CRMT - Earnings call transcript Q4 2020 | America's Car-Mart, Inc.

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Operator

Good morning, everyone. Thank you for holding and welcome to America's Car-Mart's Fourth Quarter Fiscal 2020 Conference Call. The topic of this call will be the earnings and operating results for the company's fourth quarter for fiscal 2020.

Before we begin, I would like to remind everyone that this call is being recorded and will be available for replay for the next 30 days. The dial-in number and access information are included in last night's press release which can be found on America's Car-Mart's website at www.car-mart.com.

materially some inherently comments that involve actual to know, forward-looking may could all view. results which present statements, risks differ you of today management's include cause As management's from and uncertainties These statements Safe of XXXX. Private the of to Litigation Act Harbor Reform provisions Securities made are pursuant the any accuracy such update forward-looking guarantee The forecast estimate, to company the cannot nor obligation or any of does it undertake statements.

XX-K annual for information, please fiscal see X report information on XX, more company's Form furnished to April current regarding forward-looking ended the or For it's filed Forms on XX-Q. and the X-K Commission reports of year Part and with the XXXX, Exchange and Securities quarterly

and call Jeff Officer. President Participating Financial the Executive to on And now are morning I'd Williams. Jeff this Chief the the the company's Judy, to Vickie call like Officer, over Chief Executive Williams, Officer; turn company's and Chief

Jeff Williams

joining for America's morning thank this and you Well, you for Car-Mart. thank Okay. in us interest your

pandemic hitting With work. quickly priorities to us our we the went and in mid-March, set

one our was, of be, health will the is communities. always and safety number and our and customers associates, priority our Our

minimizing hour which We above federal, guidelines, to various be to over several are spread to go changing took though the weeks the were to most weeks. of several operating and adjust literally the what on by local and focused we do Even state trying coronavirus. restrictions the we for consider to certainly essential, related it

magnitude, of funds, clarity predict on behavior sheet funds next trying get As a when recipient, and then pocketbooks. our priority the we reached safe our working was healthy that protecting and and while any determined environment, balance actually consumer provide timing we to those stimulus the the could

could chain our With on through we potential in and confident opportunity but sheet, less be really supply demand, customers. spot on when to in the without we're the focused model normal. for in in on in significant focused return future reset things pass so good and purchase this money, damaging getting that balance consumer really value a business the very or and to that our we cars our are We projected disruptions with decreases to our to better inventory then the our same

Our somewhat and offering has strong; demand vehicle our for processes, continue consumer as supply we chain we to forward. remains stressed will move our procurement been so strengthen

We pandemic. to initiatives light the currently prior our but some started that good are in with progress the spots inventory we expect with

inventory that starting We beginning investment are fiscal of the new actually fiscal at we with year had this same the 'XX. about year

years XX through almost working For now, with sale. mechanically we've challenges vehicles then sound after them putting credit challenged in good by life's the and working been customers them with

captive us deep, opportunity structure lasting our relationships lending form character with customers. combined lending personal allows to business Our the our nature with of the long

our customers local shoulders on dedicated needs give keeping and hold to here lives is of our as road. on one value place We by area of our stress that the they what of for peace them their great life, transportation mind of related out We to the their take on our bargains that Car-Mart. that we responsibility that to and but the we've offer purpose, at what our is It vision market. is up the America's big end our

to successfully difficult given prove has over have in one times. valuable the challenges us We through pandemic are navigated and years we the many how opportunity more

responded. our has at us worked opportunity approach. presented each The of different customer a always proud really walk we're very pandemic be to with team situation that one have We the is always an will and because to how walk, our has time and

the Vickie to turn over numbers. I it Vickie? to will go Now, over

Vickie Judy

to half million [ph]. quarter to a of ended really increase the and COVID-XX of revenues prior Good being despite start from the up X.X% and increased had XX.X%, quarter income. in We a a with time were of a revenues quarter average the morning, Jeff. combined selling tax XX.X% up with X.X% $XXX successful the in great increase price impacted the volumes pandemic. actually from start everyone. Thank a interest sales, The were upto pandemic. revenue record X.X%. a revenues XX.X% increase, the were resulted you, We increase These Same-store

