Profile: America's Car-Mart Inc (CRMT.O)

America’s Car-Mart, Inc. is a publicly held automotive retailer in the United States focused on the Buy Here/Pay Here segment of the used car market. 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. As of April 30, 2009, the Company operated 93 stores located primarily in small cities throughout the South-Central United States.

The Company’s dealerships operate on a decentralized basis. Each store is responsible for buying (with the assistance of a corporate office buyer) and selling vehicles, making credit decisions, and servicing and collecting the installment loans it originates. Stores also maintain their own records and make daily deposits. The Company has both regular and satellite stores. Satellite stores are similar to regular stores, except that they tend to be smaller and sell fewer vehicles. The Company purchases vehicles primarily through wholesalers, new car dealers, individuals and from auctions. Some of the vehicles the Company sells include the Ford Taurus and Escort, Chevrolet Lumina and Cavalier, Dodge Neon, Pontiac Grand Am and Oldsmobile Cutlass. It also sells trucks and sport utility vehicles. Buyers inspect and test-drive almost every vehicle they purchase.

Stores generally maintain an inventory of 25 to 100 vehicles depending on the maturity of the dealership. The Company provides financing to substantially all of its customers who purchase a vehicle at one of its stores. It does not provide any type of financing to non-customers. The Company primarily advertises in local newspapers, on the radio and television. In addition, periodically the Company conducts promotional sales campaigns.