Announces Plans to Open 10 to 15 Stores per
Year Through Fiscal 2016
RICHMOND, Va.--(BUSINESS WIRE)--Dec. 21, 2011--
CarMax, Inc. (NYSE:KMX) today reported results for the third quarter
ended November 30, 2011.
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Net sales and operating revenues increased 7% to $2.26 billion from
$2.12 billion in the third quarter of last year.
-
Comparable store used unit sales declined 3% in the third quarter
compared with a 16% increase in the prior year period.
-
Total used unit sales decreased 1%.
-
Total wholesale unit sales increased 13%.
-
CarMax Auto Finance (CAF) income rose 12% to $62.6 million.
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Net income was $82.8 million, or $0.36 per diluted share, compared
with $82.4 million, or $0.36 per diluted share, earned in the third
quarter of fiscal 2011.
Third Quarter Business Performance Review
“We are pleased to report another quarter of strong profits, despite a
difficult sales comparison and the continued sluggish economy,” said
Tom
Folliard
, president and chief executive officer. “We remain committed to
investing in our long-term growth strategy. We now plan to open 10
stores in fiscal 2013 and are pleased to announce our plan to open
between 10 and 15 stores per year during each of the following three
fiscal years.”
Sales. We believe the 3% decline in
comparable store used units resulted from several factors, including our
toughest sales comparison in many quarters and the continuation of weak
economic conditions and low consumer confidence for much of the third
quarter. Our average used vehicle selling price remained higher than the
prior year, reflecting the continuing effect of the tight supply of
late-model used vehicles on our acquisition costs. However, average
retails have begun to moderate from earlier this year due to shifts in
mix, as well as recent declines in industry wholesale pricing.
Wholesale unit sales increased 13% compared with the third quarter of
fiscal 2011. Similar to the last several quarters, our wholesale volumes
benefited from a strong increase in appraisal traffic.
Other sales and revenues declined 8% compared with the prior year’s
third quarter, primarily due to a decrease in third-party finance fees.
This decrease resulted from the decision made earlier this year by CAF
to retain an increased portion of the loans that third-party providers
had been temporarily purchasing. In addition, it reflects an increase in
the percentage of sales financed by our subprime finance providers, who
purchase subprime financings from us at a discount.
Gross Profit. Total gross profit
increased to $303.2 million from $297.9 million in the third quarter of
fiscal 2011, reflecting higher gross profit on our retail and wholesale
vehicle sales, partly offset by reduced other gross profit.
Used vehicle gross profit increased 2% to $197.5 million from $193.2
million in the prior year period. The improvement resulted from a 3%
increase in gross profit per unit, to $2,171 from $2,103 in the prior
year quarter, partly offset by the 1% decline in total used unit
volumes. We have been able to manage to a relatively consistent gross
profit per unit over the last three years.
Wholesale gross profit increased 18% to $66.5 million compared with
$56.5 million in the third quarter of the prior year, driven by the 13%
increase in wholesale unit sales and an improvement in gross profit per
unit to $914 from $878 in the prior year quarter. The strength of our
wholesale profit per unit was fueled by the continued strong demand and
pricing at our auctions.
Other gross profit declined 20% to $37.2 million from $46.7 million in
the prior year period. The decrease included the effects of the
reduction in third-party finance fees and a decrease in service
department profits.
CarMax Auto Finance. CAF income
increased 12% to $62.6 million compared with $55.7 million in last
year’s third quarter primarily due to the interest margin, which rose to
$88.7 million from $73.8 million. The increase in interest margin was
driven by increases in both average managed receivables and the spread
between the interest charged to consumers and our related funding costs.
CAF net loans originated increased 34% compared with the prior year
quarter. The increase reflected our previously reported decision to
retain an increased portion of the loans that third-party providers had
been temporarily purchasing. The provision for loan losses increased to
$15.1 million from $8.6 million in last year’s third quarter, primarily
reflecting the cumulative effect of the origination and retention of
loans with greater credit risk.
