America's Car-Mart, Inc. Reaches Agreement to Sell Mortgage Lender Subsidiary; Company Completes $3.8 Million Sale of Precision IBC Subsidiary.Business Editors & Automotive Writers IRVING, Texas--(BUSINESS WIRE)--May 6, 2002 America's Car-Mart, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. :CRMT CRMT Computer Resources Management Team ) today announced that it has reached an agreement to sell its 80% interest in Concorde Acceptance Corporation, a residential mortgage lender. Under the terms of the agreement, the buyer, which is made up of Concorde's senior management team, will pay approximately $2.9 million for the Company's 80% ownership interest. In addition, at closing, Concorde will repay approximately $2.1 million of borrowings from the Company, resulting in total cash proceeds to the Company of approximately $5.0 million. Closing of the sale, which is subject to certain conditions, is expected to occur by the end of June. In addition, the Company completed the sale of its 50% interest in Precision IBC IBC International Building Code IBC Iraq Body Count IBC Institutional Biosafety Committee IBC Inflammatory Breast Cancer IBC International Business Company IBC Independence Blue Cross IBC Insurance Bureau of Canada IBC International Broadcasting Convention , Inc., a firm specializing in the sale and rental of intermediate bulk containers, to an affiliate of the president of that company for $3,771,000. Proceeds from the sale will be used to reduce debt. "We are very pleased to have closed the Precision IBC transaction and to have reached an agreement to sell our last non-core subsidiary," commented Edward R. McMurphy, the Company's Chairman and Chief Executive Officer. "Upon closing of the sale of Concorde Acceptance, the Company will have divested all of its non-core subsidiaries, leaving the Company no other operations except its highly profitable chain of Car-Mart dealerships," continued McMurphy. About America's Car-Mart America's Car-Mart, formerly Crown Group, Inc., operates 55 automotive dealerships in seven states and is one of the largest automotive retailers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. focused exclusively on the "Buy Here/Pay Here" segment of the used car market. The Company operates its dealerships primarily in small cities and rural locations throughout the South-Central United States, selling quality used vehicles and providing financing for substantially all of its customers. The Company also owns an 80% interest in Concorde Acceptance Corporation, a prime and sub-prime mortgage lender which is held for sale and is included in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Included herein are forward-looking statements, including a statement with respect to the expected closing date of the sale of the Company's 80% interest in Concorde Acceptance Corporation. All forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. |
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