This Day On The Street
Continue to site
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

CarMax Reports Record Quarterly Results

CarMax, Inc. (NYSE:KMX) today reported record results for the first quarter ended May 31, 2014.

  • Net sales and operating revenues increased 13.3% to $3.75 billion.
  • Used unit sales in comparable stores increased 3.4%.
  • Total used unit sales rose 9.8%.
  • Total wholesale unit sales increased 9.9%.
  • CarMax Auto Finance (CAF) income increased 8.7% to $94.6 million.
  • Net earnings grew 15.7% to $169.7 million. Net earnings per diluted share rose 18.8% to $0.76.

“We had another great quarter, hitting an all-time record level of quarterly sales and earnings,” said Tom Folliard, president and chief executive officer. “The improvement was broad-based, with contributions from our retail and wholesale operations, as well as from CAF.”

First Quarter Business Performance Review

Sales . Total used vehicle unit sales grew 9.8% and comparable store used unit sales grew 3.4% versus the prior year’s first quarter. This growth was on top of increases of 22.1% in total used units and 16.7% in comparable store used units in last year’s first quarter. This year’s comparable store used unit sales growth was driven by improved customer traffic. The percentage of retail vehicles financed by third-party subprime providers (those who purchase financings at a discount), combined with those financed under the previously announced CAF loan origination test, declined from 21.3% in the first quarter of fiscal 2014 to 16.1% in this year’s first quarter.

Wholesale vehicle unit sales grew 9.9% versus the first quarter of fiscal 2014. Wholesale unit sales benefited from increased appraisal traffic and a stronger wholesale vehicle buy rate, as well as the addition of new stores.

Other sales and revenues increased 13.0% year-over-year. Extended protection plan revenues (which includes extended service plan (ESP) and guaranteed asset protection revenues) declined $0.9 million versus the prior year level reflecting an increase in the cancellation reserves for the underlying products and a modest reduction in the ESP penetration rate, partially offset by the growth in total retail sales. Net third-party finance fees improved $8.6 million versus last year’s first quarter primarily due to the reduction in the percentage of sales financed by third-party subprime providers.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs