CARMAX REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
Increases Share Repurchase Authorization by $1 Billion
Richmond, Va., April 4, 2014 – CarMax, Inc. (NYSE:KMX) today reported results for the fourth quarter and fiscal year ended February 28, 2014.
| § | | Net sales and operating revenues increased 9% to $3.08 billion in the fourth quarter. For the fiscal year, net sales and operating revenues increased 15% to $12.57 billion. |
| § | | Used unit sales in comparable stores increased 7% in the fourth quarter and 12% in the fiscal year. |
| § | | Total used unit sales rose 12% in the fourth quarter and 18% in the fiscal year. |
| § | | Our data indicates that in our markets, we increased our share of the 0-10 year old used car market by approximately 17% in fiscal 2014. |
| § | | Total wholesale unit sales increased 2% in the fourth quarter and 5% in the fiscal year. |
| § | | CarMax Auto Finance (CAF) income increased 6% to $80.8 million in the fourth quarter. For the fiscal year, CAF income rose 12% to $336.2 million. |
| § | | Net earnings declined 7% to $99.2 million in the fourth quarter. For the fiscal year, net earnings increased 13% to $492.6 million. Net earnings per diluted share fell 4% to $0.44 per share in the fourth quarter and increased 16% to $2.16 per share for the fiscal year. |
| o | | During the fourth quarter, we corrected our accounting related to cancellation reserves for extended service plan (ESP) and guaranteed asset protection (GAP) products. As a result, we increased the cancellation reserves, which reduced diluted net earnings per share by $0.08 in the fourth quarter of fiscal 2014. Of this amount, $0.01 per share related to activity in the fourth quarter of fiscal 2014, $0.02 per share to earlier quarters in fiscal 2014 and $0.05 per share to fiscal 2013 and fiscal 2012. |
In addition to reporting results, CarMax announced that its Board of Directors has approved a $1 billion expansion of the company’s share repurchase program. This authorization expires December 31, 2015.
“We had another great year, achieving several new milestones” said Tom Folliard, president and chief executive officer. “Our comparable store used unit sales growth of 12% was our strongest since fiscal 2002, and for the first time, we retailed more than 500,000 vehicles in a single year. CAF continued to support our sales and earnings in fiscal 2014, managing a loan portfolio that now tops $7 billion. While the accounting correction related to ESP and GAP reserves had an impact on the fourth quarter, we posted solid earnings growth in fiscal 2014, and we believe our continued geographic expansion and market share growth will drive our success in the years to come. The expansion of our share repurchase program reflects our confidence in the business and our ability to deliver on our growth plans, as well as an ongoing commitment to shareholder value.”
Fourth Quarter Business Performance Review
Sales. Used vehicle sales growth remained strong, with total used vehicle unit sales climbing 12% and comparable store used units up 7% versus the prior year’s fourth quarter. Comparable store used unit sales benefited from improved execution in our stores, as well as a modest increase in store traffic. Sales financed by third-party subprime providers (those who purchase financings at a discount) remained flat at 17% of used vehicle unit sales in the fourth quarter of both fiscal 2014 and 2013.
Our data indicates that in our markets, we increased our share of the 0- to 10-year old used vehicle market by approximately 17% in fiscal 2014.
Wholesale vehicle unit sales grew 2% compared with last year’s quarter. Other sales and revenues declined 35% year-over-year as a result of the correction of the accounting related to ESP and GAP cancellation reserves, which more than offset growth in ESP revenues resulting from our increase in used unit sales and a higher ESP penetration rate.
Gross Profit. Total gross profit increased 4% to $384.1 million. Used vehicle gross profit rose 12%, driven by the increase in total used unit sales. Used vehicle gross profit per unit remained stable at $2,141 in the fourth quarter of both fiscal 2014 and fiscal 2013. Wholesale vehicle gross profit declined 1%, as the 2% increase in wholesale unit sales was offset by a decrease in wholesale vehicle gross profit per unit, which declined $32 to $953. Other gross profit fell 41% due to the correction of the accounting related to ESP and GAP cancellation reserves.
