America’s Car-Mart Inc. of Bentonville on Monday reported first-quarter net income of $19.6 million, or $2.83 per share, up from $15.5 million, or $2.21 per share, in the same quarter a year ago.
Total revenue for the quarter also increased year-over-year. It was $187.9 million, compared to $171.9 million.
Car-Mart reported 12,176 vehicles sold at an average price of $12,800 compared to more vehicles (12,523) sold at a lower average price ($11,410) a year ago. Same-store revenue growth was 5.5% for the quarter, up from 3.3%.
“Once again, results were strong, and our ‘scoreboard’ is solid,” President and CEO Jeff Williams said in a news release. “We are certainly proud of the operating success; however, we do not celebrate the scoreboard. We look deeper at the quality of our daily work and how we can continue to improve and fulfill our obligation to serve significantly more customers into the future. While we are making good progress, we maintain a sense of urgency to quickly improve in all areas.”
Williams said Car-Mart is continuing to invest in the recruiting, training and retention of its employees; its digital presence; and better inventory procurement.
The company opened two new dealerships during the quarter, is working to acquire another two, and believes that it will have more acquisition opportunities in the future, he said.
CFO Vickie Judy added that first quarter earnings were affected by reduced inventory levels, especially of lower-priced vehicles, and less foot traffic at dealerships, both a result of the pandemic. But Car-Mart also acquired newer, lower-mileage vehicles at “affordable prices for our customers” from rental car companies that are reducing their fleets, she said.