21/06/2024 - CarMax Inc.: CarMax Reports First Quarter Fiscal Year 2025 Results

[X]

Announces the expansion of its asset-backed securitization program to enable incremental growth in finance income

RICHMOND, Va.--(BUSINESS WIRE)-- CarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2024.

First Quarter Highlights:

  • Retail used unit sales decreased 3.1% and comparable store used unit sales decreased 3.8% from the prior year's first quarter; wholesale units declined 8.3% from the prior year's first quarter, impacted by lower year-over-year seasonal appreciation.
  • Delivered strong margins in retail, wholesale, and Extended Protection Plans (EPP). Gross profit per retail used unit of $2,347, in line with last year; gross profit per wholesale unit of $1,064 and EPP of $563 per retail unit, both first quarter records.
  • Bought 314,000 vehicles from consumers and dealers, down 8.6% versus last year's first quarter, impacted by lower year-over-year seasonal appreciation.
    • 279,000 vehicles were purchased from consumers, down 13.7% from last year's first quarter.
    • 35,000 vehicles were purchased through dealers, up 70.8% from last year's first quarter.
  • SG&A of $638.6 million increased 14.1% from last year's first quarter. Continued cost management efforts drove a decrease in SG&A when excluding the impact of the prior year's $59.3 million legal settlement and previously communicated year-over-year dynamics of approximately $22 million.
  • CarMax Auto Finance (CAF) income of $147.0 million, grew 7.0% from the prior year first quarter due to growth in CAF's average managed receivables and net interest margin percentage.
    • In June 2024, CAF launched its inaugural non-prime public asset-backed securitization deal.
  • Net earnings per diluted share of $0.97 versus $1.44 a year ago; last year's first quarter included a $0.28 benefit in connection with a legal settlement.
  • Accelerated the pace of share repurchases with over $100 million in shares of common stock repurchased during the first quarter of fiscal year 2025.

CEO Commentary:

"I am encouraged by the trends we saw in the first quarter including continued year-over-year price declines, improvements in vehicle value stability, and ongoing growth in upper funnel demand. We delivered strong retail, wholesale, and EPP gross profit per unit, sourced a record 35,000 vehicles from dealers, continued to actively manage SG&A, and repurchased over $100 million in shares of common stock. As CAF advances to a full-spectrum credit model, we launched our first non-prime asset-backed securitization deal early in the second quarter as part of the expansion of our securitization program that will enable incremental growth in finance income," said Bill Nash, president and chief executive officer. "I am proud of the durable actions we have taken to support our future growth and to further differentiate the value and experience we offer to consumers."

First Quarter Business Performance Review:

Sales. Combined retail and wholesale used vehicle unit sales were 358,817, a decline of 5.3% from the prior year's first quarter.

Total retail used vehicle unit sales decreased 3.1% to 211,132 compared to the prior year's first quarter. Comparable store used unit sales decreased 3.8% from the prior year's first quarter. Though average retail selling price declined year-over-year, we believe vehicle affordability challenges continued to impact our first quarter unit sales performance, with ongoing headwinds due to widespread inflationary pressures, higher interest rates, and tightened lending standards. Total retail used vehicle revenues decreased 5.4% compared with the prior year's first quarter, driven by the decrease in retail used units sold, as well as the decrease in average retail selling price, which declined approximately $700 per unit or 2.7%.

Total wholesale vehicle unit sales declined 8.3% to 147,685 versus the prior year's first quarter. Total wholesale revenues decreased 17.0% compared with the prior year's first quarter due to a decrease in the average wholesale selling price of approximately $900 per unit or 10.3%, as well as the decrease in wholesale units sold.

We bought 314,000 vehicles from consumers and dealers, down 8.6% compared to last year's first quarter, which was impacted by lower seasonal appreciation year-over-year. Of these vehicles, 279,000 were bought from consumers and 35,000 were bought through dealers, a decrease of 13.7% and an increase of 70.8%, respectively, from last year's first quarter.