SG&A. Selling, general and administrative expenses increased 12% to $297.5 million. The increase primarily reflected both the 13% increase in our store base since the beginning of last year’s fourth quarter (representing the addition of 15 stores) and higher variable selling costs resulting from our 7% increase in comparable store used unit sales. SG&A per retail unit declined $3 to $2,209 in the fourth quarter. For the fiscal year, SG&A per retail unit declined $102 to $2,161.
CarMax Auto Finance.(1) CAF income increased 6% to $80.8 million, driven by an increase in auto loan receivables, largely offset by a lower total interest margin. Average managed receivables grew 23% to $7.04 billion, as CAF loan originations have grown in recent years. The total interest margin, which reflects the spread between interest and fees charged to consumers and our funding costs, declined to 6.6% of average managed receivables in the current quarter from 7.2% in last year’s fourth quarter.
In January 2014, CAF launched its previously announced test originating loans for customers who typically would be financed by our third-party subprime providers. We plan to originate approximately $70 million of loans in this test, of which $9.1 million was originated in the fourth quarter of fiscal 2014.
(1) Although CAF benefits from certain indirect overhead expenditures, we have elected not to allocate indirect costs to CAF in order to avoid making arbitrary allocation decisions.
Superstore Openings. During the fourth quarter of fiscal 2014, we opened five stores, including two in Philadelphia, which is a new market for CarMax. We also added stores in the St. Louis; Baltimore/Washington, D.C.; and Sacramento markets. In total, we opened 13 stores in fiscal 2014, bringing our used car superstore count to 131 as of February 28, 2014. Subsequent to the end of the quarter, we opened stores in Rochester, New York, and Dothan, Alabama.
Share Repurchase Program. During the fourth quarter of fiscal 2014, we repurchased 2.6 million shares of common stock for $117.9 million pursuant to our share repurchase program. For the fiscal year, we repurchased 6.9 million shares at a cost of $306.0 million.
Our Board of Directors approved a $1 billion expansion of our share repurchase program, which will expire on December 31, 2015. The new authorization is in addition to the $800 million of repurchases previously authorized by the Board, of which $282.1 million remained available as of February 28, 2014.
Purchases under the repurchase program may be made in open market or privately negotiated transactions and are expected to comply with Securities and Exchange Commission Rule 10b-18. Purchases will be made from time to time at CarMax’s discretion and the timing and amount of any share repurchases will be determined based on share price, market conditions, legal requirements and other factors. The share repurchase program does not obligate CarMax to acquire any particular amount of common stock, and it may be suspended or discontinued at any time. Any shares repurchased under the program will be deemed authorized but unissued shares of common stock.
ESP and GAP Accounting Correction
During the fourth quarter of fiscal 2014, we corrected our accounting related to ESP and GAP cancellation reserves. As a result, we increased the cancellation reserve, which reduced fourth quarter other sales and revenues and gross profit by $31.7 million and diluted net earnings per share by $0.08.
The correction related to cancellation reserve activity in fiscal 2014, fiscal 2013 and fiscal 2012. The portion related to the fourth quarter of fiscal 2014 was $0.01 per share, the portion related to earlier quarters of fiscal 2014 was $0.02 per share, and the portion related to fiscal 2013 and fiscal 2012 was $0.05 per share.
Supplemental Financial Information
Amounts and percentage calculations may not total due to rounding.
