Good morning, everyone. Thank you for holding and welcome to America’s Car Mart first quarter 2010 conference call. The topic of this call will be the earnings and operating results for the company’s fiscal first quarter ended July 31, 2009. Before we begin, I would like to remind everyone that this call is being recorded and will be available for replay for the next 30 days. The dial-in number and access information are included in this morning’s press release which can be found on America’s Car Mart's website at www.car-mart.com. As you all know, some of management’s comments today may include forward-looking statements which 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 provisions of the Private Securities Litigation Reform Act of 1995. The company cannot guarantee the accuracy of the forecast or estimates, nor does it undertake any obligation to update such forward-looking statements. For more information regarding forward-looking statements information, please see item one of part one of the company’s annual report on Form 10-K for the fiscal year ended April 30, 2009, and its current and quarterly reports furnished to or filed with the Securities and Exchange Commission on Forms 8-K and 10-Q. Participating on the call this morning are Skip Falgout, Car Mart’s Chairman of the Board; Hank Henderson, the company’s Chief Executive Officer and President; and Jeff Williams, Chief Financial Officer. And now I would like to turn the call over to the company’s Chairman of the Board, Skip Falgout.

Thank you, Operator and good morning, everyone. We announced earlier this morning outstanding results for the first quarter of fiscal 2010, which is our 10th consecutive quarter of solid profits and is a continuation of our 28 plus years of profitability. Included in that announcement was a 33% increase in net income to $7 million, or $0.60 per share, versus net income of $5.3 million, or $0.45 per share for the prior year first quarter. Our top line increased by 10.7% to $83.8 million on strong retail unit sales increase of 11.3%, and same-store sales increase of 8.5%. As a reminder, last year’s first quarter sales were bolstered somewhat by economic stimulus checks that our customer base received in April -- in May of last year. When you consider that incentive to benefit our customers, I believe this year’s first quarter sales and revenue increases are even more impressive. And not to take away from Jeff’s discussion to follow but we were able to achieve the sales gains this quarter while at the same time continuing to not only maintain but significantly improve our delinquency and credit loss metrics. For example, our over 30 day delinquencies improved over last year’s first quarter to 3.5%. Net charge-offs decreased to 5.1% from 5.7% and provision for credit losses as a percentage of sales was well below 20%, the best level in recent years. Folks, this is a cornerstone and harbinger of solid, good, and growing earnings. As Hank and Jeff mentioned in today’s press release, and they will elaborate on more in a moment, we have continued to make huge strides in building our company for maximizing our results at our existing store base and laying a strong foundation for accelerated but controlled future new store growth. I am very confident we will continue to build on the momentum we have generated over the last two years of positive growth and you will see sustained strong growth and results here at Car Mart in the future. Now I will turn it over to Jeff.

Thanks, Skip. Once again, as mentioned in the press release, our top line revenues for the quarter increased by 10.7% compared to the first quarter of last year. The increase was a result of an 11.3% increase in unit volume, a 1% increase in average retail sales price, a $300,000 increase in interest income, offset by a $360,000 decrease in wholesale sales. Same-store sale revenue increased by 8.5%. Our down payment percentage for the quarter was 7% this year compared to 6.5% for the first quarter of last year. Our initial loan term was approximately 26 months, which is flat with the first quarter of 2009. Our weighted average note term for the entire portfolio, including contract modifications, was 27.6 months at July 31, 2009 compared to 27.5 months at July 31, 2008. Considering the slight increase in average retail sales price, the initial term was actually slightly down between years. This is an indication that our lot managers continue to do an outstanding job of keeping the terms down, which is so important in ensuring that our customers maintain equity in their vehicles. The average retail sales price increased slightly to $9,041 from $8,952 for the first quarter of last fiscal year. Sequentially, the average retail sales price was actually down $148 or 1.6%, something that we are very happy about. Demand for used vehicles we are purchasing remains very high. Wholesale price trends have been increasing for several months now. To be able to hold down purchase prices and resulting sales prices and to maintain required quantities, quality, and mix in this environment is a testament to our lot managers, their purchasing agents, and our corporate purchasing support team led by John Sims. We will continue to leverage our purchasing strengths as we move forward with our growth…

