CRMT - Earnings call transcript Q4 2021 | America's Car-Mart, Inc.

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Operator

Good morning, everyone. Thank you for holding, and welcome to America's Car-Mart Fourth Quarter Fiscal 2021 Conference Call. Topic of this call will be the earnings and operating results for the company's fourth quarter and full fiscal year 2021.

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.

and XX-K Annual for information, please I'd fiscal the see company's this X the X-K are Report and information on XX, the to Jeff Vickie and more like call company's Form furnished to Financial over April current Officer, Williams, regarding forward-looking ended the or Executive Officer; President For Judy, And Officer. to Participating XX-Q. its filed Forms Chief on and the turn the now, call Williams. Commission Jeff reports of year Part morning and company's Chief with the XXXX Exchange Executive on Securities Chief quarterly

Jeff Williams

Okay, morning. well, us this joining you for thank

to proud like needs of will on road our transportation from and the can scale to benefits grow our opportunities leverage, business stress other customers keep continuing to and get us and Car-Mart exceed by are various business local the only in and customer allowing customer expectations overtime. and no reduce points can we There we're improving journey. believe are better and company that America's related the many we the investments at the which our see initiatives and pleased to experience are work aimed We touch

offering advantages our scale personalized market. local with combined level and unique our in give us ground technology Our

decentralized growing number that performed the allow look customer. serve. at service associates corporate and non-core decision-making focus This the field field efficiently of could our will ground the the losing will continue we with to benefits and level to to centralize of on We close be to support without our more customers functions in

in management Our us a training customer ability move collections. grow areas and to very areas give continue sales experience, will allowing all us are to investments procurement we utilize collections and consumer-facing and that's inventory making additional to company the the in area at we recruiting, very for our our data good advantage company a share We're in efforts of from digital progress high as the and our opportunities technology retention, good experiences to have market a move forward. expectation and to

opportunities and give bricks strength. community-based Our mortar our combined our digital model with real presence

to be to over in continue business us invest will allow to our We leader the the market long-term.

experience our ensure corporate consumers directly great team Our customers our our and is with with progress great dealership customer working have involved and personnel consistently making is experiences. to

a the continue of efforts. bigger overall becoming which to our will look are partnerships We industry at part

strong are more an need profits and reinvest our have do serve for over current and to we we future. Customers obligation what an obligation Our to have profits these time. customers current we

out Our and strong. response been and has customer contracts are very positive rolling new service very companywide the

associates [ph] new will changes, management inventory with on key Again these our terms, continue and include We're of proud progress. playing to to team see each offering support business our area our products the oil a a efforts and significant have put lead are Our to our can of XXXX our We roadside benefits optimistic efforts be because conditions be our working and role the their started are was strong associates the that the to work that industry under business. together nimble purpose. our dedication uncertain place many we're in assistance how our difficult on progress other, we extremely partnerships difficult, of our keeping May and our This but from pledge. to in our and occasion quality the road very fiscal and of communities. all-in creativity great hours making transformation. show their customers proud rise last we that extended We're and and which resourcefulness the hard of the associates. continued in dedication associates X, this year, We've company never to and inventory to wavering you very

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

Vickie Judy

good and Hello morning.

million by increase retail $XXX XX.X%. sold, average XX.X% in total units interest increased resulting income price from retail increased increase in XX.X%, revenue Our up a to XX.X% sales a and

from stores in Revenues five up up years to was than XX-year million. were stores XX.X%. five- category to XX of over Our for XX% age years revenues revenues category same-store less and category the up age stores in of in the $XX XX%, about were the up were

an store our tirelessly quarter our Our investments fourth serve exceptional productivity preferred of the and associates company across past possible to processes, vendor to the inventory average service due units per XX.X worked into including This was per of the customers our and procurement also throughout sold improvements this year translated relationships. which our in month. with partner

higher retail combined pricing. with to up was quantities inventory higher and Our due

from end, a XX or years low and our dealerships the were XX old, zero As from years April five to the XX reminder, were XX, At years inventory to old at older. due XX% to pandemic levels quarter were the XX XX XX% old or remaining environment. or XXXX five of were

units quarter to XX.X year was XX.X per the the store for per productivity sequential month prior sold XX.X compared for quarter. and overall Our