Sales Components
| | | | | | | | | | | | | | | | | |
| | Three Months Ended | Years Ended |
| | February 28 (1) | February 28 (1) |
(In millions) | | 2014 | 2013 | Change | 2014 | 2013 | Change |
Used vehicle sales | | $ | 2,568.1 | | $ | 2,297.4 | | 11.8 | % | $ | 10,306.3 | | $ | 8,747.0 | | 17.8 | % |
New vehicle sales | | | 49.5 | | | 45.2 | | 9.6 | % | | 212.0 | | | 207.7 | | 2.1 | % |
Wholesale vehicle sales | | | 420.6 | | | 427.1 | | (1.5) | % | | 1,823.4 | | | 1,759.6 | | 3.6 | % |
Other sales and revenues: | | | | | | | | | | | | | | | | | |
Extended service plan revenues | | | 30.5 | | | 50.1 | | (39.1) | % | | 208.9 | | | 202.9 | | 3.0 | % |
Service department sales | | | 25.6 | | | 25.4 | | 1.1 | % | | 106.4 | | | 101.8 | | 4.6 | % |
Third-party finance fees, net | | | (18.1) | | | (17.1) | | (5.7) | % | | (82.8) | | | (56.1) | | (47.6) | % |
Total other sales and revenues | | | 38.0 | | | 58.4 | | (34.8) | % | | 232.6 | | | 248.6 | | (6.4) | % |
Total net sales and operating revenues | | $ | 3,076.3 | | $ | 2,827.9 | | 8.8 | % | $ | 12,574.3 | | $ | 10,962.8 | | 14.7 | % |
(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.
Comparable Store Used Vehicle Sales Changes (1)
| | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
| 2014 | 2013 | 2014 | 2013 |
Used vehicle units | | 7 | % | | 6 | % | | 12 | % | | 5 | % |
Used vehicle dollars | | 6 | % | | 10 | % | | 12 | % | | 7 | % |
(1)As of February 28, 2014 and 2013, the number of stores included in the comparable store base were 117 and 107 respectively.
Total Used Vehicle Sales Changes
| | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
| 2014 | 2013 | 2014 | 2013 |
Used vehicle units | | 12 | % | | 12 | % | | 18 | % | | 10 | % |
Used vehicle dollars | | 12 | % | | 16 | % | | 18 | % | | 12 | % |
Unit Sales
| | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
| 2014 | 2013 | 2014 | 2013 |
Used vehicles | | 132,856 | | | 118,306 | | | 526,929 | | | 447,728 | |
New vehicles | | 1,807 | | | 1,691 | | | 7,761 | | | 7,855 | |
Wholesale vehicles | | 80,234 | | | 78,720 | | | 342,576 | | | 324,779 | |
Average Selling Prices
| | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
| 2014 | 2013 | 2014 | 2013 |
Used vehicles | $ | 19,193 | | $ | 19,287 | | $ | 19,408 | | $ | 19,351 | |
New vehicles | $ | 27,302 | | $ | 26,591 | | $ | 27,205 | | $ | 26,316 | |
Wholesale vehicles | $ | 5,079 | | $ | 5,271 | | $ | 5,160 | | $ | 5,268 | |
Selected Operating Ratios
| | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
(In millions) | 2014 | % (1) | 2013 | % (1) | 2014 | % (1) | 2013 | % (1) |
Net sales and operating revenues | $ | 3,076.3 | | 100.0 | | $ | 2,827.9 | | 100.0 | | $ | 12,574.3 | | 100.0 | | $ | 10,962.8 | | 100.0 | |
Gross profit | $ | 384.1 | | 12.5 | | $ | 369.2 | | 13.1 | | $ | 1,648.7 | | 13.1 | | $ | 1,464.4 | | 13.4 | |
CarMax Auto Finance income | $ | 80.8 | | 2.6 | | $ | 76.0 | | 2.7 | | $ | 336.2 | | 2.7 | | $ | 299.3 | | 2.7 | |
Selling, general, and administrative | | | | | | | | | | | | | | | | | | | | |
expenses | $ | 297.5 | | 9.7 | | $ | 265.5 | | 9.4 | | $ | 1,155.2 | | 9.2 | | $ | 1,031.0 | | 9.4 | |
Interest expense | $ | 7.5 | | 0.2 | | $ | 8.0 | | 0.3 | | $ | 30.8 | | 0.2 | | $ | 32.4 | | 0.3 | |
Earnings before income taxes | $ | 159.7 | | 5.2 | | $ | 172.2 | | 6.1 | | $ | 797.3 | | 6.3 | | $ | 701.4 | | 6.4 | |
Net earnings | $ | 99.2 | | 3.2 | | $ | 107.2 | | 3.8 | | $ | 492.6 | | 3.9 | | $ | 434.3 | | 4.0 | |
(1)Calculated as the ratio of the applicable amount to net sales and operating revenues.
Gross Profit
| | | | | | | | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
(In millions) | 2014 | 2013 | Change | 2014 | 2013 | Change |
Used vehicle gross profit | $ | 284.4 | | $ | 253.3 | | | 12.3 | % | $ | 1,143.9 | | $ | 971.5 | | | 17.7 | % |
New vehicle gross profit | | 1.0 | | | 0.9 | | | 16.8 | % | | 4.5 | | | 5.0 | | | (9.5) | % |
Wholesale vehicle gross profit | | 76.5 | | | 77.6 | | | (1.4) | % | | 313.9 | | | 308.1 | | | 1.9 | % |
Other gross profit | | 22.2 | | | 37.4 | | | (40.8) | % | | 186.5 | | | 179.8 | | | 3.7 | % |
Total | $ | 384.1 | | $ | 369.2 | | | 4.0 | % | $ | 1,648.7 | | $ | 1,464.4 | | | 12.6 | % |
Gross Profit per Unit
| | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
| 2014 | 2013 | 2014 | 2013 |
| $ per unit(1) | %(2) | | $ per unit(1) | %(2) | | $ per unit(1) | %(2) | | $ per unit(1) | %(2) | |
Used vehicle gross profit | $ | 2,141 | | 11.1 | | $ | 2,141 | | 11.0 | | $ | 2,171 | | 11.1 | | $ | 2,170 | | 11.1 | |
New vehicle gross profit | $ | 574 | | 2.1 | | $ | 525 | | 2.0 | | $ | 577 | | 2.1 | | $ | 630 | | 2.4 | |
Wholesale vehicle gross profit | $ | 953 | | 18.2 | | $ | 985 | | 18.2 | | $ | 916 | | 17.2 | | $ | 949 | | 17.5 | |
Other gross profit | $ | 165 | | 58.3 | | $ | 312 | | 64.2 | | $ | 349 | | 80.2 | | $ | 395 | | 72.3 | |
Total gross profit | $ | 2,853 | | 12.5 | | $ | 3,077 | | 13.1 | | $ | 3,083 | | 13.1 | | $ | 3,214 | | 13.4 | |
(1)Calculated as category gross profit divided by its respective units sold, except the other and total categories, which are divided by total retail units sold.
(2)Calculated as a percentage of its respective sales or revenue.
SG&A Expenses
| | | | | | | | | | | | | | | | |
| Three Months Ended | | | Years Ended |
| February 28 | | | February 28 |
(In millions) | 2014 | 2013 | Change | 2014 | 2013 | Change |
Compensation and benefits (1) | $ | 162.2 | | $ | 154.8 | | 4.8 | % | $ | 656.7 | | $ | 581.9 | | 12.9 | % |
Store occupancy costs | | 55.9 | | | 50.1 | | 11.6 | % | | 216.8 | | | 199.9 | | 8.5 | % |
Advertising expense | | 35.3 | | | 29.6 | | 19.3 | % | | 112.2 | | | 106.3 | | 5.6 | % |
Other overhead costs (2) | | 44.1 | | | 31.0 | | 42.3 | % | | 169.5 | | | 142.9 | | 18.6 | % |
Total SG&A expenses | $ | 297.5 | | $ | 265.5 | | 12.1 | % | $ | 1,155.2 | | $ | 1,031.0 | | 12.0 | % |
SG&A per unit | $ | 2,209 | | $ | 2,212 | $ | (3) | | $ | 2,161 | | $ | 2,263 | $ | (102) | |
(1)Excludes compensation and benefits related to reconditioning and vehicle repair service, which is included in cost of sales.
(2)Includes IT expenses, insurance, non-CAF bad debt, travel, preopening and relocation costs, charitable contributions and other administrative expenses.
Components of CAF Income and Other CAF Information
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended February 28 | Years Ended February 28 |
(In millions) | | | 2014 | | % (1) | | | 2013 | | % (1) | | | 2014 | | % (1) | | | 2013 | | % (1) | |
Interest margin: | | | | | | | | | | | | | | | | | | | | | |
Interest and fee income | | $ | 139.1 | | 7.9 | | $ | 126.4 | | 8.8 | | $ | 548.0 | | 8.3 | | $ | 495.3 | | 9.2 | |
Interest expense | | | (22.4) | | (1.3) | | | (22.7) | | (1.6) | | | (90.0) | | (1.4) | | | (95.1) | | (1.8) | |
Total interest margin | | | 116.7 | | 6.6 | | | 103.7 | | 7.2 | | | 458.0 | | 6.9 | | | 400.2 | | 7.4 | |
Provision for loan losses | | | (23.2) | | (1.3) | | | (16.0) | | (1.1) | | | (72.2) | | (1.1) | | | (56.2) | | (1.0) | |
Total interest margin after | | | | | | | | | | | | | | | | | | | | | |
provision for loan losses | | | 93.4 | | 5.3 | | | 87.7 | | 6.1 | | | 385.8 | | 5.8 | | | 344.0 | | 6.4 | |
| | | | | | | | | | | | | | | | | | | | | |
Other income | | | ― | | ― | | | ― | | ― | | | 0.1 | | ― | | | ― | | ― | |
Total direct expenses | | | (12.6) | | (0.7) | | | (11.7) | | (0.8) | | | (49.7) | | (0.8) | | | (44.7) | | (0.8) | |
CarMax Auto Finance income | | $ | 80.8 | | 4.6 | | $ | 76.0 | | 5.3 | | $ | 336.2 | | 5.1 | | $ | 299.3 | | 5.6 | |
| | | | | | | | | | | | | | | | | | | | | |
Total average managed | | | | | | | | | | | | | | | | | | | | | |
receivables | | $ | 7,043.7 | | | | $ | 5,744.3 | | | | $ | 6,629.5 | | | | $ | 5,385.5 | | | |
Net loans originated | | $ | 1,015.1 | | | | $ | 979.9 | | | | $ | 4,183.9 | | | | $ | 3,445.3 | | | |
Net CAF penetration rate | | | 40.1 | % | | | | 42.6 | % | | | | 40.9 | % | | | | 39.4 | % | | |
Weighted average contract rate | | | 7.2 | % | | | | 7.1 | % | | | | 7.0 | % | | | | 7.9 | % | | |
| | | | | | | | | | | | | | | | | | | | | |
Ending allowance for loan | | | | | | | | | | | | | | | | | | | | | |
losses | | $ | 69.9 | | | | $ | 57.3 | | | | $ | 69.9 | | | | $ | 57.3 | | | |
| | | | | | | | | | | | | | | | | | | | | |
Warehouse facility information: | | | | | | | | | | | | | | | | | | | | | |
Ending funded receivables | | $ | 879.0 | | | | $ | 792.0 | | | | $ | 879.0 | | | | $ | 792.0 | | | |
Ending unused capacity | | $ | 921.0 | | | | $ | 908.0 | | | | $ | 921.0 | | | | $ | 908.0 | | | |
| | | | | | | | | | | | | | | | | | | | | |
(1)Annualized percent of total average managed receivables.
