Thank you for standing by, and welcome to America's Car-Mart Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. As a reminder, today's call is being recorded. I will now turn the call over to your host, Ms. Vickie Judy, America's Car-Mart CFO. Please begin.

Thank you, and welcome to America's Car-Mart's second quarter 2024 earnings call. Joining me today is Doug Campbell, who took over as our company's CEO on October 1, 2023. We've issued our news release earlier this morning, and it is available on our website. We've updated our reporting format with a simplified look, providing an efficient and easy comparison of important metrics against the prior corresponding quarter and commentary about our results. In addition, we will post a transcript of our prepared remarks following this call. We are having some technical difficulties this morning, but those should be up shortly. And those will help further illustrate many of the talking points that we're going to cover in our call today. The Q&A session will be available through the webcast after the call. We believe that this process will help enhance how we share our quarterly results with you, and we welcome your feedback. During today's call, certain statements we make may be considered forward-looking and inherently involve risks and uncertainties that could cause actual results to differ materially from management's present view. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The company cannot guarantee the accuracy of any forecast or estimates nor does it undertake any obligation to update such forward-looking statements. For more information, including important cautionary notes, please see Part 1 of the company's annual report on Form 10-K for the fiscal year ended April 30, 2023, and our current and quarterly reports furnished to or filed with the Securities and Exchange Commission on Forms 8-K and 10-Q. I will now turn it over to Doug for his introductory comments about our second quarter.

