CarMax Reports Third Quarter Fiscal Year 2025 Results
CarMax (KMX) reported strong Q3 FY2025 results with significant earnings growth. Key highlights include:
- Net earnings per diluted share increased 55.8% to $0.81
- Total gross profit rose 10.6% to $677.6 million
- Retail used unit sales grew 5.4% with comparable store sales up 4.3%
- Wholesale units increased 6.3%
- CarMax Auto Finance income grew 7.6% to $159.9 million
- Company repurchased $114.8 million in shares
The company demonstrated positive momentum across its business model, with improvements in unit sales, margins, and CAF income. Online retail sales represented 15% of retail unit sales, while total revenue from online transactions accounted for 32% of net revenues.
CarMax (KMX) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2025, con una significativa crescita degli utili. I punti salienti includono:
- Gli utili netti per azione diluita sono aumentati del 55,8% a $0,81
- Il profitto lordo totale è cresciuto del 10,6% a $677,6 milioni
- Le vendite di unità usate al dettaglio sono aumentate del 5,4%, con le vendite nei negozi comparabili in crescita del 4,3%
- Le unità all'ingrosso sono aumentate del 6,3%
- I guadagni di CarMax Auto Finance sono cresciuti del 7,6% a $159,9 milioni
- L'azienda ha riacquistato azioni per $114,8 milioni
L'azienda ha dimostrato un momento positivo nel suo modello di business, con miglioramenti nelle vendite di unità, nei margini e nei guadagni CAF. Le vendite online al dettaglio hanno rappresentato il 15% delle vendite di unità al dettaglio, mentre il fatturato totale dalle transazioni online ha costituito il 32% dei ricavi netti.
CarMax (KMX) reportó resultados sólidos para el tercer trimestre del año fiscal 2025, con un crecimiento significativo de las ganancias. Los aspectos más destacados incluyen:
- Las ganancias netas por acción diluida aumentaron un 55.8% a $0.81
- El beneficio bruto total aumentó un 10.6% a $677.6 millones
- Las ventas de unidades usadas al por menor crecieron un 5.4%, con ventas comparables en tiendas aumentando un 4.3%
- Las unidades al por mayor aumentaron un 6.3%
- Los ingresos de CarMax Auto Finance crecieron un 7.6% a $159.9 millones
- La empresa recompró $114.8 millones en acciones
La compañía mostró un impulso positivo en su modelo de negocio, con mejoras en ventas de unidades, márgenes e ingresos de CAF. Las ventas al por menor en línea representaron el 15% de las ventas de unidades, mientras que los ingresos totales de las transacciones en línea representaron el 32% de los ingresos netos.
CarMax (KMX)는 2025 회계연도 3분기 결과를 발표하며 눈에 띄는 이익 성장을 기록했습니다. 주요 내용은 다음과 같습니다:
- 희석 주당 순이익이 55.8% 증가하여 $0.81에 도달
- 총 총이익이 10.6% 증가하여 $677.6백만
- 소매 중고차 판매가 5.4% 증가하고, 동일 매장 판매가 4.3% 증가
- 도매 유닛이 6.3% 증가
- CarMax Auto Finance의 수익이 7.6% 증가하여 $159.9백만
- 회사는 $114.8백만의 주식을 재구매했습니다
이 회사는 유닛 판매, 마진 및 CAF 수익에서 긍정적인 모멘텀을 보여주었습니다. 온라인 소매 판매는 소매 유닛 판매의 15%를 차지하며, 온라인 거래에서의 총 수익은 순수익의 32%를 차지했습니다.
CarMax (KMX) a annoncé de solides résultats pour le troisième trimestre de l'exercice fiscal 2025, avec une croissance significative des bénéfices. Les points saillants comprennent :
- Le bénéfice net par action diluée a augmenté de 55,8 % à 0,81 $
- Le bénéfice brut total a augmenté de 10,6 % pour atteindre 677,6 millions de dollars
- Les ventes d'unités d'occasion au détail ont augmenté de 5,4 %, tandis que les ventes des magasins comparables ont augmenté de 4,3 %
- Les unités de gros ont augmenté de 6,3 %
- Les revenus de CarMax Auto Finance ont augmenté de 7,6 % à 159,9 millions de dollars
- La société a racheté pour 114,8 millions de dollars d'actions
L'entreprise a montré un élan positif dans son modèle commercial, avec des améliorations des ventes d'unités, des marges et des revenus CAF. Les ventes en ligne représentaient 15 % des ventes d'unités au détail, tandis que les revenus totaux des transactions en ligne représentaient 32 % des revenus nets.
