America's Car-Mart Inc. of Bentonville reported jumps in third-quarter revenue and income Monday for fiscal year 2018.
Car-Mart said revenue for the quarter was $147.2 million, up from $138.7 million in the same quarter of 2017. The revenue increase was with three fewer stores, as Car-Mart reported 140 locations in operation.
Income rose to $13.4 million, a sharp increase from $2.8 million reported in the third quarter of 2017. The Tax Cut & Jobs Act, which was signed into law in December, was a major factor; the company said it received an tax income benefit of $7.5 million in the third quarter from the lowered corporate tax rate.
Earnings per share for the quarter was $1.82, compared to 35 cents in the same quarter a year ago. The company said, if the tax cut benefit was excluded, earnings per share would have been 60 cents for the quarter.
"We are pleased with what we would consider a good, solid quarter," Car-Mart CEO Jeff Williams said. "Fundamentals across the board were good, and the business continues to move in the right direction."
The company reported 11,420 vehicles sold during the quarter, up from 10.866 sold in the same quarter a year ago. Same-store revenue growth was up 7.1 percent, compared to 1.1 percent a year ago.
Car-Mart reported a decrease in net charge-off — writing off a debt it believes it won't collect — from 7.8 percent a year ago to 7.4 percent in the third quarter of 2018. Accounts more than 30 days past due dropped from 4.7 percent to 4.1 percent.
"[T]his does not happen by accident and is the direct result of the dedication, focus and hard work of our associates who are passionate about helping our customers succeed," Williams said. "We are in a tough business, but it's a business with great purpose and our associates are up to the challenge. We are proud of where we are and excited about our future."
