Core Insights - America's Car-Mart, Inc. reported a strong financial performance for the third quarter of fiscal year 2025, with total revenue increasing by 8.7% year-over-year to $325.7 million, driven by higher sales volumes and interest income [5][6][19]. Financial Performance - Total revenue reached $325.7 million, reflecting an 8.7% increase compared to the same quarter last year [5][19]. - Sales volumes increased by 13.2%, totaling 13,198 units sold, compared to 11,664 units in the prior year [7][19]. - Interest income rose by $3.0 million, or 5.1%, contributing positively to overall revenue [5][19]. - Gross margin percentage improved by 150 basis points to 35.7%, attributed to better vehicle procurement and disposal practices [8][19]. - Net income for the quarter was $3.2 million, a significant recovery from a loss of $8.5 million in the same quarter last year, resulting in diluted earnings per share of $0.37 compared to a loss per share of $1.34 [5][31]. Operational Metrics - The average retail sales price of vehicles sold was $19,275, a slight decrease of 0.9% from the previous year [19]. - The allowance for credit losses improved to 24.31%, down from 24.72% sequentially, indicating better credit performance [9][19]. - Net charge-offs as a percentage of average finance receivables improved to 6.1% from 6.8% in the prior year, reflecting a decrease in both frequency and severity of losses [8][19]. Financing and Capital Structure - The company completed a $200 million term securitization transaction, achieving a 95 basis point improvement in the weighted average life adjusted coupon compared to the previous transaction [5][14]. - An amended asset-based lending revolving credit facility of $350 million was established, extending the maturity to March 2027 [5][15]. - Debt to finance receivables ratio stood at 53.5%, while the ratio of debt, net of total cash, to finance receivables was 45.0% [13][38]. Customer and Market Insights - The company ended the quarter with a higher inventory level to support seasonal sales trends associated with spring and tax refund season [7]. - Active customer count increased to 103,663, up from 102,175 in the previous year, indicating growth in customer engagement [20]. Strategic Initiatives - The company is focused on enhancing financial flexibility, operational capabilities, and technology, which has contributed to improved performance metrics [3]. - Continued investment in leadership and technology is expected to support future growth and customer service enhancements [3].

Core Points - America's Car-Mart, Inc. has announced the extension and upsizing of its asset-based revolving credit facility to $350 million from a previous commitment of $320 million, maturing on March 31, 2027 [2][3] - As of January 31, 2025, approximately $75 million was drawn on the ABL Facility, which was oversubscribed by a syndicate of lenders led by BMO Bank [2][3] - The company has also completed a $200 million asset-backed securities (ABS) transaction on January 31, 2025, enhancing its funding and liquidity profile [3] Company Overview - America's Car-Mart operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the U.S., focusing on the "Integrated Auto Sales and Finance" segment of the used car market [5] - The company emphasizes superior customer service and building strong personal relationships with customers, primarily operating in smaller cities throughout the South-Central United States [5]

Group 1 - The company has extended and upsized its asset-based revolving credit facility (ABL Facility) from $320 million to $350 million, maturing on March 31, 2027 [2][3] - As of January 31, 2025, approximately $75 million was drawn on the ABL Facility, indicating a strong liquidity position [2] - The upsized ABL Facility and a $200 million asset-backed securities (ABS) transaction completed on January 31, 2025, have enhanced the company's funding and liquidity profile [3] Group 2 - America's Car-Mart operates automotive dealerships in 12 states, focusing on the "Integrated Auto Sales and Finance" segment of the used car market [5] - The company emphasizes superior customer service and building strong personal relationships with customers, primarily operating in smaller cities in the South-Central United States [5]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for America's Car-Mart (CRMT) due to higher revenues, with a focus on how actual results will compare to estimates [1][2] Earnings Expectations - The upcoming earnings report is expected to show a quarterly loss of $0.01 per share, reflecting a significant year-over-year change of +99.3% [3] - Revenues are projected to be $301.7 million, which is an increase of 0.7% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The Zacks Earnings ESP model suggests that recent estimate revisions may provide insights into the company's business conditions [5][6] Earnings Surprise Prediction - America's Car-Mart has a positive Earnings ESP of +600%, indicating that analysts have recently become more optimistic about the company's earnings prospects [10] - The company currently holds a Zacks Rank of 2, suggesting a strong likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, America's Car-Mart was expected to post earnings of $0.05 per share but instead reported a loss of $0.24, resulting in a surprise of -580% [12] - The company has not beaten consensus EPS estimates in any of the last four quarters [13] Conclusion - While the potential for an earnings beat exists, other factors may also influence stock movement, making it essential to consider the broader context [14][16] - Monitoring the Earnings ESP and Zacks Rank can enhance the likelihood of successful investment decisions ahead of earnings releases [15]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Case Study - America's Car-Mart (CRMT) - CRMT has shown a four-week price change of 5.7%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, CRMT's stock has gained 17.3%, with a beta of 1.64, suggesting it moves 64% more than the market in either direction [5] - CRMT has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to CRMT earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - CRMT is trading at a Price-to-Sales ratio of 0.30, suggesting it is undervalued, as investors pay only 30 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides CRMT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - America's Car-Mart, Inc. is set to release its fiscal 2025 third quarter financial results on March 6, 2025, before market opening, with a conference call scheduled for 9:00 a.m. ET to discuss the results [1]. Company Overview - America's Car-Mart operates automotive dealerships across twelve states and is recognized as one of the largest publicly held automotive retailers in the U.S., focusing on the "Integrated Auto Sales and Finance" segment of the used car market [3]. - The company emphasizes superior customer service and aims to build strong personal relationships with its customers [3]. - Dealerships are primarily located in smaller cities throughout the South-Central United States, selling quality used vehicles and providing financing for nearly all customers [3].