SG&A. Selling, general and
administrative expenses increased 6% to $232.3 million from $219.7
million in the prior year’s third quarter as we continued to ramp store
growth and fund initiatives to support the long-term growth of the
company. The SG&A ratio was 10.3% compared with 10.4% in the prior year
quarter. The change was primarily due to the effect of higher average
selling prices.
Superstore Openings. During the
third quarter of fiscal 2012, we entered the Providence, Rhode Island
market, opening a store in North Attleborough, Massachusetts.
Supplemental Financial Information
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Sales Components
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(In millions)
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Three Months Ended
November 30 (1)
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Nine Months Ended
November 30 (1)
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2011
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2010
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Change
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2011
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|
2010
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Change
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Used vehicle sales
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|
$
|
1,766.7
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|
|
$
|
1,688.5
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4.6
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%
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|
$
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5,853.2
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$
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5,410.1
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8.2
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%
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New vehicle sales
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46.0
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47.7
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(3.5
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)%
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154.7
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149.6
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3.4
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%
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Wholesale vehicle sales
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390.3
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320.1
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21.9
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%
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1,325.9
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|
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966.5
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|
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37.2
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%
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Other sales and revenues:
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Extended service plan revenues
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39.8
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39.7
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0.2
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%
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131.0
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126.6
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|
|
3.5
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%
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Service department sales
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23.5
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23.9
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(1.9
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)%
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74.6
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77.3
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(3.5
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)%
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Third-party finance fees, net
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(5.6
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)
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(0.7
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)
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(695.6
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)%
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(11.8
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)
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(7.2
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)
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(63.8
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)%
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Total other sales and revenues
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57.6
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|
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62.9
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(8.4
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)%
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|
|
193.9
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|
|
|
196.7
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|
|
(1.4
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)%
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|
Net sales and operating revenues
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|
$
|
2,260.5
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|
|
$
|
2,119.1
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|
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6.7
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%
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$
