America's Car-Mart Reports Second Quarter Earnings of $.29 Per Share On Revenue Increase of 14.6 Percent

Rogers, Arkansas, UNITED STATES


BENTONVILLE, Ark., Dec. 4, 2007 (PRIME NEWSWIRE) -- America's Car-Mart, Inc. (Nasdaq:CRMT) today announced its operating results for the second fiscal quarter ended October 31, 2007.

Highlights of second quarter operating results:



 * Net income of $3.5 million or $.29 per diluted share vs. a net loss
   of $1.9 million or ($.16) per diluted share for the second fiscal
   quarter of 2007
 * Overall revenue growth of 14.6% with same store revenue growth of
   12.3%
 * Retail unit sales increase of 7.8%
 * Provision for credit losses of 22.9% of sales vs. 37.0% for the
   second fiscal quarter of 2007
 * Accounts over 30 days past due down to 3.8% at October 31, 2007
   from 5.4% at October 31, 2006
 * Finance receivables increase of $9.1 million or 5.1% for the
   quarter to $190 million
 * Debt to equity of 28.8% and debt to finance receivables of 19.7%

For the three months ended October 31, 2007, revenues increased 14.6% to $68.2 million compared with $59.5 million in the same period of the prior year. Income for the quarter was $3.5 million or $.29 per diluted share, versus a net loss of $1.9 million, or ($.16) per diluted share in the same period last year. The prior year loss included the effect of a non-cash increase in the allowance for loan losses at October 31, 2006 of $5.3 million (pre-tax). Excluding this charge to increase the allowance for loan losses, the Company earned profits of $1.4 million ($.12 per diluted share) during the quarter ended October 31, 2006. Retail unit sales were up 7.8%, with 6,914 vehicles in the current quarter, compared to 6,413 in the same period last year. Same store revenue increased 12.3% during the quarter. Finance Receivables grew by $9.1 million during the quarter or 5.1% to $190 million as the result of higher vehicle sales and sales of our new Payment Protection Plan product. The allowance for credit losses is 22% of Finance Receivables principal balance at October 31, 2007 and 2006.

Highlights of six month operating results:



 * Net income of $5.6 million or $.47 per diluted share vs.
   $2.2 million or $.19 per diluted share for the prior year
 * Overall revenue growth of 4.3% with same store revenue growth of
   1.6%
 * Retail unit sales decrease of 3.9%
 * Provision for credit losses of 22.4% compared to 29.5% for the
   prior year
 * Finance receivables increase of $11.4 million or 6.4% to
   $190 million
 * $3.5 million decrease in debt during the six month period
 * Cash flows from operations improved by $6.7 million to $3.2 million
   compared to ($3.5) million for the prior year

For the six months ended October 31, 2007, revenues increased 4.3% to $127.0 million, compared with $121.7 million in the same period of the prior fiscal year. Income for the first six months of FY 2008 was $5.6 million ($.47 per diluted share) compared to $2.2 million ($.19 per diluted share) for the same period in the prior year. Excluding the effect of the non-cash increase in the allowance for loan losses at October 31, 2006, the Company earned profits of $5.5 million ($.46 per diluted share) during the prior year period. Retail unit sales decreased 3.9% to 12,761 vehicles in the current period, compared to 13,280 vehicles in the same period last year.

"Vehicle sales were strong during the quarter as we are beginning to realize the benefits of our increased advertising efforts and numerous sales initiatives. Also, the market is recognizing our value proposition and our associates are excited and proud to be offering a superior value to our core market. We expect sales volumes to continue to be solid into the future. Additionally, we continue to focus significant efforts on our underwriting initiatives to enhance the quality of our Finance Receivable portfolio," said T. J. ("Skip") Falgout, III, Chairman of the Board of America's Car-Mart. "We are pleased with the improvement in our credit losses and the results of our collections efforts for the second quarter, but we have further progress to make in this vitally important area of our business. However, the positive results in the first two quarters of FY 2008 are good indicators that we are on the right track. Also, our recent initiatives related to vehicle acquisition and improved car quality are having a positive effect on both sales and collections."

"Credit losses, collections and current receivables all showed improvement. Our average percentage of Finance Receivables current was 83.3% for the quarter compared to 78.2% for the prior period," stated William H. ("Hank") Henderson, Chief Executive Officer and President of America's Car Mart. "In addition, our net charge-offs as a percentage of average Finance Receivables was 6.7% compared with 7.8% for the prior period. We continue to be disciplined in requiring higher down payments at certain dealerships and shorter terms with our loans to ensure we set the customer up for success. In fact, our average down payment percentage is 7%, compared to 6% for the prior period. The combination of these efforts has improved our operating cash flows and has allowed us to pay down our debt by $3.5 million during the year, while at the same time we have grown Finance Receivables by $11.4 million."

