by Lance Turner
Posted 12/6/2012 10:15 am
Updated 1 year ago
America's Car-Mart Inc. of Bentonville said Thursday that it plans to open three new auto dealerships by the end of the quarter. It also just opened its 118th dealership, located in Enterprise, Ala.
"Enterprise is our eleventh location to open in Alabama," William H. "Hank" Henderson, the company's president and CEO, said in a news release. "Alabama has been a great state for us, and we are excited about continuing to expand our business to more cities like Enterprise as we grow."
Henderson said the Enterprise opening marks the company's fourth new dealership in its current fiscal year, and Car-Mart plans to have three more open before the end of the quarter.
"Our current plans are to open an additional six new dealerships between now and the end of the current fiscal year," CFO Jeff Williams said. "Our solid financial results, strong balance sheet and competitive strengths will continue to allow us to provide the best possible service to our 55,000-plus active accounts and to future customers we will gain as we grow.
"We continue to expect to open additional dealerships at an approximate 10 percent annual rate beyond fiscal 2013," he said.
Two weeks ago, Car-Mart reported second-quarter net income of $7.3 million, down about 5 percent from the same quarter last year. Quarterly revenues also fell, hitting $110 million, down from $111 million from the same quarter last year. On a same-store basis, sales were down 4.8 percent, the company said.
America's Car-Mart is a publicly traded company (Nasdaq: CRMT) that operates used car lots based on the buy-here, pay-here model.