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- **Strategic Restructuring**: $20M annualized SG&A savings from store closures and headcount reduction, with 10% store footprint reduction.\n- **Credit Strength**: 14.6% YoY credit app growth, 76.5% of volume from top customer ranks, and 5% Auto Pay adoption.\n- **Financial Flexibility**: $300M term loan provides capital to rebuild inventory and execute Phase 2 cost savings.\n- **Valuation Opportunity**: Trading at 1/3 book value despite improving credit metrics (3.14% delinquencies) and strong operational execution.\n- **Growth Catalysts**: Tax season inventory rebuild, Phase 2 cost reductions, and LOS V2 portfolio maturation driving 76%+ of receivables.

**【CEO Summary Section】**
- Reported net loss of $22.5 million, including $20 million in noncash reserve adjustments and one-time charges for strategic repositioning.\n- Consumer demand remains strong with credit applications up 14.6% YoY, despite lower inventory levels.\n- Executed Phase 1 of store consolidation, closing 5 underperforming stores and reducing headcount by 10%, generating $20 million annualized SG&A savings.\n- Emphasized higher-quality customer underwriting (76.5% of volume from top ranks) and digital payment adoption (5% of portfolio on Auto Pay).\n- Term loan with Silver Point Capital provides $300 million flexibility, enabling inventory rebuild and strategic execution.\n\n**【CFO Financial Commentary】**
- Revenue increased 0.8% YoY to $285 million, driven by higher interest income and vehicle prices.\n- SG&A expenses totaled $57.2 million, with 20.0% of sales excluding one-time charges; targeting 16.5% of sales.\n- Credit metrics: delinquencies improved to 3.14%, collections up 4.6%, and charge-offs at 7.0% (seasoning impact).\n- Completed $300 million term loan, reducing debt net of cash to 42.6% of finance receivables.\n- Adjusted EPS loss of $0.79, excluding noncash adjustments.\n\n**【COO Operational Update】**
- Credit applications grew 14.6% YoY, with 76.5% of volume from higher-quality customers (ranks 4-7).\n- Pay Your Way program adoption drove 3x increase in Auto Pay usage, reducing in-store payment traffic.\n- Phase 1 store closures retained >80% of sales through nearby better-performing stores.\n- Gross profit margin improved 100bps YoY to 37.5% due to reduced repair costs and wholesale retention.\n\n**【Q&A Highlights】**
- **Credit Performance**: New vintages under LOS V2 show 18-20% loss improvement vs legacy systems.\n- **Competitive Edge**: Differentiated by capital access, inventory management, and AI-driven underwriting.\n- **Inventory Rebuild**: Q3 focus on rebuilding to 6.8% YoY variance, targeting tax season demand.\n- **Valuation Disconnect**: Trading at 1/3 book value despite strong operational execution and $300M term loan validation.\n- **Future Outlook**: Target positive GAAP earnings, 16.5% SG&A ratio, and 76%+ portfolio from LOS V2 originations.

America's Car-Mart, Inc. (CRMT) Q2 2026 Earnings Call Transcript

- **Revenue decline but margin expansion**: 1.9% revenue decrease offset by 160 bps gross margin improvement; 10% YoY credit app growth signals demand resilience.
- **Customer quality shift**: 15% higher volume from top 3 tiers, 50% reduction in low-tier originations; NCOs at 6.6% reflect legacy portfolio challenges.
- **Tech-driven savings**: Pay Your Way platform to deliver 5% SG&A savings; Q1 SG&A growth expected to unwind 50% in H2.
- **Capital constraint risk**: $30M inventory financing cap limits sales growth; exploring alternatives to unlock $172M securitization capacity.
- **Positive trends**: 4x consecutive securitization coupon improvements, 72% portfolio under enhanced underwriting, and 26.5% YoY July app growth.

**【CEO Summary Section】**
- Total revenue decreased 1.9% YoY to $341.3 million due to 5.7% decline in retail units sold, but gross margin expanded to 36.6% (up 160 bps YoY) driven by disciplined pricing and ancillary product increases.
- Credit applications surged 10% YoY, with July seeing 26.5% YoY growth, reflecting higher-quality customer mix (15% more volume from ranks 5-7 vs. prior quarter).
- Tariffs added $500/unit procurement cost, constraining inventory under current capital facility; evaluating capacity expansion to unlock sales growth.
- LOS V2 underwriting shifted originations to higher-risk-adjusted return customers, reducing low-tier bookings by 50%.

