Circuit City Stores, Inc. Reports Second Quarter Results for the Company, the Circuit City Group and the CarMax Group
RICHMOND, Va.--Sept. 19, 2001--This release originally crossed the wire at 7:50 a.m. ET this morning. Due to Business Wire error, some of the tables were not lined up correctly. None of the facts or figures have changed. The corrected release follows in its proper format.
Circuit City Stores, Inc. today released second quarter and year-to-date results that are consistent with previously announced expectations for the Circuit City Group and the CarMax Group and the consolidated results for Circuit City Stores, Inc.
Circuit City Stores, Inc.
Results for Circuit City Stores, Inc. include the total sales and earnings for the company's Circuit City business and its CarMax business. Total sales for the second quarter ended August 31, 2001, declined 9 percent to $2.89 billion from $3.18 billion in the prior year's second quarter. Net earnings were $14.9 million compared with $59.5 million in the same quarter last year. For the first six months, total sales declined 11 percent to $5.57 billion in fiscal 2002 from $6.25 billion in fiscal 2001, and net earnings were $31.8 million compared with $120.1 million.
Net earnings are allocated to the company's Circuit City Group and CarMax Group stocks. In a public offering completed during the second quarter, Circuit City Stores, Inc. sold 9,516,800 CarMax Group shares that had previously been reserved for the Circuit City Group, reducing the Circuit City Group's retained interest in the CarMax Group during the quarter. Because both the earnings allocation and the outstanding CarMax shares were adjusted to reflect the impact of the sale, net earnings per CarMax Group share were not diluted by the sale. With the impact of the offering, 70.7 percent of the CarMax Group's second quarter earnings and 72.5 percent of the CarMax Group's first-half earnings were allocated to the Circuit City Group. For the same periods last year, 74.6 percent of the CarMax Group's earnings were allocated to the Circuit City Group. At the end of the second quarter, the Circuit City Group retained a 64.6 percent interest in the CarMax Group shares.
Including the loss from the company's Circuit City business and the earnings allocated from CarMax, second quarter net earnings per Circuit City Group share were 3 cents this year compared with 27 cents last year. Second quarter net earnings per CarMax Group share were 25 cents this year, up 67 percent from 15 cents last year.
First-half net earnings per Circuit City Group share were 8 cents this year compared with 55 cents last year. First-half net earnings per CarMax Group share were 50 cents this year, up 79 percent from 28 cents last year.
Circuit City Group Results
Total sales for the Circuit City Group declined 19 percent in the second quarter ended August 31, 2001, to $2.04 billion from $2.51 billion in the prior year's second quarter. Comparable store sales declined 21 percent. Excluding the appliance category, from which the company completed its exit in November 2000, second quarter comparable store sales declined 9 percent.
For the second quarter, the Circuit City business produced a loss of $12.5 million, or 6 cents per Circuit City Group share, this year compared with earnings of $43.2 million, or 21 cents per Circuit City Group share, last year. Including the CarMax earnings attributed to the Circuit City Group stock, second quarter net earnings for the Circuit City Group were $6.8 million, or 3 cents per Circuit City Group share, compared with $55.3 million, or 27 cents per Circuit City Group share, in the same period last year.
For the six months, total sales for the Circuit City Group declined 21 percent to $3.92 billion in fiscal 2002 from $4.96 billion last year. The Circuit City business produced a loss of $22.1 million, or 11 cents per Circuit City Group share, in the first half of fiscal 2002, compared with earnings of $89.9 million, or 44 cents per Circuit City Group share, in the first half of fiscal 2001. Including the CarMax earnings attributed to the Circuit City Group stock, first half net earnings for the Circuit City Group were $17.0 million, or 8 cents per Circuit City Group share, in fiscal 2002 versus $112.5 million, or 55 cents per Circuit City Group share, in fiscal 2001.
The results for the second quarter and the six months ended August 31, 2000, include certain non-recurring costs associated with the exit from the appliance business. These non-recurring items, which totaled approximately 11 cents per Circuit City Group share, included merchandise markdowns of $7.0 million, or 2 cents per Circuit City Group share; and one-time costs for lease termination, employee severance, fixed asset impairment and other related costs totaling $30.0 million, or 9 cents per Circuit City Group share. Excluding the appliance exit and merchandise markdown costs, the Circuit City business generated earnings of 32 cents per Circuit City Group share in the second quarter of last year and 55 cents per Circuit City Group share in the first six months of last year.
