Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Oct. 31, 2020 | Nov. 27, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000799850 | |
Entity Registrant Name | AMERICAS CARMART INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-14939 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 63-0851141 | |
Entity Address, Address Line One | 1805 North 2nd Street, Suite 401 | |
Entity Address, City or Town | Rogers | |
Entity Address, State or Province | AR | |
Entity Address, Postal Zip Code | 72756 | |
City Area Code | 479 | |
Local Phone Number | 464-9944 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CRMT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,624,648 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 |
Assets: | ||
Cash and cash equivalents | $ 19,533 | $ 59,560 |
Accrued interest on finance receivables | 2,643 | 3,098 |
Finance receivables, net | 519,810 | 466,141 |
Inventory | 67,428 | 36,414 |
Prepaid expenses and other assets | 4,873 | 4,441 |
Income taxes receivable, net | 647 | 0 |
Right-of-use asset | 61,855 | 60,713 |
Goodwill | 6,817 | 6,817 |
Property and equipment, net | 32,738 | 30,140 |
Total Assets | 716,344 | 667,324 |
Liabilities: | ||
Accounts payable | 16,047 | 13,117 |
Income tax payable, net | 0 | 3,841 |
Accrued liabilities | 24,151 | 19,729 |
Deferred income tax liabilities, net | 14,350 | 12,979 |
Lease liability | 64,166 | 62,810 |
Debt facilities | 213,523 | 215,568 |
Total liabilities | 372,313 | 364,165 |
Commitments and contingencies (Note J) | ||
Mezzanine equity: | ||
Mandatorily redeemable preferred stock | 400 | 400 |
Equity: | ||
Preferred stock, par value $.01 per share, 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, par value $.01 per share, 50,000,000 shares authorized; 13,530,432 and 13,478,733 issued at October 31, 2020 and April 30, 2020, respectively, of which 6,602,148 and 6,619,319 were outstanding at October 31, 2020 and April 30, 2020, respectively | 135 | 135 |
Additional paid-in capital | 94,771 | 88,559 |
Retained earnings | 501,616 | 460,876 |
Less: Treasury stock, at cost, 6,928,284 and 6,859,414 shares at October 31, 2020 and April 30, 2020, respectively | (252,991) | (246,911) |
Total stockholders' equity | 343,531 | 302,659 |
Non-controlling interest | 100 | 100 |
Total equity | 343,631 | 302,759 |
Total Liabilities, Mezzanine Equity and Equity | 716,344 | 667,324 |
Payment Protection Plan [Member] | ||
Liabilities: | ||
Deferred revenue | 26,840 | 24,480 |
Service Contract [Member] | ||
Liabilities: | ||
Deferred revenue | $ 13,236 | $ 11,641 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Oct. 31, 2020 | Apr. 30, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 13,530,432 | 13,478,733 |
Common stock, shares outstanding (in shares) | 6,602,148 | 6,619,319 |
Treasury stock, shares (in shares) | 6,928,284 | 6,859,414 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Revenues: | ||||
Sales | $ 196,684 | $ 167,743 | $ 359,483 | $ 317,817 |
Interest and other income | 26,676 | 22,567 | 51,788 | 44,371 |
Total revenue | 223,360 | 190,310 | 411,271 | 362,188 |
Costs and expenses: | ||||
Cost of sales | 116,690 | 99,826 | 211,564 | 188,711 |
Selling, general and administrative | 32,536 | 28,296 | 61,293 | 56,967 |
Provision for credit losses | 43,862 | 41,177 | 79,946 | 72,652 |
Interest expense | 1,658 | 2,081 | 3,377 | 4,085 |
Depreciation and amortization | 928 | 971 | 1,866 | 1,938 |
Loss (gain) on disposal of property and equipment | (64) | 2 | (64) | 39 |
Total costs and expenses | 195,610 | 172,353 | 357,982 | 324,392 |
Income before taxes | 27,750 | 17,957 | 53,289 | 37,796 |
Provision for income taxes | 6,554 | 4,070 | 12,529 | 8,398 |
Net income | 21,196 | 13,887 | 40,760 | 29,398 |
Less: Dividends on mandatorily redeemable preferred stock | (10) | (10) | (20) | (20) |
Net income attributable to common stockholders | $ 21,186 | $ 13,877 | $ 40,740 | $ 29,378 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 3.20 | $ 2.10 | $ 6.14 | $ 4.42 |
Diluted (in dollars per share) | $ 3.05 | $ 2 | $ 5.88 | $ 4.21 |
Basic (in shares) | 6,627,780 | 6,621,562 | 6,630,112 | 6,652,922 |
Diluted (in shares) | 6,935,707 | 6,952,667 | 6,925,651 | 6,984,709 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Net income | $ 40,760,000 | $ 29,398,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for credit losses | 79,946,000 | 72,652,000 |
Losses on claims for payment protection plan | 8,918,000 | 8,359,000 |
Depreciation and amortization | 1,866,000 | 1,938,000 |
Amortization of debt issuance costs | 168,000 | 115,000 |
Loss (gain) on disposal of property and equipment | (64,000) | 39,000 |
Stock based compensation | 3,715,000 | 2,212,000 |
Deferred income taxes | 1,371,000 | 2,023,000 |
Excess tax benefit from share based compensation | 331,000 | 415,000 |
Change in operating assets and liabilities: | ||
Finance receivable originations | (333,255,000) | (293,174,000) |
Finance receivable collections | 168,348,000 | 151,075,000 |
Accrued interest on finance receivables | 455,000 | (380,000) |
Inventory | (8,640,000) | 14,348,000 |
Prepaid expenses and other assets | (432,000) | (178,000) |
Accounts payable and accrued liabilities | 7,644,000 | 647,000 |
Income taxes, net | (4,819,000) | (10,000) |
Net cash used in operating activities | (29,733,000) | (8,379,000) |
Investing Activities: | ||
Purchase of property and equipment | (5,043,000) | (1,661,000) |
Proceeds from sale of property and equipment | 643,000 | 9,000 |
Net cash used in investing activities | (4,400,000) | (1,652,000) |
Financing Activities: | ||
Exercise of stock options | 2,378,000 | 865,000 |
Issuance of common stock | 119,000 | 90,000 |
Purchase of common stock | (6,080,000) | (14,696,000) |
Dividend payments | (20,000) | (20,000) |
Change in cash overdrafts | (78,000) | 577,000 |
Debt issuance costs | (51,000) | (435,000) |
Payments on note payable | (302,000) | (250,000) |
Proceeds from revolving credit facilities | 3,585,000 | 258,040,000 |
Payments on revolving credit facilities | (5,445,000) | (233,418,000) |
Net cash (used in) provided by financing activities | (5,894,000) | 10,753,000 |
(Decrease) increase in cash and cash equivalents | (40,027,000) | 722,000 |
Cash and cash equivalents, beginning of period | 59,560,000 | 1,752,000 |
Cash and cash equivalents, end of period | 19,533,000 | 2,474,000 |
Payment Protection Plan [Member] | ||
Change in operating assets and liabilities: | ||
Increase (decrease) in deferred revenue | 2,360,000 | 1,469,000 |
Service Contract [Member] | ||
Change in operating assets and liabilities: | ||
Increase (decrease) in deferred revenue | $ 1,595,000 | $ 673,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Apr. 30, 2019 | 13,376,030 | |||||
Balance at Apr. 30, 2019 | $ 134 | $ 81,605 | $ 409,573 | $ (230,902) | $ 100 | $ 260,510 |
Issuance of common stock (in shares) | 552 | |||||
Issuance of common stock | $ 0 | 40 | 0 | 0 | 0 | 40 |
Stock options exercised (in shares) | 15,815 | |||||
Stock options exercised | $ 0 | 80 | 0 | 0 | 0 | 80 |
Stock based compensation | 0 | 1,620 | 0 | 0 | 0 | 1,620 |
Dividends on subsidiary preferred stock | 0 | 0 | (10) | 0 | 0 | (10) |
Net income | 0 | 0 | 15,511 | 0 | 0 | 15,511 |
Purchase of treasury shares | $ 0 | 0 | 0 | (4,715) | 0 | (4,715) |
Balance (in shares) at Jul. 31, 2019 | 13,392,397 | |||||
Balance at Jul. 31, 2019 | $ 134 | 83,345 | 425,074 | (235,617) | 100 | 273,036 |
Balance (in shares) at Apr. 30, 2019 | 13,376,030 | |||||
Balance at Apr. 30, 2019 | $ 134 | 81,605 | 409,573 | (230,902) | 100 | 260,510 |
Net income | 29,398 | |||||
Balance (in shares) at Oct. 31, 2019 | 13,410,528 | |||||
Balance at Oct. 31, 2019 | $ 134 | 84,772 | 438,951 | (245,598) | 100 | 278,359 |
Balance (in shares) at Jul. 31, 2019 | 13,392,397 | |||||
Balance at Jul. 31, 2019 | $ 134 | 83,345 | 425,074 | (235,617) | 100 | 273,036 |
Issuance of common stock (in shares) | 631 | |||||
Issuance of common stock | $ 0 | 50 | 0 | 0 | 0 | 50 |
Stock options exercised (in shares) | 17,500 | |||||
Stock options exercised | $ 0 | 785 | 0 | 0 | 0 | 785 |
Stock based compensation | 0 | 592 | 0 | 0 | 0 | 592 |
Dividends on subsidiary preferred stock | 0 | 0 | (10) | 0 | 0 | (10) |
Net income | 0 | 0 | 13,887 | 0 | 0 | 13,887 |
Purchase of treasury shares | $ 0 | 0 | 0 | (9,981) | 0 | (9,981) |
Balance (in shares) at Oct. 31, 2019 | 13,410,528 | |||||
Balance at Oct. 31, 2019 | $ 134 | 84,772 | 438,951 | (245,598) | 100 | 278,359 |
Balance (in shares) at Apr. 30, 2020 | 13,478,733 | |||||
Balance at Apr. 30, 2020 | $ 135 | 88,559 | 460,876 | (246,911) | 100 | 302,759 |
Issuance of common stock (in shares) | 675 | |||||
Issuance of common stock | $ 0 | 50 | 0 | 0 | 0 | 50 |
Stock options exercised (in shares) | 22,000 | |||||
Stock options exercised | $ 0 | 1,166 | 0 | 0 | 0 | 1,166 |
Stock based compensation | 0 | 2,320 | 0 | 0 | 0 | 2,320 |
Dividends on subsidiary preferred stock | 0 | 0 | (10) | 0 | 0 | (10) |
Net income | $ 0 | 0 | 19,564 | 0 | 0 | 19,564 |
Balance (in shares) at Jul. 31, 2020 | 13,501,408 | |||||
Balance at Jul. 31, 2020 | $ 135 | 92,095 | 480,430 | (246,911) | 100 | 325,849 |
Balance (in shares) at Apr. 30, 2020 | 13,478,733 | |||||
Balance at Apr. 30, 2020 | $ 135 | 88,559 | 460,876 | (246,911) | 100 | 302,759 |
Net income | 40,760 | |||||
Balance (in shares) at Oct. 31, 2020 | 13,530,432 | |||||
Balance at Oct. 31, 2020 | $ 135 | 94,771 | 501,616 | (252,991) | 100 | 343,631 |
Balance (in shares) at Jul. 31, 2020 | 13,501,408 | |||||
