America's Car-Mart Inc (NASDAQ:CRMT) Q2 2020 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 11:00 am ET


America's Car-Mart Inc (NASDAQ:CRMT) Q2 2020 Earnings Conference Call - Final Transcript


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Vickie D. Judy

in interest income. Same-store revenues were up 12.2%. We had a great selection of quality vehicles and our associates did a great job of helping customers get into a vehicle to fit their needs. The investment that we've made in inventory, an additional $8.8 million since last October is contributing to higher sales volume by attracting more potential customers, including our repeat customers. We saw solid increase across all ages of dealerships. Revenues from stores in the over 10 years of age category was up 13%. Stores in the five to 10 year category was up 12% and revenues per stores in the less than five years of age category was about [Phonetic] 43% to $21 million.

Retail units sold increased by 8.7% and the average retail sales price increased by 5.1% to $11,589 compared to $11,030 last year. At quarter end, 20% or 14% of our dealerships were from zero to five years old, 39% or 27% were from five to 10 years old and the remaining 86 dealerships were 10 years old or older. Our overall productivity was 31.6 units per month, up 6.4% from 29.7. Our 10-year-plus lots produced 34.2 units sold per month per lot for the quarter compared to 31.9 for the prior year quarter. Lots in the five to 10 year category produced 29.4 compared to 27.7 for the prior year and the lots less than five years of age had productivity of 25.2 compared to 25.1 for the second quarter of last year.

Our down payment percentage was up slightly to 6% compared to 5.8% for the prior year quarter. Collections as a percentage of average finance receivables was up 30 basis points to 13.3%. We did see some slight increases in terms primarily due to the increasing average selling price. The average originating contract term was 30.4 months, compared to 29.2 months for the prior year quarter, and up from 29.9 months sequentially. But again, the average selling price was up $559 with a 1.2 month increase in term. Our weighted average contract term for the entire portfolio including modifications with 32.3 months compared to 32.1 months for the prior year October. The weighted average age of the portfolio is basically flat at approximately nine months.

Interest income increased $1.8 million or 8.7% compared to the prior year quarter, primarily due to the $44.2 million increase in average finance receivables, an 8.3% increase. The weighted average interest rate for all finance receivables at the end of the quarter was approximately 16.4%, flat from the prior year quarter. The gross profit percentage for the second quarter was 40.5% compared to 41.7% for the prior year quarter, but basically flat compared to the prior two sequential quarters. This is primarily a result of the higher average selling price as our gross margin percentages are lower at a higher selling price, while we did sell a few more SUVs compared to the prior year, most of the increase relates to selling an overall higher cost