Circuit City Stores Releases Fiscal Year 2001 Results
RICHMOND, Va., April 2 Circuit City Stores, Inc. today
released results for the fourth quarter and fiscal year for the company, the
Circuit City Group and the CarMax Group .
FOURTH QUARTER AND FISCAL YEAR RESULTS
Circuit City Stores, Inc.:
Sales: For the fourth quarter ended February 28, 2001, Circuit City
Stores, Inc. total sales declined 4 percent to $3.82 billion from $3.98
billion in the fourth quarter of the prior year. For the fiscal year ended
February 28, 2001, total sales for Circuit City Stores, Inc. increased 3
percent to $12.96 billion from $12.61 billion.
Earnings: Earnings from continuing operations were $103.2 million in the
fourth quarter of fiscal 2001, compared with $159.7 million in the fourth
quarter of fiscal 2000. Earnings from continuing operations were $160.8
million for the fiscal year ended February 28, 2001, compared with $327.8
million for the fiscal year ended February 29, 2000.
Circuit City Group:
Sales: Total sales for the Circuit City Group declined 9 percent in the
quarter ended February 28, 2001, to $3.18 billion from $3.48 billion in the
same prior year period. Comparable store sales declined 11 percent for the
quarter. For the fiscal year, total sales for the Circuit City Group declined
1 percent to $10.46 billion from $10.60 billion. Comparable store sales
declined 4 percent. Excluding the major appliance category, which declined
significantly beginning late in the first quarter and from which the company
completed its exit during the third quarter, comparable store sales declined 2
percent for the fourth quarter and increased 3 percent for the fiscal year.
Comparable Store Sales Changes
Quarter Ended Fiscal Year Ended
February 28, 2001 February 28, 2001
All Comparable Stores (11%) (4%)
Excluding Appliances (2%) 3%
Earnings: Fourth quarter earnings from continuing operations for the
Circuit City Group include the total sales and earnings for the company's
Circuit City store business and the Group's retained interest in the equity of
the CarMax Group.
* Including the Inter-Group Interest in CarMax, earnings from continuing
operations for the Circuit City Group were $101.2 million in the fourth
quarter ended February 28, 2001, compared with $160.1 million in the
same prior year period. Earnings per share from continuing operations
were 49 cents in the fourth quarter of fiscal 2001, compared with 78
cents in the fourth quarter of fiscal 2000.
* Excluding the interest in CarMax, earnings from continuing operations
for the Circuit City Group were $95.4 million in the fourth quarter of
fiscal 2001, compared with $161.5 million in the same prior year
period. Earnings per share from continuing operations were 46 cents
compared with 79 cents.
Earnings from continuing operations for the fiscal year also include the
total sales and earnings for the company's Circuit City store business and the
Group's retained interest in the equity of the CarMax Group.
* Including the Inter-Group Interest in CarMax, earnings from continuing
operations for the Circuit City Group were $149.2 million for the
fiscal year ended February 28, 2001, compared with $327.6 million in
the prior fiscal year, and earnings per share from continuing
operations were 73 cents compared with $1.60.
* Excluding the interest in CarMax, earnings from continuing operations
for the Circuit City Group were $115.2 million, or 56 cents per share,
for the fiscal year ended February 28, 2001, compared with $326.7
million, or $1.60 per share, in the prior year.
Appliance merchandise markdowns had an 8-cent per share impact and one-
time costs associated with the exit from the appliance business had a 9-cent
per share impact on the earnings of the Circuit City business for the fiscal
year ended February 28, 2001. The one-time costs, incurred in the second
fiscal quarter, included lease terminations, employee severance, fixed asset
impairment and other related costs. Costs associated with fully remodeling
the central and south Florida stores reduced earnings for the fiscal year by
13 cents, and the costs associated with partial remodels, largely incurred in
the third fiscal quarter, reduced earnings per share by 9 cents. Sales
disruption, which also was largely incurred in the third quarter and was
caused by the absence of any product in the former appliance space during the
seven to 10 days of partial remodeling, reduced earnings per share by an
estimated 3 cents. Employee severance costs related to a workforce reduction
that occurred at the end of the fiscal year, primarily at the company's
corporate and division offices, reduced earnings per share by 2 cents.