"We are beginning to see the positive effects of the numerous initiatives we have instituted in each area of our business, namely purchasing, underwriting, sales, and collections," stated Mr. Henderson. "These initiatives, along with product offerings for our customers, such as the Payment Protection Plan, allow us to continue to grow our business as we attract new customers and build upon our history of high repeat sales. Car-Mart's value proposition to our customer is unmatched by our competition. We will continue to build on this solid foundation to support our future growth."

Conference Call

Management will be holding a conference call on Tuesday, December 4, 2007 at 11:00 a.m. Eastern time to discuss first quarter results. A live audio of the conference call will be accessible to the public by calling (800) 309-9490. International callers dial (706) 634-0104. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling (800) 642-1687 (domestic) or (706) 645-9291 (international), conference call ID #25372956.

About America's Car-Mart

America's Car-Mart operates 93 automotive dealerships in nine states and is the largest publicly held automotive retailer in the United States focused exclusively on the "Buy Here/Pay Here" segment of the used car market. The Company operates its dealerships primarily in small cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information on America's Car-Mart, please visit our website at www.car-mart.com.

Included herein are forward-looking statements, including statements with respect to projected revenues and earnings per share amounts. Such forward-looking statements are based upon management's current knowledge and assumptions. There are many factors that affect management's view about future revenues and earnings. These factors involve risks and uncertainties that could cause actual results to differ materially from management's present view. These factors include, without limitation, assumptions relating to unit sales, average selling prices, credit losses, gross margins, operating expenses, collection results, operational initiatives underway and economic conditions, and other risk factors described under "Forward-Looking Statements" of Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2007 and its current and quarterly reports filed with or furnished to the Securities and Exchange Commission. All forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake any obligation to update forward-looking statements.



                           America's Car-Mart, Inc.
                      Consolidated Results of Operations
                  (Operating Statement Dollars in Thousands)

                                                  %     As a % of Sales
                                                Change  ---------------
                           Three Months         ------    Three Months 
                              Ended              2007        Ended
                            October 31,           vs.      October 31,
                          2007       2006        2006     2007    2006
                      ----------  ----------    ------   ------  ------
 Operating Data:
  Retail units sold        6,914       6,413       7.8%
  Average number of
   stores in operation      93.0        89.0       4.5
  Average retail units
   sold per store per
   month                    24.8        24.0       3.3
  Average retail
   sales price        $    8,496  $    7,957       6.8
  Same store revenue
   growth                   12.3%        1.4%
  Net charge-offs as a
   percent of average
   Finance Receivables       6.7%        7.8%
  Collections as a
   percent of average
   Finance Receivables      16.6%       16.0%
  Average percentage
   of Finance
   Receivables-Current
   (excl. 1-2 day)          83.3%       78.2%
  Average down-payment
   percentage                7.0%        6.0%

 Period End Data:
  Stores open                 93          90       3.3%
  Accounts over 30
   days past due             3.8%        5.4%
  Finance Receivables,
   gross              $  189,947  $  189,620       0.2%

 Operating Statement:
  Revenues:
   Sales              $   62,228  $   53,669      15.9%  100.0%  100.0%
   Interest income         6,015       5,870       2.5     9.7    10.9
                      ----------  ----------             ------  ------
    Total                 68,243      59,539      14.6   109.7   110.9
                      ----------  ----------             ------  ------

  Costs and expenses:
   Cost of sales          36,028      31,140      15.7    57.9    58.0
   Selling, general
    and administrative    11,630      10,446      11.3    18.7    19.5
   Provision for
    credit losses         14,232      19,848(a)  (28.3)   22.9    37.0
   Interest expense          820         927     (11.5)    1.3     1.7
   Depreciation and
    amortization             278         239      16.3     0.4     0.4
                      ----------  ----------             ------  ------
    Total                 62,988      62,600       0.6   101.2   116.6
                      ----------  ----------             ------  ------

    Income before
     taxes                 5,255      (3,061)              8.4    (5.7)

 Provision for income
  taxes                    1,789      (1,133)              2.9    (2.1)
                      ----------  ----------             ------  ------

    Net income (loss) $    3,466  $   (1,928)              5.6    (3.6)
                      ==========  ==========             ======  ======

 Earnings (loss) per
  share:
  Basic               $     0.29  $    (0.16)
  Diluted             $     0.29  $    (0.16)


 Weighted average
  number of shares
  outstanding:
  Basic               11,878,273  11,844,101
  Diluted             11,961,639  11,844,101

