America's Car-Mart 4Q profit falls 15% but beats estimates.(Public Company Reports)(Financial report)

America's Car-Mart Inc. said fourth-quarter profit fell 15 percent to $5.1 million, or 43 cents a share, from $6 million, or 51 cents a share, during the same quarter last year.

But the used car dealer, with a buy-here, pay-here model, beat analyst estimates of 38 cents a share.

The company said quarterly revenue was $77.9 million compared with $76.5 million during the same quarter last year.

The company noted a slight decrease in vehicles sold--7,391 vs. 7,451--and declining margins, 47.1 percent from 47.6 percent.

For its fiscal year, which ended April 30, the company said net income increased 19 percent to $17.9 million, or $1.52 a share, compared with $15 million, or $1.26 a share, for fiscal 2008. Earning for fiscal 2009 was reduced by 8 cents for a change in fair value of interest rate swap of $10.5 million.

For the year, revenue increased 8.9 percent to $299 million, compared with $275 million for the prior year.

"To be able to grow profits by 19 percent and revenue by 8.9 percent (to almost $300 million) in the current environment is a testament to the strength of our business model," said President and CEO William H. "Hank" Henderson.

The company has opened three new dealerships in the past 60 days and plans to open about five more dealerships through the remainder of fiscal 2010.

Henderson said he was happy that legislation affecting interest rates in Arkansas had made it through Congress and was awaiting President Obama's signature. The legislation will allow Car-Mart to raise its interest rate from the current 5.5 percent to 12 percent, at least until Dec. 31, 2010.

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