CarMax Reports Second Quarter Fiscal Year 2025 Results
CarMax reported positive results for Q2 FY2025, with retail used unit sales increasing 5.1% and comparable store sales up 4.3%. Key highlights include:
- Net earnings per diluted share rose 13.3% to $0.85
- Total gross profit increased 9.1% to $760.5 million
- SG&A expenses increased 4.2% to $610.6 million
- CarMax Auto Finance (CAF) income decreased 14.4% to $115.6 million
The company saw improvements in retail sales and margins, while managing SG&A costs. However, CAF faced pressure from increased loan loss provisions. CarMax repurchased $106.1 million in shares and opened two new store locations during the quarter.
CarMax ha riportato risultati positivi per il secondo trimestre dell'anno fiscale 2025, con un incremento delle vendite di unità usate al dettaglio del 5,1% e un aumento delle vendite comparabili del 4,3%. I punti salienti includono:
- Gli utili netti per azione diluita sono aumentati del 13,3% a $0,85
- Il profitto lordo totale è aumentato del 9,1% a $760,5 milioni
- Le spese SG&A sono aumentate del 4,2% a $610,6 milioni
- Il reddito di CarMax Auto Finance (CAF) è diminuito del 14,4% a $115,6 milioni
L'azienda ha registrato miglioramenti nelle vendite al dettaglio e nei margini, gestendo al contempo i costi SG&A. Tuttavia, CAF ha subito pressioni da un aumento delle accantonamenti per perdite sui prestiti. CarMax ha riacquistato azioni per un valore di $106,1 milioni e ha aperto due nuove sedi durante il trimestre.
CarMax reportó resultados positivos para el segundo trimestre del año fiscal 2025, con un aumento del 5.1% en las ventas de unidades usadas al por menor y un incremento del 4.3% en las ventas comparables. Los aspectos destacados incluyen:
- Las ganancias netas por acción diluida aumentaron un 13.3% a $0.85
- La ganancia bruta total se incrementó un 9.1% a $760.5 millones
- Los gastos SG&A aumentaron un 4.2% a $610.6 millones
- Los ingresos de CarMax Auto Finance (CAF) disminuyeron un 14.4% a $115.6 millones
La compañía vio mejoras en las ventas minoristas y márgenes, mientras gestionaba los costos SG&A. Sin embargo, CAF enfrentó presión debido a un aumento en las provisiones para pérdidas de préstamos. CarMax recompró acciones por un valor de $106.1 millones y abrió dos nuevas ubicaciones de tiendas durante el trimestre.
CarMax는 2025 회계연도 2분기 긍정적인 결과를 발표했으며, 소매 중고차 판매가 5.1% 증가하고 동종 매장 판매가 4.3% 상승했습니다. 주요 하이라이트는 다음과 같습니다:
- 희석 주당 순이익이 13.3% 증가하여 $0.85에 도달
- 총 매출 총이익이 9.1% 증가하여 $760.5 백만
- SG&A 비용이 4.2% 증가하여 $610.6 백만
- CarMax Auto Finance (CAF) 소득이 14.4% 감소하여 $115.6 백만
회사는 소매 판매 및 마진에서 개선을 보였으며 SG&A 비용을 관리했습니다. 그러나 CAF는 대출 손실 충당금 증가로 압박을 받았습니다. CarMax는 $106.1 백만의 자사주를 매입하고 분기 중에 두 개의 새로운 매장을 열었습니다.
CarMax a rapporté des résultats positifs pour le deuxième trimestre de l'exercice 2025, avec une augmentation des ventes d'unités d'occasion au détail de 5,1 % et une hausse des ventes comparables de 4,3 %. Les points saillants incluent :
- Le bénéfice net par action diluée a augmenté de 13,3 % pour atteindre 0,85 $
- Le bénéfice brut total a augmenté de 9,1 % pour atteindre 760,5 millions $
- Les dépenses SG&A ont augmenté de 4,2 % pour atteindre 610,6 millions $
- Les revenus de CarMax Auto Finance (CAF) ont diminué de 14,4 % pour atteindre 115,6 millions $
La société a enregistré des améliorations dans les ventes au détail et les marges, tout en gérant les coûts SG&A. Cependant, la CAF a subi des pressions dues à l'augmentation des provisions pour pertes sur prêts. CarMax a racheté pour 106,1 millions $ d'actions et a ouvert deux nouveaux magasins au cours du trimestre.
