Q4 2020 Earnings Call
Thank you for holding and welcome to Americas car March 4th quarter fiscal 2020 conference call.
Because of this call will be the earnings and operating results for the company's fourth quarter for fiscal 2020 before we begin I would like to remind everyone.
This call is being recorded it will be available for replay for the next 30 days.
Dial in number and access information are included in last Night's press release.
Which can be found on American car Mart website at Www Dot car, Hi, Finmart Dot com.
As you all know somewhat management's comments today may include forward looking statements, which inherently involve risks and uncertainties that could cause actual results to differ materially from management's president view.
Statements are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
The company cannot guarantee the accuracy of any forecast or estimate.
Nor does it undertake any obligation to update such forward looking statements.
For more information regarding forward looking information. Please see part one of the company's annual report on form 10-K for the fiscal year ended April Thirtyth 2019, and its current and quarterly reports furnished to or filed with Securities Exchange Commission on forms 8-K and 10-Q.
Participating on the call. This morning, our Jeff Williams, the company's President and Chief Executive Officer, and Vicki duty Chief Financial Officer.
Now I'd like to turn the call over to the company's Chief Executive Officer, Jeff Williams.
Okay, well. Thank you for joining us this morning, and thank you for your interest in Americas car Mart.
With a pandemic hitting us in mid March we quickly set our priorities and went to work.
Priority number one was is and always will be the health and safety our associates, our customers and our communities.
We are focused on trying to go over and above federal state and local guidelines.
Which were literally changing by the hour for several weeks.
Even though we most certainly consider what we do to be essential it took several weeks to adjust to the various operating restrictions.
Late at the minimizing the spread of the Corona virus.
As we determined that we could provide a safe and healthy working environment.
Our next priority.
Protecting our balance sheet.
While trying to get clarity on the recipient.
The magnitude and the timing of any stimulus funds and then predict consumer behavior. When those funds actually reached talking [laughter], we're very confident our business model and in our future.
We really focused on getting through this without damaging our balance sheet. So that we could really be in a good spot when things returned to normal.
The significant disruptions in the supply chain and projected decreases in consumer demand, we focused on the opportunity to reset our inventory.
It's a potential the purchase better cars for the same or less money and then pass that value onto our customers.
Our vehicle supply chain remains somewhat stress.
In consumer demand for our offering has been strong. So we will continue to strengthen our procurement processes as we move forward.
Currently light in some spots with our inventory, but expect good progress.
With the initiatives that we started prior to the pandemic.
We are actually starting this new fiscal year with about the same inventory investment that we had the beginning fiscal year 20.
Oh for almost 40 years now we've been working with credit challenge customers by putting them in good mechanically sound vehicles.
And then working with them through life challenges after the sale.
Our captive lending structure combined with the character lending nature of our business allows us the opportunity to form deep long lasting personal relationships with our customers.
We give our customers peace of mind as related to their local transportation needs by keeping them on the road.
We take the stress out of one area of their life and for that they place great value on what we offer the market.
It is a big responsibility on our shoulders to hold up our into that bargain, but that is our purpose our vision and that is what we've dedicated our lives to here at Americas Cormark.
We have successfully navigated through many challenges over the years and the pandemic has given us one more opportunity to prove how valuable we are in difficult times.
We have always worked with one customer at a time because each situation is different and that will always be our approach.
The pandemic has presented an opportunity to us.
Really walk the walk.
And we're very proud of how our team has responded.
Now I will turn it over to Vicki to go over the numbers Vicki.
Well good morning, everyone. Thank you Jeff.
We ended the quarter with the revenue increase of 10.6% up to 196 million. These were record revenues just about half of the quarter being impacted on the kind of it not team pandemic.
We actually had a really great start to the quarter and a successful <unk> tax time prior to the startup dependent.
The increase revenues resulted from a 10.1% increase in sales.
Volumes were up 1.7% combined with a 9.8% average selling price increase.
And a 14.9% increase in interest income.
Same store revenues were up 8.6%.
Revenues from stores in the over 10 years of age category was up 7%.
Doors in the five to 10 year category was up 10% and revenues for stores in the less than five years of age category was up about 49% to 16 million.
At quarter end, 17, or 12% of our dealerships were from zero to five years old.
43, or 29% more from five to 10 years old.
The remaining 87 being 10 years old or older. Our overall productivity was 30.2 units for a lot carmont compared to 30.3 for the prior quarter.
Our 10 year plus slot produced 32.7 units sold her lot per month.
Compared to 32.8 for the prior year quarter lots in the five to 10 year category produced 28.1, compared to 28.3 and a lot less than five years of age had productivity of 23.1 compared to 21.8 for the fourth quarter last year.
Our downpayment percentage was 7.8 per cent compared to 8.2% and collections as a percentage of average finance receivables was 15% compared to 16% for the prior year comparable quarter.
The extension and term primarily due to the increasing average selling price accounted for approximately 40% of the decline in collections with the remaining primarily attributable to the increased delinquencies and modifications as a result that cobot 19.
The average originating term was 31.8 months compared to 29.8 for the prior year quarter and also up from 30.8 month sequentially.
The average selling price was up 1100 and $3 with a corresponding to month increase in the term.
Our weighted average contract term for the entire portfolio, including modifications was at 33.3 months compared to 32.1 for the prior year <unk>.
The weighted average age of the portfolio was basically flat at nine months.
Interest income increased 3.1 million or 14.9% compared to the prior year quarter, primarily due to the 73.6 million increase in average finance receivables at a 13.6 increase.
The weighted average interest rate for all finance receivables at the ended the quarter was approximately 16.4% flat from the prior year quarter.
Gross profit per retail unit sold increased $377 to 50, 232 or 7.8% compared to the prior year fourth quarter.
The gross profit percentage was 40.5 per cent compared to 40.7 for the prior year quarter and up slightly on the sequential quarter at 40.3%.
The increased average selling price.
Resulting in lower gross margin percentages that higher gross margin dollars as our gross margin percentages are lower at a higher selling price.
The majority of the vehicle sold during the quarter were purchased prior to the beginning of the pandemic.
However, with lower vehicle purchase process in the market since the pandemic, we feel we will be able to purchase a slightly newer vehicle with fewer miles for approximately the same purchase price, which we hope will eventually result in more of a leveling off of the average selling price.
We did see a slight increase in the number of S.G. These sold in this quarter over the prior year quarter as well.
Well, we did hold off on inventory purchases for a period of time to preserve cash flow and until we had some clarity on restrictions.
Sales volumes during the pandemic, we do expect to have some good opportunities moving forward to purchase quality vehicles at a better value.
As DNA for the quarter was up 2.3 million compared to the prior year quarter at 17.7% of sales compared to 18%.
The increased band over the prior quarters, primarily due to payroll costs for additional associate count as well as investments and pay benefits and training.
As a reaction to cope with 19, we did significantly reduce expenses, including part time and hourly payroll as well as other non associate related expenses.
We were expecting even better leveraging for the quarter prior to the disruption related to the pandemic.
The health and safety of our associates and customers was priority. However, we also focused on maintaining workforce engagement with no disruption to associate benefit. So that we can adjust quickly as business returns to normal.
For the current quarter net charge offs as a percentage of average finance receivables with 5.6%.
Down from 6.4% and the prior year fourth quarter.
For the safety and concern of our customers and our associates, we did suspend personal visits and repossession efforts for a period of time during the pandemic.
We're working diligently to get in contact with customers and help them through this process. It's possible. We've started back our personal visits and certain repossession activities recently and we've also begun testing additional outreach with our customers. During these changing time with some interactive texting and email.
Again, all in an effort to work through issues and keep customers in their vehicles.
Co bid 19 has impacted many of our customers and resulted in increase past due the Mt with 30, plus past due at 6.2 per cent compared to 2.9% in the prior year fourth quarter.
As a result, we did increase our allowance for credit losses from 24.5% to 26.5%, which amounted to an 11.7 million pre tax charge to the provision in the fourth quarter.