Earnings (Loss) per Share - Circuit City Group
Second Quarter Ended Six Months Ended
August 31 August 31
2001 2000 2001 2000
Circuit City Business $(0.06) $ 0.32 $(0.11) $ 0.55
Appliance Merchandise
Markdowns (a) - (0.02) - (0.02)
Appliance Exit - (0.09) - (0.09)
Inter-Group Interest
in CarMax 0.09 0.06 0.19 0.11
------ ------ ------ ------
Circuit City Group $ 0.03 $ 0.27 $ 0.08 $ 0.55
(a) Reported as a reduction in gross profit margins.
CarMax Group Results
Total sales for the CarMax Group were $851.4 million in the second quarter, up 26 percent from $673.6 million in last year's second quarter. Comparable store sales increased 27 percent. Net earnings for the CarMax business rose 68 percent to $27.4 million in this year's second quarter from $16.3 million in the second quarter of last year. Net earnings per CarMax Group share rose 67 percent to 25 cents from 15 cents in last year's second quarter. The net earnings attributed to the CarMax Group stock were $8.0 million, an increase of 95 percent from $4.1 million in last year's second quarter. The remainder of the CarMax Group's net earnings is attributed to the Circuit City Group stock.
For the six months, the CarMax Group's total sales rose 27 percent to $1.65 billion in fiscal 2002 from $1.30 billion in the first six months of last year. Comparable store sales rose 27 percent. Net earnings for the CarMax business increased 79 percent to $54.0 million in the first six months of this year from $30.2 million in the same period last year. Net earnings per CarMax Group share also rose 79 percent to 50 cents in the first half of this year versus 28 cents in last year's first half. The net earnings attributed to the CarMax Group stock were $14.9 million, an increase of 94 percent from $7.7 million in last year's first half.
For the quarter and the six months, net earnings attributed to the CarMax Group stock grew faster than total net earnings and net earnings per CarMax Group share because of the impact of the sale of CarMax Group stock by Circuit City Stores, Inc. during the quarter.
Circuit City Group Review
"We remain dissatisfied in the overall sales performance of our Circuit City business, although we continue to produce strong sales growth in key product categories," said W. Alan McCollough, president and chief executive officer of Circuit City Stores, Inc. "Comparable store sales continued to be affected by last year's exit from the major appliance business, industry-wide weakness in personal computer sales and declines in sales of analog products and older technologies, caused in part by lower average retails. At the same time, however, we have experienced extremely solid comparable store sales increases in digital and advanced technologies, such as digital televisions, and in the new and expanded categories, such as digital imaging, video games, video software and personal computer software, accessories and peripherals, added in the former appliance space. We believe our strength in the more complex of these categories reflects in part our ability to differentiate Circuit City through knowledgeable sales assistance and strong hands-on product demonstrations."
The gross profit margin for the Circuit City business was 24.4 percent in this year's second quarter compared with 24.7 percent, excluding the impact of the appliance exit in last year's second quarter. Including costs and markdowns associated with the appliance exit, last year's second quarter gross margin was 23.3 percent.
Gross Profit Margin - Circuit City Group
Second Quarter Ended Six Months Ended
August 31 August 31
2001 2000 2001 2000
Circuit City Business 24.4% 24.7% 24.5% 24.5%
Appliance Merchandise
Markdowns and One-Time
Exit Costs - (1.4) - (0.7)
------ ------ ------ ------
Gross Profit Margin 24.4% 23.3% 24.5% 23.8%
"The reduction in the gross profit margin for the Circuit City business in part reflects a brief supply constraint as we made a transition in DIRECTV inventory during the quarter as well as slower wireless communications sales early in the quarter," said McCollough. "The DIRECTV supply issues have since been resolved and both of these high-margin service businesses were performing well as the quarter ended. Stronger sales of products such as digital televisions and weak sales in the low-margin personal computer category had positive impacts on the gross profit margin."
The expense ratio was 25.4 percent in this year's second quarter compared with 20.4 percent, excluding the impact of the appliance exit in the second quarter of last year. Including one-time appliance exit costs, last year's second quarter expense ratio was 20.5 percent.
