While General Motors (NYSE: GM) and Chrysler are clinging to the life raft of government cheese and new car dealers around the country are closing shop, America's Car-Mart (NASDAQ: CRMT) is doing a pretty brisk business.The company reported its third quarter results this morning and they were pretty solid: an 8% increase in net income, a decrease in the company's debt load, and same-store sales growth of 2.9%. In a press release, CEO Hank Henderson commented that "Throughout the quarter we carried a slightly larger percentage of higher-cost vehicles in an effort to better attract those folks who are now 'buy-here-pay-here' customers as a result of recent credit tightening. We were able to maintain the positive sales momentum that began well over a year ago. In fact, for the nine-month period, unit sales are up strongly at 7.7%, revenues are up 11.6% and same store revenue growth is up 11.2%."
The company of course can't help bragging a little that in spite of the recession and the "unprecedented negative media coverage and sentiment regarding our country's economic health", they have still posted great results.
The company's strong growth has been driven by booming used car sales as new car sales hit the skids -- and increased demand for used cars that's making them more expensive than they were a year ago.
The Bentonville- based company has a focus on efficiency and returns that has been likened to its neighbor Wal-Mart Stores Inc. (NYSE: WMT), and both are holding up pretty well right now.
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