CarMax, Inc : CarMax Reports Record Fourth Quarter and Fiscal Year Results
04/05/2012| 07:40am US/Eastern
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CarMax, Inc. (NYSE:KMX) today reported record results for the fourth
quarter and fiscal year ended February 29, 2012.
Net sales and operating revenues increased 10% to $2.48 billion from
$2.25 billion in the fourth quarter of last year. For the fiscal year,
net sales and operating revenues increased 11% to $10.00 billion from
$8.98 billion in fiscal 2011.
Comparable store used unit sales increased 4% in the fourth quarter
and 1% in the fiscal year.
Total used unit sales rose 6% in the fourth quarter and 3% in the
fiscal year.
Total wholesale unit sales increased 13% in the fourth quarter and 20%
in the fiscal year.
CarMax Auto Finance (CAF) income rose 22% to $66.1 million in the
fourth quarter. For the fiscal year, CAF income rose 19% to $262.2
million.
Fourth quarter net earnings increased 7% to $95.0 million, or $0.41
per diluted share, compared with $88.8 million, or $0.39 per diluted
share, in the prior year quarter.
Fiscal 2012 net earnings increased 10% to $413.8 million, or $1.79 per
diluted share, compared with $377.5 million, or $1.65 per diluted
share, in fiscal 2011.
"We are pleased to report strong fourth quarter and full year results,"
said Tom Folliard, president and chief executive officer. "We hit some
major milestones this year, including total revenues of $10 billion and
annual used retail vehicle sales in excess of 400,000 units, and we look
forward to continued growth as we expand our store base in the coming
years."
Fourth Quarter Business Performance Review
Sales. Comparable store used unit
sales grew 4% compared with a 12% increase in last year's fourth
quarter. Used unit sales benefited from strong subprime-financed sales,
as well as an extra day in the current year quarter due to leap year.
For the fiscal year, our data indicates that we increased our share of
the late-model (0-to 6-year old) used vehicle market by approximately
3%. We remain confident that the strength of our consumer offer and the
skill of our associates, combined with our resumption of store growth,
will continue to drive future share gains.
Wholesale unit sales increased 13% compared with the fourth quarter of
fiscal 2011. Similar to the last several quarters, our wholesale volumes
benefited from a strong increase in appraisal traffic and a solid buy
percentage. We believe appraisal traffic is benefiting from the increase
in industry new car sales.
Other sales and revenues declined 12% compared with the prior year's
fourth quarter. The decrease was primarily due to a reduction in
third-party finance fees, which resulted from a mix change among
third-party finance providers. Subprime providers, who generally
purchase subprime financings at a discount, originated 15% of used
vehicle sales in the current year's quarter compared with 9% in the
prior year's fourth quarter. At the same time, as CAF has continued to
retain an increased portion of the loans that had been purchased by
third-party providers, the fees received from these third parties have
declined.
Gross Profit. Total gross profit
increased 5% to $338.2 million from $320.7 million in the fourth quarter
of fiscal 2011, reflecting a higher gross profit contribution from
retail and wholesale vehicles, partly offset by a reduction in other
gross profit.
Used vehicle gross profit increased 8% to $225.8 million from $209.5
million in the prior year period. The improvement resulted from the
combination of the 6% increase in used units and a 2% increase in gross
profit per unit, to $2,135 from $2,096 in the prior year quarter. Last
year, we reported that our efforts to eliminate waste from our used
vehicle reconditioning processes in recent years had allowed us to
achieve a cumulative, sustainable reduction in average reconditioning
costs of approximately $250 per vehicle. Adjusting for an increase in
the average age of vehicles reconditioned and sold, we continued to
realize $250 per unit in savings in fiscal 2012.
Wholesale gross profit increased 13% to $70.2 million compared with
$62.4 million in the fourth quarter of the prior year, which was driven
by the 13% increase in wholesale unit sales. Wholesale gross profit per
unit of $950 was similar to the $956 in the prior year quarter. The
strength of our wholesale gross profit per unit continued to be fueled
by the strong demand and pricing at our auctions.
