CarMax Sees Minimal Hurricane Effect
RICHMOND, Va., Sept. 26 -- CarMax today reported that Hurricane Rita is expected to have a minimal effect on overall sales and earnings.
"We are very fortunate that the brunt of Rita's force bypassed Houston," said Austin Ligon, president and chief executive officer. "It appears now that our four Houston superstores and our Houston associates came through the storm largely unscathed."
"We will have closed the Houston locations for about a week," Ligon said, "but, as with most weather-related events, we expect we will recover nearly all of the resulting lost sales during the next few months. We do not, however, expect there to be any sales benefit from Rita. We believe that few, if any, consumers in Houston lost vehicles as a result of the storm."
About CarMax
CarMax, a Fortune 500 company, and one of the Fortune 2005 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 65 used car superstores in 29 markets. CarMax also operates seven new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended August 31, 2005, the company sold 278,178 used cars, which is 93 percent of the total 299,138 vehicles the company retailed during that period. For more information, access the CarMax website at http://www.carmax.com/.
Forward-Looking Statements
The company cautions readers that the statements contained in this release about the company's future business plans, operations, opportunities, or prospects, including without limitation any statements or factors regarding expected sales, margins, or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. For more details on factors that could affect expectations, see the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2005, and its quarterly or current reports as filed with or furnished to the Securities and Exchange Commission.
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