Other sales and revenues increased by 4.8% compared with the first quarter of fiscal 2024, representing an increase of $8.3 million, primarily reflecting an increase in EPP revenues resulting from stronger margins.

Online retail sales(1) accounted for 14% of retail unit sales, in line with the first quarter of last year. Revenue from online transactions(2), including retail and wholesale unit sales, was $2.1 billion, or approximately 30% of net revenues, consistent with last year's first quarter.

Gross Profit. Total gross profit was $791.9 million, down 3.1% versus last year's first quarter. Retail used vehicle gross profit decreased 3.7% and retail gross profit per used unit was $2,347, in line with last year's first quarter.

Wholesale vehicle gross profit decreased 6.4% versus the prior year's first quarter, reflecting lower wholesale unit volume. Gross profit per unit increased $22 from the prior year's first quarter to $1,064.

Other gross profit increased 3.2% primarily reflecting an increase in EPP revenues resulting from stronger margins.

SG&A. Compared with the first quarter of fiscal 2024, SG&A expenses increased 14.1% or $78.7 million to $638.6 million. Excluding the prior year's $59.3 million legal settlement, SG&A expenses increased 3.1% or $19.5 million. SG&A as a percent of gross profit increased to 80.6% in the first quarter compared to 68.5% in the prior year's first quarter. Excluding the legal settlement, SG&A as a percent of gross profit was 75.7% in the prior year's first quarter.

Continued cost management efforts in our stores and CECs as well as in non-CAF uncollectable receivables drove an SG&A decrease year-over-year when excluding the prior year's legal settlement and the approximately $22 million combined impact from the retirement eligibility of certain senior executives on this year's share-based compensation expense and lapping over the favorable non-CAF uncollectable receivables reserve adjustments in the prior year.

CarMax Auto Finance.(3) CAF income increased 7.0% to $147.0 million driven by growth in CAF's average managed receivables and net interest margin percentage. This quarter's provision was $81.2 million compared to $80.9 million in the prior year's first quarter.

As of May 31, 2024, the allowance for loan losses was 2.79% of ending managed receivables, consistent with 2.78% as of February 29, 2024, as expanded Tier 2 originations within CAF's portfolio offset the effect of the previously disclosed tightening of CAF's underwriting standards.

CAF's total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.2% of average managed receivables, up from last year's fourth quarter and the prior year's first quarter. After the effect of 3-day payoffs, CAF financed 43.3% of units sold in the current quarter, up from 42.7% in the prior year's first quarter. CAF's weighted average contract rate was 11.4% in the quarter, up from 11.1% in the first quarter last year.

Expansion of Asset-Backed Securitization Program. Going forward, we plan to expand our current asset-backed securitization program from a single issuance to one that more broadly incorporates CAF's receivables across distinct prime and non-prime segments. In June 2024, CAF launched its first non-prime securitization deal.

This strategy will enable us to efficiently fund incremental originations and support future CAF growth across the credit spectrum by creating additional funding capacity, driving additional finance income for the business over time. Our unique finance platform with a full-spectrum in-house lending operation coupled with a robust network of partner lenders will strengthen our competitive advantage.

Share Repurchase Activity. During the first quarter of fiscal year 2025, we repurchased 1.4 million shares of common stock for $104.0 million. As of May 31, 2024, we had $2.26 billion remaining available for repurchase under the outstanding authorization.

Location Openings. During the first quarter of fiscal 2025, we opened our second stand-alone reconditioning center in Richland, Mississippi. We are utilizing our stand-alone reconditioning and auction locations to balance capacity and drive efficiencies across the network.

(1)

An online retail unit sale is defined as a sale where the customer completes all four of these major transactional activities remotely: reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating a remote sales order.

(2)

Revenue from online transactions is defined as revenue from retail sales that qualify for an online retail sale, as well as any EPP and third-party finance contribution, wholesale sales where the winning bid was an online bid, and all revenue earned by Edmunds.

(3)

Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions.

Supplemental Financial Information

Amounts and percentage calculations may not total due to rounding.

Sales Components

Three Months Ended May 31

(In millions)

2024

2023

Change

Used vehicle sales

$

5,677.5

$

6,001.5

(5.4

)%

Wholesale vehicle sales

1,256.4

1,514.4

(17.0

)%

Other sales and revenues:

Extended protection plan revenues

118.8

111.2

6.9

%

Third-party finance (fees)/income, net

(1.7

)

0.3

(613.8

)%

Advertising & subscription revenues (1)

34.7

31.4

10.5

%

Other

27.7

28.3

(2.5

)%

Total other sales and revenues

179.5

171.2

4.8

%

Total net sales and operating revenues

$

7,113.4

$

7,687.1

(7.5

)%

(1) Excludes intercompany revenues that have been eliminated in consolidation.

Unit Sales

Three Months Ended May 31

2024

2023

Change

Used vehicles

211,132

217,924

(3.1

)%

Wholesale vehicles

147,685

161,048

(8.3

)%

Average Selling Prices

Three Months Ended May 31

2024

2023

Change

Used vehicles

$

26,526

$

27,258

(2.7

)%

Wholesale vehicles

$

8,094

$

9,024

(10.3

)%

Vehicle Sales Changes

Three Months Ended May 31

2024

2023

Used vehicle units

(3.1

)%

(9.6

)%

Used vehicle revenues

(5.4

)%

(14.4

)%

Wholesale vehicle units

(8.3

)%

(13.6

)%

Wholesale vehicle revenues

(17.0

)%

(28.5

)%

Comparable Store Used Vehicle Sales Changes(1)

Three Months Ended May 31

2024

2023

Used vehicle units

(3.8

)%

(11.4

)%

Used vehicle revenues

(6.1

)%

(16.2

)%

(1)

Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods.

Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs)(1)

Three Months Ended May 31

2024

2023

CAF (2)

45.3

%

45.5

%

Tier 2(3)

18.7

%

20.4

%

Tier 3(4)

7.5

%

6.7

%

Other(5)

28.5

%

27.4

%

Total

100.0

%

100.0

%

(1)

Calculated as used vehicle units financed for respective channel as a percentage of total used units sold.

(2)

Includes CAF's Tier 2 and Tier 3 loan originations, which represent approximately 3% of total used units sold.

(3)

Third-party finance providers who generally pay us a fee or to whom no fee is paid.

(4)

Third-party finance providers to whom we pay a fee.

(5)

Represents customers arranging their own financing and customers that do not require financing.

Selected Operating Ratios

Three Months Ended May 31

(In millions)

2024

% (1)

2023

% (1)

Net sales and operating revenues

$

7,113.4

100.0

$

7,687.1

100.0

Gross profit

$

791.9

11.1

$

817.4

10.6

CarMax Auto Finance income

$

147.0

2.1

$

137.4

1.8

Selling, general, and administrative expenses

$

638.6

9.0

$

559.8

7.3

Interest expense

$

31.4

0.4

$

30.5

0.4

Earnings before income taxes

$

206.6

2.9

$

307.2

4.0

Net earnings

$

152.4

2.1

$

228.3

3.0

(1)

Calculated as a percentage of net sales and operating revenues.

Gross Profit(1)

Three Months Ended May 31

(In millions)

2024

2023

Change

Used vehicle gross profit

$

495.5

$

514.6

(3.7

)%

Wholesale vehicle gross profit

157.1

167.8

(6.4

)%

Other gross profit

139.3

135.0

3.2

%

Total

$

791.9

$

817.4

(3.1

)%

(1)

Amounts are net of intercompany eliminations.

Gross Profit per Unit(1)

Three Months Ended May 31

2024

2023

$ per unit(2)

%(3)

$ per unit(2)

%(3)

Used vehicle gross profit per unit

$

2,347

8.7

$

2,361

8.6

Wholesale vehicle gross profit per unit

$

1,064

12.5

$

1,042

11.1

Other gross profit per unit

$

660

77.6

$

619

78.8

(1)

Amounts are net of intercompany eliminations. Those eliminations had the effect of increasing used vehicle gross profit per unit and wholesale vehicle gross profit per unit and decreasing other gross profit per unit by immaterial amounts.

(2)

Calculated as category gross profit divided by its respective units sold, except the other category, which is divided by total used units sold.

(3)

Calculated as a percentage of its respective sales or revenue.

SG&A Expenses(1)

Three Months Ended May 31

(In millions)

2024

2023

Change

Compensation and benefits:

Compensation and benefits, excluding share-based compensation expense

$

328.1

$

330.7

(0.8

)%

Share-based compensation expense

47.1

35.3

33.4

%

Total compensation and benefits(2)

$

375.2

$

366.0

2.5

%

Occupancy costs

70.6

66.2

6.7

%

Advertising expense

71.7

71.9

(0.2

)%

Other overhead costs(3)

121.1

55.7

117.0

%

Total SG&A expenses

$

638.6

$

559.8

14.1

%

SG&A as a % of gross profit

80.6

%

68.5

%

12.1

%

(1)

Amounts are net of intercompany eliminations.

(2)

Excludes compensation and benefits related to reconditioning and vehicle repair service, which are included in cost of sales.

(3)

Includes IT expenses, non-CAF bad debt, insurance, travel, charitable contributions, preopening and relocation costs, and other administrative expenses.

Components of CAF Income and Other CAF Information

Three Months Ended May 31

(In millions)

2024

% (1)

2023

%(1)

Interest margin:

Interest and fee income

$

452.5

10.3

$

400.5

9.4

Interest expense

(182.3

)

(4.2

)

(142.6

)

(3.4

)

Total interest margin

270.2

6.2

257.9

6.1

Provision for loan losses

(81.2

)

(1.9

)

(80.9

)

(1.9

)

Total interest margin after provision for loan losses

189.0

4.3

177.0

4.2

Total direct expenses

(42.0

)

(1.0

)

(39.6

)

(0.9

)

CarMax Auto Finance income

$

147.0

3.3

$

137.4

3.2

Total average managed receivables

$

17,551.2

$

17,003.4

Net loans originated

$

2,265.7

$

2,340.4

Net penetration rate

43.3

%

42.7

%

Weighted average contract rate

11.4

%

11.1

%

Ending allowance for loan losses

$

493.1

$

535.4

Warehouse facility information:

Ending funded receivables

$

4,176.6

$

4,241.6

Ending unused capacity

$

1,923.4

$

1,358.4

(1)

Annualized percentage of total average managed receivables.

Earnings Highlights

Three Months Ended May 31

(In millions except per share data)

2024

2023

Change

Net earnings

$

152.4

$

228.3

(33.2

)%

Diluted weighted average shares outstanding

157.7

158.6

(0.5

)%

Net earnings per diluted share

$

0.97

$

1.44

(32.6

)%

Conference Call Information

We will host a conference call for investors at 9:00 a.m. ET today, June 21, 2024. Domestic investors may access the call at 1-800-225-9448 (international callers dial 1-203-518-9708). The conference I.D. for both domestic and international callers is 3171396. A live webcast of the call will be available on our investor information home page at investors.carmax.com.

A replay of the webcast will be available on the company's website at investors.carmax.com through September 25, 2024, or via telephone (for approximately one week) by dialing 1-800-839-5204 (or 1-402-220-2697 for international access) and entering the conference ID 3171396.

Second Quarter Fiscal 2025 Earnings Release Date

We currently plan to release results for the second quarter ending August 31, 2024, on Thursday, September 26, 2024, before the opening of trading on the New York Stock Exchange. We plan to 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 investors.carmax.com in early September 2024.

About CarMax

CarMax, the nation's largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year ended February 29, 2024, CarMax sold approximately 770,000 used vehicles and 550,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than $8 billion in receivables during fiscal 2024, adding to its more than $17 billion portfolio. CarMax has 245 store locations, nearly 30,000 associates, and is proud to have been recognized for 20 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to making a positive impact on people, communities and the environment. Learn more in the 2024 Responsibility Report. For more information, visit www.carmax.com.

Forward-Looking Statements

We caution readers that the statements contained in this release that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, inventory, market share, financial targets, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as "anticipate," "believe," "could," "enable," "estimate," "expect," "intend," "may," "outlook," "plan," "positioned," "predict," "should," "target," "will" and other similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management's current knowledge, expectations and assumptions 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 the competitive landscape and/or our failure to successfully adjust to such changes.
  • Changes in general or regional U.S. economic conditions, including inflationary pressures, climbing interest rates and the potential impact of international events.
  • Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
  • Events that damage our reputation or harm the perception of the quality of our brand.
  • Significant changes in prices of new and used vehicles.
  • A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
  • Our inability to realize the benefits associated with our omni-channel platform.
  • Factors related to geographic and sales growth, including the inability to effectively manage our growth.
  • Our inability to recruit, develop and retain associates and maintain positive associate relations.
  • The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
  • Changes in economic conditions or other factors that result in greater credit losses for CAF's portfolio of auto loans receivable than anticipated.
  • The failure or inability to realize the benefits associated with our strategic investments.
  • Changes in consumer credit availability provided by our third-party finance providers.
  • Changes in the availability of extended protection plan products from third-party providers.
  • The performance of the third-party vendors we rely on for key components of our business.
  • Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
  • The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
  • The failure or inability to adequately protect our intellectual property.
  • The occurrence of severe weather events.
  • The failure or inability to meet our environmental goals or satisfy related disclosure requirements.
  • Factors related to the geographic concentration of our stores.
  • Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
  • The failure of or inability to sufficiently enhance key information systems.
  • Factors related to the regulatory and legislative environment in which we operate.
  • The effect of various litigation matters.
  • The volatility in the market price for our common stock.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2024, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(UNAUDITED)

Three Months Ended May 31

(In thousands except per share data)

2024

%(1)

2023

%(1)

SALES AND OPERATING REVENUES:

Used vehicle sales

$

5,677,476

79.8

$

6,001,471

78.1

Wholesale vehicle sales

1,256,439

17.7

1,514,363

19.7

Other sales and revenues

179,482

2.5

171,229

2.2

NET SALES AND OPERATING REVENUES

7,113,397

100.0

7,687,063

100.0

COST OF SALES:

Used vehicle cost of sales

5,181,979

72.8

5,486,846

71.4

Wholesale vehicle cost of sales

1,099,311

15.5

1,346,538

17.5

Other cost of sales

40,212

0.6

36,289

0.5

TOTAL COST OF SALES

6,321,502

88.9

6,869,673

89.4

GROSS PROFIT

791,895

11.1

817,390

10.6

CARMAX AUTO FINANCE INCOME

146,970

2.1

137,358

1.8

Selling, general, and administrative expenses

638,578

9.0

559,837

7.3

Depreciation and amortization

61,869

0.9

58,419

0.8

Interest expense

31,362

0.4

30,466

0.4

Other expense (income)

416

-

(1,214

)

-

Earnings before income taxes

206,640

2.9

307,240

4.0

Income tax provision

54,200

0.8

78,942

1.0

NET EARNINGS

$

152,440

2.1

$

228,298

3.0

WEIGHTED AVERAGE COMMON SHARES:

Basic

157,161

158,116

Diluted

157,706

158,561

NET EARNINGS PER SHARE:

Basic

$

0.97

$

1.44

Diluted

$

0.97

$

1.44

(1)

Percents are calculated as a percentage of net sales and operating revenues and may not total due to rounding.

