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Rent-A-Center for used cars

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• Used Vehicle Sales: Sells pre-owned cars, trucks, and SUVs directly to consumers.
• Customer Financing: Provides in-house financing options for the vehicles it sells, primarily to customers with limited access to conventional credit.

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1. **Individuals with No-to-Limited Access to Traditional Credit:** This is America's Car-Mart's core customer base. They cater to individuals who generally cannot obtain vehicle financing from traditional lenders such as banks, credit unions, or conventional finance companies due to factors like low credit scores, limited credit history, or past financial challenges.
2. **Customers Seeking Integrated Sales and Financing (Buy Here, Pay Here Model):** These customers are specifically looking for a one-stop solution where they can both purchase a used vehicle and secure financing directly from the dealership. This "buy here, pay here" model is crucial for individuals who require in-house lending due to their credit profile and circumstances.
3. **Individuals Seeking Affordable and Reliable Used Transportation:** While not strictly a credit-based category, the company implicitly serves customers who are in need of functional and affordable used vehicles. These customers prioritize basic transportation needs and value, often operating within a budget that aligns with the used car market segment and the available financing terms.

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Douglas W. Campbell, Jr. Chief Executive Officer and President
Douglas W. Campbell, Jr. became Chief Executive Officer and President of America's Car-Mart in October 2023, having served as President for the prior year. Before joining America's Car-Mart in 2022, he held the position of Senior Vice President, Head of Fleet Services for the Americas, at Avis Budget Group. His responsibilities at Avis Budget Group included leading wholesale, retail, and factory program disposals, overseeing the strategic growth of direct-to-consumer initiatives, and modernizing a business-to-business online direct sales platform. Prior to Avis Budget Group, he worked in both corporate and field leadership capacities at AutoNation, and spent 15 years at Coral Springs Auto Mall, where he advanced from finance manager to executive general manager, managing various new and used vehicle brands.

Jonathan Collins Chief Financial Officer
Jonathan Collins assumed the role of Chief Financial Officer for America's Car-Mart in May 2025. Before his tenure at Car-Mart, he served as CFO for Walmart Africa, where he was responsible for financial strategy and operations across more than 300 stores in eight African countries. His career at Walmart also included various financial leadership positions such as Chief Accounting Officer, Controller, FP&A, and Internal Audit across assignments in the U.S., Canada, India, and South Africa. Earlier in his career, Collins was a Management Consultant at KPMG, providing CFO advisory services, and worked as a software developer and Chief Architect for Alltel Information Systems. He is a Certified Public Accountant (CPA) and holds degrees in computer science and accounting, as well as a master's degree in accounting and an MBA.

Jamie Z. Fischer Chief Operating Officer
Jamie Z. Fischer was appointed Chief Operating Officer of America's Car-Mart in October 2024. Prior to this role, she served as Head of Operations at DriveTime Automotive Group, Inc. since 2021. Her experience at DriveTime also includes serving as Senior Managing Director of Retail and Inventory Operations from 2018 to 2021, and various leadership roles in operations and human resources management for DriveTime and its affiliate, SilverRock, Inc., from 2012 to 2018. She brings over two decades of experience in the auto retail industry, specializing in operations, leadership development, and customer service.

Vickie D. Judy Chief Accounting Officer
Vickie D. Judy transitioned to the role of Chief Accounting Officer in May 2025, after serving as Chief Financial Officer for America's Car-Mart since October 2018. She has been with the company since 2010 and played a significant role in expanding the company's loan portfolio, which increased by over 450% under her leadership.

Jeffrey A. Williams CEO Emeritus
Jeffrey A. Williams currently serves as CEO Emeritus for America's Car-Mart. He previously held the position of Chief Executive Officer from January 2018 to September 2023, President from March 2016 to October 2022, and Chief Financial Officer from 2005 to January 2018. Before joining America's Car-Mart, Williams gained approximately seven years of experience in public accounting with Arthur Andersen & Co. and Coopers and Lybrand LLC. He also served for about five years as Chief Financial Officer and Vice President of Operations at Wynco, LLC, a national distributor of animal health products.

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America's Car-Mart (CRMT) faces several key risks to its business model, primarily stemming from its focus on subprime lending and the inherent financial vulnerabilities associated with this market segment.