CarMax (KMX) hat starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 gemeldet, mit einem signifikanten Gewinnwachstum. Die wichtigsten Höhepunkte sind:
- Der Nettogewinn pro verwässerter Aktie stieg um 55,8% auf $0,81
- Der Gesamtbruttogewinn stieg um 10,6% auf $677,6 Millionen
- Der Einzelverkauf von gebrauchten Einheiten wuchs um 5,4%, während der vergleichbare Umsatz in den Geschäften um 4,3% zunahm
- Die Großhandelseinheiten stiegen um 6,3%
- Das Einkommen von CarMax Auto Finance wuchs um 7,6% auf $159,9 Millionen
- Das Unternehmen hat Aktien im Wert von $114,8 Millionen zurückgekauft
Das Unternehmen zeigte einen positiven Momentum in seinem Geschäftsmodell, mit Verbesserungen bei den Verkaufseinheiten, Margen und CAF-Einkommen. Die Online-Einzelhandelsverkäufe machten 15% der Einzelhandelsverkaufszahlen aus, während die Gesamteinnahmen aus Online-Transaktionen 32% der Nettoerlöse ausmachten.
- Net earnings per share increased 55.8% to $0.81
- Total gross profit grew 10.6% to $677.6 million
- Retail used unit sales increased 5.4%
- Comparable store sales rose 4.3%
- CarMax Auto Finance income up 7.6% to $159.9 million
- Vehicle purchases from consumers and dealers increased 7.9%
- Average retail selling price declined $1,100 per unit (3.9%)
- Average wholesale selling price decreased $500 per unit (5.7%)
- SG&A expenses increased 2.8% to $575.8 million
Insights
The Q3 FY2025 results showcase remarkable performance with 55.8% EPS growth to
The stable vehicle valuation environment helped maintain solid unit economics, with retail GPU at
The company's financial position remains strong, with continued share repurchases of
CarMax's omnichannel strategy continues to gain traction, with
The stable pricing environment, with average retail selling prices down
Achieved over
Third Quarter Highlights:(1)
-
Retail used unit sales increased
5.4% and comparable store used unit sales increased4.3% ; wholesale units increased6.3% . -
Total gross profit of
$677.6 million 10.6% driven by unit volumes and strong unit margin performance.-
Gross profit per retail used unit of
$2,306 -
Gross profit per wholesale unit of
$1,015 $54 -
Extended Protection Plans (EPP) margin per retail unit of
$573 $53 -
Service margin growth of
$60
-
Gross profit per retail used unit of
-
Bought 270,000 vehicles from consumers and dealers, an increase of
7.9% -
237,000 vehicles were purchased from consumers, up
4.1% -
33,000 vehicles were purchased through dealers, up
46.7%
-
237,000 vehicles were purchased from consumers, up
-
SG&A of
$575.8 million 2.8% . Ongoing cost management efforts supported strong leverage in SG&A as a percent of gross profit. -
CarMax Auto Finance (CAF) income of
$159.9 million 7.6% , due to growth in CAF’s net interest margin percentage and average managed receivables. The provision for loan losses reflected performance largely in line with expectations set at the end of this year’s second quarter. -
Net earnings per diluted share of
$0.81 55.8% from$0.52 -
Repurchased
$114.8 million
(1) Comparisons to the prior year’s third quarter unless otherwise stated |
CEO Commentary:
“I am pleased with the positive momentum that we are driving across our diversified business model. Our solid execution and a more stable environment for vehicle valuations enabled us to deliver robust EPS growth driven by increases in unit sales and buys, solid margins, growth in CAF income, and ongoing management of SG&A,” said Bill Nash, president and chief executive officer. “Our associates and our best-in-class omni-channel experiences are key differentiators that enable our success. We are excited to leverage the capabilities we have built to drive growth as we access the largest total addressable market within our industry.”
Third Quarter Business Performance Review:
Sales. Combined retail and wholesale used vehicle unit sales were 320,256, an increase of
Total retail used vehicle unit sales increased
Total wholesale vehicle unit sales increased
We bought 270,000 vehicles from consumers and dealers, up
Other sales and revenues increased by
Online retail sales(2) accounted for
Gross Profit. Total gross profit was
Wholesale vehicle gross profit increased
Other gross profit increased
SG&A. Compared with the third quarter of fiscal 2024, SG&A expenses increased
CarMax Auto Finance.(4) CAF income increased
As of November 30, 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 third quarter of fiscal year 2025, we repurchased 1.5 million shares of common stock for
Location Openings. During the third quarter of fiscal 2025, we opened one new store location in Alliance,
(2) |
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. |
(3) |
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. |
(4) |
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 November 30 |
|
Nine Months Ended November 30 |
||||||||||||||||
(In millions) |
|
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
||
Used vehicle sales |
$ |
4,888.9 |
|
$ |
4,832.1 |
|
|
1.2 |
% |
|
$ |
16,243.4 |
|
$ |
16,424.7 |
|
|
(1.1 |
)% |
Wholesale vehicle sales |
|
1,168.6 |
|
|
1,165.2 |
|
|
0.3 |
% |
|
|
3,579.5 |
|
|
4,001.5 |
|
|
(10.5 |
)% |
Other sales and revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Extended protection plan revenues |
|
105.5 |
|
|
90.8 |
|
|
16.1 |
% |
|
|
345.7 |
|
|
303.8 |
|
|
13.8 |
% |
Third-party finance income/(fees), net |
|
1.0 |
|
|
(1.2 |
) |
|
183.7 |
% |
|
|
0.8 |
|
|
(2.4 |
) |
|
133.5 |
% |
Advertising & subscription revenues (1) |
|
36.1 |
|
|
36.7 |
|
|
(1.5 |
)% |
|
|
105.1 |
|
|
101.6 |
|
|
3.5 |
% |
Other |
|
23.3 |
|
|
25.0 |
|
|
(6.9 |
)% |
|
|
75.7 |
|
|
80.2 |
|
|
(5.7 |
)% |
Total other sales and revenues |
|
165.9 |
|
|
151.3 |
|
|
9.7 |
% |
|
|
527.3 |
|
|
483.2 |
|
|
9.1 |
% |
Total net sales and operating revenues |
$ |
6,223.4 |
|
$ |
6,148.5 |
|
|
1.2 |
% |
|
$ |
20,350.3 |
|
$ |
20,909.4 |
|
|
(2.7 |
)% |
(1) |
Excludes intercompany revenues that have been eliminated in consolidation. |
Unit Sales
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||
Used vehicles |
184,243 |
|
174,766 |
|
5.4 |
% |
|
606,395 |
|
593,515 |
|
2.2 |
% |
Wholesale vehicles |
136,013 |
|
127,900 |
|
6.3 |
% |
|
425,156 |
|
430,785 |
|
(1.3 |
)% |
Average Selling Prices
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
||
Used vehicles |
$ |
26,153 |
|
$ |
27,228 |
|
(3.9 |
)% |
|
$ |
26,315 |
|
$ |
27,331 |
|
(3.7 |
)% |
Wholesale vehicles |
$ |
8,177 |
|
$ |
8,674 |
|
(5.7 |
)% |
|
$ |
8,012 |
|
$ |
8,887 |
|
(9.8 |
)% |
Vehicle Sales Changes
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Used vehicle units |
5.4 |
% |
(2.9 |
)% |
|
2.2 |
% |
(7.0 |
)% |
Used vehicle revenues |
1.2 |
% |
(7.2 |
)% |
|
(1.1 |
)% |
(11.2 |
)% |
|
|
|
|
|
|
||||
Wholesale vehicle units |
6.3 |
% |
7.7 |
% |
|
(1.3 |
)% |
(7.3 |
)% |
Wholesale vehicle revenues |
0.3 |
% |
1.1 |
% |
|
(10.5 |
)% |
(19.3 |
)% |
Comparable Store Used Vehicle Sales Changes (1)
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
Used vehicle units |
4.3 |
% |
(4.1 |
)% |
|
1.3 |
% |
(8.5 |
)% |
Used vehicle revenues |
0.5 |
% |
(8.3 |
)% |
|
(2.2 |
)% |
(12.7 |
)% |
(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 November 30 |
|
Nine Months Ended November 30 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||
CAF (2) |
45.7 |
% |
46.5 |
% |
|
45.2 |
% |
46.1 |
% |
Tier 2 (3) |
17.9 |
% |
18.0 |
% |
|
18.1 |
% |
18.9 |
% |
Tier 3 (4) |
6.5 |
% |
6.9 |
% |
|
6.9 |
% |
6.7 |
% |
Other (5) |
29.9 |
% |
28.6 |
% |
|
29.8 |
% |
28.3 |
% |
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 November 30 |
|
Nine Months Ended November 30 |
||||||||||||
(In millions) |
2024 |
% (1) |
|
2023 |
% (1) |
|
2024 |
% (1) |
|
2023 |
% (1) |
||||
Net sales and operating revenues |
$ |
6,223.4 |
100.0 |
|
$ |
6,148.5 |
100.0 |
|
$ |
20,350.3 |
100.0 |
|
$ |
20,909.4 |
100.0 |
Gross profit |
$ |
677.6 |
10.9 |
|
$ |
612.9 |
10.0 |
|
$ |
2,230.0 |
11.0 |
|
$ |
2,127.0 |
10.2 |
CarMax Auto Finance income |
$ |
159.9 |
2.6 |
|
$ |
148.7 |
2.4 |
|
$ |
422.4 |
2.1 |
|
$ |
421.0 |
2.0 |
Selling, general, and administrative expenses |
$ |
575.8 |
9.3 |
|
$ |
560.0 |
9.1 |
|
$ |
1,824.9 |
9.0 |
|
$ |
1,705.5 |
8.2 |
Interest expense |
$ |
25.4 |
0.4 |
|
$ |
31.3 |
0.5 |
|
$ |
83.8 |
0.4 |
|
$ |
93.3 |
0.4 |
Earnings before income taxes |
$ |
166.5 |
2.7 |
|
$ |
110.6 |
1.8 |
|
$ |
551.0 |
2.7 |
|
$ |
576.1 |
2.8 |
Net earnings |
$ |
125.4 |
2.0 |
|
$ |
82.0 |
1.3 |
|
$ |
410.7 |
2.0 |
|
$ |
428.9 |
2.1 |
(1) |
Calculated as a percentage of net sales and operating revenues. |
Gross Profit (1)
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||||||||||
(In millions) |
|
2024 |
|
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
||
Used vehicle gross profit |
$ |
424.8 |
|
$ |
397.9 |
|
6.8 |
% |
|
$ |
1,399.1 |
|
$ |
1,364.6 |
|
2.5 |
% |
Wholesale vehicle gross profit |
|
138.1 |
|
|
122.9 |
|
12.3 |
% |
|
|
433.1 |
|
|
427.3 |
|
1.3 |
% |
Other gross profit |
|
114.7 |
|
|
92.1 |
|
24.6 |
% |
|
|
397.8 |
|
|
335.1 |
|
18.7 |
% |
Total |
$ |
677.6 |
|
$ |
612.9 |
|
10.6 |
% |
|
$ |
2,230.0 |
|
$ |
2,127.0 |
|
4.8 |
% |
(1) |
Amounts are net of intercompany eliminations. |
Gross Profit per Unit (1)
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||||||
|
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 |
$ |
2,306 |
8.7 |
$ |
2,277 |
8.2 |
|
$ |
2,307 |
8.6 |
$ |
2,299 |
8.3 |
Wholesale vehicle gross profit per unit |
$ |
1,015 |
11.8 |
$ |
961 |
10.5 |
|
$ |
1,019 |
12.1 |
$ |
992 |
10.7 |
Other gross profit per unit |
$ |
623 |
69.2 |
$ |
527 |
60.9 |
|
$ |
656 |
75.4 |
$ |
564 |
69.3 |
(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 November 30 |
|
Nine Months Ended November 30 |
||||||||||||||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Compensation and benefits: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits, excluding share-based compensation expense |
$ |
311.8 |
|
|
$ |
286.3 |
|
|
8.9 |
% |
|
$ |
961.1 |
|
|
$ |
922.7 |
|
|
4.2 |
% |
Share-based compensation expense |
|
22.3 |
|
|
|
19.9 |
|
|
11.7 |
% |
|
|
101.5 |
|
|
|
86.5 |
|
|
17.3 |
% |
Total compensation and benefits (2) |
$ |
334.1 |
|
|
$ |
306.2 |
|
|
9.1 |
% |
|
$ |
1,062.6 |
|
|
$ |
1,009.2 |
|
|
5.3 |
% |
Occupancy costs |
|
73.5 |
|
|
|
70.3 |
|
|
4.5 |
% |
|
|
218.8 |
|
|
|
204.2 |
|
|
7.1 |
% |
Advertising expense |
|
53.8 |
|
|
|
63.3 |
|
|
(15.0 |
)% |
|
|
188.6 |
|
|
|
201.5 |