Good morning, and thank you for joining us and for your interest in our company. First, I'd like to thank our associates for their relentless focus on keeping our customers on the road. I also appreciate all the many messages I've received on my appointment as CEO. It means a lot. So thanks for that. I want to take a moment to recognize the passing of Hank Henderson, one of our board members and CEO prior to Jeff Williams. His contributions here at the company and in the community, to his family will leave an indelible mark. He was a valued board member and a longtime shareholder. His pointed advice to me about the opportunity to be a CEO has a different meaning today. So thank you, Hank. During the quarter, we identified someone with a similar profile that has a long-term view of the business. As such, we've recently added Jonathan Bupa from Nantahala Capital Management to our board. He brings many years of experience within specialty finance, including subprime installment lending, online lending, and lease to own retail. He is a shareholder as well, and we're excited to have him join our board. Now I'd like to address the quarter. If I were on the other end of this call, I'd have a lot of questions about the results and particularly credit losses. I'd ask you to bring into context that GAAP accounting requires us to report our results as a retailer with an accounts receivable balance of almost $1.5 billion originated over the last four years. As the business grows, the impact of reserves and credit adjustments on our portfolio originated over a four-year period becomes even larger in relation to the quarterly results. The way we measure our business is the cash we collect over time relative to the money that we put out on the street. If you look over time, we've never had a pool of loans in which we earned cumulative cash returns less than 50% in excess of the cash outlay over the life of the contracts. What has changed is that it takes longer to recognize it. But 10 years ago, we put $1 out on the street and got approximately $1.60 back over time, and that's still the case. Let me also tell you why I came to Car-Mart. Over the last 5 or 6 fiscal years, the business has generated almost $600 million in free cash flow. The company has repurchased $156 million in shares, growing the net accounts receivable balance by $739 million, funded various capital expenditures of almost $78 million, while funding increased inventory of $79 million in a growing business. They've been able to do this because the underlying pools of receivables that the company has originated have consistently produced cash flows in excess of the cost to operate the business over time. This remains the case. Additionally, this segment of automotive is large and a growing part of our industry. The ability to really help consumers who have little to no access to credit from an industry leader with a great track record and abundance of opportunity made it attractive, especially when you consider the opportunity to feather in my skill set and industry best practices with Car-Mart's unique culture. It has the power to take the business to the next level, and that's what I'm focused on. Today, we reported revenue increase of 2.8%. That was primarily driven from a 23% increase in interest income. Sales volumes were down 4.6%, but sales revenue only saw a decline of 0.4%. Diluted sales revenue was a product of a 5.6% increase in the quarterly average selling price, moving from $18,025 to $19,035 year-over-year. Approximately 40% of this increase was related to the vehicle selling price, but 60% was related to the increased revenue for ancillary products. Sequentially, the quarterly average selling price was relatively flat. As far as sales volumes, we finished the quarter with 15,162 units versus 15,885 units sold last year. August and September had respectable volumes and collectively posted a gain in sales year-over-year, but October sales results were down. Several items contributed to the sales decline witnessed in October, and I'll talk about that shortly. Web traffic was consistent and still posted gains year-over-year. Online credit applications for the quarter were also positive by 19%, yet there was a decrease in showroom traffic. Additionally, launching several states onto our new loan origination system, or LOS, was a contributing factor that I'll discuss more in a moment. Overall, we're trying to balance sales volume with our new system, onboarding new stores, and introducing new underwriting guidelines. We spent the better part of last year rolling out the consumer application portal for LOS, which allows the consumer to apply faster, have a soft credit pull during the application process and get a response via text regarding the status of their application as well as centralized appointment setting. We're now in the second phase of our LOS rollout, which is related to underwriting and how sales are being originated. During the quarter, we onboarded three additional states, bringing the total to five states, which account for about 45% of our revenue at quarter end. We started out the fiscal year rolling out the dealer-facing portion of this tool. As a reference, our legacy system had limited ability to influence outcomes but served as a stable platform to originate deals and manage associated costs. Our original intent was to roll the system out with similar underwriting rules as our legacy system, allowing users to learn the system over time but giving us enhanced data and visibility. However, with a backdrop of increasing credit losses, we made the strategic decision to implement new underwriting rules, which primarily sought to decrease terms and increase down payments. The initial results were very positive. When looking at originating terms, we finished at 44.1 months for the quarter. While this is up year-over-year, it's down sequentially by 0.6 months. It's the largest decrease we've seen since July 2019. The originating terms during the quarter for our legacy system were approximately 44 months and 42 months on the new LOS. Originating terms were down in both systems and both trended downward throughout the quarter. Average down payments for the quarter were 4.9% and relatively flat when viewed sequentially, but down 30 basis points year-over-year. Yet when comparing the two originating systems, we collected nearly 1 point more inbound payment on the new LOS, generating 5.5% down and 4.6% at ALIS. This demonstrates how effective the system is, and our teams are pushing for improved deal structures despite the seasonality we normally see with cash down payment percentages. The benefits of LOS are no longer theoretical. It's deployed in about half of our stores already, and we couldn't think of a more opportune time to begin testing its capabilities. These combined results show that we can more quickly and precisely adjust parameters. And with any new system, there are growing pains. We project to have the LOS completely rolled out in the third quarter prior to tax season. Ultimately, we're striving to achieve higher volumes with better deal structures to help our customers be more successful, and we're confident the investment will have long-term positive impacts. While adding a level of sophistication to our underwriting is critical, a large part of our result is a function of our servicing efforts after the sale, which we must continue to execute at a high level. The gross margin initiatives we are focused on continue to bear fruit and improved materially year-over-year. Sequentially, there was a small decrease, but this was a function of the sales mix I discussed earlier. We also continue to improve the age and mileage of vehicles we're purchasing compared to the prior year. During the quarter, we were able to bring down our average purchase cost of vehicles despite the UAW strike and any noise it created. If you reference Slide 4 in the supplemental material on the website, I've included two charts. In the first chart, we put our average purchase cost against Cox’s MMR Index, which tracks price movement throughout the year on a set basket of goods. We're improving our timing here, which ultimately will reduce how we own that vehicle relative to a given book value at the time of contract origination. It's evident we're moving with the market better, despite doing this with lead times of three to four weeks. The second chart shows, during the same period, that we've improved the quality of the assets by purchasing newer and lower mileage vehicles. These are material changes, which lower repair costs during initial reconditioning and while under a service contract, contributing to better gross margins. Combined with the inventory procurement and our marketing management processes implemented last year, we're delivering operational improvements for our customers and the company. We've made great strides in both our procurement and remarketing capabilities, and a key driver going forward will be our ability to resell more of these vehicles that are repossessed. The opportunity today is considerable and continues to grow as newer vehicles cycle through our portfolio. We've engaged a national provider to perform reconditioning and improved vehicle quality, which will, in turn, help drive the overall average cost down, improve gross margin, reduce credit loss, and enhance cash flow. We will launch this during the third quarter. This is also critically important to addressing the affordability headwinds for our consumers. I want to touch on net charge-offs and overall credit losses. Although the macro environment has seen some cooling of inflation over the quarter, the lingering financial and psychological effects of the worst part of inflation in four decades continue to impact our consumers. Goods and services are still far pricier than they were just three years ago, with the economic inflationary pressures on our customers now more prevalent in all areas of their lives. Things like higher energy costs, food, housing, and auto insurance, just to name a few. This is the largest contributing factor that drove an increase in the frequency of losses during the quarter of 24%. The unit losses on repossessions peaked in September and came down slightly in October. Our 30-day plus delinquencies also improved during that same time frame, which are both positive signs, but we remain cautiously optimistic about this movement. I will now turn things over to Vickie on more details on the financials.

Thank you, Doug. In my commentary, the comparisons that I will cover will be the second quarter of 2024 versus the second quarter of 2023, unless otherwise noted. Our revenues for the second quarter were $361.6 million, up 2.8% from last year's prior period. The year-over-year increase is primarily due to the 23% higher interest income. As Doug mentioned, we did have a decrease in unit volumes. Our sales volumes became more challenging as we moved throughout the quarter, and most of this decline came in the last month of the quarter. Although we did have some operational challenges as we implemented our new LOS, there was also a dampening in the overall used vehicle market because of continued affordability challenges for our consumer. When combined, the softness in the market, the continued elevated vehicle prices, and onboarding stores to the LOS, we have less predictability in short-term sales volumes than we would have otherwise expected. With that said, the application volumes remain robust. Our LOS onboarding will be completed in the third quarter, and the work we are doing to improve affordability should mitigate some of these challenges. The gross profit dollars per retail unit sold improved by 11.5%, and the gross profit percentage increased 220 basis points, a result of the initiatives around inventory life cycle efficiencies from the procurement, reconditioning, wholesaling efforts, and repairs after the sale. Sequentially, gross profit dollars improved slightly by 1%, and the gross margin percentage was 30 basis points lower, primarily due to the lower sales volumes in October. We expect further improvements in our gross margin percentage as volumes improve, and we scale and fully operationalize our initiatives. Due to our operational efficiencies, our inventory dollars decreased by $16.5 million from the prior year quarter. Quarterly inventory turns improved to 7.1 compared to 6.7. Annualized was $44.9 million or 14.9% of sales, up from the prior year quarter of $42.9 million, but down sequentially $1.6 million from $46.5 million. The primary reduction sequentially was a $3.2 million reduction in stock-based compensation, partially offset by increased cost and collection expenses and professional fees related to the implementation of our new technologies. Since the quarter end, we have made adjustments to our operating expense structure. First, we reduced the size of our corporate workforce by 10% through a series of strategic decisions. We've also limited hiring, reduced our marketing spend, and curtailed the use of some professional services. We will continue to evaluate spending at both the dealership and corporate levels, and we're committed to driving cost efficiencies in the business and implementing cost savings initiatives over the next quarter. That, when combined with our technology and business investments, we expect to provide SG&A cost leveraging opportunities as we move forward. However, we continue to serve an expanding customer base with over 104,000 customers, a 6% increase over the prior year quarter. SG&A per average account improved and was $424 compared to $439 in the prior year and $449 sequentially. On credit losses, our net charge-offs as a percentage of average finance receivables were 7.2% versus 5.8%. This compares to our prior 10-year average for the second quarter of 6.2%, and that includes the positive COVID periods. As a comparison to pre-COVID periods, our average net charge-offs for the five-year period pre-pandemic were 7% for the second quarter.

That's a great point, Vickie. If you reference Chart 1 on Slide 5, we've indexed wholesale prices back to 2017 to show what happens over a three-year period with price in a normalized environment. I specifically called out two points to illustrate what happens with price between origination and a default as an example. In Chart 1, the periods I've identified for origination and default show approximately a 9% or 10% reduction in depreciation. Chart 2 reflects the wholesale price movement from 2021 to 2023 year-to-date. I've shown similar timing of origination and defaults, and it clearly shows the price degrading in excess of 25%. This is why severity is more pronounced than normal. This is not a dynamic that's specific to Car-Mart but an industry-wide issue that most lenders will have to contend with at some point.