Our company has been built on helping customers through difficult times and our associates are demonstrating their dedication to this mission.
The effective tax rate was 15% for the fourth quarter fiscal 20 compared to 20.5% for the prior year quarter income tax expense included an income tax benefit of 160000, and 434000 related to share based compensation for the current quarter.
And the prior year quarter, respectively.
We expect our base effective tax rate to be approximately 23.5% going forward prior to many excess tax benefits from stock option exercises.
We continue to have strong cash flows and a solid balance sheet at quarter end, our told that was approximately 216 million.
We had 60 million in cash.
And over 23 million and additional availability under our revolving credit facilities.
Our current debt net of cash to finance receivables ratio is 25.1 per cent compared to 27.8% at this time last year.
For the year, we added 77.9 million and finance receivables, we repurchased $16 million of our common stock, we funded five and a half million a net capital expenditures for a total spend of 99.4 million with only a 4.8 million increase in debt net of cash.
Thank you now I'll turn it back to Jeff.
Thank you Vicki.
I'm very proud of our team.
Im very proud of the fact that our results have been sold in our balance sheet has remained extremely strong which is very impressive in these times.
We are optimistic about our place in the world and the future of our company.
What we do is unique.
We will continue to invest in our people recruiting training in retaining.
And look to continue to grow market share from our current locations.
We believe that a large percentage of our existing dealerships could support 1000 or more customers overtime.
We will also continue to open new dealerships.
Currently have Cabot, Arkansas, and Chattanooga, Tennessee and process and those should open this first quarter.
And we also have new dealership openings scheduled.
For a later in the year for Edmund and Norman Oklahoma.
We also believe that we will have some more opportunities to expand our footprint with strategic acquisitions.
For good operators with solid market positions, who run Greg businesses.
I'd like to folks at Taylor Motors, our recent acquisition.
This is a tough business.
Were tough people.
And our business model is strong.
We believe we have an obligation to serve more customers at the highest level, we will always push ourselves to do more.
To be able to continue to service customers during the crisis.
We were able to develop and implement curbside and home delivery processes.
We will continue to refine our efforts.
As market demand dictates.
Thank you to all of our Great Associates, we have looked out for each other and our customers and help make our communities better.
We've done an outstanding work in following our cleaning and social distancing protocols.
At the same time fulfilling our essential purpose in our communities.
Grown closer together as a team and we've grown closer together with our customers.
Now we will open it up for questions operator.
[noise] at this time, the participants will now answer questions from the callers.
I'd like to reiterate the my earlier comments regarding forward looking statements apply both to the participants prepared remarks.
Into anything that may come up during the Q anyway.
Ladies and gentleman asked the question you will need to press star one on your telephone.
Withdraw your question, Chris the pound key please standby what we can Paul the Q on a roster.
Our first question comes from John Murphy with Bank of America. Your line is no.
Hi, good morning, everybody and it's great to hear for you.
Just wanted to start with the first question Jeff in your comments on demand being relatively strong as supply has been relatively tight I mean I'm. Just curious if you can comments what you mean by this that demands Grantham you do you think you had more vehicles in inventory.
Maybe in the quarter or maybe in the coming quarters.
Could deliver a lot more in that you're just a bit supply constrained relative to what appears to be good demand. It just seems curious given some of your your your customers made been that the most impacted by this crisis. Unfortunately.
I'm just curious what you mean by that.
Well.
You know when things just came to a hold.
We weren't sure what demand would be and we were looking to the larger used car market as an indicator what might be happening in our section.
And some of the volume decreases of 50 60, 70%.
Oh, we initially thought we would be down by quite a bit and consumer demand would be down.
And while we were down in the latter part of the quarter, we weren't down nearly as much as the overall market.
And so as far as is losing sales I don't know that we lost any sales during the quarter.
Because of inventory levels.
We did in the quarter little light and certain spots.
But the supply constraint to certainly is playing into this too I.
I think a lot of auctions, just just shut down one afternoon.
And and so there's quite a mass to get that started back up and cars flowing again.
Vendors in the repair shops, and there was just a big disruption in the supply of cars, but I wouldn't say that had a huge effect.
During the quarter I do think we would have sold more cars in.
In March and April certainly if not for the pandemic, but the supply of cars I think.
In of itself.
Wasn't the reason for.
For the decrease sales we could have we could have sold more cars without the pandemic.
Coming in inventory with their inventories is.
Ties it was at the end of February March.
Okay, just maybe a follow up on that any is there where do you guys can give us sort of a cadence of of the same store sales through the quarter in it as you exited what you were seeing about this year over year change and I think there's a lot of concern that demand might might be.
Additionally, as well with zero and it sounds like your former obviously a whole lot better than that.
Sort of the exit rate on a year over year change because I didn't stop us kind of maybe inform our thoughts about going forward.
Yes it.
Basically February was the first month in our last quarter and we had a very strong February.
And we had a good first half of March.
And for March and April both of those months were down.
Maybe low double digits.
So not nearly as is down as much as the rest of the market, but we were down a little bit.
But had very strong February and March and April were down low double digits.
And as you exit rate did that was that improved or was that so roughly down double digits. It was roughly.
Double digits.
Okay.
Gotcha, Okay, and then on the the workforce side I'm, just curious how you're dealing with the furloughs and it sounds like you you decide to go forward losses as opposed to PPP. Despite structure and I guess, just the way you look at the math.
How.
Headed our you to those workers and how fast can you bring them back you add the business normalizes and recovers.
We actually didn't farlow any associates other than a few part time people all of our other associates our hourly associates, we reduced hours. So that we were able to you know stay engaged we were still able to same contact with them that also allowed them you know keep coming to.
The work some.
And so that that was a big benefit there.
We still have all of our full time employees.
For the most part.
Our still on our payroll rosters still working still engaged feel plugged in so it was very evident to us right up front that we had to keep our great associates in place and engaged as best we could until things normalize I think we've done a really good job of that.
So as things normalize you could hit the gas on hours and just ramp back up.
Correct.
Okay, that's great.
And then just maybe lastly around the provisioning that provision that you took in the quarter.
How should we how should we think about that going forward do you think that was.
Enough for what you're you're going see in the next quarter or to a how do you. How do you kind of come up with that that number and estimate that I'm just trying to think about that provision and then losses going forward. It how much could they could they ramp up.
Hi, I know that I did talk sector.
That's that's a good question John it was difficult because we didn't weren't able to getting contact with our customers like we like to or repossess, you know for a month and a half they're going into the quarter.
Or going in ending the quarter basically we just looked at delinquencies. We looked at historical amounts on you know when an account reaches a certain delinquency what does that look like.
But there is still a lot of announce what happens.
After all the stimulus money is done after the extra unemployment runs out how many jobs come back there. There is a lot of unknown out there, but we basically just loved it you know historically and where our delinquencies were.
Oh, we did we were focused really on on making sure the customers realize that hey, we're here for you were here to keep you in that car don't stress about your car right now you've got other things to worry about so really took a consumer friendly.
Soft approach.
And that appears to be really.
Paying off for us.
Now that the stimulus money is out.
Our consumers have decided to use of a good a good chunk of that too.
To get right on their contracts.
With us they in those cars make payments.
So.
We're fairly optimistic that to the adjustment we made is going to be enough.
And consumers are reacting in in a good way they need what we do.
It's not a there's not a discretionary purchase this is a basic affordable transportation.
In areas that don't have public transportation, and then that character lending relationship we have with folks.
We're really really showing how solid those relationships are out there.
It took me figures that's one last quick follow up on that the we've heard anecdotally from from dealers that in the 10000 dollar and less range of used vehicles, there's been a bit of a step up in demand for folks that are you know the Wanna get off public transportation on the margin and I know its.
Not necessarily cross section directly with some of your markets, but but some of them. There there could be I mean are you seeing any sort of change in the consumer consumption or demand that may dictate some of these lower end consumers moving off of public transportation towards individual owners.