1. High Credit Risk and Loan Loss Exposure: America's Car-Mart primarily serves "budget-conscious consumers" with "poor or limited credit histories," providing financing for almost all its customers through a "buy here, pay here" model. This exposes the company to significant credit risk, resulting in high credit losses (net charge-offs) and increased delinquencies. The impact is exacerbated by "continued inflationary pressure and increasing interest rates" which can further strain its customer base's ability to make payments.
2. Financial Health, Liquidity, and Debt Burden: The company has been classified as "Distressed," indicating concerns about its overall financial health. It has operated with a high net-debt-to-EBITDA ratio, suggesting it is "overleveraged," and has previously faced a "short cash runway" that could lead to "dilutive financing" if operational performance deteriorates. While a recent $300 million term loan has addressed some past funding constraints, this debt carries a "higher cost," contributing to the company's financial fragility. The probability of bankruptcy for CRMT is cited at 26.87%.
3. Regulatory Scrutiny and Disclosure Issues: America's Car-Mart has experienced delays in filing its Annual Report on Form 10-K due to "omissions in disclosure related to loan modifications for borrowers experiencing financial difficulty." This led to the company concluding that "certain previously issued financial statements should no longer be relied upon" and identifying "deficiencies in its internal control over financial reporting," including one or more material weaknesses. These issues can undermine investor trust and pose challenges to maintaining compliance with Nasdaq listing standards.

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The emergence of digital-first auto lending platforms and online car marketplaces that increasingly leverage advanced data analytics (such as AI and machine learning, and alternative credit data) to underwrite and facilitate financing for subprime and near-prime customers. These platforms are starting to offer a more convenient, often online-only, path to vehicle ownership and financing, potentially eroding the necessity and competitive advantage of America's Car-Mart's traditional 'buy here, pay here' physical dealership model.

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America's Car-Mart (CRMT) operates primarily in the used car sales and subprime auto lending markets within the United States.

The addressable markets for their main products and services are as follows:

• Used Car Market (U.S.): The United States used car market size reached 38.6 million units in 2025, with projections to reach 51.4 million units by 2034. In terms of value, the U.S. used car market is estimated at USD 1.05 trillion in 2025 and is expected to reach USD 1.20 trillion by 2030. Another estimate places the market size at USD 253.47 billion in 2024, with an expectation to reach USD 591.12 billion by 2035.
• Subprime Auto Lending Market (U.S.): The market size of subprime auto loans in the U.S. is approximately USD 19.3 billion in 2025. This segment serves borrowers with low credit scores who may not qualify for conventional loans. The broader U.S. auto loan market, which includes subprime lending, was USD 676.20 billion in 2025.

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America's Car-Mart (CRMT) anticipates future revenue growth over the next 2-3 years through several key drivers, focusing on strategic expansion, technological advancements, and optimized financial management.

1. Strategic Acquisitions and Geographic Expansion: The company is committed to accelerating the pace of acquiring new dealerships and exploring opportunities to expand into additional states. This strategy aims to directly increase its market presence and sales volume by integrating new locations into its existing operational framework.

2. Leveraging Technology for Enhanced Sales, Underwriting, and Collections: America's Car-Mart is investing significantly in technology initiatives, including the implementation of a new Loan Origination System (LOS) and an upgraded "Pay Your Way" digital payment platform. These tools are designed to streamline the sales process, improve the accuracy of risk identification, enhance customer service, and boost collection efficiency through expanded self-service channels and automated reminders.

3. Growth and Optimization of Finance Receivables: A primary component of the company's revenue is interest income from its finance receivables. Growth is expected through continued improvements in underwriting and disciplined risk management, leading to better loan quality and a larger, healthier portfolio. Initiatives like risk-based pricing and a focus on affordability are intended to expand the addressable market while maintaining or improving portfolio performance.

4. Expansion of Ancillary Product and Service Offerings: America's Car-Mart aims to increase revenue per unit by enhancing and expanding its offerings of ancillary products, such as "Service Contract Plus" and "Accident Protection Plan." These additional services contribute to a higher average retail sales price and provide added value and peace of mind for customers.

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Share Repurchases

• On December 14, 2020, the Board of Directors authorized the repurchase of up to an additional one million shares.

Share Issuance

• In the second quarter of fiscal year 2025 (ending October 31, 2024), America's Car-Mart completed an underwritten public equity offering, generating net proceeds of $73.8 million.
• During the same quarter, the company also completed a private asset-backed securitization offering, which resulted in net proceeds of $297.9 million. These proceeds were primarily utilized to pay down existing debt.
• In October 2025, in connection with a new $300 million term loan, the company issued warrants to Silver Point to purchase up to 10% of fully diluted common stock, with an expiry date of October 30, 2031.

Outbound Investments

• In the first quarter of fiscal year 2025 (ending July 31, 2024), the company invested $13.6 million in dealership acquisitions.
• America's Car-Mart acquired one new dealership during the fiscal year 2024. Acquisitions completed in fiscal year 2024 are projected to add an additional 5,000-6,000 accounts over 18-24 months.

Capital Expenditures

• In the first quarter of fiscal year 2025 (ending July 31, 2024), the company purchased fixed assets of approximately $986,000.
• For the second quarter of fiscal year 2025 (ending October 31, 2024), fixed asset purchases amounted to $1.4 million.
• The company continues to make infrastructure investments aimed at improving the performance of existing dealerships and supporting the growth of its customer base.