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7,527.8
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$
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6,722.9
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12.0
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%
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(1)
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Percent calculations and amounts shown are based on amounts
presented on the attached consolidated statements of earnings and
may not sum due to rounding.
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Retail Vehicle Sales Changes
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Three Months Ended
November 30
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Nine Months Ended
November 30
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2011
|
|
2010
|
|
2011
|
|
2010
|
|
Comparable store vehicle sales:
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Used vehicle units
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(3
|
)%
|
|
16
|
%
|
|
0
|
%
|
|
9
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%
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|
New vehicle units
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|
(3
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)%
|
|
24
|
%
|
|
2
|
%
|
|
(1
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)%
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Total units
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(3
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)%
|
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16
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%
|
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0
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%
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9
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%
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Used vehicle dollars
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3
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%
|
|
18
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%
|
|
7
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%
|
|
15
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%
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New vehicle dollars
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8
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%
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25
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%
|
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11
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%
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0
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%
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Total dollars
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3
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%
|
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19
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%
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7
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%
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15
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%
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Total vehicle sales:
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Used vehicle units
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(1
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)%
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18
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%
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2
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%
|
|
10
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%
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|
New vehicle units
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(13
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)%
|
|
24
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%
|
|
(5
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)%
|
|
(1
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)%
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Total units
|
|
(1
|
)%
|
|
18
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%
|
|
2
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
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Used vehicle dollars
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5
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%
|
|
20
|
%
|
|
8
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%
|
|
16
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%
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|
New vehicle dollars
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(4
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)%
|
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25
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%
|
|
3
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%
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|
0
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%
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Total dollars
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4
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%
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20
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%
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8
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%
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16
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%
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Unit Sales
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Three Months Ended
November 30
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Nine Months Ended
November 30
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2011