Earnings Highlights
| | | | | | | | | | | | | | | | | | |
| Three Months Ended | Years Ended |
| February 28 | February 28 |
(In millions except per share data) | 2014 | 2013 | Change | 2014 | 2013 | Change |
Net earnings | $ | 99.2 | | $ | 107.2 | | | (7.5) | % | $ | 492.6 | | $ | 434.3 | | | 13.4 | % |
Diluted weighted average shares outstanding | | 226.7 | | | 231.1 | | | (1.9) | % | | 227.6 | | | 231.8 | | | (1.8) | % |
Net earnings per diluted share | $ | 0.44 | | $ | 0.46 | | | (4.3) | % | $ | 2.16 | | $ | 1.87 | | | 15.5 | % |
Planned Superstore Openings
We currently plan to open 13 used car superstores in the fiscal year ending February 28, 2015, as well as between 10 and 15 superstores in each of the following two fiscal years. Planned fiscal 2015 openings are as follows:
| | | |
| | | |
Location | Television Market | Market Status | Planned Opening Date |
Rochester, New York (1) | Rochester | New | Q1 Fiscal 2015 |
Dothan, Alabama (1) | Dothan | New | Q1 Fiscal 2015 |
Mechanicsburg, Pennsylvania | Harrisburg/Lancaster | Existing | Q1 Fiscal 2015 |
Spokane Valley, Washington | Spokane | New | Q1 Fiscal 2015 |
Madison, Wisconsin | Madison | New | Q2 Fiscal 2015 |
Fort Worth, Texas | Dallas | Existing | Q2 Fiscal 2015 |
Lynchburg, Virginia | Roanoke/Lynchburg | New | Q2 Fiscal 2015 |
Milwaukie, Oregon | Portland | New | Q2 Fiscal 2015 |
Beaverton, Oregon | Portland | New | Q3 Fiscal 2015 |
Saltillo, Mississippi | Tupelo | New | Q3 Fiscal 2015 |
Reno, Nevada | Reno | New | Q3 Fiscal 2015 |
Raleigh, North Carolina | Raleigh | Existing | Q3 Fiscal 2015 |
Warrensville Heights, Ohio | Cleveland | New | Q4 Fiscal 2015 |
| | | |
| | | |
(1)Opened in March 2014.
Normal construction, permitting or other scheduling delays could shift the opening dates of any of these stores into a later period. We currently estimate capital expenditures will total approximately $325 million in fiscal 2015.
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, April 4, 2014. 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 53232311. 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 through June 19, 2014. A telephone replay also will be available through April 11, 2014, and may be accessed by dialing 1-855-859-2056 (international callers dial 1‑404‑537‑3406). The conference I.D. for both domestic and international callers is 53232311.
First Quarter Fiscal 2015 Earnings Release Date
We currently plan to release results for the first quarter ending May 31, 2014, on Friday, June 20, 2014, 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 June 2014.
About CarMax
CarMax, a member of the Fortune 500 and the S&P 500, and one of the Fortune “100 Best Companies to Work For,” for ten consecutive years, is the nation’s largest retailer of used vehicles. Headquartered in Richmond, Va., CarMax currently operates 133 used car superstores in 66 markets. The CarMax consumer offer features low, no-haggle prices, a broad selection of CarMax Quality Certified used vehicles and superior customer service. During the twelve months ended February 28, 2014, the company retailed 526,929 used vehicles and sold 342,576 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 competitive landscape within our industry. |
| · | | 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. |
| · | | 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. |
| · | | Events that damage our reputation or harm the perception of the quality of our brand. |
| · | | Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer or associate information. |
| · | | 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 or a significant increase in labor costs. |
| · | | The failure of key information systems. |
| · | | The effect of various litigation matters. |
| · | | Adverse conditions affecting one or more automotive manufacturers or manufacturer recalls. |
| · | | 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 effect of new accounting requirements or changes to U.S. generally accepted accounting principles. |
| · | | Acts of terrorism, the outbreak of war, or other significant national or international 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, 2013, 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. 4391. 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:
Trina Lee, Director, Public Relations, (855) 887-2915
Catherine Gryp, Manager, Public Relations, (855) 887-2915
