Q1 2025 America's CAR-MART Inc Earnings Call Transcript
Key Points
- Gross margin improved by 30 basis points for the quarter.
- Website traffic increased both year-over-year and sequentially, indicating strong consumer demand.
- Partnership with Cox Automotive is expected to improve affordability for consumers and gross profit margins.
- Loan origination system (LOS) is fully in place at 147 of 156 dealerships, improving sales and financing processes.
- Recent acquisitions, such as Texas Auto Center, delivered strong results, including a record month in July.
- Total revenues decreased by $19 million, or 5.2%, due to a decline in retail units sold.
- Average units sold per dealership per month were down 9.6%, from 34.2 to 30.9.
- Net charge-offs as a percentage of average finance receivables increased to 6.4% from 5.8%.
- Interest expense increased by $4 million, or 28.3%, due to rising rates and increased debt.
- SG&A expenses saw a slight increase, partly due to technology implementations and acquisition-related costs.
Good day, and thank you for standing by. Welcome to the America's Car-Mart's first quarter fiscal 2025, results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Vickie Judy, Chief Financial Officer of America's Car-Mart. Please go ahead.
'--
Good morning, and welcome to America's Car-Mart's first quarter fiscal year 2025, earnings call for the period ending July 31, 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 a slide detailing our cash-on-cash returns. 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.
During today's call, certain statements we make may be considered forward-looking
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