CarMax Reports Record First Quarter Sales
RICHMOND, Va., June 4 -- CarMax, Inc. today reported record sales for the first quarter ended May 3, 20041, 2004.
* Comparable store used unit sales declined 3% compared with last year's
first quarter, consistent with the expectations we set in our May 12th
announcement.
* Total used unit sales grew 7% in the first quarter.
* Total dollar sales increased 13% to $1.32 billion from $1.17 billion in
the first quarter of last year.
Sales Commentary
"The difference between our 13% dollar sales growth and the 7% growth in unit sales was driven primarily by increases in wholesale sales and in average retail prices," said Austin Ligon, president and chief executive officer. "Used car sales continued to be volatile during the second half of May. The volatility was felt broadly across virtually all of our used car stores and markets."
First Quarter Earnings Expectations
"For the first quarter, we continue to expect earnings per share in the range of 30 to 32 cents," Ligon said. "We plan to offer guidance for our second quarter when we release our first quarter earnings report on June 17."
Store Openings
CarMax opened three standard-sized superstores during the first quarter, entering the Indianapolis, Ind., and Columbia, S.C., markets and adding a third superstore in the Los Angeles market. The company plans to open approximately seven superstores during the balance of the fiscal year, bringing total fiscal 2005 store openings to approximately ten.
Earnings Release and Conference Call Information
> Retail Vehicle Sales Changes
Three Months Ended
May 31
2004 2003
Comparable store vehicle sales:
Used vehicle units (3)% 10 %
New vehicle units 11 % 3 %
Total (2)% 9 %
Used vehicle dollars 0 % 9 %
New vehicle dollars 12 % 3 %
Total 2 % 8 %
Total vehicle sales:
Used vehicle units 7 % 23 %
New vehicle units (1)% 3 %
Total 7 % 21 %
Used vehicle dollars 11 % 21 %
New vehicle dollars 0 % 3 %
Total 9 % 18 %
Retail Vehicle Sales Mix
Three Months Ended
May 31
2004 2003
Vehicle units:
Used vehicles 91 % 91 %
New vehicles 9 9
Total 100 % 100 %
Vehicle dollars:
Used vehicles 88 % 87 %
New vehicles 12 13
Total 100 % 100 %
Retail Unit Sales
Three Months Ended
May 31
2004 2003
Used vehicles 62,353 58,045
New vehicles 5,844 5,883
Total 68,197 63,928
Average Retail Selling Prices
Three Months Ended
May 31
2004 2003
Used vehicles $15,663 $15,266
New vehicles $23,224 $23,063
Weighted average $16,311 $15,983
About CarMax
CarMax, a Fortune 500 company, is the nation's leading specialty retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 52 used car superstores in 25 markets. CarMax also operates 12 new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended May 31, 2004, the company sold 228,407 used cars, which is 91 percent of the total 250,009 vehicles the company sold during that period. For more information, access the CarMax Web site at http://www.carmax.com/.