All right. Thanks, Jeff. Well, I guess I can start off by stating the obvious -- we are very pleased with our first quarter results. We continue to see steady improvements in every facet of our business, and our task at hand right now is to continue to build on our success. Too often there’s a tendency to press harder when things are not going so well and to relax somewhat when results are good. We know, however, that it’s time to press harder when performance is at a high level and that is our intention at this time. A couple of years ago, we weren’t producing at the level we knew we were capable. We talked quite a bit about how our less than satisfactory performance at the time was in part the result of opening more stores than we were really equipped to handle at the time. And being mindful of that, we can appreciate any concerns anyone may have as we begin to open more stores. It is very important to understand that we are not at all looking today at the same situation. As we’ve discussed on our last few calls, we’ve made extensive improvements and now have far more support and oversight in every area. We are now well-positioned to effectively deliver the necessary support and oversight to several more stores. There’s no question that with every decision to open an additional location, we must ask the question if we have in place the people, structure, and resources necessary and we feel very confident that the answer to that question right now is yes, we do. The continually improving numbers we’ve seen over the past several quarters and certainly the impressive results posted this past quarter are evidence of that. Much of the increase in…

(Operator Instructions) We will take our first question from David [Berkloff] with [Seasons] Incorporated.

Good morning, guys and congratulations on a great quarter. I have a couple of questions. First, can you comment at all about the sales trends in August? I mean, do we see any kind of drop-off from where it was at the end of the quarter?

No, they are still solid. We are satisfied and pleased with the continuation on our sales.

Okay. And what percentage of sales were from Arkansas?

Revenues were about 50% in Arkansas for the quarter.

Okay. And did you see -- I mean, some of the growth, I mean, was that a lot -- I mean, was there more sales in Arkansas this quarter at all, or has that been pretty stable?

It’s been fairly stable. A lot of the revenue increase was from the smaller lots and several of those were outside of the State of Arkansas, so --

One of the good things is some across-the-board increases, really -- some of the lots that a year ago were not selling enough, a lot of things were done to improve their sales levels and they are producing so yes, across the board. That’s what is exciting about it.

Okay. And then one more -- did you have any -- are you seeing any difficulty right now in sourcing cars, given the cash for clunkers program?

No, if anything I’d say the challenges we have of finding inventory aren’t related to that. And really we’re not -- we’ve actually increased our inventory. I think anybody that drives by any Car Mart location today, inventory looks as good as it ever has -- we’re well-stocked and we have a good mix and as Jeff discussed pretty thoroughly there, we are very pleased that we are keeping the costs about where we need to on that, so no, we’re still doing a good job there.

Okay. Thank you very much.

We’ll take our next question from Bill Armstrong with C.L. King & Associates. Bill Armstrong - C.L. King & Associates: Good morning. I’ll add my congratulations. Just to follow-up on that last question, so you are not seeing any impact from all these cars that are being taken out of circulation because of the cash for clunkers program? You’re not seeing an impact on supply?

Not -- I guess I would just have to say apparently not. Our purchasing team is doing a good job. I think that early on in the program when a lot of cars are being traded for it and dealers were still trying to figure out how the program works, I think anecdotally we saw a few little challenges but we are very pleased with the inventory that we are getting and so we have not been impaired in any way by this program.

Bill, also if -- just driving around some of the new car dealerships as we are taking in these cars, they really were clunkers. I mean, if they were getting $4,500 tax credit, most of those cars, probably 99% of them, we wouldn’t have bought anyway.

I think it’s also, you know, as was just asked, a lot of our business is in Arkansas and we know that for whatever reason, actually it was a very small percentage of the clunker money went to Arkansas, so we didn’t see a whole lot of it. Bill Armstrong - C.L. King & Associates: Okay, and how about inventory pricing trends, pricing trends for the cars you are buying at wholesale? Is that continuing to go up?

Actually, we’ve -- as evidenced by the sequential sales price decrease, our purchasing group was actually able to show a slight decrease in purchase prices for the first quarter versus the fourth, which we are extremely excited about and --

You know, Bill, I think if you look at the Mannheim index, it’s gone up for what, the last 11 months I think or so. Bill Armstrong - C.L. King & Associates: Yeah.

-- to our competitors, the mom and pops that have no choice to got to the auction every Tuesday or Wednesday night and have [a single source], they probably have felt it more than we have but the way we purchase, as you know, I think has given us this advantage over those that kind of have single source purchasing, so we are getting the benefit of that.

I think too, as you mentioned, there were a lot of these cars that did qualify for the program and are being taken off the market, they were pretty rough and so they would be below what we have out there for our customers, so we might actually realize some benefit on the side of when we liquidate trade-ins or repossession. I wouldn’t say necessarily that we are but as some of that trails, that may be where we see the impact. Bill Armstrong - C.L. King & Associates: Okay. On another topic then, I think in the past few quarters you’ve mentioned that you have seen some increases in customers refinancing their loans with you. I was wondering if you could update us on what the trends were there.

