RICHMOND, Va.--(BUSINESS WIRE)--Jun. 19, 2009--
CarMax, Inc. (NYSE:KMX) today reported results for the first quarter
ended May 31, 2009.
-
Net sales and operating revenues decreased 17% to $1.83 billion from
$2.21 billion in the first quarter of last year.
-
Comparable store used unit sales declined 17% for the quarter.
-
Total used unit sales decreased 13% in the first quarter.
-
Net earnings decreased 3% to $28.7 million, or $0.13 per diluted
share, compared with $29.6 million, or $0.13 per diluted share, earned
in the first quarter of fiscal 2009.
-
In the first quarter of fiscal 2010, net earnings were reduced by
$0.11 per share for increased funding costs and other adjustments
related to CarMax Auto Finance (CAF) loans originated in prior
fiscal years. In addition, net earnings were increased by $0.02
per share in connection with a favorable litigation settlement.
-
In the first quarter of fiscal 2009, net earnings were reduced by
$0.06 per share for increased funding costs related to CAF loans
originated in prior fiscal years and by $0.02 per share for
accruals for unrelated litigation.
First Quarter Business Performance
Review
Sales. “While our customer
traffic trend continued to be weak, we did see improvement in the first
quarter compared with the fourth quarter of fiscal 2009,” said
Tom
Folliard
, president and chief executive officer. On a year-over-year
basis, sales execution improved notably, which partially offset the
decline in traffic. “In this difficult environment, superior in-store
execution becomes even more critical,” said Folliard. “We are pleased to
see our store teams executing at a high level, despite the tough
environment.” The improvement in execution occurred even as we decided
to continue our strategy, begun in the fall of 2008, to slow the rate of
CAF loan originations. We believe the reduction in the percentage of
sales financed by CAF contributed modestly to the decline in comparable
store sales.
Our wholesale unit sales declined 25% compared with the first quarter of
fiscal 2009. The decline primarily reflected continued depressed levels
of appraisal traffic, partly offset by a slight improvement in our buy
rate compared with the prior year’s quarter. We believe the recent
upward trend in industry wholesale prices and the resulting increase in
our appraisal offers had a favorable effect on the buy rate.
Other sales and revenues declined 4% versus those reported in the first
quarter of last year. Extended service plan revenues decreased 5%.
Service department sales increased 9%, reflecting higher service-related
customer traffic. Third-party finance fees declined 42%, primarily
reflecting a mix shift among providers, as well as the lower retail unit
sales.
Gross Profit. Total gross
profit declined 2% to $276.2 million from $282.7 million in the first
quarter of fiscal 2009, despite the 17% decline in total revenues. The
effect of the decline in unit sales was largely offset by an improvement
in our total gross profit dollars per retail unit, which increased $347
per unit to $2,911 in the current quarter from $2,564 in the
corresponding prior year period.
Used vehicle gross profit per unit increased to $2,001 per unit from
$1,742 per unit in the prior year quarter. In part, this improvement
reflected the below-average profitability reported in the first quarter
of fiscal 2009, when the initial slowdown in customer traffic and the
rapid decline in underlying wholesale values of SUVs and trucks put
pressure on our used vehicle margins. The improvement also reflected
benefits realized from our initiatives to reduce vehicle reconditioning
costs.
Wholesale vehicle gross profit per unit increased to $904 per unit from
$784 per unit in the first quarter of fiscal 2009. The strong industry
wholesale price appreciation in the last several months contributed to
the increased per-unit contribution, as did the strong dealer-to-car
ratio experienced at our auctions.
CarMax Auto Finance. CAF
reported a loss of $21.6 million compared with income of $9.8 million in
the first quarter of the prior year. In both periods, CAF results were
reduced by adjustments related to loans originated in previous fiscal
periods. In the first quarter of fiscal 2010, these adjustments totaled
$40.4 million, and they included:
-
A $57.6 million reduction related to increased funding costs for the
$1.22 billion of auto loan receivables that were funded in the
warehouse facility at the end of fiscal 2009. This amount included the
increase in funding costs for the $1 billion of auto loan receivables
that were refinanced in a term securitization in April 2009. It also
included our estimate of the increase in warehouse funding costs and
credit enhancements that will occur when the current warehouse
agreement expires in July, applied to the remaining $215 million of
warehouse receivables that were outstanding as of February 28, 2009.