Expense Ratio - Circuit City Group
Second Quarter Ended Six Months Ended
August 31 August 31
2001 2000 2001 2000
Circuit City Business 25.4% 20.4% 25.4% 20.8%
Appliance Exit Costs - 0.1 - -
------ ------ ------ ------
Expense Ratio 25.4% 20.5% 25.4% 20.8%
"The increase in this year's second quarter expense ratio is primarily a function of our lower comparable store sales," said McCollough. "Remodeling costs were higher in this year's second quarter because most of the costs associated with last year's full remodels in Florida were incurred in last year's third quarter. Advertising expense also was higher in the second quarter compared with last year, representing a shift in the timing of our spending. We continue to expect no increase in advertising costs for the full year. Similar to the first quarter of this year, our credit operations benefited the expense ratio, as funding costs declined more rapidly than yields."
During this year's second quarter, Circuit City remodeled 23 stores, opened four stores and relocated two stores. The company is testing two different remodel formats: a more extensive approach is being conducted in 10 stores in the Chicago market and two stores in Virginia, and a second, less costly version is being tested in 12 stores in the Washington, D.C., and Baltimore, Md., markets. The majority of the remodeling activities were completed by the end of the quarter.
"During this challenging period, we are focused on a comprehensive set of initiatives for enhancing our consumer offer, improving our levels of customer service and improving the overall cost efficiency of our operations," said McCollough. "We have launched an exciting branding campaign, communicating our customer-first commitment to consumers with new print, television and radio advertising. We continue to work on the evolution of our store design with remodel tests currently underway in two major markets. We have underway a number of other chain-wide upgrades, such as adding high-definition signal capability for all large-screen televisions, which we believe will enhance our ability to grow sales. Most important, we remain committed to being a comprehensive source of information on new technologies for our customers through a combination of well-trained professional sales counselors and hands-on high-quality demonstrations. The most recent example of this combination is the broadband kiosks currently being installed across our store base. In addition, we are improving our ability to measure customer satisfaction by adding new customer feedback tools, such as the BizRate online survey. We are pursuing a variety of customer-focused "Six Sigma" projects that have the potential to both improve productivity and reduce costs.
And finally, we continue to make progress on a number of supply chain improvements in the areas of demand forecasting, in-store store recovery and display enhancements, order frequency and on-time delivery performance from our vendors.
"Although we believe we are making progress across a number of fronts, we remain conservative in our outlook for the balance of the year," said McCollough. "While we believe that continued consumer interest in digital advances, combined with the introduction of new computing technologies and new gaming platforms, will spur sales in select categories, the uncertain economic and industry climate is likely to remain a factor in our overall performance. Immediately following the tragic events of September 11, the sales pace in our Circuit City stores weakened. However, after a weekend that was ahead of our plan, our month-to-date results returned to levels consistent with the trends through September 10. We currently have no new trends on which to base any changes in earnings expectations."
CarMax Group Review
"CarMax delivered consistently strong sales and earnings growth throughout the first half of the fiscal year," said W. Austin Ligon, president of CarMax. "Higher-than-anticipated sales were led by used-car sales growth driven by strong store traffic, better in-store execution and modest increases in average retails.
"The second quarter's 12.7 percent gross profit margin compares with 13.4 percent in the same period last year," said Ligon. "In our used-car business, we target average gross margin dollars per unit. Because we experienced higher average retails in used cars while also achieving our target gross margin dollars, the gross margin declined modestly on a percentage basis. These higher average retails also added to the expense leverage from our sales growth, more than offsetting the decline in gross margin. We also continued in the second quarter to benefit from increased yield spreads from our finance operation resulting from the lower cost of funds. Both these factors contributed to an expense ratio of 7.3 percent compared with 9.1 percent in last year's second quarter." CarMax's second quarter operating margin before interest and taxes rose to 5.4 percent this year from 4.3 percent last year.