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

from The $X,XXX XX.X% to up improve term compared sequentially. XX finance prior of was quarter. the the XX.X to of were the age percentages XX.X% year percentage tax X.X% of time or were XX% the affordability the by percentage the Our for refunds, stimulus and and quarter. to term quarter unemployment. contract for impacted the These customers mileage CARES ensure was in price the the compared payment compared up continues at months as well. The average positively The to average as in down compared receivables fourth prior X.X% Collections Collection with quarter. increases payments month vehicle and year to year year increases. for necessary prior originating terms average a months as XX.X price increase X.X was are quality term our retail to sales prior for selling

most We balancing affordability, outcomes. term putting customer continue of are to mindful vehicle link be a quality better will with for we the this but higher successful and believe

retail Our unit by The prior the portfolio average to higher XX.X%. costs. end lower margin decreasing increase and $X,XXX, and age the supply fourth increased gross at from reduction receivables gross modifications per trucks. as decreased lower gross prices The average pickup type margin primarily to due over approximately weighted the for was increasing weighted year profit price portfolio also weighted selling relatively quarter The mix prior interest lower or $XXX the are slightly to the the XX.X% partially from was the $X.X percentages, prior prior quarter, retail tight quarter car quarter. unit increase year the of rate increases repair gross X.X sales improved year the sequential SUV of in XX.X% to due quarter entire margin higher the of finance on profit average market months and million the average the in but Gross term quarter. the vehicles for quarter the prices. in XX.X by to had percentage and compared of compared The approximately including results year $XXX gross increased per the to average XX.X% car the receivables compared unit prior sales prior to wholesale compared million down X.X income strong was XX.X% was the percentages in of XX.X this our Interest resulted to months from demand offset due sold also from for XX.X%, and used margin the profit contract year the for months. increase. in and quarter margins lower high at a all flat at finance The dollars selling at XX.X% to

This a XX.X% compared but less quarter. percentage of of of a prior Our excluding SG&A customers and the the as SG&A important metric sales to XX.X% part for was efforts for provision the compared for for integrated was losses as of of down up to the credit $X.X our XX.X% cost the focused the large total on revenues changes. and prior the finance sales year quarter impact XX.X% quarter keeping on prior allowance for million to are sales percentage year year a business our to road. compared is as quarter,

experience Our commissions net investments our procurement higher increased our because invest primarily focused customer combined we the team, continue as and build be with in to income. team payroll of

new 'XX as our Our new will invest customer as We'll also relationship to enhance customer be service image tag platforms and marketing digital continue new and went and brand our experience system to we additional in ERP investing promote line continue we forward. contracts. our with improve move to May and live technology the our of module of in our we

leverage market As over always, we will our continue the investments expectation share with these growth is that long-term. to

serving an last now are over to this customers at year compared X,XXX additional time improved level. service We

average and The down CARES fourth repossessed We approximately in to our in prior rates the X.X% X.X% X/XX/'XX accounts as XX.X% plus ended stimulus quarter. were a XX past this the from prior improvement these For accounts due quarter increased with along X.X% the payments at challenging for percentage the was rates Recovery decrease units XX.X% in and the contributed finance charge-offs the the benefits quarter net compared X.X% to our also of prior in year customers compared with for Act to certainly quarter X.X% fourth help year of quarter, time. for improvements to net saw contributed unemployment to receivables year delinquent current through quarter. pre-pandemic. was them our down and recovery working efforts charge-offs, enhanced from

fourth outlook million revenue. our earnings of these XX.X% $XX.X from lowered net XX% quarter fourth excluding earnings to deferred $X.XX provision allowance effective and our This XX.X% losses. for diluted This change loss as The fiscal decrease share year impact and $XXX,XXX for a our was diluted share-based respectively. the tax the for allowance credit the compared the of income Income allowance resulted in share current included per year the benefit credit percentage the the projected improved result per income receivables in increase 'XX. of of expense an a compensation quarter. in pre-tax quarter, decrease related results for losses was and a resulting prior rate $X.XX, for to tax have As XX.X% of we the 'XX for finance tax prior $XXX,XXX losses quarter to of and overall quarter of credit for the delinquencies,

expect our approximately from effective cash revolving benefits tax $XX exercises. have be availability tax facilities. credit going in end, and prior approximately our quarter to We under forward in rate additional we XX% total million approximately $XXX At excess stock debt base million, was option our million any $X to

last relates cash time XX.X% increase an current net ratio our time last million. the year. this compared receivables year, Our finance compared to to investment debt This percentage $XX.X additional this is XX.X% to to increase of in inventory at