Excluding the appliance merchandise markdowns, exit costs, remodel expenses
and the workforce reduction and excluding the retained interest in CarMax,
earnings per share for the Circuit City Group would have been $1.00 for the
fiscal year ended February 28, 2001, compared with earnings per share of $1.60
in the prior year.
Earnings per Share from Continuing Operations - Circuit City Group
Quarter Ended Fiscal Year Ended
February 28 or 29 February 28 or 29
2001 2000 2001 2000
Circuit City Store
Business $0.48 $0.79 $1.00 $1.60
Impact of Merchandise
Markdowns* -- -- (0.08) --
Impact of Appliance Exit -- -- (0.09) --
Impact of Florida
Remodels** -- -- (0.13) --
Impact of Partial
Remodels** -- -- (0.09) --
Impact of Sales
Disruption -- -- (0.03) --
Impact of Workforce
Reduction** (0.02) -- (0.02) --
Inter-Group Interest
in CarMax 0.03 (0.01) 0.17 --
Circuit City Group $0.49 $0.78 $0.73 $1.60
* Reflected as a reduction in gross profit margins.
** Reflected as an increase in selling, general and administrative
expenses.
Discontinued Operations:
In June 1999, the company's Digital Video Express business ceased
operations. The operating results of Divx and the loss on the disposal of the
Divx business were segregated from continuing operations and reported as
separate line items after tax on the company's and the Circuit City Group's
statements of earnings for the fiscal year ended February 29, 2000.
Discontinuation of the Divx business had no impact on the statements of
earnings for the fourth quarter of either fiscal year or for the fiscal year
ended February 28, 2001.
CarMax Group:
Sales: Total sales for the CarMax Group rose 27 percent for the quarter
ended February 28, 2001, to $640.0 million from $504.2 million in the fourth
quarter of the prior year. Comparable store sales rose 23 percent. For the
fiscal year ended February 28, 2001, total sales for the CarMax Group rose 24
percent to $2.50 billion from $2.01 billion in the prior year, and comparable
store sales rose 17 percent.
Earnings: Net earnings for the CarMax Group rose to $7.8 million in the
fourth quarter ended February 28, 2001, from a net loss of $1.7 million in the
fourth quarter of the prior year. The fiscal 2001 earnings reflect a write-
off of goodwill associated with two under performing new-car franchises, which
reduced net earnings by $5.4 million. The fiscal 2000 results reflect lease
termination costs on undeveloped property and a write-down of assets
associated with excess property for sale, which reduced net earnings by $3.0
million. The net earnings attributed to the CarMax Group stock were $2.0
million in the fourth quarter of fiscal 2001, compared with a net loss of
$408,000 in the fourth quarter of fiscal 2000. The remainder of the CarMax
Group's net earnings are attributed to the Inter-Group Interest held by the
Circuit City Group and thus to the Circuit City Group shares. Net earnings
per CarMax Group share rose to 7 cents from a net loss of 2 cents in the same
prior year period.
Net earnings for the CarMax Group rose to $45.6 million for the fiscal
year ended February 28, 2001, from $1.1 million in the prior fiscal year; net
earnings attributed to the CarMax Group stock increased to $11.6 million from
$256,000. The fiscal 2001 net earnings reflect the $5.4 million reduction
resulting from the goodwill write-off discussed above. The fiscal 2000 net
earnings include the $3.0 million lease termination costs and write-down of
assets discussed above. The remainder of the CarMax Group's net earnings are
attributed to the Inter-Group Interest held by the Circuit City Group and thus
to the Circuit City Group shares. Net earnings per CarMax Group share rose to
43 cents in fiscal year 2001 from 1 cent per share in fiscal year 2000.