Actually, we saw a pretty significant decrease in modifications this quarter versus the first quarter of last year, so we are very pleased with the efforts in place to minimize modification but honestly, modifications are not necessarily bad in this business. We’ve got to work with these customers but we have seen a decrease from last year in modifications. Bill Armstrong - C.L. King & Associates: Okay, so then the decrease in charge-offs and the improvement in the accounts over 30 days past due, that did not benefit then from higher modifications -- you actually had modifications decreasing?

Yes, and the cash collections were up -- the collections were up, modifications were down, so this -- we’re seeing real improvement in the portfolio. Bill Armstrong - C.L. King & Associates: Great, okay.

For those metrics to fully work together, for example, if you add contract modifications really too low and repossessions too high might be an indication that we are not maintaining our customers, so it’s -- I think right now it’s kind of an interesting and probably a good equilibrium there. It probably could get better but right now it’s in a good place, a good balance. Bill Armstrong - C.L. King & Associates: Okay, great. Thanks.

We’ll take our next question from John [Hecht] with JMP Securities.

Good morning and reiterate the earlier comments about congratulations on a successful quarter. Can you guys give us the inventory levels now, or maybe discuss what you have done with the inventory levels and in that context, are you keeping the inventory turns similar to where you have been historically?

I think it’s remaining fairly consistent. Really obviously our sales have began to increase and so we have had to carry more cars. I would say probably along about June we raised that number by about 300 to 400 units during June and have continued to do so and as always, we adjust accordingly, and so we are carrying what, 3,500.

We want our purchasing agents to not pass on any good cars, so --

Right.

If the turns go down a little bit in this environment, that’s not necessarily a bad thing for us with the supply issue, so --

Okay, and sales growth and then you mentioned gaining market share against indirect lenders and actually in-market mom and pop competitors, it sounds like just general sales execution. I am wondering if you could highlight some of the promotions you have recently undertaken and maybe some of the near-term promotions and then finally on that topic is when do you anticipate doing some of the tax rebate promotions as we get toward the end of the year?

Okay. We remained consistent with our branding campaign and I would say that that still remained the heart of our advertising, in a business that has traditionally been very promotionally driven and we have ran some promotions through the summer. We’ve doe our time on the job sale and right now we have our sizzling summer, back-to-school sort of sale going on, where we feature certain cars and offer a few reduced [inaudible] like vehicles. The big promotion of the year is the tax return and it’s funny -- every year it’s earlier and earlier. Last year we launched that as early as November and our intention is to do the same this year. I mean, we are already in preparation for that, so --

Okay.

And we do expect that tax promotion to be bigger and bigger each year. I mean, we are going to do better internally with the logistics of running that program. This will be the second -- I guess the third year we’ve been associated with our tax preparation company we work with and are very excited about the opportunities that provides to us, not only on the sales side in the third quarter but on the collections side in the fourth quarter so it’s a great promotion. We plan to really push that hard in the coming years.

I think it’s probably also worth mentioning, if you asked the question about the promotions and advertising, we’ve taken a little different turn this year. As we mentioned, we really focused on identifying the lots that we believe can produce more really not selling the number of vehicles they should and so we have actually gone to those towns and really customized some advertising just for that town, instead of just providing the blanket corporate television campaign and radio spots that we’ve had. We’ve actually gone in, produced spots just on that lot in that town, specifically running it on local cable to keep it affordable. And we are seeing some benefit from that.

And the rates we pay are quite low -- in fact, our overall marketing spend in total dollars is about the same as it was three years ago, so it’s come down as a percentage of revenue. We’re actually doing a lot more of this branding, even at the local level. You can get more bang for the buck out of it.

Yeah, when you keep in mind that we are primarily located in small towns in the south, we are not having to pay the rate of these large markets and so we can -- we can put out a lot more spots for a lot less money.

Okay. And then the wholesale revenues were down, and is that purely a function of lower I guess repo inventory?

Yes, it is.

Okay. And then the final question is could you guys -- I think you talked about unit development, what is your goal for -- I think you probably mentioned sort of one to two units per quarter of growth. Is that accurate, continue to be accurate? And what regions are you looking to here? And then on that topic, are your new units continuing to mature or ramp up at a similar rate to historical rates or are you seeing improvements there as well? And thank you for answering my questions.