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2010
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2011
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2010
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Used vehicles
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90,975
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91,854
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302,311
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296,212
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New vehicles
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1,719
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1,976
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|
5,952
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6,278
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Wholesale vehicles
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72,805
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64,333
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|
242,752
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197,832
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Average Selling Prices
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Three Months Ended
November 30
|
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Nine Months Ended
November 30
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2011
|
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2010
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2011
|
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2010
|
|
Used vehicles
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|
$
|
19,221
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|
$
|
18,177
|
|
$
|
19,170
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|
$
|
18,072
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|
New vehicles
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|
$
|
26,611
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|
$
|
23,994
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|
$
|
25,863
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|
$
|
23,702
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|
Wholesale vehicles
|
|
$
|
5,215
|
|
$
|
4,844
|
|
$
|
5,316
|
|
$
|
4,754
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|
|
|
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Selected Operating Ratios
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(In millions)
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Three Months Ended
November 30
|
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Nine Months Ended
November 30
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|
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2011
|
|
% (1)
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2010
|
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% (1)
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2011
|
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% (1)
|
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2010
|
|
% (1)
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|
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Net sales and operating revenues
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$
|
2,260.5
|
|
100.0
|
%
|
|
$
|
2,119.1
|
|
100.0
|
%
|
|
$
|
7,527.8
|
|
100.0
|
%
|
|
$
|
6,722.9
|
|
100.0
|
%
|
|
Gross profit
|
|
$
|
303.2
|
|
13.4
|
%
|
|
$
|
297.9
|
|
14.1
|
%
|
|
$
|
1,040.6
|
|
13.8
|
%
|
|
$
|
980.6
|
|
14.6
|
%
|
|
CarMax Auto Finance income
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|
$
|
62.6
|
|
2.8
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%
|
|
$
|
55.7
|
|
2.6
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%
|
|
$
|
196.1
|
|
2.6
|
%
|
|
$
|
165.8
|
|
2.5
|
%
|
|
Selling, general, and administrative expenses
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|
$
|
232.3
|
|
10.3
|
%
|
|
$
|
219.7
|
|
10.4
|
%
|
|
$
|
716.9
|
|
9.5
|
%
|
|
$
|
671.6
|
|
10.0
|
%
|
|
Earnings before income taxes
|
|
$
|
132.7
|
|
5.9
|
%
|
|
$
|
133.3
|
|
6.3
|
%
|
|
$
|
517.5
|
|
6.9
|
%
|
|
$
|
472.9
|
|
7.0
|
%
|
|
Net earnings
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$
|
82.8
|
|
3.7
|
%
|
|
$
|
82.4
|
|
3.9
|
%
|
|
$
|
321.0
|
|
4.3
|
%
|
|
$
|
291.4
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
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(1)
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Calculated as the ratio of the applicable amount to net sales
and operating revenues.
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|
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Gross Profit
|
|
|
|
|
|
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|
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|
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|
|
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|
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(In millions)
|
|
Three Months Ended
November 30
|
|
Nine Months Ended
November 30
|
|
|
|
2011
|
|
2010
|
|
Change
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2011
|
|
2010
|
|
Change
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|
Used vehicle gross profit
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|
$
|
197.5
|
|
$
|
193.2
|
|
2.2
|
%
|
|
$
|
662.7
|
|
$
|
644.5
|
|
2.8
|
%
|
|
New vehicle gross profit
|
|
|
2.0
|
|
|
1.6
|
|
25.5
|
%
|
|
|
5.1
|
|
|
4.3
|
|
19.9
|
%
|
|
Wholesale vehicle gross profit
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|
|
66.5
|
|
|
56.5
|
|
17.8
|
%
|
|
|
231.6
|
|
|
176.5
|
|
31.2
|
%
|
|
Other gross profit
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|
|
37.2
|
|
|
46.7
|
|
(20.3
|
)%
|
|
|
141.2
|
|
|
155.3
|
|
(9.1
|
)%
|
|
Total gross profit
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|
$
|
303.2
|
|
$
|
297.9
|
|
1.8
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%
|
|
$
|
1,040.6
|
|
$
|
980.6
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
|
|
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|
|
|