At the end of fiscal 2009, we estimated that the impact of higher
funding costs versus those implicit in our warehouse facility would
adversely affect CAF income by between $60 million and $85 million
when the $1.22 billion of loans in the warehouse facility were
refinanced in fiscal 2010. As a result of recent contractions in
credit spreads, we now estimate the impact to be slightly below the
low end of this range.
-
$17.2 million of favorable adjustments, including favorable
mark-to-market adjustments on retained subordinated bonds and
decreases in prepayment speed assumptions.
The unfavorable adjustments in the first quarter of fiscal 2009 totaled
$20.0 million and they related to increased funding costs on the $845
million of loans that were securitized in the warehouse facility at the
end of fiscal 2008.
Excluding these adjustments from both periods, CAF income declined to
$18.8 million from $29.8 million in the first quarter of fiscal 2009.
CAF’s gain on loans originated and sold was $3.1 million in the current
quarter versus $17.1 million in the prior year quarter, reflecting
higher estimated warehouse facility credit enhancements and funding
costs, a decline in loan origination volume, and the use of a higher
discount rate assumption. The volume of CAF loans originated and sold
fell 27% from the prior year’s quarter, reflecting both the decline in
used unit sales and our decision to decrease the percentage of sales
financed by CAF.
Based on conditions in the credit markets, we anticipate that the
warehouse facility funding costs and credit enhancement levels will
increase upon its renewal or replacement in July, after which they will
more closely align with the current funding costs and enhancement levels
in the public securitization market. We reflected these estimated higher
warehouse costs and enhancements in the gain recognized on all loans
originated and sold in the first quarter of fiscal 2010.
SG&A. Selling, general
and administrative expenses were reduced to $206.2 million, or 11.2% of
total revenues, from $243.0 million, or 11.0% of total revenues in the
prior year quarter. The SG&A reductions included decreases in variable
selling expenses, including payroll, and decreases in growth-related
costs, including pre-opening and relocation costs resulting from our
decision to temporarily suspend store growth. We also decided to sharply
curtail our advertising spend in this environment. In addition, the
current quarter SG&A expenses included the benefit of a favorable
litigation settlement, which increased net earnings by $0.02 per share,
while the prior year’s first quarter SG&A expenses included accrued
litigation costs, which reduced net earnings by $0.02 per share.
Net Earnings. “We are
pleased to report earnings similar to the prior year level, despite
being in the midst of the most challenging economic and credit
environments in our history,” said Folliard. “In many regards, our
performance was the result of our focus on increasing operational
effectiveness and reducing waste. We are especially pleased with our
ability to improve inventory turns and to maintain or improve our gross
profit per unit during the last several quarters, which is a testament
to the strength of our car-buying and inventory management processes, as
well as some early returns from our reconditioning waste reduction
initiatives.”
Credit Facilities. As of
May 31, 2009, we had net debt of $284.0 million, consisting of $389.1
million outstanding under the revolving credit facility and $28.5
million of capitalized leases, net of $133.6 million in cash and cash
equivalents. At that date, based on then-current inventory levels, we
had additional borrowing capacity of $187.7 million under the revolving
credit facility, which expires in December 2011.
As of May 31, 2009, $636.0 million of auto loan receivables were
outstanding in the warehouse facility and unused warehouse capacity
totaled $764.0 million. The warehouse facility has an annual term, and
it expires in July 2009. We are currently working on the renewal or
replacement of this facility, which is used as the initial funding
source for CAF auto loans.
