America's Car-Mart, Inc. F1Q09 (Qtr End 7/31/09) Earnings Call Transcript

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2008-09-04 12:26:11.0

Tags: America's Car-Mart Inc.

Question-and-Answer Session

Operator

At this time the participants will now answer questions from the callers. I would like to reiterate that my earlier comments regarding forward-looking statements apply to both the participants' prepared remarks and to anything that may come up during the Q&A. (Operator Instructions).

Your first question comes from the line of Bill Armstrong with C.L. King & Associates.

Bill Armstrong - C.L. King & Associates

Good morning Skip, Hank and Jeff. Nice quarter.

Skip Falgout

Thank you.

Bill Armstrong - C.L. King & Associates

How much of your sales came from the promotion gear towards the stimulus rebate checks during the quarter?

Jeff Williams

It was about 15%, and it was all concentrated in May.

Bill Armstrong - C.L. King & Associates

That of units or of total sales or both?

Jeff Williams

Yes both, basically both.

Bill Armstrong - C.L. King & Associates

Got it. The collection rate was down year-over-year. I was wondering Jeff, if you could maybe, or Hank, if you could flush that out a little bit, what is going on there and why that was down?

Jeff Williams

The gas prices, we have seen recent relief on gas prices, but we feel like certainly some of our customers were struggling a little bit there at the end of the quarter, and the 30-plus number is in good shape, but the collections are down a little bit which means we had some kind of hang up there between zero and 30 on past due and some of that's just normal this time of the year. We are not shocked with it, and we did see some nice improvement for the month of August in the right direction. We were a little disappointed in overall collections for the quarter and we are working on that.

Bill Armstrong - C.L. King & Associates

Okay. Then finally this new position Director of Collections, has that been filled yet or are you searching for somebody at this point?

Hank Henderson

We have someone. They have not started with this yet. So that announcement will come a little bit latter, but we feel like we have got through our person, we are extremely excited about it. I think that that's a good addition. We talked about this a little bit and felt that a lot of you might be surprised that we did not already have this in place, but it has always been such an integral part of what everyone does and everyone is involved in. We have seen a lot of benefits over the past couple of years, as I mentioned a time or two, John Sims, our Director of Purchasing has really done an excellent job, been able to really apply best practices with all of our purchasing agents and we have seen a lot of improvements there.

 

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