Balance at Jul. 31, 2020 | $ 135 | 92,095 | 480,430 | (246,911) | 100 | 325,849 |
Issuance of common stock (in shares) | 958 | |||||
Issuance of common stock | $ 0 | 69 | 0 | 0 | 0 | 69 |
Stock options exercised (in shares) | 28,066 | |||||
Stock options exercised | $ 0 | 1,212 | 0 | 0 | 0 | 1,212 |
Stock based compensation | 0 | 1,395 | 0 | 0 | 0 | 1,395 |
Dividends on subsidiary preferred stock | 0 | 0 | (10) | 0 | 0 | (10) |
Net income | 0 | 0 | 21,196 | 0 | 0 | 21,196 |
Purchase of treasury shares | $ 0 | 0 | 0 | (6,080) | 0 | (6,080) |
Balance (in shares) at Oct. 31, 2020 | 13,530,432 | |||||
Balance at Oct. 31, 2020 | $ 135 | $ 94,771 | $ 501,616 | $ (252,991) | $ 100 | $ 343,631 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parentheticals) - shares | 3 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | |
Purchase of treasury shares (in shares) | 68,870 | 112,091 | 55,507 |
Note A - Organization and Busin
Note A - Organization and Business | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | A – Organization and Business America’s Car-Mart, Inc., a Texas corporation (the “Company”), is one not October 31, 2020, |
Note B - Summary of Significant
Note B - Summary of Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | B – Summary of Significant Accounting Policies General The accompanying condensed consolidated balance sheet as of April 30, 2020, October 31, 2020 2019, 10 10 X. not three six October 31, 2020 not may April 30, 2021. 10 April 30, 2020. Principles of Consolidation The condensed consolidated financial statements include the accounts of America’s Car-Mart, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated. Segment Information Each dealership is an operating segment with its results regularly reviewed by the Company’s chief operating decision maker in an effort to make decisions about resources to be allocated to the segment and to assess its performance. Individual dealerships meet the aggregation criteria for reporting purposes under the current accounting guidance. The Company operates in the Integrated Auto Sales and Finance segment of the used car market, also referred to as the Integrated Auto Sales and Finance industry. In this industry, the nature of the sale and the financing of the transaction, financing processes, the type of customer and the methods used to distribute the Company’s products and services, including the actual servicing of the contracts as well as the regulatory environment in which the Company operates, all have similar characteristics. Each of our individual dealerships are similar in nature and only engages in the selling and financing of used vehicles. All individual dealerships have similar operating characteristics. As such, individual dealerships have been aggregated into one reportable segment. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant estimates include, but are not Concentration of Risk The Company provides financing in connection with the sale of substantially all of its vehicles. These sales are made primarily to customers residing in Alabama, Arkansas, Georgia, Illinois, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, and Texas, with approximately 28% of current period revenues resulting from sales to Arkansas customers. As of October 31, 2020, one September 2022. Restrictions on Distributions/Dividends The Company’s revolving credit facilities generally restrict distributions by the Company to its shareholders. The distribution limitations under the credit facilities allow the Company to repurchase the Company’s stock so long as either: (a) the aggregate amount of such repurchases after September 30, 2019 not not twelve Cash Equivalents The Company considers all highly liquid debt instruments purchased with original maturities of three Finance Receivables, Repossessions and Charge-offs and Allowance for Credit Losses The Company originates installment sale contracts from the sale of used vehicles at its dealerships. These installment sale contracts carry an average interest rate of approximately 16.5% using the simple effective interest method including any deferred fees. Contract origination costs are not not October 31, 2020 April 30, 2020 . An account is considered delinquent when the customer is one not may October 31, 2020, 30 October 31, 2019. Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories or higher debt-to-income ratios than permitted by traditional lenders. Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit. The Company strives to keep its delinquency percentages low, and not three not Periodically, the Company enters into contract modifications with its customers to extend or modify the payment terms. The Company only enters into a contract modification or extension if it believes such action will increase the amount of monies the Company will ultimately realize on the customer’s account and will increase the likelihood of the customer being able to pay off the vehicle contract. At the time of modification, the Company expects to collect amounts due including accrued interest at the contractual interest rate for the period of delay. No third Accounts are charged-off after the expiration of a statutory notice period for repossessed accounts, or when management determines that the timely collection of future payments is not October 31, 2020, 76 The Company maintains an allowance for credit losses on an aggregate basis at a level it considers sufficient to cover estimated losses inherent in the portfolio over the remaining contractual lives in the collection of its finance receivables currently outstanding. At October 31, 2020, October 31, 2020, The estimated reserve amount is the Company’s anticipated future net charge-offs for losses incurred over the remaining contractual lives of its finance receivables. The allowance takes into account historical credit loss experience (both timing and severity of losses), with consideration given to recent credit loss trends and changes in contract characteristics (i.e., average amount financed, months outstanding at loss date, term and age of portfolio), delinquency levels, collateral values, economic conditions and underwriting and collection practices. The allowance for credit losses is reviewed at least quarterly by management with any changes reflected in current operations. The calculation of the allowance for credit losses uses the following primary factors: ● The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time from one five ● The average net repossession and charge-off loss per unit during the last eighteen 10 11 eighteen October 31, 2020 ● The timing of repossession and charge-off losses relative to the date of sale (i.e., how long it takes for a repossession or charge-off to occur) for repossessions and charge-offs occurring during the last eighteen A point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors, including fluctuations in the fair market value of repossessed vehicles, and macroeconomic factors such as higher unemployment levels, higher gasoline prices or higher prices for staple items, to arrive at an overall reserve amount that management considers to be a reasonable estimate of losses inherent in the portfolio over the remaining contractual lives that will be realized via actual charge-offs in the future. Although it is at least reasonably possible that events or circumstances could occur in the future that are not In most states, the Company offers retail customers who finance their vehicle the option of purchasing a debt cancellation agreement (internally referred to as the payment protection plan, or PPP) as an add-on to the installment sale contract. This product contractually obligates the Company to cancel the remaining principal outstanding for any contract where the retail customer has totaled the vehicle, as defined by the contract, or the vehicle has been stolen. The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred payment protection plan revenues, an additional liability is recorded for such difference. No October 31, 2020 April 30, 2020. Inventory Inventory consists of used vehicles and is valued at the lower of cost or net realizable value on a specific identification basis. Vehicle reconditioning costs are capitalized as a component of inventory. Repossessed vehicles and trade-in vehicles are recorded at fair value, which approximates wholesale value. The cost of used vehicles sold is determined using the specific identification method. Goodwill Goodwill reflects the excess of purchase price over the fair value of specifically identified net assets purchased. Goodwill and intangible assets deemed to have indefinite lives are not 2020, 2021. Property and Equipment Property and equipment are stated at cost. Expenditures for additions, remodels, and improvements are capitalized. Costs of repairs and maintenance are expensed as incurred. Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the lease period. The lease period includes the primary lease term plus any extensions that are reasonably assured. Depreciation is computed using the straight-line method, generally over the following estimated useful lives: Furniture, fixtures and equipment 3 to 7 years Leasehold improvements 5 to 15 years Buildings and improvements 18 to 39 years Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not Cash Overdraft As checks are presented for payment from the Company’s primary disbursement bank account, monies are automatically drawn against cash collections for the day and, if necessary, are drawn against one not Deferred Sales Tax Deferred sales tax represents a sales tax liability of the Company for vehicles sold on an installment basis in the states of Alabama and Texas. Under Alabama and Texas law for vehicles sold on an installment basis, the related sales tax is due as the payments are collected from the customer, rather than at the time of sale. Deferred sales tax liabilities are reflected in accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. Income Taxes Income taxes are accounted for under the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates expected to apply in the years in which these differences are expected to be recovered or settled. The quarterly provision for income taxes is determined using an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and the Company’s best estimate of nontaxable and nondeductible items of income and expense. The effective income tax rates were 23.5% and 22.2% for the six October 31, 2020 October 31, 2019, six October 31, 2020 six October 31, 2020 October 31, 2019, 2016 09, May 1, 2017. Occasionally, the Company is audited by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not not 50 The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no 2017. The Company’s policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accrued penalties or interest as of October 31, 2020 April 30, 2020. Revenue Recognition Revenues are generated principally from the sale of used vehicles, which in most cases includes a service contract and a payment protection plan product, interest income and late fees earned on finance receivables. Revenues are net of taxes collected from customers and remitted to government agencies. Cost of vehicle sales include costs incurred by the Company to prepare the vehicle for sale including license and title costs, gasoline, transport services, and repairs. Revenues from the sale of used vehicles are recognized when the sales contract is signed, the customer has taken possession of the vehicle and, if applicable, financing has been approved. Revenues from the sale of vehicles sold at wholesale are recognized at the time the proceeds are received. Revenues from the sale of service contracts are recognized ratably over the expected duration of the product. Service contract revenues are included in sales and the related expenses are included in cost of sales. Payment protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” Sales consist of the following: Three Months Ended Six Months Ended (In thousands) 2020 2019 2020 2019 Sales – used autos $ 172,813 $ 145,489 $ 314,447 $ 274,943 Wholesales – third party 9,283 8,245 16,232 15,426 Service contract sales 7,969 7,830 15,843 15,300 Payment protection plan revenue 6,619 6,179 12,961 12,148 Total $ 196,684 $ 167,743 $ 359,483 $ 317,817 At October 31, 2020 2019, 90 six October 31, 2020 2019, six October 31, 2020 April 30, 2020 Earnings per Share Basic earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period plus dilutive common stock equivalents. The calculation of diluted earnings per share takes into consideration the potentially dilutive effect of common stock equivalents, such as outstanding stock options and non-vested restricted stock, which if exercised or converted into common stock would then share in the earnings of the Company. In computing diluted earnings per share, the Company utilizes the treasury stock method and anti-dilutive securities are excluded. Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock option awards. The Company may six October 31, 2020 October 31, 2019, Treasury Stock Treasury stock may Recent Accounting Pronouncements Occasionally, new accounting pronouncements are issued by the FASB or other standard setting bodies which the Company will adopt as of the specified effective date. Unless otherwise discussed, the Company believes the implementation of recently issued standards which are not not Adopted in Current Period Credit Losses June 2016, 2016 13, 326 2016 13 May 1, 2020. not Cloud Computing Arrangement. August 2018, 2018 15, 350 40 2018 15 2018 15 December 15, 2019, not Effective in Future Periods Reference Rate Reform. March 2020, 2020 04, March 12, 2020 December 31, 2022. not |
Note C - Finance Receivables, N
Note C - Finance Receivables, Net | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | C – Finance Receivables, Net The Company originates installment sale contracts from the sale of used vehicles at its dealerships. These installment sale contracts, which carry an interest rate of 15% or 16.5% per annum (19.5% to 21.5% in Illinois), are collateralized by the vehicle sold and typically provide for payments over periods ranging from 18 to 48 months. The weighted average interest rate for the portfolio was approximately 16.5% at October 31, 2020. one The components of finance receivables are as follows: (In thousands) October 31, 2020 April 30, 2020 Gross contract amount $ 820,079 $ 728,841 Less unearned finance charges (127,304 ) (107,659 ) Principal balance 692,775 621,182 Less allowance for credit losses (172,965 ) (155,041 ) Finance receivables, net $ 519,810 $ 466,141 Changes in the finance receivables, net are as follows: Six Months Ended (In thousands) 2020 2019 Balance at beginning of period $ 466,141 $ 415,486 Finance receivable originations 333,255 293,174 Finance receivable collections (168,348 ) (151,075 ) Provision for credit losses (79,946 ) (72,652 ) Losses on claims for payment protection plan (8,918 ) (8,359 ) Inventory acquired in repossession and payment protection plan claims (22,374 ) (24,968 ) Balance at end of period $ 519,810 $ 451,606 Changes in the finance receivables allowance for credit losses are as follows: Six Months Ended (In thousands) 2020 2019 Balance at beginning of period $ 155,041 $ 127,842 Provision for credit losses 79,946 72,652 Charge-offs, net of recovered collateral (62,022 ) (65,013 ) Balance at end of period $ 172,965 $ 135,481 The factors which influenced management’s judgment in determining the amount of the current period provision for credit losses are described below. The level of charge-offs, net of recovered collateral, is the most important factor in determining the provision for credit losses. This is due to the fact that once a contract becomes delinquent the account is either made current by the customer, the vehicle is repossessed, or the account is written off if the collateral cannot be recovered. Net charge-offs as a percentage of average finance receivables decreased to 9.6% for the six October 31, 2020, Collections and delinquency levels can have a significant effect on additions to the allowance and are reviewed frequently. Collections as a percentage of average finance receivables were 25.9% for the six October 31, 2020 30 October 31, 2020 October 31, 2019. In addition to the objective factors discussed above, the Company also considers macro-economic factors such as higher unemployment levels, higher gasoline prices and higher prices for staple items to develop reasonable and supportable forecasts about the future. These economic forecasts are utilized alongside historical loss information in order to estimate losses inherent in the portfolio over the following twelve In the first 2020, fourth 2020, 19 19 Macro-economic factors, the competitive environment on the funding side, and more importantly, proper execution of operational policies and procedures have a significant effect on additions to the allowance charged to the provision. The Company continues to focus on operational improvements within the collections area. Credit quality information for finance receivables is as follows: (Dollars in thousands) October 31, 2020 April 30, 2020 October 31, 2019 Principal Percent of Principal Percent of Principal Percent of Balance Portfolio Balance Portfolio Balance Portfolio Current $ 604,306 87.23 % $ 515,390 82.97 % $ 478,136 81.44 % 3 - 29 days past due 71,412 10.31 % 67,259 10.83 % 88,606 15.09 % 30 - 60 days past due 12,434 1.79 % 25,311 4.07 % 14,267 2.43 % 61 - 90 days past due 3,047 0.44 % 10,140 1.63 % 3,852 0.66 % > 90 days past due 1,576 0.23 % 3,082 0.50 % 2,226 0.38 % Total $ 692,775 100.00 % $ 621,182 100.00 % $ 587,087 100.00 % Accounts one two may Finance receivables outstanding at October 31, 2020 In thousands) Fiscal Year of Origination Prior to 2021 2020 2019 2018 2017 2017 Total $ 300,859 304,214 75,570 10,020 1,427 685 $ 692,775 Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories, or higher debt-to-income ratios than permitted by traditional lenders; such contracts generally entail a higher risk of delinquency, default, repossession, and losses than contracts made with buyers with better credit. Therefore, the Company manages the level of risks inherent in the Company’s financing receivables as one Six Months Ended 2020 2019 Principal collected as a percent of average finance receivables 25.9 % 26.8 % Average down-payment percentage 6.9 % 6.2 % Average originating contract term (in months 33.1 30.2 October 31, 2020 October 31, 2019 Portfolio weighted average contract term, including modifications (in months 34.7 32.3 The decrease in collections as a percentage of average finance receivables resulted primarily from an extension in the average contract term, partially offset by improved collections on delinquent accounts. The portfolio weighted average contract term increased primarily due to the increased average selling price, up $1,598 or 13.9% from the prior year period. If the average selling price increases and in order to remain competitive, term lengths may |
