Americas CarMart Files 10-Q, Reports Credit Facility Update

TL;DR

CRMT 10-Q filed: Credit facility update & Texas Auto Center acquisition noted.

AI Summary

Americas CarMart Inc. (CRMT) filed its 10-Q for the period ending July 31, 2024. The company reported on its financial performance and disclosed a subsequent event related to its revolving credit facility with BMO Harris Bank. This filing also mentions the acquisition of Texas Auto Center on June 3, 2024.

Why It Matters

This filing provides investors with an update on Americas CarMart's financial health and operational activities, including recent acquisitions and credit facility details.

Risk Assessment

Risk Level: medium — The filing contains financial performance data and details about credit facilities, which are crucial for assessing the company's financial stability and operational risks.

Key Numbers

• 0001171843-24-005205 — Accession Number (Unique identifier for the filing)
• 0000799850 — Central Index Key (Company's unique identifier with the SEC)

Key Players & Entities

• AMERICAS CARMART INC (company) — Filer
• 20240731 (date) — Reporting Period End Date
• BMO Harris Bank (company) — Lender for Revolving Credit Facility
• Texas Auto Center (company) — Acquired Entity
• 20240916 (date) — Filing Date
• 20240603 (date) — Texas Auto Center Acquisition Date

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share CRMT NASDAQ Global Select

Filing Documents

• crmt20240731_10q.htm (10-Q) — 1343KB
• ex_718832.htm (EX-31.1) — 13KB
• ex_718833.htm (EX-31.2) — 13KB
• ex_718834.htm (EX-32.1) — 8KB
• 0001171843-24-005205.txt ( ) — 7683KB
• crmt-20240731.xsd (EX-101.SCH) — 76KB
• crmt-20240731_cal.xml (EX-101.CAL) — 50KB
• crmt-20240731_def.xml (EX-101.DEF) — 487KB
• crmt-20240731_lab.xml (EX-101.LAB) — 443KB
• crmt-20240731_pre.xml (EX-101.PRE) — 520KB
• crmt20240731_10q_htm.xml (XML) — 1290KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) – July 31, 2024 and April 30, 2024 3 Condensed Consolidated Statements of Operations (Unaudited) – Three Months Ended July 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows (Unaudited) – Three Months Ended July 31, 2024 and 2023 5 Condensed Consolidated Statements of Equity (Unaudited) – Three Months Ended July 31, 2024 6 Condensed Consolidated Statements of Equity (Unaudited) – Three Months Ended July 31, 2023 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults Upon Senior Securities 35 Item 4. Mine Safety Disclosure 35 Item 5. Other Information 35 Item 6. Exhibits 36

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements America ' s Car-Mart, Inc. Condensed Consolidated Balance Sheets (Unaudited) July 31, 2024 and April 30, 2024 (Dollars in thousands except share and per share amounts) July 31, 2024 April 30, 2024 Assets: (Unaudited) Cash and cash equivalents $ 4,748 $ 5,522 Restricted cash 93,873 88,925 Accrued interest on finance receivables 7,507 6,907 Finance receivables, net 1,126,271 1,098,591 Inventory 114,548 107,470 Income tax receivable, net 938 2,958 Prepaid expenses and other assets 33,071 31,276 Right-of-use asset 67,625 61,185 Goodwill 22,896 14,449 Property and equipment, net 59,793 60,361 Total Assets $ 1,531,270 $ 1,477,644 Liabilities, mezzanine equity and equity: Liabilities: Accounts payable $ 35,582 $ 21,379 Deferred accident protection plan revenue 52,041 51,836 Deferred service contract revenue 69,651 68,945 Accrued liabilities 32,547 27,828 Deferred income tax liabilities, net 16,866 17,808 Lease liability 70,690 64,250 Notes payable, net 597,494 553,629 Revolving line of credit, net 184,846 200,819 Total liabilities 1,059,717 1,006,494 Commitments and contingencies (Note J) Mezzanine equity: Mandatorily redeemable preferred stock 400 400 Equity: Preferred stock, par value $ .01 per share, 1,000,000 shares authorized; none issued or outstanding - - Common stock, par value $ .01 per share, 50,000,000 shares authorized; 13,729,504 and 13,727,013 issued at July 31, 2024 and April 30, 2024, respectively, of which 6,396,757 and 6,394,675 were outstanding at July 31, 2024 and April 30, 2024, respectively 137 137 Additional paid-in capital 115,331 113,930 Retained earnings 653,395 654,369 Less: Treasury stock, at cost, 7,332,747 and 7,332,338 shares at July 31, 2024 and April 30, 2024, respectively ( 297,810 ) ( 297,786 ) Total stockholders' equity 471,053 470,650 Non-controlling

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) America ' s Car-Mart, Inc . A – Organization and Business America's Car-Mart, Inc., a Texas corporation (the "Company"), is one of the largest publicly held automotive retailers in the United States focused exclusively on the "Integrated Auto Sales and Finance" segment of the used car market. References to the Company typically include the Company's consolidated subsidiaries. The Company's operations are principally conducted through its two operating subsidiaries, America's Car Mart, Inc., an Arkansas corporation ("Car-Mart of Arkansas"), and Colonial Auto Finance, Inc., an Arkansas corporation ("Colonial"). The Company primarily sells older model used vehicles and provides financing for substantially all of its customers. Many of the Company's customers have limited financial resources and would not qualify for conventional financing as a result of limited credit histories or past credit difficulties. As of July 31, 2024, the Company operated 156 dealerships located primarily in small cities throughout the South-Central United States. B – Summary of Significant Accounting Policies General The accompanying condensed consolidated balance sheet as of April 30, 2024, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of July 31, 2024 and 2023, have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended July 31, 2024 are

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View this 10-Q filing on SEC EDGAR