RICHMOND, Va.--(BUSINESS WIRE)--CarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2022.
CEO Commentary:
“While the used vehicle market environment was challenging in the first quarter, we continued to make progress on the key strategic priorities that enable CarMax to grow profitable market share, now and into the future,” said Bill Nash, president and chief executive officer. “For the past several years, our priorities and investments have focused on building a leading e-commerce platform that integrates buying and selling cars with our best-in-class store experience. All of our retail customers are now able to transact online on their own. We will now turn our efforts to further improving the experience for customers and associates by focusing on the seamlessness of our online and in-store offerings.”
First Quarter Business Performance Review:
Sales. Combined retail and wholesale used vehicle unit sales were 427,257, a decrease of 5.5% from the prior year’s first quarter. Online retail sales(1) accounted for 11% of retail unit sales, compared with 8% in the first quarter of last year. Revenue from online transactions(2), including retail and wholesale unit sales, was $2.9 billion, or approximately 31% of net revenues, compared with 24% of net revenues in last year’s first quarter.
Total retail used vehicle unit sales declined 11.0% to 240,950 and comparable store used unit sales declined 12.7% from the prior year’s first quarter. We believe a number of macroeconomic factors weighed on our first quarter unit sales performance, including the lapping of stimulus benefits paid in the prior year period; widespread inflationary pressures, including challenges to vehicle affordability; and waning consumer confidence. Total retail used vehicle revenues increased 13.9% compared with the prior year’s first quarter due to an increase in the average retail selling price, which rose approximately $6,300 per unit, or 28.0%, partially offset by the decrease in retail used units sold. The increase in average retail selling price largely reflected higher vehicle acquisition costs resulting from strong wholesale industry valuations.
Total wholesale vehicle unit sales increased 2.7% to 186,307 versus the prior year’s first quarter as we rolled over last year’s nationwide launch of our instant offer appraisal product on carmax.com. Wholesale volume was negatively impacted by a calendar shift, which reduced auction volume when compared to the prior year as well as our decision to shift some units from wholesale to retail to meet consumer demand for lower priced vehicles. Total wholesale revenues increased 54.0% compared with the prior year’s first quarter due to the average wholesale selling price rising by more than $3,700 per unit, or 51.3%, together with the increase in wholesale units sold.
Other sales and revenues rose 8.9% compared with the first quarter of fiscal 2022, representing an increase of $14.7 million. The increase was largely driven by the consolidation of Edmunds as of June 1, 2021, as well as improvements in net third-party finance income resulting from lower Tier 3 originations. The increase was partially offset by a $17.7 million decline in extended protection plan (EPP) revenues largely reflecting the decline in retail unit sales, as well as the divestiture of our remaining new car franchise in fiscal 2022.
Gross Profit. Total gross profit was $875.4 million, down 5.3% versus last year’s first quarter. Retail used vehicle gross profit declined 5.6%, reflecting the combined effects of the decline in retail unit sales and an improvement in the related gross profit per unit, which rose $134 to $2,339.
Wholesale vehicle gross profit increased 3.1% versus the prior year’s quarter, reflecting the continued growth in wholesale unit volume and a slight increase in the related gross profit per unit, which rose $4 to $1,029.
Other gross profit declined 15.1% largely reflecting a reduction in service department margins and EPP revenues, partially offset by the consolidation of Edmunds and the improvement in net third-party finance income. Service margins declined primarily due to the deleverage resulting from the decline in retail unit sales and also due to inflationary pressures.
SG&A. Compared with the first quarter of fiscal 2022, SG&A expenses increased 18.5% to $656.7 million. Contributing factors included the effect of increases in staffing and wage pressures over the past year, investments to advance our technology platforms and strategic initiatives as well as growth related costs, increases in advertising expenses and the consolidation of Edmunds. Partially offsetting these items was a reduction in share-based compensation, which largely reflected changes in the company’s share price. SG&A as a percent of gross profit was 75.0%, versus 59.9% in the prior year’s first quarter driven by the expenses noted above, combined with the decrease in sales volume.
CarMax Auto Finance.(3) CAF income decreased 15.4% to $204.5 million, driven by an $82.2 million year- over-year swing in the provision for loan losses. This year’s provision was more normalized to the pre-pandemic environment at $57.8 million compared to $24.4 million of income in the prior year’s first quarter due to favorable loan loss performance. This provision impact outweighed the effects of the robust growth in CAF’s net interest margin and average managed receivables.
As of May 31, 2022, the allowance for loan losses was 2.85% of ending managed receivables, up from 2.77% as of February 28, 2022. The increase in the allowance percentage primarily reflected the effect of the previously disclosed expansion of Tier 2 and Tier 3 originations within CAF’s portfolio.
CAF’s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, improved to 7.5% of average managed receivables from 6.9% in the prior year’s first quarter, due to lower funding costs with additional support from our hedging strategy. After the effect of 3-day payoffs, CAF financed 39.3% of units sold in the current quarter, compared with 43.7% in the prior year’s first quarter, largely reflecting an increase in the mix of customers utilizing outside financing.
Share Repurchase Activity. During the first quarter of fiscal 2023, we repurchased 1.6 million shares of common stock for $157.6 million pursuant to our share repurchase program. As of May 31, 2022, we had $2.62 billion remaining available for repurchase under the outstanding authorization.
Store Openings. During the first quarter of fiscal 2023, we opened one new retail location in Edison, New Jersey, our first retail store in the New York metro market. In fiscal 2023, we plan to open a total of ten new locations.