CarMax Group Earnings (Loss)
(Amounts in millions except per share data)
Quarter Ended Fiscal Year Ended
February 28 or 29 February 28 or 29
2001 2000 2001 2000
CarMax Group
Net Earnings (Loss) $7.78 $(1.71) $45.56 $1.12
Net Earnings (Loss)
Attributed to the
Circuit City Group 5.81 (1.30) 34.01 0.86
Net Earnings (Loss)
Attributed to the
CarMax Group 1.97 (0.41) 11.55 0.26
CarMax Group Diluted
Weighted Average
Shares Outstanding 27.03 26.18 26.98 25.79
Net Earnings (Loss)
per CarMax
Group Share $0.07 $(0.02) $0.43 $0.01
BUSINESS PERFORMANCE REVIEWS
Circuit City Group Review:
"The comparable store sales pace for our Circuit City business was erratic
throughout the fiscal year," said W. Alan McCollough, president and chief
executive officer of Circuit City Stores, Inc. "Sales were strong across
virtually all categories early in the year, but the major appliance business
especially softened late in the first quarter. Given the increased
competition in that business and the greater profit opportunities represented
by other categories, we decided to exit the appliance category. That exit was
completed by late in the third quarter, prior to the peak holiday sales period
for all categories. We experienced a general softening across categories in
the third quarter, followed by an improved sales pace in December and then a
more significant fall off in January and February. The late-year softening
impacted all categories, but was especially visible in desktop personal
computer sales. Throughout the year, we have experienced declines in average
retails for more traditional consumer electronics, but double or triple-digit
comparable store sales growth in some of the newest technologies and in new or
expanded categories in the stores."
In fiscal year 2001, Circuit City fully remodeled 26 stores, primarily in
central and south Florida. The company opened 25 stores, including two
relocations. One of the relocated stores closed early in the new fiscal year,
although the replacement store opened in late February. The new stores,
relocations and remodels give the retailer a total of 49 stores that follow
its new design. The design features a contemporary look and floor plan that
is easier to navigate. The new layout and store operating system provide
higher service levels for more complex technologies while also enhancing the
consumer's ability to browse and self-select products such as entertainment
and computer software, accessories, and more traditional consumer electronics
products. As part of its exit from the appliance business, Circuit City also
partially remodeled 545 stores and expanded its selections of computer
software, peripherals, accessories, video games, 35 mm cameras and portable
audio products, matching the selections in the new and fully remodeled stores.
Excluding the major appliance category, the Circuit City Group's gross
profit margin was 24.7 percent in fiscal 2001, compared with 25.4 percent in
fiscal 2000. Including appliances, the gross profit margin was 23.6 percent
in fiscal 2001, compared with 24.7 percent in fiscal 2000. "The gross profit
margin was reduced by one-time costs of $28.3 million and merchandise
markdowns of $28.0 million associated with our exit from the appliance
business, significantly lower appliance gross margins prior to our announced
plans to exit the business and a merchandise mix that included a high
percentage of traditional products that carry lower gross profit margins,"
said McCollough. "The weakness in desktop computer sales, which carry lower-
than-average gross profit margins, helped the gross profit margin at the end
of the year, although the lower sales volumes hurt overall operating profits."
Gross Margin Components
Quarter Ended Fiscal Year Ended
February 28 or 29 February 28 or 29
2001 2000 2001 2000
Circuit City Store
Business 24.4% 24.7% 24.1% 24.7%
Impact of Appliance
Markdowns -- -- (0.2%) --
One-Time Appliance
Exit Costs -- -- (0.3%) --
Gross Profit Margin 24.4% 24.7% 23.6% 24.7%
Gross Profit Margin
Excluding Appliances 24.4% 25.4% 24.7% 25.4%
The expense ratio rose to 21.7 percent of sales in fiscal 2001, compared
with 19.6 percent of sales in fiscal 2000. The fiscal 2001 ratio reflects the
decline in comparable store sales and $41.9 million in remodeling costs for
the Florida stores, $30.0 million in costs related to the partial remodels and
$5.0 million in severance costs associated with the fourth quarter workforce
reduction. Excluding these costs and the estimated sales disruption during
the seven to 10 days of partial remodeling that occurred primarily in the
third quarter, the fiscal 2001 expense ratio would have been 20.9 percent of
sales. "Although we have not yet replaced the appliance sales, we believe
that our exit from this business to focus on more profitable categories that
our customers expect to find in Circuit City stores and that offer higher
growth opportunities as we proceed through the decade was an important
strategic move," said McCollough. "Unfortunately, the costs of and sales
disruption related to our full remodels exceeded our expectations, and so, we
have refined the remodel design to reduce both the costs of remodeling and the
amount of time from start to completion. We currently anticipate that the
average costs of this year's remodels will be approximately $1.5 million per
store."
Expense Ratio Components
Quarter Ended Fiscal Year Ended
February 28 or 29 February 28 or 29
2001 2000 2001 2000
Circuit City Store
Business 19.3% 17.1% 20.9% 19.6%
Florida Remodel Costs -- -- 0.4% --
Partial Remodel Costs -- -- 0.3% --
Sales Disruption Impact -- -- 0.1% --
Workforce Reduction 0.2% -- 0.0% --
Expense Ratio 19.5% 17.1% 21.7% 19.6%
Net earnings related to the Circuit City Group's Inter-Group Interest in
the CarMax Group contributed $34.0 million to the net earnings of the Circuit
City Group for the fiscal year ended February 28, 2001, compared with a
contribution of $862,000 for the prior fiscal year.
"Fiscal 2001 was a challenging year for our Circuit City business, and we
believe that many of these challenges will continue in the new fiscal year,"
said McCollough. "We are focusing our attention on:
(1) stronger marketing programs that build brand awareness and increase
foot traffic for all categories in our stores;
(2) construction of 15 to 20 new stores, 20 to 25 remodels and
approximately 10 relocations to bring our newest shopping environment
to more consumers;
(3) building sales in key categories that drive profitability;
(4) cost reductions through improvement in supply chain management; and
(5) application of the Six-Sigma cost-reduction methodology to specific
processes.
Given the extreme variability in sales that we experienced throughout
fiscal 2001 and the uncertain economic environment, we are cautious in our
outlook for the new fiscal year -- especially the first half. Nevertheless,
our research continues to show that customers like our new stores, and we are
encouraged by the industry's continued technological developments. We will
continue to position Circuit City to take advantage of the industry's
projected growth opportunities, while also working to improve the cost
efficiencies in our overall operations."
CarMax Group Review:
"CarMax generated strong sales growth throughout the year, including the
second half when our unique store concept produced strong used-car sales
growth despite an industry-wide slowdown in new-car sales," said W. Austin
Ligon, president of CarMax. "Sales growth remained strong in the fourth
quarter, even against the anniversary of a significant competitor's exit from
the used-car superstore business. We believe the sales performance throughout
the year reflects our focus over the past two years on sales and profit
improvement in our existing store base. During the fourth quarter, we
benefited from the lack of severe winter weather in most all our markets.
"The increase in used-car sales as a percent of our total sales mix and
continued strong inventory management throughout the year, but especially
during the second half when the model-year transition occurs in the new-car
segment, contributed to a higher gross profit margin of 13.2 percent of sales
in fiscal 2001, compared with 11.9 percent of sales in fiscal 2000," said
Ligon. "The significantly better expense ratio of 9.8 percent in fiscal 2001
versus 11.3 percent in fiscal 2000 reflects the leverage achieved from strong
total and comparable store sales growth; more efficient advertising
expenditures; overall improvements in store productivity, including those
achieved through the hub and satellite strategy we adopted in multi-store
markets; and a favorable contribution from CarMax Auto Finance." The
improvements in CarMax's fiscal 2001 expense ratio were partly offset by an
$8.7 million pretax write-off of goodwill associated with two under performing
new-car franchises."