CarMax meldete positive Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, mit einem Anstieg der Einzelhandels-Verkäufe gebrauchter Einheiten um 5,1% und einem Anstieg der vergleichbaren Verkaufszahlen um 4,3%. Die wichtigsten Erkenntnisse sind:
- Der Nettoertrag je verwässerter Aktie stieg um 13,3% auf 0,85 $
- Der Gesamtschadenbetrag erhöhte sich um 9,1% auf 760,5 Millionen $
- Die SG&A-Ausgaben stiegen um 4,2% auf 610,6 Millionen $
- Die Einnahmen von CarMax Auto Finance (CAF) sanken um 14,4% auf 115,6 Millionen $
Das Unternehmen verzeichnete Verbesserungen im Einzelhandelsverkauf und in den Margen, während es die SG&A-Kosten managte. Dennoch sah sich CAF einem Druck durch erhöhte Rückstellungen für Kreditausfälle ausgesetzt. CarMax kaufte für 106,1 Millionen $ eigene Aktien zurück und eröffnete im Quartal zwei neue Filialen.
- Retail used unit sales increased 5.1% year-over-year
- Comparable store used unit sales grew 4.3%
- Net earnings per diluted share rose 13.3% to $0.85
- Total gross profit increased 9.1% to $760.5 million
- SG&A as a percent of gross profit decreased to 80.3% from 84.1% last year
- CarMax Auto Finance (CAF) income decreased 14.4% to $115.6 million
- Provision for loan losses increased to $112.6 million from $89.8 million last year
- Estimate of lifetime losses on existing loans increased by $52.2 million
Insights
CarMax's Q2 FY2025 results show positive momentum with 5.1% retail used unit sales growth and a 13.3% increase in earnings per share to
- Gross profit per retail used unit held steady at
$2,269 - Extended Protection Plan margins improved by
$69 per retail unit - SG&A expenses increased 4.2%, but improved as a percentage of gross profit
- CarMax Auto Finance income declined 14.4% due to higher loan loss provisions
The company's diversified business model and omni-channel capabilities position it well for future growth. However, the increase in loan loss provisions (
CarMax's Q2 results reflect a stabilizing used car market. The
The
The growth in online retail sales to
Delivers positive retail used unit growth and double-digit earnings increase
Second Quarter Highlights:
-
Retail used unit sales increased
5.1% and comparable store used unit sales increased4.3% from the prior year’s second quarter; wholesale units decreased0.3% . -
Gross profit per retail used unit of
$2,269 $975 $69 $575 $84 -
Bought 300,000 vehicles from consumers and dealers, up
2.9% versus last year’s second quarter.-
269,000 vehicles were purchased from consumers, down
1.2% from last year’s second quarter. -
31,000 vehicles were purchased through dealers, up
61.4% from last year’s second quarter.
-
269,000 vehicles were purchased from consumers, down
-
SG&A of
$610.6 million 4.2% from last year’s second quarter, partially driven by year-over-year dynamics related to the bonus accrual. Ongoing cost management efforts supported strong leverage in SG&A as a percent of gross profit. -
CarMax Auto Finance (CAF) income of
$115.6 million 14.4% from last year’s second quarter as an increase in the provision for loan losses outweighed growth in CAF’s average managed receivables and a stable net interest margin percentage.-
Increased estimate of lifetime losses on existing loans by
$52.2 million - Executed our inaugural higher prime and non-prime public asset-backed securitization deals, enabling the funding foundation for CAF’s full-spectrum lending platform.
-
Increased estimate of lifetime losses on existing loans by
-
Net earnings per diluted share of
$0.85 $0.75 13.3% . -
Repurchased
$106.1 million
CEO Commentary:
“We are pleased with the continued improvement of the business in the second quarter, which reflects the positive impact of our durable actions to further differentiate the value and experience we offer associates and customers, continued year-over-year price declines, and improved stability in vehicle valuations,” said Bill Nash, president and chief executive officer. “We grew retail used unit sales, delivered strong margins, continued to manage SG&A, and drove double-digit earnings growth while managing through industry wide auto loan loss pressure. Our diversified business model is well-positioned to drive future increases in sales and profitability as we further leverage our omni-channel capabilities.”
Second Quarter Business Performance Review:
Sales. Combined retail and wholesale used vehicle unit sales were 352,478, an increase of
Total retail used vehicle unit sales increased
Total wholesale vehicle unit sales decreased
We bought 300,000 vehicles from consumers and dealers, up
Other sales and revenues increased by
Online retail sales(1) accounted for
Gross Profit. Total gross profit was
Wholesale vehicle gross profit increased
Other gross profit increased
SG&A. Compared with the second quarter of fiscal 2024, SG&A expenses increased
CarMax Auto Finance.(3) CAF income decreased
As of August 31, 2024, the allowance for loan losses of
CAF’s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was
Share Repurchase Activity. During the second quarter of fiscal year 2025, we repurchased 1.4 million shares of common stock for
Location Openings. During the second quarter of fiscal 2025, we opened two new store locations in
(1) |
An online retail unit sale is defined as a sale where the customer completes all four of these major transactional activities remotely: reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating a remote sales order. |
(2) |
Revenue from online transactions is defined as revenue from retail sales that qualify for an online retail sale, as well as any EPP and third-party finance contribution, wholesale sales where the winning bid was an online bid, and all revenue earned by Edmunds. |
(3) |
Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions. |
Supplemental Financial Information
Amounts and percentage calculations may not total due to rounding.
