sales per store? A: Douglas Campbell highlighted that gross profit margins have improved, with a 90 basis point increase in the quarter and a 200 basis point improvement year-over-year. The company is focused on optimizing products and leveraging partnerships to enhance profitability. The relaunch of the Pay Your Way campaign is expected to improve collections and reduce friction in customer payments. Q: How will the rollout of risk-based pricing impact the company's financials, particularly yields and margins? A: Douglas Campbell noted that risk-based pricing has been implemented across all stores, with a focus on improving returns on lower-ranked customers and offering better terms to higher-quality customers. This approach is expected to enhance both credit performance and gross margins by attracting higher-quality customers and optimizing inventory. Q: What is the condition of America's Car-Mart's low-end consumers, and how are they coping with higher rates? A: Douglas Campbell stated that the company's low-end consumers are accustomed to navigating challenging economic conditions. There are no significant signs of distress, and demand remains strong. The company's interest rates remain competitive, and there has been no breakage in conversion rates, indicating that consumers still find value in America's Car-Mart's offerings. Q: How does the success in capital markets and ABS issuance impact America's Car-Mart's growth prospects? A: Jonathan Collins, CFO, explained that the company is pleased with its recent securitization efforts, which have tightened spreads and improved capital structure. The company is exploring additional capital market tools, such as warehouse loans, to further enhance its financial flexibility and support growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
13-06-2025
- Automotive
- Yahoo
America's Car-Mart Inc (CRMT) Q4 2025 Earnings Call Highlights: A Remarkable Financial ...
Net Income: Improved from a net loss of $31.4 million in the prior year to $17.9 million in net income, an improvement of over $49 million. Revenue Growth: Incremental revenue increased by 1.5% in the fourth quarter compared to the prior year's quarter. Unit Sales Volume: Increased by 2.6% in the fourth quarter. Interest Income: Increased by 4.2% in the fourth quarter. Full Year Unit Sales: Sold 57,022 units, down 1.7% year over year. Gross Margin: Fourth quarter gross margin was 36.4%, up from 35.5% a year ago; full fiscal year gross margin was 36.7%, a 200 basis point improvement. Net Charge-Offs: Improved to 6.9% of average finance receivables for the quarter, compared to 7.3% in the prior year quarter. Allowance for Credit Losses: Reduced by $10.3 million due to enhancements in the Cecil allowance methodology. SG&A Expenses: Increased by $3.8 million or 8.6%, driven by investments in technology, talent, and strategic acquisitions. Interest Expense: Decreased by $388,000 or 2.2%. Warning! GuruFocus has detected 12 Warning Signs with CRMT. Release Date: June 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. America's Car-Mart Inc (NASDAQ:CRMT) reported a significant financial turnaround, moving from a net loss of $31.4 million in the prior year to generating $17.9 million in net income this year, an improvement of more than $49 million. The company successfully executed its 7th term securitization, issuing $216 million in asset-backed notes with a favorable weighted average coupon of 6.27%, reflecting growing investor confidence. The introduction of a new 7 by 7 scorecard and risk-based pricing model is expected to improve credit performance and enable smarter growth. The relaunch of the 'Pay Your Way' platform, which includes digital payment options like Apple Pay and Google Pay, aims to enhance customer convenience and satisfaction. Gross margin improved to 36.4% in Q4, up from 35.5% a year ago, driven by stronger performance in the wholesale channel and strategic initiatives. SGNA expenses increased by $3.8 million or 8.6%, primarily due to investments in technology, talent, and strategic acquisitions, impacting short-term cost efficiency. The used car market remains dynamic with a tighter supply environment, posing challenges for procurement and inventory management. Despite improvements, the allowance for credit losses remains high at 23.25% of finance receivables, indicating ongoing credit risk. The company faces pressure from tariffs, which have led to a $300 increase in procurement costs per unit, affecting overall cost management. Interest expense decreased only slightly by $388,000 or 2.2%, indicating limited immediate relief from improved securitization rates. Q: How have tariffs and higher used car prices affected America's Car-Mart's business, and have there been any changes in consumer behavior? A: Douglas Campbell, President and CEO, explained that the impact of tariffs and higher used car prices began to manifest in April, towards the end of the quarter. The company has seen a $300 increase in procurement costs per unit, which is manageable. There hasn't been a significant pull forward of sales due to these factors. The company is focused on sustainable growth and has implemented risk-based pricing to navigate potential headwinds. Q: Can you provide an update on the operational upgrades and partnerships, and how they might affect gross profit margins and sales per store? A: Douglas Campbell highlighted that gross profit margins have improved, with a 90 basis point increase in the quarter and a 200 basis point improvement year-over-year. The company is focused on optimizing products and leveraging partnerships to enhance profitability. The relaunch of the Pay Your Way campaign is expected to improve collections and reduce friction in customer payments. Q: How will the rollout of risk-based pricing impact the company's financials, particularly yields and margins? A: Douglas Campbell noted that risk-based pricing has been implemented across all stores, with a focus on improving returns on lower-ranked customers and offering better terms to higher-quality customers. This approach is expected to enhance both credit performance and gross margins by attracting higher-quality customers and optimizing inventory. Q: What is the condition of America's Car-Mart's low-end consumers, and how are they coping with higher rates? A: Douglas Campbell stated that the company's low-end consumers are accustomed to navigating challenging economic conditions. There are no significant signs of distress, and demand remains strong. The company's interest rates remain competitive, and there has been no breakage in conversion rates, indicating that consumers still find value in America's Car-Mart's offerings. Q: How does the success in capital markets and ABS issuance impact America's Car-Mart's growth prospects? A: Jonathan Collins, CFO, explained that the company is pleased with its recent securitization efforts, which have tightened spreads and improved capital structure. The company is exploring additional capital market tools, such as warehouse loans, to further enhance its financial flexibility and support growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
12-06-2025
- Automotive
- Yahoo
America's Car-Mart: Fiscal Q4 Earnings Snapshot
ROGERS, Ark. (AP) — ROGERS, Ark. (AP) — America's Car-Mart Inc. (CRMT) on Thursday reported profit of $10.6 million in its fiscal fourth quarter. On a per-share basis, the Rogers, Arkansas-based company said it had profit of $1.26. The auto retailer posted revenue of $370.2 million in the period. For the year, the company reported profit of $17.9 million, or $2.33 per share. Revenue was reported as $1.39 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CRMT at
Yahoo
12-06-2025
- Automotive
- Yahoo
America's Car-Mart: Fiscal Q4 Earnings Snapshot
ROGERS, Ark. (AP) — ROGERS, Ark. (AP) — America's Car-Mart Inc. (CRMT) on Thursday reported profit of $10.6 million in its fiscal fourth quarter. On a per-share basis, the Rogers, Arkansas-based company said it had profit of $1.26. The auto retailer posted revenue of $370.2 million in the period. For the year, the company reported profit of $17.9 million, or $2.33 per share. Revenue was reported as $1.39 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CRMT at Sign in to access your portfolio