years stores of Revenues XX-year from X- stores dealerships old, to to category $XX in about with old or stores five XX% in remaining was category older. up years revenues zero being million. or X%, were were less the At quarter up to five was or from XX% category and was XX% years our than XX% the to XX% of from of over X years old, per end age XX% XX XX in years XX the XX%, age up

was per to quarter. year for productivity overall XX.X Our per month units compared prior lot the XX.X

year plus of Lots quarter. XX.X year produced compared per category years productivity XX.X XX-year for X- produced for five XX XX.X to had and year. age XX.X lots to XX.X, per XX.X fourth the Our the last in lots units than of month, sold to lot compared of prior less to the compared quarter

sequentially. to was for a of was price two attributable payment with compared primarily average to quarter. The X.X%, term XX% receivables the with selling increased the in a The in prior primarily approximately term the up and increase prior as Our also originating $X,XXX result for to compared X.X% average remaining year months and finance decline increase accounted quarter; of average was to collections at XX.X months selling COVID-XX. compared was term. corresponding average the percentage XX% and in for of percentage up extension the the year in the to as down a due XX.X price modifications XX% comparable XX.X delinquencies months collections The from

X basically at term entire age prior portfolio was XX.X at compared the months average Our for weighted flat the including months. portfolio contract to the The for average modifications weighted year. of XX.X was

the due was or of end quarter. a increased interest average prior finance all increase from weighted at to XX.X%, receivables increase. the year $X.X flat $XX.X compared approximately The finance the in the average income Interest million XX.X% quarter receivables quarter, the for prior XX.X% at million year rate to primarily

profit compared $X,XXX are slightly was the unit or margin XX.X%. retail quarter in margin increased percentages at XX.X% The The year percentage to quarter. resulted to XX.X% to that X.X% gross our up compared at profit year gross prior gross from dollars higher higher Gross for average per the $XXX sequential selling margin selling sold price price. percentages and fourth increased the quarter, a gross prior lower lower as with lower same approximately for eventually vehicle able to during of slightly prices newer purchase the hope will be with however average purchase leveling fewer selling vehicles the the we of which were to in majority pandemic, in price beginning price. The the feel sold the vehicle a of the market more we since purchase of will the result miles we the purchased quarter off pandemic, prior a

a increase SUVs slight quarter as We this year number the in over quarter prior did sold of well. the in see

quality a some sales While some at we until a good did we for We preserve purchase do to value. forward have hold flow, restrictions off expect on to better pandemic. on inventory had cash during vehicles moving opportunities the to volumes and time period clarity purchases and of

quarter due increased quarter for XX.X% at payroll well prior primarily spend to associate SG&A $X.X million and benefits prior additional The costs year the in up of training. quarter as compared XX%. sales over is for the count was investments to year as to compared the pay

quarter health as to as did maintaining including well engagement even a can associate and safety part-time As we other adjust non-associate to benefits, The no prior hourly related and reduced disruption as returns our normal. associates was reaction and significantly for however, payroll, pandemic. disruption to so the were that to priority, expecting leveraging focused of quickly with business We the COVID-XX, also expenses on to workforce related customers expenses. we we the better

the year current quarter, receivables charge-offs from quarter. For down fourth prior finance average as was a percentage of in net X.X% the X.X%,

concern begin time the pandemic. if repossession get diligently through during customers of a with repossession and our work through working our the suspend for during back and and changing We're additional associates, possible. some certain time did in and keep effort We've period and them interactive recently, with we've For and help and visits outreach our to customers efforts these texting their testing our in this and an with of also personal visits customers safety started contact we to issues personal in process, emails. activities customers all Again, vehicles.