Note D - Property and Equipment
Note D - Property and Equipment | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | D – Property and Equipment A summary of property and equipment is as follows: (In thousands) October 31, 2020 April 30, 2020 Land $ 7,594 $ 7,799 Buildings and improvements 12,062 12,678 Furniture, fixtures and equipment 14,502 14,118 Leasehold improvements 28,975 27,519 Construction in progress 6,007 3,186 Less accumulated depreciation and amortization (36,402 ) (35,160 ) Total $ 32,738 $ 30,140 |
Note E - Accrued Liabilities
Note E - Accrued Liabilities | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | E – Accrued Liabilities A summary of accrued liabilities is as follows: (In thousands) October 31, 2020 April 30, 2020 Employee compensation $ 10,839 $ 8,199 Deferred sales tax (see Note B) 4,947 2,974 Reserve for PPP claims 3,028 2,926 Health insurance 813 1,187 Fair value of contingent consideration 2,713 2,713 Other 1,811 1,730 Total $ 24,151 $ 19,729 |
Note F - Debt Facilities
Note F - Debt Facilities | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | F – Debt Facilities A summary of debt facilities is as follows: (In thousands) October 31, 2020 April 30, 2020 Revolving lines of credit $ 213,971 $ 215,831 Notes payable 20 79 Finance lease 202 445 Debt issuance costs (670 ) (787 ) Debt facilities $ 213,523 $ 215,568 On September 30, 2019, September 30, 2022 The revolving credit facilities are collateralized primarily by finance receivables and inventory, are cross collateralized and contain a guarantee by the Company. Interest is payable monthly under the revolving credit facilities. The credit facilities provide for four October 31, 2020 April 30, 2020. The Company was in compliance with the covenants at October 31, 2020. October 29, 2020, October 31, 2020, The Company recognized approximately $168,000 and $115,000 of amortization for the six October 31, 2020 2019, During the first six 2021 2020, October 31, 2020 April 30, 2020, On December 15, 2015, one December 2020, October 31, 2020 April 30, 2020, On March 29, 2018, October 31, 2020 April 30, 2020, three October 31, 2020, April 30, 2020, |
Note G - Fair Value Measurement
Note G - Fair Value Measurements | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | G – Fair Value Measurements The table below summarizes information about the fair value of financial instruments included in the Company’s financial statements at October 31, 2020 April 30, 2020: October 31, 2020 April 30, 2020 (In thousands) Carrying Fair Carrying Fair Cash $ 19,533 $ 19,533 $ 59,560 $ 59,560 Finance receivables, net 519,810 426,057 466,141 382,027 Accounts payable 16,047 16,047 13,117 13,117 Debt facilities 213,523 213,523 215,568 215,568 Because no Financial Instrument Valuation Methodology Cash The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument. Finance receivables, net The Company estimates the fair value of its receivables at what a third third third January 2019 third not third October 31, 2020, third Accounts payable The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instrument. Debt facilities The fair value approximates carrying value due to the variable interest rates charged on the revolving credit facilities, which reprice frequently. |
Note H - Weighted Average Share
Note H - Weighted Average Shares Outstanding | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Weighted Average Shares Outstanding [Text Block] | H – Weighted Average Shares Outstanding Weighted average shares of common stock outstanding used in the calculation of basic and diluted earnings per share were as follows: Three Months Ended 2020 2019 Weighted average shares outstanding-basic 6,627,780 6,621,562 Dilutive options and restricted stock 307,927 331,105 Weighted average shares outstanding-diluted 6,935,707 6,952,667 Antidilutive securities not included: Options 225,000 25,000 Restricted stock - 3,000 |
Note I - Stock-based Compensati
Note I - Stock-based Compensation | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | I – S tock- Based Compensation The Company has stock-based compensation plans available to grant non-qualified stock options, incentive stock options and restricted stock to employees, directors and certain advisors of the Company. The stock-based compensation plans being utilized at October 31, 2020 six October 31, 2020 2019, Stock Options The Company has options outstanding under a stock option plan approved by the shareholders, the Amended and Restated Stock Option Plan. The shareholders of the Company approved the Amended and Restated Stock Option Plan (the “Restated Option Plan”) on August 5, 2015, June 10, 2025 August 29, 2018, August 26, 2020, not not ten 2020 2030. Restated Option Plan Minimum exercise price as a percentage of fair market value at date of grant 100% Last expiration date for outstanding options May 1, 2030 Shares available for grant at October 31, 2020 245,000 The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions in the table below. Six Months Ended 2020 2019 Expected term (years) 5.5 5.5 Risk-free interest rate 0.36 % 2.28 % Volatility 50 % 39 % Dividend yield - - The expected term of the options is based on evaluations of historical actual and future expected employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of the Company’s common stock. The Company has not not There were 30,000 options granted during the six October 31, 2020 six October 31, 2019. six October 31, 2020 2019 Stock option compensation expense was $2.2 million ($1.7 million after tax effects) and $1.7 million ($1.3 million after tax effects) for the six October 31, 2020 2019, October 31, 2020, The Company had the following options exercised for the periods indicated. The impact of these cash receipts is included in financing activities in the accompanying Condensed Consolidated Statements of Cash Flows. Six Months Ended (Dollars in thousands) 2020 2019 Options exercised 55,566 39,000 Cash received from option exercises $ 2,548 $ 864 Intrinsic value of options exercised $ 2,439 $ 2,083 The aggregate intrinsic value of outstanding options at October 31, 2020 2019 October 31, 2020, Stock Incentive Plan On August 5, 2015, June 10, 2025. August 29, 2018, may There were 2,000 restricted shares granted during the six October 31, 2020 six October 31, 2019. October 31, 2020. October 31, 2020 As of October 31, 2020, six October 31, 2020 2019, There were no 2020 first six 2021. |
Note J - Commitments and Contin
Note J - Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | J – Commitments and Contingencies The Company has entered into operating leases for approximately 85% of its dealership and office facilities. Generally, these leases are for periods of three five six October 31, 2020 Scheduled amounts and timing of cash flows arising from operating lease payments as of October 31, 2020, October 31, 2020 Maturity of lease liabilities 2021 (remaining) $ 3,488 2022 6,989 2023 6,915 2024 6,398 2025 6,218 Thereafter $ 57,801 Total undiscounted operating lease payments 87,809 Less: imputed interest (23,643 ) Present value of operating lease liabilities $ 64,166 The Company has a standby letter of credit relating to an insurance policy totaling $250,000 at October 31, 2020. Car-Mart of Arkansas and Colonial do not |
Note K - Supplemental Cash Flow
Note K - Supplemental Cash Flow Information | 6 Months Ended |
Oct. 31, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | K - Su pplemental Cash Flow Information Supplemental cash flow disclosures are as follows: Six Months Ended (in thousands) 2020 2019 Supplemental disclosures: Interest paid $ 3,722 $ 3,990 Income taxes paid (refunds received), net 15,645 5,975 Non-cash transactions: Inventory acquired in repossession and payment protection plan claims 22,374 24,968 Net settlement option exercises 389 489 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The condensed consolidated financial statements include the accounts of America’s Car-Mart, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated. |
Segment Reporting, Policy [Policy Text Block] | Segment Information Each dealership is an operating segment with its results regularly reviewed by the Company’s chief operating decision maker in an effort to make decisions about resources to be allocated to the segment and to assess its performance. Individual dealerships meet the aggregation criteria for reporting purposes under the current accounting guidance. The Company operates in the Integrated Auto Sales and Finance segment of the used car market, also referred to as the Integrated Auto Sales and Finance industry. In this industry, the nature of the sale and the financing of the transaction, financing processes, the type of customer and the methods used to distribute the Company’s products and services, including the actual servicing of the contracts as well as the regulatory environment in which the Company operates, all have similar characteristics. Each of our individual dealerships are similar in nature and only engages in the selling and financing of used vehicles. All individual dealerships have similar operating characteristics. As such, individual dealerships have been aggregated into one reportable segment. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant estimates include, but are not |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risk The Company provides financing in connection with the sale of substantially all of its vehicles. These sales are made primarily to customers residing in Alabama, Arkansas, Georgia, Illinois, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, and Texas, with approximately 28% of current period revenues resulting from sales to Arkansas customers. As of October 31, 2020, one September 2022. |
