BENTONVILLE, Ark. — Buy-here, pay-here auto group America's Car-Mart enjoyed strong revenue and retail sales improvements along with decreases in charge-offs during both its fiscal third quarter and nine-month time spans.

In the third quarter that wrapped up Jan. 31, Car-Mart executives indicated net income shot up to $6.3 million from $3.6 million in the prior-year quarter. The company's income levels increased thanks to revenue figures that jumped 14.1 percent.

Officials revealed their revenue in the third quarter came in at $83.8 million compared with $73.5 million in the same period of the prior year. Fueling the revenue jump was a double-digit gain in retail unit sales.

Car-Mart reported that its retail unit sales increased 11.8 percent with 7,824 vehicles sold in the third quarter. That total was up compared to 6,996 vehicles moving during the year-ago period.

In other financial data, company executives shared that same-store revenue increased 11 percent in the third quarter. They also mentioned that provision for credit losses was 21.7 percent of sales compared to 22.4 percent in the same period last year.

Furthermore, Car-Mart found that net charge-offs as a percentage of average finance receivables dropped to 5.7 percent, down from 6 percent the company had in the third quarter of the previous year. Officials also pointed out that gross profit on vehicle sales edged up to 44 percent from 43.1 percent.

Finally, the company said finance receivables grew by $7.9 million during the quarter, or 3.1 percent, while its allowance for credit losses stood at 22 percent of finance receivables principal balance.

Moving on to a look at financial data for the first nine months of its fiscal year, Car-Mart had more positive gains to share as again revenue went up by double digits.

Executives revealed that revenue climbed from $221.1 million to $250.1 million, resulting in an income jump from $12.8 million to $19.6 million.

Car-Mart also enjoyed a 12.5-percent increase in retail unit sales. The company sold 23,971 vehicles during the nine months that concluded Jan. 31. That figure was up from the 21,307 units moved in the same period of the last fiscal year.

In other details from this nine-month span, Car-Mart indicated that same-store revenue increased 10.3 percent, while the provision for credit losses slid down to 20.5 percent of sales as compared with 21.8 percent in the same period last year.

Executives also noted that net charge-offs as a percentage of average finance receivables dropped to 16.1 percent from 17.9 percent. Gross profit on vehicle sales edged higher as well, creeping up to 43.9 percent from 43.2 percent. Car-Mart also said its finance receivables grew by $30.2 million during this nine-month span, or 13 percent.

William "Hank" Henderson, president and chief executive officer of America's Car-Mart, shared his enthusiasm for how the company performed.

"We are extremely pleased with our results, and, absent some weather related issues that hit us especially hard at the very end of our third quarter, the results would have even been better," Henderson emphasized.

"We anticipate that the negative weather effects during the third quarter will simply push some activity into our fourth quarter this year and will not result in ultimate lost sales. Our associates continue to raise the bar in serving our customers, and these efforts are showing up with the top and bottom line growth we are experiencing," he continued.

"We are proud of the value we are bringing to our customers, and we will continue to invest in the business to serve them in the best possible way," Henderson added.

Car-Mart's top executive went on to highlight three particular locations that recently joined the group and helped its financial performance. Henderson noted the improvements at stores in Texas, Alabama and Kentucky and praised regional vice presidents Tracy Tillar and Drew Clark for the success.

"Our game plan has been and will continue to be to increase volumes and resulting profitability through our existing store base and at the same time add new locations," Henderson stressed.

"Our manager-in-training program continues to attract quality individuals and we currently have several new locations identified and are working diligently to get them opened so that we can serve an expanding customer base," he continued.

Henderson also commended the efforts of his management to control inventory, especially in light of wholesale volume constraints.

"Our purchasing department continues to do an outstanding job of keeping car costs down, and quality up, in the face of rising wholesale prices. Our average selling price is up only 1.1 percent compared to last year's third quarter," Henderson explained.

"By keeping our car costs down we have been able to maintain and even improve our gross margin percentage during the current fiscal year. Our gross margin percentage was 44 percent for the quarter compared to 43.1 percent for the prior year period," he pointed out.

While Henderson doled out updates on Car-Mart's operating success, the company's chief financial officer, Jeff Williams, shared more details about the company's ledger standing and more.

"Our credit quality continues to show improvement. The provision for credit losses as a percentage of sales decreased 70 basis points for the quarter and decreased 130 basis points for the nine-month period," Williams highlighted.

"Net charge-offs are down, accounts over 30 days past due are down and the percentage of finance receivables that are current is up," he continued.

"We are pleased with our credit results and will continue to ensure we are doing everything possible to help our customers succeed," Williams added.

The company CFO went on to note that Car-Mart's cash flows remains strong because of finance receivables growth of $30.2 million, net capital expenditures of $2.7 million and only a $5.3 million increase in debt.

Williams indicated the company now has more than 46,500 active customers, a gain of 11 percent from the beginning of its fiscal year. He revealed that Car-Mart's debt to equity and debt to finance receivables ratios were 19.7 percent and 13.4 percent, respectively.

"(The ratios) continue to be very strong and are further indicators of the strength of our balance sheet and capital structure," Williams mentioned. "Additionally, we recently renewed our existing banking agreement at substantially the same terms pushing out the due date to April 30, 2011."

Car-Mart also highlighted positive results with its $0 Down Tax Promotion, which began in October of last year. Williams said the program has helped to boost increases in total sales volume and collections.

"We consider this program to be a huge competitive advantage for us, and it has been extremely well received by our existing customer base as well as attracting new customers to Car-Mart," he stressed.

Williams wrapped up his financial discussion by indicating the company's board of directors approved an increase in its share repurchase program, allowing for up to 1 million shares to be repurchased. He mentioned that since Dec. 2, 2005, Car-Mart has repurchased more than 477,000 shares of its common stock

"We believe in the long-term value of our company and will invest in the repurchase program when favorable conditions present themselves to us," Williams concluded.