of many to quarter. customers in prior past with XX impacted our increased in COVID-XX X.X% compared past due due year fourth at the resulted plus and X.X% has amount

in amounted million the did we XX.X% to As from pre-tax to $XX.X the quarter. charge provision allowance which an increase a to for our credit result, fourth losses XX.X%

compared quarter demonstrating company current the of our included and their prior year for through has fiscal quarter difficult to tax related on expense the mission. been and tax XX.X% benefit the 'XX built XX% the of times are was dedication this customers quarter. to quarter an effective for $XXX,XXX for The and income Our fourth helping share-based year tax rate Income to respectively. compensation prior $XXX,XXX associates

prior to to rate from base forward tax XX.X% stock be option effective exercises. our going any expect We excess approximately tax benefits

our $XX $XX revolving our a and We At have million million and $XXX continue had was end, debt to sheet. We strong facilities. credit additional cash approximately total availability balance in quarter flows over under cash solid million. in

Our time net year. to receivables XX.X% current ratio last debt this of finance was to XX.X% cash at compared

year, repurchased a in with finance debt for cash. our million $X.X we million in of we For increase common a of net million $X.X spend added of million $XX.X $XX capital the $XX.X funded we million net expenditures in only total receivables, stock,

Thank you.

I'll back turn Jeff. it to Now,

Jeff Williams

proud has these of is solid that Vickie. balance very and impressive extremely fact and our times. have our remained been very of in team am you, I sheet very Thank the our strong, results proud which

the about the future our our optimistic are We of place company. world in and

unique. is do we What

look invest overtime. large that could of will people, recruiting, dealerships and share to We training believe in our We locations. more and to our from retaining, to continue grow or X,XXX current existing a market percentage support our continue customers

open continue have scheduled also the process, dealership and first have dealerships will this should then and we also Norman, in new later year in Arkansas Edmond open openings to those for Cabot, quarter. and currently for Chattanooga, Oklahoma. Tennessee and We new And

with at our more. tough footprint believe ourselves highest but was do to Motors, businesses. great to and customers with recent will I'd people model our solid will business the strategic We opportunities we're market that who at We acquisitions our have strong. more This also an some run folks positions more obligation is operators push level, the always a have we like tough serve acquisition. good for to expand Taylor believe business we and we

implement and processes To to customers to continue demand during to our will as continue refine service be develop we we and crisis, were home efforts the curbside delivery to able able market dictates. and

better. great in other, Thank you grown and for communities. have all and who our and make same social closer customers and done our together closer outstanding communities of purpose to the essential work together fulfilling our as each associates in cleaning we've grown protocols, at our and We've following a with distancing help customers. our time We out looked our team our

it for open will Operator? up we questions. Now,

Operator

participants At John earlier the anything the this [Operator comments during to and from may to callers. remarks like Instructions] America. Our from regarding both will of now Bank the statements reiterate Q&A. question to come up forward-looking answer with participants' my I prepared questions comes that Murphy first the time, apply, that would

Your now line is open.

John Murphy

And hear from morning, it's to everybody. you. Good great

and deliver customers most more demand. crisis, be the by quarter supply some just to Just question, may by comment, mean, maybe just in more the can can I you was strong in what good been first bit this inventory, on a been of start I quarters what maybe or your the that has comments you're think if with had just you appears seems mean your you have mean, to relatively It this vehicles tight. relatively demands on curious you the supply debt strength? coming demand unfortunately. constrained just relative being in I a you impacted given to wanted and lot do curious

curious that? Just by what mean you

Jeff Williams

would are be we thought overall would bit the Well, looking while quite we our the be happening demand a nearly as volume latter weren't and as by down XX%, part halt quarter, XX%, XX%. and and you things initially came sure know what car the in what the we of we down market decreases market. were might weren't in larger as consumer indicator demand We a much when used down; down of would and an we some section just the to be were of to be

we quarter planning I as supply certain that did any certainly far of We this constraint so, sales, during the little end into inventory And as a to sales levels. the spots light know quarter in the because the lost but losing too. don't is

the just a just of back started so get think again, of a say there and shutdown the repair the supply cars sales. during in up more think not effect with March. huge as decreased and would I high a of coming more cars quite end February in for and of lot cars, if is I it a I as pandemic; wasn't flowing wouldn't for big that at inventory We quarter, and -- think certainly do the of our one auctions March our April, but had was vendors sold have could we cars and that was is cars. to mess the the reason inventory without in and there our afternoon in But and I have sold disruption pandemic and the itself the the shops, supply

