Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2024 | Sep. 12, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-14939 | |
Entity Registrant Name | AMERICA’S CAR-MART, INC. | |
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 $0.01 per share | |
Trading Symbol | CRMT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 6,396,757 | |
Entity Central Index Key | 0000799850 | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
us-gaap_AssetsAbstract | ||
Cash and cash equivalents | $ 4,748 | $ 5,522 |
Restricted cash | 93,873 | 88,925 |
Accrued interest on finance receivables | 7,507 | 6,907 |
Finance receivables, net | 1,126,271 | 1,098,591 |
Inventory | 114,548 | 107,470 |
Income tax receivable, net | 938 | 2,958 |
Prepaid expenses and other assets | 33,071 | 31,276 |
Right-of-use asset | 67,625 | 61,185 |
Goodwill | 22,896 | 14,449 |
Property and equipment, net | 59,793 | 60,361 |
Total Assets | 1,531,270 | 1,477,644 |
Liabilities: | ||
Accounts payable | 35,582 | 21,379 |
Accrued liabilities | 32,547 | 27,828 |
Deferred income tax liabilities, net | 16,866 | 17,808 |
Lease liability | 70,690 | 64,250 |
Notes payable, net | 597,494 | 553,629 |
Revolving line of credit, net | 184,846 | 200,819 |
Total liabilities | 1,059,717 | 1,006,494 |
Commitments and Contingencies | ||
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; 13,729,504 and 13,727,013 issued at July 31, 2024 and April 30, 2024, respectively, of which 6,396,757 and 6,394,675 were outstanding at July 31, 2024 and April 30, 2024, respectively | 137 | 137 |
Additional paid-in capital | 115,331 | 113,930 |
Retained earnings | 653,395 | 654,369 |
Less: Treasury stock, at cost, 7,332,747 and 7,332,338 shares at July 31, 2024 and April 30, 2024, respectively | (297,810) | (297,786) |
Total stockholders' equity | 471,053 | 470,650 |
Non-controlling interest | 100 | 100 |
Total equity | 471,153 | 470,750 |
Total Liabilities, Mezzanine Equity and Equity | 1,531,270 | 1,477,644 |
Payment Protection Plan [Member] | ||
Liabilities: | ||
Deferred revenue | 52,041 | 51,836 |
Service Contract [Member] | ||
Liabilities: | ||
Deferred revenue | $ 69,651 | $ 68,945 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jul. 31, 2024 | Apr. 30, 2024 |
Preferred Stock, Par or Stated Value Per Share (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 or Stated Value Per Share (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) | 13,729,504 | 13,727,013 |
Common Stock, Shares, Outstanding (in shares) | 6,396,757 | 6,394,675 |
Treasury Stock, Common, Shares (in shares) | 7,332,747 | 7,332,338 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
us-gaap_RevenuesAbstract | ||
Sales | $ 287,248 | $ 310,337 |
Interest and other income | 60,515 | 56,456 |
Total revenues | 347,763 | 366,793 |
Costs and expenses: | ||
Cost of sales | 186,570 | 202,647 |
Selling, general and administrative | 46,711 | 46,470 |
Provision for credit losses | 95,423 | 96,323 |
Interest expense | 18,312 | 14,274 |
Depreciation and amortization | 1,884 | 1,693 |
Loss on disposal of property and equipment | (46) | (166) |
Total costs and expenses | 348,946 | 361,573 |
(Loss) income before taxes | (1,183) | 5,220 |
(Benefit) Provision for income taxes | (219) | 1,034 |
Net (loss) income | (964) | 4,186 |
Less: Dividends on mandatorily redeemable preferred stock | (10) | (10) |
Net (loss) income attributable to common stockholders | $ (974) | $ 4,176 |
Earnings per share: | ||
Basic (in dollars per share) | $ (0.15) | $ 0.65 |
Diluted (in dollars per share) | $ (0.15) | $ 0.63 |
Weighted average number of shares used in calculation: | ||
Basic (in shares) | 6,396,757 | 6,381,704 |
Diluted (in shares) | 6,396,757 | 6,635,002 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Operating Activities: | ||
Net (loss) income | $ (964,000) | $ 4,186,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for credit losses | 95,423,000 | 96,323,000 |
Losses on claims for accident protection plan | 9,321,000 | 7,769,000 |
Depreciation and amortization | 1,884,000 | 1,693,000 |
Amortization of debt issuance costs | 1,265,000 | 1,286,000 |
Loss on disposal of property and equipment | 0 | 166,000 |
Impairment of fixed asset | 0 | 12,000 |
Impairment of goodwill | 46,000 | 0 |
Stock based compensation | 1,324,000 | 2,451,000 |
Deferred income taxes | (943,000) | (3,217,000) |
Excess tax benefit from share based compensation | 0 | 130,000 |
Change in operating assets and liabilities: | ||
Finance receivable originations | (271,756,000) | (297,732,000) |
Loan origination costs | 0 | (27,000) |
Finance receivable collections | 112,358,000 | 109,291,000 |
Accrued interest on finance receivables | (600,000) | (642,000) |
Inventory | 25,603,000 | 23,953,000 |
Prepaid expenses and other assets | (2,332,000) | (1,571,000) |
Accounts payable and accrued liabilities | 11,466,000 | 1,413,000 |
Income taxes, net | 2,021,000 | 3,987,000 |
Net cash used in operating activities | (14,972,000) | (45,399,000) |
Investing Activities: | ||
Acquisition | (7,527,000) | 0 |
Purchase of property and equipment | (986,000) | (1,379,000) |
Proceeds from sale of property and equipment | 0 | 529,000 |
Net cash used in investing activities | (8,513,000) | (850,000) |
Financing Activities: | ||
Exercise of stock options | 0 | (455,000) |
Issuance of common stock | 76,000 | 78,000 |
Purchase of common stock | (24,000) | (68,000) |
Dividend payments | (10,000) | (10,000) |
Change in cash overdrafts | 989,000 | 0 |
Debt issuance costs | (1,387,000) | (4,091,000) |
Issuances of notes payable | 149,889,000 | 360,340,000 |
Payments on notes payable | (106,076,000) | (116,862,000) |
Proceeds from revolving line of credit | 136,000,000 | 104,803,000 |
Payments on revolving line of credit | (151,798,000) | (273,319,000) |
Net cash provided by financing activities | 27,659,000 | 70,416,000 |
Increase in cash, cash equivalents, and restricted cash | 4,174,000 | 24,167,000 |
Cash, cash equivalents, and restricted cash beginning of period | 94,447,000 | 68,034,000 |
Cash, cash equivalents, and restricted cash end of period | 98,621,000 | 92,201,000 |
Accident Protection Plan [Member] | ||
Change in operating assets and liabilities: | ||
Deferred accident protection plan revenue | 205,000 | 1,651,000 |
Service Contract [Member] | ||
Change in operating assets and liabilities: | ||
Deferred accident protection plan revenue | $ 707,000 | $ 3,479,000 |
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, Common [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Apr. 30, 2023 | 13,701,468 | |||||
Balance at Apr. 30, 2023 | $ 137 | $ 109,929 | $ 685,802 | $ (297,421) | $ 100 | $ 498,547 |
Issuance of common stock (in shares) | 2,921 | |||||
Issuance of common stock | $ 0 | 78 | 0 | 0 | 0 | 78 |
Stock options exercised (in shares) | 6,493 | |||||
Stock options exercised | $ 0 | (455) | 0 | 0 | 0 | (455) |
Purchase of treasury shares | 0 | 0 | 0 | (68) | 0 | (68) |
Stock based compensation | 0 | 2,451 | 0 | 0 | 0 | 2,451 |
Dividends on subsidiary preferred stock | 0 | 0 | (10) | 0 | 0 | (10) |
Net (loss) income | $ 0 | 0 | 4,186 | 0 | 0 | 4,186 |
Balance (in shares) at Jul. 31, 2023 | 13,710,882 | |||||
Balance at Jul. 31, 2023 | $ 137 | 112,003 | 689,978 | (297,489) | 100 | 504,729 |
Balance (in shares) at Apr. 30, 2024 | 13,727,013 | |||||
Balance at Apr. 30, 2024 | $ 137 | 113,930 | 654,369 | (297,786) | 100 | 470,750 |
Issuance of common stock (in shares) | 2,491 | |||||
Issuance of common stock | $ 0 | 76 | 0 | 0 | 0 | 76 |
Stock options exercised (in shares) | 0 | |||||
Stock options exercised | $ 0 | 0 | 0 | 0 | 0 | 0 |
Purchase of treasury shares | 0 | 0 | 0 | (24) | 0 | (24) |
Stock based compensation | 0 | 1,325 | 0 | 0 | 0 | 1,325 |
Dividends on subsidiary preferred stock | 0 | 0 | (10) | 0 | 0 | (10) |
Net (loss) income | $ 0 | 0 | (964) | 0 | 0 | (964) |
Balance (in shares) at Jul. 31, 2024 | 13,729,504 | |||||
Balance at Jul. 31, 2024 | $ 137 | $ 115,331 | $ 653,395 | $ (297,810) | $ 100 | $ 471,153 |
Note A - Organization and Busin
Note A - Organization and Business | 3 Months Ended |
Jul. 31, 2024 | |
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 of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. References to the Company typically include the Company’s consolidated subsidiaries. The Company’s operations are principally conducted through its two |
Note B - Summary of Significant
Note B - Summary of Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2024 | |
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, 2024, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of July 31, 2024 and 2023, have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended July 31, 2024 are not necessarily indicative of the results that may be expected for the year ending April 30, 2025. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended April 30, 2024. 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 individual dealership is 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 Reclassifications Accident protection plan (“APP”) reserves in the amount of approximately $11.7 million and Wholesales Sales of $1.2 million in the prior year financial statements were reclassified to conform with the current year presentation. As of July 31, 2023, APP reserves of $5.8 million were reclassed out of accrued liabilities to reserve against finance receivables and $5.9 million of estimated APP insurance receivables were reclassed out of finance receivables to prepaid expenses and other assets. For the three months ended July 31, 2023, $1.2 million of Wholesales sales were reclassed out of Wholesales – third party sales to Cost of Goods Sold. The reclassification had no effect on the prior year net income or shareholder’s equity. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) 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 the Company’s allowance for credit losses. 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 29% of current period revenues resulting from sales to Arkansas customers. As of July 31, 2024, and periodically throughout the period, the Company maintained cash in financial institutions in excess of the amounts insured by the federal government. The cash is held in several highly rated banking institutions. The Company regularly monitors its counterparty credit risk and mitigates exposure by limiting the amount it invests in one institution. Restrictions on Distributions / Dividends The Company’s revolving credit facilities generally restrict distributions by the Company to its shareholders. As of July 31, 2024, the distribution limitations under the credit facilities allowed the Company to repurchase the Company’s stock so long as either: (a) the aggregate amount of such repurchases after September 30, 2021 did not exceed $50 million, net of proceeds received from the exercise of stock options, and the total availability under the credit facilities was equal to or greater than 20% of the sum of the borrowing bases, in each case after giving effect to such repurchases (repurchases under this item were excluded from fixed charges for covenant calculations), or (b) the aggregate amount of such repurchases did not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the Company’s stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remained available. On September 16, 2024, the Company entered into an amendment to its revolving credit facilities that, among other things, restricts the Company from future repurchases of the Company’s stock. See Note M for additional information on this amendment to the revolving credit facilities. Thus, the Company is limited in its ability to pay dividends or make other distributions to its shareholders without the consent of the Company’s lenders. Cash Equivalents The Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. Restricted Cash Restricted cash is related to the financing and securitization transaction and the warehouse facility discussed below and is held by the securitization trust and the paying agent, respectively. Restricted cash from collections on auto finance receivables for non-recourse notes includes collections of principal, interest, and late fee payments on auto finance receivables that are restricted for payment to holders of non-recourse notes payable pursuant to the applicable agreements. Restricted cash from collections on auto finance receivables for the warehouse facility includes collections of principal, interest, and late fee payments on auto finance receivables that are restricted for payment to the warehouse facility lender (see Note F) pursuant to the Company's warehouse agreement. The restricted cash on deposit in reserve accounts is for the benefit of holders of non-recourse notes payable and the warehouse facility lender, and these funds are not expected to be available to the Company or its creditors. If the cash generated by the related receivables in a given period was insufficient to pay the interest, principal, and other required payments, the balances on deposit in the reserve accounts would be used to pay those amounts. Restricted cash consisted of the following at July 31, 2024 and April 30, 2024: (In thousands) July 31, 2024 April 30, 2024 Restricted cash from collections on auto finance receivables for non-recourse notes payable $ 35,134 $ 43,956 Restricted cash on deposit in reserve accounts for non-recourse notes payable 44,969 44,969 Restricted cash from collections for warehouse facility 8,304 - Restricted cash on deposit in reserve accounts for warehouse facility 5,466 - Restricted Cash $ 93,873 $ 88,925 Financing, Securitization, and Warehouse Transactions The Company utilizes term securitizations to provide long-term funding for a portion of the auto finance receivables initially funded through the debt facilities. In these transactions, a pool of auto finance receivables is sold to a special purpose entity that, in turn, transfers the receivables to a special purpose trust. The trust issues asset-backed securities, secured by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to purchase the receivables. The Company recognizes transfers of auto finance receivables into the term securitization as secured borrowings, recording the auto finance receivables and the related non-recourse notes payable on our consolidated balance sheet. These auto finance receivables can only be used as collateral to settle obligations of the related non-recourse notes payable until the issued notes are repaid in full. The term securitization investors have no recourse to the Company’s assets beyond the related auto finance receivables, the amounts on deposit in the reserve account, and the cash from collections on auto finance receivables. The Company’s principal operating subsidiary and a newly formed affiliate also entered into a loan and security agreement in the current quarter, under which the Company's affiliate borrowed $150 million through an amortizing warehouse loan facility collateralized by certain additional auto finance receivables originated by the Company’s operating subsidiaries. Under the loan and security agreement, the warehouse lender has recourse against the Company for up to 10% of the aggregate amount borrowed under the facility. See Notes C and F for additional information on auto finance receivables, non-recourse notes payable and warehouse loan facility. The Company carries the debt from the term securitization trusts and the warehouse facility on its balance sheet in recognition of the Company’s residual economic interest in the receivable pools for each transaction. The Company or one of its subsidiaries serves as the servicer for each securitization and for the warehouse facility, managing collection activities in the same manner as it does with its overall portfolio of receivables. The overcollateralization in each financing serves to absorb credit losses (subject to limitations) and the Company receives remaining assets of the trust or the facility upon repayment in full of the related indebtedness. 