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

As of

May 31

February 29

May 31

(In thousands except share data)

2024

2024

2023

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

218,931

$

574,142

$

264,247

Restricted cash from collections on auto loans receivable

536,407

506,648

506,465

Accounts receivable, net

212,370

221,153

321,994

Inventory

3,772,885

3,678,070

4,081,220

Other current assets

229,714

246,581

189,742

TOTAL CURRENT ASSETS

4,970,307

5,226,594

5,363,668

Auto loans receivable, net

17,268,321

17,011,844

16,744,865

Property and equipment, net

3,734,736

3,665,530

3,499,384

Deferred income taxes

100,104

98,790

99,770

Operating lease assets

509,043

520,717

541,908

Goodwill

141,258

141,258

141,258

Other assets

518,325

532,064

571,503

TOTAL ASSETS

$

27,242,094

$

27,196,797

$

26,962,356

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

911,348

$

933,708

$

967,420

Accrued expenses and other current liabilities

456,277

523,971

528,596

Accrued income taxes

24,792

-

49,191

Current portion of operating lease liabilities

57,534

57,161

55,126

Current portion of long-term debt

21,550

313,282

12,305

Current portion of non-recourse notes payable

514,394

484,167

501,333

TOTAL CURRENT LIABILITIES

1,985,895

2,312,289

2,113,971

Long-term debt, excluding current portion

1,591,366

1,602,355

1,906,496

Non-recourse notes payable, excluding current portion

16,626,011

16,357,301

16,252,958

Operating lease liabilities, excluding current portion

484,632

496,210

519,184

Other liabilities

387,320

354,902

346,579

TOTAL LIABILITIES

21,075,224

21,123,057

21,139,188

Commitments and contingent liabilities

SHAREHOLDERS' EQUITY:

Common stock, $0.50 par value; 350,000,000 shares authorized; 156,352,956 and 157,611,939 shares issued and outstanding as of May 31, 2024 and February 29, 2024, respectively

78,176

78,806

79,105

Capital in excess of par value

1,834,218

1,808,746

1,731,341

Accumulated other comprehensive income

61,678

59,279

61,330

Retained earnings

4,192,798

4,126,909

3,951,392

TOTAL SHAREHOLDERS' EQUITY

6,166,870

6,073,740

5,823,168

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

27,242,094

$

27,196,797

$

26,962,356

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended May 31

(In thousands)

2024

2023

OPERATING ACTIVITIES:

Net earnings

$

152,440

$

228,298

Adjustments to reconcile net earnings to net cash used in operating activities:

Depreciation and amortization

69,244

62,998

Share-based compensation expense

48,098

36,384

Provision for loan losses

81,226

80,890

Provision for cancellation reserves

24,343

24,070

Deferred income tax benefit

(2,036

)

(7,127

)

Other

2,545

2,976

Net decrease (increase) in:

Accounts receivable, net

8,783

(22,439

)

Inventory

(94,815

)

(355,078

)

Other current assets

32,881

30,923

Auto loans receivable, net

(337,703

)

(483,964

)

Other assets

(3,797

)

634

Net (decrease) increase in:

Accounts payable, accrued expenses and other

current liabilities and accrued income taxes

(75,206

)

239,276

Other liabilities

(23,692

)

(23,126

)

NET CASH USED IN OPERATING ACTIVITIES

(117,689

)

(185,285

)

INVESTING ACTIVITIES:

Capital expenditures

(103,914

)

(136,719

)

Proceeds from disposal of property and equipment

1

1,171

Purchases of investments

(2,093

)

(1,228

)

Sales and returns of investments

136

17

NET CASH USED IN INVESTING ACTIVITIES

(105,870

)

(136,759

)

FINANCING ACTIVITIES:

Proceeds from issuances of long-term debt

-

98,600

Payments on long-term debt

(303,080

)

(201,377

)

Cash paid for debt issuance costs

(5,668

)

(3,608

)

Payments on finance lease obligations

(4,548

)

(3,785

)

Issuances of non-recourse notes payable

3,676,000

3,125,929

Payments on non-recourse notes payable

(3,376,447

)

(2,706,222

)

Repurchase and retirement of common stock

(106,850

)

(3,931

)

Equity issuances

8,209

989

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

(112,384

)

306,595

Decrease in cash, cash equivalents, and restricted cash

(335,943

)

(15,449

)

Cash, cash equivalents, and restricted cash at beginning of year

1,250,410

951,004

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD

$

914,467

$

935,555

Source: CarMax, Inc.

Disclaimer

CarMax Inc. published this content on 21 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2024 10:56:34 UTC.

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