Supplemental Financial Information
Sales Components
|
(In millions)
|
|
Three Months Ended May 31 (1)
|
|
|
|
2009
|
|
2008
|
|
Change
|
|
Used vehicle sales
|
|
$1,549.3
|
|
$1,816.8
|
|
(14.7)%
|
|
New vehicle sales
|
|
48.6
|
|
82.1
|
|
(40.8)%
|
|
Wholesale vehicle sales
|
|
171.5
|
|
242.3
|
|
(29.2)%
|
|
Other sales and revenues:
|
|
|
|
|
|
|
|
Extended service plan revenues
|
|
34.6
|
|
36.5
|
|
(5.4)%
|
|
Service department sales
|
|
26.6
|
|
24.5
|
|
8.7 %
|
|
Third-party finance fees, net
|
|
3.8
|
|
6.5
|
|
(41.5)%
|
|
Total other sales and revenues
|
|
65.0
|
|
67.5
|
|
(3.8)%
|
|
Net sales and operating revenues
|
|
$1,834.3
|
|
$2,208.8
|
|
(17.0)%
|
|
(1)
|
|
Percent calculations and amounts shown are based on amounts
presented on the attached consolidated statements of earnings and
may not sum due to rounding.
|
Retail Vehicle Sales Changes
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
Comparable store vehicle sales:
|
|
|
|
|
|
Used vehicle units
|
|
(17)%
|
|
1 %
|
|
New vehicle units
|
|
(42)%
|
|
(18)%
|
|
Total
|
|
(18)%
|
|
0 %
|
|
|
|
|
|
|
|
Used vehicle dollars
|
|
(19)%
|
|
(3)%
|
|
New vehicle dollars
|
|
(41)%
|
|
(20)%
|
|
Total
|
|
(20)%
|
|
(4)%
|
|
|
|
|
|
|
|
Total vehicle sales:
|
|
|
|
|
|
Used vehicle units
|
|
(13)%
|
|
10 %
|
|
New vehicle units
|
|
(42)%
|
|
(26)%
|
|
Total
|
|
(14)%
|
|
9 %
|
|
|
|
|
|
|
|
Used vehicle dollars
|
|
(15)%
|
|
6 %
|
|
New vehicle dollars
|
|
(41)%
|
|
(27)%
|
|
Total
|
|
(16)%
|
|
4 %
|
Retail Vehicle Sales Mix
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
Vehicle units:
|
|
|
|
|
|
Used vehicles
|
|
98
|
%
|
|
97
|
%
|
|
New vehicles
|
|
2
|
|
|
3
|
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
Vehicle dollars:
|
|
|
|
|
|
Used vehicles
|
|
97
|
%
|
|
96
|
%
|
|
New vehicles
|
|
3
|
|
|
4
|
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
Unit Sales
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
Used vehicles
|
|
92,863
|
|
106,747
|
|
New vehicles
|
|
2,031
|
|
3,515
|
|
Wholesale vehicles
|
|
42,226
|
|
56,329
|
Average Selling Prices
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
Used vehicles
|
|
$16,489
|
|
$16,852
|
|
New vehicles
|
|
$23,773
|
|
$23,211
|
|
Wholesale vehicles
|
|
$ 3,936
|
|
$ 4,184
|
Selected Operating Ratios
|
(In millions)
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
% (1)
|
|
2008
|
|
% (1)
|
|
|
|
|
|
|
|
|
|
|
|
Net sales and operating revenues
|
|
$
|
1,834.3
|
|
|
100.0
|
%
|
|
$
|
2,208.8
|
|
100.0
|
%
|
|
Gross profit
|
|
$
|
276.2
|
|
|
15.1
|
%
|
|
$
|
282.7
|
|
12.8
|
%
|
|
CarMax Auto Finance (loss) income
|
|
$
|
(21.6
|
)
|
|
(1.2
|
)%
|
|
$
|
9.8
|
|
0.4
|
%
|
|
Selling, general and administrative expenses
|
|
$
|
206.2
|
|
|
11.2
|
%
|
|
$
|
243.0
|
|
11.0
|
%
|
|
Operating profit (EBIT) (2)
|
|
$
|
48.4
|
|
|
2.6
|
%
|
|
$
|
49.5
|
|
2.2
|
%
|
|
Net earnings
|
|
$
|
28.7
|
|
|
1.6
|
%
|
|
$
|
29.6
|
|
1.3
|
%
|
|
(1)
|
|
Calculated as the ratio of the applicable amount to net sales
and operating revenues.