With regard to the new store openings, as Jeff mentioned we’ve already -- we did open a few at the start of this year and in our first quarter, and we will open a few more throughout the remainder of this fiscal year -- just very steady and again asking ourselves every time, is this the right thing to do? And we certainly know we have the capacity for several more stores right now than we have today. We are also have the benefit of right now, there are so many towns that are located just right down the road from where we already are. We still have towns in Missouri, a couple more in Oklahoma we’ve identified, Alabama, Kentucky, so we are not going out anywhere and starting a new area. These are all fill-in and we have tremendous opportunity -- really for the next couple of years, there’s plenty of locations without going too far from home to do that. As far as the growth of the new stores, can you comment on that?

Yes, I would say that our recent new store openings are actually producing a little higher volumes out of the gate than we saw a few years ago, which is nice. We’ve got good new locations, great inventory to start those lots, good new managers out of that manager training program, and our expectation is just higher than it was on a new lot opening than just a few years ago.

I would tell you, John, that is by design. I mean, we beefed up all these infrastructure things we’ve talked about them to feel more comfortable. As you know, following our company for a while, we would start new lots selling 15, 18, 20 cars a month and our expectations are higher but also our ability to control that and deliver that is a lot better than it was.

Okay, great. Thanks for the color.

We’ll take our next question from Daniel [Furtado] with Jefferies.

Good morning. Thanks for taking my questions and congratulations again on a great quarter. Do you see any reason to believe the typical seasonal demand patterns will be different this year than other years? Considering how strong this quarter was, do you think we’ll go back to what we have seen from a seasonal demand pattern or do you think there is something else there?

That’s actually a good question.

It’s a great question and I guess in part, in years past there have been times certainly when we have a huge month specifically, and sometimes we see a little bit of a trail-off that follows that. You know, and then we question did we sell ahead a little bit or did the -- an aggressive promotion go ahead and pick up some other sales but really we’ve not seen any slacking. I think when we are able to produce at all the stores so you don’t have one store having to carry the weight of another, it just speaks to the capacity that we already had in place and so right now when [inaudible], there will always be some seasonality with us. It’s not going away but right now, we can say that sales continue to hold strong.

Typically August is a slower month, it’s back to school and we answered earlier, we’ve seen a continuation of solid sales, so --

And we know coming up are typically some -- September and October is just going to slow down but right now we are -- we feel like we’ve got the inventory, the selection, people are well-trained and well-motivated right now, so our expectations are high.

You know, that tax promotion, by moving that forward to November has really leveled out our second, our third and fourth quarters pretty dramatically, whereas that fourth quarter used to be just -- however, that was the tax quarter and now it’s spread over two quarters, so -- so there’s still seasonality but it’s not quite as dramatic, I would say, as it has been.

Excellent. Thank you, that’s great color. And just like mechanically, how do you think about the Arkansas impact to the portfolio yield, like kind of -- like what I’m thinking is you know, there’s about a 600 basis point increase on 50% of the portfolio, so call it a 300 basis point increase over the next two years as it feathers in. Is that the right way to think about that?

Yes, that’s the right way to think about it.

Okay, and then just my last real quick question is was there anything -- I don’t think abnormal is the right word but unusual in the interest and other income line item this quarter, especially as it compared to last?

Well, we did have a benefit from the decrease in the fair value of the interest rate swap.

The 390 and change or whatever that was?

$319,000 but other than that, we just had lower borrowings than last year.

Okay, great. Well, thanks for your time and again, great quarter.

We’ll take our next question from Brian Roman with [Ruboko] Investment Management.

Good morning. Thank you. A couple of questions, following up right away on the previous question about the flow-through of higher interest rates in Arkansas, is there any offset as you look up and down the income statement or -- because you are looking at 3% on $192 million of receivables would be the better part of $6 million of incremental revenue. When you look up and down the income statement, is there going to be any offset to that, like lower fees or lower gross margin or anything?

The offset would be slightly higher credit losses because when an account does go bad in Arkansas, there will be a little more principal owed at that point. Through an amortization schedule of a 6% note versus a 12, and our average loss period is about 11 months, it will be about $140 extra per unit hanging out there, so -- but it’s a slight -- it’s a small offset to a very large positive on the interest income side.

Okay, great. That is helpful. By the way, as you look at Arkansas receivables versus non-Arkansas receivables and the gentlemen before asked a similar question, and he said it feathers in I think was the expression used over three years. Is there a longer tail or a longer life or anything meaningfully different between Arkansas’ duration on the portfolio versus the rest of the portfolio?