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|
|
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|
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Gross Profit per Unit
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
November 30
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Nine Months Ended
November 30
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|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
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$/unit (1)
|
|
% (2)
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$/unit (1)
|
|
% (2)
|
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$/unit (1)
|
|
% (2)
|
|
$/unit (1)
|
|
% (2)
|
|
Used vehicle gross profit
|
|
$
|
2,171
|
|
|
11.2
|
%
|
|
$
|
2,103
|
|
|
11.4
|
%
|
|
$
|
2,192
|
|
|
11.3
|
%
|
|
$
|
2,176
|
|
|
11.9
|
%
|
|
New vehicle gross profit
|
|
$
|
1,164
|
|
|
4.4
|
%
|
|
$
|
807
|
|
|
3.3
|
%
|
|
$
|
865
|
|
|
3.3
|
%
|
|
$
|
684
|
|
|
2.9
|
%
|
|
Wholesale vehicle gross profit
|
|
$
|
914
|
|
|
17.0
|
%
|
|
$
|
878
|
|
|
17.6
|
%
|
|
$
|
954
|
|
|
17.5
|
%
|
|
$
|
892
|
|
|
18.3
|
%
|
|
Other gross profit
|
|
$
|
401
|
|
|
64.6
|
%
|
|
$
|
497
|
|
|
74.2
|
%
|
|
$
|
458
|
|
|
72.8
|
%
|
|
$
|
514
|
|
|
79.0
|
%
|
|
Total gross profit
|
|
$
|
3,271
|
|
|
13.4
|
%
|
|
$
|
3,175
|
|
|
14.1
|
%
|
|
$
|
3,376
|
|
|
13.8
|
%
|
|
$
|
3,242
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Calculated as category gross profit divided by its respective
units sold, except the other and total categories, which are
divided by total retail units sold.
|
|
(2)
|
|
Calculated as a percentage of its respective sales or revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of CAF Income and Other CAF
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
Three Months Ended
November 30
|
|
Nine Months Ended
November 30
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
$
|
|
% (1)
|
|
$
|
|
% (1)
|
|
$
|
|
% (1)
|
|
$
|
|
% (1)
|
|
Interest and fee income
|
|
$
|
114.3
|
|
|
9.6
|
|
|
$
|
106.8
|
|
|
10.0
|
|
|
$
|
334.0
|
|
|
9.7
|
|
|
$
|
314.1
|
|
|
10.0
|
|
|
Interest expense
|
|
|
(25.6
|
)
|
|
(2.2
|
)
|
|
|
(33.0
|
)
|
|
(3.1
|
)
|
|
|
(80.3
|
)
|
|
(2.3
|
)
|
|
|
(103.4
|
)
|
|
(3.3
|
)
|
|
Interest margin
|
|
|
88.7
|
|
|
7.4
|
|
|
|
73.8
|
|
|
6.9
|
|
|
|
253.7
|
|
|
7.4
|
|
|
|
210.7
|
|
|
6.7
|
|
|
Provision for loan losses
|
|
|
(15.1
|
)
|
|
(1.3
|
)
|
|
|
(8.6
|
)
|
|
(0.8
|
)
|
|
|
(24.9
|
)
|
|
(0.7
|
)
|
|
|
(18.5
|
)
|
|
(0.6
|
)
|
|
Interest margin after provision for loan losses
|
|
|
73.6
|
|
|
6.2
|
|
|
|
65.2
|
|
|
6.1
|
|
|
|
228.8
|
|
|
6.7
|
|
|
|
192.2
|
|
|
6.1
|
|
|
Other gain (loss) (2)
|
|
|
0.3
|
|
|
--
|
|
|
|
1.8
|
|
|
0.2
|
|
|
|
1.4
|
|
|
--
|
|
|
|
6.8
|
|
|
0.2
|
|
|
Direct CAF expenses
|
|
|
(11.3
|
)
|
|
(0.9
|
)
|
|
|
(11.3
|
)
|
|
(1.1
|
)
|
|
|
(34.1
|
)
|
|
(1.0
|
)
|
|
|
(33.2
|
)
|
|
(1.1
|
)
|
|
CarMax Auto Finance income
|
|
$
|
62.6
|
|
|
5.3
|
|
|
$
|
55.7
|
|
|
5.2
|
|
|
$
|
196.1
|
|
|
5.7
|
|
|
$
|
165.8
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average managed receivables (3)
|
|
$
|
4,770.9
|
|
|
|
|
$
|
4,285.3
|
|
|
|
|
$
|
4,585.1
|
|
|
|
|
$
|
4,204.6
|
|
|
|
|
Net loans originated
|
|
$
|
664.0
|
|
|
|
|
$
|
495.2
|
|
|
|
|
$
|
2,125.2
|
|
|
|
|
$
|
1,620.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance for loan losses
|
|
$
|
41.4
|
|
|
|
|
$
|
42.2
|
|
|
|
|
$
|
41.4
|
|
|
|
|
$
|
42.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse facility information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending funded receivables
|
|
$
|
876.0
|
|
|
|
|
$
|
542.0
|
|
|
|
|
$
|
876.0
|
|
|
|
|
$
|
542.0
|
|
|
|
|
Ending unused capacity
|
|
$
|
724.0
|
|
|
|
|
$
|
1,058.0
|
|
|
|
|
$
|
724.0
|
|
|
|
|
$
|
1,058.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Annualized percent of total average managed receivables.
|
|
(2)
|
|
The amount for the nine months ended November 30, 2010,
includes $2.5 million of servicing fee income and interest income
on retained interest in securitized receivables that previously
was reported separately.
|
|
(3)
|
|
Principal balance only.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions except per share data)
|
|
Three Months Ended
November 30
|
|
Nine Months Ended
November 30
|
|
|
|
2011
|
|
2010
|
|
Change
|
|
2011
|
|
2010
|
|
Change
|
|
Net earnings
|
|
$
|
82.8
|
|
$
|
82.4
|
|
0.5
|
%
|
|
$
|
321.0
|
|
$
|
291.4
|
|
10.2
|
%
|
|
Diluted weighted average shares outstanding
|
|
|
230.6
|
|
|
228.5
|
|
0.9
|
%
|
|
|
230.5
|
|
|
226.9
|
|
1.6
|
%
|
|
Net earnings per share
|
|
$
|
0.36
|
|
$
|
0.36
|
|
--
|
|
|
$
|
1.39
|
|
$
|
1.28
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Opening Plan
We currently plan to open the following superstores within 12 months
from November 30, 2011:
|
|
|
|
|
|
|
|
|
Location
|
|
Television
Market
|
|
Market
Status
|
|
Planned
Opening Date
|
|
Chattanooga, Tennessee
|
|
Chattanooga
|
|
New
|
|
Q4 Fiscal 2012
|
|
Lancaster, Pennsylvania
|
|
Harrisburg
|
|
New
|
|
Q1 Fiscal 2013
|
|
Bakersfield, California
|
|
Bakersfield
|
|
New
|
|
Q1 Fiscal 2013
|
|
Nashville, Tennessee
|
|
Nashville
|
|
Existing
|
|
Q2 Fiscal 2013
|
|
Fort Myers, Florida
|
|
Fort Myers
|
|
New
|
|
Q2 Fiscal 2013
|
|
Oxnard, California
|
|
Los Angeles
|
|
Existing
|
|
Q2 Fiscal 2013
|
|
Naples, Florida
|
|
Fort Myers
|
|
New
|
|
Q2 Fiscal 2013
|
|
Des Moines, Iowa
|
|
Des Moines
|
|
New
|
|
Q3 Fiscal 2013
|
|
Denver, Colorado (2 stores)
|
|
Denver
|
|
New
|
|
Q3 Fiscal 2013
|
|
|
|
|
|
|
|
|
We expect to open a total of 10 superstores in the fiscal year ending
February 28, 2013, and between 10 and 15 superstores in each of the
following three fiscal years.
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today,
December 21, 2011. 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 97139403.
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 December 21, 2011, through
April 4, 2012. A telephone replay also will be available through
December 31, 2011, 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 97139403.