(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) |
|
2022 |
|
|
2021 |
|
|
Change |
|
Used vehicle sales |
$ |
7,014.5 |
|
$ |
6,157.3 |
|
|
13.9 |
% |
Wholesale vehicle sales |
|
2,116.5 |
|
|
1,374.4 |
|
|
54.0 |
% |
Other sales and revenues: |
|
|
|
|
|
||||
Extended protection plan revenues |
|
116.5 |
|
|
134.2 |
|
|
(13.2 |
)% |
Third-party finance income/(fees), net |
|
3.4 |
|
|
(4.6 |
) |
|
173.9 |
% |
Advertising & subscription revenues (1) |
|
34.4 |
|
|
— |
|
|
100.0 |
% |
Other |
|
26.3 |
|
|
36.3 |
|
|
(27.3 |
)% |
Total other sales and revenues |
|
180.6 |
|
|
165.9 |
|
|
8.9 |
% |
Total net sales and operating revenues |
$ |
9,311.6 |
|
$ |
7,697.6 |
|
|
21.0 |
% |
(1) Excludes intersegment revenues that have been eliminated in consolidation. |
Unit Sales |
||||||
|
Three Months Ended May 31 |
|||||
|
2022 |
|
2021 |
|
Change |
|
Used vehicles |
240,950 |
|
270,799 |
|
(11.0 |
)% |
Wholesale vehicles |
186,307 |
|
181,389 |
|
2.7 |
% |
Average Selling Prices |
||||||||
|
Three Months Ended May 31 |
|||||||
|
|
2022 |
|
|
2021 |
|
Change |
|
Used vehicles |
$ |
28,844 |
|
$ |
22,533 |
|
28.0 |
% |
Wholesale vehicles |
$ |
10,996 |
|
$ |
7,266 |
|
51.3 |
% |
Vehicle Sales Changes |
||||
|
Three Months Ended May 31 |
|||
|
2022 |
2021 |
||
Used vehicle units |
(11.0 |
)% |
100.6 |
% |
Used vehicle revenues |
13.9 |
% |
121.0 |
% |
|
|
|
||
Wholesale vehicle units |
2.7 |
% |
186.6 |
% |
Wholesale vehicle revenues |
54.0 |
% |
300.9 |
% |
Comparable Store Used Vehicle Sales Changes (1) |
||||
|
Three Months Ended May 31 |
|||
|
2022 |
2021 |
||
Used vehicle units |
(12.7 |
)% |
99.1 |
% |
Used vehicle revenues |
11.6 |
% |
120.6 |
% |
(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 |
||||
|
2022 |
|
2021 |
||
CAF (2) |
43.3 |
% |
|
46.7 |
% |
Tier 2 (3) |
25.2 |
% |
|
22.8 |
% |
Tier 3 (4) |
7.1 |
% |
|
10.0 |
% |
Other (5) |
24.4 |
% |
|
20.5 |
% |
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 1% 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) |
|
2022 |
% (1) |
|
|
2021 |
% (1) |
|||
Net sales and operating revenues |
$ |
9,311.6 |
100.0 |
|
$ |
7,697.6 |
100.0 |
|||
Gross profit |
$ |
875.4 |
9.4 |
|
$ |
924.5 |
12.0 |
|||
CarMax Auto Finance income |
$ |
204.5 |
2.2 |
|
$ |
241.7 |
3.1 |
|||
Selling, general, and administrative expenses |
$ |
656.7 |
7.1 |
|
$ |
554.1 |
7.2 |
|||
Interest expense |
$ |
28.8 |
0.3 |
|
$ |
20.5 |
0.3 |
|||
Earnings before income taxes |
$ |
336.6 |
3.6 |
|
$ |
567.3 |
7.4 |
|||
Net earnings |
$ |
252.3 |
2.7 |
|
$ |
436.8 |
5.7 |
|||
(1) Calculated as a percentage of net sales and operating revenues. |
Gross Profit (1) |
||||||||
|
Three Months Ended May 31 |
|||||||
(In millions) |
|
2022 |
|
|
2021 |
|
Change |
|
Used vehicle gross profit |
$ |
563.5 |
|
$ |
597.0 |
|
(5.6 |
)% |
Wholesale vehicle gross profit |
|
191.7 |
|
|
185.8 |
|
3.1 |
% |
Other gross profit |
|
120.2 |
|
|
141.7 |
|
(15.1 |
)% |
Total |
$ |
875.4 |
|
$ |
924.5 |
|
(5.3 |
)% |
(1) Amounts are net of intercompany eliminations. |
Gross Profit per Unit (1) |
||||||||||
|
Three Months Ended May 31 |
|||||||||
|
2022 |
2021 |
||||||||
|
$ per unit(2) |
%(3) |
$ per unit(2) |
%(3) |
||||||
Used vehicle gross profit |
$ |
2,339 |
8.0 |
$ |
2,205 |
9.7 |
||||
Wholesale vehicle gross profit |
$ |
1,029 |
9.1 |
$ |
1,025 |
13.5 |
||||
Other gross profit |
$ |
499 |
66.6 |
$ |
523 |
85.4 |
||||
(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) |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
Compensation and benefits: |
|
|
|
|
|
|||||
Compensation and benefits, excluding share-based compensation expense |
$ |
345.3 |
|
|
$ |
284.2 |
|
|
21.5 |
% |
Share-based compensation expense |
|
22.2 |
|
|
|
38.4 |
|
|
(42.1 |
)% |
Total compensation and benefits (2) |
$ |
367.5 |
|
|
$ |
322.6 |
|
|
13.9 |
% |
Occupancy costs |
|
65.8 |
|
|
|
50.6 |
|
|
30.2 |
% |
Advertising expense |
|
88.9 |
|
|
|
72.5 |
|
|
22.7 |
% |
Other overhead costs (3) |
|
134.5 |
|
|
|
108.4 |
|
|
24.0 |
% |
Total SG&A expenses |
$ |
656.7 |
|
|
$ |
554.1 |
|
|
18.5 |
% |
SG&A as % of gross profit |
|
75.0 |
% |
|
|
59.9 |
% |
|
15.1 |
% |
(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, preopening and relocation costs, charitable contributions, travel and other administrative expenses. |
Components of CAF Income and Other CAF Information |
||||||||||||||
|
Three Months Ended May 31 |
|||||||||||||
(In millions) |
|
2022 |
|
% (1) |
|
2021 |
|
% (1) |
||||||
Interest margin: |
|
|
|
|
||||||||||
Interest and fee income |
$ |
346.7 |
|
8.8 |
|
$ |
310.3 |
|
8.8 |
|
||||
Interest expense |
|
(48.8 |
) |
(1.2 |
) |
|
(65.8 |
) |
(1.9 |
) |
||||
Total interest margin |
|
297.9 |
|
7.5 |
|
|
244.5 |
|
6.9 |
|
||||
Provision for loan losses |
|
(57.8 |
) |
(1.5 |
) |
|
24.4 |
|
0.7 |
|
||||
Total interest margin after provision for loan losses |
|
240.1 |
|
6.1 |
|
|
268.9 |
|
7.6 |
|
||||
Total direct expenses |
|
(35.6 |
) |
(0.9 |
) |
|
(27.2 |
) |
(0.8 |
) |
||||
CarMax Auto Finance income |
$ |
204.5 |
|
5.2 |
|
$ |
241.7 |
|
6.8 |
|
||||
|
|
|
|
|
||||||||||
Total average managed receivables |
$ |
15,817.0 |
|
|
$ |
14,148.7 |
|
|
||||||
Net loans originated |
$ |
2,446.8 |
|
|
$ |
2,483.4 |
|
|
||||||
Net penetration rate |
|
39.3 |
% |
|
|
43.7 |
% |
|
||||||
Weighted average contract rate |
|
9.0 |
% |
|
|
9.0 |
% |
|
||||||
|
|
|
|
|
||||||||||
Ending allowance for loan losses |
$ |
458.2 |
|
|
$ |
379.5 |
|
|
||||||
|
|
|
|
|
||||||||||
Warehouse facility information: |
|
|
|
|
||||||||||
Ending funded receivables |
$ |
3,629.9 |
|
|
$ |
2,856.9 |
|
|
||||||
Ending unused capacity |
$ |
1,770.1 |
|
|
$ |
1,068.1 |
|
|
||||||
|
|
|
|
|
||||||||||
(1) Annualized percentage of total average managed receivables. |
Earnings Highlights |
||||||||
|
Three Months Ended May 31 |
|||||||
(In millions except per share data) |
|
2022 |
|
|
2021 |
|
Change |
|
Net earnings |
$ |
252.3 |
|
$ |
436.8 |
|
(42.2 |
)% |
Diluted weighted average shares outstanding |
|
161.8 |
|
|
166.3 |
|
(2.7 |
)% |
Net earnings per diluted share |
$ |
1.56 |
|
$ |
2.63 |
|
(40.7 |
)% |
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, June 24, 2022. Domestic investors may access the call at 1-800-289-0720 (international callers dial 1-323-701-0160). The conference I.D. for both domestic and international callers is 3170513. 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 28, 2022, or via telephone (for approximately one week) by dialing 1-888-203-1112 (or 1-719-457-0820 for international access) and entering the conference ID 3170513.
