CarMax Reports Record First Quarter Sales
Raises First Quarter Earnings Expectations
RICHMOND, Va., June 5 -- CarMax, Inc. today reported record sales for the first quarter ended May 31, 2003.
* Total sales rose 17% to $1.17 billion from $1.01 billion in the first
quarter last year.
* Comparable store used unit sales increased 10% compared to last year's
first quarter.
* The company raised first quarter net earnings expectations to
approximately 34 cents per share.
Sales Commentary
"We are very pleased with our first quarter sales. Strong execution in each of our regions contributed to comp used unit sales growth that exceeded our first quarter expectations," said Austin Ligon, president and chief executive officer of CarMax. The company had estimated comparable store used unit growth of 7% to 9% in the first quarter.
"We also continue to be pleased with our new stores' performance," Ligon said. "The strength of our unique consumer offer is being demonstrated each time we enter a new market, as well as by our oldest superstores continuing to take market share and deliver sales growth. We believe the benefits of keeping annual geographic growth at a 15% to 20% store-on-store rate also are being confirmed. So far, we have been able to open our new superstores very successfully while continuing to enhance store productivity. Our new car performance this quarter was generally in line with the industry performance of the brands we represent."
First Quarter Earnings Expectations
"Used unit comps are up more than expected, and we continue to benefit from historically low costs of funds at CarMax Auto Finance," said Ligon. "Consequently, we have raised our first quarter earnings per share expectations to approximately 34 cents." On March 31, 2003, the company had estimated first quarter net earnings per share in the range of 29 cents to 31 cents. In last year's first quarter, CarMax earned 28 cents per share, including 2 cents per share of costs associated with the October 1, 2002, separation from Circuit City Stores, Inc.
Comparable Store Retail Vehicle Sales Change
Three Months Ended May 31
2003 2002
Vehicle units:
Used vehicles 10 % 12 %
New vehicles 3 % (4)%
Total 9 % 10 %
Vehicle dollars:
Used vehicles 9 % 14 %
New vehicles 3 % (4)%
Total 8 % 11 %
Percent Retail Vehicle Sales
Three Months Ended May 31
2003 2002
Vehicle units:
Used vehicles 91 % 89 %
New vehicles 9 11
Total 100 % 100 %
Vehicle dollars:
Used vehicles 87 % 85 %
New vehicles 13 15
Total 100 % 100 %
Retail Unit Sales
Three Months Ended May 31
2003 2002
Used vehicles 58,000 47,300
New vehicles 5,900 5,700
Total 63,900 53,000
Average Retail Selling Prices
Three Months Ended May 31
2003 2002
Used vehicles $15,300 $15,500
New vehicles $23,100 $23,000
Total vehicles $16,000 $16,300
Store Openings
CarMax entered the Las Vegas market in March and the Kansas City market in April, opening a standard used car superstore in each market. During the second quarter, CarMax plans to enter the Birmingham market with a standard superstore and to add a satellite superstore in Orlando. The company also expects to add 4 or 5 used car superstores during the second half of the fiscal year.
CarMax is the nation's leading specialty retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 42 used car superstores in 20 markets. CarMax also operates 16 new car franchises, 14 of which are integrated or co-located with its used car superstores. During the twelve month period ended May 31, 2003, the company sold 200,900 used cars, which is 90 percent of the total 223,400 the company sold during that period. For more information, access the CarMax Web site at www.carmax.com.