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 a weighted average interest rate of approximately 17.4% using the simple effective interest method including any deferred fees. During the third quarter of the 2024 fiscal year, the Company increased the interest rate on new originations of installment sale contracts to 18.25% (from 18.0%) in all states except Arkansas (which originate at 16.75%), Illinois (which originate at 19.5% - 21.5%) and acquired dealerships in Tennessee (which originate at up to 23.0%). Contract origination costs are not significant. The installment sale contracts are structured to have variable payments whereby borrowers are obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the contract. Finance receivables are collateralized by vehicles sold and consist of contractually scheduled payments from installment contracts net of unearned finance charges and an allowance for credit losses. Unearned finance charges to be collected represent the balance of interest receivable to be earned over the remaining term of the related installment contract, and as such, have been reflected as a reduction to the gross contract amount in arriving at the principal balance in finance receivables . An account is considered delinquent when the customer is one day or more behind on their contractual payments. While the Company does not formally place contracts on nonaccrual status, the immaterial amount of interest that may accrue after an account becomes delinquent up until the point of resolution via repossession or write-off is reserved for against the accrued interest on the Condensed Consolidated Balance Sheets. Delinquent contracts are addressed and either made current by the customer, which is the case in most situations, or the vehicle is repossessed or written off if the collateral cannot be recovered quickly. Customer payments are set to match their payday, with approximately 78% of payments due on either a weekly or bi-weekly basis. The frequency of the payment due dates combined with the declining value of collateral lead to prompt resolutions on problem accounts. On July 31, 2024, 3.5% of the Company’s finance receivable balances were 30 days or more past due, compared to 3.1% at April 30, 2024. Substantially all of the Company’s installment sale 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. At the time of originating an installment sale contract, the Company requires customers to meet certain criteria that demonstrate their intent and ability to pay for the financed principal and interest on the vehicle they are purchasing. However, the Company recognizes that their customer base is at a higher risk of default given their impaired or limited credit histories. The Company strives to keep its delinquency percentages low, and not to repossess vehicles. Accounts one to three days late are contacted by telephone or text messaging notifications. Notes from each contact are electronically maintained in the Company’s computer system. The Company also utilizes text messaging notifications that allow customers the option to receive due date reminders and late notifications, if applicable. The Company attempts to resolve payment delinquencies amicably prior to repossessing a vehicle. If a customer becomes severely delinquent in his or her payments, and management determines that timely collection of future payments is not probable, the Company will take steps to repossess the vehicle. 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 money the Company will ultimately realize on the customer’s account and will increase the likelihood of the customer being able to pay off the installment sale 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 other concessions are granted to customers, beyond the extension of additional time, at the time of modifications. Modifications are minor and are made for payday changes, minor vehicle repairs and other reasons. For those vehicles that are repossessed, the majority are returned or surrendered by the customer on a voluntary basis. Other repossessions are performed by Company personnel or third-party repossession agents. Depending on the condition of a repossessed vehicle, it is either resold on a retail basis through a Company dealership or sold for cash on a wholesale basis, primarily through physical or online auctions. The Company takes steps to repossess a vehicle when the customer becomes delinquent in his or her payments and management determines that timely collection of future payments is not probable. 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 probable for accounts where the Company has been unable to repossess the vehicle. For accounts with respect to which the vehicle was repossessed, the fair value of the repossessed vehicle is charged as a reduction of the gross finance receivables balance charged-off. On average, accounts are approximately 70 days past due at the time of charge-off. For previously charged-off accounts that are subsequently recovered, the amount of such recovery is credited to the allowance for credit losses. The amount of the net repossession and charge-off loss is also reduced by any deferred service contract and accident protection plan revenue at the time of charge-off. The quantitative portion of the Company's allowance for credit losses is measured using an undiscounted cash flow (“CF”) model whereby the undiscounted cash flows are adjusted by a prepayment rate and then the loss rate is applied and compared to the amortized cost basis of finance receivables to reflect management’s estimate of expected credit losses. The CF model is based on installment sale contract level characteristics of the Company’s finance receivables, such as the contractual payment structure, maturity date, payment frequency for recurring payments, and interest rates, as well as the following assumptions: ● a historical loss period, which represents a full economic credit cycle utilizing loss experience, to calculate the historical loss rate; and ● static annualized historical rate based on average time of charge-off; and ● expected prepayment rates based on our historical experience, which also incorporates non-standard contractual payments such as down payments made during the first ninety-days or annual seasonal payments. The Company’s allowance for credit losses also considers qualitative factors not captured within the CF modeled results such as changes in underwriting and collection practices, economic trends, changes in volume and terms of installment sales contracts, credit quality trends, installment sale contract review results, collateral trends, and concentrations of credit. The Company’s qualitative factors incorporate a macroeconomic variable forecast of inflation over a reasonable and supportable forecast period of one year that affects its customers’ non-discretionary income and ability to repay. The reasonable and supportable forecast period of one year is based on management’s current review of the reliability of extended forecasts and is applied as an adjustment to the historical loss rate. The Company maintains an allowance for credit losses on an aggregate basis at an amount it considers sufficient to cover net credit losses expected over the remaining life of the installment sales contracts in the portfolio at the measurement date. At July 31, 2024, the weighted average total contract term was 48.1 months, with 36.1 months remaining. The allowance for credit losses at July 31, 2024, $334.4 million, was 25.0% of the principal balance in finance receivables of $1.5 billion, less deferred APP revenue of $52.0 million and deferred service contract revenue of $69.7 million, less pending APP claims of $5.2 million. The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations. In most states, the Company offers retail customers who finance their vehicle the option of purchasing an accident protection plan product 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’s vehicle is totaled, as defined by the product, or the vehicle has been stolen. The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred accident protection plan revenues, an additional liability is recorded for such difference. At July 31, 2024, anticipated losses did not exceed deferred accident protection plan revenues. 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 amortized but are subject to qualitative annual impairment tests at the Company’s year-end. The impairment tests are based on the comparison of the fair value of the reporting unit to the carrying value of such unit. The implied goodwill is compared to the carrying value of the goodwill to determine the impairment, if any. During the three months ended July 31, 2024, the Company evaluated goodwill and recorded an immaterial impairment of $46,000 due to the closure of an acquired dealership location in the first quarter of fiscal year 2024. The Company also recorded an $8.5 million increase to goodwill due to the acquisition of Texas Auto Center. Goodwill totaled $22.9 million at July 31, 2024 and $14.4 million at April 30, 2024. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. 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 principally 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 Long-Lived Assets Long-lived assets, such as property and equipment, capitalized internal-use software and operating lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, such assets are considered to be impaired, and the impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. Cloud Computing Implementation Costs The Company enters into cloud computing service contracts to support its sales, inventory management, and administrative activities. The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other assets on the Condensed Consolidated Balance Sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption on the Condensed Consolidated Statement of Operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $18.1 million and $16.7 million as of July 31, 2024 and April 30, 2024, respectively. Accumulated amortization of capitalized implementation costs for these arrangements was $958,000 for the three months ended July 31, 2024 and $48,000 for the same period in the prior year. 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 of the revolving credit facilities. Any cash overdraft balance principally represents outstanding checks, net of any deposits in transit that as of the balance sheet date had not yet been presented for payment, net of any deposits in transit. Any cash overdraft balance is reflected in accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. 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 18.5% and 19.8% for the three months ended July 31, 2024 and July 31, 2023, respectively. Total income tax expense for the three months ended July 31, 2024 differed from amounts computed by applying the United States federal statutory tax rates to pre-tax income primarily due to state income taxes and the impact of permanent differences between book and taxable income. The Company did not 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 sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company applies this methodology to all tax positions for which the statute of limitations remains open. 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 longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before fiscal 2021. 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 Revenue Recognition Revenues are generated principally from the sale of used vehicles, which in most cases includes a service contract and an accident protection plan product, as well as 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. Accident protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” interest method over the life of the contract so that revenues are recognized in proportion to the amount of cancellation protection provided. Accident protection plan revenues are included in sales and related losses are included in cost of sales as incurred. Any unearned revenue from ancillary products is charged-off at the time of repossession. Interest income is recognized on all active finance receivables accounts using the simple effective interest method. Active accounts include all accounts except those that have been paid-off or charged-off. Sales for the three months ended July 31, 2024 and 2023 consisted of the following: Three Months Ended (In thousands) 2024 2023 Sales – used autos $ 251,305 $ 273,468 Wholesales – third party 9,696 11,205 Service contract sales 17,072 16,347 Accident protection plan revenue 9,175 9,317 Total $ 287,248 $ 310,337 At July 31, 2024 and 2023, finance receivables more than 90 days past due were approximately $5.6 million and $4.9 million, respectively. Late fee revenues totaled approximately $1.2 million for the three months ended July 31, 2024 and 2023. Late fees are recognized when collected and are reflected in interest and other income on the Condensed Consolidated Statements of Operations. The amount of revenue recognized for the three months ended July 31, 2024 that was included in the April 30, 2024 deferred service contract revenue was $12.6 million. Earnings (Loss) per Share Basic earnings (loss) per share are computed by dividing net income (loss) attributable to common stockholders by the average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed by dividing net income (loss) 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 issue either new shares or treasury shares upon exercise of these awards. Stock-based compensation plans, related expenses, and assumptions used in the Black-Scholes option pricing model are more fully described in Note I. If an award contains a performance condition, expense is recognized only for those shares for which it is considered reasonably probable as of the current period end that the performance condition will be met. The Company accounts for forfeitures as they occur and records any excess tax benefits or deficiencies from its equity awards in its Consolidated Statements of Operations in the reporting period in which the exercise occurs. The Company did not Treasury Stock Treasury stock may be used for issuances under the Company’s stock-based compensation plans or for other general corporate purposes. The Company has a reserve account of 10,000 shares of treasury stock to secure outstanding service contracts issued in Iowa in accordance with the regulatory requirements of that state and another reserve account of 14,000 shares of treasury stock for its subsidiary, ACM Insurance Company, in accordance with the requirements of the Arkansas Department of Insurance. Recent Accounting Pronouncements Occasionally, new accounting pronouncements are |