Line of Credit Facility, Dividend Restrictions [Policy Text Block] | Restrictions on Distributions/Dividends The Company’s revolving credit facilities generally restrict distributions by the Company to its shareholders. The distribution limitations under the credit facilities allow the Company to repurchase the Company’s stock so long as either: (a) the aggregate amount of such repurchases after September 30, 2019 not not twelve |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid debt instruments purchased with original maturities of three |
Financing Receivable [Policy Text Block] | Finance Receivables, Repossessions and Charge-offs and Allowance for Credit Losses The Company originates installment sale contracts from the sale of used vehicles at its dealerships. These installment sale contracts carry an average interest rate of approximately 16.5% using the simple effective interest method including any deferred fees. Contract origination costs are not not October 31, 2020 April 30, 2020 . An account is considered delinquent when the customer is one not may October 31, 2020, 30 October 31, 2019. Substantially all of the Company’s automobile contracts involve contracts made to individuals with impaired or limited credit histories or higher debt-to-income ratios than permitted by traditional lenders. Contracts made with buyers who are restricted in their ability to obtain financing from traditional lenders generally entail a higher risk of delinquency, default and repossession, and higher losses than contracts made with buyers with better credit. The Company strives to keep its delinquency percentages low, and not three not Periodically, the Company enters into contract modifications with its customers to extend or modify the payment terms. The Company only enters into a contract modification or extension if it believes such action will increase the amount of monies the Company will ultimately realize on the customer’s account and will increase the likelihood of the customer being able to pay off the vehicle contract. At the time of modification, the Company expects to collect amounts due including accrued interest at the contractual interest rate for the period of delay. No third Accounts are charged-off after the expiration of a statutory notice period for repossessed accounts, or when management determines that the timely collection of future payments is not October 31, 2020, 76 The Company maintains an allowance for credit losses on an aggregate basis at a level it considers sufficient to cover estimated losses inherent in the portfolio over the remaining contractual lives in the collection of its finance receivables currently outstanding. At October 31, 2020, October 31, 2020, The estimated reserve amount is the Company’s anticipated future net charge-offs for losses incurred over the remaining contractual lives of its finance receivables. The allowance takes into account historical credit loss experience (both timing and severity of losses), with consideration given to recent credit loss trends and changes in contract characteristics (i.e., average amount financed, months outstanding at loss date, term and age of portfolio), delinquency levels, collateral values, economic conditions and underwriting and collection practices. The allowance for credit losses is reviewed at least quarterly by management with any changes reflected in current operations. The calculation of the allowance for credit losses uses the following primary factors: ● The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time from one five ● The average net repossession and charge-off loss per unit during the last eighteen 10 11 eighteen October 31, 2020 ● The timing of repossession and charge-off losses relative to the date of sale (i.e., how long it takes for a repossession or charge-off to occur) for repossessions and charge-offs occurring during the last eighteen A point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors, including fluctuations in the fair market value of repossessed vehicles, and macroeconomic factors such as higher unemployment levels, higher gasoline prices or higher prices for staple items, to arrive at an overall reserve amount that management considers to be a reasonable estimate of losses inherent in the portfolio over the remaining contractual lives that will be realized via actual charge-offs in the future. Although it is at least reasonably possible that events or circumstances could occur in the future that are not In most states, the Company offers retail customers who finance their vehicle the option of purchasing a debt cancellation agreement (internally referred to as the payment protection plan, or PPP) as an add-on to the installment sale contract. This product contractually obligates the Company to cancel the remaining principal outstanding for any contract where the retail customer has totaled the vehicle, as defined by the contract, or the vehicle has been stolen. The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred payment protection plan revenues, an additional liability is recorded for such difference. No October 31, 2020 April 30, 2020. |
Inventory, Policy [Policy Text Block] | Inventory Inventory consists of used vehicles and is valued at the lower of cost or net realizable value on a specific identification basis. Vehicle reconditioning costs are capitalized as a component of inventory. Repossessed vehicles and trade-in vehicles are recorded at fair value, which approximates wholesale value. The cost of used vehicles sold is determined using the specific identification method. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill reflects the excess of purchase price over the fair value of specifically identified net assets purchased. Goodwill and intangible assets deemed to have indefinite lives are not 2020, 2021. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Expenditures for additions, remodels, and improvements are capitalized. Costs of repairs and maintenance are expensed as incurred. Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the lease period. The lease period includes the primary lease term plus any extensions that are reasonably assured. Depreciation is computed using the straight-line method, generally over the following estimated useful lives: Furniture, fixtures and equipment 3 to 7 years Leasehold improvements 5 to 15 years Buildings and improvements 18 to 39 years Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not |
Cash Overdraft [Policy Text Block] | Cash Overdraft As checks are presented for payment from the Company’s primary disbursement bank account, monies are automatically drawn against cash collections for the day and, if necessary, are drawn against one not |
Deferred Sales Tax [Policy Text Block] | Deferred Sales Tax Deferred sales tax represents a sales tax liability of the Company for vehicles sold on an installment basis in the states of Alabama and Texas. Under Alabama and Texas law for vehicles sold on an installment basis, the related sales tax is due as the payments are collected from the customer, rather than at the time of sale. Deferred sales tax liabilities are reflected in accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates expected to apply in the years in which these differences are expected to be recovered or settled. The quarterly provision for income taxes is determined using an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and the Company’s best estimate of nontaxable and nondeductible items of income and expense. The effective income tax rates were 23.5% and 22.2% for the six October 31, 2020 October 31, 2019, six October 31, 2020 six October 31, 2020 October 31, 2019, 2016 09, May 1, 2017. Occasionally, the Company is audited by taxing authorities. These audits could result in proposed assessments of additional taxes. The Company believes that its tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from those of the Company, which could result in the imposition of additional taxes. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not not 50 The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no 2017. The Company’s policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accrued penalties or interest as of October 31, 2020 April 30, 2020. |
