America’s Car-Mart, Inc. (NASDAQ: CRMT) shares sprinted on unleashing financial results for the third quarter ended January 31, 2024.
The Rogers, Arkansas-based company completed implementation of updated loan origination system (LOS)
Q3 revenue was $299.6 million, down 7.9%. Total collections increased 9.3%.
Allowance for credit loss adjusted to 25.74%, down sequentially 30 bps. Net charge-offs as a % of average finance receivables were 6.8% vs. 5.9%, down sequentially 40 bps
Loss per share $1.34 vs. $0.23 diluted earnings per share. Entered into a strategic partnership with Cox Automotive in February
Said CEO Doug Campbell, “We continue to navigate a challenging macro environment facing our customers and remain focused on their success. While sales volumes fell short of our expectations during the quarter, they are not reflective of the efforts put forth by the team. I am encouraged by our continued progress during the quarter in gross profit, credit losses, and initial results generated by our loan origination system. We have implemented several initiatives to improve sales during the fourth quarter.
“Our priority is to be agile with our cost structure and investments to deliver long-term profitability and shareholder value.”
CRMT shares jumped $10.00, or 16%, to $72.30.