Note C - Finance Receivables, N
Note C - Finance Receivables, Net | 3 Months Ended |
Jul. 31, 2024 | |
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 a fixed interest rate of 18.25% for all states except Arkansas (which originate at 16.75%), Illinois (which originate at 19.5% - 21.5%) and acquired dealerships in Tennessee (which originate at up to 23.0%), are collateralized by the vehicle sold and typically provide for payments over periods ranging from 18 to 69 months. The Company’s finance receivables are defined as one segment and one one The components of finance receivables are as follows: (In thousands) July 31, 2024 April 30, 2024 Gross contract amount $ 1,883,106 $ 1,844,392 Less unearned finance charges (417,847 ) (409,004 ) Principal balance 1,465,259 1,435,388 Less: estimated insurance receivables for APP claims (2,468 ) (3,026 ) Less: allowance for APP claims (2,757 ) (3,171 ) Less allowance for credit losses (334,424 ) (331,260 ) Finance receivables, net 1,125,610 1,097,931 Loan origination costs 661 660 Finance receivables, net, including loan origination costs $ 1,126,271 $ 1,098,591 Changes in the finance receivables, net are as follows: Three Months Ended (In thousands) 2024 2023 Balance at beginning of period $ 1,097,931 $ 1,062,760 Finance receivable originations 271,756 297,732 Finance receivable collections (112,358 ) (109,291 ) Provision for credit losses (95,423 ) (96,323 ) Losses on claims for accident protection plan (9,321 ) (7,769 ) Inventory acquired in repossession and accident protection plan claims (26,975 ) (32,590 ) Balance at end of period $ 1,125,610 $ 1,114,519 Changes in the finance receivables allowance for credit losses are as follows: Three Months Ended (In thousands) 2024 2023 Balance at beginning of period $ 331,260 $ 299,608 Provision for credit losses 95,423 96,323 Charge-offs (121,605 ) (112,745 ) Recovered collateral 29,346 31,256 Balance at end of period $ 334,424 $ 314,442 Amounts recovered from previously written-off accounts were approximately $772,000 and $640,000 for the three months ended July 31, 2024 and 2023, respectively. These amounts are netted against recovered collateral in the table above. The Company reduced the allowance for credit loss in the first quarter to 25.0% from 25.32% at April 30, 2024, resulting in a benefit of $4.3 million to the provision. The decrease was primarily driven by the lower inflationary outlook and changes in the underwriting process and refinements to the underwriting guidelines due to the implementation of the Company’s new loan origination system. The following table presents the finance receivables that are current and past due as follows: (Dollars in thousands) July 31, 2024 April 30, 2024 July 31, 2023 Principal Percent of Principal Percent of Principal Percent of Balance Portfolio Balance Portfolio Balance Portfolio Current $ 1,155,006 78.82 % $ 1,125,945 78.44 % $ 1,151,275 79.91 % 3 - 29 days past due 259,145 17.69 % 264,491 18.43 % 226,600 15.73 % 30 - 60 days past due 38,035 2.60 % 34,042 2.37 % 48,650 3.38 % 61 - 90 days past due 7,463 0.51 % 6,438 0.45 % 9,294 0.64 % > 90 days past due 5,610 0.38 % 4,472 0.31 % 4,888 0.34 % Total $ 1,465,259 100.00 % $ 1,435,388 100.00 % $ 1,440,707 100.00 % Accounts one and two days past due are considered current for this analysis, due to the varying payment dates and variation in the day of the week at each period end. Delinquencies may vary from period to period based on the average age of the portfolio, seasonality within the calendar year, the day of the week and overall economic factors. The above categories are consistent with internal operational measures used by the Company to monitor credit results. Substantially all of the Company’s installment sale 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 monitors customer scores, contract term length, payment to income, down payment percentages, and collections for credit quality indicators. Three Months Ended 2024 2023 Average total collected per active customer per month $ 562 $ 535 Principal collected as a percent of average finance receivables 7.8 % 7.8 % Average down-payment percentage 5.2 % 5.0 % Average originating contract term (in months 44.3 44.7 As of July 31, 2024 July 31, 2023 Portfolio weighted average contract term, including modifications (in months 48.1 46.9 Although total dollars collected per active customer for the three months increased 5.0% year over year, principal collections as a percentage of average finance receivables were consistent in the three months ended July 31, 2024 compared to the prior year, primarily due to the average term increases. The portfolio weighted average contract term increased primarily due to the increased average selling price, up $451 or 2.4%, from the prior year period. When customers apply for financing, the Company’s proprietary scoring model relies on the customers’ credit histories and certain application information to evaluate and rank their risk. The Company obtains credit histories and other credit data that includes information such as number of different addresses, age of oldest record, high risk credit activity, job time, time at residence and other factors. The application information that is used includes income, collateral value and down payment. The scoring models yield credit grades that represent the relative likelihood of repayment. Customers with the highest probability of repayment are 6 rated customers. Customers assigned a lower grade are determined to have a lower probability of repayment. For installment sales contracts that are approved, the credit grade influences the terms of the agreement, such as the maximum amount financed, term length and minimum down payment. After origination, credit grades are generally not updated. The following table presents a summary of finance receivables by credit quality indicator, as of July 31, 2024, segregated by customer score and year of origination. As of July 31, 2024 (Dollars in thousands) Fiscal Year of Origination Prior to Customer Rating 2025 2024 2023 2022 2021 2021 Total % 1-2 $ 18,758 $ 34,722 $ 10,548 $ 2,645 $ 245 $ 90 $ 67,008 4.6 % 3-4 $ 94,738 $ 251,217 $ 94,939 $ 26,565 $ 2,899 $ 396 $ 470,754 32.1 % 5-6 $ 148,448 $ 424,197 $ 246,371 $ 93,171 $ 14,071 $ 1,239 $ 927,497 63.3 % Total $ 261,944 $ 710,136 $ 351,858 $ 122,381 $ 17,215 $ 1,725 $ 1,465,259 100.0 % Charge-offs $ 2,619 $ 70,413 $ 36,752 $ 10,578 $ 1,048 $ 195 $ 121,605 The following table presents a summary of finance receivables by credit quality indicator, as of July 31, 2023, segregated by customer score. As of July 31, 2023 (Dollars in thousands) Fiscal Year of Origination Prior to Customer Rating 2024 2023 2022 2021 2020 2020 Total % 1-2 $ 14,450 $ 30,477 $ 9,911 $ 1,821 $ 227 $ 28 $ 56,914 4.0 % 3-4 $ 105,595 $ 241,759 $ 84,065 $ 17,510 $ 1,044 $ 311 $ 450,284 31.2 % 5-6 $ 176,815 $ 486,594 $ 215,403 $ 50,180 $ 3,665 $ 852 $ 933,509 64.8 % Total $ 296,860 $ 758,830 $ 309,379 $ 69,511 $ 4,936 $ 1,191 $ 1,440,707 100.0 % Charge-offs $ 3,239 $ 75,308 $ 28,036 $ 5,577 $ 441 $ 144 $ 112,745 |
Note D - Property and Equipment
Note D - Property and Equipment, Net | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | D Property and Equipment, Net A summary of property and equipment is as follows: (In thousands) July 31, 2024 April 30, 2024 Land $ 11,998 $ 11,998 Buildings and improvements 23,436 23,435 Furniture, fixtures and equipment 22,094 21,752 Leasehold improvements 50,768 50,689 Construction in progress 3,256 2,393 Less accumulated depreciation and amortization (51,759 ) (49,906 ) Total $ 59,793 $ 60,361 |
Note E - Accrued Liabilities
Note E - Accrued Liabilities | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | E Accrued Liabilities A summary of accrued liabilities is as follows: (In thousands) July 31, 2024 April 30, 2024 Employee compensation $ 9,606 $ 10,774 Deferred sales tax (see Note B) 4,808 6,234 Fair value of contingent consideration 6,536 3,193 Accrued interest payable 3,470 2,221 Other 8,127 5,406 Total $ 32,547 $ 27,828 |
Note F - Debt Facilities
Note F - Debt Facilities | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | F – Debt Facilities A summary of debt facilities is as follows: (In thousands) July 31, 2024 April 30, 2024 Revolving line of credit $ 185,945 $ 201,743 Debt issuance costs (1,099 ) (924 ) Revolving line of credit, net $ 184,846 $ 200,819 Non-recourse notes payable - 2023-1 Issuance $ 118,623 $ 150,190 Non-recourse notes payable - 2023-2 Issuance 169,698 203,189 Non-recourse notes payable - 2024-1 Issuance 161,899 202,916 Debt issuance costs - non-recourse notes payable (1,554 ) (2,666 ) Non-recourse notes payable, net 448,666 553,629 Warehouse Facility 149,888 - Debt issuance costs - warehouse facility (1,060 ) - Warehouse facility, net 148,828 - Notes payable, net $ 597,494 $ 553,629 Total debt $ 782,340 $ 754,448 Revolving Line of Credit At July 31, 2024, the Company and its subsidiaries have $340.0 million of permitted borrowings under a revolving line of credit. The revolving credit facilities are collateralized by finance receivables and inventory, are cross collateralized and contain a guarantee by the Company. Interest is payable monthly under the revolving credit facilities with a scheduled maturity date of September 30, 2025. The current applicable interest rate under the credit facilities is SOFR plus 3.50% or for non-SOFR amounts the base rate of 8.50% plus 1% at July 31, 2024 and April 30, 2024. The credit facilities contain various reporting and performance covenants including (i) maintenance of certain financial ratios and tests, (ii) limitations on borrowings from other sources, (iii) restrictions on certain operating activities and (iv) restrictions on the payment of dividends or distributions (see Note B). The Company was in compliance with the covenants at July 31, 2024. The amount available to be drawn under the credit facilities is a function of eligible finance receivables and inventory; based upon eligible finance receivables and inventory at July 31, 2024, the Company had additional availability of approximately $33.5 million under the revolving credit facilities. On September 16, 2024, the Company entered into Amendment No. 8 to its revolving credit agreement, which, among other things, reduced the total permitted borrowings from $340 million to $320 million and requires the Company to maintain a minimum amount available to be drawn under the credit facilities of $20 million. If the outstanding principal balance under the line of credit equals or exceeds $300 million, the Company will be required to maintain a minimum availability of $50 million. The amendment also makes certain modifications to the fixed charge coverage ratio covenant and other provisions of the credit agreement. See Note M for additional information on the amendment. Non-Recourse and Recourse Notes Payable The Company has issued four separate series of asset-backed non-recourse notes (known as the “2022 Issuance”, “2023-1 Issuance”, “2023-2 Issuance” and “2024-1 Issuance”). All four issuances are collateralized by installment sale contracts directly originated by the Company. Credit enhancement for the non-recourse notes payable consists of overcollateralization, a reserve account funded with an initial amount of not less than 2.0% of the pool balance, excess interest on the auto finance receivables, and in some cases, the subordination of certain payments to noteholders of less senior classes of notes. The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto finance receivables. In December 2023, the Company fully paid off the 2022 Issuance. The debt related to the remaining term securitization transactions accrues interest at fixed rates and has scheduled maturities through January 22, 2030, June 20, 2030, and January 21, 2031, respectively, but may be repaid earlier, depending upon collections from the underlying auto finance receivables. The original principal balance and weighted average fixed coupon rate for the three securitizations are as follows: Original Principal Balance (in thousands) Weighted Average Fixed Coupon Rate 2023-1 $ 400,200 8.68 % 2023-2 360,300 8.80 % 2024-1 250,000 9.50 % On July 12, 2024, the Company’s principal operating subsidiary, America’s Car Mart, Inc., and a newly formed affiliate entered into a loan and security agreement under which the Company’s affiliate borrowed $150 million in funding through an amortizing warehouse loan facility collateralized by installment sale contracts directly originated by the Company’s operating subsidiaries. The Company used the funding from the warehouse loan facility to pay down outstanding amounts borrowed under the Company’s revolving line of credit to fund its finance receivables. The loan and security agreement provides for additional borrowing availability, subject to the terms and conditions of the agreement, and recourse against the Company with respect to up to 10% of the aggregate amount borrowed under the warehouse facility payable. Interest accrues at a rate of SOFR plus 350 basis points, with a scheduled maturity date of July 12, 2026. The interest rate at July 31, 2024 was 8.83%. |
Note G - Fair Value Measurement