Revenue [Policy Text Block] | Revenue Recognition Revenues are generated principally from the sale of used vehicles, which in most cases includes a service contract and a payment protection plan product, interest income and late fees earned on finance receivables. Revenues are net of taxes collected from customers and remitted to government agencies. Cost of vehicle sales include costs incurred by the Company to prepare the vehicle for sale including license and title costs, gasoline, transport services, and repairs. Revenues from the sale of used vehicles are recognized when the sales contract is signed, the customer has taken possession of the vehicle and, if applicable, financing has been approved. Revenues from the sale of vehicles sold at wholesale are recognized at the time the proceeds are received. Revenues from the sale of service contracts are recognized ratably over the expected duration of the product. Service contract revenues are included in sales and the related expenses are included in cost of sales. Payment protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” Sales consist of the following: Three Months Ended Six Months Ended (In thousands) 2020 2019 2020 2019 Sales – used autos $ 172,813 $ 145,489 $ 314,447 $ 274,943 Wholesales – third party 9,283 8,245 16,232 15,426 Service contract sales 7,969 7,830 15,843 15,300 Payment protection plan revenue 6,619 6,179 12,961 12,148 Total $ 196,684 $ 167,743 $ 359,483 $ 317,817 At October 31, 2020 2019, 90 six October 31, 2020 2019, six October 31, 2020 April 30, 2020 |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income attributable to common stockholders by the average number of common shares outstanding during the period plus dilutive common stock equivalents. The calculation of diluted earnings per share takes into consideration the potentially dilutive effect of common stock equivalents, such as outstanding stock options and non-vested restricted stock, which if exercised or converted into common stock would then share in the earnings of the Company. In computing diluted earnings per share, the Company utilizes the treasury stock method and anti-dilutive securities are excluded. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock option awards. The Company may six October 31, 2020 October 31, 2019, |
Treasury Stock [Policy Text Block] | Treasury Stock Treasury stock may |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Occasionally, new accounting pronouncements are issued by the FASB or other standard setting bodies which the Company will adopt as of the specified effective date. Unless otherwise discussed, the Company believes the implementation of recently issued standards which are not not Adopted in Current Period Credit Losses June 2016, 2016 13, 326 2016 13 May 1, 2020. not Cloud Computing Arrangement. August 2018, 2018 15, 350 40 2018 15 2018 15 December 15, 2019, not Effective in Future Periods Reference Rate Reform. March 2020, 2020 04, March 12, 2020 December 31, 2022. not |
Note B - Summary of Significa_2
Note B - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Property, Plant, and Equipment Useful Life [Table Text Block] | Furniture, fixtures and equipment 3 to 7 years Leasehold improvements 5 to 15 years Buildings and improvements 18 to 39 years |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended Six Months Ended (In thousands) 2020 2019 2020 2019 Sales – used autos $ 172,813 $ 145,489 $ 314,447 $ 274,943 Wholesales – third party 9,283 8,245 16,232 15,426 Service contract sales 7,969 7,830 15,843 15,300 Payment protection plan revenue 6,619 6,179 12,961 12,148 Total $ 196,684 $ 167,743 $ 359,483 $ 317,817 |
Note C - Finance Receivables,_2
Note C - Finance Receivables, Net (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) October 31, 2020 April 30, 2020 Gross contract amount $ 820,079 $ 728,841 Less unearned finance charges (127,304 ) (107,659 ) Principal balance 692,775 621,182 Less allowance for credit losses (172,965 ) (155,041 ) Finance receivables, net $ 519,810 $ 466,141 |
Change In Finance Receivables Net [Table Text Block] | Six Months Ended (In thousands) 2020 2019 Balance at beginning of period $ 466,141 $ 415,486 Finance receivable originations 333,255 293,174 Finance receivable collections (168,348 ) (151,075 ) Provision for credit losses (79,946 ) (72,652 ) Losses on claims for payment protection plan (8,918 ) (8,359 ) Inventory acquired in repossession and payment protection plan claims (22,374 ) (24,968 ) Balance at end of period $ 519,810 $ 451,606 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Six Months Ended (In thousands) 2020 2019 Balance at beginning of period $ 155,041 $ 127,842 Provision for credit losses 79,946 72,652 Charge-offs, net of recovered collateral (62,022 ) (65,013 ) Balance at end of period $ 172,965 $ 135,481 |
Financing Receivable, Past Due [Table Text Block] | (Dollars in thousands) October 31, 2020 April 30, 2020 October 31, 2019 Principal Percent of Principal Percent of Principal Percent of Balance Portfolio Balance Portfolio Balance Portfolio Current $ 604,306 87.23 % $ 515,390 82.97 % $ 478,136 81.44 % 3 - 29 days past due 71,412 10.31 % 67,259 10.83 % 88,606 15.09 % 30 - 60 days past due 12,434 1.79 % 25,311 4.07 % 14,267 2.43 % 61 - 90 days past due 3,047 0.44 % 10,140 1.63 % 3,852 0.66 % > 90 days past due 1,576 0.23 % 3,082 0.50 % 2,226 0.38 % Total $ 692,775 100.00 % $ 621,182 100.00 % $ 587,087 100.00 % |
Schedule of Financing Receivable by Fiscal Year of Origination [Table Text Block] | In thousands) Fiscal Year of Origination Prior to 2021 2020 2019 2018 2017 2017 Total $ 300,859 304,214 75,570 10,020 1,427 685 $ 692,775 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Six Months Ended 2020 2019 Principal collected as a percent of average finance receivables 25.9 % 26.8 % Average down-payment percentage 6.9 % 6.2 % Average originating contract term (in months 33.1 30.2 |
Financing Receivable Contract Terms [Table Text Block] | October 31, 2020 October 31, 2019 Portfolio weighted average contract term, including modifications (in months 34.7 32.3 |
Note D - Property and Equipme_2
Note D - Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (In thousands) October 31, 2020 April 30, 2020 Land $ 7,594 $ 7,799 Buildings and improvements 12,062 12,678 Furniture, fixtures and equipment 14,502 14,118 Leasehold improvements 28,975 27,519 Construction in progress 6,007 3,186 Less accumulated depreciation and amortization (36,402 ) (35,160 ) Total $ 32,738 $ 30,140 |
Note E - Accrued Liabilities (T
Note E - Accrued Liabilities (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | (In thousands) October 31, 2020 April 30, 2020 Employee compensation $ 10,839 $ 8,199 Deferred sales tax (see Note B) 4,947 2,974 Reserve for PPP claims 3,028 2,926 Health insurance 813 1,187 Fair value of contingent consideration 2,713 2,713 Other 1,811 1,730 Total $ 24,151 $ 19,729 |
Note F - Debt Facilities (Table
Note F - Debt Facilities (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (In thousands) October 31, 2020 April 30, 2020 Revolving lines of credit $ 213,971 $ 215,831 Notes payable 20 79 Finance lease 202 445 Debt issuance costs (670 ) (787 ) Debt facilities $ 213,523 $ 215,568 |
Note G - Fair Value Measureme_2
Note G - Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | October 31, 2020 April 30, 2020 (In thousands) Carrying Fair Carrying Fair Cash $ 19,533 $ 19,533 $ 59,560 $ 59,560 Finance receivables, net 519,810 426,057 466,141 382,027 Accounts payable 16,047 16,047 13,117 13,117 Debt facilities 213,523 213,523 215,568 215,568 |
Note H - Weighted Average Sha_2
Note H - Weighted Average Shares Outstanding (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended 2020 2019 Weighted average shares outstanding-basic 6,627,780 6,621,562 Dilutive options and restricted stock 307,927 331,105 Weighted average shares outstanding-diluted 6,935,707 6,952,667 Antidilutive securities not included: Options 225,000 25,000 Restricted stock - 3,000 |
Note I - Stock-based Compensa_2
Note I - Stock-based Compensation (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Stock Option Plan Comparison [Table Text Block] | Restated Option Plan Minimum exercise price as a percentage of fair market value at date of grant 100% Last expiration date for outstanding options May 1, 2030 Shares available for grant at October 31, 2020 245,000 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended 2020 2019 Expected term (years) 5.5 5.5 Risk-free interest rate 0.36 % 2.28 % Volatility 50 % 39 % Dividend yield - - |
Schedule of Share-based Compensation, Stock Options, Exercises [Table Text Block] | Six Months Ended (Dollars in thousands) 2020 2019 Options exercised 55,566 39,000 Cash received from option exercises $ 2,548 $ 864 Intrinsic value of options exercised $ 2,439 $ 2,083 |
Note J - Commitments and Cont_2
Note J - Commitments and Contingencies (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity of lease liabilities 2021 (remaining) $ 3,488 2022 6,989 2023 6,915 2024 6,398 2025 6,218 Thereafter $ 57,801 Total undiscounted operating lease payments 87,809 Less: imputed interest (23,643 ) Present value of operating lease liabilities $ 64,166 |
Note K - Supplemental Cash Fl_2
Note K - Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six Months Ended (in thousands) 2020 2019 Supplemental disclosures: Interest paid $ 3,722 $ 3,990 Income taxes paid (refunds received), net 15,645 5,975 Non-cash transactions: Inventory acquired in repossession and payment protection plan claims 22,374 24,968 Net settlement option exercises 389 489 |
Note A - Organization and Bus_2
Note A - Organization and Business (Details Textual) | 6 Months Ended |
Oct. 31, 2020 | |
Number of Operating Subsidiaries | 2 |
Number of Dealerships Operated | 150 |
Note B - Summary of Significa_3
Note B - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||
Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2020USD ($)shares | Oct. 31, 2019USD ($) | Apr. 30, 2020USD ($) | Oct. 31, 2020USD ($) | Jul. 31, 2019 | Apr. 30, 2019USD ($) | |
Number of Reportable Segments | 1 | |||||||
Average Finance Receivable Interest Rate | 16.50% | |||||||
Interest Receivable | $ 2,643,000 | $ 2,643,000 | $ 3,098,000 | $ 2,643,000 | ||||