John Murphy

Okay.

of to a the were quarter. I can change? us give concern of inform because of Just sort mean, you sounds of mean, I -- as might previously, as as lot we was performed this same-store like thoughts change you're it's demand certainly, you on you through exit way be a follow-up the there of year-over-year maybe than obviously better cadence And rate And kind forward? that about is -- the year-over-year zero exited, that, sales I guys lot think there going a our well what it seeing that. the and that about -- maybe

Jeff Williams

and -- we in very our Yes. good month strong Basically March both months quarter, had last first April, And first maybe and for down March. February was and of of those the half February a but we down a bit. digits. not had digits; as were then a we down low so a were February low-double strong nearly double market, as down and March rest the and little much had and as very -- of the But were April

John Murphy

And Jeff, that digits? down that, roughly in April, exit -- or that rate improved double was so did was the

Jeff Williams

It digits. was double roughly

John Murphy

Okay, got you.

dealing the structure fast side, to with and workforce furloughs; furloughs just you've bring tethered business like on then you the you opposed PPP And despite Okay. and to you're the the decided it I'm go curious how as sounds the workers look them recovers? those math. back I us guess way give the normalizes at and as How are you how and to can

Vickie Judy

any furlough than part-time other didn't actually associates We a few people.

associates able work them other big to hours, there. We some; were our able still that to of All with in that were so keep them, associates, also hourly we a to contact we coming benefit so engaged. stay allowed that was stay reduced and our to

Jeff Williams

our of all employees. have still We full-time

For working, still still the still are most our payroll plugged in. part on roasters, still engaged,

as things best normalize. to evident engaged and associates great was place us keep could right we very it we that So our had in to upfront until

done we've of good job think a that. really I

John Murphy

normalize gas hit hours on back the you ramp up? and as can just So things

Vickie Judy

Correct.

John Murphy

about up that they [ph]? that then could lastly the about next do provision That's estimate kind that with think great. how two? then just provisioning, of should you enough what that that -- the you how do you just much going of losses think forward? around took we see that kind of And How Do how maybe in you the And was that going forward; the for or going up? calculate number quarter come think and you're kind and to in ramp quarter; provision

Vickie Judy

just a of a like But unemployment to back, the didn't all done, we is happens but after a and lot the delinquencies, repossess month stimulus runs or -- amounts account many able contact with a there weren't is and our reaches delinquencies to look and quarter. just like. that because like there what at there historically money into they where for look our unknown in It the going or a to come difficult an certain still we unknown, we at on is what we've historical looked a ending we how out, lot of question, get does are basically John. and That's the out jobs delinquency, good half, extra were. after customers was going quarter when looked Basically,

Jeff Williams

But don't your car -- stress to sure other you've we did that got in on we you. car, focused we're now, making right hey, were that, here realize really you about. for the here customers things keep to worry about We're

really So soft appears and a off consumer-friendly paying that really took to us. for be approach

use our payments. that their that of consumers to on with those out, in decided right good have contracts Now stimulus is us, cars, money chunk stay get a to the make

affordable fairly And a do, reacting a in basic the we're transportation And we relationships we're need areas we So, solid consumers to those what a enough. then relationship folks, be are really adjustment this transportation. is not how that with don't character way, out that optimistic showing have public lending we they good are is made that purchase, going it's in have there. discretionary

John Murphy

of some vehicles but may the consumers sort dictate off that of I public individual necessarily cross-section or markets; mean, provide? public if of of ownership step-up moving some for it's one the on dealers in with towards has in a and in you demand of maybe change not can like vehicles transportation of margin. -- some last of been a to end And anecdotally are ask are demand there know folks from there the seeing I be them, bit any of a We've quick transportation that just one And lower follow-up your on that heard directly these range used less could $XX,XXX you the consumption consumer get that. off I

Jeff Williams

don't for serve would transportation. can transportation potentially with car that areas a might be but of we where deflation areas don't that public a to the serve result be just see areas in really lot have we -- and know, demand I would that may You other public than less that in we increase we serve basic which don't now, anyway. right expect factor

John Murphy

Okay.

