CarMax Reports Record Sales
RICHMOND, Va., Dec. 5, 2002; CarMax, Inc.
today reported record sales for the third quarter ended November 30, 2002.
* Total sales rose 10 percent to $936.8 million from $852.7 million in the
same period last year.
* Used unit comparable store sales rose 8 percent.
"We were quite pleased to achieve a third quarter used unit comp growth of
8 percent on top of last year's exceptional 29 percent. This continues the
strong growth pace that we experienced during the first half of our fiscal
year," said Austin Ligon, president and chief executive officer of CarMax. "I
am also happy to report that our newly opened stores are consistently
outperforming our original expectations. Both of these trends reflect the
strong consumer enthusiasm for the unique CarMax offer and our consistency in
delivering it in both established and newly opened stores.
"Our proprietary inventory management and pricing systems help us to
adjust quickly to market pricing movements and to turn our inventory rapidly,"
said Ligon. "As a result, we expect to achieve our third quarter average-
gross-margin-dollars-per-unit target even though used vehicle prices have
fallen at a slightly greater rate during this year's model-year changeover
period than in prior recent years. Consequently, we believe we will achieve
our third quarter earnings expectations." CarMax previously announced its
third quarter expectations to include earnings per share that are roughly flat
with the 17 cents reported in last year's third quarter, not including
approximately 5 cents of one-time costs associated with its October 1, 2002,
separation from Circuit City.
Comparable Store Sales Change
Three Months Nine Months
Ended Ended
November 30 November 30
2002 2001 2002 2001
Vehicle units:
Used vehicles 8 % 29 % 11 % 24 %
New vehicles (16)% 46 % (5)% 24 %
Total 5 % 31 % 9 % 24 %
Vehicle dollars:
Used vehicles 8 % 36 % 11 % 31 %
New vehicles (17)% 51 % (4)% 28 %
Total 3 % 38 % 9 % 30 %
Percent Vehicle Sales by Category
Three Months Nine Months
Ended Ended
November 30 November 30
2002 2001 2002 2001
Vehicle units:
Used vehicles 90 % 86 % 89 % 86 %
New vehicles 10 14 11 14
Total 100 % 100 % 100 % 100 %
Vehicle dollars:
Used vehicles 85 % 80 % 85 % 81 %
New vehicles 15 20 15 19
Total 100 % 100 % 100 % 100 %
Unit Sales by Category
Three Months Nine Months
Ended Ended
November 30 November 30
2002 2001 2002 2001
Used vehicles 45,300 38,700 143,400 122,200
New vehicles 5,000 6,400 17,300 19,200
Total 50,300 45,100 160,700 141,400
Average Retails
Three Months Nine Months
Ended Ended
November 30 November 30
2002 2001 2002 2001
Used vehicles $15,200 $15,100 $15,400 $15,200
New vehicles $23,200 $23,500 $23,200 $23,100
Weighted average $16,000 $16,300 $16,200 $16,300
CarMax opened two superstores during the third quarter, entering the
Knoxville, Tenn., market with a standard superstore and adding a satellite
superstore in Charlotte, N.C. During the fourth quarter, CarMax expects to
add satellite superstores in the Atlanta, Ga., and Chicago markets, bringing
to five the number of superstores opened during fiscal 2003.
