This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

CarMax Reports Record Third Quarter Results

Fourth Quarter and Fiscal Year 2013 Earnings Release Date

We currently plan to release fourth quarter and fiscal year 2013 results on Wednesday, April 10, 2013, 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 2013.

About CarMax

CarMax, a member of the Fortune 500 and the S&P 500 , and one of the Fortune “100 Best Companies to Work For,” for eight consecutive years, is the nation’s largest retailer of used vehicles. Headquartered in Richmond, Va., CarMax currently operates 117 used car superstores in 58 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 twelve months ended February 29, 2012, the company retailed 408,080 used vehicles 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.
  • Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer information.
  • Events that damage our reputation or harm the perception of the quality of our brand.
  • 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 or a significant increase in labor costs.
  • The failure of key information systems.
  • The effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
  • The effect of various litigation matters.
  • Adverse conditions affecting one or more automotive manufacturers or manufacturer recalls.
  • The occurrence of severe weather events.
  • Factors related to the seasonal fluctuations in our business.
  • Factors related to the geographic concentration of our superstores.
  • Acts of terrorism, the outbreak of war, or other significant national or international events.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2012, 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)

 

               
Three Months Ended November 30 Nine Months Ended November 30
(In thousands except per share data)   2012   % (1)   2011 (2)   % (1)   2012   % (1)   2011 (2)   % (1)
SALES AND OPERATING REVENUES:
Used vehicle sales $ 2,068,742 79.5 $ 1,766,690 78.2 $ 6,449,613 79.3 $ 5,853,213 77.8
New vehicle sales 45,693 1.8 45,997 2.0 162,543 2.0 154,736 2.1
Wholesale vehicle sales 427,650 16.4 390,262 17.3 1,332,495 16.4 1,325,926 17.6
Other sales and revenues     60,361   2.3     57,565   2.5     190,219   2.3     193,875   2.6
NET SALES AND OPERATING REVENUES 2,602,446 100.0 2,260,514 100.0 8,134,870 100.0 7,527,750 100.0
Cost of sales     2,257,227   86.7     1,957,295   86.6     7,039,743   86.5     6,487,161   86.2
GROSS PROFIT 345,219 13.3 303,219 13.4 1,095,127 13.5 1,040,589 13.8
CARMAX AUTO FINANCE INCOME 72,454 2.8 62,625 2.8 223,309 2.7 196,112 2.6
Selling, general and administrative expenses 257,282 9.9 225,765 10.0 765,559 9.4 697,307 9.3
Interest expense 8,065 0.3 8,359 0.4 24,360 0.3 25,363 0.3
Other income (expense)     139       (94)       683       119  
Earnings before income taxes 152,465 5.9 131,626 5.8 529,200 6.5 514,150 6.8
Income tax provision     57,784   2.2     49,516   2.2     202,137   2.5     195,386   2.6
NET EARNINGS   $ 94,681   3.6   $ 82,110   3.6   $ 327,063   4.0   $ 318,764   4.2
WEIGHTED AVERAGE COMMON SHARES:
Basic 228,904 226,446 228,346 226,104
Diluted 232,656 230,632 232,048 230,529
NET EARNINGS PER SHARE:
Basic $ 0.41 $ 0.36 $ 1.43 $ 1.41
Diluted $ 0.41 $ 0.36 $ 1.41 $ 1.38
 
(1)   Calculated as a percentage of net sales and operating revenues and sums may not equal totals due to rounding.
(2) As disclosed in our Annual Report on Form 10-K for the fiscal year ended February 29, 2012, fiscal 2012 reflects the revisions to correct our accounting for sale-leaseback transactions.
 