|
|
(2)
|
|
Equals earnings before interest and income taxes.
|
Gross Profit
|
(In millions)
|
|
Three Months Ended May 31 (1)
|
|
|
|
2009
|
|
2008
|
|
Change
|
|
Used vehicle gross profit
|
|
$
|
185.8
|
|
$
|
186.0
|
|
(0.1
|
)%
|
|
New vehicle gross profit
|
|
|
1.1
|
|
|
3.0
|
|
(64.2
|
)%
|
|
Wholesale vehicle gross profit
|
|
|
38.2
|
|
|
44.2
|
|
(13.6
|
)%
|
|
Other gross profit
|
|
|
51.2
|
|
|
49.5
|
|
3.3
|
%
|
|
Total gross profit
|
|
$
|
276.2
|
|
$
|
282.7
|
|
(2.3
|
)%
|
Gross Profit per Unit
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
|
|
$/unit (1)
|
|
% (2)
|
|
$/unit (1)
|
|
% (2)
|
|
Used vehicle gross profit
|
|
$
|
2,001
|
|
|
12.0
|
%
|
|
$
|
1,742
|
|
|
10.2
|
%
|
|
New vehicle gross profit
|
|
$
|
532
|
|
|
2.2
|
%
|
|
$
|
860
|
|
|
3.7
|
%
|
|
Wholesale vehicle gross profit
|
|
$
|
904
|
|
|
22.3
|
%
|
|
$
|
784
|
|
|
18.2
|
%
|
|
Other gross profit
|
|
$
|
539
|
|
|
78.8
|
%
|
|
$
|
449
|
|
|
73.4
|
%
|
|
Total gross profit
|
|
$
|
2,911
|
|
|
15.1
|
%
|
|
$
|
2,564
|
|
|
12.8
|
%
|
|
(1)
|
|
Calculated as category gross profit divided by its respective
units sold, except the other and the total categories, which are
divided by total retail units sold.
|
|
(2)
|
|
Calculated as a percentage of its respective sales or revenue.
|
CAF Income
|
(In millions)
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
Gain on sales of loans originated and sold
|
|
$
|
3.1
|
|
|
$
|
17.1
|
|
|
Other losses
|
|
|
(40.4
|
)
|
|
|
(20.0
|
)
|
|
Total loss
|
|
|
(37.3
|
)
|
|
|
(2.9
|
)
|
|
Servicing fee income
|
|
|
10.4
|
|
|
|
10.2
|
|
|
Interest income
|
|
|
16.4
|
|
|
|
11.1
|
|
|
Direct CAF expenses
|
|
|
11.1
|
|
|
|
8.6
|
|
|
CarMax Auto Finance (loss) income
|
|
$
|
(21.6
|
)
|
|
$
|
9.8
|
|
|
|
|
|
|
|
|
Loans originated and sold
|
|
$
|
460.5
|
|
|
$
|
626.5
|
|
|
Gain on sales of loans originated and sold as a percentage of
loans originated and sold
|
|
|
0.7
|
%
|
|
|
2.7
|
%
|
Earnings Highlights
|
(In millions except per share data)
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
Change
|
|
Net earnings
|
|
$
|
28.7
|
|
$
|
29.6
|
|
(2.7
|
)%
|
|
Diluted weighted average shares outstanding
|
|
|
218.8
|
|
|
220.5
|
|
(0.7
|
)%
|
|
Net earnings per share
|
|
$
|
0.13
|
|
$
|
0.13
|
|
0.0
|
%
|
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, June
19, 2009. Domestic investors may access the call at 1-888-298-3261
(international callers dial 1-706-679-7457). The conference I.D. for
both domestic and international callers is 64977705. A live webcast of
the call will be available on our investor information home page at
investor.carmax.com and at www.streetevents.com.
