CarMax Reports First Quarter Results

RICHMOND, Va.--()--CarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2018. Year-over-year highlights include:

  • Net sales and operating revenues increased 5.5% to $4.79 billion.
  • Used unit sales in comparable stores declined 2.3%.
  • Total used unit sales rose 1.6%.
  • Total wholesale unit sales increased 9.6%.
  • CarMax Auto Finance (CAF) income increased 5.7% to $115.6 million.
  • Net earnings increased 12.7% to $238.7 million and net earnings per diluted share increased 17.7% to $1.33.
                    *     The increase in net earnings was due to a decrease in the effective tax rate to 25.3% from 37.4% in the first quarter of fiscal 2018, primarily reflecting the effect of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”).

First Quarter Business Performance Review

Sales. Total used vehicle unit sales increased 1.6%, while comparable store used unit sales fell 2.3% versus the prior year’s first quarter. The comparable store sales performance primarily reflected lower store traffic, partially offset by improved conversion, as well as a tough comparison as we lapped our strongest prior year performance. “While our comparable store unit sales performance improved significantly from the February 2018 quarter, we believe macro pricing factors still had some effect on our first quarter sales,” said Bill Nash, president and chief executive officer.

Total wholesale vehicle unit sales increased 9.6% compared with the first quarter of fiscal 2018, largely driven by an increase in our appraisal buy rate and the growth in our store base.

Other sales and revenues increased 5.7% compared with the first quarter of fiscal 2018. Extended protection plan (EPP) revenues rose 8.9%, reflecting both cost decreases from plan providers and a $4.0 million benefit associated with the accelerated recognition of revenue related to extended service plans. The accelerated recognition resulted from our adoption of the new revenue recognition accounting standard in the first quarter of fiscal 2019. We experienced a $3.1 million reduction in third-party finance fees, reflecting shifts in our sales mix by finance channel, including a decline in our Tier 2 and an increase in our Tier 3 sales.

Gross Profit. Total gross profit increased 1.9% versus last year’s first quarter, to $661.3 million. Used vehicle gross profit rose 1.7%, reflecting the 1.6% increase in total used unit sales. Used vehicle gross profit per unit remained stable at $2,215 compared with $2,212 in the prior year period. Wholesale vehicle gross profit increased 9.6% versus the prior year’s quarter, driven by the 9.6% increase in wholesale unit sales. Wholesale vehicle gross profit per unit was also stable at $1,012 in both periods. Other gross profit declined 4.6%, reflecting decreases in service profits and net third-party finance fees, partially offset by the increase in EPP revenues. Service profits were affected by the reduced leverage of service department costs resulting from the decrease in comparable store used unit sales.

SG&A. Compared with the first quarter of fiscal 2018, SG&A expenses increased 8.6% to $438.2 million. Factors contributing to the increase included the 10% increase in our store base since the beginning of last year’s first quarter (representing the addition of 18 stores), and an $8.9 million increase in stock-based compensation expense. We also continued to update our technology platforms and support our core strategic initiatives as part of our focus on improving the customer experience. SG&A per used unit was $2,209 in the current quarter, up $143 year-over-year, largely reflecting the deleverage associated with the decline in comparable store used unit sales. The increase in stock-based compensation expense increased SG&A per unit by $43.

CarMax Auto Finance.(1) Compared with last year’s first quarter, CAF income increased 5.7% to $115.6 million. The increase reflected the combined effects of an 8.7% increase in average managed receivables and a slightly lower total interest margin percentage. The total interest margin percentage, which reflects the spread between interest and fees charged to consumers and our funding costs, was 5.7% of average managed receivables compared with 5.8% in last year’s first quarter. The provision for loan losses was $30.9 million, or 1.05% of average managed receivables, compared with $28.6 million, or 1.06%, in the prior year quarter. The allowance for loan losses as a percentage of ending managed receivables remained relatively stable at 1.13% as of May 31, 2018, compared with 1.18% as of May 31, 2017, and 1.11% as of February 28, 2018.

Interest Expense. Interest expense rose to $18.1 million from $16.8 million in the prior year’s first quarter, primarily reflecting higher interest rates in fiscal 2019.

Income Taxes. As anticipated, the effective tax rate fell to 25.3% in the first quarter of fiscal 2019 from 37.4% in the prior year’s first quarter, primarily due to the reduction in the federal statutory tax rate following the enactment of the 2017 Tax Act.

