Q3 2022 America's CAR-MART Inc Earnings Call

February 17, 2022

Okay.

Good day and thank you for standing by welcome to the America's car Mart third quarter 2022 results conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session.

To ask a question. During this session you will need to press star one of your telephone.

Please be advised that today's conference is being recorded if you require.

Any further assistance. Please press star Zero I would now like to hand, the conference over to your Speaker today, Jeff Williams CEO and President. Please go ahead.

Okay, well, thank you for joining us this morning.

Our press release that went out last night was comprehensive.

We hope you've had it feeds to review it.

We would also encourage you to view our investor video on our website.

Which covers some important aspects of our business model.

We love our business and the purpose in our work and we're very excited about the opportunity we have to support more customers and associates is a dramatically larger more profitable company over time and be even better at providing our customers with what they need.

I would like to thank all of our associates for all they do to make us better.

Again, our press release was comprehensive and I won't repeat the press release comments here, but we'll leave more time for Q&A at the end of our call.

I will now turn it over to Vicki to go over some numbers. Thank you. Thanks, Jeff Good morning.

Everyone.

Our productivity at our dealerships with 38 units down one 3% over the prior quarter as we mentioned our productivity in November and December was up.

But Dan in January primarily due to the impact of the omicron variant and it resulted in staffing shortages at our dealerships as well as impacting our customer traffic.

The third quarter also compared to the prior year quarter, which had some positive impact from the stimulus payments that were disbursed in January of 'twenty one.

For the current quarter, our net charge offs as a percentage of average finance receivables was five 3% compared to four 9% in the prior year third quarter.

And again the prior year third quarter included stimulus payments, which positively impacted collections and net charge offs in the prior year net.

Net charge offs were five 9% for the quarter ended 131 'twenty pre pandemic.

So from a long term historical perspective, the current quarter net charge offs are still much improved and well below historical third quarter levels. Despite the increase in the average retail sales price.

We did see an uptick in our frequency of losses, just above the unusually low prior year period level, while the severity of losses on a relative basis, we're still improved compared to the prior year quarter.

This is all consistent with some expected normalization after the and sustainable historic lows, resulting from stimulus payments and other factors that we've experienced over the past two years.

Recovery rates of repossessed units also contributed slightly to the decrease in the net charge offs.

Our recovery rates for the quarter were approximately 28, 5% compared to 27, 1% in the prior year quarter and 26, 6% for the third quarter of fiscal 'twenty.

Our recoveries on repossessions are a smaller percentage of our overall profitability compared to others in the industry.

It's also important to note that as our receivable balance grows a significant portion of the provision expenses related to increasing the balance sheet allowance reserve on the larger portfolio balance our finance receivable principal balance has grown by $220 million and our deferred revenue.

<unk> has increased by $26 million during the last nine months, resulting in an additional provision expense of $47 5 million reflected in the income statement for the nine month period for the reserve increase.

Our 30, plus past due was at 4% compared to two 8% in the prior year third quarter and three 6% at 131 'twenty pre pandemic, we believe the impact of the omicron variant on our customers contributed to the higher delinquencies.

Total collections of principal interest and late fees increased by $23 million or 21% over the prior year quarter and improved eight 2% per average customer.

The average originating contract term was 44 months compared to 35 for the prior year quarter and up from 39 seven months sequentially.

The overall increase in the term was less on a relative basis than the increase in the retail sales price would have indicated.

Our weighted average contract term for the entire portfolio, including modifications was $41 two months compared to $35 seven months for the prior year quarter.

The weighted average age of the portfolio increased slightly from approximately $8 seven months to $8 eight months.

The early data that we have on longer contract terms and higher average selling prices looks promising for our collections and our customer success.

The total gross profit per retail unit sold increased by nearly a $1000 to 6773 or up 17, 3% compared to the prior year quarter.

The gross profit percentage was 37, 8% up from the sequential quarter at 37, 5% we.

We did a nice job this quarter of stabilizing the gross margin impact despite a sequential increase in the average retail sales price of $897 or five 5%.

Improved wholesale results and expense efficiencies contributed to this improvement in the gross margin percentage.

We continue to leverage the investments, we're making in our SG&A. Most of our increased spend has been focused on the payroll and benefits area is the single most important part of our customer service is our associates, who support those customers and we're focused on having highly trained happy and engaged associates, especially in this call.

Current environment.

We are now serving approximately 94000 customers with an increase of more than 5800 in the last nine months and we have over 2000 total associates.

At quarter end, our total debt was approximately 373 million, we had $2 6 million in cash and approximately $84 million in additional availability under our revolving credit facility based on our current borrowing base of receivables and inventory.

As a reminder, we do have an existing $600 million commitment from our lenders with $100 million accordion feature as well as the opportunity to access the securitization market as we grow.

Our current debt to finance receivables ratio is 36%.

During the first nine months of fiscal 'twenty, two we added $220 million in receivables increased inventory by $37 million, we repurchased $27 million of our common stock and we funded $14 million and capital expenditures.

As we go into income tax refund time, we generally carry more inventory units and a higher cost mix to support the sales during that time.

Thank you and I'll, let Jeff close this out.

Okay, well, thank you Vicky.

We will continue to allocate capital with the priority of leveraging our existing dealership base. While also looking at acquisition and new dealership opening opportunities.

At present compelling growth opportunities for us as we look to expand our footprint.

And we will continue to repurchase shares opportunistically.

We are pushing forward with our industry normalizes.

We'll be in an even better spot to take advantage of opportunities.

Again, and as always we would like to thank our associates for their dedication and commitment to our purpose in their work.

And we're continuing to push revere fill through challenging and disruptive change we have a great company.

And we're all working at getting better every day and once again, we appreciate your interest interest in our great company.

And we will now open it up for questions operator.

Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound key.

Please standby, while we compile the Q&A roster.

Our first question comes from John Rowan with Janney. Your line is open.

Good morning.

Good morning, Jeff I, just want to understand the press release shows the same store or the unit volume growth for the three months, obviously, the big decline in January attributable to weather Omicron ad.

With strong stimulus from what I've read.

When you say that things have normalized and you're operating under normal conditions, but just trying to figure out what normal conditions are in a flat to down.

Used car price environment.

20, plus percent same store revenue growth figures seem.

Impossible to match.

If you have flattened out in used car prices.

Yes.

When we say normal we mean from an operational standpoint, we had the dealerships.

Only had one or two associates staffing the stores for a week or two in the month of January . So there is no doubt when we look at.

The results for January the volumes for January .

Those results were severely negatively affected by the AMA chrome variant and the absenteeism that we saw with our workforce.

And that also translates into some some negative effects.

From the consumer base at the same time so.

Thats.

That's our comments is related to January .

Any idea how unit volumes trended through the first half of February .

They've been solid.

We're still.

Tax money is a little bit pushed out this year.

But I would say that our expectations for February in the fourth quarter are strong and solid and we should be in good shape, especially with our inventory at the levels that we're carrying into the quarter.

Okay, and then any reason.

It doesn't look like you published the data on the <unk>.

Collections relative to finance receivables I'm just curious.

Why the data is not there I assume it's probably related to the extended duration in that that number's, probably lower than it was is that a correct assumption.

Yeah, we were just trying to focus on the total collection. So there's an overall view.

Of what our collections are looking at because you are just looking at principal is not going to be comparable with the extended term.

But it was down about two percentage points, just looking at principal only which was right in line with what you would expect from the term extensions.

But the overall collection dollars were up over 20% and the.

Actual amount collected per customer per month was up over 8%. So those are much more important factors.

And then when you factor in the point that we collected.

About $11 million more in interest income.

During the quarter.

Those are a lot more important.

Dan.

The principal collected percentage, which is going to go up and down based on term.

Okay Alright.

Let someone else hop on thank you very much. Thank you.

Thank you. Our next question comes from John Murphy with Bank of America. Your line is open.

