America's Car-Mart, Inc. has recently released its 10-K report, providing a detailed look into the company's operations and financial performance. Founded in 1981 and headquartered in Rogers, Arkansas, America's Car-Mart operates as an automotive retailer in the United States, focusing on selling older model used vehicles and providing financing for its customers.
In the 10-K report, the company's revenues for the fiscal year ended April 30, 2024, saw a slight decline compared to fiscal 2023, primarily due to an 8.8% decrease in retail units sold. This decrease was partially offset by a 5.7% increase in the average retail sales price and an 18.8% increase in interest income. The company primarily earns revenue from the sale of used vehicles, related service contracts, and interest income and late fees from the related financing. The report also highlights the impact of the COVID-19 global pandemic on the availability and prices of the vehicles the company purchases, resulting in higher purchase costs.
Over the last five fiscal years, the company's provision for credit losses as a percentage of sales has ranged from approximately 19.31% to 36.48%. The company's gross margin as a percentage of sales has ranged from a high of approximately 40.2% to a low of 33.5% over the same period. The company's initiatives around inventory life cycle efficiencies and a decrease in wholesale losses contributed to an increase in gross profit percentage in fiscal 2024 to 34.7%.
The report also emphasizes the company's focus on collections and improving its business practices, including the use of proprietary credit scoring systems, credit reporting, and GPS units on vehicles. Additionally, the company continuously looks for ways to operate more efficiently, improve its business practices, and adjust underwriting and collection procedures.
In terms of financials, the company's revenues for the fiscal year ended April 30, 2024, were $1,393,894, with a slight decrease of 0.5% compared to the previous fiscal year. The company's cost of sales, excluding depreciation, decreased by 5.3%, while the provision for credit losses increased by 20.0%. The company reported a loss before income taxes of $40,135 for the fiscal year ended April 30, 2024, compared to an income before income taxes of $25,794 for the previous fiscal year.
Today the company's shares have moved 1.6% to a price of $68.28. If you want to know more, read the company's complete 10-K report here.