Store Openings. During the first quarter of fiscal 2019, we opened three stores. We added two stores in existing television markets (Dallas, Texas, and Miami, Florida), and we entered the Greenville, North Carolina television market. Subsequent to the end of the quarter, we opened a store in Santa Fe, New Mexico, representing our second store in the Albuquerque television market.

Share Repurchase Activity. During the first quarter of fiscal 2019, we repurchased 3.3 million shares of common stock for $207.4 million pursuant to our share repurchase program. As of May 31, 2018, we had $809.5 million remaining available for repurchase under the current authorization.

   

(1)

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)       2018     2017     Change
Used vehicle sales $ 4,021.0     $ 3,843.4     4.6 %
Wholesale vehicle sales 617.7 553.4 11.6 %
Other sales and revenues:
Extended protection plan revenues 100.1 91.9 8.9 %
Third-party finance fees, net (14.5 ) (11.4 ) (26.6 )%
Other       68.3       65.1       4.9 %
Total other sales and revenues       153.9       145.6       5.7 %
Total net sales and operating revenues       $ 4,792.6       $ 4,542.3       5.5 %
 

Unit Sales

     
Three Months Ended May 31
        2018     2017     Change
Used vehicles 198,398     195,273     1.6 %
Wholesale vehicles 113,335 103,443 9.6 %
 

Average Selling Prices

     
Three Months Ended May 31
        2018     2017     Change
Used vehicles $ 20,067     $ 19,478     3.0 %
Wholesale vehicles $ 5,205 $ 5,113 1.8 %
 

Vehicle Sales Changes

     

Three Months Ended
May 31

        2018     2017
Used vehicle units 1.6 %     14.1 %
Used vehicle revenues 4.6 % 12.1 %
 
Wholesale vehicle units 9.6 % %
Wholesale vehicle revenues 11.6 %

(2.5

)%

 

Comparable Store Used Vehicle Sales Changes (1)

     

Three Months Ended
May 31

        2018     2017
Used vehicle units

(2.3

)%

    8.2 %
Used vehicle revenues 0.6 % 6.1 %
 
   

(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

          2018       2017
CAF (2) 48.3 %       47.3 %
Tier 2 (3) 17.0 % 19.0 %
Tier 3 (4) 10.9 % 10.0 %
Other (5)         23.8 %       23.7 %
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 3 loan originations, which represent less than 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)       2018     % (1)     2017     % (1)
Net sales and operating revenues $ 4,792.6     100.0     $ 4,542.3     100.0
Gross profit $ 661.3 13.8 $ 648.9 14.3
CarMax Auto Finance income $ 115.6 2.4 $ 109.4 2.4
Selling, general, and administrative expenses $ 438.2 9.1 $ 403.5 8.9
Interest expense $ 18.1 0.4 $ 16.8 0.4
Earnings before income taxes $ 319.7 6.7 $ 338.1 7.4
Net earnings $ 238.7 5.0 $ 211.7 4.7
 
   

(1)

Calculated as a percentage of net sales and operating revenues.

 

Gross Profit

     
Three Months Ended May 31
(In millions)       2018     2017     Change
Used vehicle gross profit $ 439.4     $ 431.9     1.7 %
Wholesale vehicle gross profit 114.7 104.7 9.6 %
Other gross profit       107.2       112.3       (4.6 )%
Total       $ 661.3       $ 648.9       1.9 %
 

Gross Profit per Unit

     
Three Months Ended May 31
        2018     2017
        $ per unit(1)     %(2)     $ per unit(1)     %(2)
Used vehicle gross profit $ 2,215     10.9     $ 2,212     11.2
Wholesale vehicle gross profit $ 1,012 18.6 $ 1,012 18.9
Other gross profit $ 540 69.7 $ 575 77.2
Total gross profit $ 3,333 13.8 $ 3,323 14.3
 
   

(1)

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

(2)

Calculated as a percentage of its respective sales or revenue.