Thank you, Doug. We believe that the shorter nature of our contracts is leading us to see trends earlier than others. Historically, industry metrics measuring delinquency and default rates have moved together, but now we see increasing delinquencies without a corresponding rise in defaults. As a management team, we are sticking to our historical collection practices due to our extensive experience with subprime customers. The positive aspect is that we have surpassed the peak of expected losses from these pools. While these pools are difficult, they still offer over 50% cash-on-cash returns and around a 35% internal rate of return. Due to the heightened losses in our quarterly analysis, we raised the allowance for credit loss from 23.91% to 26.04%, leading to a $28 million charge to the provision expense, equating to an earnings loss of $3.40 per share after tax. Structural changes in our portfolio due to rising vehicle costs, longer terms, and our customers' current economic situation are driving higher provisions for credit losses. Our allowance reflects anticipated losses on a $1.5 billion portfolio, and any change can significantly affect quarterly earnings, especially based on retail business sales. Our pools have consistently yielded positive cash-on-cash returns and favorable IRRs, but as vehicle prices have risen and terms extended from about 30 to 44 months, our breakeven point has been delayed and IRRs have decreased, although they remain solid. You can find more details on the performance of these pools on our website. Our accounts more than 30 days overdue were 3.6%, consistent with the same quarter last year and improved from 4.4% sequentially. As a percentage of accounts receivable, our total dollars overdue improved by 213 basis points sequentially, which is significant since the quarter ended on a Tuesday, typically the peak day for delinquencies. The average contract term for the quarter was 44.1 months, an improvement from last year’s 42.6 months and sequentially from 44.7. We expect the lower delinquency to lead to improved losses in the next quarter. The overall weighted average contract term, including modifications, was 47.3 months compared to 44.8 months in the prior year and 46.9 months sequentially. The average age of our portfolio improved to 10.8 months. The share of our portfolio with high-quality credit customers continues to rise compared to last year and remained stable sequentially. We plan to be more aggressive with our capital allocation moving forward. This quarter, we closed another location, making it three for the fiscal year. We will add a newly acquired dealership in the third quarter, reallocating capital from underperforming stores to stronger assets, benefiting the company overall. We will keep evaluating the capital invested in each dealership and other ventures to maximize returns. Our interest expenses are significantly affecting our earnings potential, with over 60% of the increase stemming from higher interest rates and the rest from higher average borrowings. The total amount of our securitized non-recourse notes payable stood at $489 million, after accounting for $90 million in restricted cash related to these notes. We are also considering redeeming our first series of asset-backed nonrecourse notes issued in April 2022 since we've met the conditions for repurchasing the securitized receivable under the note's terms. This move will release some well-established collateral. By the end of the quarter, we had $4.3 million in unrestricted cash and around $86 million in additional availability under our revolving credit lines based on our current borrowing base of receivables and inventory. Our access to capital, combined with a $600 million revolving credit facility, an effective securitization program, and an active shelf registration, gives us a competitive edge. Other competitors may face greater challenges in securing capital in the future. Our non-recourse securitized notes form the majority of our funding, and our cost of funds is influenced by interest rates and credit spreads. We have summarized the key factors affecting EPS for the quarter on Slide 7. In conclusion, we are dedicated to growth and responsible financial management. Our focus is on delivering value to our shareholders through strategic investments, operational efficiency, and our commitment to keeping our customers on the road. Thank you, and I will hand it over to Doug to wrap this up.

Thanks, Vickie. We continue to optimize our footprint and leverage our investments in technology and infrastructure. Our ERP implementation begins next calendar year, which will reduce the need for several manual and redundant processes. We are excited to have Central Auto Sales as a new addition to our dealership group that we expect to close in December. We're actively evaluating several opportunities in our market geographies to acquire productive stores, which offer operators an exit strategy and continue their great work on servicing customers in their communities. This last acquisition has sales volume on par with our largest stores in the country, and we're excited to have some new partners to help us grow. Before we take questions, I want to reiterate that our team is extremely focused on executing our strategy for the back half of fiscal year 2024. Overall, we believe our keen focus on operational efficiencies, reducing costs, and prudent capital management will enhance our competitive advantages. The overall macro environment remains challenging for Car-Mart's core customers, both existing and prospective, but they need the service we provide. While we're disappointed to show a loss during the current quarter, the underlying cash-generative nature of our business continues to position us for long-term profitable growth. Now we'll open up the line for questions. Operator, please provide instructions to do so.

Thank you. Our first question comes from the line of John Rowan from Janney Montgomery Scott.