Second Quarter Fiscal 2023 Earnings Release Date
We currently plan to release results for the second quarter ending August 31, 2022, on Thursday, September 29, 2022, 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 2022.
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. CarMax also provides a variety of vehicle delivery methods, including home delivery, express pickup and appointments in its stores. During the fiscal year ended February 28, 2022, CarMax sold approximately 924,000 used vehicles and 706,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than $9 billion in receivables during fiscal 2022, adding to its nearly $16 billion portfolio. CarMax has more than 230 stores, more than 30,000 associates, and is proud to have been recognized for 18 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 2022 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, 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,” “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:
For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2022, 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) |
|
2022 |
%(1) |
|
2021 |
|
%(1) |
|||||
SALES AND OPERATING REVENUES: |
|
|
|
|
||||||||
Used vehicle sales |
$ |
7,014,490 |
75.3 |
$ |
6,157,344 |
|
80.0 |
|
||||
Wholesale vehicle sales |
|
2,116,517 |
22.7 |
|
1,374,357 |
|
17.9 |
|
||||
Other sales and revenues |
|
180,614 |
1.9 |
|
165,898 |
|
2.2 |
|
||||
NET SALES AND OPERATING REVENUES |
|
9,311,621 |
100.0 |
|
7,697,599 |
|
100.0 |
|
||||
COST OF SALES: |
|
|
|
|
||||||||
Used vehicle cost of sales |
|
6,451,010 |
69.3 |
|
5,560,337 |
|
72.2 |
|
||||
Wholesale vehicle cost of sales |
|
1,924,850 |
20.7 |
|
1,188,513 |
|
15.4 |
|
||||
Other cost of sales |
|
60,370 |
0.6 |
|
24,240 |
|
0.3 |
|
||||
TOTAL COST OF SALES |
|
8,436,230 |
90.6 |
|
6,773,090 |
|
88.0 |
|
||||
GROSS PROFIT |
|
875,391 |
9.4 |
|
924,509 |
|
12.0 |
|
||||
CARMAX AUTO FINANCE INCOME |
|
204,473 |
2.2 |
|
241,731 |
|
3.1 |
|
||||
Selling, general and administrative expenses |
|
656,740 |
7.1 |
|
554,069 |
|
7.2 |
|
||||
Depreciation and amortization |
|
55,648 |
0.6 |
|
49,890 |
|
0.6 |
|
||||
Interest expense |
|
28,775 |
0.3 |
|
20,534 |
|
0.3 |
|
||||
Other expense (income) |
|
2,099 |
— |
|
(25,577 |
) |
(0.3 |
) |
||||
Earnings before income taxes |
|
336,602 |
3.6 |
|
567,324 |
|
7.4 |
|
||||
Income tax provision |
|
84,337 |
0.9 |
|
130,568 |
|
1.7 |
|
||||
NET EARNINGS |
|
$ |
252,265 |
|
2.7 |
|
$ |
436,756 |
|
|
5.7 |
|
WEIGHTED AVERAGE COMMON SHARES: |
|
|
|
|
||||||||
Basic |
|
160,298 |
|
|
163,151 |
|
|
|||||
Diluted |
|
161,798 |
|
|
166,295 |
|
|
|||||
NET EARNINGS PER SHARE: |
|
|
|
|
||||||||
Basic |
$ |
1.57 |
|
$ |
2.68 |
|
|
|||||
Diluted |
$ |
1.56 |
|
$ |
2.63 |
|
|
|||||
(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 28 |
|
May 31 |
|||||
(In thousands except share data) |
|
2022 |
|
|
2022 |
|
|
|
2021 |
|
|
ASSETS |
|
|
|
|
|
||||||
|
CURRENT ASSETS: |
|
|
|
|
|
|||||
|
Cash and cash equivalents |
$ |
95,313 |
|
$ |
102,716 |
|
|
$ |
377,954 |
|
|
Restricted cash from collections on auto loans receivable |
|
531,344 |
|
|
548,099 |
|
|
|
549,578 |
|
|
Accounts receivable, net |
|
610,587 |
|
|
560,984 |
|
|
|
413,219 |
|
|
Inventory |
|
4,691,085 |
|
|
5,124,569 |
|
|
|
3,248,849 |
|
|
Other current assets |
|
189,638 |
|
|
212,922 |
|
|
|
101,005 |
|
|
TOTAL CURRENT ASSETS |
|
6,117,967 |
|
|
6,549,290 |
|
|
|
4,690,605 |
|
|
Auto loans receivable, net |
|
15,672,605 |
|
|
15,289,701 |
|
|
|
14,159,044 |
|
|
Property and equipment, net |
|
3,258,614 |
|
|
3,209,068 |
|
|
|
3,076,173 |
|
|
Deferred income taxes |
|
91,305 |
|
|
120,931 |
|
|
|
138,487 |
|
|
Operating lease assets |
|
533,355 |
|
|
537,357 |
|
|
|
453,851 |
|
|
Goodwill |
|
141,258 |
|
|
141,258 |
|
|
|
653 |
|
|
Other assets |
|
523,590 |
|
|
490,659 |
|
|
|
314,076 |
|
|
TOTAL ASSETS |
$ |
26,338,694 |
|
$ |
26,338,264 |
|
|
$ |
22,832,889 |
|
|
|
|
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||||||
|
CURRENT LIABILITIES: |
|
|
|
|
|
|||||
|
Accounts payable |
$ |
1,066,922 |
|
$ |
937,717 |
|
|
$ |
1,058,005 |
|
|
Accrued expenses and other current liabilities |
|
489,619 |
|
|
533,271 |
|
|
|
401,043 |
|
|
Accrued income taxes |
|
18,365 |
|
|
— |
|
|
|
96,624 |
|
|
Current portion of operating lease liabilities |
|
44,384 |
|
|
44,197 |
|
|
|
30,836 |
|
|
Current portion of long-term debt |
|
111,517 |
|
|
11,203 |
|
|
|
10,210 |
|
|
Current portion of non-recourse notes payable |
|
520,944 |
|
|
521,069 |
|
|
|
496,669 |
|
|
TOTAL CURRENT LIABILITIES |
|
2,251,751 |
|
|
2,047,457 |
|
|
|
2,093,387 |
|
|
Long-term debt, excluding current portion |
|
2,569,751 |
|
|
3,255,304 |
|
|
|
1,320,208 |
|
|
Non-recourse notes payable, excluding current portion |
|
15,218,229 |
|
|
14,919,715 |
|
|
|
13,840,787 |
|
|
Operating lease liabilities, excluding current portion |
|
519,818 |
|
|
523,269 |
|
|
|
446,497 |
|
|
Other liabilities |
|
378,508 |
|
|
357,080 |
|
|
|
428,529 |
|
|
TOTAL LIABILITIES |
|
20,938,057 |
|
|
21,102,825 |
|
|
|
18,129,408 |
|
|
|
|
|
|
|
|
|||||
|
Commitments and contingent liabilities |
|
|
|
|
|
|||||
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|||||
|
Common stock, $0.50 par value; 350,000,000 shares authorized; 159,613,860 and 161,053,983 shares issued and outstanding as of May 31, 2022 and February 28, 2022, respectively |
|
79,807 |
|
|
80,527 |
|
|
|
81,401 |
|
|
Capital in excess of par value |
|
1,678,172 |
|
|
1,677,268 |
|
|
|
1,527,876 |
|
|
Accumulated other comprehensive income (loss) |
|
5,892 |
|
|
(46,422 |
) |
|
|
(115,754 |
) |
|
Retained earnings |
|
3,636,766 |
|
|
3,524,066 |
|
|
|
3,209,958 |
|
|
TOTAL SHAREHOLDERS’ EQUITY |
|
5,400,637 |
|
|
5,235,439 |
|
|
|
4,703,481 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
26,338,694 |
|
$ |
26,338,264 |
|
|
$ |