A webcast replay of the call will be available at investor.carmax.com
beginning at approximately 1:00 p.m. ET on June 19, 2009, through
September 21, 2009. A telephone replay also will be available through
June 26, 2009, and may be accessed by dialing 1-800-642-1687
(international callers dial 1-706-645-9291). The conference I.D. for
both domestic and international callers is 64977705.
Second Quarter Fiscal 2010 Earnings
Release Date
We currently plan to release second quarter sales and earnings results
on Tuesday, September 22, 2009, before the opening of the New York Stock
Exchange. We will host a conference call for investors at 9:00 a.m. ET
on that date. Information on this conference call will be available on
our investor information home page at investor.carmax.com in early
September.
About CarMax
CarMax, a Fortune 500 company, and one of the Fortune
2009 “100 Best Companies to Work For,” is the nation’s largest retailer
of used cars. Headquartered in Richmond, Va., we currently operate 100
used car superstores in 46 markets. The CarMax consumer offer is
structured around four core equities: low, no-haggle prices; a broad
selection; high quality vehicles; and customer-friendly service. During
the fiscal year ended February 28, 2009, we retailed 345,465 used
vehicles and sold 194,081 wholesale vehicles at our in-store auctions.
For more information, access the CarMax website at www.carmax.com.
Forward-Looking Statements
We caution readers that the statements contained in this release about
our future business plans, operations, opportunities or prospects,
including without limitation any statements or factors regarding
expected sales, margins or earnings, are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are based
upon management’s current knowledge and assumptions about future events
and involve risks and uncertainties that could cause actual results to
differ materially from anticipated results. Among the factors that could
cause actual results and outcomes to differ materially from those
contained in the forward-looking statements are the following:
-
Changes in general or regional U.S. economic conditions.
-
Changes in the availability or cost of capital and working capital
financing.
-
Changes in consumer credit availability related to our third-party
financing providers.
-
Changes in the competitive landscape within our industry.
-
Significant changes in retail prices for used and new vehicles.
-
A reduction in the availability of or access to sources of inventory.
-
Factors related to the regulatory and legislative environment in which
we operate.
-
The loss of key employees from our store, regional or corporate
management teams.
-
The failure of key information systems.
-
The effect of new accounting requirements or changes to U.S. generally
accepted accounting principles.
-
Security breaches or other events that result in the misappropriation,
loss or other unauthorized disclosure of confidential customer
information.
-
The effect of various litigation matters.
-
Adverse conditions affecting one or more domestic-based automotive
manufacturers.
-
The occurrence of severe weather events.
-
Factors related to the seasonal fluctuations in our business.
-
Factors related to the geographic concentration of our superstores.
-
Our inability to acquire or lease suitable real estate at favorable
terms.
-
The occurrence of certain other material events.
For more details on factors that could affect expectations, see our
Annual Report on Form 10-K for the fiscal year ended February 28, 2009,
and our quarterly or current reports as filed with or furnished to the
Securities and Exchange Commission. Our filings are publicly available
on our investor information home page at investor.carmax.com. Requests
for information may also be made to the Investor Relations Department by
email to investor_relations@carmax.com
or by calling 1-804-747-0422 ext. 4287. We disclaim any intent or
obligation to update our forward-looking statements.