Good morning. Doug, I want to echo your sentiment about Hank, especially since I'm going to reference him here in one of my questions. You mentioned that the cash-on-cash return is still the same at 1.6 times what it was historically for the company. I just want to make sure I understand that metric correctly and whether or not we have to adjust it for timing because you say it's the same, but it's taking a 45-44 months duration; it's taking 50% longer to get to that return. I remember my first meeting with Hank, and when he was CEO and Jeff was CFO, he said, we're never going over a 30-month duration, right? Is that still the right metric to look at, given how much longer it's taking to collect the cash?

Yes. So that's an undiscounted return, John. So again, putting $1 out and getting $1.60 back, when you discount that back for time in the longer term, that's when I was mentioning the IRRs, which are certainly lower, but still very positive. If you think about the last couple of years, I think we've talked about this on a few calls; we could have chosen just to sit out of the market and not serve these customers, but we chose to go ahead and participate and extend the term. We're really working on the quality of the vehicle and have improved that since that COVID period of time. Overall and over time, it's still a good return on the output of those pools.

Yeah. John, I'd also echo Vickie's sentiments. I appreciate your commentary about Hank. I'm sure if you went back in time and asked him if he could envision a day where we're going to sell 60-plus cars at $19,000 apiece, you probably would have pushed back on that, too. But the environment has changed. I think with other large competitors closing, it creates opportunities for us as well. We're feeling ourselves out for what that right term is. That's why it's so important to have these new initiatives like the LOS, which will enable us to drive that and have some centralized thought about what terms should be and how we can actually get there.

Okay. Your press release did mention some underwriting changes in October, impacting volume. What were those? Should we expect a reduction in originating term? I assume there was a heightened level of modifications in there since the originating term came down. Can you just break those two pieces out and what the underwriting changes were?

The underwriting change is primarily focused around term and down payment. We had made some mild adjustments at the very beginning of the quarter. As we saw credit losses change, we pulled back and really wanted to focus on highly rated customers and down payments. We weren't sure how much effect that would have on sales. We were really surprised by the results. I think we're still trying to figure out what that right term is, because what we need to balance is that and sales volumes. Historically, we've served the customer that we underwrite and it provides a good return. But now we can really dial in and focus on highly rated customers. That's the real upside of the opportunity to augment the portfolio.

Okay. And can you address whether or not there was increased modifications?

We have not seen an increase in modifications compared to historical trends. The overall portfolio term was up 0.4 months, including those modifications. We are working with our customers in this environment, same as we have historically. But I think we mentioned, too, that we're also ensuring that anything that's not going to be a producing asset or the consumer is not able to keep making payments, we're not kicking those down the road. We're taking our lumps as we go here.

One more thing on that. It's one of the things that Vickie called out when you look at delinquency rates and default rates and the divergence of those two, which historically have moved in tandem. Our experience in working with these customers says continue to run our play. Our deep experience tells us that things don't materially get better over time when working with this tranche of customers. We've got to cycle through these losses, if that's what it means. We're staying focused on running our play.

Okay. And then just two more. I'll lump them into one question. What's the outlook for share repurchases? Given the loss you reported here, is there anything on the synergy side? Are you close to any amortization events in the ABS facilities?

Share repurchases will continue to be part of our capital allocation as we look ahead. We do want to ensure that we're taking advantage of the opportunities that we have in front of us right now on these acquisitions and not miss out on any of those in the current market. But repurchases will continue to be a part of that. On the ABL side, we are working on our renewal of our ABL currently. We have a good relationship with our banks. We keep them updated on our business and are very transparent with them.

Yeah. But I mean there's got to be a covenant in there. I just want to make sure you're not close to the covered in sort of a turbo amortization.

No, we have availability triggers that we watch and review closely. We have $86 million of additional availability at the end of October. We're not expecting to trip any covenant triggers there. As I mentioned, we also have our ABS that we're going to call here in the next days or so or less this month in December, which will bring some additional collateral into that ABL pool, and we're also looking at another securitization later in the month. We've got flexibility there. We've also got our active shelf should we need to use some other type of funding in the future.

Okay, thank you.

Thanks, John.

Thank you. One moment, please. Our next question comes from the line of Vincent Caintic from Stephens. Your line is open.