Sales Components
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
|||||||||||||||||
(In millions) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|||||||||
Used vehicle sales |
$ |
5,677.1 |
|
$ |
5,591.1 |
|
|
1.5 |
% |
|
$ |
11,354.6 |
|
|
$ |
11,592.6 |
|
|
(2.1 |
)% |
Wholesale vehicle sales |
|
1,154.5 |
|
|
1,322.0 |
|
|
(12.7 |
)% |
|
|
2,410.9 |
|
|
|
2,836.3 |
|
|
(15.0 |
)% |
Other sales and revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Extended protection plan revenues |
|
121.4 |
|
|
101.7 |
|
|
19.3 |
% |
|
|
240.2 |
|
|
|
212.9 |
|
|
12.8 |
% |
Third-party finance income/(fees), net |
|
1.4 |
|
|
(1.5 |
) |
|
197.2 |
% |
|
|
(0.2 |
) |
|
|
(1.2 |
) |
|
80.5 |
% |
Advertising & subscription revenues (1) |
|
34.3 |
|
|
33.5 |
|
|
2.5 |
% |
|
|
69.0 |
|
|
|
64.9 |
|
|
6.4 |
% |
Other |
|
24.9 |
|
|
27.0 |
|
|
(8.0 |
)% |
|
|
52.5 |
|
|
|
55.3 |
|
|
(5.2 |
)% |
Total other sales and revenues |
|
182.0 |
|
|
160.7 |
|
|
13.2 |
% |
|
|
361.5 |
|
|
|
331.9 |
|
|
8.9 |
% |
Total net sales and operating revenues |
$ |
7,013.5 |
|
$ |
7,073.8 |
|
|
(0.9 |
)% |
|
$ |
14,126.9 |
|
|
$ |
14,760.9 |
|
|
(4.3 |
)% |
(1) |
Excludes intercompany revenues that have been eliminated in consolidation. |
Unit Sales
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||
Used vehicles |
211,020 |
|
200,825 |
|
5.1 |
% |
|
422,152 |
|
418,749 |
|
0.8 |
% |
Wholesale vehicles |
141,458 |
|
141,837 |
|
(0.3 |
)% |
|
289,143 |
|
302,885 |
|
(4.5 |
)% |
Average Selling Prices
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||
Used vehicles |
$ |
26,245 |
|
$ |
27,500 |
|
(4.6 |
)% |
|
$ |
26,386 |
|
$ |
27,374 |
|
(3.6 |
)% |
Wholesale vehicles |
$ |
7,768 |
|
$ |
8,923 |
|
(12.9 |
)% |
|
$ |
7,935 |
|
$ |
8,977 |
|
(11.6 |
)% |
Vehicle Sales Changes
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Used vehicle units |
5.1 |
% |
(7.4 |
)% |
|
0.8 |
% |
(8.5 |
)% |
Used vehicle revenues |
1.5 |
% |
(11.0 |
)% |
|
(2.1 |
)% |
(12.8 |
)% |
|
|
|
|
|
|
||||
Wholesale vehicle units |
(0.3 |
)% |
(11.2 |
)% |
|
(4.5 |
)% |
(12.5 |
)% |
Wholesale vehicle revenues |
(12.7 |
)% |
(21.8 |
)% |
|
(15.0 |
)% |
(25.5 |
)% |
Comparable Store Used Vehicle Sales Changes (1)
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Used vehicle units |
4.3 |
% |
(9.0 |
)% |
|
0.1 |
% |
(10.3 |
)% |
Used vehicle revenues |
(0.2 |
)% |
(12.5 |
)% |
|
(3.3 |
)% |
(14.4 |
)% |
(1) |
Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods. |
Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs) (1)
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
CAF (2) |
44.6 |
% |
46.4 |
% |
|
45.0 |
% |
45.9 |
% |
Tier 2 (3) |
17.7 |
% |
18.1 |
% |
|
18.2 |
% |
19.3 |
% |
Tier 3 (4) |
6.7 |
% |
6.4 |
% |
|
7.1 |
% |
6.6 |
% |
Other (5) |
31.0 |
% |
29.1 |
% |
|
29.7 |
% |
28.2 |
% |
Total |
100.0 |
% |
100.0 |
% |
|
100.0 |
% |
100.0 |
% |
(1) |
Calculated as used vehicle units financed for respective channel as a percentage of total used units sold. |
(2) |
Includes CAF's Tier 2 and Tier 3 loan originations, which represent approximately |
(3) |
Third-party finance providers who generally pay us a fee or to whom no fee is paid. |
(4) |
Third-party finance providers to whom we pay a fee. |
(5) |
Represents customers arranging their own financing and customers that do not require financing. |
Selected Operating Ratios
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||
(In millions) |
2024 |
% (1) |
|
2023 |
% (1) |
|
