RICHMOND, Va.--(BUSINESS WIRE)--
CarMax, Inc. (NYSE: KMX) today announced that its Board of Directors has
approved a $2 billion expansion of the company’s share repurchase
program, for an aggregate share repurchase authorization of $3.8 billion
since the initial announcement of the program in October 2012. As of
August 31, 2014, the company had made $893 million of repurchases under
the program. The expanded authorization is effective immediately and
expires on December 31, 2016.
“We’re very pleased with the Board’s expansion of our share repurchase
program, which reflects both confidence in our ability to fund the
company’s growth plan and a continuing commitment to increase
shareholder value,” said
Tom Folliard
, CarMax’s president and chief
executive officer.
The company expects to fund the expanded share repurchase program
through a combination of cash from operations, the company’s credit
facility and other additional indebtedness. The company’s Board of
Directors has approved the company’s incurrence of new indebtedness in
an amount up to $1 billion.
Repurchases may be made from time to time in the open market at
prevailing prices, by block purchases, in privately negotiated
transactions or in such other manner as determined by the company. The
timing of the repurchases and the actual amount repurchased will depend
on a variety of factors, including the market price of the company’s
shares, general market and economic conditions, and other factors. The
share repurchase program does not obligate CarMax to acquire any
particular amount of common stock and it may be suspended or
discontinued at any time. Any shares repurchased under the program will
be deemed authorized but unissued shares of common stock.
CarMax, a member of the Fortune 500 and the S&P 500,
and one of the Fortune “100 Best Companies to Work
For,” for ten consecutive years, is the nation’s largest retailer of
used vehicles. Headquartered in Richmond, Va., CarMax currently operates
141 used car stores in 71 markets. The CarMax consumer offer features
low, no-haggle prices, a broad selection of CarMax Quality Certified
used vehicles and superior customer service. During the fiscal year
ended February 28, 2014, the company retailed 526,929 used vehicles and
sold 342,576 wholesale vehicles at our in-store auctions. For more
information, access the CarMax website at www.carmax.com.
Forward-Looking Statements
This press release contains forward-looking statements about our future
business and growth plans and prospects, as well as our potential share
repurchase and related financing activity. These statements are based on
our current knowledge and assumptions about future events and involve
risks and uncertainties that could cause actual results to differ
materially from anticipated results. Important factors that could cause
actual results to differ materially from those contained in our
forward-looking statements are set forth in our Annual Report on Form
10-K for the fiscal year ended February 28, 2014, and our quarterly or
current reports as filed with or furnished to the Securities and
Exchange Commission. We undertake no obligation to update or revise any
forward-looking statements after the date they are made, whether as a
result of new information, future events or otherwise.
Source: CarMax, Inc.