Operating Ratios - CarMax Group
Second Quarter Ended Six Months Ended
August 31 August 31
2001 2000 2001 2000
Net Sales and Operating
Revenues 100.0% 100.0% 100.0% 100.0%
Gross Profit Margin 12.7% 13.4% 12.9% 13.5%
Expense Ratio 7.3% 9.1% 7.3% 9.3%
Operating Profit Margin 5.4% 4.3% 5.6% 4.2%
For the quarter, the CarMax business produced pretax earnings of $44.2 million, a 68 percent increase from pretax earnings of $26.2 million in last year's second quarter. The pretax profit margin was 5.2 percent this year compared with 3.9 percent in the same period last year.
"We have seen our used-car sales rebound strongly since the events of September 11, but have seen a slowdown in new-car sales," said Ligon. "Because our sales are heavily weighted toward and our profits driven by used-car sales, we are very comfortable with the current analyst consensus estimate of 20 cents per CarMax Group share for the second half of the fiscal year. If used-car sales trends continue as strong as we have seen following September 11, we would expect to outperform those estimates." CarMax previously announced expectations for net earnings of 16 cents to 18 cents per CarMax Group share for the second half of the fiscal year.
Conference Call Information
Circuit City Stores, Inc. will host a conference call for interested investors at 10:00 a.m. Eastern Time today to discuss the release of second quarter results for both the Circuit City Group and the CarMax Group. The conference call will begin with a discussion of the CarMax Group's results, followed by a discussion of the Circuit City Group's results.
Domestic investors may access the call at 1-888-381-5777 (passcode: Circuit City). International investors should dial 1-712-271-0067 (passcode: Circuit City). A live Web cast of the conference call will be available on the company's investor information home pages or at www.streetevents.com. To access the company's investor information home pages, log on to http://investor.CircuitCity.com or http://investor.CarMax.com.
A replay of the call will be available beginning at approximately 12 noon Eastern Time today and will run through midnight, September 24. Domestic investors may access the recording at 1-800-677-0672 and international investors at 1-402-998-1110. No access code is required. A replay of the call also will be available at the company's investor information home pages by the end of business today.
Circuit City is a leading national retailer of brand-name consumer electronics, personal computers and entertainment software. CarMax is the nation's leading specialty retailer of used cars. With headquarters in Richmond, Va., Circuit City Stores, Inc. operates 598 Circuit City Superstores and 29 mall-based Circuit City Express stores, giving it more locations in more markets than any other consumer electronics specialty retailer. The company operates 40 CarMax retail units in 37 locations, including 33 used-car superstores. CarMax operates 20 new-car franchises, most of which are integrated or co-located with its used-car superstores. For more information, access the company's Web sites at CircuitCity.com and CarMax.com.
This release contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Circuit City Stores, Inc. SEC filings.
CIRCUIT CITY STORES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
PERIODS ENDED AUGUST 31
(Amounts in thousands except per share data)
Three Months Six Months
------------ ----------
2001 2000 2001 2000
---- ---- ---- ----
NET SALES AND
OPERATING REVENUES $2,887,915 $3,179,781 $5,566,389 $6,254,632
Cost of sales, buying
and warehousing 2,282,845 2,477,990 4,394,966 4,869,579
Appliance exit costs - 28,326 - 28,326
---------- ---------- ---------- -----------
GROSS PROFIT 605,070 673,465 1,171,423 1,356,727
Selling, general
and administrative
expenses 579,465 572,298 1,115,459 1,151,504
Appliance exit costs - 1,670 - 1,670
Interest expense 1,654 3,583 4,646 9,804
---------- ---------- ---------- ----------
EARNINGS BEFORE