2024 |
% (1) |
|
2023 |
% (1) |
||||
Net sales and operating revenues |
$ |
7,013.5 |
100.0 |
|
$ |
7,073.8 |
100.0 |
|
$ |
14,126.9 |
100.0 |
|
$ |
14,760.9 |
100.0 |
Gross profit |
$ |
760.5 |
10.8 |
|
$ |
696.8 |
9.8 |
|
$ |
1,552.4 |
11.0 |
|
$ |
1,514.2 |
10.3 |
CarMax Auto Finance income |
$ |
115.6 |
1.6 |
|
$ |
135.0 |
1.9 |
|
$ |
262.6 |
1.9 |
|
$ |
272.3 |
1.8 |
Selling, general, and administrative expenses |
$ |
610.6 |
8.7 |
|
$ |
585.7 |
8.3 |
|
$ |
1,249.1 |
8.8 |
|
$ |
1,145.5 |
7.8 |
Interest expense |
$ |
27.0 |
0.4 |
|
$ |
31.6 |
0.4 |
|
$ |
58.4 |
0.4 |
|
$ |
62.1 |
0.4 |
Earnings before income taxes |
$ |
177.8 |
2.5 |
|
$ |
158.3 |
2.2 |
|
$ |
384.5 |
2.7 |
|
$ |
465.5 |
3.2 |
Net earnings |
$ |
132.8 |
1.9 |
|
$ |
118.6 |
1.7 |
|
$ |
285.2 |
2.0 |
|
$ |
346.9 |
2.4 |
(1) |
Calculated as a percentage of net sales and operating revenues. |
Gross Profit (1)
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||||
(In millions) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||
Used vehicle gross profit |
$ |
478.8 |
|
$ |
452.1 |
|
5.9 |
% |
|
$ |
974.3 |
|
$ |
966.7 |
|
0.8 |
% |
Wholesale vehicle gross profit |
|
137.9 |
|
|
136.6 |
|
0.9 |
% |
|
|
295.0 |
|
|
304.4 |
|
(3.1 |
)% |
Other gross profit |
|
143.8 |
|
|
108.1 |
|
33.1 |
% |
|
|
283.1 |
|
|
243.1 |
|
16.5 |
% |
Total |
$ |
760.5 |
|
$ |
696.8 |
|
9.1 |
% |
|
$ |
1,552.4 |
|
$ |
1,514.2 |
|
2.5 |
% |
(1) |
Amounts are net of intercompany eliminations. |
Gross Profit per Unit (1)
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||
|
$ per unit(2) |
%(3) |
$ per unit(2) |
%(3) |
|
$ per unit(2) |
%(3) |
$ per unit(2) |
%(3) |
||||
Used vehicle gross profit per unit |
$ |
2,269 |
8.4 |
$ |
2,251 |
8.1 |
|
$ |
2,308 |
8.6 |
$ |
2,309 |
8.3 |
Wholesale vehicle gross profit per unit |
$ |
975 |
11.9 |
$ |
963 |
10.3 |
|
$ |
1,020 |
12.2 |
$ |
1,005 |
10.7 |
Other gross profit per unit |
$ |
682 |
79.0 |
$ |
538 |
67.2 |
|
$ |
671 |
78.3 |
$ |
580 |
73.2 |
(1) |
Amounts are net of intercompany eliminations. Those eliminations had the effect of increasing used vehicle gross profit per unit and wholesale vehicle gross profit per unit and decreasing other gross profit per unit by immaterial amounts. |
(2) |
Calculated as category gross profit divided by its respective units sold, except the other category, which is divided by total used units sold. |
(3) |
Calculated as a percentage of its respective sales or revenue. |
SG&A Expenses (1)
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||||||||
(In millions) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Compensation and benefits: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits, excluding share-based compensation expense |
$ |
321.3 |
|
|
$ |
305.7 |
|
|
5.1 |
% |
|
$ |
649.4 |
|
|
$ |
636.4 |
|
|
2.0 |
% |
Share-based compensation expense |
|
32.1 |
|
|
|
31.3 |
|
|
2.7 |
% |
|
|
79.2 |
|
|
|
66.6 |
|
|
19.0 |
% |
Total compensation and benefits (2) |
$ |
353.4 |
|
|
$ |
337.0 |
|
|
4.9 |
% |
|
$ |
728.6 |
|
|
$ |
703.0 |
|
|
3.6 |
% |
Occupancy costs |
|
74.7 |
|
|
|
67.8 |
|
|
10.3 |
% |
|
|
145.3 |
|
|
|
133.9 |
|
|
8.5 |
% |
Advertising expense |
|
63.0 |
|
|
|
66.3 |
|
|
(5.0 |
)% |
|
|
134.7 |
|
|
|
138.2 |
|
|
(2.5 |
)% |
Other overhead costs (3) |
|
119.5 |
|
|
|
114.6 |
|
|
4.3 |
% |
|
|
240.5 |
|
|
|
170.4 |
|
|
41.2 |
% |
Total SG&A expenses |
$ |
610.6 |
|
|
$ |
585.7 |
|
|
4.2 |
% |
|
$ |
1,249.1 |
|
|
$ |
1,145.5 |
|
|
9.0 |
% |
