CARMAX REPORTS RECORD QUARTERLY RESULTS
Richmond, Va., June 22, 2011 – CarMax, Inc. (NYSE:KMX) today reported record results for the first quarter ended May 31, 2011.
| § | Net sales and operating revenues increased 18% to $2.68 billion from $2.26 billion in the first quarter of last year. |
| § | Comparable store used unit sales increased 6% for the quarter. |
| § | Total used unit sales rose 8% in the first quarter. |
| § | Total wholesale unit sales increased 32% in the first quarter. |
| § | Net earnings increased 25% to $126.3 million, or $0.55 per diluted share, compared with $101.1 million, or $0.44 per diluted share, earned in the first quarter of fiscal 2011. |
| o | Net earnings were increased by approximately $0.03 per share in both the current year period and the prior period as a result of favorability in the CarMax Auto Finance (CAF) provision for loan losses versus expectations. |
First Quarter Business Performance Review
Sales. “We are pleased to report another quarter of strong results,” said Tom Folliard, president and chief executive officer. Comparable store used unit sales increased 6%, fueled by increased customer traffic. While traffic for the current quarter remained solidly above the prior year level, sales conversion dipped somewhat. We are especially pleased with our performance in light of recent economic and market challenges, including higher gas and vehicle prices, the uptick in the unemployment rate and the recent pull-back in consumer confidence.
Wholesale unit sales increased 32% compared with the first quarter of fiscal 2011. The improvement reflected a significant increase in appraisal traffic combined with the benefit of a continued strong appraisal buy rate. We believe appraisal traffic benefited from the lift in new car industry sales and related used vehicle trade-in activity and from the strength of used vehicle pricing.
Other sales and revenues increased 9% compared with the first quarter of last year. Extended service plan (ESP) revenues increased 12%, reflecting the growth in our retail vehicle sales and an increase in ESP penetration resulting from the plan design improvements rolled out in mid-fiscal 2011.
Gross Profit. Total gross profit increased 15% to $383.1 million from $333.5 million in the first quarter of fiscal 2011. Used vehicle gross profit increased 8%, primarily driven by the growth in unit sales. Used vehicle gross profit per unit increased slightly, to $2,224 per unit from $2,212 per unit in the prior year quarter.
Wholesale vehicle gross profit increased 42%, reflecting the 32% rise in wholesale unit sales and an increase in wholesale gross profit per unit to $1,013 from $942 in the first quarter of fiscal 2011. Wholesale gross profit per unit continued to benefit from the favorable wholesale pricing environment and the strong dealer-to-car ratios at our auctions. The steep increase in industry pricing and strong dealer demand contributed to the record wholesale gross profits.
CarMax Auto Finance. CAF income was $69.7 million compared with $57.5 million in the first quarter of the prior year. The interest margin (which reflects the spread between the interest charged to consumers and our related funding costs, before the provision for loan losses) increased from the prior year quarter. The interest margin has gradually widened as loan originations in the last two years have become an increasingly large percentage of total managed receivables.
The provision for loan losses was a credit of $1.0 million compared with an expense of $0.9 million in the prior year’s first quarter. Net charge-offs in both periods were significantly below both our forecast and previous trends. The lower-than-expected losses and the resulting adjustments to the allowance for loan losses related to future periods favorably affected net income per share by $0.03 in both the first quarter of the current year and the first quarter of the prior year.
CAF net loans originated increased 33% compared with the first quarter of fiscal 2011. The increase reflected both the growth in our retail vehicle sales and our decision to retain an increasing portion of the loans that third-party providers had been purchasing since CAF’s tightening of lending standards in 2009.
SG&A. Selling, general and administrative expenses increased 9% to $248.2 million from $226.7 million in the prior year’s first quarter. The increase in SG&A included increased sales commissions and other variable costs associated with the increase in unit sales. In addition, we modestly increased our advertising spending per used unit sold. The SG&A ratio was 9.3% in the current year’s quarter compared with 10.0% in the prior year quarter, reflecting the increases in retail and wholesale unit sales and average selling prices.