Finance Receivables, Customer Payments Due Either Weekly or Bi-Weekly, Percentage | 77.00% | |||||||
Financing Receivable, Greater Than or Equal to 30 Days Past Due, Percent of Portfolio | 2.50% | 3.50% | 2.50% | 3.50% | 2.50% | |||
Financing Receivable, Weighted Average Total Contract Term (Month) | 34 months 21 days | |||||||
Financing Receivable, Remaining Contract Term (Month) | 26 months | |||||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 172,965,000 | $ 135,481,000 | $ 172,965,000 | $ 135,481,000 | 155,041,000 | $ 172,965,000 | $ 127,842,000 | |
Finance Receivables, Allowance, Percent of Principle Balance | 26.50% | 26.50% | 26.50% | 24.50% | 25.00% | |||
Finance Receivable Principal Balance | $ 692,775,000 | 587,087,000 | $ 692,775,000 | $ 587,087,000 | 621,182,000 | $ 692,775,000 | ||
Percent of Chargeoffs in the First 10 to 11 Months of a Contract | 50.00% | 50.00% | 50.00% | |||||
Average Age of Account at Charge-Off Date (Month) | 13 months | |||||||
Goodwill, Impairment Loss | $ 0 | 0 | ||||||
Effective Income Tax Rate Reconciliation, Percent, Total | 23.50% | 22.20% | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ (331,000) | $ (415,000) | ||||||
Open Tax Year | 2017 2018 2019 2020 | |||||||
Income Tax Examination, Penalties and Interest Accrued, Total | $ 0 | $ 0 | 0 | $ 0 | ||||
Financing Receivable, Recorded Investment Greater Than 90 Days Past Due | 1,576,000 | 2,226,000 | 1,576,000 | 2,226,000 | 3,082,000 | 1,576,000 | ||
Late Fee Income Generated by Servicing Financial Assets, Amount | 1,100,000 | 980,000 | ||||||
Contract with Customer, Liability, Revenue Recognized | 9,300,000 | |||||||
Income Tax Expense (Benefit), Total | 6,554,000 | $ 4,070,000 | $ 12,529,000 | 8,398,000 | ||||
Treasury Stock Shares to Establish Reserve Account to Secure Service Contracts (in shares) | shares | 10,000 | |||||||
ACM Insurance Company [Member] | ||||||||
Treasury Stock, Shares to Establish Reserve Account to Meet Regulatory Requirements for Insurance Company (in shares) | shares | 14,000 | |||||||
Accounting Standards Update 2016-09 [Member] | ||||||||
Income Tax Expense (Benefit), Total | $ (331,000) | $ (415,000) | ||||||
Minimum [Member] | ||||||||
Allowance for Credit Losses, Primary Factor Units Repossessed or Charged Off Evaluation Period (Year) | 1 year | |||||||
Maximum [Member] | ||||||||
Allowance for Credit Losses, Primary Factor Units Repossessed or Charged Off Evaluation Period (Year) | 5 years | |||||||
Payment Protection Plan [Member] | ||||||||
Contract with Customer, Liability, Total | 26,840,000 | $ 26,840,000 | 24,480,000 | 26,840,000 | ||||
Service Contract [Member] | ||||||||
Contract with Customer, Liability, Total | $ 13,236,000 | 13,236,000 | $ 11,641,000 | $ 13,236,000 | ||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Distribution Limitations, Maximum Aggregate Amount of Stock Repurchases | $ 50,000,000 | |||||||
Line of Credit Facility, Distribution Limitations Percentage of Sum of Borrowing Bases | 20.00% | |||||||
Line of Credit Facility, Distribution Limitations Percentage of Consolidated Net Income | 75.00% | |||||||
Line of Credit Facility Distribution Limitations Minimum Percentage of Aggregate Funds Available | 12.50% | |||||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Arkansas, USA [Member] | ||||||||
Concentration Risk, Percentage | 28.00% |
Note B - Summary of Significa_4
Note B - Summary of Significant Accounting Policies - Property and Equipment, Estimated Useful Lives (Details) | 6 Months Ended |
Oct. 31, 2020 | |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property and equipment (Year) | 3 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property and equipment (Year) | 5 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property and equipment (Year) | 18 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property and equipment (Year) | 7 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property and equipment (Year) | 15 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property and equipment (Year) | 39 years |
Note B - Summary of Significa_5
Note B - Summary of Significant Accounting Policies - Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Sales | $ 196,684 | $ 167,743 | $ 359,483 | $ 317,817 |
Sales Used Autos [Member] | ||||
Sales | 172,813 | 145,489 | 314,447 | 274,943 |
Wholesales Third Party [Member] | ||||
Sales | 9,283 | 8,245 | 16,232 | 15,426 |
Service Contract Sales [Member] | ||||
Sales | 7,969 | 7,830 | 15,843 | 15,300 |
Payment Protection Plan Revenue [Member] | ||||
Sales | $ 6,619 | $ 6,179 | $ 12,961 | $ 12,148 |
Note C - Finance Receivables,_3
Note C - Finance Receivables, Net (Details Textual) - USD ($) | 6 Months Ended | ||||
Oct. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | |
Finance Receivables, Weighted Average Interest Rate | 16.50% | ||||
Finance Receivables, Number of Loan Classes | 1 | ||||
Finance Receivables, Number of Risk Pools | 1 | ||||
Net Charge Offs as Percentage of Average Finance Receivables | 9.60% | 11.50% | |||
Collections as Percentage of Average Financing Receivables | 25.90% | 26.80% | |||
Delinquencies Greater Than 30 Days as Percentage of Average Financing Receivables | 2.50% | 3.50% | |||
Finance Receivables, Allowance, Percent of Principle Balance | 26.50% | 24.50% | 25.00% | ||
Increase (Decrease) in Average Selling Price | $ 1,598 | ||||
Increase (Decrease) in Average Selling Price, Percentage | 13.90% | ||||
COVID-19 Pandemic [Member] | |||||
Finance Receivables, Allowance, Percent of Principle Balance | 26.50% | ||||
Minimum [Member] | |||||
Financing Receivable Interest Rate | 15.00% | ||||
Financing Receivable Payment Period (Month) | 18 months | ||||
Minimum [Member] | ILLINOIS | |||||
Financing Receivable Interest Rate | 19.50% | ||||
Maximum [Member] | |||||
Financing Receivable Interest Rate | 16.50% | ||||
Financing Receivable Payment Period (Month) | 48 months | ||||
Maximum [Member] | ILLINOIS | |||||
Financing Receivable Interest Rate | 21.50% |
Note C - Finance Receivables,_4
Note C - Finance Receivables, Net - Components of Finance Receivables (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Apr. 30, 2019 |
Gross contract amount | $ 820,079 | $ 728,841 | ||
Less unearned finance charges | (127,304) | (107,659) | ||
Principal balance | 692,775 | 621,182 | $ 587,087 | |
Less allowance for credit losses | (172,965) | (155,041) | (135,481) | $ (127,842) |
Finance receivables, net | $ 519,810 | $ 466,141 | $ 451,606 | $ 415,486 |
Note C - Finance Receivables,_5
Note C - Finance Receivables, Net - Changes in Finance Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Balance | $ 466,141 | $ 415,486 | ||
Finance receivable originations | 333,255 | 293,174 | ||
Finance receivable collections | (168,348) | (151,075) | ||
Provision for credit losses | $ (43,862) | $ (41,177) | (79,946) | (72,652) |
Losses on claims for payment protection plan | (8,918) | (8,359) | ||
Inventory acquired in repossession and payment protection plan claims | (22,374) | (24,968) | ||
Balance | $ 519,810 | $ 451,606 | $ 519,810 | $ 451,606 |
Note C - Finance Receivables,_6
Note C - Finance Receivables, Net - Changes in the Finance Receivables Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Balance | $ 155,041 | $ 127,842 | ||
Provision for credit losses | $ 43,862 | $ 41,177 | 79,946 | 72,652 |
Charge-offs, net of recovered collateral | (62,022) | (65,013) | ||
Balance | $ 172,965 | $ 135,481 | $ 172,965 | $ 135,481 |
Note C - Finance Receivables,_7
Note C - Finance Receivables, Net - Credit Quality Information for Finance Receivables (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 |
Current, principal balance | $ 604,306 | $ 515,390 | $ 478,136 |
Current | 87.23% | 82.97% | 81.44% |
3 - 29 days past due, principal balance | $ 71,412 | $ 67,259 | $ 88,606 |
3 - 29 days past due | 10.31% | 10.83% | 15.09% |
30 - 60 days past due, principal balance | $ 12,434 | $ 25,311 | $ 14,267 |
30 - 60 days past due | 1.79% | 4.07% | 2.43% |
61 - 90 days past due, principal balance | $ 3,047 | $ 10,140 | $ 3,852 |
61 - 90 days past due | 0.44% | 1.63% | 0.66% |
> 90 days past due, principal balance | $ 1,576 | $ 3,082 | $ 2,226 |
> 90 days past due | 0.23% | 0.50% | 0.38% |
Total, principal balance | $ 692,775 | $ 621,182 | $ 587,087 |
Total | 100.00% | 100.00% | 100.00% |
Note C - Finance Receivables,_8
Note C - Finance Receivables, Net - Finance Receivable Summarized by Fiscal Year of Origination (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 |
Principal balance | $ 692,775 | $ 621,182 | $ 587,087 |
Financing Receivable Originated in 2021 [Member] | |||
Principal balance | 300,859 | ||
Financing Receivable Originated in 2020 [Member] | |||
Principal balance | 304,214 | ||
Financing Receivable Originated in 2019 [Member] | |||
Principal balance | 75,570 | ||
Financing Receivable Originated in 2018 [Member] | |||
Principal balance | 10,020 | ||
Financing Receivable Originated in 2017 [Member] | |||
Principal balance | 1,427 | ||
Financing Receivable Originated Prior to 2017 [Member] | |||
Principal balance | $ 685 |
Note C - Finance Receivables,_9
Note C - Finance Receivables, Net - Financing Receivables Analysis (Details) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Principal collected as a percent of average finance receivables | 25.90% | 26.80% |
Average down-payment percentage | 6.90% | 6.20% |
Average originating contract term (in months) (Month) | 33 months 3 days | 30 months 6 days |