CarMax's operating margin before interest and taxes rose to 3.4 percent in
fiscal 2001 from 0.6 percent in fiscal 2000. Excluding the goodwill write-
off, the operating margin before interest and taxes was 3.8 percent.
CarMax Group Operating Ratios
Quarter Ended Fiscal Year Ended
February 28 or 29 February 28 or 29
2001 2000 2001 2000
Net Sales and Operating
Revenues 100.0% 100.0% 100.0% 100.0%
Gross Profit Margin 12.8% 12.3% 13.2% 11.9%
Expense Ratio 10.4% 12.2% 9.8% 11.3%
Operating Margin
Before Interest
and Taxes 2.4% 0.1% 3.4% 0.6%
For the year, the CarMax business produced pretax earnings of $73.5
million in fiscal 2001, compared with pretax earnings of $1.8 million in
fiscal 2000. The pretax profit margin was 2.9 percent this year, compared
with 0.1 percent last year.
"We believe that our fiscal 2001 growth and profitability indicate that
CarMax has developed a firm foundation for sustained, profitable growth and
our used-car superstore concept is well positioned to succeed in economic down
cycles," said Ligon. "We expect to resume geographic expansion this fiscal
year with two store openings in single-store markets. We would expect to open
another four to six superstores in fiscal 2003 and six to eight superstores
per year from fiscal 2004 through fiscal 2006, assuming that we continue to
achieve success with our new-market openings. We will focus our expansion
plans on openings in single-store markets, which are the markets where we
historically have achieved the highest returns, and satellite fill-ins, where
we can improve the productivity of our existing multi-store markets, for the
next several years."
CIRCUIT CITY STORES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
PERIODS ENDED FEBRUARY 28 OR 29
(Amounts in thousands except per share data)
Three Months Twelve Months
2001 2000 2001 2000
NET SALES AND
OPERATING
REVENUES $3,817,127 $3,980,407 $12,959,028 $12,614,390
Cost of sales,
buying and
warehousing 2,960,660 3,059,770 10,135,380 9,751,833
Appliance exit
costs - - 28,326 -
GROSS PROFIT 856,467 920,637 2,795,322 2,862,557
Selling, general and
administrative
expenses 685,555 655,883 2,514,912 2,309,593
Appliance exit costs - - 1,670 -
Interest expense 4,518 7,108 19,383 24,206
EARNINGS FROM
CONTINUING
OPERATIONS
BEFORE INCOME TAXES 166,394 257,646 259,357 528,758
Provision for
income taxes 63,230 97,905 98,555 200,928
EARNINGS FROM
CONTINUING
OPERATIONS 103,164 159,741 160,802 327,830
Discontinued
operations:
Loss from
discontinued
operations of
Divx, less income
tax benefit - - - (16,215)
Loss on disposal
of Divx, less
income tax benefit - - - (114,025)
LOSS FROM
DISCONTINUED
OPERATIONS - - - (130,240)
NET EARNINGS $103,164 $159,741 $160,802 $197,590
Net earnings (loss)
attributed to:
Circuit City Group
common stock:
Continuing
operations $101,190 $160,149 $149,247 $327,574
Discontinued
operations $- $- $- $(130,240)
CarMax Group
common stock $1,974 $(408) $11,555 $256
Weighted average
common shares:
Circuit City
Group basic 204,401 201,999 203,774 201,345
Circuit City
Group diluted 206,380 204,749 205,830 204,321
CarMax Group basic 25,579 24,611 25,554 23,778