Good morning, just wanted to follow up on on the significant strength, we're seeing in pricing and what that means to your.

Consumer and their ability to pay.

Purchase because it does seem like this is crowding out some of your traditional consumer and hurting volumes so damaged.

What do you think the price sensitivity is and if we get normalization.

Pricing normalizes to something Thats, a little bit more.

More normal relative to new vehicle pricing that there might be an opportunity to drive volume significantly higher just from that normalization of pricing alone.

Yes, there is certainly some pressure on the volumes because of the high prices. There are customers that are not in the market right now.

Because prices are so high.

But we are keeping a close.

I on affordability and payment to income and our.

Our customers are receiving a significant wage increases their wages are growing rapidly in the markets that we do serve to offset inflation somewhat and we believe theres going to be a lag effect to the positive lag effect with wages.

Our customer base overtime, but affordability is an issue.

We would love to see a leveling off of used car prices, maybe even some deflation in car prices would help us out.

And be very much welcomed by our company the economics improve.

With lower prices the affordability is better for our consumer.

And more and more customers would come into the market and be buying cars.

But for the high prices right now so our results are.

Especially strong when you consider the fact that our affordability.

And the price increases we've seen over the last year are significant.

Yes, no I agree.

You think about the average age of the vehicles sold this quarter versus history.

Is it relatively similar and is there an opportunity.

Maybe dive a little bit older.

In the vehicle population for sourcing to provide a good product that maybe a slightly better price for your consumer until we see some normalization here.

Yes, we do think there are some opportunities.

So a little a little deeper with a little less expensive.

Cover the markets then as such.

Turmoil.

Through the pandemic and its been really difficult to find good quality product at the lower price points that you feel comfortable putting your customers under so.

So we are we're always balancing the quality. The fact that this car needs to last well beyond the the.

The contract term.

<unk>.

So it's been a little a little dicey, a little tough at the lower price points, but we are working hard.

To hit those lower price points, we do think theres going to be.

Some opportunities as we go forward is.

As credit losses normalize in the industry.

Access to more and better lower price products as we go forward, but for right now up to this point, it's been pretty tough to find those lower price point cars that are mechanically sound and something that we wanted to put our valuable valued customers in but we are working that direction and we do expect.

Some improvements in that area as we go forward.

Okay.

On your core consumer I mean, obviously you guys are.

Tight relationships with your <unk>.

<unk> customers.

Consumer confidence data out there is pretty.

Tough and reflect sort of a consumer that's not real happy and are a little bit at the rash, yes. It just seems like on the auto side, even down there. The income spectrum. There is tremendous amount of demand unfilled. What do you think the disconnect is in some of these readings on consumer confidence versus what youre seeing with your consumer.

Or maybe you are seeing the same kind of.

Concern of distress in your in your consumer and it just still buying cars I'm, just trying understand what youre seeing versus some of these metrics.

Well for us specifically we.

We sell cars to folks that need transportation. This is not.

It's not a total discretionary expenditure on our consumers' behavior is something that they need non discretionary and a lot of respects.

Realize the benefits of the reputation we have.

There's a lot of peace of mind with local transportation needs and dealing with America's car Mart on a non discretionary purchase.

They don't have public transportation.

Rely on us to keep them on the road so for us specifically.

I would say that that's the primary reason that we're seeing success when you might see consumer confidence not Lisa hi.

That's helpful. And then just lastly, you mentioned something about it.

Going to the ABS market as the company grows and I just I just missed it.

Comment on the details around that.

And what is the opportunity to unlock maybe more liquidity and I apologize I missed the details around that comment that you made.

Yes, just made a very general comment that we.

Studied that market.

For several years.

Many of our competitors use that market our revolving credit facility served us very well historically.

But as we grow.

<unk> for your borrowings grow that.

That market will definitely be one that we look to help support that growth.

So that would be on the <unk> side or would that be floorplan financing or both or im sorry, where would that where the borrowing base on that come from.

Yeah on our receivables from our finance company it would be putting out an auto ABS securitization.

Great. Okay. Thank you very much guys.

Thank you.

Thank you. Our next question comes from Kyle Joseph with Jefferies. Your line is open.

Hey, good morning, Thanks for taking my questions.

I just wanted to touch base on <unk> and <unk>.

And if I missed this but.

Expectations for tax refund season.

In the coming months.

The timing and magnitude youre kind of expecting versus what we saw last year.

Uh huh.

Yes.

Our sources are telling us that the number of filings is behind.

On the timeline.

But the refunds that are being seen and anticipated.

Actually be up it may be up significantly this year so.

The whole season might be a little bit delayed and then spread out over a longer period of time.

But overall refunds are expected.

To be up this year for us.

Our customers.

Got it thanks, and then just one follow up for me just if you can give us an update on on competition, obviously everyone's been impacted by higher used car prices, but.

How I think about your competition is but indirect auto finance companies as well as other dealers in your markets just give us an update on how the how your competitors are ferry.

Well, we think we continue to pick up market share in.

Sure.

Locations apps.

Since the January effect that we just talked about we've done very nicely on the volumes that we would expect that our competition had the same issues in January than we did.

But.

We believe that the high price of cars and the other inflationary pressures in the other areas of business.

Certainly putting us in a good spot to.

Have more cars.

Improve our service levels.

The customer experience.

So we believe that we are picking up market share and we will pick up even more market share as we go forward by improving our offering.

And putting customers and really good quarters, and then providing the support after the sale.

We are so focused on.

Great. That's it for me Thanks, a lot for answering my questions.

Thank you.

Thank you. Our next question comes from Clinton Matthews with <unk>. Your line is open.

Good morning, how are you.

Good morning.

A couple.

So in your video, which I appreciate you talk about.

Historically kind of cheering on customers to graduate from you guys.

Kind of actually going after that pool of people I was wondering if you could.

I am presuming what that means is.

Moving up the subprime ladder.

I guess, if you could say where are those people historically went where they go into another.

Use lot, who you thought was being more competitive when they go into dealerships.

That's kind of one on that and then.

The bigger question I have is.

When you think about what sounds like an acceptance.

For having longer terms, which is going to be partly the cars last longer.

Partly competition and then it sounds like probably Youre going after this pool of people that you didn't realize you could go after.

You could kind of.

Parse out how you think the longer term breaks into those different buckets or are there different buckets, which ones and I know you generally like to give kind of a generic answers, but if you could give like as a third a third a third that would be kind of helpful.

To really see what's moving that longer term.

Yes.

Well in terms of customers graduating beyond us.

Yes that is a primary focus of ours when we looked at.

Customers successfully completing our contracts and then going down the street.

As we congratulate them on their credit improvements they were going through the.

For the most part the indirect lending channels through the new car dealerships to used car division to the new car dealerships.

When we look at the economics of those deals versus our deal.

We realized that we really shouldnt be losing them out of the family homes.

And so we've over the last year and half two years had a good focus a big focus.

On keeping customers in the family for life, and providing them with a car in terms.

That would be in line with and much better than what theyre going to get down the street.

So our as a result of that.

On a repeat business currently.

Has moved from what was 40% range.

<unk> historically to 50% and above and those are good customers that we know we simply had too.

To be more aggressive in keeping them in the family provide them a better higher dollar core with a longer term obviously.

Because they have earned it.

On the credit side.

No.

That's a big reason.

Our cost of course, and the term has gone out but.

Above that.

And more important than that as far as the price would be what's going on just in the used car market with prices up 45% on the wholesale side.

Last year, and 65% plus over two years.

We've simply add to participate.

In the commodity aspect of our industry.

So those those prices in those terms.

<unk> had to move up and move out for us to maintain.

<unk>.

Price.

Payment per month for our customers, we're not the low <unk>.

Monthly payment.

Company at all but we do have to be in the in the ballpark in the universe.

With our customers so that has been a big effect.

On our long term extensions with longer terms as far as percentages that apply to each of these buckets don't really have anything specific for you there but.

We.

We are still well below competition on our term links.

And we think we have.

Even a little more term to give for the right customers and the right cars as we go forward.

Can do quite well in those in those areas.

Okay.

I guess my.

I guess, what it boils down to me as you know is the guy who's been a shareholder for close to a decade.

There is clearly a.

A change in the way that you guys are approaching the.

The Street on what your pictures and I think it is also just and it's coming out of.

New growth opportunities and how the how the business is maturing and so I know the term is a function of the car prices.

But in your video and in your press release.

Six years.

As ago, if we would've been talking about 41 months times and this may be was before your time, but I feel like car Mart what had just been.

What would turn that business down.

And now we've seen essentially be cheering that business on its something that we can continue to earn high returns. So.

You want.

Price depreciation you say youre going after gross profit dollars not margin, but if you if price depreciation goes down youre going to have lower gross profit dollars, but at the same time.

We're accepting.

Longer term I'm, just trying to figure out.

Like what.

Can you give a long term shareholder comfort that this really pretty drastic change is for the benefit and not an outcropping of a situation that is out of your control.

Yeah.

Yes, I think that.

One way to answer that is I don't know what our business would look like today.

Had we not.

Decided that better cars for better customers.

With affordable payments that match up to the competition.

It would be something that makes sense for us short term and long term, we're improving our model as we go forward.

We have service contracts now that are.

Three years include oil change.

Hello changes.

Also include roadside assistance.

Products.

Also have better better data better measurement better scoring.

Our repeat business once again has over 50%.

So.

We do have to participate.

In environments, where prices go up.

And then we have to participate in environments, where prices go down and we've been very nimble.

In either direction for 40 years and when you when your industry is presented with.

45 or 65%.

Increases in prices.

We have to adjust our model and get better and highlight our strengths work on our our weaknesses and make our model and our business better.

That's what we're doing in the industry is changing the world is changing.

Online competition.

There is more blurred the lines between all the competition than there has ever been and we have to be relevant.

We have to invest and we have to push forward.

We think we're doing that at the right.

Right at the right levels, but we're going to maintain that.

In fact that we're going to be nimble as we go forward.

And adjust as we can and adjust as we have for 40 years.

Perfect.

I'll get it wrong, I mean, I applaud everything that's happening I just okay.

If you went back to 2013 14 timeframe and the competition was increasing.

And it wasn't price is necessarily.

But the car part of that day would've probably.

<unk> taken.

<unk> taken a little bit more of a walk away from some of the.

So im not saying Thats, a bad thing I'm, just saying, it's different so trying to get used to it.

Okay.

Hi.

So.

Yeah.

How many on your acquisitions.

Do you rebrand those couple that you've acquired the one in Illinois and the other one you closed <unk> rebrand most of you keep the names.

We keep the names for a period of time.

And then we will rebrand those.

Certain point in time, when the customer base.

The seller.

It's kind of run off to a large extent.

We will rebrand at that point.

Okay and are you.

Wiring dealerships that.

You just you are just as happy or more happy keeping the current general managers in place are you shifting.

Managers like you would on a greenfield.

Two to a new store location and moving people up through.

The original car Mart.

No.

We are all about keeping the existing associates for the seller in place.

A very big benefit for the seller and for us as a buyer.

Staff, including the manager.

Stay in the seat.

And help us build our book, while the old book gets run out so.

We are keeping management and all the staff in place.

The efficient and excited about being part of RT.

Got it.

How many I mean, if you think about I don't know if you've given guidance on kind of greenfield and acquisitions.

How quickly do you think you can.

Your goal to grow the store count on an annual basis.

We are in.

In the process of being a little more specific in that area. We've opened a few dealerships in the last few years, we've had a couple of acquisitions.

The tune of four or five a year.

We've got a number of.

Of things going on within our company on the software conversions and the centralization of certain efforts. So we're solidifying some foundational.

Yes.

Efforts in several different places.

And we'll be able to.

More specific on <unk>.