**【CFO Financial Commentary】**
- SG&A expenses rose 10.1% YoY to $51.4M due to payroll growth (2/3) and tech investments (1/3), but expect 50% of Q1 growth to unwind in H2.
- Collections rose 6.2% YoY to $183.6M, with Pay Your Way platform driving 5% annual cost savings and doubling recurring payment enrollments.
- Net charge-offs (NCOs) at 6.6% (up 20 bps YoY) due to softer sales and legacy portfolio losses; delinquencies >30 days at 3.8% (up 30 bps YoY).
- Securitization progress: 2025-3 deal at 5.46% coupon (81 bps improvement vs. prior), with 4x consecutive coupon improvements and 400 bps spread tightening since 2024-1.
- Capital constraint: 30% advance rate and $30M cap on inventory financing limits working capital efficiency; exploring alternatives.

**【Q&A Highlights】**
- **Procurement Costs**: Post-quarter, pricing stabilized near Q1 levels; August/September demand maintained despite $500/unit cost headwind.
- **Credit Performance**: 72% of portfolio under enhanced LOS V2; NCOs expected to stabilize with new underwriting, but 30-day delinquencies temporarily elevated due to Pay Your Way transition.
- **SG&A Cadence**: Q2 SG&A ~Q1 level, with savings from Pay Your Way and LOS V2 implementations materializing in FY26.
- **Consumer Health**: Higher FICO scores in new originations (up 20 pts YoY) and 790 bps increase in top 3 customer ranks reflect improved portfolio quality.
- **Used Car Pricing**: Industry-wide 5-6% YoY increase expected to moderate in H2, but structural cost pressures remain.
- **Capital Solutions**: Actively pursuing alternative financing to expand inventory capacity and reduce reliance on constrained ABL.

America's Car-Mart, Inc. (CRMT) Q1 2026 Earnings Call Transcript

- **Profit Recovery**: FY2025 net income surged $49M to $17.9M, reversing prior year loss.
- **Digital Payment Innovation**: Expanded digital payment options and cash network, reducing collection friction.
- **Credit Efficiency**: 7x7 scorecard reduces credit losses; nationwide risk-based pricing rolled out in May.
- **Capital Market Success**: ABS issuance at 6.27% coupon, 22bps tighter than prior quarter.
- **Growth Catalysts**: 2026 focus on receivables expansion, cost optimization, and strategic partnerships.

**【CEO Overview】**
- Fiscal 2025 net income improved by $49M to $17.9M, driven by operational turnaround and strategic initiatives.
- Launched enhanced Pay Your Way platform with digital payment options (Apple Pay, Venmo) and expanded cash payment network to 80,000+ locations.
- Transitioned to a 7x7 credit scorecard, reducing credit losses, and rolled out nationwide risk-based pricing in May 2025.
- Q4 gross margin rose 90bps to 36.4%, with full-year margin up 200bps to 36.7%.

**【CFO Financial Highlights】**
- Q4 GAAP net income: $17.9M vs. prior year loss of $31.4M.
- Securitized $216M in ABS with 6.27% coupon, 22bps improvement vs. Jan 2025 issuance.
- Reduced credit loss reserves by $10.3M due to improved underwriting and data maturity.
- SG&A expenses +8.6% to $47.3M, driven by tech and acquisition investments.

**【Q&A Key Takeaways】**
- Tariffs added ~$300/unit procurement cost, but managed via pre-tax season inventory buildup.
- Risk-based pricing pilot shows 200bps rate increase in high-risk segments with no conversion drop.
- 7x7 scorecard adoption now covers 65.7% of receivables, improving credit performance.
- 2026 outlook: focus on receivables growth, capital structure optimization, and Cox partnership expansion.

America's Car-Mart, Inc (CRMT) Q4 2025 Earnings Call Transcript

- **Capital Structure Strengthened**: $350M ABL extension and $200M ABS transaction with 95bp spread improvement.
- **Revenue Growth Driven by Volumes**: 13.2% YoY sales growth, 8.7% total revenue increase.
- **Gross Margin Expansion**: 35.7% Q3 gross margin, targeting 37-38% annualized.
- **Portfolio Quality Improving**: Net charge-offs 6.1% vs 6.8%, 58% of portfolio under LOS.
- **Cost Control Progress**: Collections up 5.2%, interest expense down 1.1%.
- **Tax Season Momentum**: Strongest January application volume since 2019, 3.5% increase.

**【CEO Strategic Overview】**
- Extended and upsized $350M ABL facility to March 2027, improving capital flexibility.
- Completed $200M ABS transaction with 95bp spread improvement, oversubscribed 10x.
- Hired Sam Smith as VP of Capital Markets to enhance ABS platform and strategy.
- 13.2% YoY sales volume growth driven by tax season promotion and CRM tool adoption.
- Targeting 37-38% annualized gross margin, up from 35.7% Q3.