Note G - Fair Value Measurements | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | G Fair Value Measurements Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Topic 820 describes three levels of inputs that may be used to measure fair value: ● Level 1 Inputs ● Level 2 Inputs ● Level 3 Inputs Because no market exists for certain of the Company’s financial instruments, fair value estimates are based on judgments and estimates regarding yield expectations of investors, credit risk and other risk characteristics, including interest rate and prepayment risk. These estimates are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The methodology and assumptions utilized to estimate the fair value of the Company’s financial instruments and other assets are as follows: Financial Instrument and Other Assets Valuation Methodology Cash, cash equivalents, and restricted cash The carrying amount is considered to be a reasonable estimate of fair value due to the short-term nature of the financial instruments (Level 1). Repossessed inventory The fair value approximates wholesale value (Level 1). Finance receivables, net The Company estimated the fair value of its receivables at what a third-party purchaser might be willing to pay. The Company has had discussions with third parties and has bought and sold portfolios and has had a third-party appraisal in October 2022 that indicates a range of 34% to 39% discount to face would be a reasonable fair value in a negotiated third-party transaction. The sale of finance receivables from Car-Mart of Arkansas to Colonial is made at a 38.5% discount. For financial reporting purposes these sale transactions are eliminated (Level 2). 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 (Level 2). Contingent consideration payable for acquisition The fair value is based upon inputs from the earn-out projection for the applicable acquisition (Level 2). Revolving line of credit The fair value approximates carrying value due to the variable interest rates charged on the borrowings, which reprice frequently (Level 2). Notes payable The fair value is based upon inputs derived from prices for similar instruments at period end (Level 2). The estimated fair values, and related carrying amounts, of the financial instruments and other assets included in the Company’s financial statements at July 31, 2024 and April 30, 2024 are as follows: July 31, 2024 April 30, 2024 (In thousands) Cash and cash equivalents $ 4,748 $ 4,748 $ 5,522 $ 5,522 Restricted cash 93,873 93,873 88,925 88,925 Inventory - Repossessions 18,102 18,102 18,182 18,182 Finance receivables, net 1,126,271 901,134 1,098,591 882,764 Accounts payable 35,582 35,582 21,379 21,379 Contingent Consideration 6,536 6,536 3,193 3,193 Revolving line of credit, net 184,846 184,846 200,819 200,819 Warehouse facility, net 148,828 148,828 - - Non-recourse notes payable, net 448,666 456,644 553,629 553,003 |
Note H - Weighted Average Share
Note H - Weighted Average Shares Outstanding | 3 Months Ended |
Jul. 31, 2024 | |
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 2024 2023 Weighted average shares outstanding-basic 6,396,757 6,381,704 Dilutive options and restricted stock - 253,298 Weighted average shares outstanding-diluted 6,396,757 6,635,002 Antidilutive securities not included: Options 534,767 240,000 Restricted stock 14,176 - |
Note I - Stock-based Compensati
Note I - Stock-based Compensation | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | I Stock-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 July 31, 2024 are the Amended and Restated Stock Option Plan and the Amended and Restated Stock Incentive Plan. The Company recorded total stock-based compensation expense for all plans of approximately $1.3 million ($1.1 million after tax effects) and $2.5 million ($1.9 million after tax effects) for the three months ended July 31, 2024 and 2023, respectively. Tax benefits were recognized for these costs at the Company’s overall effective tax rate, excluding discrete income tax benefits related to excess benefits on share-based compensation. Stock Option Plan 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, which extended the term of the Stock Option Plan to June 10, 2025 and increased the number of shares of common stock reserved for issuance under the plan by an additional 300,000 shares to 1,800,000 shares. On August 29, 2018, August 26, 2020, and August 30, 2022, the shareholders of the Company approved amendments to the Restated Option Plan increasing the number of shares of common stock reserved for issuance under the plan by an additional 200,000, 200,000, and 185,000 shares, respectively. Currently, a total of 2,385,000 shares of common stock are reserved for issuance under the plan. The Restated Option Plan provides for the grant of options to purchase shares of the Company’s common stock to employees, directors and certain advisors of the Company at a price not less than the fair market value of the stock on the date of grant and for periods not to exceed ten 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 9, 2034 Shares available for grant at July 31, 2024 90,233 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. Three Months Ended 2024 2023 Expected terms (years) 4.9 5.5 Risk-free interest rate 5.13 % 3.66 % Volatility 60 % 58 % Dividend yield - - The expected term of the options is based on evaluations of historical and expected future 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 historically issued any dividends and does not expect to do so in the foreseeable future. There were 22,281 and 35,000 options granted during the three months ended July 31, 2024 and 2023, respectively. The grant-date fair value of options granted during the three months ended July 31, 2024 and 2023 was $350,000 and $1.5 million, respectively. The options were granted at fair market value on the date of grant. Stock option compensation expense was $200,800 ($164,000 after tax effects) and $1.9 million ($1.5 million after tax effects) for the three months ended July 31, 2024 and 2023, respectively. As of July 31, 2024, the Company had approximately $1.9 million of total unrecognized compensation cost related to unvested options that are expected to vest. These unvested outstanding options have a weighted-average remaining vesting period of 1.9 years. 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. Three Months Ended (Dollars in thousands) 2024 2023 Options exercised - 30,000 Cash received from option exercises $ - $ - Intrinsic value of options exercised $ - $ 1,036 There were no options exercised through net settlements during the three months ended July 31, 2024. During the quarter ended July 31, 2023, there were 30,000 options exercised through net settlements in accordance with plan provisions, wherein the shares issued were reduced by 23,507 shares to satisfy the exercise price and applicable withholding taxes to acquire 6,493 shares. The aggregate intrinsic value of outstanding options at July 31, 2024 and 2023 was $4.8 million and $25.8 million, respectively. As of July 31, 2024, there were 446,234 vested and exercisable stock options outstanding with an aggregate intrinsic value of $4.1 million, a weighted average remaining contractual life of 4.7 years, and a weighted average exercise price of $76.89. Stock Incentive Plan On August 5, 2015, the shareholders of the Company approved the Amended and Restated Stock Incentive Plan (the “Restated Incentive Plan”), which extended the term of the Company’s Stock Incentive Plan to June 10, 2025. On August 29, 2018, the shareholders of the Company approved an amendment to the Restated Stock Incentive Plan that increased the number of shares of common stock that may be issued under the Restated Incentive Plan by 100,000 shares to 450,000 shares. For shares issued under the Stock Incentive Plan, the associated compensation expense is generally recognized equally over the vesting periods established at the award date and is subject to the employee’s continued employment by the Company. There were 16,364 restricted shares granted during the three months ended July 31, 2024 and no As of July 31, 2024, the Company had approximately $6.3 million of total unrecognized compensation cost related to unvested awards granted under the Restated Incentive Plan, which the Company expects to recognize over a weighted-average remaining period of 2.4 years. The Company recorded compensation cost of approximately $1.1 million ($839,000 after tax effects) and $509,000 ($396,000 after tax effects) related to the Restated Incentive Plan during the three months ended July 31, 2024 and 2023, respectively. There were no modifications to any of the Company’s outstanding share-based payment awards during fiscal 2024 or during the first three months of fiscal 2025. |
Note J - Commitments and Contin
Note J - Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | J Commitments and Contingencies The Company has entered into operating leases for approximately 86% of its dealership and office facilities. Generally, these leases are for periods of three five Scheduled amounts and timing of cash flows arising from operating lease payments as of July 31, 2024, discounted at the weighted average interest rate in effect as of July 31, 2024 of approximately 4.9%, are as follows: Maturity of lease liabilities 2025 (remaining) $ 7,710 2026 9,876 2027 9,277 2028 8,608 2029 7,713 Thereafter $ 48,636 Total undiscounted operating lease payments 91,820 Less: imputed interest (21,130 ) Present value of operating lease liabilities $ 70,690 The Company has two standby letters of credit relating to insurance policies totaling $3.9 million and $2.9 million at July 31, 2024 and 2023, respectively. Car-Mart of Arkansas and Colonial do not meet the affiliation standard for filing consolidated income tax returns, and as such they file separate federal and state income tax returns. Car-Mart of Arkansas routinely sells its finance receivables to Colonial at what the Company believes to be fair market value and is able to take a tax deduction at the time of sale for the difference between the tax basis of the receivables sold and the sales price. These types of transactions, based upon facts and circumstances, have been permissible under the provisions of the Internal Revenue Code as described in the Treasury Regulations. For financial accounting purposes, these transactions are eliminated in consolidation, and a deferred income tax liability has been recorded for this timing difference. The sale of finance receivables from Car-Mart of Arkansas to Colonial provides certain legal protection for the Company’s finance receivables and, principally because of certain state apportionment characteristics of Colonial, also has the effect of reducing the Company’s overall effective state income tax rate. The actual interpretation of the regulations is in part a facts and circumstances matter. The Company believes it satisfies the material provisions of the regulations. Failure to satisfy those provisions could result in the loss of a tax deduction at the time the receivables are sold and have the effect of increasing the Company’s overall effective income tax rate as well as the timing of required tax payments. |
Note K - Supplemental Cash Flow
Note K - Supplemental Cash Flow Information | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | K - Supplemental Cash Flow Information Supplemental cash flow disclosures are as follows: Three Months Ended (In thousands) 2024 2023 Supplemental disclosures: Interest paid $ 17,062 $ 15,306 Income taxes paid, net 1,297 135 Non-cash transactions: Inventory acquired in repossession and accident protection plan claims 26,975 32,590 Net settlement option exercises - 1,646 Right-of-use assets obtained in exchange for operating lease liabilities 384 - Right-of-use assets obtained in exchange for operating lease liabilities through acquisitions 7,433 - |
Note L - Acquisitions
Note L - Acquisitions | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | L Acquisitions On June 3, 2024, the Company completed its business combination of Texas Auto Center (“TAC”), which includes two dealership locations in Austin and San Marcos, Texas. The total purchase price of the TAC acquisition was $13.5 million, which included $3.5 million of contingent consideration. The structure of the transaction is consistent with prior transactions whereby the Company did not acquire existing finance receivables and the seller may receive a performance-based earn-out in the future ranging from zero The excess of the purchase price over the preliminary fair values of the net assets acquired was allocated to goodwill, all of which is deductible for tax purposes and represents the future economic benefits expected to arise from anticipated synergies and intangible assets that do not qualify for separate recognition. The Company recorded the preliminary fair values of the assets acquired and liabilities assumed in the TAC acquisition, which resulted in the recognition of: (1) net working capital assumed of $100,000, (2) inventory of $5 million, (3) gross right use of asset and lease liability of $7.4 million and (4) goodwill of $8.5 million. |
Note M - Subsequent Events
Note M - Subsequent Events | 3 Months Ended |
Jul. 31, 2024 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | M Subsequent Events On September 16, 2024, the Company entered into Amendment No. 8 to its revolving credit agreement that, among other things, reduces the total permitted borrowings under the revolving line of credit by $20 million to $320 million. Under the amendment, the Company will be required, after October 15, 2024 to maintain a minimum amount available to be drawn under the credit facilities, based on eligible finance receivables and inventory, of $20 million. If the outstanding principal balance under the line of credit equals or exceeds $300 million, the Company will be required tomaintain a minimum availability of $50 million. The amendment provides that the Company will use the net proceeds of any junior capital raise of $50 million or more to pay down the then outstanding principal balance of the line of credit and will pay a fee to the lenders of 0.10% of the total permitted borrowings under the line of credit if the Company has not completed such a capital raise by October 31, 2024. The amendment also makes certain modifications to the fixed charge coverage ratio covenant under the credit agreement and restricts the Company from making future repurchases of its common stock, along with the agreement’s existing restrictions on other distributions to the Company’s shareholders. On September 16, 2024, the Company also entered into an amendment to the loan and security agreement for its amortizing warehouse loan facility that amends the fixed charge coverage ratio covenant under that agreement consistent with Amendment No. 8 to the Company’s revolving credit agreement and modifies certain other financial covenants under the warehouse agreement. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 31, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | Item 5. Other Information During the three months ended July 31, 2024, none |
