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America's Car-Mart Inc. (CRMT+1.41%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports a decrease in revenue by 4.3% to $695,032,000 for the six months ended October 31, 2024, compared to the same period in the prior year. This decline is attributed to a 9.3% decrease in retail units sold, partially offset by a 5.3% increase in interest income.
Cost of sales decreased to 62.8% of sales for the six months ended October 31, 2024, down from 65.4% in the prior year, resulting in a gross margin increase to 37.2%. This improvement was partly due to an accounting change in the revenue recognition period for service contracts.
Provision for credit losses decreased by 15.9% to $194,945,000 for the six months ended October 31, 2024, compared to the same period in the prior year. The allowance for credit losses was 24.72% of finance receivables at the end of the period.
Interest expense increased by 17.8% to $36,354,000 for the six months ended October 31, 2024, due to rising interest rates and an increase in average borrowings.
The company completed an underwritten public offering of 1,700,000 shares of common stock at $43.00 per share, raising net proceeds of approximately $68.2 million, which were used to pay down a portion of the revolving line of credit.
America's Car-Mart Inc. reported net income of $4,135,000 for the six months ended October 31, 2024, compared to a net loss of $23,277,000 in the previous year.
The company continues to focus on improving vehicle quality and procurement efficiencies, which it believes will lead to better customer experiences and gross margins.
The filing also details the company's liquidity position, with $8.0 million in cash and $97.0 million of availability under its revolving credit facilities as of October 31, 2024.
America's Car-Mart Inc. has initiated discussions with its lending group for an extension of its revolving line of credit, which is scheduled to mature in September 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the America's Car-Mart Inc. quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.