CarMax, Inc. (NYSE:KMX) today reported results for the fourth quarter and fiscal year ended February 28, 2014.
- Net sales and operating revenues increased 9% to $3.08 billion in the fourth quarter. For the fiscal year, net sales and operating revenues increased 15% to $12.57 billion.
- Used unit sales in comparable stores increased 7% in the fourth quarter and 12% in the fiscal year.
- Total used unit sales rose 12% in the fourth quarter and 18% in the fiscal year.
- Our data indicates that in our markets, we increased our share of the 0-10 year old used car market by approximately 17% in fiscal 2014.
- Total wholesale unit sales increased 2% in the fourth quarter and 5% in the fiscal year.
- CarMax Auto Finance (CAF) income increased 6% to $80.8 million in the fourth quarter. For the fiscal year, CAF income rose 12% to $336.2 million.
- Net earnings declined 7% to $99.2 million in the fourth quarter. For the fiscal year, net earnings increased 13% to $492.6 million. Net earnings per diluted share fell 4% to $0.44 per share in the fourth quarter and increased 16% to $2.16 per share for the fiscal year.
- During the fourth quarter, we corrected our accounting related to cancellation reserves for extended service plan (ESP) and guaranteed asset protection (GAP) products. As a result, we increased the cancellation reserves, which reduced diluted net earnings per share by $0.08 in the fourth quarter of fiscal 2014. Of this amount, $0.01 per share related to activity in the fourth quarter of fiscal 2014, $0.02 per share to earlier quarters in fiscal 2014 and $0.05 per share to fiscal 2013 and fiscal 2012.
In addition to reporting results, CarMax announced that its Board of Directors has approved a $1 billion expansion of the company’s share repurchase program. This authorization expires December 31, 2015.