Growth opportunities and goals.

We get a little closer to get down the road just a little bit.

But there are significant opportunities we believe.

For acquisitions are very good operators.

Of course, there's several very good towns and cities.

In close proximity to where we already operate.

That need a car Mart.

We have a lot of greenfield opportunities.

So is it possible when you get comfortable with it something you can go from four to five.

Seven to 10 range or you don't want it.

I would I would think so overtime okay.

Uh huh.

On the on.

On the software upgrades is that just CRM or you're doing like a tire ERP.

Rarely do you ever see a.

Entire backend kind of an ERP system.

Go smoothly without causing.

Problem.

Last.

Usually a year and businesses.

We're being very measured about how we implement it so we started with our CRM module. We're currently in the process of.

Adding this finance.

The ERP project.

Which that should go live early in our new fiscal year, and then our last piece.

We'll be to layer in our loan originations.

And the dealership impacts that we're going to make sure all of the infrastructure is in place everything else is working.

And we're doing it in a very measured manner. So the impact at the dealership level is minimized.

Okay, and when should that last piece is that a kind of second half of this next fiscal year.

Yeah, It will probably get at least started.

I'm not sure about the finishing part in this next fiscal year that piece or pieces of it.

We'll get rolled in next fiscal year.

Okay.

One more.

One for that's always confusing to me and then just one more quick one on the provisions that you gave and I'll go back and listen to it but the $47 5 million extra provisioning over the last nine months.

I always have a hard time trying to figure out what your provisions are going to be and I would think that if the allowance for.

Low loss as a percentage of the average receivable with static whether year over year or sequentially.

Debt as a percentage of sales you are provisioning would be.

Roughly the same but you really had a pretty big.

Year over year.

And your provisioning.

Significantly more right now than you are.

Taking it and write off to your allowance so.

I don't know if theres, a kind of a quick way to.

Explain.

How you can think about what that's going to be on a go forward basis or what it should be on an annualized basis. If you allow it.

Doesn't change as a percentage of receivables.

Yes, that's what I was trying to demonstrate its really about the amount.

Principal.

Receivables that were adding to our balance sheet when youre growing.

Uh huh.

Finance receivables as much as we have that $220 million over the last nine months, there is going to be a fairly significant impact to the provision just because you have such a larger portfolio balance.

Then as collected that reserve gets relieved.

But the balance.

But why is it percentage of sale why why would it change as a percentage so I get why it goes up in absolute terms, but why on a percentage per se.

<unk> of sales would it change if youre allowance as a percentage of the percentage of your receivables stayed the same.

Well the sales fluctuate a little differently than the balance of it.

Math on that side yeah.

Okay, well I'm sure I'm, probably doesn't idiot on that so.

Alright, the big point, the Big point here is.

When you when you look at our IR growth.

We've deferred a large.

Amount, we've deferred with our <unk>.

Hillary products and then we've also reserved a big chunk of that in the in the bad debt reserve on the balance sheet. So that's the point Vicki was making is.

Of the $2 20, we have on our balance sheet very significant reserve against that in addition to the deferred.

Revenue components, so and all of that is recognized later down the road and in the future.

As the loans.

Perform.

Okay.

And then you get $27 million in common stock you bought back in the quarter, how many shares.

The $27 million over the nine months.

Okay.

How much did you do in the last in this quarter I think there were six I think there were 63000 or so shares in the quarter.

Repurchased.

For the price.

The total amount I mean.

Yes, that's about it yeah. It was a little over 6 million averaged 102 per share I think.

Okay.

Is is your buyback I mean, it's weird.

Because like you buyback like you bought back more than a 145, a little last I think at 125 and even last set whatever this is going to end up being like.

100 or something.

I mean is that just a function because you have more money to put somebody you guys. I think you guys buyback judiciously.

If you look into the long term, but you always seem to like Ratchet down your buybacks. When your stock is cheaper and I don't quite get that.

Well some of it is just a function of where we're at in the market. I mean, obviously, we've invested significant dollars in our receivables growth and our sales and inventory, which as we said is going to be our primary.