Good morning. Thanks for taking my questions. First on credit, I appreciate all the detail you gave. The 30 days accounts 30 days past due came down quarter-over-quarter, yet the credit provisions went up. I'm curious what changed in your thinking that drove the credit provisions higher. In the press release, it says higher credit provisions were one-time. I'm wondering if the higher credit provisions are related to onetime higher credit losses we experienced this quarter. Should we expect reserves to come down as the back book of the portfolio decreases over time, or is consumer deterioration expected going forward, so we should expect to keep this higher credit reserve rate?

Sure. A large piece of that credit reserve analysis is just based on actual losses that have happened. An increase in losses in the quarter results in a higher output. As we look at our delinquencies and the pools that we have out there, there would be some expectation that as we move forward, we should be able to reduce that at some point in time in the future. But we've got to work through what's currently in our portfolio, and we'll continue to review that quarterly.

I'd add also that the increase in those unit losses during the quarter was really sharp. I mentioned peaking in September, coming down in October, and again most recently in November, it came down yet again. So we're encouraged by that, but it's tough for us to gauge where that's going to end up. Keeping our delinquencies in line and seeing positive trends in terms of the unit losses, those are really good indicators. But we've got to see what pans out. The environment is still challenged for our consumers, and that doesn't seem to be going away anytime soon. We're doing everything we can to help them be successful.

Okay. That's very helpful. And I guess maybe to put it another way, is there a way to say that your underwriting has changed such that you're targeting a certain loss rate that's lower than where we are now? Can you give some detail on what you're focusing on? I recognize that the current portfolio written this past year is probably the tough spot, but I'm trying to understand the forward portfolio that you are writing going forward. Are you targeting something that's lower than where the back portfolio is?

There are a couple of drivers there, Vincent. If we're targeting higher down payments and better-rated customers, I would expect the loss rate to come down, especially when you feather in the fact that we're really focused on the asset and how it performs in the portfolio, which should drive better recovery rates. But all that remains to be seen. We have to prove that out, but we're doing all the things to get us to that future place.

Vincent, I would also add that it is a subprime consumer. We're working to structure the deals for success as best we can. But these consumers live paycheck to paycheck. That's why our servicing after the sale and how we help them through those events after the sale are so important in how we service them. We also have to keep mindful of the consumer that we're dealing with.

Okay, that's very helpful. Thanks so much.

Thank you, Vincent.

Thank you. One moment please. Our next question comes from the line of Kyle Joseph from Jefferies. Your line is open.

Hey, good morning. Thanks for taking my questions. Just a few more on credit, if you will. I think you referenced that we're back at pre-pandemic average loss rates for the second quarter. But if we look back at pre-pandemic reserve levels, I think they were more in the 24.5%, 25% range. Obviously, you're above that now. Is that a function of the portfolio duration or just the uncertain outlook? Any specific macro changes that trigger the reserve? Or is it more just a function of performance and the enduring inflation?

Most of it is based on performance. The severity is a piece of the increased reserve as well. There are qualitative factors, like the inflationary environment that also play into that. So it's a combination of all those factors that causes that reserve to need to be at a higher percentage.

Got it. I think this was referenced earlier, but obviously, early-stage delinquencies continue to perform well. Is this the back book? Is ongoing inflation driving less cure in the back book?

Yes, I think that's a piece of it, just the consumer and the environment they’re in. The way we ended the quarter, our closing on a Tuesday, which is typically our highest delinquency day of the week, and looking at both our 30-plus being lower as well as our less than 30-day delinquencies being lower was a really positive sign.

Got it. Thanks very much for taking my questions. Thank you.

I'm showing no further questions at this time. I will turn the call back over to Doug Campbell for any closing remarks.

I'd like to thank everybody for joining the call. We have a lot going on, a lot of positive things for our company. We're really excited about our future and focused on some of these high line items like our ERP and our LOS, which are technology investments that we've made over the last couple of years, all of which will help our customers be more successful. Affordability is a key part of this equation, knowing that we have a path to help engineer more affordable vehicles for our consumers and generate demand despite the external environment is also a big piece of that. Lastly, we're excited about our acquisition posture. We were able to get one of these done. When you can add stores that are on par with some of your largest stores in the country, how can you not be excited about that and the other ones that are in our pipeline, some of which are two or three times the size of that? We couldn't be more excited about our future. I appreciate everybody for joining the call, and thank you very much for your interest in America's Car-Mart.

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.