Not necessarily -- we do have lower credit losses in Arkansas, so it takes a little longer to turn that over than at the other states but three years is a little too long, you know. The average term is 27 months, so it’s not going to take three years to turn it over. And with our collections and then the write-offs and repos, a big piece of that turn is going to happen within the first 12 months.

Okay, great. Another question which you referenced last time on the call and you sort of put it in the text this time, but factually you are saying the charge-off rate was down and the provision rate was down -- is there any way to quantify what you refer to here, I think it’s 0.3 in the second paragraph, an expanding market results from credit constrictions for vehicle customers at most of our competitors, I mean, you are basically saying that you are seeing a better quality customer. Is there any way to quantify the benefit of that other than through these two numbers? Can you say that there’s a specific group that you didn’t see before, you see it now, expanding and shrinking?

I would have to say that right now, and this is for the most part still anecdotal as we talk with the managers, we certainly know that we have seen some of the folks come to Car Mart as a result of the credit tightening but truly our core customers feel the same and that’s where our focus needs to continue. We want to make ourselves ready and available to others but our core customer base is still for the large part --

So if the improvement is still related to the core customer, is the lower provision and the lower charge-off rate, because the economy has gotten worse, obviously, is it a function of things we’ve talked about in the past, better quality cars and higher down payments?

It’s several different factors. Certainly the best possible quality car that we can offer in this price range makes a difference. The better we deliver a mechanically sound car that helps our credit losses, collections and so forth, at the same time, a lot of it has to do with just execution of how we know this business needs to be ran and I think we’ve done a better job with the training, I think we’ve done a better job with the hiring. We certainly have -- you know, we’ve seen some reductions in our turnover among collectors, so we are doing better there. I think all these factors come into play and results in some improved numbers there.

And also just the fact that gasoline is a lot cheaper this year than last, the fact that our customer is receiving some new tax credits from the government to individuals of $400 or families of $800, and then lower withholding rates on taxes, there’s just -- the customers that we have that have jobs are actually bringing a lot more money home than they were this time last year.

I think it’s fair to say too that in the areas were we are, smaller towns and so forth, that the economy has local economy and the jobs available and all that really hasn’t been as impacted as you see the numbers on the national scale, so it’s a lessened impact.

You know, as you do well on your market share in local markets too, that does truly give you a little more leverage with that customer base on the collection side also.

And as competitors struggle with their own financing and aren’t able to carry as much inventory as they could have a couple of years ago, perhaps even a handful are getting out of the business, you know, that also helps.

The joys of a solid balance sheet. Thank you very much for your answers.

(Operator Instructions) We will now move to Dennis [Skenell] with [Ritabuga] Capital.

Good morning, guys. Most of my questions have been answered -- just one kind of off-the-wall question; I did read an article in the paper a while ago about some of the GM and Chrysler dealerships that had their new dealership pulled and they were converting to used dealerships -- I don’t know if there was any that would be targeting the buy here, pay here kind of segment but do you see anybody kind of coming into your market? I know that existing competitors seem to be having some difficulties but any of those formerly franchised dealers coming down into your market at all?

Well, we have seen several dealers in our areas go our but as far as any of those guys going into the used businesses, there’s not any that I am aware of just off-hand. [Multiple Speakers]

Exactly and I think you already answered the question, that even those that may, they are not entering the buy here, pay here.

Yeah, mostly new car dealers are just [buy] -- their genetics are -- they want to sell cars and this collection part of the business is not something they want to get into. I think they look at it but they just don’t want to do it. And then also I’ll tell you there’s a plus there, but I’m not sure we’re taking advantage of it too much but there’s some locations that will come available, not that we want to take over new car store necessarily but sometimes there’s extra land and it just helped us on -- will help us on getting locations cheaper.

Yeah, gotcha -- and then one last thing, just kind of getting at the credit [inaudible] another way, just out of curiosity as you look at it sounds like traffic has improved and so on, or is up, have you guys -- are you guys rejecting more credit applications or has that stayed about constant?

I think overall we are doing a better job, I would say. Certainly at some of our locations, there’s not been any change but we have had some -- again, we really identified and focused on making each store do better and yes, we do have a number of stores there their number of turn-downs, as we call them, has gone up quite a bit last year and they needed to. We needed to tighten up a few places.

Absolutely. Good, great. Well, keep the good work going.

And with no further questions, I would like to turn it back over for any additional comments or closing remarks.

Okay, well, thank you very much for listening today. It was a great quarter and as we said earlier, a continuation of consecutive good quarters in 28 years. If anybody else has any further questions, please feel free to call us, but thank you very much for your attention. Goodbye.

This concludes today’s presentation. Thank you for your participation.