America’s Car-Mart Q3 Revenue Drops 12% to $286.8M, Secures $461.3M Financing
Car-Mart’s Q3 revenue fell 12% to $286.8 million on a 22.1% drop in retail sales to 10,275 units, while average sales price rose 7.1% to $20,634. The company closed a $161.3 million ABS and $300 million term loan and saw net charge-offs increase to 6.5% of receivables.
1. Revenue and Sales Performance
America’s Car-Mart reported Q3 revenue of $286.8 million, down 12% year-over-year, driven by a 22.1% decrease in retail unit sales to 10,275 units. The average retail sales price increased 7.1% to $20,634, reflecting pricing discipline on reduced inventory.
2. Credit and Profitability Metrics
Gross profit per retail unit rose 8.8% year-over-year and interest income grew 3.1% to $64.2 million, offsetting some operating pressure. However, net charge-offs increased to 6.5% of average finance receivables and the allowance for credit losses was raised to 25.53%.
3. Operating Expenses
SG&A expenses totaled $51.5 million, representing 23.1% of sales, with adjusted SG&A at $48.7 million or 21.9% of sales, highlighting leverage challenges from lower volumes and weather-related disruptions.
4. Financing and Capital Structure
The company completed a $161.3 million ABS securitization and secured a $300 million term loan, retiring its revolving credit facility. Total debt stands at $892.2 million, with debt net of cash at 44.7% of finance receivables, strengthening liquidity.