 

SG&A Expenses

     
Three Months Ended May 31
(In millions)       2018     2017     Change
Compensation and benefits (1) $ 241.5     $ 222.5     8.5 %
Store occupancy costs 87.8 79.7 10.1 %
Advertising expense 38.5 38.2 0.9 %
Other overhead costs (2)       70.4       63.1       11.6 %
Total SG&A expenses       $ 438.2       $ 403.5       8.6 %
SG&A per used unit $ 2,209 $ 2,066 $ 143
 
   

(1)

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

(2)

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

 

Components of CAF Income and Other CAF Information

     
Three Months Ended May 31
(In millions)       2018     % (1)     2017     % (1)
Interest margin:            
Interest and fee income $ 232.3 7.9 $ 206.7 7.6
Interest expense       (63.8 )     (2.2 )     (49.0 )     (1.8 )
Total interest margin 168.5 5.7 157.7 5.8
Provision for loan losses       (30.9 )     (1.0 )     (28.6 )     (1.1 )

Total interest margin after provision for loan losses

137.6 4.7 129.1 4.8
 
Total direct expenses       (22.0 )     (0.7 )     (19.7 )     (0.7 )
CarMax Auto Finance income       $ 115.6       3.9       $ 109.4       4.0  
 
Total average managed receivables $ 11,775.4 $ 10,829.5
Net loans originated $ 1,665.5 $ 1,546.1
Net penetration rate 42.9 % 41.9 %
Weighted average contract rate 8.4 % 7.8 %
 
Ending allowance for loan losses $ 134.3 $ 129.8
 
Warehouse facility information:
Ending funded receivables $ 2,028.0 $ 2,022.0
Ending unused capacity $ 1,112.0 $ 778.0
 
   

(1)

Percentage of total average managed receivables (quarterly amounts are annualized).

 

Earnings Highlights

     
Three Months Ended May 31
(In millions except per share data)       2018     2017     Change
Net earnings $ 238.7     $ 211.7     12.7 %
Diluted weighted average shares outstanding 179.4 186.9 (4.0 )%
Net earnings per diluted share $ 1.33 $ 1.13 17.7 %
 

Planned Store Openings

We currently plan to open the following stores within 12 months from May 31, 2018. During this period, we will be entering ten new television markets and expanding our presence in five existing television markets. Of the 15 stores we plan to open during the 12 months ending May 31, 2019, 9 will be in Metropolitan Statistical Areas having populations of 600,000 or less, which we define as small markets.

           
Location     Television Market    

Metropolitan Statistical
Area

   

Planned
Opening Date

Santa Fe, New Mexico (1) Albuquerque/Santa Fe Santa Fe Q2 Fiscal 2019
Warner Robins, Georgia Macon (2) Warner Robins Q2 Fiscal 2019
Norman, Oklahoma Oklahoma City Oklahoma City Q2 Fiscal 2019
Wilmington, North Carolina Wilmington (2) Wilmington Q3 Fiscal 2019
Lafayette, Louisiana Lafayette (2) Lafayette Q3 Fiscal 2019
Corpus Christi, Texas Corpus Christi (2) Corpus Christi Q3 Fiscal 2019
Shreveport, Louisiana Shreveport (2) Shreveport Q3 Fiscal 2019
Amherst, New York Buffalo (2) Buffalo Q4 Fiscal 2019
Melbourne, Florida Orlando/Daytona Beach Palm Bay/Melbourne Q4 Fiscal 2019
Montgomery, Alabama Montgomery/Selma (2) Montgomery Q4 Fiscal 2019
Vancouver, Washington Portland Portland/Vancouver Q4 Fiscal 2019
Kenner, Louisiana New Orleans (2) New Orleans Q4 Fiscal 2019
Memphis, Tennessee Memphis Memphis Q1 Fiscal 2020
Killeen, Texas Waco/Temple (2) Killeen/Temple Q1 Fiscal 2020
Pharr, Texas Harlingen/Brownsville/McAllen (2) McAllen/Edinburg/Mission Q1 Fiscal 2020
 
   

(1)

Store opened in June 2018.

(2)

Represents new television market as of planned store opening date.

 

Normal construction, permitting or other scheduling delays could shift the opening dates of any of these stores into a later period.

Conference Call Information

We will host a conference call for investors at 9:00 a.m. ET today, June 22, 2018. 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 75172648. A live webcast of the call will be available on our investor information home page at investors.carmax.com.

A webcast replay of the call will be available at investors.carmax.com through September 25, 2018. A telephone replay also will be available through June 29, 2018, 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 75172648.

Second Quarter Fiscal 2019 Earnings Release Date

We currently plan to release results for the second quarter ending August 31, 2018, on Wednesday, September 26, 2018, 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 2018.

