It must be something in the water in Bentonville, Arkansas. The tiny town is home to Wal-Mart (NYSE: WMT), of course, but also the less famous America's Car-Mart (NASDAQ: CRMT), which operates 92 used car dealerships in the South-Central United States.
While the auto industry is mired in the biggest downturn in its history, America's Car-Mart is posting some pretty impressive numbers.
The company reported its second quarter results today, and achieved same-store sales growth of 5.3%. That compares quite nicely to Carmax's (NYSE: KMX) 17% decline for its second quarter.
And as most companies that lend money to consumers getting pummeled by write-offs, net charge-offs as a percentage of average finance receivables fell to 6.2%, compared to 6.7% in the prior year. Accounts over 30 days past due remained flat at 3.8%. Earnings per share increased from 29 cents to 33 cents, including the effect of a 02 cent loss related to the change in fair value of an interest rate swap.
How did they do it? CEO Hank Henderson attributes the good results to the troubles other companies are having: "Going forward, contrary to what other auto retailers are forecasting, we believe our sales will continue to increase. The credit tightening trend among other used auto lenders makes Car-Mart a great alternative for even more folks who need a quality vehicle and readily accessible financing."