Ownership of vehicles like you provide.
You know the areas that we serve really don't have public transportation.
I can see in other areas, where that might be a factor and.
And that would served increased demand for that basic car, which would.
Potentially resulting in less deflation and we maybe expect right now, but we don't just we don't serve a lot of areas with public transportation anyway.
I think right. We are John is that the people that have a real need.
For a vehicle or out their shopping you know those that might have a choice.
It's more of the luxury or more of a wanting something new other than a need that they're not getting out as much or didn't during during this fourth quarter.
Great. Thank you very much guys I appreciate it. Thank you. Thank you.
Thank you. Our next question comes from Kyle Joseph with Jefferies. Your line is now over.
Hey, good morning, guys. Thanks, very much for taking my question.
Hope everyone there as well.
Thank you.
I wanted to get to.
Talking about credit or.
No. There's a lot of moving parts there, but just can you give us a sense for how's only quincy trended during the quarter, obviously Kobe.
In mid March.
Ultimately stimulus started flying in mid April.
So just how those two.
Factors really impacting delinquencies and if you didn't see some relief and Jones delinquencies from.
Stimulus and then also how that's been trending quarter to date.
So you know if you think about at our fourth quarter is our big tax time payment time, where we schedule a lot of seasonal type payments and there is a lot of consumers with cash during that time. So you know to Jeff's point you know we started out February.
Really well.
Throughout the month of February and into March and then everything just kinda shut down.
But we definitely did see a little bit of up to won the initial stimulus money came out.
And really like I said, our collections you know weren't werent down by huge amount I'm in a lot of that was related to the time increase.
So you know that because as we move through this and what does the rest of the stimulus look like is yet to be announced that overall you know we felt pretty good about the customer payments and the contacts that we had with our customers.
In May is.
So for me has been pretty good on the collection side too. So we're very pleased with our efforts in the field to ER to work with customers and our customers response to our efforts so.
Got it that's very helpful.
Historically or your allowances bank has been fairly stable given given all the uncertainty going on.
We expect that allowance to be a little bit.
And change a bit more frequently going forward.
You know like Jeff said, we hope that we've increased it enough to cover what no coming up here for the next year. So that we don't like to change that a lot, but I think theres still just so much I know not now that it'd be difficult to say that the.
We won't need to change it again and.
And we focused Kyle on the net charge offs more than a.
The income statement.
Provision.
And.
Even though we couldnt repossess didn't repossessed last 45 days with a quarter.
We we still feel like had we been.
Under normal collection processes.
We still would have been under.
Last year's percentages.
By quite a bit.
Even with the pandemic and even if we were in normal operations.
Fourth quarter as far as charge offs go.
Would it would have been less than the prior year.
Got it that's very helpful. And then I wanted to talk about competitive trends I think about your competitive environment in terms of.
Are there other dealership.
As well as more broadly this supply of credit can you give us a sense for a competitive dynamics in both of those shorter geography.
Well, it's a it's a little still little dicey little unknown out there.
Anyone that.
As a lot of leverage on the balance sheet is probably.
Going to struggle a little bit here, we know that there have been some securitizations that have been done but.
The enhancements and.
Or a little.
More conservative.
And so we feel like the fact that.
We've spent 40 years bill enough this balance sheet.
It's going to put us in a great spot to continue to pick up some market share and we don't have a lot of clarity yet on what the competition.
Is faced with and.
But we feel like.
Certainly there's going to be less lending.
Down in our markets and the great opportunity for us to pick up market share if it's still a little bit hard to.
To read things at this point.
Got it and then one last one from me I, just you talked at the auction essentially shut down the sort of middle of the quarter can you get give us an update.
Action activity back to you.
Kind of where was I know it was virtual over a period of time, but would you say the auctions or are you willing at this point or Theres still some.
Some work to be down there.
Yeah, I think there's still work to be done there some auctions that.
Maybe ran physical auctions have switched to digital and maybe they're going to stay digital.
And.