Issuer Rule 10b5-1, Adopted or Terminated | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 31, 2024 | |
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 individual dealership is 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 |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications Accident protection plan (“APP”) reserves in the amount of approximately $11.7 million and Wholesales Sales of $1.2 million in the prior year financial statements were reclassified to conform with the current year presentation. As of July 31, 2023, APP reserves of $5.8 million were reclassed out of accrued liabilities to reserve against finance receivables and $5.9 million of estimated APP insurance receivables were reclassed out of finance receivables to prepaid expenses and other assets. For the three months ended July 31, 2023, $1.2 million of Wholesales sales were reclassed out of Wholesales – third party sales to Cost of Goods Sold. The reclassification had no effect on the prior year net income or shareholder’s equity. |
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 (GAAP) 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 the Company’s allowance for credit losses. |
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 29% of current period revenues resulting from sales to Arkansas customers. As of July 31, 2024, and periodically throughout the period, the Company maintained cash in financial institutions in excess of the amounts insured by the federal government. The cash is held in several highly rated banking institutions. The Company regularly monitors its counterparty credit risk and mitigates exposure by limiting the amount it invests in one institution. |
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. As of July 31, 2024, the distribution limitations under the credit facilities allowed the Company to repurchase the Company’s stock so long as either: (a) the aggregate amount of such repurchases after September 30, 2021 did not exceed $50 million, net of proceeds received from the exercise of stock options, and the total availability under the credit facilities was equal to or greater than 20% of the sum of the borrowing bases, in each case after giving effect to such repurchases (repurchases under this item were excluded from fixed charges for covenant calculations), or (b) the aggregate amount of such repurchases did not exceed 75% of the consolidated net income of the Company measured on a trailing twelve month basis; provided that immediately before and after giving effect to the Company’s stock repurchases, at least 12.5% of the aggregate funds committed under the credit facilities remained available. On September 16, 2024, the Company entered into an amendment to its revolving credit facilities that, among other things, restricts the Company from future repurchases of the Company’s stock. See Note M for additional information on this amendment to the revolving credit facilities. Thus, the Company is limited in its ability to pay dividends or make other distributions to its shareholders without the consent of the Company’s lenders. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash is related to the financing and securitization transaction and the warehouse facility discussed below and is held by the securitization trust and the paying agent, respectively. Restricted cash from collections on auto finance receivables for non-recourse notes includes collections of principal, interest, and late fee payments on auto finance receivables that are restricted for payment to holders of non-recourse notes payable pursuant to the applicable agreements. Restricted cash from collections on auto finance receivables for the warehouse facility includes collections of principal, interest, and late fee payments on auto finance receivables that are restricted for payment to the warehouse facility lender (see Note F) pursuant to the Company's warehouse agreement. The restricted cash on deposit in reserve accounts is for the benefit of holders of non-recourse notes payable and the warehouse facility lender, and these funds are not expected to be available to the Company or its creditors. If the cash generated by the related receivables in a given period was insufficient to pay the interest, principal, and other required payments, the balances on deposit in the reserve accounts would be used to pay those amounts. Restricted cash consisted of the following at July 31, 2024 and April 30, 2024: (In thousands) July 31, 2024 April 30, 2024 Restricted cash from collections on auto finance receivables for non-recourse notes payable $ 35,134 $ 43,956 Restricted cash on deposit in reserve accounts for non-recourse notes payable 44,969 44,969 Restricted cash from collections for warehouse facility 8,304 - Restricted cash on deposit in reserve accounts for warehouse facility 5,466 - Restricted Cash $ 93,873 $ 88,925 |
Financing and Securitization Transactions Policy [Policy Text Block] | Financing, Securitization, and Warehouse Transactions The Company utilizes term securitizations to provide long-term funding for a portion of the auto finance receivables initially funded through the debt facilities. In these transactions, a pool of auto finance receivables is sold to a special purpose entity that, in turn, transfers the receivables to a special purpose trust. The trust issues asset-backed securities, secured by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to purchase the receivables. The Company recognizes transfers of auto finance receivables into the term securitization as secured borrowings, recording the auto finance receivables and the related non-recourse notes payable on our consolidated balance sheet. These auto finance receivables can only be used as collateral to settle obligations of the related non-recourse notes payable until the issued notes are repaid in full. The term securitization investors have no recourse to the Company’s assets beyond the related auto finance receivables, the amounts on deposit in the reserve account, and the cash from collections on auto finance receivables. The Company’s principal operating subsidiary and a newly formed affiliate also entered into a loan and security agreement in the current quarter, under which the Company's affiliate borrowed $150 million through an amortizing warehouse loan facility collateralized by certain additional auto finance receivables originated by the Company’s operating subsidiaries. Under the loan and security agreement, the warehouse lender has recourse against the Company for up to 10% of the aggregate amount borrowed under the facility. See Notes C and F for additional information on auto finance receivables, non-recourse notes payable and warehouse loan facility. The Company carries the debt from the term securitization trusts and the warehouse facility on its balance sheet in recognition of the Company’s residual economic interest in the receivable pools for each transaction. The Company or one of its subsidiaries serves as the servicer for each securitization and for the warehouse facility, managing collection activities in the same manner as it does with its overall portfolio of receivables. The overcollateralization in each financing serves to absorb credit losses (subject to limitations) and the Company receives remaining assets of the trust or the facility upon repayment in full of the related indebtedness. |
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 a weighted average interest rate of approximately 17.4% using the simple effective interest method including any deferred fees. During the third quarter of the 2024 fiscal year, the Company increased the interest rate on new originations of installment sale contracts to 18.25% (from 18.0%) in all states except Arkansas (which originate at 16.75%), Illinois (which originate at 19.5% - 21.5%) and acquired dealerships in Tennessee (which originate at up to 23.0%). Contract origination costs are not significant. The installment sale contracts are structured to have variable payments whereby borrowers are obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the contract. Finance receivables are collateralized by vehicles sold and consist of contractually scheduled payments from installment contracts net of unearned finance charges and an allowance for credit losses. Unearned finance charges to be collected represent the balance of interest receivable to be earned over the remaining term of the related installment contract, and as such, have been reflected as a reduction to the gross contract amount in arriving at the principal balance in finance receivables . An account is considered delinquent when the customer is one day or more behind on their contractual payments. While the Company does not formally place contracts on nonaccrual status, the immaterial amount of interest that may accrue after an account becomes delinquent up until the point of resolution via repossession or write-off is reserved for against the accrued interest on the Condensed Consolidated Balance Sheets. Delinquent contracts are addressed and either made current by the customer, which is the case in most situations, or the vehicle is repossessed or written off if the collateral cannot be recovered quickly. Customer payments are set to match their payday, with approximately 78% of payments due on either a weekly or bi-weekly basis. The frequency of the payment due dates combined with the declining value of collateral lead to prompt resolutions on problem accounts. On July 31, 2024, 3.5% of the Company’s finance receivable balances were 30 days or more past due, compared to 3.1% at April 30, 2024. Substantially all of the Company’s installment sale 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. At the time of originating an installment sale contract, the Company requires customers to meet certain criteria that demonstrate their intent and ability to pay for the financed principal and interest on the vehicle they are purchasing. However, the Company recognizes that their customer base is at a higher risk of default given their impaired or limited credit histories. The Company strives to keep its delinquency percentages low, and not to repossess vehicles. Accounts one to three days late are contacted by telephone or text messaging notifications. Notes from each contact are electronically maintained in the Company’s computer system. The Company also utilizes text messaging notifications that allow customers the option to receive due date reminders and late notifications, if applicable. The Company attempts to resolve payment delinquencies amicably prior to repossessing a vehicle. If a customer becomes severely delinquent in his or her payments, and management determines that timely collection of future payments is not probable, the Company will take steps to repossess the vehicle. 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 money the Company will ultimately realize on the customer’s account and will increase the likelihood of the customer being able to pay off the installment sale 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 other concessions are granted to customers, beyond the extension of additional time, at the time of modifications. Modifications are minor and are made for payday changes, minor vehicle repairs and other reasons. For those vehicles that are repossessed, the majority are returned or surrendered by the customer on a voluntary basis. Other repossessions are performed by Company personnel or third-party repossession agents. Depending on the condition of a repossessed vehicle, it is either resold on a retail basis through a Company dealership or sold for cash on a wholesale basis, primarily through physical or online auctions. The Company takes steps to repossess a vehicle when the customer becomes delinquent in his or her payments and management determines that timely collection of future payments is not probable. 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 probable for accounts where the Company has been unable to repossess the vehicle. For accounts with respect to which the vehicle was repossessed, the fair value of the repossessed vehicle is charged as a reduction of the gross finance receivables balance charged-off. On average, accounts are approximately 70 days past due at the time of charge-off. For previously charged-off accounts that are subsequently recovered, the amount of such recovery is credited to the allowance for credit losses. The amount of the net repossession and charge-off loss is also reduced by any deferred service contract and accident protection plan revenue at the time of charge-off. The quantitative portion of the Company's allowance for credit losses is measured using an undiscounted cash flow (“CF”) model whereby the undiscounted cash flows are adjusted by a prepayment rate and then the loss rate is applied and compared to the amortized cost basis of finance receivables to reflect management’s estimate of expected credit losses. The CF model is based on installment sale contract level characteristics of the Company’s finance receivables, such as the contractual payment structure, maturity date, payment frequency for recurring payments, and interest rates, as well as the following assumptions: ● a historical loss period, which represents a full economic credit cycle utilizing loss experience, to calculate the historical loss rate; and ● static annualized historical rate based on average time of charge-off; and ● expected prepayment rates based on our historical experience, which also incorporates non-standard contractual payments such as down payments made during the first ninety-days or annual seasonal payments. The Company’s allowance for credit losses also considers qualitative factors not captured within the CF modeled results such as changes in underwriting and collection practices, economic trends, changes in volume and terms of installment sales contracts, credit quality trends, installment sale contract review results, collateral trends, and concentrations of credit. The Company’s qualitative factors incorporate a macroeconomic variable forecast of inflation over a reasonable and supportable forecast period of one year that affects its customers’ non-discretionary income and ability to repay. The reasonable and supportable forecast period of one year is based on management’s current review of the reliability of extended forecasts and is applied as an adjustment to the historical loss rate. The Company maintains an allowance for credit losses on an aggregate basis at an amount it considers sufficient to cover net credit losses expected over the remaining life of the installment sales contracts in the portfolio at the measurement date. At July 31, 2024, the weighted average total contract term was 48.1 months, with 36.1 months remaining. The allowance for credit losses at July 31, 2024, $334.4 million, was 25.0% of the principal balance in finance receivables of $1.5 billion, less deferred APP revenue of $52.0 million and deferred service contract revenue of $69.7 million, less pending APP claims of $5.2 million. The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations. In most states, the Company offers retail customers who finance their vehicle the option of purchasing an accident protection plan product 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’s vehicle is totaled, as defined by the product, or the vehicle has been stolen. The Company periodically evaluates anticipated losses to ensure that if anticipated losses exceed deferred accident protection plan revenues, an additional liability is recorded for such difference. At July 31, 2024, anticipated losses did not exceed deferred accident protection plan revenues. |