SG&A as a % of gross profit |
|
80.3 |
% |
|
|
84.1 |
% |
|
(3.8 |
)% |
|
|
80.5 |
% |
|
|
75.7 |
% |
|
4.8 |
% |
(1) |
Amounts are net of intercompany eliminations. |
(2) |
Excludes compensation and benefits related to reconditioning and vehicle repair service, which are included in cost of sales. |
(3) |
Includes IT expenses, non-CAF bad debt, insurance, travel, charitable contributions, preopening and relocation costs, and other administrative expenses. |
Components of CAF Income and Other CAF Information
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||||||||
(In millions) |
2024 |
% (1) |
2023 |
% (1) |
|
2024 |
% (1) |
2023 |
% (1) |
||||||||||||
Interest margin: |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and fee income |
$ |
464.5 |
|
10.5 |
|
$ |
416.9 |
|
9.6 |
|
|
$ |
917.0 |
|
10.4 |
|
$ |
817.4 |
|
9.5 |
|
Interest expense |
|
(193.7 |
) |
(4.4 |
) |
|
(152.0 |
) |
(3.5 |
) |
|
|
(376.0 |
) |
(4.3 |
) |
|
(294.6 |
) |
(3.4 |
) |
Total interest margin |
|
270.8 |
|
6.1 |
|
|
264.9 |
|
6.1 |
|
|
|
541.0 |
|
6.1 |
|
|
522.8 |
|
6.1 |
|
Provision for loan losses |
|
(112.6 |
) |
(2.5 |
) |
|
(89.8 |
) |
(2.1 |
) |
|
|
(193.8 |
) |
(2.2 |
) |
|
(170.7 |
) |
(2.0 |
) |
Total interest margin after provision for loan losses |
|
158.2 |
|
3.6 |
|
|
175.1 |
|
4.0 |
|
|
|
347.2 |
|
3.9 |
|
|
352.1 |
|
4.1 |
|
Total direct expenses |
|
(42.6 |
) |
(1.0 |
) |
|
(40.2 |
) |
(0.9 |
) |
|
|
(84.6 |
) |
(1.0 |
) |
|
(79.8 |
) |
(0.9 |
) |
CarMax Auto Finance income |
$ |
115.6 |
|
2.6 |
|
$ |
135.0 |
|
3.1 |
|
|
$ |
262.6 |
|
3.0 |
|
$ |
272.3 |
|
3.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average managed receivables |
$ |
17,728.8 |
|
|
$ |
17,315.6 |
|
|
|
$ |
17,640.0 |
|
|
$ |
17,159.5 |
|
|
||||
Net loans originated |
$ |
2,159.7 |
|
|
$ |
2,197.2 |
|
|
|
$ |
4,425.5 |
|
|
$ |
4,537.6 |
|
|
||||
Net penetration rate |
|
42.0 |
% |
|
|
42.8 |
% |
|
|
|
42.6 |
% |
|
|
42.8 |
% |
|
||||
Weighted average contract rate |
|
11.5 |
% |
|
|
11.1 |
% |
|
|
|
11.4 |
% |
|
|
11.1 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ending allowance for loan losses |
$ |
500.8 |
|
|
$ |
538.0 |
|
|
|
$ |
500.8 |
|
|
$ |
538.0 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Warehouse facility information: |
|
|
|
|
|
|
|
|
|
||||||||||||
Ending funded receivables |
$ |
3,743.6 |
|
|
$ |
4,419.6 |
|
|
|
$ |
3,743.6 |
|
|
$ |
4,419.6 |
|
|
||||
Ending unused capacity |
$ |
2,356.4 |
|
|
$ |
1,180.4 |
|
|
|
$ |
2,356.4 |
|
|
$ |
1,180.4 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) |
Annualized percentage of total average managed receivables. |
Earnings Highlights
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||||
(In millions except per share data) |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||
Net earnings |
$ |
132.8 |
|
$ |
118.6 |
|
11.9 |
% |
|
$ |
285.2 |
|
$ |
346.9 |
|
(17.8 |
)% |
Diluted weighted average shares outstanding |
|
156.5 |
|
|
159.2 |
|
(1.7 |
)% |
|
|
157.1 |
|
|
158.9 |
|
(1.1 |
)% |
Net earnings per diluted share |
$ |
0.85 |
|
$ |
0.75 |
|
13.3 |
% |
|
$ |
1.82 |
|
$ |
2.18 |
|
(16.5 |
)% |
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, September 26, 2024. Domestic investors may access the call at 1-800-225-9448 (international callers dial 1-203-518-9708). The conference I.D. for both domestic and international callers is 3171396. A live webcast of the call will be available on our investor information home page at investors.carmax.com.