Vickie Judy

other what a need. John, They vehicle more out out have are luxury think is that more shopping; quarter. might a need didn't people we than getting that there for or this fourth of a as a the have I or warning something it's a real during new seeing, a choice, much that those not are of are

John Murphy

Great. it. guys. very much, Thank you I appreciate

Jeff Williams

Thank you.

Operator

Thank you.

Our next Kyle comes with from question Jefferies. Joseph

now Your open. is line

Kyle Joseph

Good morning, everyone guys. questions. well. there Thanks Hope my very much for taking is

Jeff Williams

you. Thank

Kyle Joseph

some I flowing ultimately of so get delinquencies lot that's how also I wanted for then can to started delinquencies? in and you mid-March, just relief terms there quarter? the see for Obviously -- you about from trended did and impacted moving a delinquencies but how in just COVID know us talk trending credit then, And parts been a stimulus And in stimulus? there, factors two through a really mid-April; if is those sense of quarter-to-date? while, -- give

Vickie Judy

fourth So our is is if during time, lot payment big where with seasonal and a there type it, consumers a time, tax time. quarter lot think payment our that of about you cash of schedule we

mean huge like money amounts; really, I the when and March, throughout we a and lot And the the of really started we then our bit came related Jeff's out a of to did definitely little to shut said, stimulus see So weren't well but kind increase. down that point, was of term into down initial of everything collections uptick just I by out. month February February

pretty customer the the had rest as what look yet we contacts this, I good about the the announced; be like with to in we customers. overall, but payments we our and So move that is think felt through of stimulus

Jeff Williams

has far so -- the too. pretty collection side as May, been good In on May

to in we're to So response work efforts very our our the customers with pleased with field our and efforts. customers

Kyle Joseph

a going But forward? has given fairly bit your more would That's And change be it. all very we to little helpful. the a on, Got allowance uncertainty historically, frequently allowance going expect stable. to that bit been

Vickie Judy

that up hope so we we've But now to that change we You unknown it that just just know, enough here to much think that so year be to increased for still change what's is won't it next coming to that difficult said, the lot. it there we again. like right say need would don't like a cover I

Jeff Williams

we the had processes, the charge-offs collection repossess than we by net quarter charge-offs year's than still couldn't And under the have provision, of repossess last even been normal we like quarter, more we've normal and bit. would with the though even as the as operations, were we under and fourth -- income percentages Even in been year. focus pandemic been Kyle still the we statement would quite have prior if last a on the XX didn't days less far feel go

Kyle Joseph

very to in of Got dynamics helpful. think more dealerships, for other geographies? wanted a of I credit. Can trends. you about then, give -- competitive broadly, competitive it. in of was both of terms sense I environment those I about And supply sort your as talk That's the competitive well as us

Jeff Williams

spot opportunity great pick market point. -- still faced us like, be lot down -- a there. in don't years us and and lot Anyone dicey, competition hard are up -- a is conservative. And bit that to share, up We little pick -- is is have put that sheet the been on but struggle things little still with. here. that a leverage this share, certainly yet have to this XX of little unknown a to little the sheet, the a rate like to we enhancements know continue to little to been fact balance it's we've there going our at going with probably clarity And of less so market out bit more it's there securitizations spent a markets done, lending a some balance that for but has a feel in going feel what up on a building and great we It's to some have the we little

Kyle Joseph

to auctions last -- auction the from the shutdown you one us it. give talked just is this can to where the be say it there? -- point? of there I it -- then, a still but for period me. back you Are kind auctions of flowing one done sort are time that virtual would get our I of update, work you Got was? activity was essentially quarter, middle know And some of at an

Jeff Williams

Yes.

think are still done be auctions digital, [ph] work have maybe switched going there they physical stay digital. and I is there, to maybe to that some to reigned auctions

And just was so that to worked will there a still get and is is still will the this some miss, -- flowing product from one. to not our like out. out quite aspects understanding, still work some and at through It's pretty auctions not is the it But it point. it good get there flowing it disruptions, to and some of things square to have eventually, up back like

Kyle Joseph

Understood. thank much for you my very Well, answering questions. all

Jeff Williams

Thank you.