 (a) The 2006 amount includes a non-cash charge of $5,271,000 related
 to an increase in the allowance for credit losses to 22% from
 19.2% at October 31, 2006


                           America's Car-Mart, Inc.
                      Consolidated Results of Operations
                  (Operating Statement Dollars in Thousands)

                                                  %     As a % of Sales
                                                Change  ---------------
                            Six Months          ------     Six Months 
                              Ended              2007        Ended
                            October 31,           vs.      October 31,
                          2007       2006        2006     2007    2006
                      ----------  ----------    ------   ------  ------
 Operating Data:
  Retail units sold       12,761      13,280      (3.9)%
  Average number of
   stores in operation      92.5        88.0       5.1
  Average retail units
   sold per store per
   month                    23.0        25.2      (8.7)
  Average retail sales
   price              $    8,455  $    7,934       6.6
  Same store revenue
   growth                    1.6%        2.0%
  Net charge-offs as a
   percent of average
   Finance Receivables      13.2%       13.9%
  Collections as a
   percent of average
   Finance Receivables      33.8%       32.0%
  Average percentage
   of Finance
   Receivables-Current
   (excl. 1-2 day)          82.5%       78.6%
  Average down-payment
   percentage                7.3%        5.6%

 Period End Data:
  Stores open                 93          90       3.3%
  Accounts over 30
   days past due             3.8%        5.4%
  Finance Receivables,
   gross              $  189,947  $  189,620       0.2%

 Operating Statement:
  Revenues:
   Sales              $  115,091  $  110,007       4.6%  100.0%  100.0%
   Interest income        11,859      11,723       1.2    10.3    10.7
                      ----------  ----------             ------  ------
    Total                126,950     121,730       4.3   110.3   110.7
                      ----------  ----------             ------  ------

  Costs and expenses:
   Cost of sales          67,566      62,476       8.1    58.7    56.8
   Selling, general
    and administrative    22,825      20,916       9.1    19.8    19.0
   Provision for
    credit losses         25,751      32,504(a)  (20.8)   22.4    29.5
   Interest expense        1,630       1,829     (10.9)    1.4     1.7
   Depreciation and
    amortization             552         470      17.4     0.5     0.4
                      ----------  ----------             ------  ------
    Total                118,324     118,195       0.1   102.8   107.4
                      ----------  ----------             ------  ------

    Income before
     taxes                 8,626       3,535               7.5     3.2

 Provision for income
  taxes                    3,019       1,308               2.6     1.2
                      ----------  ----------             ------  ------

    Net income        $    5,607  $    2,227               4.9     2.0
                      ==========  ==========             ======  ======

 Earnings per share:
  Basic               $     0.47  $     0.19
  Diluted             $     0.47  $     0.19


 Weighted average
  number of shares
  outstanding:
  Basic               11,877,027  11,847,449
  Diluted             11,964,665  11,969,592

 (a) The 2006 amount includes a non-cash charge of $5,271,000 related
 to an increase in the allowance for credit losses to 22% from 19.2%
 at October 31, 2006


                       America's Car-Mart, Inc.
             Consolidated Balance Sheets and Other Data

                                        October 31,      April 30,
                                           2007            2007
                                        -----------     -----------

 Cash and cash equivalents              $       375     $       257
 Finance receivables, net               $   148,896     $   139,194
 Total assets                           $   185,295     $   173,598
 Total debt                             $    37,334     $    40,829
 Stockholders' equity                   $   129,787     $   123,728
 Shares outstanding                      11,878,463      11,874,708



 Finance receivables:
   Principal balance                    $   189,947     $   178,519
   Deferred Revenue - Payment 
    Protection Plan                     $    (3,595)    $        --
   Allowance for credit losses              (41,051)        (39,325)
                                        -----------     -----------

   Finance receivables, net of 
    allowance and deferred revenue      $   145,301     $   139,194
                                        ===========     ===========

   Allowance as % of principal balance        22.03%(a)       22.03%(a)
                                        ===========     ===========

 (a) Represents the weighted average for Finance Receivables generated 
 by the Company (at 22.0%) and purchased Finance Receivables.


 Changes in allowance for credit losses:

                                                Six Months
                                             Ended October 31,
                                           2007            2006
                                        -----------     -----------
  Balance at beginning of period        $    39,325     $    35,864
  Provision for credit losses                25,751          32,504
  Charge-offs, net of collateral 
   recovered                                (23,983)        (26,403)
  Allowance related to purchased 
   accounts                                     (42)            143
                                        -----------     -----------

    Balance at end of year              $    41,051     $    42,108
                                        ===========     ===========


        

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