CarMax Group diluted 27,026 26,181 26,980 25,788
NET EARNINGS (LOSS)
PER SHARE:
Circuit City Group
basic:
Continuing
operations $0.50 $0.79 $0.73 $1.63
Discontinued
operations $- $- $- $(0.65)
Net earnings $0.50 $0.79 $0.73 $0.98
Circuit City Group
diluted:
Continuing
operations $0.49 $0.78 $0.73 $1.60
Discontinued
operations $- $- $- $(0.64)
Net earnings $0.49 $0.78 $0.73 $0.96
CarMax Group basic $0.08 $(0.02) $0.45 $0.01
CarMax Group diluted $0.07 $(0.02) $0.43 $0.01
CIRCUIT CITY STORES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
February 28 or 29
2001 2000
ASSETS
Current Assets:
Cash and cash equivalents $446,131 $643,933
Net accounts receivable 585,761 593,276
Inventory 1,757,664 1,689,209
Prepaid expenses and other current assets 57,623 16,197
Total Current Assets 2,847,179 2,942,615
Property and equipment, net 988,947 965,181
Other assets 35,207 47,552
TOTAL ASSETS $3,871,333 $3,955,348
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term debt $132,388 $177,344
Accounts payable 902,560 960,131
Short-term debt 1,200 3,005
Accrued expenses and other current liabilities 162,972 204,561
Deferred income taxes 92,479 61,118
Total Current Liabilities 1,291,599 1,406,159
Long-term debt, excluding current installments 116,137 249,241
Deferred revenue and other liabilities 92,165 130,020
Deferred income taxes 14,949 27,754
TOTAL LIABILITIES 1,514,850 1,813,174
STOCKHOLDERS' EQUITY 2,356,483 2,142,174
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,871,333 $3,955,348
CIRCUIT CITY GROUP
STATEMENTS OF EARNINGS
PERIODS ENDED FEBRUARY 28 OR 29
(Amounts in thousands except per share data)
Three Months Twelve Months
2001 2000 2001 2000
NET SALES AND
OPERATING
REVENUES $3,177,131 $3,476,171 $10,458,037 $10,599,406
Cost of sales,
buying and
warehousing 2,402,733 2,617,395 7,964,148 7,977,214
Appliance exit
costs - - 28,326 -
GROSS PROFIT 774,398 858,776 2,465,563 2,622,192
Selling, general and
administrative
expenses 618,989 594,484 2,270,745 2,081,393
Appliance exit costs - - 1,670 -
Interest expense 1,558 3,884 7,273 13,844
EARNINGS FROM
CONTINUING
OPERATIONS
BEFORE INCOME TAXES
AND INTER-GROUP
INTEREST IN THE
CARMAX GROUP 153,851 260,408 185,875 526,955
Provision for
income taxes 58,468 98,955 70,637 200,243
EARNINGS FROM
CONTINUING
OPERATIONS
BEFORE INTER-GROUP
INTEREST IN THE
CARMAX GROUP 95,383 161,453 115,238 326,712
Net earnings (loss)
related to the
Inter-Group Interest
in the CarMax Group 5,807 (1,304) 34,009 862
EARNINGS FROM
CONTINUING
OPERATIONS 101,190 160,149 149,247 327,574
Discontinued
operations:
Loss from discontinued
operations of
Divx, less income
tax benefit - - - (16,215)
Loss on disposal
of Divx, less
income tax benefit - - - (114,025)
LOSS FROM
DISCONTINUED
OPERATIONS - - - (130,240)
NET EARNINGS $101,190 $160,149 $149,247 $197,334
Weighted average
common shares:
Basic 204,401 201,999 203,774 201,345
Diluted 206,380 204,749 205,830 204,321
NET EARNINGS (LOSS)
PER SHARE:
Basic:
Continuing
operations $0.50 $0.79 $0.73 $1.63
Discontinued
operations $- $- $- $(0.65)
Net earnings $0.50 $0.79 $0.73 $0.98
Diluted:
Continuing operations $0.49 $0.78 $0.73 $1.60
Discontinued operations $- $- $- $(0.64)
Net earnings $0.49 $0.78 $0.73 $0.96
CIRCUIT CITY GROUP
BALANCE SHEETS
(Amounts in thousands)
February 28 or 29
2001 2000
ASSETS
Current Assets:
Cash and cash equivalents $437,329 $633,952
Net accounts receivable 451,099 464,023
Merchandise inventory 1,410,527 1,405,617
Prepaid expenses and other current assets 55,317 13,353
Total Current Assets 2,354,272 2,516,945
Property and equipment, net 796,789 753,325
Inter-Group Interest in the CarMax Group 292,179 257,535
Other assets 9,319 9,583
TOTAL ASSETS $3,452,559 $3,537,388
LIABILITIES AND GROUP EQUITY
Current Liabilities:
Current installments of long-term debt $24,237 $85,735
Accounts payable 820,077 884,172
Short-term debt 213 1,453
Accrued expenses and other current
liabilities 146,818 184,705
Deferred income taxes 74,317 53,971
Total Current Liabilities 1,065,662 1,210,036
Long-term debt, excluding current
installments 33,080 127,984
Deferred revenue and other liabilities 85,329 122,771
Deferred income taxes 11,329 21,877
TOTAL LIABILITIES 1,195,400 1,482,668
GROUP EQUITY 2,257,159 2,054,720
TOTAL LIABILITIES AND GROUP EQUITY $3,452,559 $3,537,388
CARMAX GROUP
STATEMENTS OF OPERATIONS
PERIODS ENDED February 28 or 29
(Amounts in thousands except per share data)
Three Months Twelve Months
2001 2000 2001 2000
NET SALES AND
OPERATING REVENUES $639,996 $504,236 $2,500,991 $2,014,984
Cost of sales 557,927 442,375 2,171,232 1,774,619
GROSS PROFIT 82,069 61,861 329,759 240,365
Selling, general and
administrative
expenses 66,566 61,399 244,167 228,200
Interest expense 2,960 3,224 12,110 10,362
EARNINGS (loss)
BEFORE INCOME TAXES 12,543 (2,762) 73,482 1,803
Income tax provision
(benefit) 4,762 (1,050) 27,918 685
NET EARNINGS (loss) $7,781 $(1,712) $45,564 $1,118
Net earnings (loss)
attributed to:
Circuit City Group
common stock $5,807 $(1,304) $34,009 $862
CarMax Group
common stock $1,974 $(408) $11,555 $256
Weighted average
common shares:
Basic 25,579 24,611 25,554 23,778
Diluted 27,026 26,181 26,980 25,788
NET EARNINGS (loss)
PER SHARE:
Basic $0.08 $(0.02) $0.45 $0.01
Diluted $0.07 $(0.02) $0.43 $0.01
CARMAX GROUP
BALANCE SHEETS
(Amounts in thousands)
February 28 or 29
2001 2000
ASSETS
Current Assets:
Cash and cash equivalents $8,802 $9,981
Net accounts receivable 134,662 129,253
Inventory 347,137 283,592
Prepaid expenses and other current assets 2,306 2,844
Total Current Assets 492,907 425,670
Property and equipment, net 192,158 211,856
Other assets 25,888 37,969
TOTAL ASSETS $710,953 $675,495
LIABILITIES AND GROUP EQUITY
Current Liabilities:
Current installments of long-term debt $108,151 $91,609
Accounts payable 82,483 75,959
Short-term debt 987 1,552
Accrued expenses and other current
liabilities 16,154 19,856
Deferred income taxes 18,162 7,147
Total Current Liabilities 225,937 196,123
Long-term debt, excluding current
installments 83,057 121,257
Deferred revenue and other liabilities 6,836 7,249
Deferred income taxes 3,620 5,877
TOTAL LIABILITIES 319,450 330,506
GROUP EQUITY 391,503 344,989
TOTAL LIABILITIES AND GROUP EQUITY $710,953 $675,495