Vickie Judy

Thank you, Kyle.

Operator

Thank question you. Stephens. with Our comes from [Operator next Caintic Vincent Instructions]

is open. line now Your

Vincent Caintic

quick for you of my A ones. thank and questions. morning Good couple taking

and appreciate data April March So first, trends. I the gave you as on

you assuming the that If seeing on so being about the might I payments improving, sort how then double us far, it might that you think may could in has different? Is -- second for example, business has half that driving of it update of how maybe far maybe could affected trended in about May down more May? And I be in all? thought if seeing in on started also [ph] same-store you've May? vehicle; sales be affected, so digits is So, the you what at so talk talked demand actually be you're that May that April, driving

Jeff Williams

I'd but it product, a and still say shopping, at we're a last terms than is March point. May And demand overall April of year for are our healthy is trends. pretty seeing similar less in consumers little this to

much again, little a strong line trend is we our a overall, money mentioned, confidence positive, out to market picking has don't where And that to our are been share, about and As sentiment great And and we the stimulus for and the up continue consumer bit in cars used there sales position that. for with what overall over all while have do expect feel for in down were and April. we market now. market collections we May March in but control we are just

market short-term. to share, we're kind of volumes So, as what to are going up our increase But share we're to our going that that pick the -- get hands we're market going it's that optimistic ahead is overtime. of and of to market that

Vincent Caintic

Okay, great.

Next question on kind on of credit. --

first the forget delinquencies; you're you out. anything [indiscernible] you in that reserve historically I this the you're of reserves? what maybe future for your there there if So, some forbearance -- context sort but split -- could subject are X.X% in when And is on looking quarter? loss rates reserves; assuming your any to in credit in for difficult fact, now include or does talk increase are then, the survey? about And that You understanding it's and

Vickie Judy

Yes.

whatever not loans, that will a not us. CECL; this impact the there then quarter We XX schedules receiving a the modifications; or to we the so of started plus, as the We quick and really large effect much different a statement. to if on from we're 'XX real continued always already first expectation like loss So, delinquencies and provisioned CECL change unemployment no payment on out their for our expecting any what working for or we is how individually might can their any situations that. they that in relates XX-day afford customers until deferrals and have, our with for short-term didn't the or on be. of those like they do adjusting in take just anything income And there forbearances,

in been that we've not customers make and to work they would with had the numbers. arrangement, contact those them been delinquency out in we able once to contact But those customers more able the and up are modifications, customers. for typically, those So with, an in show got much we've we're successful

Jeff Williams

modifications year. fourth fourth the of bit a of during from the were up this just the quarter year And last quarter little

customers with in to So, we on point, fourth a year-to-year again, increase -- work one there – wasn't the in quarter. we Vickie's one, modifications huge and we

Vincent Caintic

Thank really that's helpful. Okay, you.

supply chain. Next, on the

talked auctions -- chain the back? an I'm of much Does that things bit. positions were know supply overall new impact. can about fix hope coming how little down; supply -- it But your I other inventory working -- So that's or how the the to stage Is sure options that what just do so are -- you level? you're a has wondering also at And been back does for there halted chain you this and on? that

Jeff Williams

repairing is product, speed auction our procurement full an of us; some all solid, to to to as our us helps terms the going consumers mentioned, us you in and sound opening some avenues some auctions, flow mechanically as used for gain efforts opportunity at allow and place, hopefully of online networks. and supply help. that purchases some preferred back even our to maybe is our will -- streamline help back cars And certainly good that and going new that through all supply, to going are car opening flow, stores up -- have it some good up, had efforts finding add with normal for so, some to soon, those at for to vendor through in preferred for maybe things getting the share. point, in channels, confident and those we to a return opportunities certainly repossessions, and general market and And place public The suppliers, have that to us Yes. through it some are from affordable, car cars attention shops back state we're need of more

Vincent Caintic

Okay, And one great. me. from last

environment talk about acquisitions, are other willing more you? to about of the to may maybe folks, if you. And sell competitors you there? be store you hearing talked You potential could maybe Thank

Jeff Williams

way run to out there; of business, good operators exit point. at a out in part businesses, looking team. great the some been business have Well, there of we pandemic, before acquisition great have March, for we and the effort. going to very other in be Taylor that just like It's get our with that It's the to is the And opportunities us. become potentially we've that pleased and maybe and been think

we're what think certainly and of market operators open for solid types opportunities interested we into we is in of do. what in would [ph] we folks transactions do, be looking an good part and might who solving actively there, dominant there those becoming interest of out and and some So, those we have

Vincent Caintic

you Okay, much. great. Thank very

Jeff Williams

Thank you.

