America's Car-Mart Inc (NASDAQ:CRMT) Q1 2020 Earnings Conference Call - Final Transcript

Aug 16, 2019 • 11:00 am ET

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America's Car-Mart Inc (NASDAQ:CRMT) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jeffrey A. Williams

to credit challenged customers.

I will now turn it over to Vickie to go over some numbers. Vickie?

Executive
Vickie D. Judy

Good morning. For the quarter, overall revenues were $172 million with same-store revenues up 3.3%. This resulted from a 4.1% increase in sales and a 9.5% increase in interest income. Revenues from the dealerships in the over 10 years of age category was up 2%. Stores in the 5-year to 10-year category was up 4%, and revenues for stores in the less than five years of age category was up about 34% to about $16 million. Most of the sales increase was a result of the increased selling price as sales volumes were basically flat. Our average selling price increased to $11,410 or 3.6% increase, $395 compared to the prior year quarter. There's also an increase of $105 sequentially. This resulted from the continued high demand for vehicles in the used car market, and our effort to provide a high quality vehicle for our customers.

At quarter-end, 20 or 14% of our dealerships were from 0-year to 5 years old; 40 or 28% were from 5 years to 10 years old, with the remaining 85 being 10 years old or older. Our overall productivity was 29 units per lot per month, down from 29.8 units compared to the prior year quarter. Our 10-year plus lots produced 31.8 units sold per month per lot for the quarter compared to 32.8 units for the prior year quarter. Lots in the 5-year to 10-year category produced 26.6 units compared to 26.8 units for the prior year quarter. Lots less than 5 years of age had productivity of 21.7 units, compared to 22.1 units for the first quarter of last year. We continue to believe we have potential to increase sales volumes and improve productivity with the ongoing investments being made in our inventory, our field sales efforts and the digital area.

Our down payment percentage was up slightly to 6.5%, compared to 6.1% for the prior year quarter. Collections as a percentage of finance -- average finance receivables was up 40 basis points to 13.5% compared to 13.1% last year. The average originating contract term was 29.9 months compared to 29.7 months for the prior year quarter and up slightly from 29.8 months sequentially. Our weighted average contract term for the entire portfolio, including modifications was 32.1 months compared to 32.4 months for the prior July. The weighted average age of the portfolio was basically flat at approximately nine months.

Interest income increased 9.5%, or $1.9 million compared to the prior year quarter, primarily due to the $41.5 million increase in average finance receivables at an 8.1% increase. The weighted average interest rate for all finance receivables at the end of the quarter was approximately 16.4% from 16.3%. Our gross profit margin dollars per retail unit sold increased by $104, 2.2% to $4,886 compared to $4,782 in the prior year quarter. Our mix of retail unit sold was consistent with the prior year.

SG&A for