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 amortized but are subject to qualitative annual impairment tests at the Company’s year-end. The impairment tests are based on the comparison of the fair value of the reporting unit to the carrying value of such unit. The implied goodwill is compared to the carrying value of the goodwill to determine the impairment, if any. During the three months ended July 31, 2024, the Company evaluated goodwill and recorded an immaterial impairment of $46,000 due to the closure of an acquired dealership location in the first quarter of fiscal year 2024. The Company also recorded an $8.5 million increase to goodwill due to the acquisition of Texas Auto Center. Goodwill totaled $22.9 million at July 31, 2024 and $14.4 million at April 30, 2024. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. 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 principally 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 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets Long-lived assets, such as property and equipment, capitalized internal-use software and operating lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, such assets are considered to be impaired, and the impairment is recognized to the extent that the carrying value exceeds its fair value. There were no impairment charges recognized during any of the periods presented. |
Cloud Computing Implementation Costs [Policy Text Block] | Cloud Computing Implementation Costs The Company enters into cloud computing service contracts to support its sales, inventory management, and administrative activities. The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other assets on the Condensed Consolidated Balance Sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption on the Condensed Consolidated Statement of Operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $18.1 million and $16.7 million as of July 31, 2024 and April 30, 2024, respectively. Accumulated amortization of capitalized implementation costs for these arrangements was $958,000 for the three months ended July 31, 2024 and $48,000 for the same period in the prior year. |
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 of the revolving credit facilities. Any cash overdraft balance principally represents outstanding checks, net of any deposits in transit that as of the balance sheet date had not yet been presented for payment, net of any deposits in transit. Any cash overdraft balance is reflected in accrued liabilities on the Company’s Condensed Consolidated Balance Sheets. |
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 18.5% and 19.8% for the three months ended July 31, 2024 and July 31, 2023, respectively. Total income tax expense for the three months ended July 31, 2024 differed from amounts computed by applying the United States federal statutory tax rates to pre-tax income primarily due to state income taxes and the impact of permanent differences between book and taxable income. The Company did not 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 sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company applies this methodology to all tax positions for which the statute of limitations remains open. 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 longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before fiscal 2021. 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 |
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 an accident protection plan product, as well as 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. Accident protection plan revenues are initially deferred and then recognized to income using the “Rule of 78’s” interest method over the life of the contract so that revenues are recognized in proportion to the amount of cancellation protection provided. Accident protection plan revenues are included in sales and related losses are included in cost of sales as incurred. Any unearned revenue from ancillary products is charged-off at the time of repossession. Interest income is recognized on all active finance receivables accounts using the simple effective interest method. Active accounts include all accounts except those that have been paid-off or charged-off. Sales for the three months ended July 31, 2024 and 2023 consisted of the following: Three Months Ended (In thousands) 2024 2023 Sales – used autos $ 251,305 $ 273,468 Wholesales – third party 9,696 11,205 Service contract sales 17,072 16,347 Accident protection plan revenue 9,175 9,317 Total $ 287,248 $ 310,337 At July 31, 2024 and 2023, finance receivables more than 90 days past due were approximately $5.6 million and $4.9 million, respectively. Late fee revenues totaled approximately $1.2 million for the three months ended July 31, 2024 and 2023. Late fees are recognized when collected and are reflected in interest and other income on the Condensed Consolidated Statements of Operations. The amount of revenue recognized for the three months ended July 31, 2024 that was included in the April 30, 2024 deferred service contract revenue was $12.6 million. |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) per Share Basic earnings (loss) per share are computed by dividing net income (loss) attributable to common stockholders by the average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed by dividing net income (loss) 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 issue either new shares or treasury shares upon exercise of these awards. Stock-based compensation plans, related expenses, and assumptions used in the Black-Scholes option pricing model are more fully described in Note I. If an award contains a performance condition, expense is recognized only for those shares for which it is considered reasonably probable as of the current period end that the performance condition will be met. The Company accounts for forfeitures as they occur and records any excess tax benefits or deficiencies from its equity awards in its Consolidated Statements of Operations in the reporting period in which the exercise occurs. The Company did not |
Treasury Stock [Policy Text Block] | Treasury Stock Treasury stock may be used for issuances under the Company’s stock-based compensation plans or for other general corporate purposes. The Company has a reserve account of 10,000 shares of treasury stock to secure outstanding service contracts issued in Iowa in accordance with the regulatory requirements of that state and another reserve account of 14,000 shares of treasury stock for its subsidiary, ACM Insurance Company, in accordance with the requirements of the Arkansas Department of Insurance. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Occasionally, new accounting pronouncements are issued by the Financial Accounting Standards Board (“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 yet effective will not have a material impact on its consolidated financial statements upon adoption. In March 2022, the FASB issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses. This guidance changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This guidance will affect the Company’s vintage disclosures related to current-period gross write-offs by year of origination for financing receivables. The amendments in this update are effective for fiscal years beginning after December 15, 2022. The Company adopted this standard on May 1, 2023 under a prospective basis. In regard to installment sale contract modifications, management notes that the Company primarily modifies a customer’s installment sale contract to allow for insignificant payment delays. This type of modification is generally done to account for payday changes for the customer and minor vehicle repairs. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which sets forth improvements to the current segment disclosure requirements in accordance with Topic 280 “Segment Reporting,” including clarifying that entities with a single reportable segment are subject to both new and existing segment reporting requirements. ASU 2023-07 will be effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Early adoption is permitted. Adoption of this ASU will result in additional disclosure, but will not impact the Company’s consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued an accounting pronouncement (ASU 2023-09) related to income tax disclosures. The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. We plan to adopt this pronouncement for our fiscal year beginning May 1, 2025, and we do not expect it to have a material effect on our consolidated financial statements. |
Note B - Summary of Significa_2
Note B - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | (In thousands) July 31, 2024 April 30, 2024 Restricted cash from collections on auto finance receivables for non-recourse notes payable $ 35,134 $ 43,956 Restricted cash on deposit in reserve accounts for non-recourse notes payable 44,969 44,969 Restricted cash from collections for warehouse facility 8,304 - Restricted cash on deposit in reserve accounts for warehouse facility 5,466 - Restricted Cash $ 93,873 $ 88,925 |
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 (In thousands) 2024 2023 Sales – used autos $ 251,305 $ 273,468 Wholesales – third party 9,696 11,205 Service contract sales 17,072 16,347 Accident protection plan revenue 9,175 9,317 Total $ 287,248 $ 310,337 |
Note C - Finance Receivables,_2
Note C - Finance Receivables, Net (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) July 31, 2024 April 30, 2024 Gross contract amount $ 1,883,106 $ 1,844,392 Less unearned finance charges (417,847 ) (409,004 ) Principal balance 1,465,259 1,435,388 Less: estimated insurance receivables for APP claims (2,468 ) (3,026 ) Less: allowance for APP claims (2,757 ) (3,171 ) Less allowance for credit losses (334,424 ) (331,260 ) Finance receivables, net 1,125,610 1,097,931 Loan origination costs 661 660 Finance receivables, net, including loan origination costs $ 1,126,271 $ 1,098,591 |
Change In Finance Receivables Net [Table Text Block] | Three Months Ended (In thousands) 2024 2023 Balance at beginning of period $ 1,097,931 $ 1,062,760 Finance receivable originations 271,756 297,732 Finance receivable collections (112,358 ) (109,291 ) Provision for credit losses (95,423 ) (96,323 ) Losses on claims for accident protection plan (9,321 ) (7,769 ) Inventory acquired in repossession and accident protection plan claims (26,975 ) (32,590 ) Balance at end of period $ 1,125,610 $ 1,114,519 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Three Months Ended (In thousands) 2024 2023 Balance at beginning of period $ 331,260 $ 299,608 Provision for credit losses 95,423 96,323 Charge-offs (121,605 ) (112,745 ) Recovered collateral 29,346 31,256 Balance at end of period $ 334,424 $ 314,442 |
Financing Receivable, Past Due [Table Text Block] | (Dollars in thousands) July 31, 2024 April 30, 2024 July 31, 2023 Principal Percent of Principal Percent of Principal Percent of Balance Portfolio Balance Portfolio Balance Portfolio Current $ 1,155,006 78.82 % $ 1,125,945 78.44 % $ 1,151,275 79.91 % 3 - 29 days past due 259,145 17.69 % 264,491 18.43 % 226,600 15.73 % 30 - 60 days past due 38,035 2.60 % 34,042 2.37 % 48,650 3.38 % 61 - 90 days past due 7,463 0.51 % 6,438 0.45 % 9,294 0.64 % > 90 days past due 5,610 0.38 % 4,472 0.31 % 4,888 0.34 % Total $ 1,465,259 100.00 % $ 1,435,388 100.00 % $ 1,440,707 100.00 % |
Financing Receivable Credit Quality Indicators [Table Text Block] | Three Months Ended 2024 2023 Average total collected per active customer per month $ 562 $ 535 Principal collected as a percent of average finance receivables 7.8 % 7.8 % Average down-payment percentage 5.2 % 5.0 % Average originating contract term (in months 44.3 44.7 As of July 31, 2024 July 31, 2023 Portfolio weighted average contract term, including modifications (in months 48.1 46.9 |
Schedule of Financing Receivable by Fiscal Year of Origination [Table Text Block] | As of July 31, 2024 (Dollars in thousands) Fiscal Year of Origination Prior to Customer Rating 2025 2024 2023 2022 2021 2021 Total % 1-2 $ 18,758 $ 34,722 $ 10,548 $ 2,645 $ 245 $ 90 $ 67,008 4.6 % 3-4 $ 94,738 $ 251,217 $ 94,939 $ 26,565 $ 2,899 $ 396 $ 470,754 32.1 % 5-6 $ 148,448 $ 424,197 $ 246,371 $ 93,171 $ 14,071 $ 1,239 $ 927,497 63.3 % Total $ 261,944 $ 710,136 $ 351,858 $ 122,381 $ 17,215 $ 1,725 $ 1,465,259 100.0 % Charge-offs $ 2,619 $ 70,413 $ 36,752 $ 10,578 $ 1,048 $ 195 $ 121,605 As of July 31, 2023 (Dollars in thousands) Fiscal Year of Origination Prior to Customer Rating 2024 2023 2022 2021 2020 2020 Total % 1-2 $ 14,450 $ 30,477 $ 9,911 $ 1,821 $ 227 $ 28 $ 56,914 4.0 % 3-4 $ 105,595 $ 241,759 $ 84,065 $ 17,510 $ 1,044 $ 311 $ 450,284 31.2 % 5-6 $ 176,815 $ 486,594 $ 215,403 $ 50,180 $ 3,665 $ 852 $ 933,509 64.8 % Total $ 296,860 $ 758,830 $ 309,379 $ 69,511 $ 4,936 $ 1,191 $ 1,440,707 100.0 % Charge-offs $ 3,239 $ 75,308 $ 28,036 $ 5,577 $ 441 $ 144 $ 112,745 |
Note D - Property and Equipme_2
Note D - Property and Equipment, Net (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (In thousands) July 31, 2024 April 30, 2024 Land $ 11,998 $ 11,998 Buildings and improvements 23,436 23,435 Furniture, fixtures and equipment 22,094 21,752 Leasehold improvements 50,768 50,689 Construction in progress 3,256 2,393 Less accumulated depreciation and amortization (51,759 ) (49,906 ) Total $ 59,793 $ 60,361 |
Note E - Accrued Liabilities (T