fiscal in in and million in We repurchased with year, million, funded stock debt $XX.X by of million the only receivables. increased $XX million a $XXX.X million increase capital $XXX.X of cash. During $XX.X we of expenditures, total added a our net $X common inventory million

market customers our more We share. well serve to are positioned and grow

I'll it Jeff. to turn back Now,

Jeff Williams

Okay. Vicki. you, Well, thank

the As see with to do supply inflation we and some issues inventory, inventory. expect related continuing

into been and inventory processes Prices increasing demand we done higher our but has management product team be like, are consumer for inventory than as our months. Overall, very good to nice our we will going work offering. improve and is we continue to forward. Our nimble to summer in meet the would certainly shape have the ensure go have we

share move with As we We're per are the in volumes more pick we the to without productivity customers market stimulus serving growth, up dealership. an as quarter pleased for environment grow looking towards and money. our

can that over the our growth we've We year average a improvements Our primary more productivity believe of X,XXX existing and per of or should source majority dealership is over previously XXX few dealerships. with the years stated ended as do next customers and time. dealerships from we supporting our as customers be

we as changes substantial of do always the the changes and and we we've do. and look of as year right can and also for but urgency that been we pushing areas. forward. go stores the in key change company are The early hard a and very the quicken new been with a innings believe priorities proud are that to and we to we at all must and lot ensure the with business open that continue to able making are opportunities. acquisition have magnitude have We the again, in are in our of We some Once improve rate the we are will field we and the the work expect make of these pace believe sense decentralized we be initiatives digested we of pace to

We opportunities we and for take of on we're it the in the questions. of your enthusiastically great we you, continue again, at future. up embrace and who associates levels, front for and they the will all our Operator? magnitude open Thank more now changes have us have recognize to responsibilities making

Operator

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

John Murphy

and there end but first in of for question, what think going use -- talk you're to activity, this upside you the belief opportunities actually have I just mid-consumer after over online how you what thanks consumer, what retail like means and customer about the lower the so sort I and and higher how just the can Jeff, tools I'm facing for lot everybody, guess think the we digital the morning, more a has subprime is? a after where there here. going detail Good you're time actually community propensity that seeing are, them been higher all it a a is curious the to opportunity the digital company? is And it

Jeff Williams

online online and the see believe our come drive we to from aspect push going have a that in do Yes, the home that move forward that loan online. we're to inventory in those be finish digital they'll and dealership. processes John, and we more we're and we starting for area. lot customers go showing online resources from consumer -- making the out car credit the as curbside place, of that anything digital the is system, presence we're going transaction transaction. feel on that our other loan as origination as to and any and good application we anybody our bricks that we when forward. car But more the that the A The to of with and system efforts. improve working consumers combine side we're in some going test still transaction at progress into of invest process, plan our come we're and finish in are like dealership, origination significant things folks deliveries to there as more making when we of sure we to a and And is We long-term a effort lot deliveries have of we're of will from mortar want see dealership you to talent good standpoint transaction, as choose as time capabilities the

have we're used offering to to going we base very process the our subprime at needs and about for about all our opportunities deep from an and making the user-friendly and as So, it's of the transaction and going a us, are savvy standpoint, meet and and consumer intuitive day, mentioned, being the as for there, consumer out you they end to we're of online the online the consumer we're excited anybody and presence and seamless dealing good will, there. and as very very those subprime and

Vickie Judy

repair just or that's to implemented a want we the that, John, there'll or will the And the might module May, also again continued customer be credit. or in whether and or customer I it's post-sale the of line to make it or maybe care to way about into may be type with relationship calling the or that a got pre-sale a corporately post-sale line with a regarding going opportunity communicate question communication just a but this for add -- call to dealership, here they they pre-sale inventory the question whether then payment or text have phone the a that's customer issue of online that issue

So customer much better all I to think that going is combined digital give experience. a of

John Murphy

I'd And are are going going online that days, just time? mean that early see do it's that delivery a very transactions imagine in-home over almost you and follow-up, and but I where have you completely there any

Jeff Williams

to to to has big been that did our going a business. a the to home a There consumer is and car, demand but base toward car going do online we part I want able delivered come delivery that meet business require part and to when set If of of to but to for have our it the to ready, do and a and meet little home, to requirement, still big significant working been be is to that something pandemic, our things piece area. -- that will of in the us not becomes at consumers a a all the yet has are but we're consumer this our want, base quite bit if have going XXX% If be we're up pushing real system hasn't of requirement. be we're during able we're It handholding and that. curbside drive going most from in but significant We point. demand consumers been our for pickup that bit not and direction that a