22,832,889 |
|
CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
Three Months Ended May 31 |
||||||
(In thousands) |
|
2022 |
|
|
|
2021 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
252,265 |
|
|
$ |
436,756 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
70,473 |
|
|
|
62,356 |
|
Share-based compensation expense |
|
22,443 |
|
|
|
41,074 |
|
Provision for loan losses |
|
57,840 |
|
|
|
(24,375 |
) |
Provision for cancellation reserves |
|
31,719 |
|
|
|
34,128 |
|
Deferred income tax provision |
|
11,561 |
|
|
|
24,751 |
|
Other |
|
5,342 |
|
|
|
(21,037 |
) |
Net (increase) decrease in: |
|
|
|
||||
Accounts receivable, net |
|
(49,603 |
) |
|
|
(174,149 |
) |
Inventory |
|
433,484 |
|
|
|
(91,690 |
) |
Other current assets |
|
73,315 |
|
|
|
(9,873 |
) |
Auto loans receivable, net |
|
(440,744 |
) |
|
|
(644,850 |
) |
Other assets |
|
(15,154 |
) |
|
|
(2,853 |
) |
Net increase (decrease) in: |
|
|
|
||||
Accounts payable, accrued expenses and other current liabilities and accrued income taxes |
|
105,445 |
|
|
|
315,784 |
|
Other liabilities |
|
(27,434 |
) |
|
|
(57,905 |
) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
530,952 |
|
|
|
(111,883 |
) |
INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(94,808 |
) |
|
|
(59,145 |
) |
Proceeds from sale of business |
|
— |
|
|
|
617 |
|
Purchases of investments |
|
(4,380 |
) |
|
|
(4,701 |
) |
Sales and returns of investments |
|
150 |
|
|
|
86 |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(99,038 |
) |
|
|
(63,143 |
) |
FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from issuances of long-term debt |
|
1,043,100 |
|
|
|
388,600 |
|
Payments on long-term debt |
|
(1,629,024 |
) |
|
|
(391,235 |
) |
Cash paid for debt issuance costs |
|
(3,940 |
) |
|
|
(3,910 |
) |
Payments on finance lease obligations |
|
(2,925 |
) |
|
|
(2,789 |
) |
Issuances of non-recourse notes payable |
|
3,569,605 |
|
|
|
3,610,819 |
|
Payments on non-recourse notes payable |
|
(3,272,242 |
) |
|
|
(3,014,131 |
) |
Repurchase and retirement of common stock |
|
(162,974 |
) |
|
|
(133,838 |
) |
Equity issuances |
|
3,443 |
|
|
|
21,589 |
|
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
|
(454,957 |
) |
|
|
475,105 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(23,043 |
) |
|
|
300,079 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
803,618 |
|
|
|
771,947 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD |
$ |
780,575 |
|
|
$ |
1,072,026 |
|
РИЧМОНД, Вирджиния -(BUSINESS WIRE)-CarMax, Inc. (NYSE:KMX) сегодня сообщила о результатах за первый квартал, закончившийся 31 мая 2022 года.
Комментарий генерального директора:
“Несмотря на то, что в первом квартале ситуация на рынке подержанных автомобилей была сложной, мы продолжали добиваться прогресса в реализации ключевых стратегических приоритетов, которые позволяют CarMax увеличивать прибыльную долю рынка сейчас и в будущем”, - сказал Билл Нэш, президент и главный исполнительный директор. “В течение последних нескольких лет наши приоритеты и инвестиции были сосредоточены на создании ведущей платформы электронной коммерции, которая объединяет покупку и продажу автомобилей с нашим лучшим в своем классе магазином. Все наши розничные клиенты теперь могут самостоятельно совершать онлайн-транзакции. Теперь мы направим наши усилия на дальнейшее улучшение обслуживания клиентов и партнеров, сосредоточившись на безупречности наших онлайн-предложений и предложений в магазинах”.
Обзор эффективности бизнеса за Первый квартал:
Продажи. Совокупные розничные и оптовые продажи подержанных автомобилей составили 427 257 единиц, что на 5,5% меньше, чем в первом квартале предыдущего года. Розничные онлайн-продажи(1) составили 11% от розничных продаж единиц по сравнению с 8% в первом квартале прошлого года. Выручка от онлайн-транзакций(2), включая розничные и оптовые продажи, составила 2,9 миллиарда долларов, или примерно 31% чистой выручки, по сравнению с 24% чистой выручки в первом квартале прошлого года.
Общий объем розничных продаж подержанных автомобилей снизился на 11,0% до 240 950 единиц, а сопоставимые продажи подержанных автомобилей в магазинах снизились на 12,7% по сравнению с первым кварталом предыдущего года. Мы считаем, что на наши показатели продаж в первом квартале повлиял ряд макроэкономических факторов, в том числе сокращение стимулирующих выплат, выплаченных в предыдущем году; широко распространенное инфляционное давление, включая проблемы с доступностью транспортных средств; и ослабление доверия потребителей. Общая выручка от розничной продажи подержанных автомобилей увеличилась на 13,9% по сравнению с первым кварталом предыдущего года из-за увеличения средней розничной цены продажи, которая выросла примерно на 6 300 долларов США за единицу, или на 28,0%, что частично компенсировалось снижением розничных продаж подержанных автомобилей. Увеличение средней розничной цены продажи в значительной степени отражает более высокие затраты на приобретение транспортных средств, вызванные высокими оценками оптовой отрасли.
Общий объем оптовых продаж единиц транспортных средств увеличился на 2,7% до 186 307 единиц по сравнению с первым кварталом предыдущего года, поскольку мы перенесли прошлогодний общенациональный запуск нашего продукта мгновенной оценки предложений на CarMax.com . На объем оптовой продажи негативно повлиял календарный сдвиг, который привел к сокращению объема аукционов по сравнению с предыдущим годом, а также наше решение перевести некоторые единицы из оптовой торговли в розничную, чтобы удовлетворить потребительский спрос на автомобили по более низкой цене. Общая выручка от оптовой продажи увеличилась на 54,0% по сравнению с первым кварталом предыдущего года благодаря росту средней оптовой цены продажи более чем на 3700 долларов США за единицу, или на 51,3%, вместе с увеличением количества проданных оптовых единиц.