So there's still some from our understanding so still some pretty good disruptions.
The and things to work out.
To get back up to a to square one that it's not flowing lucky like it will eventually.
And it was just a.
Got it quite at quite a mess.
There's still some aspects of it that that has to be it worked out.
The products not not flowing.
Like it will.
Through the auctions at this point.
Understood well, thank you very much rationale my questions.
Thank you Carl.
Thank you as a reminder, ladies and gentleman that Star then one to ask a question.
Our next question comes from Vincent Caintic with Stephens. Your line is now open.
Hey, good morning, Thank you for taking my questions a couple of quick ones.
So first.
Appreciate the data you gave on March and April trends, she could maybe update us on what you're seeing on me so far that might be different. So for example, the same store sales.
You're down double digits neutral host I tried to the May and then.
So the stimulus I think affected started in the second half of April if maybe you could talk about how that has.
Thank the decision may so far if at all this is actually driving.
You talked about came it's improving its until so maybe driving more demand that you might be seeing in may [noise].
I'd say a.
May is pretty similar to March and April in terms of.
Overall trends.
And.
Still seeing healthy.
And for our product consumers are shopping, but it but it is a little less than last year at this point to.
As we mentioned collections are strong.
But stimulus money has been out there for a while now.
And.
Overall, our sales are down just just a little bit in may in line with where we were for March and April.
And again, we do expect that to continue to trend positive.
We feel great about our market position and picking up market share what we don't have much control over is the overall.
Market for used cars.
In consumer sentiment.
And confidence and all that so.
We're going to pick up market share.
It's kind of ahead of our hands as to what that market is short term, but we're optimistic that.
We're going to get our share of the market volumes, you're going to increase overtime.
Okay great.
Next question on on kind of on credit So first on the 6.2% delinquencies.
That include Forbearance Mr. way.
Split that out and then when you talk about the reserve increase for your credit reserves.
Are there any understanding it's it's difficult and you're looking historically.
[noise] for some context minister.
What's sort of loss.
Rates are you assuming your reserves.
I forget if you are subject to Cecil does this affect anything now or each quarter [noise].
Yes, so real quick on C., So we're not expecting a large impact for from Cesar Cecil on on the income statement.
We you know already provisioned out when the life of our alone.
So there there's not a lot.
Much if any expectation for a change there that will take effect of this this first quarter of 21 for us.
And then on the delinquencies in the 30, plus and how that relates to modifications. We didnt really do any forbearances you know 90 day deferrals or anything like that we just continued working with our customers individually as we always have and adjusting.
You know their payment schedules to what they could afford and.
You know in the short term until they started receiving their unemployment or whatever those different situations might be so.
For the customers that we had been in contact with and were able to make those modifications and they would not show up in the delinquency numbers, but.
But typically those customers once we've got in contact with them and we've been able to workout and arrangement you know that those are much more successful customers and the modifications during the fourth quarter of this year, we're up just a little bit from the fourth quarter last year. So we again Vicky's boy, we we work with customers one on one.
And there wasn't a huge increase and modifications.
Year to year that in the fourth quarter.
Okay. That's really helpful. Thank you.
Next on the supply chain, so talking about.
Oh, the options for down I'm, just wondering how much of it so that should it has.
And intact.
That's the auctions coming back or said, what's needed to fix the supply chain or are there other things that you're working on.
And does it position so I know that's the halted for a little bit but this that's coming back most of your supply chain and then overall inventory levels.
Yeah, the auctions getting back to full speed certainly helped the flow of product.
Some efforts that we have in place and it had in place to too.
Streamline our procurement efforts with preferred.
Suppliers, certainly is an opportunity for us.
Shops opening back up repairing cars that need some some attention.
It's going to is going to help.
And so we're confident that at some point hopefully soon.
Things are going to return to more normal state for used car.
Flow.
And that will have some some good opportunities.
Through auctions through some online channels.
And through our preferred vendor networks, and maybe even some new car stores.
At our maybe opening backup to us for supply all those avenues.
Purchases from the general public.
