America's Car-Mart, Inc. · NASDAQ:CRMT
America's Car-Mart — Investor Presentation (March 2004)
26 slides from America's Car-Mart's investor presentation, Mar 2, 2004
Slide 1: America's Car-Mart
America’s _ aly y
Slide 2: Forward-looking statements
This presentation includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements address our future objectives, plans and goals, as well as our intent, beliefs and current expectations regarding future operating perf
Slide 3: Operates 69 Buy Here/Pay Here dealerships
Operates 69 “Buy Here/Pay Here” dealerships Dealerships located in small cities in South-Central U.S. Sells and finances used cars to customers with limited credit Sells quality, affordable transportation: $6,400 average price Car-Mart subsidiary has been profitable for 22 consecutive years March 2,
Slide 4: 69 Dealerships, 7 States, 660 Associates
69 Dealerships 7 States IN (1) KY KS MO (7) (1) (6) OK AR (13) (32) TX (9) Corporate Headquarters: Bentonville, AR 660 Associates $174M Revenues (FY2004P) March 2, 2004
Slide 5: Recent Price and Market Cap
Recent Price $ 27.50 Market Cap. $ 212M Shares Outstanding 7.7M Shares in Float 6.1M Institutional Ownership 32% Insider Ownership 21% 52 Week Low (03/11/03) $ 11.21 52 Week High (01/26/04) $ 37.65 Average Daily Volume 91,000 March 2, 2004
Slide 6: Continuing Operations FY2002-FY2004
Continuing Operations (excluding charges in FY2002) Proj FY2002 FY2003 FY2004 Revenue (mil) $127.9 $154.9 $174.4 Net Income (mil) $ 9.6 $ 13.6 $ 15.4 EPS (diluted) $ 1.33 $ 1.73 $1.92 - $1.94 Debt to Equity NM 0.39 to 1 0.27 to 1 March 2, 2004
Slide 7: Historical Growth and Projected Long-Term Range
Historical Growth Unit Sales / Store Openings / Revenues / Net Income Proj LT Rev & Profit Range: 16% - 18% 25.0% 21% 20% 20.0% 15.0% 13% 12% 10.0% 5.0% 0.0% Last 7 Fiscal Years Unit Sales Store Openings Revenues Net Income March 2, 2004
Slide 8: Total Dealerships and Units Sold
75 60 45 Total Dealerships 30 (69 currently) 15 40 47 55 64 70 - 4-00 4-01 4-02 4-03 4-04 (P) 25 20 15 10 Units Sold (thousands) (18.1 through 1.31.04) 5 13.9 15.7 18.7 22.0 24.3 - FY00 FY01 FY02 FY03 FY04 (P) March 2, 2004
Slide 9: Revenues and Pretax Profit
$200 $160 $120 Revenues (millions) $80 ($128M through 1.31.04) $40 89 106 127 155 174 $- FY00 FY01 FY02 FY03 FY04 (P) $30 $24 $18 Pretax Profit (millions) $12 ($17.5M through 1.31.04) $6 13.6 16.4 19.3 21.5 24.5 $- FY00 FY01 FY02 FY03 FY04 (P) March 2, 2004
Slide 10: Year-End Debt vs. Revenues
Year-End Debt vs. Revenues (in millions) Revenues Debt $180 $150 $120 $90 $60 $30 37 91 42 107 40 128 26 155 23 174 $- FY 00 FY 01 FY 02 FY 03 FY 04 (P) March 2, 2004
Slide 11: Same Store Revenue Growth
Same Store Revenue Growth 20.0% 15.4% 15.5% 15.0% 14.1% 12.7% 10.8% 10.0% 5.0% 0.0% FY 00 FY 01 FY 02 FY03 FY04-9mo March 2, 2004
Slide 12: Revenue Growth, Unit Sales Growth, Same Store Growth
20.0% 15.0% 14% 12% 11% 10.0% 5.0% 0.0% Revenue Growth Unit Sales Growth Same Store Revenue Growth Credit Losses as % of Sales: 21.9% Accounts 30 Days Past Due at 1/31/04: 4.5% March 2, 2004
Slide 13: Nine Months Ended January 31 Operating Data
Nine Months Ended January 31, Operating data: 2004 2003 Retail units sold 18,098 16,130 Avg # of stores in operation 66.2 60.5 Avg retail sales price $ 6,363 $ 6,334 Same store revenue growth 10.8% 15.0% Income statement data: 2004 2003 Total revenues $ 128.5M $ 112.7M Income from continuing ops $ 1
Slide 14: Dealership Openings and FY2005 Plans