Прочие продажи и доходы выросли на 8,9% по сравнению с первым кварталом 2022 финансового года, что представляет собой увеличение на 14,7 млн долларов. Увеличение было в значительной степени обусловлено консолидацией Edmunds по состоянию на 1 июня 2021 года, а также улучшением чистого финансового дохода от сторонних источников в результате более низкого уровня 3. Увеличение было частично компенсировано снижением выручки по плану расширенной защиты (EPP) на 17,7 млн долларов, что в значительной степени отражает снижение розничных продаж, а также продажу нашей оставшейся франшизы на новые автомобили в 2022 финансовом году.
Валовая Прибыль. Общая валовая прибыль составила $875,4 млн, что на 5,3% меньше, чем в первом квартале прошлого года. Валовая прибыль розничной торговли подержанными автомобилями снизилась на 5,6%, отражая совокупный эффект снижения розничных продаж единиц и улучшения соответствующей валовой прибыли на единицу, которая выросла на 134 доллара до 2339 долларов.
Валовая прибыль от оптовой продажи транспортных средств увеличилась на 3,1% по сравнению с кварталом предыдущего года, что отражает продолжающийся рост объема оптовой продажи и небольшое увеличение соответствующей валовой прибыли на единицу, которая выросла на 4 доллара до 1 029 долларов.
Прочая валовая прибыль снизилась на 15,1%, что в значительной степени отражает снижение маржи отдела обслуживания и доходов EPP, частично компенсированное консолидацией Edmunds и улучшением чистого финансового дохода от третьих сторон. Маржа услуг снизилась в основном из-за сокращения доли заемных средств в результате снижения розничных продаж, а также из-за инфляционного давления.
SG&A. По сравнению с первым кварталом 2022 финансового года расходы на НИОКР увеличились на 18,5% до 656,7 млн долларов. Способствующие факторы включали эффект увеличения штата и давления на заработную плату за последний год, инвестиции в развитие наших технологических платформ и стратегических инициатив, а также связанные с ростом расходы, увеличение расходов на рекламу и консолидацию Edmunds. Частично компенсируя эти статьи, было сокращено вознаграждение, основанное на акциях, что в значительной степени отразило изменения в цене акций компании. Доля SG&A в валовой прибыли составила 75,0% по сравнению с 59,9% в первом квартале предыдущего года, что обусловлено указанными выше расходами в сочетании со снижением объема продаж.
CarMax Автофинансирование.(3) Доход CAF снизился на 15,4% до 204,5 млн долларов США, что обусловлено увеличением резерва на возможные потери по ссудам на 82,2 млн долларов в годовом исчислении. В этом году резервы были более нормализованы в условиях, предшествовавших пандемии, и составили 57,8 млн долларов США по сравнению с 24,4 млн долларов дохода в первом квартале предыдущего года из-за благоприятных показателей потерь по ссудам. Это влияние на резервы перевесило последствия значительного роста чистой процентной маржи CAF и средней управляемой дебиторской задолженности.
По состоянию на 31 мая 2022 года резерв на возможные потери по ссудам составлял 2,85% от конечной управляемой дебиторской задолженности, по сравнению с 2,77% по состоянию на 28 февраля 2022 года. Увеличение процентной доли резерва в первую очередь отражает эффект ранее раскрытого расширения кредитов уровня 2 и уровня 3 в портфеле CAF.
Общий процент процентной маржи CAF, который представляет собой разницу между процентами и сборами, взимаемыми с потребителей, и нашими затратами на финансирование, увеличился до 7,5% от средней управляемой дебиторской задолженности с 6,9% в первом квартале предыдущего года благодаря снижению затрат на финансирование при дополнительной поддержке нашей стратегии хеджирования. После эффекта 3-дневных выплат CAF профинансировала 39,3% единиц, проданных в текущем квартале, по сравнению с 43,7% в первом квартале предыдущего года, что в значительной степени отражает увеличение числа клиентов, использующих внешнее финансирование.
Деятельность по Выкупу Акций. В течение первого квартала 2023 финансового года мы выкупили 1,6 миллиона обыкновенных акций на сумму 157,6 миллиона долларов в соответствии с нашей программой обратного выкупа акций. По состоянию на 31 мая 2022 года у нас оставалось 2,62 миллиарда долларов, доступных для выкупа в соответствии с непогашенным разрешением.
Открытия магазинов. В течение первого квартала 2023 финансового года мы открыли одно новое торговое место в Эдисоне, штат Нью-Джерси, наш первый розничный магазин на нью-йоркском рынке метро. В 2023 финансовом году мы планируем открыть в общей сложности десять новых филиалов.
(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. |
Дополнительная Финансовая Информация Суммы и процентные расчеты могут не суммироваться из-за округления.
Sales Components |
|||||||||
|
Three Months Ended May 31 |
||||||||
(In millions) |
|
2022 |
|
|
2021 |
|
|
Change |
|
Used vehicle sales |
$ |
7,014.5 |
|
$ |
6,157.3 |
|
|
13.9 |
% |
Wholesale vehicle sales |
|
2,116.5 |
|
|
1,374.4 |
|
|
54.0 |
% |
Other sales and revenues: |
|
|
|
|
|
||||
Extended protection plan revenues |
|
116.5 |
|
|
134.2 |
|
|
(13.2 |
)% |
Third-party finance income/(fees), net |
|
3.4 |
|
|
(4.6 |
) |
|
173.9 |
% |
Advertising & subscription revenues (1) |
|
34.4 |
|
|
— |
|
|
100.0 |
% |
Other |
|
26.3 |
|
|
36.3 |
|
|
(27.3 |
)% |
Total other sales and revenues |
|
180.6 |
|
|
165.9 |
|
|
8.9 |
% |
Total net sales and operating revenues |
$ |
9,311.6 |
|
$ |
7,697.6 |
|
|
21.0 |
% |
(1) Excludes intersegment revenues that have been eliminated in consolidation. |
Unit Sales |
||||||
|
Three Months Ended May 31 |
|||||
|
2022 |
|
2021 |
|
Change |
|
Used vehicles |
240,950 |
|
270,799 |
|
(11.0 |