A replay of the webcast will be available on the company’s website at investors.carmax.com through December 18, 2024, or via telephone (for approximately one week) by dialing 1-800-839-3011 (or 1-402-220-7231 for international access) and entering the conference ID 3171396.
Third Quarter Fiscal 2025 Earnings Release Date
We currently plan to release results for the third quarter ending November 30, 2024, on Thursday, December 19, 2024, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in early December 2024.
About CarMax
CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year ended February 29, 2024, CarMax sold approximately 770,000 used vehicles and 550,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than
Forward-Looking Statements
We caution readers that the statements contained in this release that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, inventory, market share, financial targets, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “could,” “enable,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “positioned,” “predict,” “should,” “target,” “will” and other similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management’s current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:
- Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
-
Changes in general or regional
U.S. economic conditions, including inflationary pressures, fluctuating interest rates and the potential impact of international events. - Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
- Events that damage our reputation or harm the perception of the quality of our brand.
- Significant changes in prices of new and used vehicles.
- A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
- Our inability to realize the benefits associated with our omni-channel platform.
- Factors related to geographic and sales growth, including the inability to effectively manage our growth.
- Our inability to recruit, develop and retain associates and maintain positive associate relations.
- The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
- Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans receivable than anticipated.
- The failure or inability to realize the benefits associated with our strategic investments.
- Changes in consumer credit availability provided by our third-party finance providers.
- Changes in the availability of extended protection plan products from third-party providers.
- The performance of the third-party vendors we rely on for key components of our business.
- Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
-
The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to
U.S. generally accepted accounting principles. - The failure or inability to adequately protect our intellectual property.
- The occurrence of severe weather events.
- The failure or inability to meet our environmental goals or satisfy related disclosure requirements.
- Factors related to the geographic concentration of our stores.
- Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
- The failure of or inability to sufficiently enhance key information systems.
- Factors related to the regulatory and legislative environment in which we operate.
- The effect of various litigation matters.
- The volatility in the market price for our common stock.
For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2024, and our quarterly or current reports as filed with or furnished to the
CARMAX, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS |
|||||||||||||||||||||||
(UNAUDITED) |
|||||||||||||||||||||||
|
Three Months Ended August 31 |
|
Six Months Ended August 31 |
||||||||||||||||||||
(In thousands except per share data) |
2024 |
|
%(1) |
|
2023 |
|
%(1) |
|
2024 |
|
%(1) |
|
2023 |
|
%(1) |
||||||||
SALES AND OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Used vehicle sales |
$ |
5,677,081 |
|
80.9 |
$ |
5,591,143 |
|
79.0 |
|
$ |
11,354,557 |
|
|
80.4 |
|
$ |
11,592,614 |
|
|
78.5 |
|||
Wholesale vehicle sales |
|
1,154,465 |
|
16.5 |
|
1,321,975 |
|
18.7 |
|
|
2,410,904 |
|
|
17.1 |
|
|
2,836,338 |
|
|
19.2 |
|||
Other sales and revenues |
|
181,983 |