John Murphy

but increase from maybe propensity far are drivers shown a then what a key per on second I even over time. question, depending that's are productivity customers talking right this And time, helpful. supporting or the more I you're or goes to you That's more big you've about a dealership doubling over essentially than of that, mean step. how when X,XXX mean, now a that, the where that's

mean I key there years, tools get and time thought of and a process three the So what we're talking amount to the mean, I are reasonable what years, years, target? five on that is what's XX

Jeff Williams

the elsewhere than the and support and that more for customers stay a is very them they and in repeat competitive a have then division long-term discovered that cost used no can customers It making cost offering that we've they all the congratulated dealerships is better goal. in car. into mid car to consumer wave there supply our kind transaction, We customers. an but of went business, and better timeline, the supply experience, down new market. a after family. a their all customer the we've credit as we costs improving better these is we're the car Historically, We don't to street in to given improving sale, get give outstanding of transaction, efforts exact believe increasing the reason we we from a a can of the the very offer sure to putting can We best standpoint lose that good the a maybe

over experience, to base investment we a life, focusing extremely know standpoint can put that from repeat significantly more serve payments repeat in relating if an all-in lot the to the sheet so believe dealership their profit improving can we with customer that's of and standpoint. important. thing the pop involved and in we maintenance have keeping peace our at the those our we can much So car, point know the sense, cause we that standpoint, and these attractive business customers ease staff, on and believe on ownership and really as offer, we makes to combined and certainly of we the we with do our markets focused a these per a that we capital other car that and business, and price on customer for the that we on issues of true volume We the one investing give focusing us quality areas stress the customer price product focusing improving the that number at customers car we a fact to that's mind, that minds very the experience, we improving balance stress we the car car markets, customers know is up and point serve that can then be time, of have markets, know us already into risk for existing a -- push the

sheet time, specific are And feel out to is balance when of out our is timeline out sheet business customers. the on and like so to the served it's figure dealership. efforts do that, and expanding go how believe a that served and number the we over and increase are number of us customers communities balance when have this serving is consumers strong how support market we Car-Mart Car-Mart something our markets don't those and up more per our do going there there to increase to certainly better We is by there customers to but -- and

excited we're we the we the leverage have structure have. very already So about to opportunities

John Murphy

increasing cases, lastly, that can inventory, just mean means, sounds in increase you And but mentioned then, sales. inventory improving like you it so the also management, some I

should lot does the going market exactly improving are flow management, it's going very management, be you we difficult not What on are inventory, the where it's of right you in on a thinking what of? because if there's key obviously what targets on, inventory tight. is inventory mean So that now will, and

Jeff Williams

I vendor like efforts. areas, preferred a -- mentioned of couple our it's Well,

go transaction second high with geographically. cars, metal interest ready to in going expand market, do partnering with years, already but as getting some area entrepreneurial These and point. markets the is in very not talented but forward, they for lower talented take folks serve. recon. the are off price a our steady a long-term Historically, We some retail for wholesalers really very cars are very maybe our to wholesale mechanically markets as have metal good the at and we we These buying network we've into are have another in that reconditioning, we repairing sell folks at system price in folks We to is recon done them supply our are to known ready our company and to and of an look they're their giving to lower have we've are flow the a ability with and good to into but units tight a sound a us, somebody be at and so to that's points. solid who cars at realize wholesale quality in very a of have spots units work in us and that sell within good piece businesses grow third the is and little partnering will continuing turn of becomes us effort growing supply work steady they interested with to geographically

looking we dispersed also So processes. a reconditioning the auction terms and works looking auction advantage of already in things. a recon good cars at We're of of of at the end at lot outside with purchases take of going past. recon a maybe cars have on we of nationwide We're the side the to basis have that at more areas different buying on in

in general our local XXX have that ability We local also a to of managers from on eye or close have keep the lot power a model supply opportunities.

quarter a that corporate we We've here a opportunities. local with you and pick have lot lot of So, where why going think with months model have sale the of do struggling I ending GM's might talented still and through advantage the folks unique come the have got the dealership. and sales for that the be some additional that's to fourth combine having you're a there cars fact when in of summer we with the do place cherry into available us seeing ability and take the pretty efforts out products on quarter with inventory availability other

key there price have We're cars nimble aspects pretty and another efforts. a didn't in to also logistics our just areas that we fair and some from buying we're of car miles. higher that a may rental that these historically procurement all support the corporatizing amount for be So with we're newer our option point a will offering offer higher lower us little end because left may consumers chain

some we're also of forward we're we're what a gives our very but efforts, optimism seeing of innings in mix go that's we're early So far, some side optimistic part with the we of so partnerships something that of and direction about as these and lot logistics, very and forming the procurement, the us for going. the inventory management

