ROGERS, Ark., Dec. 05, 2022 (GLOBE NEWSWIRE) — America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced that its subsidiary, America’s Car Mart, Inc. (the “Company”), has entered into a definitive agreement to purchase the ongoing dealership assets of Credit-Line, Incorporated and Loanco., Inc., both Texas corporations doing business as Taylor Auto Credit (“Taylor Auto Credit”). As a result, the Company will be entering a new market in Taylor, Texas (Northeast of Austin). The existing finance receivables will be excluded from the transaction and will be collected by the seller. The Company expects to close the agreement prior to December 31, 2022.
“As previously communicated, we expect acquisitions to continue to generate outstanding returns for our shareholders, an exit strategy for owner-operators, and future growth opportunities for their associates,” said Jeff Williams, Chief Executive Officer. “In our markets, the best competitors have generally been a subset of the owner-operated dealerships – those operated by individuals who have chosen not to borrow excessively, focus on getting a sound automobile to their customers on reasonable terms, and provide both friendly service and disciplined collections. We believe we have developed a successful acquisition template which works for both parties.”
“We are excited to be adding the Taylor, Texas area to our footprint and expanding our customer base in a thriving and growing market. Samsung is currently building a $17 billion semiconductor plant near Taylor, expected to bring 1,800 jobs to the area,” said Mr. Williams. “Taylor Auto Credit brings a rich history of serving customers with a talented team of associates that we welcome into the Car-Mart family. We are excited for the opportunities to grow our business in this market. In addition, we also expect to close on our previously announced acquisition of the second Smart Auto location in Knoxville, Tennessee at the end of December 2022 as well.”
“Taylor Auto Credit, owned and operated by Keith and Marcia Hagler, has been in business since 1990. Their values align perfectly with ours. We are looking forward to getting to know customers and to continue their great history of ‘keeping them on the road’,” added Mr. Williams. “They will be a fantastic addition to our business and will help us build a better future for the Company, our associates, and our customers,” said Mr. Williams.
“Taylor Auto Credit has called Taylor, Texas home for over 30 years. With that being said, we are elated to announce America’s Car-Mart’s acquisition of Taylor Auto Credit. This acquisition is exciting news for Taylor, Texas and all surrounding areas,” said Keith Hagler. “Our goal at Taylor Auto Credit has always been to keep our customers on the road, while providing the best customer experience from day one; America’s Car-Mart will continue to do just that. My wife, Marcia, and I are thankful that we have the opportunity to join one of the largest publicly held automotive retailers in the United States in our industry. After 30 years, seeing the end of Taylor Auto Credit is sad, but giving our team a future is the main priority. America’s Car-Mart is superior and will provide a better future for all associates and future customers. We are thankful for the leadership within Car-Mart; they have a heart for people which has resulted in success and will continue to do so for generations to come. We are thankful for this opportunity and ready for what lies ahead.”
About America’s Car-Mart
America’s Car-Mart operates automotive dealerships in twelve states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company specializes in the sale of quality, pre-owned vehicles, and features flexible used car financing options for customers with bad credit, no credit, repossessions or even past bankruptcy and emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company’s future objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations regarding future growth and operating performance, including with respect to the Company’s acquisitions of Taylor Auto Credit, Smart Auto and other potential future acquisition opportunities, and can generally be identified by words such as “may,” “will,” “should,” “could, “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and other similar words or phrases. These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:
- the ability to successfully identify and complete new acquisitions on conditions that are favorable to the Company;
- the possibility that an acquisition does not close when expected or at all because required conditions to closing are not received or satisfied on a timely basis or at all;
- the risk that the benefits from a transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, consumer finance laws and regulations, and the degree of competition in the geographic and business areas in which the Company and the acquired business operate;
- the ability to promptly and effectively integrate the businesses of the Company and the acquired company;
- the reaction to the transaction of the companies’ customers, associates and counterparties; and
- diversion of management time on acquisition-related issues.
Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
Contacts: Jeff Williams, CEO at (479) 464-9944 or Vickie Judy, CFO at (479) 464-9944
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