Note E - Accrued Liabilities (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | (In thousands) July 31, 2024 April 30, 2024 Employee compensation $ 9,606 $ 10,774 Deferred sales tax (see Note B) 4,808 6,234 Fair value of contingent consideration 6,536 3,193 Accrued interest payable 3,470 2,221 Other 8,127 5,406 Total $ 32,547 $ 27,828 |
Note F - Debt Facilities (Table
Note F - Debt Facilities (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | (In thousands) July 31, 2024 April 30, 2024 Revolving line of credit $ 185,945 $ 201,743 Debt issuance costs (1,099 ) (924 ) Revolving line of credit, net $ 184,846 $ 200,819 Non-recourse notes payable - 2023-1 Issuance $ 118,623 $ 150,190 Non-recourse notes payable - 2023-2 Issuance 169,698 203,189 Non-recourse notes payable - 2024-1 Issuance 161,899 202,916 Debt issuance costs - non-recourse notes payable (1,554 ) (2,666 ) Non-recourse notes payable, net 448,666 553,629 Warehouse Facility 149,888 - Debt issuance costs - warehouse facility (1,060 ) - Warehouse facility, net 148,828 - Notes payable, net $ 597,494 $ 553,629 Total debt $ 782,340 $ 754,448 |
Debt Instrument, Debt and Interest Rates [Table Text Block] | Original Principal Balance (in thousands) Weighted Average Fixed Coupon Rate 2023-1 $ 400,200 8.68 % 2023-2 360,300 8.80 % 2024-1 250,000 9.50 % |
Note G - Fair Value Measureme_2
Note G - Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | July 31, 2024 April 30, 2024 (In thousands) Cash and cash equivalents $ 4,748 $ 4,748 $ 5,522 $ 5,522 Restricted cash 93,873 93,873 88,925 88,925 Inventory - Repossessions 18,102 18,102 18,182 18,182 Finance receivables, net 1,126,271 901,134 1,098,591 882,764 Accounts payable 35,582 35,582 21,379 21,379 Contingent Consideration 6,536 6,536 3,193 3,193 Revolving line of credit, net 184,846 184,846 200,819 200,819 Warehouse facility, net 148,828 148,828 - - Non-recourse notes payable, net 448,666 456,644 553,629 553,003 |
Note H - Weighted Average Sha_2
Note H - Weighted Average Shares Outstanding (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended 2024 2023 Weighted average shares outstanding-basic 6,396,757 6,381,704 Dilutive options and restricted stock - 253,298 Weighted average shares outstanding-diluted 6,396,757 6,635,002 Antidilutive securities not included: Options 534,767 240,000 Restricted stock 14,176 - |
Note I - Stock-based Compensa_2
Note I - Stock-based Compensation (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
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 9, 2034 Shares available for grant at July 31, 2024 90,233 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended 2024 2023 Expected terms (years) 4.9 5.5 Risk-free interest rate 5.13 % 3.66 % Volatility 60 % 58 % Dividend yield - - |
Schedule of Share-based Compensation, Stock Options, Exercises [Table Text Block] | Three Months Ended (Dollars in thousands) 2024 2023 Options exercised - 30,000 Cash received from option exercises $ - $ - Intrinsic value of options exercised $ - $ 1,036 |
Note J - Commitments and Cont_2
Note J - Commitments and Contingencies (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Maturity of lease liabilities 2025 (remaining) $ 7,710 2026 9,876 2027 9,277 2028 8,608 2029 7,713 Thereafter $ 48,636 Total undiscounted operating lease payments 91,820 Less: imputed interest (21,130 ) Present value of operating lease liabilities $ 70,690 |
Note K - Supplemental Cash Fl_2
Note K - Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended (In thousands) 2024 2023 Supplemental disclosures: Interest paid $ 17,062 $ 15,306 Income taxes paid, net 1,297 135 Non-cash transactions: Inventory acquired in repossession and accident protection plan claims 26,975 32,590 Net settlement option exercises - 1,646 Right-of-use assets obtained in exchange for operating lease liabilities 384 - Right-of-use assets obtained in exchange for operating lease liabilities through acquisitions 7,433 - |
Note A - Organization and Bus_2
Note A - Organization and Business (Details Textual) | 3 Months Ended |
Jul. 31, 2024 | |
Number of Operating Subsidiaries | 2 |
Number of Dealerships Operated | 156 |
Note B - Summary of Significa_3
Note B - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | ||||
Jul. 12, 2024 USD ($) | Jul. 31, 2024 USD ($) shares | Jul. 31, 2023 USD ($) | Jun. 03, 2024 USD ($) | Apr. 30, 2024 USD ($) | |
Number of Reportable Segments | 1 | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 287,248,000 | $ 310,337,000 | |||
Financing Receivables, Allowance for APP Claims | 2,757,000 | $ 3,171,000 | |||
Financing Receivable, Insurance Receivables for APP Claims | 2,468,000 | 3,026,000 | |||
Proceeds from Notes Payable | $ 149,889,000 | 360,340,000 | |||
Average Finance Receivable Interest Rate | 17.40% | ||||
Financing Receivable Interest Rate | 18.25% | ||||
Interest Receivable | $ 7,507,000 | $ 6,907,000 | |||
Finance Receivables, Customer Payments Due Either Weekly or Bi-Weekly, Percentage | 78% | ||||
Financing Receivable, Greater Than or Equal to 30 Days Past Due, Percent of Portfolio | 3.50% | 3.10% | |||
Allowance for Credit Losses, Primary Factor Units Repossessed or Charged Off Evaluation Period | 70 years | ||||
Financing Receivable, Weighted Average Total Contract Term | 48 months 3 days | ||||
Financing Receivable, Remaining Contract Term | 36 months 3 days | ||||
Financing Receivables, Allowance for Credit Losses and Other Losses | $ 334,400,000 | ||||
Financing Receivable, Allowance for Credit Loss to Outstanding, Percent | 25% | 25.32% | |||
Finance Receivable, Principal Balance | $ 1,465,259,000 | 1,440,707,000 | $ 1,435,388,000 | ||
Goodwill, Impairment Loss | 46,000 | $ 0 | |||
Goodwill | $ 22,900,000 | 14,400,000 | |||
Effective Income Tax Rate Reconciliation, Percent | 18.50% | 19.80% | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 0 | $ 130,000 | |||
Open Tax Year | 2021 | ||||
Income Tax Examination, Penalties and Interest Accrued | $ 0 | 0 | |||
Financing Receivable, Recorded Investment Greater Than 90 Days Past Due | 5,600,000 | 4,900,000 | |||
Late Fee Income Generated by Servicing Financial Assets, Amount | 1,200,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 12,600,000 | ||||
Treasury Stock Shares to Establish Reserve Account to Secure Service Contracts | shares | 10,000 | ||||
ACM Insurance Company [Member] | |||||
Treasury Stock, Shares to Establish Reserve Account to Meet Regulatory Requirements for Insurance Company | shares | 14,000 | ||||
Capitalized Computing Implementation Service Contract [Member] | |||||
Capitalized Contract Cost, Net | $ 18,100,000 | 16,700,000 | |||
Capitalized Contract Cost, Amortization | 958,000 | 48,000 | |||
Texas Auto Center [Member] | |||||
Goodwill, Acquired During Period | 8,500,000 | ||||
Goodwill | $ 8,500,000 | ||||
Accident Protection Plan [Member] | |||||
Contract with Customer, Liability | 52,000,000 | ||||
Service Contract [Member] | |||||
Contract with Customer, Liability | 69,651,000 | $ 68,945,000 | |||
Accident Protection Plan Claims [Member] | |||||
Contract with Customer, Refund Liability | $ 5,200,000 | ||||
Maximum [Member] | |||||
Financing Receivable Interest Rate | 18.25% | ||||
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% | ||||
Line of Credit Facility, Distribution Limitations Percentage of Consolidated Net Income | 75% | ||||
Line of Credit Facility Distribution Limitations Minimum Percentage of Aggregate Funds Available | 12.50% | ||||
Warehouse Facility [Member] | |||||
Proceeds from Notes Payable | $ 150,000,000 | $ 150,000,000 | |||
Notes Payable, Percentage of Note Classified as Non-Recourse | 10% | ||||
ARKANSAS | |||||
Financing Receivable Interest Rate | 16.75% | ||||
ARKANSAS | Maximum [Member] | |||||
Financing Receivable Interest Rate | 16.75% | ||||
ILLINOIS | Minimum [Member] | |||||
Financing Receivable Interest Rate | 19.50% | ||||
ILLINOIS | Maximum [Member] | |||||
Financing Receivable Interest Rate | 21.50% | ||||
TENNESSEE | |||||
Financing Receivable Interest Rate | 23% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Arkansas, USA [Member] | |||||
Concentration Risk, Percentage | 29% | ||||
Revision of Prior Period, Adjustment [Member] | |||||
Accident Protection Plan Claims | $ 11,700,000 | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,200,000 | ||||
Financing Receivables, Allowance for APP Claims | 5,800,000 | ||||
Financing Receivable, Insurance Receivables for APP Claims | $ 5,900,000 | ||||
Revision of Prior Period, Adjustment [Member] | Wholesales Third Party [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,200,000 |
Note B - Summary of Significa_4
Note B - Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Restricted Cash | $ 93,873 | $ 88,925 |
Collections On Auto Finance Receivables [Member] | ||
Restricted Cash | 35,134 | 43,956 |
Deposit in Auto Finance Receivable Reserve Account [Member] | ||
Restricted Cash | 44,969 | 44,969 |
Collections On Warehouse Facility [Member] | ||
Restricted Cash | 8,304 | 0 |
Deposit in Warehouse Facility Reserve Account [Member] | ||
Restricted Cash | $ 5,466 | $ 0 |
Note B - Summary of Significa_5
Note B - Summary of Significant Accounting Policies - Property and Equipment, Estimated Useful Lives (Details) | Jul. 31, 2024 |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 15 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 18 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 39 years |
Note B - Summary of Significa_6
Note B - Summary of Significant Accounting Policies - Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Sales | $ 287,248 | $ 310,337 |
Sales Used Autos [Member] | ||
Sales | 251,305 | 273,468 |
Wholesales Third Party [Member] | ||
Sales | 9,696 | 11,205 |
Service Contract Sales [Member] | ||
Sales | 17,072 | 16,347 |
Payment Protection Plan Revenue [Member] | ||
Sales | $ 9,175 | $ 9,317 |
Note C - Finance Receivables,_3
Note C - Finance Receivables, Net (Details Textual) | 3 Months Ended | ||
Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Apr. 30, 2024 | |
Financing Receivable Interest Rate | 18.25% | ||
Finance Receivables, Number of Loan Classes | 1 | ||
Finance Receivables, Number of Risk Pools | 1 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | $ 772,000 | $ 640,000 | |
Financing Receivable, Allowance for Credit Loss to Outstanding, Percent | 25% | 25.32% | |
Provision for Credit Losses, Resulting Benefit from Increase (Decrease) | $ 4,300,000 | ||
Collections as Percentage of Average Financing Receivables | 5% | ||
Increase (Decrease) in Average Selling Price | $ 451 | ||
Increase (Decrease) in Average Selling Price, Percentage | 2.40% | ||
ARKANSAS | |||
Financing Receivable Interest Rate | 16.75% | ||
TENNESSEE | |||
Financing Receivable Interest Rate | 23% | ||
Maximum [Member] | |||
Financing Receivable Interest Rate | 18.25% | ||
Financing Receivable Payment Period | 69 months | ||
Maximum [Member] | ARKANSAS | |||
Financing Receivable Interest Rate | 16.75% | ||
Maximum [Member] | ILLINOIS | |||
Financing Receivable Interest Rate | 21.50% | ||
Minimum [Member] | |||
Financing Receivable Payment Period | 18 months | ||
Minimum [Member] | ILLINOIS | |||
Financing Receivable Interest Rate | 19.50% |
Note C - Finance Receivables,_4
Note C - Finance Receivables, Net - Components of Finance Receivables (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 | Jul. 31, 2023 | Apr. 30, 2023 |
Gross contract amount | $ 1,883,106 | $ 1,844,392 | ||
Less unearned finance charges | (417,847) | (409,004) | ||
Principal balance | 1,465,259 | 1,435,388 | $ 1,440,707 | |
Less: estimated insurance receivables for APP claims | (2,468) | (3,026) | ||
Less: allowance for APP claims | (2,757) | (3,171) | ||
Less: allowance for credit losses | (334,424) | (331,260) | (314,442) | $ (299,608) |
Finance receivables, net | 1,125,610 | 1,097,931 | $ 1,114,519 | $ 1,062,760 |
Loan origination costs | 661 | 660 | ||
Finance receivables, net, including loan origination costs | $ 1,126,271 | $ 1,098,591 |
Note C - Finance Receivables,_5
Note C - Finance Receivables, Net - Changes in Finance Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Balance at beginning of period | $ 1,097,931 | $ 1,062,760 |
Finance receivable originations | 271,756 | 297,732 |
Finance receivable collections | (112,358) | (109,291) |
Provision for credit losses | (95,423) | (96,323) |
Losses on claims for accident protection plan | (9,321) | (7,769) |
Inventory acquired in repossession and accident protection plan claims | (26,975) | (32,590) |
Balance at end of period | $ 1,125,610 | $ 1,114,519 |
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 | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Balance at beginning of period | $ 331,260 | $ 299,608 |
Provision for credit losses | 95,423 | 96,323 |
Charge-offs | (121,605) | (112,745) |
Recovered collateral | 29,346 | 31,256 |
Balance at end of period | $ 334,424 | $ 314,442 |
Note C - Finance Receivables,_7
Note C - Finance Receivables, Net - Credit Quality Information for Finance Receivables (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 | Jul. 31, 2023 | Oct. 31, 2022 |
Principle Balance | $ 1,465,259 | $ 1,435,388 | $ 1,440,707 | |
Percent of Portfolio | 100% | 100% | 100% | 100% |
Financial Asset, Not Past Due [Member] | ||||
Principle Balance | $ 1,155,006 | $ 1,125,945 | $ 1,151,275 | |
Percent of Portfolio | 78.44% | 79.91% | ||
Financial Asset, Past Due [Member] | ||||
Percent of Portfolio | 78.82% | |||
Financial Asset, 3 to 29 Days Past Due [Member] | ||||
Principle Balance | $ 259,145 | $ 264,491 | $ 226,600 | |
Percent of Portfolio | 17.69% | 18.43% | 15.73% | |
Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Principle Balance | $ 38,035 | $ 34,042 | $ 48,650 | |
Percent of Portfolio | 2.60% | 2.37% | 3.38% | |
Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Principle Balance | $ 7,463 | $ 6,438 | $ 9,294 | |
Percent of Portfolio | 0.51% | 0.45% | 0.64% | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Principle Balance | $ 5,610 | $ 4,472 | $ 4,888 | |
Percent of Portfolio | 0.38% | 0.31% | 0.34% |
Note C - Finance Receivables,_8
Note C - Finance Receivables, Net - Financing Receivables Analysis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Average total collected per active customer per month | $ 562 | $ 535 |
Portfolio weighted average contract term, including modifications (in months) (Month) | 48 months 3 days | 46 months 27 days |
Principal collected as a percent of average finance receivables | 7.80% | 7.80% |
Average down-payment percentage | 5.20% | 5% |
Average originating contract term (in months) (Month) | 44 months 9 days | 44 months 21 days |
Note C - Finance Receivables,_9