No.

Priority for <unk>.

Capital allocation. So when you are having to invest more in those two areas. It does leave less or.

Stock repurchases.

And again trying to stay measured on on the leverage on our balance sheet, and where we want to want to be there.

And again Theres been so many changes in the environment we've been in.

Over the past couple of years.

Some of it's just timing on.

Blackout periods and the.

Some of it is.

Just related to what we can do and win out there in the market. So.

Alright, well I appreciate all your time and Mike.

I guess I just feel.

I've been around long enough with you guys.

I appreciate all you do.

Pick only because like somewhat feel like justified because I've been around a long time until my nitpick on that would be.

When the stock hit a 180.

Hi.

And like Youre, clearly over earning in the short term because.

Used car prices.

I don't know maybe reorient, how you think about the share buybacks, but that's a small nitpicky I. Appreciate what you guys do and thank you for your time today.

Thank you.

Thank you. Our next question comes from Gene <unk> with U S Capital Advisors. Your line is open.

Yes, I just would like to congratulate you on the progress.

Sure.

And kind of continue with the share buyback.

I've been in the stock a long long time.

Appears to me, it's time to stop.

Stopped the buyback and start some dividends.

I'd just like your comp at all.

Why are you arent paying a dividend.

With the kind of the money you earn them.

Yes.

Thank you for your question.

We've just always considered <unk>.

Share repurchases to be the.

The best way to reward the very long term shareholder base.

It sounds like.

You are a long term shareholder and you benefited from that but we've always taken that position.

We want to reward the long term shareholders and the best way to do that would be through the share repurchase program.

Well dividends reward us also.

Okay.

You got the shares down mouth to wear.

Frankly.

So 100000 sure somebody would be impossible.

You've got it down to where the shares are firmly at Westwood.

To put a dividend out there.

We're also increase.

Capability.

Many institutions.

To be able to purchase your shares but can't today, because there is not a dividend.

So.

As far as I'm concerned.

Others Barbara Ward.

A dividend of some bioterror.

Could be an order at this point.

Okay.

Thank you for your comments there, we'll take that into consideration. Thank you.

Okay.

Thank you as a reminder to ask a question at this time. Please press Star then one are you touched on telephone.

Okay.

And Im showing no further questions at this time I'd like to turn the call back over to Jeff Williams for closing remarks.

Okay, well once again, thank you for joining us. This morning. Thank you for your interest in our company and once again, thanks to all of our great associates out there that.

Do fantastic work and throw the wholesales into this effort every day, we've got a great team and great associates.

A lot of positive things going on here at core Mark and we're very excited about our future.

Thanks for joining us have a great day.

This concludes today's conference call. Thank you for participating you may now disconnect.

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Good day and thank you for standing by welcome to the America's car Mart third quarter 2022 Adult conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session.

To ask a question during the session you will need to press star one on your telephone.

Please be advised that today's conference is being recorded if you have plenty further assistance. Please press star zero.

I would now like to hand, the conference over to your Speaker today, Jeff Williams CEO and President. Please go ahead.

Okay, well, thank you for joining us this morning.

Our press release that went out last night was comprehensive.

We hope you've had a chance to review it.

We would also encourage you to view our investor video on our website, which covers some important aspects of our business model.

We love our business and the purpose in our work and we're very excited about the opportunity we have to support more customers and associates.

Dramatically larger more profitable company over time and be even better at providing our customers with what they need.

I would like to thank all of our associates for all they do to make us better.

Again, our press release was comprehensive and I won't repeat the press release comments here, but we'll leave more time for Q&A at the end of our call.

I'll now turn it over to Vicki to go over some numbers. Thank you. Thanks, Jeff Good morning, everyone.

Our productivity at our dealerships with 38 units down one 3% over the prior quarter as we mentioned our productivity in November and December was up.

But down in January primarily due to the impact of the omicron variant and it resulted in staffing shortages at our dealerships as well as impacting our customer traffic.