CarMax Reports First Quarter Results

CarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2012.
  • Net sales and operating revenues increased 4% to $2.77 billion from $2.68 billion in the first quarter of last year.
  • Used unit sales in comparable stores were flat for the quarter.
  • Total used unit sales rose 3% in the first quarter.
  • Total wholesale unit sales declined 2% in the first quarter.
  • CarMax Auto Finance (CAF) income increased 8% to $75.2 million from $69.7 million in the prior year quarter.
  • Net earnings decreased 4% to $120.7 million, or $0.52 per diluted share, compared with $125.5 million, or $0.54 per diluted share, in the first quarter of fiscal 2012.
    • Net earnings were increased by $0.01 per share in the current year period and $0.03 per share in the prior year period as a result of favorable CAF loss experience.

First Quarter Business Performance Review

“Although comparable store used unit sales were flat, solid execution resulted in strong used and wholesale gross profit per unit and higher CAF income,” said Tom Folliard, president and chief executive officer. Total customer traffic and conversion at comparable stores were both similar to the prior year’s quarter.

Wholesale unit sales declined 2% in the first quarter of fiscal 2013, following increases of 32% and 52% in the first quarter of the two previous fiscal years. The decline reflected the challenging year-over-year comparison, as well as a shift in the calendar that resulted in one less Tuesday auction date. Absent the calendar shift, we estimate wholesale unit sales would have been similar to last year’s first quarter. Appraisal traffic remained higher than in the prior year; however, our appraisal buy rate was slightly below the prior year level.

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