About CarMax

CarMax is the nation’s largest retailer of used cars, currently operating 192 stores in 41 states nationwide. CarMax revolutionized the auto industry by delivering the honest, transparent and high-integrity car buying experience customers want and deserve. For more than 20 years, CarMax has made car buying more ethical, fair and stress-free by offering a no-haggle, no-hassle experience and an incredible selection of vehicles. CarMax makes selling your car easy too, by offering no-obligation appraisals good for seven days. At CarMax, we’ll buy your car even if you don’t buy ours®. CarMax has more than 25,000 associates nationwide and for 14 consecutive years has been named as one of the Fortune 100 Best Companies to Work For®. During the twelve months ended February 28, 2018, the company retailed 721,512 used vehicles and sold 408,509 wholesale vehicles at its 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, expenses, capital expenditures, debt obligations, tax rates 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,” “predict,” “should,” “will” and other similar expressions, whether in the negative or affirmative. 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 the competitive landscape and/or our failure to successfully adjust to such changes.
  • Events that damage our reputation or harm the perception of the quality of our brand.
  • Changes in general or regional U.S. economic conditions.
  • Changes in tax law, including the effect of the 2017 Tax Act.
  • Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
  • Our inability to recruit, develop and retain associates and maintain positive associate relations.
  • The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
  • Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
  • Significant changes in prices of new and used vehicles.
  • Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loan receivables than anticipated.
  • A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
  • Changes in consumer credit availability provided by our third-party finance providers.
  • Changes in the availability of extended protection plan products from third-party providers.
  • Factors related to the regulatory and legislative environment in which we operate.
  • Factors related to geographic and sales growth, including the inability to effectively manage our growth.
  • The failure of or inability to sufficiently enhance key information systems.
  • The effect of various litigation matters.
  • Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
  • The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
  • The performance of the third-party vendors we rely on for key components of our business.
  • Factors related to seasonal fluctuations in our business.
  • The occurrence of severe weather events.
  • Factors related to the geographic concentration of our stores.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2018, 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 1-804-747-0422 ext. 4391. 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)       2018   % (1)   2017   % (1)
SALES AND OPERATING REVENUES:      
Used vehicle sales $ 4,021,047 83.9 $ 3,843,373 84.6
Wholesale vehicle sales 617,651 12.9 553,390 12.2
Other sales and revenues       153,894     3.2     145,571     3.2
NET SALES AND OPERATING REVENUES 4,792,592 100.0 4,542,334 100.0
COST OF SALES:
Used vehicle cost of sales 3,581,609 74.7 3,411,446 75.1
Wholesale vehicle cost of sales 502,945 10.5 448,718 9.9
Other cost of sales       46,698     1.0     33,232     0.7
TOTAL COST OF SALES       4,131,252     86.2     3,893,396     85.7
GROSS PROFIT 661,340 13.8 648,938 14.3
CARMAX AUTO FINANCE INCOME 115,593 2.4 109,363 2.4
Selling, general and administrative expenses 438,234 9.1 403,503 8.9
Interest expense 18,052 0.4 16,838 0.4
Other expense (income)       963         (93 )  
Earnings before income taxes 319,684 6.7 338,053 7.4
Income tax provision       81,028     1.7     126,351     2.8
NET EARNINGS       $ 238,656     5.0     $ 211,702     4.7
WEIGHTED AVERAGE COMMON SHARES:
Basic 178,139 185,200
Diluted 179,421 186,859
NET EARNINGS PER SHARE:
Basic $ 1.34 $ 1.14
Diluted $ 1.33 $ 1.13
 
   

(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)       2018     2018     2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 76,348 $ 44,525 $ 60,080
Restricted cash from collections on auto loan receivables 431,407 399,442 385,692
Accounts receivable, net 101,351 133,321 104,745
Inventory 2,260,029 2,390,694 2,148,247
  Other current assets       88,359       93,462       35,780  
TOTAL CURRENT ASSETS 2,957,494 3,061,444 2,734,544
Auto loan receivables, net 11,842,749 11,535,704 10,892,844
Property and equipment, net 2,714,495 2,667,061 2,557,506
Deferred income taxes 55,494 63,256 145,265
  Other assets       185,935       158,807       145,530  
  TOTAL ASSETS       $ 17,756,167       $ 17,486,272       $ 16,475,689  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 586,337 $ 529,733 $ 510,574
Accrued expenses and other current liabilities 252,633 278,771 203,211
Accrued income taxes 55,991 103,588
Short-term debt 365 127 693
Current portion of finance and capital lease obligations 10,550 9,994 9,772
  Current portion of non-recourse notes payable       382,326       355,433       338,832  
TOTAL CURRENT LIABILITIES 1,288,202 1,174,058 1,166,670
Long-term debt, excluding current portion 798,083 995,479 797,666
Finance and capital lease obligations, excluding current portion 497,416 490,369 484,394
Non-recourse notes payable, excluding current portion 11,565,653 11,266,964 10,643,810
  Other liabilities       223,052       242,553       231,021  
  TOTAL LIABILITIES       14,372,406       14,169,423       13,323,561  
 