Core Viewpoint - America's Car-Mart, Inc. is set to release its fiscal 2025 third quarter financial results on March 6, 2025, before market opening, with a conference call scheduled for 9:00 a.m. ET to discuss the results [1]. Group 1 - The conference call can be accessed via a webcast link or by telephone, with participants encouraged to register in advance and join 10 minutes early [2]. - A replay of the conference call and webcast will be available on-demand for 12 months from the release date on the Car-Mart Investor Relations website [3]. Group 2 - America's Car-Mart operates automotive dealerships in twelve states, focusing on the "Integrated Auto Sales and Finance" segment of the used car market, emphasizing superior customer service and strong personal relationships with customers [3]. - The company primarily operates in smaller cities throughout the South-Central United States, selling quality used vehicles and providing financing for nearly all customers [3].

Weighted average coupon improved 95 basis points from prior October 2024 securitization Transaction over 10 times oversubscribed ROGERS, Ark., Feb. 03, 2025 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ:CRMT) ("we," "Car-Mart" or the "Company"), announced today that it has completed a term securitization transaction involving the issuance of $200 million in principal amount of asset-backed notes with an overall weighted average coupon of 6.49%. ACM Auto Trust 2025-1 issued $150.77 million of Class A ...

Weighted average coupon improved 95 basis points from prior October 2024 securitization Transaction over 10 times oversubscribed ROGERS, Ark., Feb. 03, 2025 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), announced today that it has completed a term securitization transaction involving the issuance of $200 million in principal amount of asset-backed notes with an overall weighted average coupon of 6.49%. ACM Auto Trust 2025-1 issued $150.77 million of Class A ...

Investment Philosophy - True value is derived from growth, not from undervalued assets (cigar butts) [1] - Long-term perspective is crucial for evaluating investments [1] - Great businesses offer significant societal value and are highly durable [1] - Companies with products and services 10x better than competitors deserve to grow 10x and maintain dominance [1] - Key characteristics sought in businesses include selection, convenience, and value [1] - Durability acts as a multiplier of value, with a preference for non-cyclical businesses [1] - Businesses capable of continuously outperforming competitors through product and service innovation are favored [1] - Anti-fragile business structures and complex operations are preferred [1] - The ability of a business to recover from adversity (macro and micro) is a key test of its strength [1] - Uniqueness is the primary driver of value [1] - Low maintenance costs for existing business operations provide high leverage for reinvestment and growth [1] - Minimal marketing expenditure is preferred [1] - Trust and network effects are important indicators of durability [1] - Management alignment with business interests and focus is critical, with a preference for seasoned CEOs, founders, and family businesses [1] - Good businesses empower people and attract talent, with managers who are continuous learners [1] - The success of Amazon demonstrates that customer focus can yield extraordinary returns for investors [1] - Win-win-win situations, where a true ecosystem is built, are highly valued [1] - Share buybacks are recommended when a durable business is identified [1] - The best time to invest is when all bad news is already known, and companies are not chasing talent [1] - Investments are made with the intention to buy more if prices decline [1] - Price actions are based on expectations and surprises, with a focus on companies where negative factors are priced in but positive factors are underestimated [1]