)% |
Wholesale vehicles |
186,307 |
|
181,389 |
|
2.7 |
% |
Average Selling Prices |
||||||||
|
Three Months Ended May 31 |
|||||||
|
|
2022 |
|
|
2021 |
|
Change |
|
Used vehicles |
$ |
28,844 |
|
$ |
22,533 |
|
28.0 |
% |
Wholesale vehicles |
$ |
10,996 |
|
$ |
7,266 |
|
51.3 |
% |
Vehicle Sales Changes |
||||
|
Three Months Ended May 31 |
|||
|
2022 |
2021 |
||
Used vehicle units |
(11.0 |
)% |
100.6 |
% |
Used vehicle revenues |
13.9 |
% |
121.0 |
% |
|
|
|
||
Wholesale vehicle units |
2.7 |
% |
186.6 |
% |
Wholesale vehicle revenues |
54.0 |
% |
300.9 |
% |
Comparable Store Used Vehicle Sales Changes (1) |
||||
|
Three Months Ended May 31 |
|||
|
2022 |
2021 |
||
Used vehicle units |
(12.7 |
)% |
99.1 |
% |
Used vehicle revenues |
11.6 |
% |
120.6 |
% |
(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 |
||||
|
2022 |
|
2021 |
||
CAF (2) |
43.3 |
% |
|
46.7 |
% |
Tier 2 (3) |
25.2 |
% |
|
22.8 |
% |
Tier 3 (4) |
7.1 |
% |
|
10.0 |
% |
Other (5) |
24.4 |
% |
|
20.5 |
% |
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 1% 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) |
|
2022 |
% (1) |
|
|
2021 |
% (1) |
|||
Net sales and operating revenues |
$ |
9,311.6 |
100.0 |
|
$ |
7,697.6 |
100.0 |
|||
Gross profit |
$ |
875.4 |
9.4 |
|
$ |
924.5 |
12.0 |
|||
CarMax Auto Finance income |
$ |
204.5 |
2.2 |
|
$ |
241.7 |
3.1 |
|||
Selling, general, and administrative expenses |
$ |
656.7 |
7.1 |
|
$ |
554.1 |
7.2 |
|||
Interest expense |
$ |
28.8 |
0.3 |
|
$ |
20.5 |
0.3 |
|||
Earnings before income taxes |
$ |
336.6 |
3.6 |
|
$ |
567.3 |
7.4 |
|||
Net earnings |
$ |
252.3 |
2.7 |
|
$ |
436.8 |
5.7 |
|||
(1) Calculated as a percentage of net sales and operating revenues. |
Gross Profit (1) |
||||||||
|
Three Months Ended May 31 |
|||||||
(In millions) |
|
2022 |
|
|
2021 |
|
Change |
|
Used vehicle gross profit |
$ |
563.5 |
|
$ |
597.0 |
|
(5.6 |
)% |
Wholesale vehicle gross profit |
|
191.7 |
|
|
185.8 |
|
3.1 |
% |
Other gross profit |
|
120.2 |
|
|
141.7 |
|
(15.1 |
)% |
Total |
$ |
875.4 |
|
$ |
924.5 |
|
(5.3 |
)% |
(1) Amounts are net of intercompany eliminations. |
Gross Profit per Unit (1) |
||||||||||
|
Three Months Ended May 31 |
|||||||||
|
2022 |
2021 |
||||||||
|
$ per unit(2) |
%(3) |
$ per unit(2) |
%(3) |
||||||
Used vehicle gross profit |
$ |
2,339 |
8.0 |
$ |
2,205 |
9.7 |
||||
Wholesale vehicle gross profit |
$ |
1,029 |
9.1 |
$ |
1,025 |
13.5 |
||||
Other gross profit |
$ |
499 |
66.6 |
$ |
523 |
85.4 |
||||
(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) |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
Compensation and benefits: |
|
|
|
|
|
|||||
Compensation and benefits, excluding share-based compensation expense |
$ |
345.3 |
|
|
$ |
284.2 |
|
|
21.5 |
% |
Share-based compensation expense |
|
22.2 |
|
|
|
38.4 |
|
|
(42.1 |
)% |
Total compensation and benefits (2) |
$ |
367.5 |
|
|
$ |
322.6 |
|
|
13.9 |
% |
Occupancy costs |
|
65.8 |
|
|
|
50.6 |
|
|
30.2 |
% |
Advertising expense |
|
88.9 |
|
|
|
72.5 |
|
|
22.7 |
% |
Other overhead costs (3) |
|
134.5 |
|
|
|
108.4 |
|
|
24.0 |
% |
Total SG&A expenses |
$ |
656.7 |
|
|
$ |
554.1 |
|
|
18.5 |
% |
SG&A as % of gross profit |
|
75.0 |
% |
|
|
59.9 |
% |
|
15.1 |
% |
(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, preopening and relocation costs, charitable contributions, travel and other administrative expenses. |
Components of CAF Income and Other CAF Information |
||||||||||||||
|
Three Months Ended May 31 |
|||||||||||||
(In millions) |
|
2022 |
|
% (1) |
|
2021 |
|
% (1) |
||||||
Interest margin: |
|
|
|
|
||||||||||
Interest and fee income |
$ |
346.7 |
|
8.8 |
|
$ |
310.3 |
|
8.8 |
|
||||
Interest expense |
|
(48.8 |
) |
(1.2 |
) |
|
(65.8 |
) |
(1.9 |
) |
||||
Total interest margin |
|
297.9 |
|
7.5 |
|
|
244.5 |
|
6.9 |
|
||||
Provision for loan losses |
|
(57.8 |
) |
(1.5 |
) |
|
24.4 |
|
0.7 |
|
||||
Total interest margin after provision for loan losses |
|
240.1 |
|
6.1 |
|
|
268.9 |
|
7.6 |
|
||||
Total direct expenses |
|
(35.6 |
) |
(0.9 |
) |
|
(27.2 |
) |
(0.8 |
) |
||||
CarMax Auto Finance income |
$ |
204.5 |
|
5.2 |
|
$ |
241.7 |
|
6.8 |
|
||||
|
|
|
|
|
||||||||||
Total average managed receivables |
$ |
15,817.0 |
|
|
$ |
14,148.7 |
|
|
||||||
Net loans originated |
$ |
2,446.8 |
|
|
$ |
2,483.4 |
|
|
||||||
Net penetration rate |
|
39.3 |
% |
|
|
43.7 |
% |
|
||||||
Weighted average contract rate |
|
9.0 |
% |
|
|
9.0 |
% |
|
||||||
|
|
|
|
|
||||||||||
Ending allowance for loan losses |
$ |
458.2 |
|
|
$ |
379.5 |
|
|
||||||
|
|
|
|
|
||||||||||
Warehouse facility information: |
|
|
|
|
||||||||||
Ending funded receivables |
$ |
3,629.9 |
|
|
$ |
2,856.9 |
|
|
||||||
Ending unused capacity |
$ |
1,770.1 |
|
|
$ |
1,068.1 |
|
|
||||||
|
|
|
|
|
||||||||||
(1) Annualized percentage of total average managed receivables. |
Earnings Highlights |
||||||||
|
Three Months Ended May 31 |
|||||||
(In millions except per share data) |
|
2022 |
|
|
2021 |
|
Change |
|
Net earnings |
$ |
252.3 |
|
$ |
436.8 |
|
(42.2 |
)% |
Diluted weighted average shares outstanding |
|
161.8 |
|
|
166.3 |
|
(2.7 |
)% |
Net earnings per diluted share |
$ |
1.56 |
|
$ |
2.63 |
|
(40.7 |
)% |
Информация о конференц-звонке
Мы проведем телефонную конференцию для инвесторов в 9:00 утра по восточному времени сегодня, 24 июня 2022 года. Внутренние инвесторы могут получить доступ к телефону 1-800-289-0720 (международные абоненты набирают 1-323-701-0160). Идентификационный номер конференции как для внутренних, так и для международных абонентов - 3170513. Прямая трансляция звонка будет доступна на нашей домашней странице с информацией об инвесторах по адресу investors.CarMax.com .