Fourth Quarter and Fiscal Year 2012 Earnings
Release Date
We currently plan to release fourth quarter and fiscal 2012 sales and
earnings on Thursday, April 5, 2012, 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 March 2012.
About CarMax
CarMax, a member of the Fortune 500 and the S&P 500,
and one of the Fortune 2011 “100 Best Companies to Work
For,” is the nation’s largest retailer of used cars. Headquartered in
Richmond, Va., CarMax currently operates 107 used car superstores in 52
markets. The CarMax consumer offer is structured around four customer
benefits: low, no-haggle prices; a broad selection; high quality
vehicles; and customer-friendly service. During the twelve months ended
February 28, 2011, the company retailed 396,181 used cars and sold
263,061 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, including changes related to the asset-backed
securitization market.
-
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.
-
Factors related to geographic growth, including the inability to
acquire or lease suitable real estate at favorable terms or to
effectively manage our growth.
-
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 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.
-
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, 2011,
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 November 30
|
|
|
Nine Months Ended November 30
|
|
|
|
2011
|
|
% (1)
|
|
2010
|
|
% (1)
|
|
|
2011
|
|
% (1)
|
|
2010
|
|
% (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used vehicle sales
|
|
$
|
1,766,690
|
|
|
78.2
|
|
$
|
1,688,469
|
|
79.7
|
|
|
$
|
5,853,213
|
|
77.8
|
|
$
|
5,410,133
|
|
80.5
|
|
New vehicle sales
|
|
|
45,997
|
|
|
2.0
|
|
|
47,671
|
|
2.2
|
|
|
|
154,736
|
|
2.1
|
|
|
149,626
|
|
2.2
|
|
Wholesale vehicle sales
|
|
|
390,262
|
|
|
17.3
|
|
|
320,117
|
|
15.1
|
|
|
|
1,325,926
|
|
17.6
|
|
|
966,495
|
|
14.4
|
|
Other sales and revenues
|
|
|
57,565
|
|
|
2.5
|
|
|
62,872
|
|
3.0
|
|
|
|
193,875
|
|
2.6
|
|
|
196,667
|
|
2.9
|
|
Net sales and operating revenues
|
|
|
2,260,514
|
|
|
100.0
|
|
|
2,119,129
|
|
100.0
|
|
|
|
7,527,750
|
|
100.0
|
|
|
6,722,921
|
|
100.0
|
|
Cost of sales
|
|
|
1,957,295
|
|
|
86.6
|
|
|
1,821,219
|
|
85.9
|
|
|
|
6,487,161
|
|
86.2
|
|
|
5,742,345
|
|
85.4
|
|
Gross profit
|
|
|
303,219
|
|
|
13.4
|
|
|
297,910
|
|
14.1
|
|
|
|
1,040,589
|
|
13.8
|
|
|
980,576
|
|
14.6
|
|
CarMax Auto Finance income
|
|
|
62,625
|
|
|
2.8
|
|
|
55,745
|
|
2.6
|
|
|
|
196,112
|
|
2.6
|
|
|
165,844
|
|
2.5
|
|
Selling, general and administrative expenses
|
|
|
232,304
|
|
|
10.3
|
|
|
219,707
|
|
10.4
|
|
|
|
716,944
|
|
9.5
|
|
|
671,635
|
|
10.0
|
|
Interest expense
|
|
|
780
|
|
|
--
|
|
|
801
|
|
--
|
|
|
|
2,358
|
|
--
|
|
|
2,286
|
|
--
|
|
Other income (expense)
|
|
|
(94
|
)
|
|
--
|
|
|
198
|
|
--
|
|
|
|
119
|
|
--
|
|
|
380
|
|
--
|
|
Earnings before income taxes
|
|
|
132,666
|
|
|
5.9
|
|
|
133,345
|
|
6.3
|
|
|
|
517,518
|
|
6.9
|
|
|
472,879
|
|
7.0
|
|
Income tax provision
|
|
|
49,872
|
|
|
2.2
|
|
|
50,981
|
|
2.4
|
|
|
|
196,541
|
|
2.6
|
|
|
181,511
|
|
2.7
|
|
Net earnings
|
|
$
|
82,794
|
|
|
3.7
|
|
$
|
82,364
|
|
3.9
|
|
|
$
|
320,977
|
|
4.3
|
|
$
|
291,368
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
226,446
|
|
|
|
|
|
223,953
|
|
|
|
|
|
226,104
|
|
|
|
|
223,007
|
|
|
|
Diluted
|
|
|
230,632
|
|
|
|
|
|
228,471
|
|
|
|
|
|
230,529
|
|
|
|
|
226,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.37
|
|
|
|
|
$
|
0.37
|
|
|
|
|
$
|
1.42
|
|
|
|
$
|
1.30
|
|
|
|
Diluted
|
|
$
|
0.36
|
|
|
|
|
$
|
0.36
|
|
|
|
|
$
|
1.39
|
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Percents are calculated as a percentage of net sales and
operating revenues and may not equal totals due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARMAX, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
November 30
2011
|
|
November 30
2010
|
|
February 28
2011
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
383,411
|
|
$
|
74,391
|
|
$
|
41,121
|
|
Restricted cash from collections on auto loan receivables
|
|
|
174,392
|
|
|
165,785
|
|
|
161,052
|
|
Accounts receivable, net
|
|
|
54,522
|
|
|
66,045
|
|
|
119,597
|
|
Inventory
|
|
|
1,013,183
|
|
|
1,002,982
|
|
|
1,049,477
|
|
Deferred income taxes
|
|
|
13,085
|
|
|
8,266
|
|
|
5,191
|
|
Other current assets
|
|
|
9,806
|
|
|
20,031
|
|
|
33,660
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
1,648,399
|
|
|
1,337,500
|
|
|
1,410,098
|
|
|
|
|
|
|
|
|
|
Auto loan receivables, net
|
|
|
4,807,804
|
|
|
4,274,572
|
|
|
4,320,575
|
|
Property and equipment, net
|
|
|
988,300
|
|
|
893,421
|
|
|
920,045
|
|
Deferred income taxes
|
|
|
87,705
|
|
|
95,100
|
|
|
92,278
|
|
Other assets
|
|
|
101,193
|
|
|
94,799
|
|
|
96,913
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
7,633,401
|
|
$
|
6,695,392
|
|
$
|
6,839,909
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
246,393
|
|
$
|
218,037
|
|
$
|
269,763
|
|
Accrued expenses and other current liabilities
|
|
|
123,074
|
|
|
110,436
|
|
|
103,389
|
|
Accrued income taxes
|
|
|
13,069
|
|
|
524
|
|
|
772
|
|
Short-term debt
|
|
|
759
|
|
|
677
|
|
|
1,002
|
|
Current portion of long-term debt
|
|
|
838
|
|
|
751
|
|
|
772
|
|
Current portion of non-recourse notes payable
|
|
|
147,183
|
|
|
138,829
|
|
|
132,519
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
531,316
|
|
|
469,254
|
|
|
508,217
|
|
|
|
|
|
|
|
|
|
Long-term debt, excluding current portion
|
|
|
27,713
|
|
|
28,525
|
|
|
28,350
|
|
Non-recourse notes payable, excluding current portion
|
|
|
4,318,046
|
|
|
3,886,871
|
|
|
3,881,142
|
|
Other liabilities
|
|
|
119,474
|
|
|
127,257
|
|
|
130,570
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
4,996,549
|
|
|
4,511,907
|
|
|
4,548,279
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS’ EQUITY
|
|
|
2,636,852
|
|
|
2,183,485
|
|
|
2,291,630
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
7,633,401
|
|
$
|
6,695,392
|
|
$
|
6,839,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARMAX, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended November 30
|
|
|
|
2011
|
|
2010
|
|
Operating Activities:
|
|
|
|
|
|
Net earnings
|
|
$
|
320,977
|
|
|
$
|
291,368
|
|
|
Adjustments to reconcile net earnings to net cash used in
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
48,021
|
|
|
|
43,657
|
|
|
Share-based compensation expense
|
|
|
37,148
|
|
|
|
33,600
|
|
|
Provision for loan losses
|
|
|
24,878
|
|
|
|
18,450
|
|
|
Loss on disposition of assets
|
|
|
1,331
|
|
|
|
443
|
|
|
Deferred income tax (benefit) provision
|
|
|
(3,858
|
)
|
|
|
14,352
|
|
|
Net decrease (increase) in:
|
|
|
|
|
|
Accounts receivable, net
|
|
|
65,075
|
|
|
|
13,014
|
|
|
Retained interest in securitized receivables
|
|
|
--
|
|
|
|
43,746
|
|
|
Inventory
|
|
|
36,294
|
|
|
|
(159,849
|
)
|
|
Other current assets
|
|
|
24,038
|
|
|
|
(15,879
|
)
|
|
Auto loan receivables, net
|
|
|
(512,107
|
)
|
|
|
(249,427
|
)
|
|
Other assets
|
|
|
(5,075
|
)
|
|
|
(5,984
|
)
|
|
Net decrease in:
|
|
|
|
|
|
Accounts payable, accrued expenses and other current liabilities
and accrued income taxes
|
|
|
(21,673
|
)
|
|
|
(48,602
|
)
|
|
Other liabilities
|
|
|
(17,476
|
)
|
|
|
(1,377
|
)
|
|
Net cash used in operating activities
|
|
|
(2,427
|
)
|
|
|
(22,488
|
)
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(105,990
|
)
|
|
|
(38,536
|
)
|
|
Proceeds from sales of assets
|
|
|
--
|
|
|
|
8
|
|
|
Increase in restricted cash from collections on auto loan
receivables
|
|
|
(13,340
|
)
|
|
|
(3,177
|
)
|
|
Increase in restricted cash in reserve accounts
|
|
|
(8,573
|
)
|
|
|
(11,310
|
)
|
|
Release of restricted cash from reserve accounts
|
|
|
12,088
|
|
|
|
11,421
|
|
|
(Purchases) sales of money market securities, net
|
|
|
(520
|
)
|
|
|
4,001
|
|
|
Purchase of investments available-for-sale
|
|
|
(2,252
|
)
|
|
|
--
|
|
|
Sales of investments available-for-sale
|
|
|
52
|
|
|
|
--
|
|
|
Net cash used in investing activities
|
|
|
(118,535
|
)
|
|
|
(37,593
|
)
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
Decrease in short-term debt, net
|
|
|
(243
|
)
|
|
|
(206
|
)
|
|
Issuances of long-term debt
|
|
|
--
|
|
|
|
243,300
|
|
|
Payments on long-term debt
|
|
|
(571
|
)
|
|
|
(365,451
|
)
|
|
Issuances of non-recourse notes payable
|
|
|
3,633,000
|
|
|
|
2,947,000
|
|
|
Payments on non-recourse notes payable
|
|
|
(3,181,432
|
)
|
|
|
(2,747,710
|
)
|
|
Equity issuances, net
|
|
|
5,039
|
|
|
|
31,945
|
|
|
Excess tax benefits from share-based payment arrangements
|
|
|
7,459
|
|
|
|
7,316
|
|
|
Net cash provided by financing activities
|
|
|
463,252
|
|
|
|
116,194
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
|
342,290
|
|
|
|
56,113
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
41,121
|
|
|
|
18,278
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
383,411
|
|
|
$
|
74,391
|
|
|
|
|
|
|
|
|
|
|
|
Source: CarMax, Inc.
CarMax, Inc.
Investors and Financial Media:
Katharine Kenny,
Vice President, Investor Relations, (804) 935-4591
Celeste Gunter,
Manager, Investor Relations, (804) 935-4597
or
General Media:
Laura
Donahue, Vice President, Public Affairs, (804) 747-0422, ext. 4434
Trina
Lee, Director, Public Relations (804) 747-0422, ext. 4197