Q4 2024 America's CAR-MART Inc Earnings Call Transcript
Key Points
- Gross margin improved by 200 basis points over the prior year's quarter and 120 basis points for the full fiscal year.
- Partnership with Cox Automotive is driving efficiencies within the vehicle supply chain process.
- Successful implementation of the Loan Origination System (LOS) has led to a 20% reduction in cumulative net loss rates for LOS-originated loans.
- Recent acquisitions, including Texas Auto Center and Central Auto Sales, are expected to generate annual revenues in excess of $60 million.
- SG&A expenses showed the lowest percentage increase in over five years at just 1.5%, demonstrating improved expense efficiency.
- Total revenues decreased by $22.3 million or 5.8%, largely due to a decline in retail units sold.
- Sales were down 13.6% during the quarter, with total application volume down 9.8%.
- Net charge-offs as a percentage of average finance receivables increased to 7.3% from 6.3%, indicating higher losses.
- Interest expense increased by $4.9 million or 38.2% due to rising rates and increased debt.
- Consumers continue to struggle with economic pressures, including skyrocketing auto insurance rates, impacting their ability to cover basic living expenses.
Good day and thank you for standing by. Welcome to America's Car-Mart fourth quarter fiscal year 2024 earnings call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Vickie Judy, America's Car-Mart CFO. Please go ahead.
'--
Good morning, and welcome to America's Car-Mart's fourth quarter fiscal year 2024 earnings call for the period ending April 30, 2024. Joining me today is Doug Campbell, our company's President and CEO. We've issued our earnings release earlier this morning and it is available on our website, along with the slide of supplemental material. We will post the transcript of our prepared remarks following this call and the Q&A session will be available through the webcast after the call.
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