BUZZ-America’s Car-Mart skids on stock offering

Reuters09-19

** Shares of America’s Car-Mart down 11.9% at $44.02 premarket as co plans equity raise

** CRMT could open at lowest levels since Mar 2020, if losses hold

** Automotive retailer late Weds announced $65 mln stock offering with Jefferies as sole bookrunner

** Co intends to use net proceeds to pay down its revolver, any remaining for general purposes

** Co has 6.4 mln shares outstanding for ~$320 mln market cap

** On Sept 4, CRMT fell ~16% to close at $50.34 after co posted 5% yr/yr drop in rev in fiscal Q1 to $348 mln on decrease in units sold, and qtrly loss of 15 cents/sh vs LSEG estimate of 66 cents/sh profit

** Through Weds, CRMT down 34% YTD vs Nasdaq's 17% advance

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@thomsonreuters.com lance.tupper@tr.com 1-646-279-6380))

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