|
CARMAX, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF
EARNINGS
|
|
(UNAUDITED)
|
|
(In thousands except per share data)
|
|
|
|
|
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
% (1)
|
|
2008
|
|
% (1)
|
|
|
|
|
|
|
|
|
|
|
|
Sales and operating revenues:
|
|
|
|
|
|
|
|
|
|
Used vehicle sales
|
|
$
|
1,549,275
|
|
|
84.5
|
|
|
$
|
1,816,848
|
|
82.3
|
|
New vehicle sales
|
|
|
48,553
|
|
|
2.6
|
|
|
|
82,070
|
|
3.7
|
|
Wholesale vehicle sales
|
|
|
171,496
|
|
|
9.3
|
|
|
|
242,327
|
|
11.0
|
|
Other sales and revenues
|
|
|
64,976
|
|
|
3.5
|
|
|
|
67,518
|
|
3.1
|
|
Net sales and operating revenues
|
|
|
1,834,300
|
|
|
100.0
|
|
|
|
2,208,763
|
|
100.0
|
|
Cost of sales
|
|
|
1,558,063
|
|
|
84.9
|
|
|
|
1,926,049
|
|
87.2
|
|
Gross profit
|
|
|
276,237
|
|
|
15.1
|
|
|
|
282,714
|
|
12.8
|
|
CarMax Auto Finance (loss) income
|
|
|
(21,636
|
)
|
|
(1.2
|
)
|
|
|
9,819
|
|
0.4
|
|
Selling, general and administrative expenses
|
|
|
206,225
|
|
|
11.2
|
|
|
|
242,984
|
|
11.0
|
|
Interest expense
|
|
|
1,066
|
|
|
0.1
|
|
|
|
2,058
|
|
0.1
|
|
Interest income
|
|
|
183
|
|
|
--
|
|
|
|
264
|
|
--
|
|
Earnings before income taxes
|
|
|
47,493
|
|
|
2.6
|
|
|
|
47,755
|
|
2.2
|
|
Income tax provision
|
|
|
18,745
|
|
|
1.0
|
|
|
|
18,197
|
|
0.8
|
|
Net earnings
|
|
$
|
28,748
|
|
|
1.6
|
|
|
$
|
29,558
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares: (2)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
218,004
|
|
|
|
|
|
217,094
|
|
|
|
Diluted
|
|
|
218,840
|
|
|
|
|
|
220,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share: (2)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.13
|
|
|
|
|
$
|
0.13
|
|
|
|
Diluted
|
|
$
|
0.13
|
|
|
|
|
$
|
0.13
|
|
|
|
(1)
|
|
Percents are calculated as a percentage of net sales and
operating revenues and may not equal totals due to rounding.
|
|
|
|
|
|
(2)
|
|
Reflects the implementation of FASB Staff Position Emerging
Issues Task Force 03-6-1, “Determining Whether Instruments Granted
in Share-Based Payment Transactions Are Participating Securities”
and the resulting restatement of the share count and earnings per
share for the three months ended May 31, 2008.
|
|
CARMAX, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
(In thousands)
|
|
|
|
|
|
|
|
May 31
2009
|
|
May 31
2008
|
|
February 28
2009
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
133,580
|
|
$
|
11,891
|
|
$
|
140,597
|
|
Accounts receivable, net
|
|
|
74,692
|
|
|
75,393
|
|
|
75,876
|
|
Auto loan receivables held for sale
|
|
|
22,539
|
|
|
10,009
|
|
|
9,748
|
|
Retained interest in securitized receivables
|
|
|
433,300
|
|
|
268,613
|
|
|
348,262
|
|
Inventory
|
|
|
781,085
|
|
|
933,957
|
|
|
703,157
|
|
Prepaid expenses and other current assets
|
|
|
8,308
|
|
|
23,324
|
|
|
10,112
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
1,453,504
|
|
|
1,323,187
|
|
|
1,287,752
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
922,950
|
|
|
926,348
|
|
|
938,259
|
|
Deferred income taxes
|
|
|
124,819
|
|
|
79,352
|
|
|
103,163
|
|
Other assets
|
|
|
49,403
|
|
|
47,186
|
|
|
50,013
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
2,550,676
|
|
$
|
2,376,073
|
|
$
|
2,379,187
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
252,702
|
|
$
|
274,560
|
|
$
|
237,312
|
|
Accrued expenses and other current liabilities
|
|
|
81,841
|
|
|
70,393
|
|
|
55,793
|
|
Accrued income taxes
|
|
