America's Car-Mart, Inc. Increases and Extends Credit Agreements


BENTONVILLE, Ark., Dec. 15, 2008 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (Nasdaq:CRMT) today announced it has amended its Revolving Credit Agreements with a group of lenders. The amendments include an increase in total permitted borrowings of up to $61.5 million, up from $60 million and an extension of the due date to April 30, 2010. Additionally, existing tiered pricing levels will remain in effect but will be subject to a 4.25% floor. At October 31, 2008, the end of the Company's second fiscal quarter, there was $21.5 million in additional availability under the Revolving Credit Agreements.

"We continue to have what we believe to be the strongest balance sheet in our industry. Our debt to equity and debt to Finance Receivable ratios at October 31, 2008 (25.5% and 16.9%, respectively) were at their lowest levels since the first quarter of fiscal 2005. This is the result of our continuing focus on cash flows and our ability to grow our top line and consistently increase Finance Receivables without increasing our overall debt levels. Since April 30, 2002, we have grown Finance Receivables by $148 million and have actually paid down a net $2 million in debt," said Jeff Williams, America's Car-Mart's Chief Financial Officer.

"With the significant disruption in the credit markets over the last several months we are even more proud of our healthy balance sheet and are well positioned to continue to grow from our internally generated cash flows and increases in our Revolving Credit Agreements, if needed. Based on our strong long-term relationship with our lead lender, our low leverage and our strong operating performance we feel that our ability to continue to grow our business into the future will not be hampered by instability in the credit markets," added Mr. Williams.

About America's Car-Mart

America's Car-Mart, founded in 1981, operates 92 automotive dealerships in eight 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 emphasizes superior customer service and the building of strong personal relationships with its customers. 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, 2008 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.



            

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