Superstore Openings. During the first quarter of fiscal 2012, we opened two used car superstores, entering the Baton Rouge, Louisiana, and Lexington, Kentucky, markets.
Supplemental Financial Information
Sales Components
| (In millions) | | Three Months Ended May 31 (1) | |
| | | 2011 | | | 2010 | | | Change | |
| Used vehicle sales | | $ | 2,071.5 | | | $ | 1,832.1 | | | | 13.1 | % |
| New vehicle sales | | | 61.9 | | | | 50.9 | | | | 21.6 | % |
| Wholesale vehicle sales | | | 477.8 | | | | 316.5 | | | | 51.0 | % |
| Other sales and revenues: | | | | | | | | | | | | |
Extended service plan revenues | | | 46.3 | | | | 41.4 | | | | 12.0 | % |
Service department sales | | | 25.2 | | | | 26.3 | | | | (4.5 | )% |
Third-party finance fees, net | | | (3.3 | ) | | | (5.3 | ) | | | 37.1 | % |
| Total other sales and revenues | | | 68.2 | | | | 62.5 | | | | 9.2 | % |
| Net sales and operating revenues | | $ | 2,679.4 | | | $ | 2,261.9 | | | | 18.5 | % |
(1) Percent calculations and amounts shown are based on amounts presented on the attached consolidated statements of earnings and may not sum due to rounding.
Retail Vehicle Sales Changes
| | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | |
| Comparable store vehicle sales: | | | | | | |
Used vehicle units | | | 6 | % | | | 9 | % |
New vehicle units | | | 14 | % | | | 5 | % |
Total | | | 6 | % | | | 8 | % |
| | | | | | | | | |
Used vehicle dollars | | | 11 | % | | | 18 | % |
New vehicle dollars | | | 22 | % | | | 5 | % |
Total | | | 12 | % | | | 18 | % |
| | | | | | | | | |
| Total vehicle sales: | | | | | | | | |
Used vehicle units | | | 8 | % | | | 9 | % |
New vehicle units | | | 14 | % | | | 5 | % |
Total | | | 8 | % | | | 9 | % |
| | | | | | | | | |
Used vehicle dollars | | | 13 | % | | | 18 | % |
New vehicle dollars �� | | | 22 | % | | | 5 | % |
Total | | | 13 | % | | | 18 | % |
Unit Sales
| | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | |
| Used vehicles | | | 108,511 | | | | 100,925 | |
| New vehicles | | | 2,435 | | | | 2,134 | |
| Wholesale vehicles | | | 85,062 | | | | 64,359 | |
Average Selling Prices
| | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | |
| Used vehicles | | $ | 18,902 | | | $ | 17,964 | |
| New vehicles | | $ | 25,288 | | | $ | 23,721 | |
| Wholesale vehicles | | $ | 5,469 | | | $ | 4,786 | |
Selected Operating Ratios
| (In millions) | | Three Months Ended May 31 | |
| | | 2011 | | | | % | (1) | | | 2010 | | | | % | (1) |
| Net sales and operating revenues | | $ | 2,679.4 | | | | 100.0 | % | | $ | 2,261.9 | | | | 100.0 | % |
| Gross profit | | $ | 383.1 | | | | 14.3 | % | | $ | 333.5 | | | | 14.7 | % |
| CarMax Auto Finance income | | $ | 69.7 | | | | 2.6 | % | | $ | 57.5 | | | | 2.5 | % |
| Selling, general and administrative expenses | | $ | 248.2 | | | | 9.3 | % | | $ | 226.7 | | | | 10.0 | % |
Operating profit (EBIT) (2) | | $ | 204.6 | | | | 7.6 | % | | $ | 164.4 | | | | 7.3 | % |
| Net earnings | | $ | 126.3 | | | | 4.7 | % | | $ | 101.1 | | | | 4.5 | % |
(1) Calculated as the ratio of the applicable amount to net sales and operating revenues.
(2) Equals earnings before interest and income taxes.