John Murphy

spreading to so a Jeff, fair to is just it of vehicle you you're lower I'm vehicle younger that end or older kind Is can -- and bit but sorry, going seems vehicles, you up spreading like customer what statement and a a characterization? dispersion of market a little the offering that of kind market the are you're that a little down bit. fair

Jeff Williams

to a can think the draw section that's of expense don't provide want points. either. the company price I that We the at all middle

that a bit of not want about the have for talking shortage number having upside low creative So cars, the the making the end just it middle to the and we offerings now. with we're we sure we're and little don't supply situation way been have section more on is spending middle, years of a we deemphasizing for the we're lose

points any any in just sure is come got to point, our price towns efforts offering that consumer and and and this us can we've price to good a for -- Car-Mart all areas. So all in a our make all

John Murphy

you Thank Great. very much.

Jeff Williams

Thank you.

Operator

Your next line Joseph Jefferies. the of question with from comes Kyle

Kyle Joseph

Jeff, on for Hey. quarter good a and year matter. congratulations really, really Good Vickie, that morning

Jeff Williams

you, Thank Kyle.

Vickie Judy

you. Thank

Kyle Joseph

tax refunds trended with just a us to how and level numbers you'd be get Obviously, sales month, sense the a in sense, a for lot quarter there going February to sales need high give by April? trended if stimulus, into is even just and are wanted March on how doesn't but in versus

Jeff Williams

little had it more I but was March There's maybe really this months. We year. not a February solid three bit guess

Sorry, a was finish little bit the we but March of some in stimulus was strong, were tax a refunds bit the February maybe had in April. late, March, nice in more a little

and all, each in all month the quarter good a it So was good. was within quarter

Kyle Joseph

used sense offsetting -- prices everyone can the monthly trending you elevated but a payment the been the of for how of And us that recognized and give year? portion kind knows are over with average extension, car has last a on Yes. then, term you're

Jeff Williams

Yes.

the the average And, increased the don't with we certainly but an eye and quality -- transaction in applicant, year average We're seen increase offering. a sales payment keep the affordability overall. prices increase amount of on probably have quality close on the the the the in we're up, with our payment. of we $XX know, I the the car Our financed, of the $XX, and for

We are seeing higher quality customer.

increases some certainly price strong, seeing So the in but increases, affordability we these is with are monthly payments. still

Kyle Joseph

price can question makes I for from is levels, that how last that And know units us that comparing of versus to it, growth year-over-year. inventory sense. pandemic give appreciation? actual sense talked me, you Got then much about good you a

Jeff Williams

Yes.

XX% about close this were of this more We're April from side, last are retail hand XX% end the to the -- carrying units at on year time at looking we units year. last about the Just than year. up

'XX, end pandemic Some was XX% from up year. where to to the they of point our that really squeezing about are inventory our point, of the of and from that units started this reaction the but April at

Kyle Joseph

Got Appreciate my all questions. it. of Thanks it. for answering

Jeff Williams

you, Thank Kyle.

Operator

the comes Your of question with Caintic line from next Vincent Stephens.

Vincent Caintic

as XX.X, Good my I to is fiscal going for strongest, the fourth think we at strong thanks. that maybe And know that rate quarter we're that number XXXX? down the should is or be modeling run fiscal but temper forward we when about good quick productivity a morning. guess Hey, -- I a Thanks taking cars questions. so had really, one, first really month. per store you one sold a XX.X

Jeff Williams

of and that increase specific a but a to moving Well, we're company making company improve our collect. focusing to don't XX-year-old number, is lot a collection a objective investment from of on productivity. We can have and a sales efforts lot

the as do And all productivity accounts go and certainly do Vickie on focused improving these all we're are have we with Don't the continue forward. bump investments for a very we as growing forward. mentioned, we in to growing so line as over productivity effort. go specific sales that leverage you. We and and we up and time expect making number costs, customer are to to efforts But expect

Vickie Judy

it obviously How our due our definitely how have impact is business in of improvements much on some been would the of making was good a it definitely stimulus of that. fuzzy, of business sure. how things regular for much in was There but in much to it time, that tax was stimulus, lot just we're going