|
2.6 |
|
160,718 |
|
2.3 |
|
|
361,465 |
|
|
2.6 |
|
|
331,947 |
|
|
2.2 |
|||
NET SALES AND OPERATING REVENUES |
|
7,013,529 |
|
100.0 |
|
7,073,836 |
|
100.0 |
|
|
14,126,926 |
|
|
100.0 |
|
|
14,760,899 |
|
|
100.0 |
|||
COST OF SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Used vehicle cost of sales |
|
5,198,315 |
|
74.1 |
|
5,139,034 |
|
72.6 |
|
|
10,380,294 |
|
|
73.5 |
|
|
10,625,880 |
|
|
72.0 |
|||
Wholesale vehicle cost of sales |
|
1,016,590 |
|
14.5 |
|
1,185,359 |
|
16.8 |
|
|
2,115,901 |
|
|
15.0 |
|
|
2,531,897 |
|
|
17.2 |
|||
Other cost of sales |
|
38,157 |
|
0.5 |
|
52,678 |
|
0.7 |
|
|
78,369 |
|
|
0.6 |
|
|
88,967 |
|
|
0.6 |
|||
TOTAL COST OF SALES |
|
6,253,062 |
|
89.2 |
|
6,377,071 |
|
90.2 |
|
|
12,574,564 |
|
|
89.0 |
|
|
13,246,744 |
|
|
89.7 |
|||
GROSS PROFIT |
|
760,467 |
|
10.8 |
|
696,765 |
|
9.8 |
|
|
1,552,362 |
|
|
11.0 |
|
|
1,514,155 |
|
|
10.3 |
|||
CARMAX AUTO FINANCE INCOME |
|
115,580 |
|
1.6 |
|
134,987 |
|
1.9 |
|
|
262,550 |
|
|
1.9 |
|
|
272,345 |
|
|
1.8 |
|||
Selling, general, and administrative expenses |
|
610,562 |
|
8.7 |
|
585,694 |
|
8.3 |
|
|
1,249,140 |
|
|
8.8 |
|
|
1,145,531 |
|
|
7.8 |
|||
Depreciation and amortization |
|
63,901 |
|
0.9 |
|
58,817 |
|
0.8 |
|
|
125,770 |
|
|
0.9 |
|
|
117,236 |
|
|
0.8 |
|||
Interest expense |
|
27,021 |
|
0.4 |
|
31,585 |
|
0.4 |
|
|
58,383 |
|
|
0.4 |
|
|
62,051 |
|
|
0.4 |
|||
Other income |
|
(3,281 |
) |
— |
|
(2,630 |
) |
— |
|
|
(2,865 |
) |
|
— |
|
|
(3,844 |
) |
|
— |
|||
Earnings before income taxes |
|
177,844 |
|
2.5 |
|
158,286 |
|
2.2 |
|
|
384,484 |
|
|
2.7 |
|
|
465,526 |
|
|
3.2 |
|||
Income tax provision |
|
45,035 |
|
0.6 |
|
39,651 |
|
0.6 |
|
|
99,235 |
|
|
0.7 |
|
|
118,593 |
|
|
0.8 |
|||
NET EARNINGS |
$ |
132,809 |
|
1.9 |
$ |
118,635 |
|
1.7 |
|
$ |
285,249 |
|
|
2.0 |
|
$ |
346,933 |
|
|
2.4 |
|||
WEIGHTED AVERAGE COMMON SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
155,866 |
|
|
|
158,479 |
|
|
|
|
156,513 |
|
|
|
|
|
158,298 |
|
|
|
|||
Diluted |
|
156,526 |
|
|
|
159,238 |
|
|
|
|
157,116 |
|
|
|
|
|
158,900 |
|
|
|
|||
NET EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
$ |
0.85 |
|
|
$ |
0.75 |
|
|
|
$ |
1.82 |
|
|
|
|
$ |
2.19 |
|
|
|
|||
Diluted |
$ |
0.85 |
|
|
$ |
0.75 |
|
|
|
$ |
1.82 |
|
|
|
|
$ |
2.18 |
|
|
|
|||
(1) |
Percents are calculated as a percentage of net sales and operating revenues and may not total due to rounding. |
CARMAX, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(UNAUDITED) |
||||||||
|
As of |
|||||||
|
August 31 |
|
February 29 |
|
August 31 |
|||
(In thousands except share data) |
2024 |
|
2024 |
|
2023 |
|||
ASSETS |
|
|
|
|
|
|||
CURRENT ASSETS: |
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
524,667 |
|
$ |
574,142 |
|
$ |
521,098 |
Restricted cash from collections on auto loans receivable |
|
572,630 |
|
|
506,648 |
|
|
534,792 |
Accounts receivable, net |
|
228,112 |
|
|
221,153 |
|
|
271,874 |
Inventory |
|
3,397,746 |
|
|
3,678,070 |
|
|
3,839,286 |
Other current assets |
|
135,901 |
|
|
246,581 |
|
|
219,321 |
TOTAL CURRENT ASSETS |
|
4,859,056 |
|
|
5,226,594 |
|
|
5,386,371 |
Auto loans receivable, net |
|
17,413,589 |
|
|
17,011,844 |
|
|
16,999,750 |
Property and equipment, net |
|
3,763,089 |
|
|
3,665,530 |
|
|
3,538,683 |
Deferred income taxes |
|
126,883 |
|
|
98,790 |
|
|
111,919 |
Operating lease assets |
|
495,783 |
|
|
520,717 |
|
|
540,718 |
Goodwill |
|
141,258 |
|
|
141,258 |
|
|
141,258 |
Other assets |
|
496,160 |
|
|
532,064 |
|
|
581,462 |
TOTAL ASSETS |
$ |
27,295,818 |
|
$ |
27,196,797 |
|
$ |
27,300,161 |
|
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|||
CURRENT LIABILITIES: |
|
|
|
|
|
|||
Accounts payable |
$ |
1,008,044 |
|
$ |
933,708 |
|
$ |
932,068 |
Accrued expenses and other current liabilities |
|
483,922 |
|
|
523,971 |
|
|
513,137 |
Accrued income taxes |
|
34,063 |
|
|
— |
|
|
103 |
Current portion of operating lease liabilities |
|
57,959 |
|
|
57,161 |
|
|
55,441 |
Current portion of long-term debt |
|
21,771 |
|
|
313,282 |
|
|
312,230 |
Current portion of non-recourse notes payable |
|
550,045 |
|
|
484,167 |
