BENTONVILLE, Ark. — Citing increased competition from
dealers and lenders dipping deeper into the subprime customer pool as well as a
comparison to a sterling performance a year ago, America's Car-Mart watched its
net income, revenue and retail units sold all soften during the second quarter
of its current fiscal year.

The buy-here, pay-here dealership chain said this week its net
income came in at $7.3 million or 76 cents per diluted share during the quarter
that ended Oct. 31. A year earlier, the figure was $7.7 million or 77 cents per
diluted share.

Car-Mart's second-quarter revenues totaled $110 million,
compared to $111 million for the prior-year quarter as same-store revenue
decreased 4.8 percent.

The company's retailed 9,814 units in the quarter, marking a
1.1-percent dip from the 9,919 units turned during the prior-year quarter.

Officials noted the average retail sales price decreased $42
or 0.4 percent from the prior year quarter and $69 or 0.7 percent sequentially.

With an active accounts base of more than 55,500 customers,
Car-Mart calculated that its debt-to-equity ratio stood at 48.8 percent and
debt-to-finance receivables ratio came in at 26.9 percent.

The company added its allowance for credit losses registered
at 21.5 percent of finance receivables as of Oct. 31 as well as April 30.

"While we are facing some near-term revenue challenges, we
are convinced that the direction we are going will provide significant
profitable long-term opportunities for America's Car-Mart," president and chief
executive officer William "Hank" Henderson said.

"We are confident that our business model is strong and our
growth opportunities are outstanding. The amount of funding for the subprime
auto industry has increased recently and appears to have had somewhat of a
negative effect on our overall revenues during the second quarter, especially
in some of our older, more established markets," Henderson continued.

"This is not the first time we have seen this situation
over our 31-year history and we are making adjustments to help retain our
better repeat customers who now may have a few more options than they have had
in the recent past," he went on to say. "We believe that Car-Mart's local
presence and face to face relationships give us the ability to work with
customers far more effectively than subprime finance companies. We offer the
best long-term choice for our customers and we will work tirelessly to earn
their repeat business by providing quality vehicles, affordable payment terms and
excellent service.

"We have over 55,000 active accounts and many more past
customers who know what Car-Mart stands for and the lengths we go to help them
succeed," Henderson added. "We are committed to fighting to keep our best
customers and we look forward to a bright future. In addition to serving our
existing markets, we believe that there has never been a better time for
Car-Mart to be adding new locations to serve an ever expanding customer
base."

Chief financial officer Jeff Williams acknowledged that
while Car-Mart is seeing some near-term challenges, especially as related to
revenues, there are several bright spots with our financial performance for the
quarter.

Williams said the company's performance has been positively
impacted by its share repurchase program as Car-Mart now has less than 9.1
million shares outstanding. He added higher interest income on its portfolio
and an overall higher gross profit percentage also are providing the company
with solid returns.

Williams also said the company continues to work on managing
expenses.

"Lower unit sales combined with the fact that we have seen
three consecutive sequential quarter decreases in our average retail sales price
has had somewhat of a negative short-term effect on gross margin dollars,
selling, general and administrative expense leveraging and overall credit losses
as a percentage of sales," Williams said.

"However, we believe that over the long-term, lower selling
prices increase affordability and resulting customer success," he continued. "The
current macroeconomic environment continues to be challenging and all of our
efforts will be aimed at creating value over the long-term.

"When we look to the future we are convinced that the
business model will support significant volume expansion. Our efforts will be
aimed at attracting new customers as well as earning repeat business from our
very best existing and previous customers," Williams went on to say.


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