And repossessions as you mentioned.
All those are going to add to the supply and help us.
In terms of finding good solid affordable mechanically sound cars for.
For our consumers and.
And allow us to gain market share.
Okay, Great and last one from me.
You talked about maybe potential store acquisitions, if you could you talk about Pimavanserin and Oh I'm sorry.
Anymore.
Other folks competitors, maybe wanting to sell to you.
Sure.
Well, if we hit the Taylor acquisition in March just before the pandemic and.
We've been very pleased with that effort, it's going to be great for us.
And we think theres potentially other opportunities like that out there operators that are that had been in the business run good businesses and maybe looking to.
To to get out of the business at some point, it's a great way to.
The exit and become part of our team. So we were looking for good solid.
Market dominant.
Operators, who might have an interest in becoming part of what we do and we think there's a some of those folks.
Out there and we would certainly be open.
And actively.
Interested.
In filling those types of transactions and opportunities into into what we do.
Okay, great. Thank you very much.
Sure.
Thank you.
Our next question comes from John Rowan with Janney. Your line is no.
Good morning.
Good morning, I'm curious when you guys had to stop repossession or tell them.
You mean idea of how much that brought the that actually the loan brought down your cash collections I'm looking for percentage if your habit.
Well, we were down about 6 million on collections almost three that was simply related to the term.
So that other three related to two some modifications and some delinquencies.
But.
When we stopped Repossessing that did.
Stock.
Some collections, it's hard to know specifically how much.
But.
We certainly oh scores so far in May.
Collections that have returned back to normal.
And.
So we're pretty optimistic on on the collection side.
Well, it's the way to look it doesn't mean you went from 16%.
10%.
And.
And that's about a 6% decline in.
In cash collections year over year is a fair to say that maybe half of that is because of reproductions given the.
50, 50 split you gave in the 6 million.
But that could be a way to look at it yet so.
Not exactly.
That might be a that might be how far are charge off might have gone up still be under last year's charge offs, but that might be a proxy to oh, what true charge offs might have been asked the recoveries and repossessions.
Okay, and then on because we you know we would have been able to gotten in contact with a lot of those customers and typically once we can get in contact with them. You know we can work something out so it's it's hard to say okay.
Okay, what do you have the.
For a lot per month sales numbers for me.
What it was this year versus last year.
No other than to say that were.
My is so far.
Trending where a March April were compared to prior years, though.
Okay, and then just lastly, I will make sure what is the current.
Blended rate on your data to make sure Abbott right, obviously as you move up the other region actually come down.
You know unfunded commitments.
[laughter].
Yeah were were 2.3 overlap war.
Got it would just a little over 3% right now.
Alright, Thank you very much.
Thank you.
Uh huh.
Thank you. Our next question comes from Kyle Joseph with Jefferies. Your line is open.
Hey, guys, Yes, I want one more follow up for me just just on sourcing inventory you know we've been reading a lot of headlines about rental cars and not surprisingly there, they're struggling and potentially looking to you to liquidate inventory a I'm just wondering is that kind of it it would.
That fit your inventory base or is that is that kind of a different sort of car than youd be looking to acquire.
Well you know we've been we've been moving up market and.
Really working on retaining long term customers and not losing them from our family.
So I believe that rental car companies.
Are going to be a good source of cars and good source of flows for us so going forward.
And we are actively looking at that.
As a good opportunity much like a preferred vendor.
If you will and we're certainly working in that area in an effort to buy a newer lower mile car and keep some of our a good customers.
In the car Mart family.
Forever. So yes, that's that would be part of our strategy.
Got it thanks very much.
Thank you.
Thank you ladies and gentlemen, just concludes our question and answer session.
I'd now like to turn the call back over to Jeff Williams for any closing remarks.
Well once again, thanks for your interest in a car Mart and thanks to all of our Great Associates out there we have a great company, great potential Greg future and we're very excited about what we do and why we do it.
And Oh, we expect great things from ourselves.
And just appreciate you guys listening in today have a great day. Thank you.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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