Other gross profit declined 14% to $40.8 million from $47.6 million in
the prior year period. The decrease was similar to the decline in other
sales and revenues and was primarily due to the change in third-party
finance fees.
CarMax Auto Finance. CAF income
increased 22% to $66.1 million compared with $54.1 million in last
year's fourth quarter, primarily due to an increase in interest margin,
which rose to $88.9 million from $74.6 million. The growth 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 36% 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 purchasing. As of January 2012, CAF had transitioned back to
retaining all of these loans. The provision for loan losses was 0.9% of
average receivables in both the current year and prior year quarter, as
favorable loss experience in fiscal 2012 largely offset the cumulative
effect of the origination and retention of loans with greater credit
risk.
SG&A. Selling, general and
administrative expenses increased 7% to $243.5 million from $226.9
million in the prior year's fourth quarter. The increase in SG&A
expenses reflected the expansion of our store base, increases in sales
commissions and other variable costs, and higher growth-related costs,
partly offset by lower advertising expense. Growth-related costs include
store pre-opening expenses, relocation expenses and costs of maintaining
management bench strength to support future growth. SG&A per used unit
increased slightly, to $2,302 versus $2,270 in the prior year's quarter.
The SG&A ratio improved to 9.8% compared with 10.1% in the prior year
quarter, reflecting the leverage associated with the increases in used
and wholesale vehicle sales, and average selling prices.
Superstore Openings. During the
fourth quarter of fiscal 2012, we entered the Chattanooga, Tennessee
market. Subsequent to the end of the fiscal year, we opened a store in
Lancaster, Pennsylvania.
Supplemental Financial Information
Sales Components
Three Months Ended
Fiscal Year Ended
(In millions)
February 29 or 28 (1)
February 29 or 28 (1)
2012
2011
Change
2012
2011
Change
Used vehicle sales
$
1,973.7
$
1,799.9
9.7
%
$
7,826.9
$
7,210.0
8.6
%
New vehicle sales
45.8
48.9
(6.3
)%
200.6
198.5
1.0
%
Wholesale vehicle sales
395.7
335.2
18.1
%
1,721.6
1,301.7
32.3
%
Other sales and revenues:
Extended service plan revenues
48.6
47.3
2.7
%
179.6
173.8
3.3
%
Service department sales
24.0
23.3
3.0
%
98.6
100.6
(2.0
)%
Third-party finance fees, net
(12.0
)
(1.9
)
(520.4
)%
(23.8
)
(9.1
)
(160.1
)%
Total other sales and revenues
60.6
68.6
(11.7
)%
254.5
265.3
(4.1
)%
Net sales and operating revenues
$
2,475.8
$
2,252.6
9.9
%
$
10,003.6
$
8,975.6
11.5
%
(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
Fiscal Year Ended
February 29 or 28
February 29 or 28
2012
2011
2012
2011
Comparable store vehicle sales:
Used vehicle units
4
%
12
%
1
%
10
%
New vehicle units
(2
)%
30
%
1
%
5
%
Total units
4
%
13
%
1
%
10
%
Used vehicle dollars
7
%
16
%
7
%
15
%
New vehicle dollars
4
%
37
%
9
%
7
%
Total dollars
7
%
17
%
7
%
15
%
Total vehicle sales:
Used vehicle units
6
%
14
%
3
%
11
%
New vehicle units
(12
)%
27
%
(7
)%
5
%
Total units
5
%
14
%
3
%
11
%
Used vehicle dollars
10
%
18
%
9
%
16
%
New vehicle dollars
(6
)%
34
%
1
%
6
%
Total dollars
9
%
18
%
8
%
16
%
Unit Sales
Three Months Ended
Fiscal Year Ended
February 29 or 28
February 29 or 28
2012
2011
2012
2011
Used vehicles
105,769
99,969
408,080
396,181
New vehicles
1,727
1,953
7,679
8,231
Wholesale vehicles
73,897
65,229
316,649
263,061
Average Selling Prices
Three Months Ended
Fiscal Year Ended
February 29 or 28
February 29 or 28
2012
2011
2012
2011
Used vehicles
$
18,495
$
17,862
$
18,995
$
18,019
New vehicles
$
26,409
$
24,911
$
25,986
$
23,989
Wholesale vehicles
$
5,208
$
5,004
$
5,291
$
4,816
Selected Operating Ratios
Three Months Ended
Fiscal Year Ended
(In millions)
February 29 or 28
February 29 or 28
2012
% (1)
2011
% (1)
2012
% (1)
2011
% (1)
Net sales and operating revenues
$
2,475.8
100.0
%
$
2,252.6
100.0
%
$
10,003.6
100.0
%
$
8,975.6
100.0
%
Gross profit
$
338.2
13.7
%
$
320.7
14.2
%
$
1,378.8
13.8
%
$
1,301.2
14.5
%
CarMax Auto Finance income
$
66.1
2.7
%
$
54.1
2.4
%
$
262.2
2.6
%
$
220.0
2.5
%
Selling, general, and administrative expenses
$
243.5
9.8
%
$
226.9
10.1
%
$
940.8
9.4
%
$
878.8
9.8
%
Interest expense
$
8.4
0.3
%
$
8.6
0.4
%
$
33.7
0.3
%
$
34.7
0.4
%
Earnings before income taxes
$
152.8
6.2
%
$
139.4
6.2
%
$
666.9
6.7
%
$
608.2
6.8
%
Net earnings
$
95.0
3.8
%
$
88.8
3.9
%
$
413.8
4.1
%
$
377.5
4.2
%
(1)
Calculated as the ratio of the applicable amount to net sales
and operating revenues.
Gross Profit
Three Months Ended
Fiscal Year Ended
(In millions)
February 29 or 28
February 29 or 28
2012
2011
Change
2012
2011
Change
Used vehicle gross profit
$
225.8
$
209.5
7.8
%
$
888.6
$
854.0
4.0
%
New vehicle gross profit
1.4
1.1
19.8
%
6.5
5.4
19.9
%
Wholesale vehicle gross profit
70.2
62.4
12.6
%
301.8
238.8
26.4
%
Other gross profit
40.8
47.6
(14.4
)%
181.9
203.0
(10.4
)%
Total gross profit
$
338.2
$
320.7
5.5
%
$
1,378.8
$
1,301.2
6.0
%
Gross Profit per Unit
Three Months Ended
Fiscal Year Ended
February 29 or 28
February 29 or 28
2012
2011
2012
2011
$/unit (1)
% (2)
$/unit(1)
% (2)
$/unit (1)
% (2)
$/unit(1)
% (2)
Used vehicle gross profit
$
2,135
11.4
%
$
2,096
11.6
%
$
2,177
11.4
%
$
2,156
11.8
%
New vehicle gross profit
$
784
3.0
%
$
578
2.3
%
$
847
3.2
%
$
659
2.7
%
Wholesale vehicle gross profit
$
950
17.7
%
$
956
18.6
%
$
953
17.5
%
$
908
18.3
%
Other gross profit
$
379
67.3
%
$
467
69.4
%
$
438
71.5
%
$
502
76.5
%
Total gross profit
$
3,146
13.7
%
$
3,146
14.2
%
$
3,316
13.8
%
$
3,218
14.5
%
(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
Three Months Ended
Fiscal Year Ended
(In millions)
February 29 or 28
February 29 or 28
2012
2011
2012
2011
$
% (1)
$
% (1)
$
% (1)
$
% (1)
Interest and fee income
$
114.7
9.4
$
104.9
9.7
$
448.7
9.6
$
419.1
9.9
Interest expense
(25.8
)
(2.1
)
(30.3
)
(2.8
)
(106.1
)
(2.3
)
(133.8
)
(3.2
)
Interest margin
88.9
7.3
74.6
6.9
342.6
7.3
285.3
6.7
Provision for loan losses
(11.5
)
(0.9
)
(9.3
)
(0.9
)
(36.4
)
(0.8
)
(27.7
)
(0.7
)
Interest margin after provision for loan losses
77.4
6.3
65.3
6.1
306.2
6.6
257.6
6.1
Other gain(2)
0.1
--
0.7
0.1
1.5
--
7.5
0.2
Direct CAF expenses
(11.4
)
(0.9
)
(11.9
)
(1.1
)
(45.5
)
(1.0
)
(45.1
)
(1.1
)
CarMax Auto Finance income
$
66.1
5.4
$
54.1
5.0
$
262.2
5.6
$
220.0
5.2
Total average managed receivables (3)
$
4,894.4
$
4,305.9
$
4,662.4
$
4,229.9
Net loans originated
$
717.7
$
527.1
$
2,842.9
$
2,147.4