**【COO Operational Highlights】**
- Total revenue +8.7% vs prior year, despite 90bp ASP decline.
- Interest income +5.1% on $31M receivables growth and 50bp rate increase.
- Service contract price hike maintained penetration, offsetting repair cost inflation.
- 3.6% prequalified lead increase via early tax season promotion execution.
- Inventory expansion ahead of spring selling season drove better stock position.

**【CFO Financial Details】**
- Net charge-offs 6.1% vs 6.8% prior year, improving portfolio quality.
- 58% of portfolio now under LOS, reducing allowance to 24.31%.
- Sequential collections up 5.2%, monthly average collection $568 vs $540 prior year.
- SG&A +6.7% due to acquisitions and stock comp, but 947k sequential decline.
- Interest expense down 1.1% from rate improvements and ABS savings.

**【Q&A Key Takeaways】**
- Underwriting 6-8% below FY23 levels, cautious but selective loosening via risk-based pricing.
- Weather-related delinquencies resolved quickly, no lasting impact.
- Acquisitions (Texas Auto Centers) to add 5k+ accounts over 18-24 months.
- 34 stores testing new scorecard, early learnings indicate pricing elasticity opportunities.
- Tax season application volume up 3.5%, strongest January since 2019.
- 20% of portfolio from FY22-23 cohorts, improving as 60% now under LOS controls.

America's Car-Mart (CRMT)-6 Mar 25-2025 Q3 Earnings call transcript

America's Car-Mart (CRMT)-5 Dec 24-2025 Q2 Earnings call transcript

America's Car-Mart (CRMT)-4 Sep 24-2025 Q1 Earnings call transcript

Americas Car Mart (CRMT)-18 Jun 24-2024 Q4 Earnings call transcript

Americas Car Mart (CRMT)-8 Mar 24-2024 Q3 Earnings call transcript

- **Revenue Growth Despite Challenges**: 2.8% YoY revenue increase driven by interest income, despite sales volume decline. Average selling price rose 5.6% to $19,035.
- **Credit Losses Escalate**: Net charge-offs hit 7.2% of receivables (vs. 5.8% prior year), driven by 24% unit loss increase and vehicle depreciation. A $28 million provision was recorded.
- **Strategic Initiatives**: New Board member addition, dealership acquisition, and LOS rollout to improve underwriting. Plans to reduce vehicle prices via reconditioning partner in Q3.
- **Cost Control & Liquidity**: 10% workforce reduction and $1.6 million sequential expense decline. $86 million credit available and $90 million note redemption planned.

**【CEO Opening Remarks】**
- CEO Doug Campbell highlighted the company's focus on operational efficiency and customer affordability, emphasizing the importance of the new loan origination system (LOS) rollout. The company reported a 2.8% year-over-year revenue increase, driven by a 23% rise in interest income, despite a 4.6% decline in sales volumes.
- The average selling price increased by 5.6% to $19,035, with 60% of growth attributed to ancillary products. The LOS, now covering 45% of revenue, reduced originating terms by 0.6 months sequentially and increased down payments by 1% in new systems.
- Campbell announced the addition of Board member Jonathan Bupa, bringing expertise in subprime lending, and highlighted the completion of a dealership acquisition with sales volumes comparable to top stores.

**【CFO Financial Commentary】**
- Q2 2024 revenue was $361.6 million, up 2.8% YoY, with gross profit per unit improving 11.5% due to better vehicle quality and reconditioning. Operating expenses decreased by 10% through workforce reduction and cost control.
- Credit losses rose to 7.2% of average receivables (vs. 5.8% prior year), driven by a 24% increase in unit losses and vehicle depreciation. The company increased the allowance for credit losses by 2.13% sequentially, resulting in a $28 million provision charge.
- The company maintained $86 million in available credit and plans to redeem $90 million in securitized notes, freeing up seasoned collateral.

**【Q&A Highlights】**
- **Credit Losses & Provisions**: CFO Vickie Judy explained the higher provision ($3.40 EPS impact) was due to elevated unit losses and vehicle depreciation, with 2/3 of losses from 2021-22 pools. Delinquency rates improved sequentially, but macroeconomic challenges persist.
- **Underwriting Changes**: CEO Campbell noted stricter underwriting (shorter terms, higher down payments) reduced October sales but improved deal quality. The LOS rollout will continue, balancing volume with portfolio health.
- **Share Repurchases**: The company remains committed to buybacks but prioritizes acquisitions in the current market. No near-term covenant breaches are expected.
- **Affordability Initiatives**: Plans to resell repossessed vehicles at lower prices via a national reconditioning partner, launching in Q3 to address consumer affordability concerns.

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