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY:
Common stock, $0.50 par value; 350,000,000 shares authorized; 176,719,782 and 179,747,894 shares issued and outstanding as of May 31, 2018 and February 28, 2018, respectively 88,360 89,874 91,936
Capital in excess of par value 1,234,612 1,234,047 1,184,661
Accumulated other comprehensive loss (55,045 ) (54,312 ) (58,229 )
  Retained earnings       2,115,834       2,047,240       1,933,760  
  TOTAL SHAREHOLDERS’ EQUITY       3,383,761       3,316,849       3,152,128  
  TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY       $ 17,756,167       $ 17,486,272       $ 16,475,689  
 
 

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 
      Three Months Ended May 31
(In thousands)       2018     2017 (1)
OPERATING ACTIVITIES:    
Net earnings $ 238,656 $ 211,702
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 45,343 43,894
Share-based compensation expense 28,998 18,726
Provision for loan losses 30,872 28,579
Provision for cancellation reserves 20,089 17,113
Deferred income tax provision 3,602 6,782
Other 1,468 621
Net decrease (increase) in:
Accounts receivable, net 31,970 47,643
Inventory 130,665 112,316
Other current assets 6,806 5,451
Auto loan receivables, net (337,917 ) (325,347 )
Other assets (3,078 ) 809
Net increase (decrease) in:

Accounts payable, accrued expenses and other current liabilities and accrued income taxes

81,729 52,673
Other liabilities       (48,354 )     (29,469 )
NET CASH PROVIDED BY OPERATING ACTIVITIES       230,849       191,493  
INVESTING ACTIVITIES:
Capital expenditures (79,720 ) (79,416 )
Proceeds from disposal of property and equipment 320
Purchases of investments (5,094 ) (1,055 )
Sales of investments       77       238  
NET CASH USED IN INVESTING ACTIVITIES       (84,417 )     (80,233 )
FINANCING ACTIVITIES:
Increase in short-term debt, net 238 631
Proceeds from issuances of long-term debt 817,600 762,000
Payments on long-term debt (1,015,100 ) (917,000 )
Cash paid for debt issuance costs (3,647 ) (2,920 )
Payments on finance and capital lease obligations (2,398 ) (2,268 )
Issuances of non-recourse notes payable 2,668,502 2,410,000
Payments on non-recourse notes payable (2,343,291 ) (2,149,135 )
Repurchase and retirement of common stock (211,050 ) (187,385 )
Equity issuances       9,052       6,608  
NET CASH USED IN FINANCING ACTIVITIES       (80,094 )     (79,469 )
Increase in cash, cash equivalents, and restricted cash 66,338 31,791
Cash, cash equivalents, and restricted cash at beginning of year       554,898       523,865  
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD       $ 621,236       $ 555,656  
 
   

(1)

In connection with our adoption of Financial Accounting Standards Board (“FASB”) ASU 2016-18 during the first quarter of fiscal 2019, restricted cash is now included with cash and cash equivalents in the reconciliation of beginning of year and end of period total amounts above. Prior period amounts have been reclassified to conform to the current period’s presentation.

 

Contacts

CarMax, Inc.
Investors:
Katharine Kenny, Vice President, Investor Relations, (804) 935-4591
Celeste Gunter, Manager, Investor Relations, (804) 935-4597
or
Media:
pr@carmax.com, (855) 887-2915

Contacts

CarMax, Inc.
Investors:
Katharine Kenny, Vice President, Investor Relations, (804) 935-4591
Celeste Gunter, Manager, Investor Relations, (804) 935-4597
or
Media:
pr@carmax.com, (855) 887-2915