INCOME TAXES 23,951 95,914 51,318 193,749
Provision for income
taxes 9,101 36,447 19,501 73,624
---------- ---------- ---------- ----------
NET EARNINGS $14,850 $59,467 $31,817 $120,125
========== ========== ========== ==========
Net earnings
attributed to:
Circuit City Group
common stock $6,822 $55,341 $16,957 $112,464
CarMax Group
common stock $8,028 $4,126 $14,860 $7,661
========== ========== ========== ==========
Weighted average
common shares:
Circuit City
Group basic 205,329 203,770 205,229 203,318
========== ========== ========== ==========
Circuit City
Group diluted 206,924 205,494 206,304 205,686
========== ========== ========== ==========
CarMax Group basic 29,877 25,550 27,905 25,534
========== ========== ========== ==========
CarMax Group diluted 32,028 26,956 29,866 26,937
========== ========== ========== ==========
NET EARNINGS PER SHARE:
Circuit City Group:
Basic $0.03 $0.27 $ 0.08 $0.55
========== ========== ========== ==========
Diluted $0.03 $0.27 $ 0.08 $0.55
========== ========== ========== ==========
CarMax Group:
Basic $0.27 $0.16 $ 0.53 $0.30
========== ========== ========== ==========
Diluted $0.25 $0.15 $ 0.50 $0.28
========== ========== ========== ==========
CIRCUIT CITY STORES, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands)
August 31
---------
2001 2000
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $ 823,654 $ 432,700
Net accounts receivable 600,600 614,540
Inventory 1,560,461 1,846,749
Prepaid expenses and other
current assets 41,692 38,144
---------- ----------
Total Current Assets 3,026,407 2,932,133
Property and equipment, net 898,222 954,960
Other assets 34,251 46,359
---------- ----------
TOTAL ASSETS $ 3,958,880 $ 3,933,452
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of
long-term debt $ 102,441 $ 132,318
Accounts payable 947,405 1,017,295
Short-term debt 1,570 2,470
Accrued expenses and other
current liabilities 153,670 164,252
Deferred income taxes 103,017 63,791
---------- ----------
Total Current Liabilities 1,308,103 1,380,126
Long-term debt, excluding
current installments 15,528 118,393
Deferred revenue and
other liabilities 85,880 110,202
Deferred income taxes 11,649 18,689
---------- ----------
TOTAL LIABILITIES 1,421,160 1,627,410
STOCKHOLDERS' EQUITY 2,537,720 2,306,042
------------ ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,958,880 $ 3,933,452
============ ==========
CIRCUIT CITY GROUP
STATEMENTS OF EARNINGS (Unaudited)
PERIODS ENDED AUGUST 31
(Amounts in thousands except per share data)
Three Months Six Months
------------ ----------
2001 2000 2001 2000
---- ---- ---- ----
NET SALES AND
OPERATING REVENUES $2,036,552 $2,506,220 $3,918,206 $4,955,330
Cost of sales, buying
and warehousing 1,540,008 1,894,978 2,959,269 3,746,288
Appliance exit costs - 28,326 - 28,326
---------- ---------- ---------- -----------
GROSS PROFIT 496,544 582,916 958,937 1,180,716
Selling, general
and administrative
expenses 517,203 510,950 994,647 1,030,712
Appliance exit costs - 1,670 - 1,670
Interest (income)
expense (432) 625 9 3,318
---------- ---------- ---------- -----------
(LOSS) EARNINGS BEFORE
INCOME TAXES (20,227) 69,671 (35,719) 145,016
Income tax (benefit)
provision (7,686) 26,475 (13,573) 55,106
---------- ---------- ---------- -----------
(LOSS) EARNINGS BEFORE
INTER-GROUP INTEREST
IN THE CARMAX GROUP (12,541) 43,196 (22,146) 89,910
Net earnings related
to the Inter-Group
Interest in the
CarMax Group 19,363 12,145 39,103 22,554
---------- ---------- ---------- -----------
NET EARNINGS $6,822 $ 55,341 $ 16,957 $ 112,464
========== ========== ========== ==========
Weighted average
common shares:
Basic 205,329 203,770 205,229 203,318
========== ========== ========== ==========
Diluted 206,924 205,494 206,304 205,686
========== ========== ========== ==========
NET EARNINGS PER SHARE:
Basic $ 0.03 $ 0.27 $ 0.08 $ 0.55
========== ========== ========== ==========
Diluted $ 0.03 $ 0.27 $ 0.08 $ 0.55
========== ========== ========== ==========
CIRCUIT CITY GROUP
BALANCE SHEETS (Unaudited)
(Amounts in thousands)
