Profile: America's Car-Mart Inc (CRMT.OQ)
25 Jul 2014
America’s Car-Mart, Inc., incorporated on August 23, 1989, is an automotive retailer in the United States focused on the integrated auto sales and finance segment of the used car market. The Company primarily sells older model used vehicles and provides financing for substantially all of its customers. As of April 30, 2013, the Company operated 124 dealerships located primarily in small cities throughout the South-Central United States. The Company purchases vehicles primarily through wholesalers, new car dealers, individuals and from auctions. Company sells Ford Taurus, Pontiac Grand Prix, Dodge Ram Pickup, Ford Explorer and the Ford Ranger. The Company also sells trucks and sport utility vehicles. 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's individual dealership is similar in nature and only engages in the selling and financing of used vehicles. Dealerships are operated on a decentralized basis. Each dealership is responsible for buying (with the assistance of a corporate office buyer) and selling vehicles, making credit decisions, and servicing and collecting the installment contracts it originates. Dealerships also maintain their own records and make daily deposits. The Company has both regular and satellite dealerships. Satellite dealerships are similar to regular dealerships, except that they tend to be smaller, sell fewer vehicles and their financial performance is not captured in a stand-alone financial statement, but rather is included in the financial results of the sponsoring regular dealership. Dealerships are typically located in smaller communities. As of April 30, 2013, approximately 74% of the Company’s dealerships were located in cities with populations of less than 50,000. Dealerships are located on leased or owned property between one and three acres in size. Dealership facilities typically range in size from 1,500 to 5,000 square feet.
Dealerships generally maintain an inventory of 25 to 100 vehicles depending on the maturity of the dealership. Inventory turns over approximately 8 to 9 times each year. The Company primarily advertises in local newspapers, on the radio, on television and on the Internet. The Company provides financing to substantially all of its customers who purchase a vehicle at one of its dealerships. The Company only provides financing to its customers for the purchase of its vehicles, and the Company does not provide any type of financing to non-customers. The Company’s installment sales contracts typically include down payments ranging from 0% to 17% (average of 7%), terms ranging from 18 months to 36 months (average of 29.3 months), and annual interest charges ranging from 11% to 19% (weighted average of 14.9% at April 30, 2013). The Company requires that payments be made on a weekly, bi-weekly, semi-monthly or monthly basis.
America's Car-Mart Inc
SUITE 200, 802 SOUTHEAST PLAZA A
BENTONVILLE AR 72712