Ending allowance for loan losses
$
43.3
$
38.9
$
43.3
$
38.9
Warehouse facility information:
Ending funded receivables
$
553.0
$
943.0
$
553.0
$
943.0
Ending unused capacity
$
1,047.0
$
657.0
$
1,047.0
$
657.0
(1)
Annualized percent of total average managed receivables.
(2)
The amount for the fiscal year ended February 28, 2011,
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
Three Months Ended
Fiscal Year Ended
(In millions except per share data)
February 29 or 28
February 29 or 28
2012
2011
Change
2012
2011
Change
Net earnings
$ 95.0
$ 88.8
7.1%
$413.8
$377.5
9.6%
Diluted weighted average shares outstanding
231.3
229.7
0.7%
230.7
227.6
1.4%
Net earnings per share
$ 0.41
$ 0.39
5.1%
$ 1.79
$ 1.65
8.5%
Store Opening Plan
We currently plan to open the following ten superstores during the
fiscal year ending February 28, 2013:
Television
Market
Planned
Location
Market
Status
Opening Date
Lancaster, Pennsylvania (1)
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
Naples, Florida
Fort Myers
New
Q2 Fiscal 2013
Oxnard, California
Los Angeles
Existing
Q3 Fiscal 2013
Des Moines, Iowa
Des Moines
New
Q3 Fiscal 2013
Denver, Colorado (2 stores)
Denver
New
Q3 Fiscal 2013
Jacksonville, Florida
Jacksonville
Existing
Q4 Fiscal 2013
(1) Opened in March 2012.
Normal construction, permitting or other scheduling delays could shift
the opening dates of any of these stores into a later period. We expect
to open between 10 and 15 superstores during each of the three fiscal
years following fiscal 2013.
We currently estimate capital expenditures will total approximately $280
million in fiscal 2013.
Lease Accounting Revisions
We have revised our previously issued consolidated financial statements
to correct our accounting for sale-leasebacks entered into between 1995
and 2009. As a result of the revision, we have recorded certain
properties subject to the sale-leasebacks as assets and the related sale
proceeds as financing liabilities. Depreciation is being recognized on
the assets. Payments on the leases are now recognized as interest
expense and a reduction in the financing liabilities, rather than being
recognized as rent expense. We have determined that our financial
statements were not materially affected by the revision. As a result of
the correction, reported net earnings per diluted share were reduced by
$0.02 in both fiscal 2012 and fiscal 2011.
More detailed information will be provided in the annual consolidated
financial statements included in our Annual Report on Form 10-K for the
fiscal year ended February 29, 2012. In addition, for the convenience of
investors, a summary of our revised consolidated statements of earnings
for each of the interim quarters in the fiscal years ended February 29,
2012, and February 28, 2011, is included in this release.
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today,
April 5, 2012. 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 89939336. 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 April 5, 2012, through June
20, 2012. A telephone replay also will be available through April 13,
2012, and may be accessed by dialing 1-855-859-2056 (international
callers dial 1-404-537-3406). The conference I.D. for both domestic and
international callers is 89939336.