Operator

you. Thank

question Janney. next Rowan with John Our from

line is now open. Your

John Rowan

Good morning.

Vickie Judy

Good morning.

John Rowan

you guys collections? a repossession how or if curious, I'm you for actually when your brought curtail had down the idea just to of brought me give much that -- percentage, stop an have -- cash I'm that -- them; you loan looking it. can

Jeff Williams

it's collections, the -- as how May, on million million that simply $X related $X normal, so we in $X stop delinquencies. so were down did Well, when and other of that to the returned far to But -- repossessing, side. was specifically and million collections, some almost far know so we optimistic term; hard stopped but collections on have as related some that much collection we're certainly we've some to about modifications pretty to back

John Rowan

mean, split collections fair last that a way the the XX% XX-XX of Is year-over-year. you that's that at cash I this this and in right. of to it to million? XX% All -- about year, the decline that repossessions in gave to Is X% half you given maybe $X say year went because from is look

Jeff Williams

might could far up, but recoveries and It's been, exact proxy way have how our be a repossessions. That year's it, last might be asset at it's have gone might charge-offs what to be under a there be true might to charge-offs still yes. not look but charge-offs that

John Rowan

Okay, and then…

Vickie Judy

gotten Because able out; to something of contact a it's can can have say. typically with know, work -- we we once customers of lot with so them, because contact get and hard to in those been we would the you in [indiscernible], have

John Rowan

lot Okay. -- per month have you do from year? versus last year May; What was the per sales numbers this what

Jeff Williams

that far to No. Other than May April though. so were -- where and where prior March years trending compared the is say

John Rowan

want sure just come to blended Okay. make make paying I'm I have for lastly, can ratio it move want Obviously, I And as to what should on then commitments? I just sure, just you down your actually the rate the up, unfunded is current debt? right.

Vickie Judy

Yes. over We're X.X LIBOR.

John Rowan

Okay.

Vickie Judy

a So right we're now. X% little just over

John Rowan

very All right. much. Thanks

Jeff Williams

Thank you.

Operator

you. Thank

Kyle Joseph next comes with from Our question Jefferies.

is open. Your line

Kyle Joseph

sorry, me. follow-up guys. Yes, from more Hey, one

looking inventory liquidate then fit reading -- sourcing to your rental lot sort looking a you'd just potentially be inventory; a not headlines that cars about wondering, of that inventory. on different we've car struggling Just surprisingly, base been and or they're kind kind would and of that acquire? is of I'm of is to

Jeff Williams

We've been not really up our market and family. moving them losing working long-term on retaining and customers from

good we're customers lower for and like going at in car, rental vendor, in working effort will, source a actively good keep family of good that are and some newer much a of believe you preferred a Car-Mart looking as the in cars good an flows to that buy and car I certainly forward, area to opportunity; that us forever. our we and So, companies source going of are if a model be

-- So, that would yes, of that's be our strategy. part

Kyle Joseph

very Thanks much. it. Got

Jeff Williams

you. Thank

Operator

closing would concludes turn now for over you. Williams this question-and-answer like Ladies Thank session. to back call remarks. gentlemen, and the to any our I Jeff

Jeff Williams

Once out again, to of our there. thanks for great your associates interest in all Car-Mart, thanks and

great great very and you. expect we great from We do ourselves. what in we we just great Thank a about potential, do, have company, today. future; listening why guys you day. great and a we're appreciate things and it, Have And excited

Operator

today's Thank participating. concludes conference gentlemen, and Ladies this you for call.

You may disconnect. now

America's Car-Mart (CRMT) 22 May 202020 Q4 Earnings call transcript