Vincent Caintic

they're like so investments, Right, understood. taking you. really Yes, I which and Thank that's how hold that is of your traction, trying much sound guess, great. out getting parse to

Jeff Williams

that you anything a do XX and over month XX but a anyone be we're per rate. we an sales to over things expect that dealership, would acceptable time. we think have not consider sales as that sales significantly productivity dealership doing, when long-term time, don't company is think Vincent, great timeline, month that per again are per the is about to improve I we doing per established

more forward. there high. be productive allow as is investments there XX and is lot we're we making us productivity not So per a of certainly go out month very should the sales to

Vincent Caintic

color. Thank Great, towards dealerships, really X,XXX And that. per helpful that customers that's you. your appreciate points very

car kind an of usually some to actually going XXXX, an way very it environment of strong results for rest here, opportunity this of prices you. be drag the that something you? might car Thank like about Second sort higher question, as used been think being in prices and the positive Car-Mart it's expect that the results. of used been increasing it's same used have really point still through even higher I be seems is or it positive we you've has that prices very calendar really else or is year a at opportune car that should wondering and with does seem sort a had but if as being performance your been equal, impressive or environment for I'm negative all same we're like

Jeff Williams

in not adjust, are next participate and up really not to that business prices, to to make to that how going up the are need hard or and be the enough question be it's set going in. it like to going months car XX, of they're aspect going some prices if set we think We they know will go. decisions don't nimble prices we it's out. And conditions out go prices we XX a certainly to be smart we're we Well, the to but have in you changes commodity certain to as where going the can going expect previous next, again much to commodity the for we're down, year We have is to there half. and adjust to say, but believe a

that and our efforts the of environment as the and this advantage way to was situations big take to low couple the fund in one at over fact us and this of thrive some sheet increasing that the might to not more us the to benefit ability cost to business, an and be situation share much, survive entry up where our expensive up of prosper operate allows is and building pick get the we're a balance have up. cost is business our they does grow would So, it in folks like participate financial and in car of ways; short-term. the in cost of It come better capital, cost inventory prices least from much our and in with leverage a than market

So, this can can need because adjust anyone. keep customers control fully can keep in participating to cars on that aspect better to there We commodity we're we the on and successful. going and control, we to a our going in nimble their to things market. markets but business remain be than to We're is them believe we we and the the road,

participate the of look used we fully prices, case a -- need car fully like off there to to we'd it's leveling out and but that And like anytime see so certainly participating and going be doesn't to soon. be

Vincent Caintic

very Yes impressive it's to the that prices. great. along been car you've able Thanks Okay, very pass been I much. appreciate it.

Jeff Williams

you. Thank

Operator

comes Your Rowan of Instructions] the Janney. from with question line next [Operator John

John Rowan

guys. morning, Good

Jeff Williams

Good morning.

Vickie Judy

Good morning.

John Rowan

me line? down sales any question. the mentioned the the you service and different whether can actually there related not Thank remind it be that the Quick to expense for you is That'll in you -- in function related to the service higher me. gross price, there or bit, Obviously, profit a came the maybe obviously if little contracts expense contracts

Vickie Judy

category. No, it would be in same that

cost in not any really year contracts to across states new now. about you started have a related additional the We them rolling out if those will, most piloting been of seen se, for we've just and service yet. locations per in February our few a We

So of minimal the now. contracts very the cost service right is aspect new

John Rowan

year. But could forward, going it next margin profit gross impact

Vickie Judy

and then has the is in historically. once our costs it Our service fully remain revenue the the fully as that will baked expectation been in, is contracts profit same baked the on gross are

John Rowan

me. you. That's thank it Okay, from

Jeff Williams

you. Thank

Operator

no have time. at further this You questions

the So any I will call for over back closing remarks. turn

Jeff Williams

you been We for to of again, and proud social into listening our care better. that great tough our stuck go our an we're of our taking for our through once this unrest standpoint with better. going the making appreciate and what associates in sure pandemic morning. and taking and and communities We our company proud the and year call thank really company, associate together, and our there interest where team from and customers Car-Mart. you excited your group we associates care but out really of Well, have has making with are our other Okay. Thank future pretty dedication our done, each and we're a Americas to we've we're more even of very very of about all their appreciate

So, thank day. great you a and have

Operator

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

America's Car-Mart (CRMT) 25 May 212021 Q4 Earnings call transcript