First Quarter Fiscal 2013 Earnings Release Date
We currently plan to release first quarter fiscal 2013 sales and
earnings on Thursday, June 21, 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 early June 2012.
About CarMax
CarMax, a member of the Fortune 500 and the S&P 500,
and one of the Fortune 2012 "100 Best Companies to Work
For," is the nation's largest retailer of used cars. Headquartered in
Richmond, Va., CarMax currently operates 109 used car superstores in 54
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 29, 2012, the company retailed 408,080 used cars and sold
316,649 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 February 29 or 28
Fiscal Year Ended February 29 or 28
2012
% (2)
2011
% (2)
2012(1)
% (2)
2011(1)
% (2)
Sales and operating revenues:
Used vehicle sales
$
1,973,698
79.7
$
1,799,884
79.9
$
7,826,911
78.2
$
7,210,017
80.3
New vehicle sales
45,848
1.9
48,906
2.2
200,584
2.0
198,532
2.2
Wholesale vehicle sales
395,721
16.0
335,208
14.9
1,721,647
17.2
1,301,703
14.5
Other sales and revenues
60,582
2.4
68,635
3.0
254,457
2.5
265,302
3.0
Net sales and operating revenues
2,475,849
100.0
2,252,633
100.0
10,003,599
100.0
8,975,554
100.0
Cost of sales
2,137,677
86.3
1,931,981
85.8
8,624,838
86.2
7,674,326
85.5
Gross profit
338,172
13.7
320,652
14.2
1,378,761
13.8
1,301,228
14.5
CarMax Auto Finance income
66,073
2.7
54,139
2.4
262,185
2.6
219,983
2.5
Selling, general and administrative expenses
243,479
9.8
226,906
10.1
940,786
9.4
878,805
9.8
Interest expense
8,351
0.3
8,554
0.4
33,714
0.3
34,680
0.4
Other income
345
--
100
--
464
--
480
--
Earnings before income taxes
152,760
6.2
139,431
6.2
666,910
6.7
608,206
6.8
Income tax provision
57,729
2.3
50,677
2.2
253,115
2.5
230,711
2.6
Net earnings
$
95,031
3.8
$
88,754
3.9
$
413,795
4.1
$
377,495
4.2
Weighted average common shares:
Basic
226,822
224,801
226,282
223,449
Diluted
231,300
229,656
230,721
227,601
Net earnings per share:
Basic
$
0.42
$
0.39
$
1.83
$
1.68
Diluted
$
0.41
$
0.39
$
1.79
$
1.65
(1)
Revisions to correct our accounting for sale-leasebacks reduced
reported net earnings per diluted share by $0.02 in both fiscal
2012 and fiscal 2011.
(2)
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)
February 29
February 28
2012
2011 (1)
ASSETS
Current assets:
Cash and cash equivalents
$
442,658
$
41,121
Restricted cash from collections on auto loan receivables
204,314
161,052
Accounts receivable, net
86,434
119,597
Inventory
1,092,592
1,049,477
Deferred income taxes
9,938
5,191
Other current assets
17,512
33,660
Total current assets
1,853,448
1,410,098
Auto loan receivables, net
4,959,847
4,320,575
Property and equipment, net
1,278,722
1,175,317
Deferred income taxes
133,134
123,685
Other assets
106,392
95,874
TOTAL ASSETS
$
8,331,543
$
7,125,549
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
324,827
$
269,763
Accrued expenses and other current liabilities
128,973
105,998
Accrued income taxes
3,125
772
Short-term debt
943
1,002
Current portion of financing and capital lease obligations
14,108
12,617
Current portion of non-recourse notes payable
174,337
132,519
Total current liabilities
646,313
522,671
Financing and capital lease obligations, excluding current portion
353,566
367,617
Non-recourse notes payable, excluding current portion
4,509,752
3,881,142
Other liabilities
148,800
114,870
TOTAL LIABILITIES
5,658,431
4,886,300
TOTAL SHAREHOLDERS' EQUITY
2,673,112
2,239,249
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
8,331,543
$
7,125,549
(1)
Revisions to correct our accounting for sale-leasebacks
increased total assets by $285.6 million and total liabilities by
$338.0 million, and reduced total shareholders' equity by $52.4
million as of February 28, 2011.
CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
Fiscal Year Ended February 29 or 28
2012
2011(1)
Operating Activities:
Net earnings
$
413,795
$
377,495
Adjustments to reconcile net earnings to net cash used in operating
activities:
Depreciation and amortization
82,812
76,321
Share-based compensation expense
48,089
43,606
Provision for loan losses
36,439
27,749
Loss on disposition of assets
2,817
1,143
Deferred income tax (benefit) provision
(872
)
17,493
Net decrease (increase) in:
Accounts receivable, net
33,163
(40,538
)
Retained interest in securitized receivables
--
43,746
Inventory
(43,115
)
(206,344
)
Other current assets
15,919
(27,403
)
Auto loan receivables, net
(675,711
)
(304,729
)
Other assets
(6,986
)
(7,173
)
Net increase (decrease) in:
Accounts payable, accrued expenses and other current liabilities
and accrued income taxes
43,138
(8,802
)
Other liabilities
(11,652
)
678
Net cash used in operating activities
(62,164
)
(6,758
)
Investing Activities:
Capital expenditures
(172,616
)
(76,580
)
Proceeds from sales of assets
8
8
(Increase) decrease in restricted cash from collections on auto loan
receivables
(43,262
)
1,556
Increase in restricted cash in reserve accounts
(12,364
)
(12,631
)
Release of restricted cash from reserve accounts
12,096
11,434
(Purchases) sales of money market securities, net
(678
)
4,001
Purchase of investments available-for-sale
(2,638
)
--
Sales of investments available-for-sale
52
--
Net cash used in investing activities
(219,402
)
(72,212
)
Financing Activities:
(Decrease) increase in short-term debt, net
(59
)
119
Issuances of long-term debt
--
243,300
Payments on long-term debt
--
(364,900
)
Payments on financing and capital lease obligations
(12,560
)
(11,145
)
Issuances of non-recourse notes payable
5,130,000
3,348,000
Payments on non-recourse notes payable
(4,459,572
)
(3,160,749
)
Equity issuances, net
15,577
38,277
Excess tax benefits from share-based payment arrangements
9,717
8,911
Net cash provided by financing activities
683,103
101,813
Increase in cash and cash equivalents
401,537
22,843
Cash and cash equivalents at beginning of year
41,121
18,278
Cash and cash equivalents at end of year
$
442,658
$
41,121
(1)
Revisions to correct our accounting for sale-leasebacks reduced
fiscal 2011 net cash used in operating activities by $10.4 million
and net cash provided by financing activities by an equal amount.
CARMAX, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
REVISED CONSOLIDATED QUARTERLY STATEMENTS
OF EARNINGS (1)
FISCAL YEAR ENDED FEBRUARY 29, 2012
(UNAUDITED)
(In thousands except per share data)
Q1 FY12
% (2)
Q2 FY12
% (2)
Q3 FY12
% (2)
Q4 FY12
% (2)
Sales and operating revenues:
Used vehicle sales
$
2,071,540
77.3
$
2,014,983
77.9
$
1,766,690
78.2
$
1,973,698
79.7
New vehicle sales
61,886
2.3
46,853
1.8
45,997
2.0
45,848
1.9
Wholesale vehicle sales
477,794
17.8
457,870
17.7
390,262
17.3
395,721
16.0
Other sales and revenues
68,197
2.5
68,113
2.6
57,565
2.5
60,582
2.4
Net sales and operating revenues
2,679,417
100.0
2,587,819
100.0
2,260,514
100.0
2,475,849
100.0
Cost of sales
2,296,322
85.7
2,233,544
86.3
1,957,295
86.6
2,137,677
86.3
Gross profit
383,095
14.3
354,275
13.7
303,219
13.4
338,172
13.7
CarMax Auto Finance income
69,661
2.6
63,826
2.5
62,625
2.8
66,073
2.7
Selling, general and administrative expenses
241,655
9.0
229,887
8.9
225,765
10.0
243,479
9.8
Interest expense
8,540
0.3
8,464
0.3
8,359
0.4
8,351
0.3
Other income (expense)
103
--
110
--
(94
)
--
345
--
Earnings before income taxes
202,664
7.6
179,860
7.0
131,626
5.8
152,760
6.2
Income tax provision
77,164
2.9
68,706
2.7
49,516
2.2
57,729
2.3
Net earnings
$
125,500
4.7
$
111,154
4.3
$
82,110
3.6
$
95,031
3.8
Weighted average common shares:
Basic
225,570
226,300
226,446
226,822
Diluted
230,278
230,681
230,632
231,300
Net earnings per share:
Basic
$
0.56
$
0.49
$
0.36
$
0.42
Diluted
$
0.54
$
0.48
$
0.36
$
0.41
(1)
The consolidated statements of earnings for the interim
quarters in the fiscal year ended February 29, 2012, have been
revised to correct our accounting for sale-leasebacks entered into
between 1995 and 2009.
(2)
Percents are calculated as a percentage of net sales and
operating revenues and may not equal totals due to rounding.
CARMAX, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
REVISED CONSOLIDATED QUARTERLY STATEMENTS
OF EARNINGS (1)
FISCAL YEAR ENDED FEBRUARY 28, 2011
(UNAUDITED)
(In thousands except per share data)
Q1 FY11
% (2)
Q2 FY11
% (2)
Q3 FY11
% (2)
Q4 FY11
% (2)
Sales and operating revenues:
Used vehicle sales
$
1,832,066
81.0
$
1,889,598
80.7
$
1,688,469
79.7
$
1,799,884
79.9
New vehicle sales
50,898
2.3
51,057
2.2
47,671
2.2
48,906
2.2
Wholesale vehicle sales
316,489
14.0
329,889
14.1
320,117
15.1
335,208
14.9
Other sales and revenues
62,459
2.8
71,336
3.0
62,872
3.0
68,635
3.0
Net sales and operating revenues
2,261,912
100.0
2,341,880
100.0
2,119,129
100.0
2,252,633
100.0
Cost of sales
1,928,364
85.3
1,992,762
85.1
1,821,219
85.9
1,931,981
85.8
Gross profit
333,548
14.7
349,118
14.9
297,910
14.1
320,652
14.2
CarMax Auto Finance income
57,495
2.5
52,604
2.2
55,745
2.6
54,139
2.4
Selling, general and administrative expenses
220,079
9.7
218,664
9.3
213,156
10.1
226,906
10.1
Interest expense
8,081
0.4
9,361
0.4
8,684
0.4
8,554
0.4
Other income (expense)
80
--
102
--
198
--
100
--
Earnings before income taxes
162,963
7.2
173,799
7.4
132,013
6.2
139,431
6.2
Income tax provision
62,738
2.8
66,794
2.9
50,502
2.4
50,677
2.2
Net earnings
$
100,225
4.4
$
107,005
4.6
$
81,511
3.8
$
88,754
3.9
Weighted average common shares:
Basic
222,221
222,857
223,953
224,801
Diluted
226,179
226,132
228,471
229,656
Net earnings per share:
Basic
$
0.45
$
0.48
$
0.36
$
0.39
Diluted
$
0.44
$
0.47
$
0.36
$
0.39
(1)
The consolidated statements of earnings for the interim
quarters in the fiscal year ended February 28, 2011, have been
revised to correct our accounting for sale-leasebacks entered into
between 1995 and 2009.
(2)
Percents are calculated as a percentage of net sales and
operating revenues and may not equal totals due to rounding.
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: Trina
Lee, Director, Public Relations (804) 747-0422, ext. 4197 Britt
Farrar, Manager, Public Relations, (804)747-0422, ext. 3473
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