Note C - Finance Receivables_10
Note C - Finance Receivables, Net - Average Financing Receivable Contract Terms (Details) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Portfolio weighted average contract term, including modifications (Month) | 34 months 21 days | 32 months 9 days |
Note D - Property and Equipme_3
Note D - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 |
Less accumulated depreciation and amortization | $ (36,402) | $ (35,160) |
Total | 32,738 | 30,140 |
Land [Member] | ||
Property and equipment | 7,594 | 7,799 |
Building and Building Improvements [Member] | ||
Property and equipment | 12,062 | 12,678 |
Furniture, Fixtures and Equipment [Member] | ||
Property and equipment | 14,502 | 14,118 |
Leasehold Improvements [Member] | ||
Property and equipment | 28,975 | 27,519 |
Construction in Progress [Member] | ||
Property and equipment | $ 6,007 | $ 3,186 |
Note E - Accrued Liabilities -
Note E - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 |
Employee compensation | $ 10,839 | $ 8,199 |
Deferred sales tax (see Note B) | 4,947 | 2,974 |
Reserve for PPP claims | 3,028 | 2,926 |
Health insurance | 813 | 1,187 |
Fair value of contingent consideration | 2,713 | 2,713 |
Other | 1,811 | 1,730 |
Total | $ 24,151 | $ 19,729 |
Note F - Debt Facilities (Detai
Note F - Debt Facilities (Details Textual) - USD ($) | Mar. 29, 2018 | Dec. 15, 2015 | Jul. 31, 2020 | Oct. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2020 | Sep. 30, 2019 | Sep. 29, 2019 |
Line of Credit Facility, Additional Borrowing Capacity, Accordion Feature | $ 27,000,000 | |||||||
Amortization of Debt Issuance Costs and Discounts, Total | 168,000 | $ 115,000 | ||||||
Payments of Debt Issuance Costs | 51,000 | $ 435,000 | ||||||
Debt Issuance Costs, Gross | 670,000 | $ 787,000 | ||||||
Finance Lease, Liability, Total | 202,000 | 445,000 | ||||||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 422,000 | 340,000 | ||||||
Assets Under Finance Lease [Member] | ||||||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |||||||
Note Payable Related to the Property Purchase Agreement [Member] | ||||||||
Debt Instrument, Face Amount | $ 550,000 | |||||||
Debt Instrument, Periodic Payment, Total | $ 10,005 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||||
Long-term Debt, Total | $ 20,000 | $ 79,000 | ||||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 241,000,000 | $ 215,000,000 | ||||||
Line of Credit Facility, Additional Borrowing Capacity, Accordion Feature | 100,000,000 | 50,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.85% | 2.98% | ||||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.35% | |||||||
Colonial Revolving Credit Facility [Member] | BMO Harris Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 231,000,000 | $ 205,000,000 | ||||||
ACM TCM Revolving Credit Facility [Member] | BMO Harris Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 |
Note F - Debt Facilities - Summ
Note F - Debt Facilities - Summary of Debt Facilities (Details) - USD ($) | Oct. 31, 2020 | Apr. 30, 2020 |
Finance lease | $ 202,000 | $ 445,000 |
Debt issuance costs | (670,000) | (787,000) |
Debt facilities | 213,523,000 | 215,568,000 |
Line of Credit [Member] | ||
Debt facilities, gross | 213,971,000 | 215,831,000 |
Notes Payable [Member] | ||
Debt facilities, gross | $ 20,000 | $ 79,000 |
Note G - Fair Value Measureme_3
Note G - Fair Value Measurements (Details Textual) | 1 Months Ended |
Jan. 31, 2019 | |
Fair Value Inputs, Discount Rate, Intercompany Transactions | 38.50% |
Minimum [Member] | Measurement Input, Discount Rate [Member] | |
Receivables, Measurement Input | 0.34 |
Maximum [Member] | Measurement Input, Discount Rate [Member] | |
Receivables, Measurement Input | 0.39 |
Note G - Fair Value Measureme_4
Note G - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 |
Reported Value Measurement [Member] | ||
Cash | $ 19,533 | $ 59,560 |
Finance receivables, net | 519,810 | 466,141 |
Accounts payable | 16,047 | 13,117 |
Debt facilities | 213,523 | 215,568 |
Estimate of Fair Value Measurement [Member] | ||
Cash | 19,533 | 59,560 |
Finance receivables, net | 426,057 | 382,027 |
Accounts payable | 16,047 | 13,117 |
Debt facilities | $ 213,523 | $ 215,568 |
Note H - Weighted Average Sha_3
Note H - Weighted Average Shares Outstanding - Weighted Average Shares of Common Stock Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Weighted average shares outstanding-basic (in shares) | 6,627,780 | 6,621,562 | 6,630,112 | 6,652,922 |
Dilutive options and restricted stock (in shares) | 307,927 | 331,105 | ||
Weighted average shares outstanding-diluted (in shares) | 6,935,707 | 6,952,667 | 6,925,651 | 6,984,709 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive securities (in shares) | 225,000 | 25,000 | ||
Restricted Stock [Member] | ||||
Antidilutive securities (in shares) | 0 | 3,000 |
Note I - Stock-based Compensa_3
Note I - Stock-based Compensation (Details Textual) - USD ($) | Aug. 26, 2020 | Aug. 29, 2018 | Aug. 05, 2015 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 30,000 | 25,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Fair Value | $ 886,000 | $ 974,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 15,600,000 | $ 23,100,000 | $ 15,600,000 | $ 23,100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number (in shares) | 272,184 | 272,184 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 8,800,000 | $ 8,800,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term (Year) | 5 years 6 months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 55.23 | $ 55.23 | |||||
Share-based Payment Arrangement, Option [Member] | |||||||
Share-based Payment Arrangement, Expense | $ 2,200,000 | 1,700,000 | |||||
Share-based Payment Arrangement, Expense, after Tax | 1,700,000 | 1,300,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 6,500,000 | $ 6,500,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 1 month 6 days | ||||||
Restated Option Plan [Member] | |||||||
Share-based Payment Arrangement, Expense | $ 3,700,000 | 2,200,000 | |||||
Share-based Payment Arrangement, Expense, after Tax | $ 2,800,000 | 1,700,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,200,000 | 2,000,000 | 1,800,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 200,000 | 200,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 245,000 | 245,000 | |||||
Restated Option Plan [Member] | Share-based Payment Arrangement, Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||||
Stock Incentive Plan [Member] | |||||||
Share-based Payment Arrangement, Expense | $ 561,000 | 521,000 | |||||
Share-based Payment Arrangement, Expense, after Tax | 426,000 | $ 399,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 450,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 100,000 | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 5,900,000 | $ 5,900,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 5 years 9 months 18 days | ||||||
Stock Incentive Plan [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 2,000 | 3,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 92,199 | 92,199 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 186,828 | 186,828 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 49.88 |
Note I - Stock-based Compensa_4
Note I - Stock-based Compensation - Stock Option Plan Comparison (Details) - Restated Option Plan [Member] | 6 Months Ended |
Oct. 31, 2020shares | |
Last expiration date for outstanding options | May 1, 2030 |
Shares available for grant (in shares) | 245,000 |
Note I - Stock-based Compensa_5
Note I - Stock-based Compensation - Options Valuation Assumptions (Details) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Expected term (years) (Year) | 5 years 6 months | 5 years 6 months |
Risk-free interest rate | 0.36% | 2.28% |
Volatility | 50.00% | 39.00% |
Dividend yield | 0.00% | 0.00% |
Note I - Stock-based Compensa_6
Note I - Stock-based Compensation - Options Exercised (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Options exercised (in shares) | 55,566 | 39,000 |
Cash received from option exercises | $ 2,548 | $ 864 |
Intrinsic value of options exercised | $ 2,439 | $ 2,083 |
Note J - Commitments and Cont_3
Note J - Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Operating Lease, Percent of Facilities Leased | 85.00% | |
Operating Lease, Expense | $ 4,000,000 | $ 3,500,000 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.34% | |
Letters of Credit Outstanding, Amount | $ 250,000 | |
Minimum [Member] | Dealership Leases [Member] | ||
Lessee, Operating Lease, Term of Contract (Year) | 3 years | |
Maximum [Member] | Dealership Leases [Member] | ||
Lessee, Operating Lease, Term of Contract (Year) | 5 years |
Note J - Commitments and Cont_4
Note J - Commitments and Contingencies - Future Lease Obligations (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 |
2021 (remaining) | $ 3,488 | |
2022 | 6,989 | |
2023 | 6,915 | |
2024 | 6,398 | |
2025 | 6,218 | |
Thereafter | 57,801 | |
Total undiscounted operating lease payments | 87,809 | |
Less: imputed interest | (23,643) | |
Lease liability | $ 64,166 | $ 62,810 |
Note K - Supplemental Cash Fl_3
Note K - Supplemental Cash Flow Information - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Interest paid | $ 3,722 | $ 3,990 |
Income taxes paid (refunds received), net | 15,645 | 5,975 |
Inventory acquired in repossession and payment protection plan claims | 22,374 | 24,968 |
Net settlement option exercises | $ 389 | $ 489 |