Gross Profit
| (In millions) | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | | | Change | |
| Used vehicle gross profit | | $ | 241.3 | | | $ | 223.2 | | | | 8.1 | % |
| New vehicle gross profit | | | 1.4 | | | | 1.5 | | | | (6.6 | )% |
| Wholesale vehicle gross profit | | | 86.2 | | | | 60.7 | | | | 42.1 | % |
| Other gross profit | | | 54.2 | | | | 48.1 | | | | 12.6 | % |
| Total gross profit | | $ | 383.1 | | | $ | 333.5 | | | | 14.9 | % |
Gross Profit per Unit
| | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | |
| | | $/unit (1) | | | | % | (2) | | $/unit (1) | | | | % | (2) |
| Used vehicle gross profit | | $ | 2,224 | | | | 11.6 | % | | $ | 2,212 | | | | 12.2 | % |
| New vehicle gross profit | | $ | 593 | | | | 2.3 | % | | $ | 724 | | | | 3.0 | % |
| Wholesale vehicle gross profit | | $ | 1,013 | | | | 18.0 | % | | $ | 942 | | | | 19.2 | % |
| Other gross profit | | $ | 488 | | | | 79.5 | % | | $ | 467 | | | | 77.0 | % |
| Total gross profit | | $ | 3,453 | | | | 14.3 | % | | $ | 3,236 | | | | 14.7 | % |
| (1) | Calculated as category gross profit divided by its respective units sold, except the other and the total categories, which are divided by total retail units sold. |
| (2) | Calculated as a percentage of its respective sales or revenue. |
Components of CAF Income and Other CAF Information
| (in millions) | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | |
| | | $ | | | | %(1) | | | $ | | | | %(1) | |
| Interest and fee income | | $ | 107.9 | | | | 9.8 | | | $ | 99.8 | | | | 9.7 | |
| Interest expense | | | (28.5 | ) | | | (2.6 | ) | | | (35.2 | ) | | | (3.4 | ) |
| Interest margin | | | 79.4 | | | | 7.2 | | | | 64.6 | | | | 6.3 | |
| Provision for loan losses | | | 1.0 | | | | 0.1 | | | | (0.9 | ) | | | (0.1 | ) |
| Interest margin after provision for loan losses | | | 80.4 | | | | 7.3 | | | | 63.7 | | | | 6.2 | |
Other gain (2) | | | 0.7 | | | | 0.1 | | | | 5.1 | | | | 0.5 | |
| Direct CAF expenses | | | ( 11.4 | ) | | | (1.0 | ) | | | (11.3 | ) | | | (1.1 | ) |
| CarMax Auto Finance income | | $ | 69.7 | | | | 6.4 | | | $ | 57.5 | | | | 5.6 | |
| | | | | | | | | | | | | | | | | |
| Total average managed receivables, principal only | | $ | 4,387.8 | | | | | | | $ | 4,123.0 | | | | | |
| Net loans originated | | $ | 689.3 | | | | | | | $ | 517.2 | | | | | |
| | | | | | | | | | | | | | | | | |
| Allowance for loan losses, end of period | | $ | 34.3 | | | | | | | $ | 50.4 | | | | | |
| | | | | | | | | | | | | | | | | |
| Ending receivables funded in the warehouse facilities | | $ | 924.0 | | | | | | | $ | 795.0 | | | | | |
| Ending unused warehouse facility capacity | | $ | 676.0 | | | | | | | $ | 405.0 | | | | | |
| (1) | Annualized percent of total average managed receivables. |
| (2) | The 2010 amount includes $2.5 million of service fee income and interest income on retained interest in securitized receivables that previously was reported separately. |
Earnings Highlights
| (In millions except per share data) | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | | | Change | |
| Net earnings | | $ | 126.3 | | | $ | 101.1 | | | | 24.9 | % |
| Diluted weighted average shares outstanding | | | 230.3 | | | | 226.2 | | | | 1.8 | % |
| Net earnings per share | | $ | 0.55 | | | $ | 0.44 | | | | 25.0 | % |
Planned Store Openings
We currently plan to open the following superstores within 12 months from May 31, 2011:
Location | Television Market | Market Status | Planned Opening Date |
| Escondido, California | San Diego | Existing | Q2 Fiscal 2012 |
| North Attleborough, Massachusetts | Providence | New | Q3 Fiscal 2012 |
| Chattanooga, Tennessee | Chattanooga | New | Q4 Fiscal 2012 |
| Bakersfield, California | Bakersfield | New | Q1 Fiscal 2013 |
| Lancaster, Pennsylvania | Harrisburg | New | Q1 Fiscal 2013 |
| Nashville, Tennessee | Nashville | Existing | Q1 Fiscal 2013 |
We expect to open between eight and ten stores in the fiscal year ending February 28, 2013.
