Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: KZAP who wrote (44375)	1/19/1999 9:18:00 AM
From: RCJIII	Respond to of 119973

CNGR- NEWS OUT!, Acquisition will add .50 to next year's earnings! Crown Group Acquires America's Car-Mart, Inc. Acquisition Expected to Increase Crown's FY2000 Earnings by $0.50 Per Share DALLAS--(BUSINESS WIRE)--Jan. 19, 1999--Crown Group, Inc. (Nasdaq:CNGR - news) today announced that it has completed the purchase of America's Car-Mart, Inc. (''Car-Mart'') for approximately $41 million, plus the assumption of approximately $2 million in liabilities. Financing of the transaction included $9.8 million in cash from Crown, a $7.5 million five-year note to the sellers, and proceeds from a $30 million revolving credit facility provided by BankAmerica Business Credit. Headquartered in Rogers, Ark., Car-Mart is one of the largest ''Buy-Here Pay-Here'' used car dealers in the United States, with annual revenues of $52 million in its latest fiscal year. Car-Mart underwrites, finances and services retail installment contracts generated by its 30 dealerships located in niche markets throughout Arkansas, Oklahoma, Texas and Missouri. Car-Mart presently services over 15,000 retail installment contracts, representing approximately $47 million in net finance receivables. ''We believe that Car-Mart is one of the most successful 'Buy-Here Pay-Here' used car retailers in America, and the company has been consistently profitable throughout its eighteen-year operating history,'' stated Edward R. McMurphy, President and Chief Executive Officer of Crown Group, Inc. ''Car-Mart currently sells about 12,000 used cars annually, and we expect its sales to approximate $70 million in our fiscal year ending April 30, 2000. We plan to expand Car-Mart's dealership network in non-metropolitan markets, where the company has developed a strong brand identity as a retailer of dependable used cars which provides quality aftermarket service to its customers.'' ''Car-Mart will be accretive to Crown's earnings during the fourth quarter of our current fiscal year, and we expect this acquisition will increase our earnings per share by approximately $0.50 in the fiscal year ending April 30, 2000,'' continued McMurphy. ''Car-Mart's successful business model of selling and financing quality used cars to customers in non-urban markets should complement our Paaco Automotive Group subsidiary, which sells and finances quality used cars primarily to Hispanic customers in metropolitan markets. The combined annualized revenues of these two subsidiaries, which currently exceed $130 million, represent less than 0.5% of the used car market in the U.S., and we believe there are ample opportunities for expansion in new and existing markets as we move into the 21st Century.'' Crown Group, Inc. is a publicly traded buy-out firm which seeks to enhance shareholder value through the acquisition, development and operation of small-cap companies with significant growth potential. Crown Group currently owns (i) 100% of America's Car Mart and 65% of Paaco Automotive Group, vertically integrated used car sales and finance companies; (ii) 100% of Precision IBC, a firm specializing in the sale and rental of intermediate bulk containers; (iii) 80% of Concorde Acceptance Corporation, a sub-prime mortgage lender; (iv) 49% of Casino Magic Neuquen, a casino operator in the Province of Neuquen, Argentina; and (v) 80% of Home Stay Lodges, a partnership which is involved in the development and operation of extended-stay lodging facilities.