August 31
---------
2001 2000
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $ 799,097 $ 425,810
Net accounts receivable 439,976 503,807
Merchandise inventory 1,173,558 1,559,146
Prepaid expenses and
other current assets 39,734 35,125
---------- ----------
Total Current Assets 2,452,365 2,523,888
Property and equipment, net 801,592 756,166
Inter-Group Interest in the
CarMax Group 290,241 280,924
Other assets 10,470 9,605
---------- ----------
TOTAL ASSETS $ 3,554,668 $ 3,570,583
============ ==========
LIABILITIES AND GROUP EQUITY
Current Liabilities:
Current installments of
long-term debt $ 14,659 $ 51,429
Accounts payable 848,229 940,308
Short-term debt 211 957
Accrued expenses and other
current liabilities 129,220 143,931
Deferred income taxes 81,666 53,059
---------- ----------
Total Current Liabilities 1,073,985 1,189,684
Long-term debt, excluding
current installments 14,702 54,632
Deferred revenue and other
liabilities 78,909 103,105
Deferred income taxes 8,122 12,568
---------- ----------
TOTAL LIABILITIES 1,175,718 1,359,989
GROUP EQUITY 2,378,950 2,210,594
---------- ----------
TOTAL LIABILITIES AND
GROUP EQUITY $ 3,554,668 $ 3,570,583
============ ==========
CARMAX GROUP
STATEMENTS OF EARNINGS (Unaudited)
PERIODS ENDED AUGUST 31
(Amounts in thousands except per share data)
Three Months Six Months
------------ ----------
2001 2000 2001 2000
---- ---- ---- ----
NET SALES AND
OPERATING REVENUES $ 851,363 $ 673,561 $1,648,183 $1,299,302
Cost of sales 742,837 583,012 1,435,697 1,123,291
---------- ---------- ---------- -----------
GROSS PROFIT 108,526 90,549 212,486 176,011
Selling, general and
administrative expenses 62,262 61,348 120,812 120,792
Interest expense 2,086 2,958 4,637 6,486
---------- ---------- ---------- -----------
EARNINGS BEFORE
INCOME TAXES 44,178 26,243 87,037 48,733
Provision for
income taxes 16,787 9,972 33,074 18,518
---------- ---------- ---------- -----------
NET EARNINGS $ 27,391 $ 16,271 $ 53,963 $ 30,215
========== ========== ========== ==========
Net earnings
attributed to:
Circuit City Group
common stock $ 19,363 $ 12,145 $ 39,103 $ 22,554
========== ========== ========== ==========
CarMax Group
common stock $ 8,028 $ 4,126 $ 14,860 $ 7,661
========== ========== ========== ==========
Weighted average
common shares:
Basic 29,877 25,550 27,905 25,534
========== ========== ========== ==========
Diluted 32,028 26,956 29,866 26,937
========== ========== ========== ==========
NET EARNINGS PER SHARE:
Basic $ 0.27 $ 0.16 $ 0.53 $ 0.30
========== ========== ========== ==========
Diluted $ 0.25 $ 0.15 $ 0.50 $ 0.28
========== ========== ========== ==========
CARMAX GROUP
BALANCE SHEETS (Unaudited)
(Amounts in thousands)
August 31
---------
2001 2000
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $ 24,557 $ 6,890
Net accounts receivable 160,624 110,733
Inventory 386,903 287,603
Prepaid expenses and other
current assets 1,958 3,019
---------- ----------
Total Current Assets 574,042 408,245
Property and equipment, net 96,630 198,794
Other assets 23,781 36,754
---------- ----------
TOTAL ASSETS $ 694,453 $ 643,793
============ ==========
LIABILITIES AND GROUP EQUITY
Current Liabilities:
Current installments of
long-term debt $ 87,782 $ 80,889
Accounts payable 99,176 76,987
Short-term debt 1,359 1,513
Accrued expenses and other
current liabilities 24,450 20,321
Deferred income taxes 21,351 10,732
---------- ----------
Total Current Liabilities 234,118 190,442
Long-term debt, excluding
current installments 826 63,761
Deferred revenue and other
liabilities 6,971 7,097
Deferred income taxes 3,527 6,121
---------- ----------
TOTAL LIABILITIES 245,442 267,421
GROUP EQUITY 449,011 376,372
---------- ----------
TOTAL LIABILITIES AND
GROUP EQUITY $ 694,453 $ 643,793
============ ==========
Note: Circuit City company logo is available for download at: http://www.businesswire.com/cgi-bin/photo.cgi?pw.072301/ap1
Note: CarMax company logo is available for download at: http://www.businesswire.com/cgi-bin/photo.cgi?pw.081401/AP1