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, June 22, 2011. Domestic investors may access the call at 1-888-298-3261 (international callers dial 1-706-679-7457). The conference I.D. for both domestic and international callers is 97137502. A live webcast of the call will be available on our investor information home page at investor.carmax.com and at www.streetevents.com.
A webcast replay of the call will be available at investor.carmax.com beginning at approximately 1:00 p.m. ET on June 22, 2011, through September 21, 2011. A telephone replay also will be available through June 29, 2011, and may be accessed by dialing 1-800-642-1687 (international callers dial 1-706-645-9291). The conference I.D. for both domestic and international callers is 97137502.
Second Quarter Fiscal 2012 Earnings Release Date
We currently plan to release second quarter results on Thursday, September 22, 2011, before the opening of the New York Stock Exchange. We will 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 investor.carmax.com in early September.
About CarMax
CarMax, a member of the Fortune 500 and the S&P 500, and one of the Fortune 2011 “100 Best Companies to Work For,” is the nation’s largest retailer of used cars. Headquartered in Richmond, Va., we currently operate 105 used car superstores in 51 markets. The CarMax consumer offer is structured around four customer benefits: low, no-haggle prices; a broad selection; high quality vehicles; and customer-friendly service. During the fiscal year ended February 28, 2011, we retailed 396,181 used vehicles and sold 263,061 wholesale vehicles at our in-store auctions. For more information, access the CarMax website at www.carmax.com.
Forward-Looking Statements
We caution readers that the statements contained in this release about our future business plans, operations, opportunities or prospects, including without limitation any statements or factors regarding expected sales, margins or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon management’s current knowledge and assumptions about future events 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 general or regional U.S. economic conditions. |
| · | Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market. |
| · | Changes in consumer credit availability related to our third-party financing providers. |
| · | Changes in the competitive landscape within our industry. |
| · | Significant changes in retail prices for used and new vehicles. |
| · | A reduction in the availability of or access to sources of inventory. |
| · | Factors related to the regulatory and legislative environment in which we operate. |
| · | Factors related to geographic growth, including the inability to acquire or lease suitable real estate at favorable terms or to effectively manage our growth. |
| · | The loss of key employees from our store, regional or corporate management teams. |
| · | The failure of key information systems. |
| · | The effect of new accounting requirements or changes to U.S. generally accepted accounting principles. |
| · | Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer information. |
| · | The effect of various litigation matters. |
| · | Adverse conditions affecting one or more automotive manufacturers. |
| · | The occurrence of severe weather events. |
| · | Factors related to the seasonal fluctuations in our business. |
| · | Factors related to the geographic concentration of our superstores. |
| · | The occurrence of certain other material events. |
For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2011, and our quarterly or current reports as filed with or furnished to the Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investor.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling 1-804-747-0422 ext. 4287. We disclaim any intent or obligation to update our forward-looking statements.
Contacts:
Investors and Financial Media:
Katharine Kenny, Vice President, Investor Relations, (804) 935-4591
Celeste Gunter, Manager, Investor Relations, (804) 935-4597
General Media:
Laura Donahue, Vice President, Public Affairs, (804) 747-0422, ext. 4434
Trina Lee, Director, Public Relations (804) 747-0422, ext. 4197
CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(In thousands except per share data)
| | | Three Months Ended May 31 | |
| | | 2011 | | | | % | (1) | | | 2010 | | | | % | (1) |
| | | | | | | | | | | | | | | | |
| Sales and operating revenues: | | | | | | | | | | | | | | | |
| Used vehicle sales | | $ | 2,071,540 | | | | 77.3 | | | $ | 1,832,066 | | | | 81.0 | |
| New vehicle sales | | | 61,886 | | | | 2.3 | | | | 50,898 | | | | 2.3 | |
| Wholesale vehicle sales | | | 477,794 | | | | 17.8 | | | | 316,489 | | | | 14.0 | |
| Other sales and revenues | | | 68,197 | | | | 2.5 | | | | 62,459 | | | | 2.8 | |
| Net sales and operating revenues | | | 2,679,417 | | | | 100.0 | | | | 2,261,912 | | | | 100.0 | |
| Cost of sales | | | 2,296,322 | | | | 85.7 | | | | 1,928,364 | | | | 85.3 | |
| Gross profit | | | 383,095 | | | | 14.3 | | | | 333,548 | | | | 14.7 | |
| CarMax Auto Finance income | | | 69,661 | | | | 2.6 | | | | 57,495 | | | | 2.5 | |
| Selling, general and administrative expenses | | | 248,205 | | | | 9.3 | | | | 226,692 | | | | 10.0 | |
| Interest expense | | | 791 | | | | -- | | | | 72 | | | | -- | |
| Interest income | | | 103 | | | | -- | | | | 80 | | | | -- | |
| Earnings before income taxes | | | 203,863 | | | | 7.6 | | | | 164,359 | | | | 7.3 | |
| Income tax provision | | | 77,575 | | | | 2.9 | | | | 63,240 | | | | 2.8 | |
| Net earnings | | $ | 126,288 | | | | 4.7 | | | $ | 101,119 | | | | 4.5 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares: | | | | | | | | | | | | | | | | |
| Basic | | | 225,570 | | | | | | | | 222,221 | | | | | |
| Diluted | | | 230,278 | | | | �� | | | | 226,179 | | | | | |
| | | | | | | | | | | | | | | | | |
| Net earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.56 | | | | | | | $ | 0.45 | | | | | |
| Diluted | | $ | 0.55 | | | | | | | $ | 0.44 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(1) Calculated as a percentage of net sales and operating revenues and sums may not equal totals due to rounding. | |
| | |
| | |
| | | | | | | | | | | | | | | | | |
CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands)
| | | May 31, 2011 | | | May 31, 2010 | | | Feb. 28, 2011 | |
| ASSETS | | | | | | | | | |
| Current assets: | | | | | | | | | |
| Cash and cash equivalents | | $ | 156,003 | | | $ | 13,708 | | | $ | 41,121 | |
| Restricted cash from collections on auto loan receivables | | | 170,096 | | | | 147,016 | | | | 161,052 | |
| Accounts receivable, net | | | 85,058 | | | | 84,898 | | | | 119,597 | |
| Inventory | | | 1,116,341 | | | | 894,665 | | | | 1,049,477 | |
| Deferred income taxes | | | 4,268 | | | | 7,841 | | | | 5,191 | |
| Other current assets | | | 9,187 | | | | 7,630 | | | | 33,660 | |
| | | | | | | | | | | | | |
| Total current assets | | | 1,540,953 | | | | 1,155,758 | | | | 1,410,098 | |
| | | | | | | | | | | | | |
| Auto loan receivables, net | | | 4,483,612 | | | | 4,136,479 | | | | 4,320,575 | |
| Property and equipment, net | | | 949,623 | | | | 886,652 | | | | 920,045 | |
| Deferred income taxes | | | 86,593 | | | | 95,210 | | | | 92,278 | |
| Other assets | | | 99,250 | | | | 97,851 | | | | 96,913 | |
| | | | | | | | | | | | | |
| TOTAL ASSETS | | $ | 7,160,031 | | | $ | 6,371,950 | | | $ | 6,839,909 | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | |
| Accounts payable | | $ | 288,073 | | | $ | 251,162 | | | $ | 269,763 | |
| Accrued expenses and other current liabilities | | | 93,785 | | | | 87,872 | | | | 103,389 | |
| Accrued income taxes | | | 38,236 | | | | 51,637 | | | | 772 | |
| Short-term debt | | | 1,172 | | | | 153 | | | | 1,002 | |
| Current portion of long-term debt | | | 812 | | | | 59,137 | | | | 772 | |
| Current portion of non-recourse notes payable | | | 140,940 | | | | 118,485 | | | | 132,519 | |
| | | | | | | | | | | | | |
| Total current liabilities | | | 563,018 | | | | 568,446 | | | | 508,217 | |
| | | | | | | | | | | | | |
| Long-term debt, excluding current portion | | | 28,125 | | | | 27,180 | | | | 28,350 | |
| Non-recourse notes payable | | | 4,001,122 | | | | 3,699,864 | | | | 3,881,142 | |
| Other liabilities | | | 137,340 | | | | 118,173 | | | | 130,570 | |
| | | | | | | | | | | | | |
| TOTAL LIABILITIES | | | 4,729,605 | | | | 4,413,663 | | | | 4,548,279 | |
| | | | | | | | | | | | | |
| TOTAL SHAREHOLDERS’ EQUITY | | | 2,430,426 | | | | 1,958,287 | | | | 2,291,630 | |
| | | | | | | | | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 7,160,031 | | | $ | 6,371,950 | | | $ | 6,839,909 | |
| | | | | | | | | | | | | |
| | |
CarMax, Inc.