Повтор веб-трансляции будет доступен на веб-сайте компании по адресу investors.CarMax.com до 28 сентября 2022 года или по телефону (примерно в течение одной недели), набрав 1-888-203-1112 (или 1-719-457-0820 для международного доступа) и введя идентификатор конференции 3170513.
Дата публикации прибыли за Второй квартал 2023 финансового года
В настоящее время мы планируем опубликовать результаты за второй квартал, заканчивающийся 31 августа 2022 года, в четверг, 29 сентября 2022 года, до открытия торгов на Нью-Йоркской фондовой бирже. Мы планируем провести телефонную конференцию для инвесторов в 9:00 утра по восточному времени в этот день. Информация об этой телефонной конференции будет доступна на нашей домашней странице с информацией об инвесторах на сайте investors.CarMax.com в начале сентября 2022 года.
CarMax, крупнейший в стране розничный торговец подержанными автомобилями, произвел революцию в автомобильной розничной торговле, добившись честности, честности и прозрачности в каждом взаимодействии. Компания предлагает по-настоящему персонализированный сервис, предоставляя клиентам возможность делать в Интернете и в магазине столько или столько, сколько они хотят. CarMax также предоставляет различные способы доставки транспортных средств, включая доставку на дом, экспресс-доставку и встречи в своих магазинах. В течение финансового года, закончившегося 28 февраля 2022 года, CarMax продал на своих аукционах около 924 000 подержанных автомобилей и 706 000 автомобилей оптом. Кроме того, в течение 2022 финансового года CarMax Auto Finance привлекла дебиторскую задолженность на сумму более 9 миллиардов долларов, увеличив свой портфель почти на 16 миллиардов долларов. CarMax насчитывает более 230 магазинов, более 30 000 сотрудников и гордится тем, что уже 18 лет подряд ее признают одной из 100 лучших компаний для работы в Fortune®. CarMax стремится оказывать положительное влияние на людей, сообщества и окружающую среду. Узнайте больше в Отчете об ответственности за 2022 год. Для получения дополнительной информации посетите веб-сайт www.CarMax.com .
Прогнозные заявления
Мы предупреждаем читателей, что заявления, содержащиеся в этом релизе, которые не являются заявлениями об исторических фактах, включая заявления о наших будущих бизнес-планах, операциях, проблемах, возможностях или перспективах, включая, помимо прочего, любые заявления или факторы, касающиеся ожидаемых операционных мощностей, продаж, запасов, доли рынка, финансовых целей, выручки, прибыли, расходы, ликвидность, предоставление займов, капитальные затраты, долговые обязательства или доходы являются прогнозными заявлениями, сделанными в соответствии с положениями Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Вы можете идентифицировать эти прогнозные заявления с помощью таких слов, как “предвидеть”, “полагать”, “мог бы”, “оценивать”, “ожидать”, “намереваться”, “может”, “прогноз”, “планировать”, “позиционировать”, “прогнозировать”, “должен”, “цель”, “воля” и другие подобные выражения, будь то в отрицательном или утвердительном смысле. Такие прогнозные заявления основаны на текущих знаниях, ожиданиях и предположениях руководства и связаны с рисками и неопределенностями, которые могут привести к тому, что фактические результаты будут существенно отличаться от ожидаемых результатов. К числу факторов, которые могут привести к тому, что фактические результаты и результаты будут существенно отличаться от тех, которые содержатся в прогнозных заявлениях, относятся следующие:
Для получения более подробной информации о факторах, которые могут повлиять на ожидания, см. Наш Годовой отчет по форме 10-K за финансовый год, закончившийся 28 февраля 2022 года, а также наши квартальные или текущие отчеты, представленные или представленные в Комиссию по ценным бумагам и биржам США. Наши заявки находятся в открытом доступе на нашей домашней странице с информацией об инвесторах на сайте investors.CarMax.com . Запросы о предоставлении информации также можно направлять в Отдел по связям с инвесторами по электронной почте на адрес investor_relations@CarMax.com или позвонив по телефону (804) 747-0422 x7865. Мы не берем на себя никаких обязательств по обновлению или пересмотру каких-либо прогнозных заявлений после даты их опубликования, будь то в результате новой информации, будущих событий или иным образом.
CarMax, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
||||||||||||
|
Three Months Ended May 31 |
|||||||||||
(In thousands except per share data) |
|
2022 |
%(1) |
|
2021 |
|
%(1) |
|||||
SALES AND OPERATING REVENUES: |
|
|
|
|
||||||||
Used vehicle sales |
$ |
7,014,490 |
75.3 |
$ |
6,157,344 |
|
80.0 |
|
||||
Wholesale vehicle sales |
|
2,116,517 |
22.7 |
|
1,374,357 |
|
17.9 |
|
||||
Other sales and revenues |
|
180,614 |
1.9 |
|
165,898 |
|
2.2 |
|
||||
NET SALES AND OPERATING REVENUES |
|
9,311,621 |
100.0 |
|
7,697,599 |
|
100.0 |
|
||||
COST OF SALES: |
|
|
|
|
||||||||
Used vehicle cost of sales |
|
6,451,010 |
69.3 |
|
5,560,337 |
|
72.2 |
|
||||
Wholesale vehicle cost of sales |
|
1,924,850 |
20.7 |
|
1,188,513 |
|
15.4 |
|
||||
Other cost of sales |
|
60,370 |
0.6 |
|
24,240 |
|
0.3 |
|
||||
TOTAL COST OF SALES |
|
8,436,230 |
90.6 |
|
6,773,090 |
|
88.0 |
|
||||
GROSS PROFIT |
|
875,391 |
9.4 |
|
924,509 |
|
12.0 |
|
||||
CarMax AUTO FINANCE INCOME |
|
204,473 |
2.2 |
|
241,731 |
|
3.1 |
|
||||
Selling, general and administrative expenses |
|
656,740 |
7.1 |
|
554,069 |
|
7.2 |
|
||||
Depreciation and amortization |
|
55,648 |
0.6 |
|
49,890 |
|
0.6 |
|
||||
Interest expense |
|
28,775 |
0.3 |
|
20,534 |
|
0.3 |
|
||||
Other expense (income) |
|
2,099 |
— |
|
(25,577 |
) |
(0.3 |
) |
||||
Earnings before income taxes |
|
336,602 |
3.6 |
|
567,324 |
|
7.4 |
|
||||
Income tax provision |
|
84,337 |
0.9 |
|
130,568 |
|
1.7 |
|
||||
NET EARNINGS |
|
$ |
252,265 |
|
2.7 |
|
$ |
436,756 |
|
|