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 
  (Unaudited)     (Unaudited)
November 30 February 29 November 30
(In thousands except share data)   2012   2012   2011 (1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 445,110 $ 442,658 $ 383,411
Restricted cash from collections on auto loan receivables 204,360 204,314 174,392
Accounts receivable, net 62,660 86,434 54,522
Inventory 1,339,044 1,092,592 1,013,183
Deferred income taxes 9,315 9,938 13,085
  Other current assets     24,875     17,512     9,806
TOTAL CURRENT ASSETS 2,085,364 1,853,448 1,648,399
Auto loan receivables, net 5,552,035 4,959,847 4,807,804
Property and equipment, net 1,411,588 1,278,722 1,230,897
Deferred income taxes 147,571 133,134 120,268
  Other assets     101,125     106,392     100,413
  TOTAL ASSETS   $ 9,297,683   $ 8,331,543   $ 7,907,781
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 272,807 $ 324,827 $ 246,393
Accrued expenses and other current liabilities 116,629 128,973 125,683
Accrued income taxes 266 3,125 13,069
Short-term debt 706 943 759
Current portion of finance and capital lease obligations 15,885 14,108 13,615
  Current portion of non-recourse notes payable     169,399     174,337     147,183
TOTAL CURRENT LIABILITIES 575,692 646,313 546,702
Finance and capital lease obligations, excluding current portion 341,424 353,566 357,288
Non-recourse notes payable, excluding current portion 5,211,064 4,509,752 4,318,046
  Other liabilities     145,834     148,800     103,487
  TOTAL LIABILITIES     6,274,014     5,658,431     5,325,523
 
Commitments and contingent liabilities
 
SHAREHOLDERS’ EQUITY:
Common stock, $0.50 par value; 350,000,000 shares authorized;
228,216,842 and 227,118,666 shares issued and outstanding
as of November 30, 2012 and February 29, 2012, respectively 114,108 113,559 113,237
Capital in excess of par value 942,017 877,493 858,790
Accumulated other comprehensive loss (51,745) (62,459) (39,257)
  Retained earnings     2,019,289     1,744,519     1,649,488
  TOTAL SHAREHOLDERS’ EQUITY     3,023,669     2,673,112     2,582,258
  TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 9,297,683   $ 8,331,543   $ 7,907,781
 

(1) As disclosed in our Annual Report on Form 10-K for the fiscal year ended February 29, 2012, fiscal 2012 reflects the revisions to correct our accounting for sale-leaseback transactions.

 

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 
Nine Months Ended November 30
(In thousands)   2012   2011 (1)
OPERATING ACTIVITIES:
Net earnings $ 327,063 $ 318,764
Adjustments to reconcile net earnings to net cash
(used in) provided by operating activities:
Depreciation and amortization 70,721 60,696
Share-based compensation expense 46,597 37,148
Provision for loan losses 40,154 24,878
Loss on disposition of assets 1,554 1,331
Deferred income tax benefit (6,569) (5,014)
Net decrease (increase) in:
Accounts receivable, net 23,774 65,075
Inventory (246,452) 36,294
Other current assets (7,336) 24,038
Auto loan receivables, net (632,342) (512,107)
Other assets (506) (5,334)
Net decrease in:
Accounts payable, accrued expenses and other current
liabilities and accrued income taxes (102,666) (21,673)
Other liabilities     (13,220)     (17,763)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES     (499,228)     6,333
INVESTING ACTIVITIES:
Capital expenditures (184,942) (105,990)
Increase in restricted cash from collections on auto loan receivables (46) (13,340)
Increase in restricted cash in reserve accounts (6,912) (8,573)
Release of restricted cash from reserve accounts 15,980 12,088
Purchases of money market securities, net (2,088) (520)
Purchases of investments available-for-sale (1,525) (2,252)
Sales of investments available-for-sale     318     52
NET CASH USED IN INVESTING ACTIVITIES     (179,215)     (118,535)
FINANCING ACTIVITIES:
Decrease in short-term debt, net (237) (243)
Payments on finance and capital lease obligations (10,365) (9,331)
Issuances of non-recourse notes payable 4,010,000 3,633,000
Payments on non-recourse notes payable (3,313,626) (3,181,432)
Repurchase and retirement of common stock (51,091)
Equity issuances, net 29,486 5,039
Excess tax benefits from share-based payment arrangements     16,728     7,459
NET CASH PROVIDED BY FINANCING ACTIVITIES     680,895     454,492
Increase in cash and cash equivalents 2,452 342,290
Cash and cash equivalents at beginning of year     442,658     41,121
CASH AND CASH EQUIVALENTS AT END OF PERIOD   $ 445,110   $ 383,411
 

(1) As disclosed in our Annual Report on Form 10-K for the fiscal year ended February 29, 2012, fiscal 2012 reflects the revisions to correct our accounting for sale-leaseback transactions.



3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs