Overview

• U.S. used car retailer's fiscal Q4 revenue fell 18% yr/yr on lower sales volumes

• Company posted a net loss for the quarter amid lower gross margin and higher restructuring costs

• Company warns of substantial doubt about ability to continue as a going concern due to liquidity constraints

Outlook

• Company says securing additional financing remains critical to restoring origination capacity and sales volume

• America's Car-Mart says substantial doubt exists about its ability to continue as a going concern

• Company expects capital structure refinements may improve cost of funds if additional financing is attained

Result Drivers

• LOWER INVENTORY & CAPITAL CONSTRAINTS - Co said retail units sold fell 27% due to reduced inventory levels from limited origination capital and efforts to preserve liquidity

• DEALERSHIP CONSOLIDATIONS - Store closures and consolidations contributed to lower sales volumes and some disruption in collections

• GROSS MARGIN PRESSURE - Gross profit margin declined due to lower origination volume, a higher share of wholesale sales, and fixed costs that did not scale with lower sales

Company press release: ID:nGNX4g6XCg

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Miss	$302.80 mln	$339.99 mln (2 Analysts)
Q4 Adjusted EPS	Beat	$4.04	-$0.59 (1 Analyst)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for America's CAR-MART Inc is $12.00, about 297.4% above its July 13 closing price of $3.02

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