5.7 |
|
WEIGHTED AVERAGE COMMON SHARES: |
|
|
|
|
||||||||
Basic |
|
160,298 |
|
|
163,151 |
|
|
|||||
Diluted |
|
161,798 |
|
|
166,295 |
|
|
|||||
NET EARNINGS PER SHARE: |
|
|
|
|
||||||||
Basic |
$ |
1.57 |
|
$ |
2.68 |
|
|
|||||
Diluted |
$ |
1.56 |
|
$ |
2.63 |
|
|
|||||
(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 28 |
|
May 31 |
|||||
(In thousands except share data) |
|
2022 |
|
|
2022 |
|
|
|
2021 |
|
|
ASSETS |
|
|
|
|
|
||||||
|
CURRENT ASSETS: |
|
|
|
|
|
|||||
|
Cash and cash equivalents |
$ |
95,313 |
|
$ |
102,716 |
|
|
$ |
377,954 |
|
|
Restricted cash from collections on auto loans receivable |
|
531,344 |
|
|
548,099 |
|
|
|
549,578 |
|
|
Accounts receivable, net |
|
610,587 |
|
|
560,984 |
|
|
|
413,219 |
|
|
Inventory |
|
4,691,085 |
|
|
5,124,569 |
|
|
|
3,248,849 |
|
|
Other current assets |
|
189,638 |
|
|
212,922 |
|
|
|
101,005 |
|
|
TOTAL CURRENT ASSETS |
|
6,117,967 |
|
|
6,549,290 |
|
|
|
4,690,605 |
|
|
Auto loans receivable, net |
|
15,672,605 |
|
|
15,289,701 |
|
|
|
14,159,044 |
|
|
Property and equipment, net |
|
3,258,614 |
|
|
3,209,068 |
|
|
|
3,076,173 |
|
|
Deferred income taxes |
|
91,305 |
|
|
120,931 |
|
|
|
138,487 |
|
|
Operating lease assets |
|
533,355 |
|
|
537,357 |
|
|
|
453,851 |
|
|
Goodwill |
|
141,258 |
|
|
141,258 |
|
|
|
653 |
|
|
Other assets |
|
523,590 |
|
|
490,659 |
|
|
|
314,076 |
|
|
TOTAL ASSETS |
$ |
26,338,694 |
|
$ |
26,338,264 |
|
|
$ |
22,832,889 |
|
|
|
|
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||||||
|
CURRENT LIABILITIES: |
|
|
|
|
|
|||||
|
Accounts payable |
$ |
1,066,922 |
|
$ |
937,717 |
|
|
$ |
1,058,005 |
|
|
Accrued expenses and other current liabilities |
|
489,619 |
|
|
533,271 |
|
|
|
401,043 |
|
|
Accrued income taxes |
|
18,365 |
|
|
— |
|
|
|
96,624 |
|
|
Current portion of operating lease liabilities |
|
44,384 |
|
|
44,197 |
|
|
|
30,836 |
|
|
Current portion of long-term debt |
|
111,517 |
|
|
11,203 |
|
|
|
10,210 |
|
|
Current portion of non-recourse notes payable |
|
520,944 |
|
|
521,069 |
|
|
|
496,669 |
|
|
TOTAL CURRENT LIABILITIES |
|
2,251,751 |
|
|
2,047,457 |
|
|
|
2,093,387 |
|
|
Long-term debt, excluding current portion |
|
2,569,751 |
|
|
3,255,304 |
|
|
|
1,320,208 |
|
|
Non-recourse notes payable, excluding current portion |
|
15,218,229 |
|
|
14,919,715 |
|
|
|
13,840,787 |
|
|
Operating lease liabilities, excluding current portion |
|
519,818 |
|
|
523,269 |
|
|
|
446,497 |
|
|
Other liabilities |
|
378,508 |
|
|
357,080 |
|
|
|
428,529 |
|
|
TOTAL LIABILITIES |
|
20,938,057 |
|
|
21,102,825 |
|
|
|
18,129,408 |
|
|
|
|
|
|
|
|
|||||
|
Commitments and contingent liabilities |
|
|
|
|
|
|||||
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|||||
|
Common stock, $0.50 par value; 350,000,000 shares authorized; 159,613,860 and 161,053,983 shares issued and outstanding as of May 31, 2022 and February 28, 2022, respectively |
|
79,807 |
|
|
80,527 |
|
|
|
81,401 |
|
|
Capital in excess of par value |
|
1,678,172 |
|
|
1,677,268 |
|
|
|
1,527,876 |
|
|
Accumulated other comprehensive income (loss) |
|
5,892 |
|
|
(46,422 |
) |
|
|
(115,754 |
) |
|
Retained earnings |
|
3,636,766 |
|
|
3,524,066 |
|
|
|
3,209,958 |
|
|
TOTAL SHAREHOLDERS’ EQUITY |
|
5,400,637 |
|
|
5,235,439 |
|
|
|
4,703,481 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
26,338,694 |
|
$ |
26,338,264 |
|
|
$ |
22,832,889 |
|
CarMax, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
Three Months Ended May 31 |
||||||
(In thousands) |
|
2022 |
|
|
|
2021 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
252,265 |
|
|
$ |
436,756 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
70,473 |
|
|
|
62,356 |
|
Share-based compensation expense |
|
22,443 |
|
|
|
41,074 |
|
Provision for loan losses |
|
57,840 |
|
|
|
(24,375 |
) |
Provision for cancellation reserves |
|
31,719 |
|
|
|
34,128 |
|
Deferred income tax provision |
|
11,561 |
|
|
|
24,751 |
|
Other |
|
5,342 |
|
|
|
(21,037 |
) |
Net (increase) decrease in: |
|
|
|
||||
Accounts receivable, net |
|
(49,603 |
) |
|
|
(174,149 |
) |
Inventory |
|
433,484 |
|
|
|
(91,690 |
) |
Other current assets |
|
73,315 |
|
|
|
(9,873 |
) |
Auto loans receivable, net |
|
(440,744 |
) |
|
|
(644,850 |
) |
Other assets |
|
(15,154 |
) |
|
|
(2,853 |
) |
Net increase (decrease) in: |
|
|
|
||||
Accounts payable, accrued expenses and other current liabilities and accrued income taxes |
|
105,445 |
|
|
|
315,784 |
|
Other liabilities |
|
(27,434 |
) |
|
|
(57,905 |
) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
530,952 |
|
|
|
(111,883 |
) |
INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(94,808 |
) |
|
|
(59,145 |
) |
Proceeds from sale of business |
|
— |
|
|
|
617 |
|
Purchases of investments |
|
(4,380 |
) |
|
|
(4,701 |
) |
Sales and returns of investments |
|
150 |
|
|
|
86 |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(99,038 |
) |
|
|
(63,143 |
) |
FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from issuances of long-term debt |
|
1,043,100 |
|
|
|
388,600 |
|
Payments on long-term debt |
|
(1,629,024 |
) |
|
|
(391,235 |
) |
Cash paid for debt issuance costs |
|
(3,940 |
) |
|
|
(3,910 |
) |
Payments on finance lease obligations |
|
(2,925 |
) |
|
|
(2,789 |
) |
Issuances of non-recourse notes payable |
|
3,569,605 |
|
|
|
3,610,819 |
|
Payments on non-recourse notes payable |
|
(3,272,242 |
) |
|
|
(3,014,131 |
) |
Repurchase and retirement of common stock |
|
(162,974 |
) |
|
|
(133,838 |
) |
Equity issuances |
|
3,443 |
|
|
|
21,589 |
|
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
|
(454,957 |
) |
|
|
475,105 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(23,043 |
) |
|
|
300,079 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
803,618 |
|
|
|
771,947 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD |
$ |
780,575 |
|
|
$ |
1,072,026 |
|