America's Car-Mart, Inc.

all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to Vicki Judy, Chief Financial Officer. Please go ahead.

Good morning. I'm Vicki Judy, the company's chief financial officer. Welcome to America's Car Mart's third quarter fiscal year 2025 earnings call for the period ending January 31st, 2025. Joining me on the call today is Doug Campbell, our company's president and CEO, and Jamie Fisher, our COO. We issued our earnings release earlier this morning, and it is available on our website, along with supplemental slides detailing our cash on cash returns, and our loan origination system performance improvements. We will post the transcript of our prepared remarks following this call, and the Q&A session will be available through the webcast. 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 estimate, 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, 2024, and our current and quarterly reports furnished to or filed with the Securities Exchange Commission on Forms 8K and 10Q. As a note, the comparisons that we will cover will be the third quarter of fiscal 2025 versus the third quarter of fiscal 2024, unless otherwise stated. Doug will start off with highlights of the quarter and share updates on our progress towards our strategic goals. Doug, I'll turn it over to you now.

Thank you, Vicki. Over the past 18 months, we've been hard at work improving our operations and strengthening our foundation, and this only happens when you have the right talent, and we've continued to invest in this area. Speaking of talent, I'm joined by Jamie for the first time here on the call. The environment for our customers is challenging, highlighted by persistent inflationary trends, higher used car prices, and elevated interest rates. Throughout this period, we have maintained our position on the importance of originating better quality credit while never losing focus of the core values we provide our employees, customers, and communities. As mentioned on the last call, our recent focus has been to improve and diversify our balance sheet by adding new capital and lenders as well as improving our highly successful securitization program. Our ABL facility has been a core source of funding for over four decades. and I'm pleased to report that on February 28, 2025, we completed an extension and upsizing of the facility to $350 million, which now matures in March of 2027. This transaction represents an important milestone for the company, and we deeply appreciate the support of our existing and new relationships with our ABO partners. We also completed our sixth ABS transaction in January. This transaction was $200 million in size and was more than 10 times oversubscribed. We believe the capital markets are recognizing the success of the contracts underwritten by our enhanced LOS. This enabled us to have the tightest spread that we've had to date and resulted in an overall weighted average life adjusted coupon of 6.49%, a 95 basis point improvement from our October transaction. The ABS market is an important source for us given its material improvement in the advance rate relative to the ABL and access to additional capital. Combined, our new ABL facility and recently closed ABS transaction have further improved our capital position, allowing us to turn our attention to other capital sources that will make our capital structure more competitive and efficient. We are focused on the next steps of our funding toolkit and eager to pass on these savings to our customers and shareholders. In January, we hired Sam Smith as our Vice President of Capital Markets and Treasury to help support our growing ABS platform and capital market strategy. Sam is a proven leader with over 20 years of experience in investment banking and the securitization markets. Additionally, during the quarter, Josh Smith joined our team as Chief Technology Officer and brings a wealth of knowledge and technical skills to our leadership team, having served in various technology-focused leadership roles over the last 27 years. I've continually talked about the importance of developing and attracting proven leaders to CarMart, and I'm pleased with the progress that we're making. With this overview, let's turn to the third quarter operating results. Jamie?