America’s Car Mart F1Q10 (Qtr End 7/31/09) Earnings Call Transcript

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2009-09-01 11:42:14.0

Tags: Car, Call Transcript, Arkansas, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, America's Car-Mart Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We will take our first question from David [Berkloff] with [Seasons] Incorporated.

David Berkloff - Seasons Incorporated

Good morning, guys and congratulations on a great quarter. I have a couple of questions. First, can you comment at all about the sales trends in August? I mean, do we see any kind of drop-off from where it was at the end of the quarter?

William H. Henderson

No, they are still solid. We are satisfied and pleased with the continuation on our sales.

David Berkloff - Seasons Incorporated

Okay. And what percentage of sales were from Arkansas?

Jeffrey A. Williams

Revenues were about 50% in Arkansas for the quarter.

David Berkloff - Seasons Incorporated

Okay. And did you see -- I mean, some of the growth, I mean, was that a lot -- I mean, was there more sales in Arkansas this quarter at all, or has that been pretty stable?

Jeffrey A. Williams

It’s been fairly stable. A lot of the revenue increase was from the smaller lots and several of those were outside of the State of Arkansas, so --

William H. Henderson

One of the good things is some across-the-board increases, really -- some of the lots that a year ago were not selling enough, a lot of things were done to improve their sales levels and they are producing so yes, across the board. That’s what is exciting about it.

David Berkloff - Seasons Incorporated

Okay. And then one more -- did you have any -- are you seeing any difficulty right now in sourcing cars, given the cash for clunkers program?

William H. Henderson

No, if anything I’d say the challenges we have of finding inventory aren’t related to that. And really we’re not -- we’ve actually increased our inventory. I think anybody that drives by any Car Mart location today, inventory looks as good as it ever has -- we’re well-stocked and we have a good mix and as Jeff discussed pretty thoroughly there, we are very pleased that we are keeping the costs about where we need to on that, so no, we’re still doing a good job there.

David Berkloff - Seasons Incorporated

Okay. Thank you very much.

Operator

We’ll take our next question from Bill Armstrong with C.L. King & Associates.

Bill Armstrong - C.L. King & Associates

Good morning. I’ll add my congratulations. Just to follow-up on that last question, so you are not seeing any impact from all these cars that are being taken out of circulation because of the cash for clunkers program? You’re not seeing an impact on supply?

 

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