Note C - Finance Receivables, Net - Finance Receivable Summarized by Fiscal Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | Oct. 31, 2022 | |
Current year, principal balance | $ 261,944 | $ 296,860 | ||
Year two, principal balance | 710,136 | 758,830 | ||
Year three, principal balance | 351,858 | 309,379 | ||
Year four, principal balance | 122,381 | 69,511 | ||
Year five, principal balance | 17,215 | 4,936 | ||
Prior, principal balance | 1,725 | 1,191 | ||
Finance Receivable, Principal Balance | $ 1,465,259 | $ 1,440,707 | $ 1,435,388 | |
Principal balance, percentage | 100% | 100% | 100% | 100% |
Charge-offs, current year | $ 2,619 | $ 3,239 | ||
Charge-offs, year two | 70,413 | 75,308 | ||
Charge-offs, year three | 36,752 | 28,036 | ||
Charge-offs, year four | 10,578 | 5,577 | ||
Charge-offs, year five | 1,048 | 441 | ||
Charge-offs, after year five | 195 | 144 | ||
Charge-offs, total | 121,605 | 112,745 | ||
Customer Score 1-2 [Member] | ||||
Current year, principal balance | 18,758 | 14,450 | ||
Year two, principal balance | 34,722 | 30,477 | ||
Year three, principal balance | 10,548 | 9,911 | ||
Year four, principal balance | 2,645 | 1,821 | ||
Year five, principal balance | 245 | 227 | ||
Prior, principal balance | 90 | 28 | ||
Finance Receivable, Principal Balance | $ 67,008 | 56,914 | ||
Principal balance, percentage | 4.60% | 4% | ||
Customer Score 3-4 [Member] | ||||
Current year, principal balance | $ 94,738 | 105,595 | ||
Year two, principal balance | 251,217 | 241,759 | ||
Year three, principal balance | 94,939 | 84,065 | ||
Year four, principal balance | 26,565 | 17,510 | ||
Year five, principal balance | 2,899 | 1,044 | ||
Prior, principal balance | 396 | 311 | ||
Finance Receivable, Principal Balance | $ 470,754 | 450,284 | ||
Principal balance, percentage | 32.10% | 31.20% | ||
Customer Score 5-6 [Member] | ||||
Current year, principal balance | $ 148,448 | 176,815 | ||
Year two, principal balance | 424,197 | 486,594 | ||
Year three, principal balance | 246,371 | 215,403 | ||
Year four, principal balance | 93,171 | 50,180 | ||
Year five, principal balance | 14,071 | 3,665 | ||
Prior, principal balance | 1,239 | 852 | ||
Finance Receivable, Principal Balance | $ 927,497 | $ 933,509 | ||
Principal balance, percentage | 63.30% | 64.80% |
Note D - Property and Equipme_3
Note D - Property and Equipment, Net - Property and Equipment (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Less accumulated depreciation and amortization | $ (51,759) | $ (49,906) |
Total | 59,793 | 60,361 |
Land [Member] | ||
Property and equipment | 11,998 | 11,998 |
Building and Building Improvements [Member] | ||
Property and equipment | 23,436 | 23,435 |
Furniture, Fixtures and Equipment [Member] | ||
Property and equipment | 22,094 | 21,752 |
Leasehold Improvements [Member] | ||
Property and equipment | 50,768 | 50,689 |
Construction in Progress [Member] | ||
Property and equipment | $ 3,256 | $ 2,393 |
Note E - Accrued Liabilities -
Note E - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Employee compensation | $ 9,606 | $ 10,774 |
Deferred sales tax (see Note B) | 4,808 | 6,234 |
Fair value of contingent consideration | 6,536 | 3,193 |
Other | 8,127 | 5,406 |
Total | $ 32,547 | $ 27,828 |
Note F - Debt Facilities (Detai
Note F - Debt Facilities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 12, 2024 | Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | Sep. 16, 2024 | |
Proceeds from Notes Payable | $ 149,889 | $ 360,340 | |||
Notes Payable [Member] | |||||
Minimum Percent of Pool Balance | 2% | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Additional Borrowing Capacity, Accordion Feature | $ 33,500 | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 340,000 | ||||
Debt Instrument, Base Rate | 8.50% | 8.50% | |||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | Principal Balance Under 300 Million [Member] | |||||
Line of Credit Facility, Minimum Required Available Draw Amount | $ 20,000 | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | Principal Balance At or Over 300 Million [Member] | |||||
Line of Credit Facility, Minimum Required Available Draw Amount | 50,000 | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 320,000 | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | Base Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1% | 1% | |||
Warehouse Facility [Member] | |||||
Proceeds from Notes Payable | $ 150,000 | $ 150,000 | |||
Notes Payable, Percentage of Note Classified as Recourse | 10% | ||||
Line of Credit Facility, Interest Rate at Period End | 8.83% | ||||
Warehouse Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% |
Note F - Debt Facilities - Summ
Note F - Debt Facilities - Summary of Debt Facilities (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Revolving line of credit, net | $ 184,846 | $ 200,819 |
Notes payable, net | 597,494 | 553,629 |
Notes payable, net | 597,494 | 553,629 |
Total debt | 782,340 | 754,448 |
Warehouse Facility [Member] | ||
Debt facilities, gross | 149,888 | 0 |
Debt issuance costs | (1,060) | 0 |
Notes payable, net | 148,828 | 0 |
Notes payable, net | 148,828 | 0 |
Line of Credit [Member] | ||
Debt facilities, gross | 185,945 | 201,743 |
Debt issuance costs | (1,099) | (924) |
Revolving line of credit, net | 184,846 | 200,819 |
Non Recourse Notes Payable, 2023 Issuance [Member] | ||
Debt facilities, gross | 118,623 | 150,190 |
Non Recourse Notes Payable, 2023-2 Issuance [Member] | ||
Debt facilities, gross | 169,698 | 203,189 |
Non Recourse Notes Payable 2024 Issuance [Member] | ||
Debt facilities, gross | 161,899 | 202,916 |
Nonrecourse [Member] | ||
Debt issuance costs | (1,554) | (2,666) |
Notes payable, net | 448,666 | 553,629 |
Notes payable, net | 448,666 | 553,629 |
Warehouse Facility and Nonrecourse [Member] | ||
Notes payable, net | 597,494 | 553,629 |
Notes payable, net | $ 597,494 | $ 553,629 |
Note F - Debt Facilities - Bala
Note F - Debt Facilities - Balance and Coupon Rate (Details) $ in Millions | Jul. 31, 2024 USD ($) |
Notes Payable, 2023 Issuance [Member] | |
Principal balance | $ 400.2 |
Weighted average fixed coupon rate | 8.68% |
Notes Payable, 2023-2 Issuance [Member] | |
Principal balance | $ 360.3 |
Weighted average fixed coupon rate | 8.80% |
Notes Payable 2024 Issuance [Member] | |
Principal balance | $ 250 |
Weighted average fixed coupon rate | 9.50% |
Note G - Fair Value Measureme_3
Note G - Fair Value Measurements (Details Textual) | 1 Months Ended |
Oct. 31, 2022 | |
Fair Value Inputs, Discount Rate, Intercompany Transactions | 38.50% |
Measurement Input, Discount Rate [Member] | Minimum [Member] | |
Receivables, Measurement Input | 34% |
Measurement Input, Discount Rate [Member] | Maximum [Member] | |
Receivables, Measurement Input | 39% |
Note G - Fair Value Measureme_4
Note G - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | $ 4,748 | $ 5,522 |
Restricted cash | 93,873 | 88,925 |
Inventory - Repossessions | 18,102 | 18,182 |
Finance receivables, net | 1,126,271 | 1,098,591 |
Accounts payable | 35,582 | 21,379 |
Contingent Consideration | 6,536 | 3,193 |
Reported Value Measurement [Member] | Nonrecourse [Member] | ||
Notes payable | 448,666 | 553,629 |
Reported Value Measurement [Member] | Revolving Credit Facility [Member] | ||
Lines of Credit, Net of Debt Issuance Costs, Fair Value Disclosure | 184,846 | 200,819 |
Reported Value Measurement [Member] | Warehouse Facility [Member] | ||
Notes payable | 148,828 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Cash and cash equivalents | 4,748 | 5,522 |
Restricted cash | 93,873 | 88,925 |
Inventory - Repossessions | 18,102 | 18,182 |
Finance receivables, net | 901,134 | 882,764 |
Accounts payable | 35,582 | 21,379 |
Contingent Consideration | 6,536 | 3,193 |
Estimate of Fair Value Measurement [Member] | Nonrecourse [Member] | ||
Notes payable | 456,644 | 553,003 |
Estimate of Fair Value Measurement [Member] | Revolving Credit Facility [Member] | ||
Lines of Credit, Net of Debt Issuance Costs, Fair Value Disclosure | 184,846 | 200,819 |
Estimate of Fair Value Measurement [Member] | Warehouse Facility [Member] | ||
Notes payable | $ 148,828 | $ 0 |
Note H - Weighted Average Sha_3
Note H - Weighted Average Shares Outstanding - Weighted Average Shares of Common Stock Outstanding (Details) - shares | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Weighted average shares outstanding-basic (in shares) | 6,396,757 | 6,381,704 |
Dilutive options and restricted stock (in shares) | 0 | 253,298 |
Weighted average shares outstanding-diluted (in shares) | 6,396,757 | 6,635,002 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive securities (in shares) | 534,767 | 240,000 |
Restricted Stock [Member] | ||
Antidilutive securities (in shares) | 14,176 | 0 |
Note I - Stock-based Compensa_3
Note I - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | ||||||
Aug. 30, 2022 | Aug. 26, 2020 | Aug. 29, 2018 | Aug. 05, 2015 | Jul. 31, 2024 | Jul. 31, 2023 | Aug. 28, 2018 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 22,281 | 35,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Fair Value | $ 350,000 | $ 1,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Exercised Through Net Settlements | 30,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Reduction in Shares Issued to Satisfy the Exercise Price and Applicable Withholding Taxes | 23,507 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Exercised Through Net Settlements, Net of Shares to Satisfy the Exercise Price and Applicable Withholding Taxes | 6,493 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 4,800,000 | 25,800,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 446,234 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 4,100,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 8 months 12 days | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 76.89 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 90,233 | ||||||
Share-Based Payment Arrangement, Option [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 200,800 | 1,900,000 | |||||
Share-Based Payment Arrangement, Expense, after Tax | 164,000 | 1,500,000 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,900,000 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | ||||||
Restated Option Plan [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 1,300,000 | 2,500,000 | |||||
Share-Based Payment Arrangement, Expense, after Tax | $ 1,100,000 | 1,900,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 185,000 | 200,000 | 200,000 | 300,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 1,800,000 | 2,385,000 | |||||
Restated Option Plan [Member] | Share-Based Payment Arrangement, Option [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | ||||||
Stock Incentive Plan [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 1,100,000 | 509,000 | |||||
Share-Based Payment Arrangement, Expense, after Tax | $ 839,000 | $ 396,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 450,000 | 100,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 224,031 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 63.17 | ||||||
Stock Incentive Plan [Member] | Restricted Stock [Member] | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 6,300,000 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 16,364 | 0 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 4,959 |
Note I - Stock-based Compensa_4
Note I - Stock-based Compensation - Stock Option Plan Comparison (Details) | 3 Months Ended |
Jul. 31, 2024 shares | |
Minimum Exercise Price as a Percentage of Fair Market Value at Date of Grant | 100% |
Last expiration date for outstanding options | May 09, 2034 |
Shares available for grant at July 31, 2022 (in shares) | 90,233 |
Note I - Stock-based Compensa_5
Note I - Stock-based Compensation - Options Valuation Assumptions (Details) | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Expected terms (years) (Year) | 4 years 10 months 24 days | 5 years 6 months |
Risk-free interest rate | 5.13% | 3.66% |
Volatility | 60% | 58% |
Dividend yield | 0% | 0% |
Note I - Stock-based Compensa_6
Note I - Stock-based Compensation - Options Exercised (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Options exercised (in shares) | 0 | 30,000 |
Cash received from option exercises | $ 0 | $ 0 |
Intrinsic value of options exercised | $ 0 | $ 1,036 |
Note J - Commitments and Cont_3
Note J - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Operating Lease, Percent of Facilities Leased | 86% | |
Operating Lease, Expense | $ 2.6 | $ 2.2 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.90% | |
Letters of Credit Outstanding, Amount | $ 3.9 | $ 2.9 |
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 | Jul. 31, 2024 | Apr. 30, 2024 |
2025 (remaining) | $ 7,710 | |
2026 | 9,876 | |
2027 | 9,277 | |
2028 | 8,608 | |
2029 | 7,713 | |
Thereafter | 48,636 | |
Total undiscounted operating lease payments | 91,820 | |
Less: imputed interest | (21,130) | |
Present value of operating lease liabilities | $ 70,690 | $ 64,250 |
Note K - Supplemental Cash Fl_3
Note K - Supplemental Cash Flow Information - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Interest paid | $ 17,062 | $ 15,306 |
Income taxes paid, net | 1,297 | 135 |
Inventory acquired in repossession and accident protection plan claims | 26,975 | 32,590 |
Net settlement option exercises | 0 | 1,646 |
Right-of-use assets obtained in exchange for operating lease liabilities | 384 | 0 |
Right-of-use assets obtained in exchange for operating lease liabilities through acquisitions | $ 7,433 | $ 0 |
Note L - Acquisitions (Details
Note L - Acquisitions (Details Textual) - USD ($) $ in Thousands | Jun. 03, 2024 | Jul. 31, 2024 | Apr. 30, 2024 |
Goodwill | $ 22,900 | $ 14,400 | |
Texas Auto Center [Member] | |||
Business Combination, Consideration Transferred | $ 13,500 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 0 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 15,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 100,000,000 | ||
Business Acquisition, Equity Acquired | 5,000 | ||
Goodwill | $ 8,500 |
Note M - Subsequent Events (Det
Note M - Subsequent Events (Details Textual) - BMO Harris Bank [Member] - Revolving Credit Facility [Member] - USD ($) $ in Millions | Sep. 16, 2024 | Jul. 31, 2024 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 340 | |
Principal Balance Under 300 Million [Member] | ||
Line of Credit Facility, Minimum Required Available Draw Amount | $ 20 | |
Principal Balance At or Over 300 Million [Member] | ||
Line of Credit Facility, Minimum Required Available Draw Amount | 50 | |
Subsequent Event [Member] | ||
Line of Credit Facility, Increase In Maximum Borrowing Capacity | (20) | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 320 | |
Line of Credit Facility, Permitted Borrowing Fee Percentage | 0.10% |