4th Quarter FY2004: Lufkin, TX Mt. Pleasant, TX FY2005: Plan to add 8 dealerships; principal growth in: North and East Texas (6 potential markets) Missouri (3 potential markets) Oklahoma (2 potential markets) March 2, 2004
Slide 15: Revenue Growth Expected From the Following
Revenue Growth Expected From the Following: New dealership openings Increased prices (~3% increase, or $200 per vehicle, effective Dec. ‘03) Increase percentage of higher sales price cars sold at large dealerships Elimination of sales of lower price vehicles (below $4,800 retail) More capi
Slide 16: New vs. Developing vs. Mature Stores
Selected Financial Measures New vs. Developing vs. Mature Stores $6,000 5,438 $5,000 4,021 $4,000 1.6 Yrs 5.2 Yrs 17.1 Yrs $3,000 2,049 $2,000 1,436 1,066 852 $1,000 656 209 329 $- New Developing Mature Pretax Income Finance Receivables Revenues March 2, 2004
Slide 17: Credit Loss as % of Sales
Credit Loss as % of Sales 24% 20% 16% 12% 8% 4% 20.1% 20.2% 19.5% 19.2% 17.0% 17.6% 19.4% 18.5% 21.9% 0% FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 YTD March 2, 2004
Slide 18: Tighter standards for overdue accounts
Imposed tighter standards for overdue accounts: Expect to sharply reduce over 60 day delinquencies Will practically eliminate over 90 day delinquencies Stopped selling lower-priced cars (less than $4,800) and increased percentage of higher sales price cars Added collection supervisors at larger
Slide 19: Per-car economics: pretax profit per car
100.0% $ 6,400 Sales price 52.0% (3,330) Cost of sale 18.5% (1,180) Operating expenses 20.0% (1,280) Credit loss NM 450 Net interest income 16.5% $ 1,060 Pretax profit per car (retail) $ 450 Down payment 10% Interest Rate $ 68 Weekly payment 25 Month term March 2, 2004
Slide 20: Pretax Profit Per Unit Sold
Pretax Profit Per Unit Sold $1,200 $1,000 $800 $600 $400 $200 877 865 979 1,046 1,036 1,046 $- FY98 FY99 FY00 FY01 FY02 FY03 March 2, 2004
Slide 21: EPS from Continuing Operations (diluted)
EPS from Continuing Operations (diluted) (excluding charges in FY2002) Projected FY2002 FY2003 FY2004 1st Quarter $0.32 $0.43 $0.55 (actual) 2nd Quarter $0.29 $0.40 $0.48 (actual) 3rd Quarter $0.31 $0.42 $0.35 (actual) 4th Quarter $0.41 $0.48 $0.54 - 0.56 $1.33 $1.73 $1.92-$1.94 (April 30 Fiscal Yea
Slide 22: Debt to Equity, Return on Equity, Margins
Debt to Equity (1/04) 30% Debt to Receivables (1/04) 19% Return on Equity (FY03) 26% Gross Margin (FY04 YTD) 48% Net Margin (FY04 YTD) 9% Every Lot Profitable in FY2002 & FY2003 March 2, 2004
Slide 23: Investment highlights
22 consecutive years of profitability at Car-Mart History of earnings growth Most growth self funded Vast growth potential Strong balance sheet / low financial leverage Experienced management Proven business model March 2, 2004
Slide 24: Investor Contacts
Investor Contacts: T.J. (“Skip”) Falgout, CEO or Mark D. Slusser, CFO (972) 717-3423 J. Todd Atenhan or Valerie Kimball, Investor Relations (888) 917-5109 / [email protected] Corporate Offices: 1501 Southeast Walton Blvd., Suite 213 Bentonville, AR 72712 (479) 464-9944 4040 N. MacArthur Blvd., Su
Slide 25: Dealership locations by state
Bowling Green Elizabethtown Arkadelphia Henderson Batesville Hopkinsville KY Benton Madisonville Berryville IN Owensboro Camden Paducah Clarksville AR KY Conway El Dorado Wichita KS Fayetteville Forrest City KS Atlanta Longview Fort Smith Lufkin Harrison Nacodoches Hope TX Paris TX Hot Springs Sherm
Slide 26: March 2, 2004
March 2, 2004 > eee ART SRLT
America's Car-Mart — Investor Presentation (March 2004) on 6ix