America's Car-Mart Inc (NASDAQ:CRMT) Q4 2020 Earnings Conference Call - Final Transcript

May 22, 2020 • 11:00 am ET

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America's Car-Mart Inc (NASDAQ:CRMT) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone. Thank you for holding, and welcome to America's Car-Mart's Fourth Quarter Fiscal 2020 Conference Call. The topic of this call will be the earnings and operating results for the Company's fourth quarter for fiscal 2020.

Before we begin, I would like to remind everyone that this call is being recorded and will be available for replay for the next 30 days. The dial-in number and access information are included in last night's press release, which can be found on America's Car-Mart website at www.car-mart.com.

As you all know some of management's comments today may include forward-looking statements, which inherently involve risks and uncertainties that could cause actual results to differ materially from management's present view. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The company cannot guarantee the accuracy of any forecast or estimate nor does it undertake any obligation to update such forward-looking statements. For more information regarding forward-looking information, please see Part 1 of the Company's annual report on Form 10-K for the fiscal year ended April 30th 2019, and its current and quarterly reports furnished to or filed with the Securities Exchange Commission on Forms 8-K and 10-Q.

Participating on the call this morning are Jeff Williams, the Company's President and Chief Executive Officer and Vickie Judy, Chief Financial Officer.

And now I'd like to turn the call over to the Company's Chief Executive Officer, Jeff Williams.

Executive
Jeffrey A. Williams

Okay. Well, thank you for joining us this morning and thank you for your interest in America's Car-Mart. With the pandemic hitting us in mid-March, we quickly set our priorities and went to work. Priority number one, was, is and always will be the health and safety of our associates, our customers and our communities.

We are focused on trying to go over and above federal, state and local guidelines, which were literally changing by the hour for several weeks. Even though, we most certainly consider what we do to be essential, it took several weeks to adjust to the various operating restrictions related to minimizing the spread of the Coronavirus. As we determined that we could provide a safe and healthy working environment, our next priority was protecting our balance sheet, while trying to get clarity on the recipient, the magnitude and the timing of any stimulus funds, and then predict consumer behavior when those funds actually reached pocketbooks.

We are very confident in our business model and in our future. But we really focused on getting through this without damaging our balance sheet, so that we could really be in a good spot when things returned to normal. With significant disruptions in the supply chain and projected decreases in consumer demand, we focused on the opportunity to reset our inventory with the potential to purchase better cars for the same or less money and then pass that value on to our customers. Our vehicle supply chain remains somewhat stress and consumer demand for our offering