|
55,159
|
|
|
28,943
|
|
|
26,551
|
|
Deferred income taxes
|
|
|
10,830
|
|
|
15,804
|
|
|
12,129
|
|
Short-term debt
|
|
|
1,195
|
|
|
8,403
|
|
|
878
|
|
Current portion of long-term debt
|
|
|
238,488
|
|
|
79,988
|
|
|
158,107
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
640,215
|
|
|
478,091
|
|
|
490,770
|
|
|
|
|
|
|
|
|
|
Long-term debt, excluding current portion
|
|
|
177,889
|
|
|
227,017
|
|
|
178,062
|
|
Deferred revenue and other liabilities
|
|
|
106,106
|
|
|
134,124
|
|
|
117,288
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
924,210
|
|
|
839,232
|
|
|
786,120
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS’ EQUITY
|
|
|
1,626,466
|
|
|
1,536,841
|
|
|
1,593,067
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
2,550,676
|
|
$
|
2,376,073
|
|
$
|
2,379,187
|
|
CARMAX, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
(UNAUDITED)
|
|
(In thousands)
|
|
|
|
|
|
|
|
Three Months Ended May 31
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
Net earnings
|
|
$
|
28,748
|
|
|
$
|
29,558
|
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
15,032
|
|
|
|
13,248
|
|
|
Share-based compensation expense
|
|
|
12,493
|
|
|
|
9,921
|
|
|
Loss on disposition of assets
|
|
|
241
|
|
|
|
519
|
|
|
Deferred income tax benefit
|
|
|
(22,949
|
)
|
|
|
(14,290
|
)
|
|
Net decrease (increase) in:
|
|
|
|
|
|
Accounts receivable, net
|
|
|
1,184
|
|
|
|
(2,165
|
)
|
|
Auto loan receivables held for sale, net
|
|
|
(12,791
|
)
|
|
|
(5,025
|
)
|
|
Retained interest in securitized receivables
|
|
|
(85,038
|
)
|
|
|
2,148
|
|
|
Inventory
|
|
|
(77,928
|
)
|
|
|
41,820
|
|
|
Prepaid expenses and other current assets
|
|
|
1,804
|
|
|
|
(4,122
|
)
|
|
Other assets
|
|
|
(471
|
)
|
|
|
350
|
|
|
Net increase (decrease) in:
|
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities
and accrued income taxes
|
|
|
71,426
|
|
|
|
328
|
|
|
Deferred revenue and other liabilities
|
|
|
(11,168
|
)
|
|
|
7,066
|
|
|
Net cash (used in) provided by operating activities
|
|
|
(79,417
|
)
|
|
|
79,356
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(5,662
|
)
|
|
|
(75,732
|
)
|
|
Proceeds from sales of assets
|
|
|
50
|
|
|
|
225
|
|
|
Sales (purchases) of money market securities
|
|
|
185
|
|
|
|
(863
|
)
|
|
Net cash used in investing activities
|
|
|
(5,427
|
)
|
|
|
(76,370
|
)
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
Increase (decrease) in short-term debt, net
|
|
|
317
|
|
|
|
(12,614
|
)
|
|
Issuances of long-term debt
|
|
|
256,000
|
|
|
|
193,200
|
|
|
Payments on long-term debt
|
|
|
(175,792
|
)
|
|
|
(193,009
|
)
|
|
Equity issuances, net
|
|
|
(2,737
|
)
|
|
|
8,229
|
|
|
Excess tax benefits from share-based payment arrangements
|
|
|
39
|
|
|
|
134
|
|
|
Net cash provided by (used in) financing activities
|
|
|
77,827
|
|
|
|
(4,060
|
)
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
(7,017
|
)
|
|
|
(1,074
|
)
|
|
Cash and cash equivalents at beginning of year
|
|
|
140,597
|
|
|
|
12,965
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
133,580
|
|
|
$
|
11,891
|
|
Source: CarMax, Inc.
CarMax
Investors
and Financial Media:
Katharine Kenny
Vice President, Investor
Relations
804-935-4591
or
Celeste Gunter
Manager,
Investor Relations
804-935-4597
General Media:
Laura
Donahue
Vice President, Public Affairs
804-747-0422, ext. 4434
or
Trina
Lee
Director, Public Relations
804-747-0422, ext. 4197