|
|
507,409 |
TOTAL CURRENT LIABILITIES |
|
2,155,804 |
|
|
2,312,289 |
|
|
2,320,388 |
Long-term debt, excluding current portion |
|
1,588,260 |
|
|
1,602,355 |
|
|
1,608,724 |
Non-recourse notes payable, excluding current portion |
|
16,516,943 |
|
|
16,357,301 |
|
|
16,475,698 |
Operating lease liabilities, excluding current portion |
|
473,158 |
|
|
496,210 |
|
|
516,839 |
Other liabilities |
|
382,044 |
|
|
354,902 |
|
|
372,853 |
TOTAL LIABILITIES |
|
21,116,209 |
|
|
21,123,057 |
|
|
21,294,502 |
|
|
|
|
|
|
|||
Commitments and contingent liabilities |
|
|
|
|
|
|||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|||
Common stock, |
|
77,666 |
|
|
78,806 |
|
|
79,328 |
Capital in excess of par value |
|
1,856,385 |
|
|
1,808,746 |
|
|
1,777,707 |
Accumulated other comprehensive income |
|
9,057 |
|
|
59,279 |
|
|
78,597 |
Retained earnings |
|
4,236,501 |
|
|
4,126,909 |
|
|
4,070,027 |
TOTAL SHAREHOLDERS’ EQUITY |
|
6,179,609 |
|
|
6,073,740 |
|
|
6,005,659 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
27,295,818 |
|
$ |
27,196,797 |
|
$ |
27,300,161 |
|
|
|
|
|
|
|||
CARMAX, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
|
Six Months Ended August 31 |
||||||
(In thousands) |
2024 |
|
2023 |
||||
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
285,249 |
|
|
$ |
346,933 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
141,964 |
|
|
|
126,971 |
|
Share-based compensation expense |
|
82,703 |
|
|
|
69,445 |
|
Provision for loan losses |
|
193,798 |
|
|
|
170,672 |
|
Provision for cancellation reserves |
|
49,302 |
|
|
|
45,199 |
|
Deferred income tax benefit |
|
(11,789 |
) |
|
|
(24,845 |
) |
Other |
|
2,039 |
|
|
|
3,868 |
|
Net (increase) decrease in: |
|
|
|
||||
Accounts receivable, net |
|
(6,959 |
) |
|
|
26,909 |
|
Inventory |
|
280,324 |
|
|
|
(113,144 |
) |
Other current assets |
|
111,438 |
|
|
|
33,431 |
|
Auto loans receivable, net |
|
(595,543 |
) |
|
|
(828,631 |
) |
Other assets |
|
(9,486 |
) |
|
|
(6,668 |
) |
Net increase (decrease) in: |
|
|
|
||||
Accounts payable, accrued expenses and other |
|
|
|
||||
current liabilities and accrued income taxes |
|
23,474 |
|
|
|
132,566 |
|
Other liabilities |
|
(45,100 |
) |
|
|
(43,826 |
) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
|
501,414 |
|
|
|
(61,120 |
) |
INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(213,123 |
) |
|
|
(210,167 |
) |
Proceeds from disposal of property and equipment |
|
130 |
|
|
|
1,247 |
|
Purchases of investments |
|
(3,091 |
) |
|
|
(3,236 |
) |
Sales and returns of investments |
|
621 |
|
|
|
405 |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(215,463 |
) |
|
|
(211,751 |
) |
FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from issuances of long-term debt |
|
— |
|
|
|
134,600 |
|
Payments on long-term debt |
|
(306,274 |
) |
|
|
(240,093 |
) |
Cash paid for debt issuance costs |
|
(12,985 |
) |
|
|
(10,650 |
) |
Payments on finance lease obligations |
|
(9,056 |
) |
|
|
(7,810 |
) |
Issuances of non-recourse notes payable |
|
6,971,000 |
|
|
|
6,179,929 |
|
Payments on non-recourse notes payable |
|
(6,742,743 |
) |
|
|
(5,532,403 |
) |
Repurchase and retirement of common stock |
|
(213,305 |
) |
|
|
(4,143 |
) |
Equity issuances |
|
30,296 |
|
|
|
27,534 |
|
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
|
(283,067 |
) |
|
|
546,964 |
|
Increase in cash, cash equivalents, and restricted cash |
|
2,884 |
|
|
|
274,093 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
1,250,410 |
|
|
|
951,004 |
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD |
$ |
1,253,294 |
|
|
$ |
1,225,097 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926151893/en/
Investors:
David Lowenstein, Vice President, Investor Relations
investor_relations@carmax.com, (804) 747-0422 x7865
Media:
pr@carmax.com, (855) 887-2915
Source: CarMax, Inc.
FAQ
What was CarMax's (KMX) retail used unit sales growth in Q2 FY2025?
How much did CarMax's (KMX) earnings per share grow in Q2 FY2025?
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How many vehicles did CarMax (KMX) purchase from consumers and dealers in Q2 FY2025?