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CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
| | | Three Months Ended May 31 | |
| | | 2011 | | | 2010 | |
| | | | | | | |
Operating Activities: | | | | | | |
| Net earnings | | $ | 126,288 | | | $ | 101,119 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 15,404 | | | | 14,432 | |
Share-based compensation expense | | | 15,010 | | | | 13,461 | |
Provision for loan losses | | | (1,047 | ) | | | 880 | |
Loss on disposition of assets | | | 191 | | | | 303 | |
Deferred income tax provision | | | 8,838 | | | | 15,144 | |
Net decrease (increase) in: | | | | | | | | |
Accounts receivable, net | | | 34,539 | | | | (5,839 | ) |
Retained interest in securitized receivables | | | -- | | | | 43,746 | |
Inventory | | | (66,864 | ) | | | (51,532 | ) |
Other current assets | | | 24,128 | | | | (613 | ) |
Auto loan receivables, net | | | (161,990 | ) | | | (93,764 | ) |
Other assets | | | (2,948 | ) | | | (2,827 | ) |
Net increase (decrease) in: | | | | | | | | |
Accounts payable, accrued expenses and other current liabilities and accrued income taxes | | | 27,109 | | | | 24,149 | |
Other liabilities | | | 3,434 | | | | (3,051 | ) |
| Net cash provided by operating activities | | | 22,092 | | | | 55,608 | |
| | | | | | | | | |
Investing Activities: | | | | | | | | |
| Capital expenditures | | | (31,046 | ) | | | (9,154 | ) |
(Increase) decrease in restricted cash from collections on auto loan receivables | | | (9,044 | ) | | | 15,592 | |
| Increase in restricted cash in reserve accounts | | | (2,582 | ) | | | (6,647 | ) |
| Release of restricted cash from reserve accounts | | | 3,193 | | | | 4,549 | |
| Sales of money market securities, net | | | -- | | | | 1 | |
| Net cash (used in) provided by investing activities | | | (39,479 | ) | | | 4,341 | |
| | | | | | | | | |
Financing Activities: | | | | | | | | |
| Increase (decrease) in short-term debt, net | | | 170 | | | | (730 | ) |
| Issuances of long-term debt | | | -- | | | | 151,300 | |
| Payments on long-term debt | | | (185 | ) | | | (214,671 | ) |
| Issuances of non-recourse notes payable | | | 1,234,000 | | | | 748,000 | |
| Payments on non-recourse notes payable | | | (1,105,599 | ) | | | (756,061 | ) |
| Equity issuances, net | | | (2,132 | ) | | | 5,355 | |
| Excess tax benefits from share-based payment arrangements | | | 6,015 | | | | 2,288 | |
| Net cash provided by (used in) financing activities | | | 132,269 | | | | (64,519 | ) |
| | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | | 114,882 | | | | (4,570 | ) |
| Cash and cash equivalents at beginning of year | | | 41,121 | | | | 18,278 | |
| Cash and cash equivalents at end of period | | $ | 156,003 | | | $ | 13,708 | |
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