|
|
(6.4 |
)% |
Other overhead costs (3) |
|
114.4 |
|
|
|
120.2 |
|
|
(4.8 |
)% |
|
|
354.9 |
|
|
|
290.6 |
|
|
22.2 |
% |
Total SG&A expenses |
$ |
575.8 |
|
|
$ |
560.0 |
|
|
2.8 |
% |
|
$ |
1,824.9 |
|
|
$ |
1,705.5 |
|
|
7.0 |
% |
SG&A as a % of gross profit |
|
85.0 |
% |
|
|
91.4 |
% |
|
(6.4 |
)% |
|
|
81.8 |
% |
|
|
80.2 |
% |
|
1.6 |
% |
(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 November 30 |
|
Nine Months Ended November 30 |
||||||||||||||||||
(In millions) |
|
2024 |
|
% (1) |
|
2023 |
|
% (1) |
|
|
2024 |
|
% (1) |
|
2023 |
|
% (1) |
||||
Interest margin: |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest and fee income |
$ |
469.2 |
|
10.6 |
|
$ |
426.9 |
|
9.8 |
|
|
$ |
1,386.2 |
|
10.5 |
|
$ |
1,244.3 |
|
9.6 |
|
Interest expense |
|
(193.2 |
) |
(4.3 |
) |
|
(170.2 |
) |
(3.9 |
) |
|
|
(569.2 |
) |
(4.3 |
) |
|
(464.8 |
) |
(3.6 |
) |
Total interest margin |
|
276.0 |
|
6.2 |
|
|
256.7 |
|
5.9 |
|
|
|
817.0 |
|
6.2 |
|
|
779.5 |
|
6.0 |
|
Provision for loan losses |
|
(72.6 |
) |
(1.6 |
) |
|
(68.3 |
) |
(1.6 |
) |
|
|
(266.4 |
) |
(2.0 |
) |
|
(239.0 |
) |
(1.8 |
) |
Total interest margin after provision for loan losses |
|
203.4 |
|
4.6 |
|
|
188.4 |
|
4.3 |
|
|
|
550.6 |
|
4.2 |
|
|
540.5 |
|
4.2 |
|
Total direct expenses |
|
(43.5 |
) |
(1.0 |
) |
|
(39.7 |
) |
(0.9 |
) |
|
|
(128.2 |
) |
(1.0 |
) |
|
(119.5 |
) |
(0.9 |
) |
CarMax Auto Finance income |
$ |
159.9 |
|
3.6 |
|
$ |
148.7 |
|
3.4 |
|
|
$ |
422.4 |
|
3.2 |
|
$ |
421.0 |
|
3.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total average managed receivables |
$ |
17,771.7 |
|
|
$ |
17,508.9 |
|
|
|
$ |
17,683.9 |
|
|
$ |
17,276.0 |
|
|
||||
Net loans originated |
$ |
1,942.8 |
|
|
$ |
1,953.4 |
|
|
|
$ |
6,368.3 |
|
|
$ |
6,491.0 |
|
|
||||
Net penetration rate |
|
43.1 |
% |
|
|
44.0 |
% |
|
|
|
42.8 |
% |
|
|
43.1 |
% |
|
||||
Weighted average contract rate |
|
11.2 |
% |
|
|
11.3 |
% |
|
|
|
11.3 |
% |
|
|
11.1 |
% |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ending allowance for loan losses |
$ |
478.9 |
|
|
$ |
511.9 |
|
|
|
$ |
478.9 |
|
|
$ |
511.9 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Warehouse facility information: |
|
|
|
|
|
|
|
|
|
||||||||||||
Ending funded receivables |
$ |
3,937.6 |
|
|
$ |
4,529.6 |
|
|
|
$ |
3,937.6 |
|
|
$ |
4,529.6 |
|
|
||||
Ending unused capacity |
$ |
2,162.4 |
|
|
$ |
1,070.4 |
|
|
|
$ |
2,162.4 |
|
|
$ |
1,070.4 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Annualized percentage of total average managed receivables. |
Earnings Highlights
|
Three Months Ended November 30 |
|
Nine Months Ended November 30 |
||||||||||||||
(In millions except per share data) |
|
2024 |
|
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
||
Net earnings |
$ |
125.4 |
|
$ |
82.0 |
|
53.0 |
% |
|
$ |
410.7 |
|
$ |
428.9 |
|
(4.3 |
)% |
Diluted weighted average shares outstanding |
|
155.3 |
|
|
158.8 |
|
(2.2 |
)% |
|
|
156.5 |
|
|
158.9 |
|
(1.5 |
)% |
Net earnings per diluted share |
$ |
0.81 |
|
$ |
0.52 |
|
55.8 |
% |
|
$ |
2.62 |
|
$ |
2.70 |
|
(3.0 |
)% |
Conference Call Information
We will host a conference call for investors at 9:00 a.m. ET today, December 19, 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 April 9, 2025, or via telephone (for approximately one week) by dialing 1-800-839-2456 (or 1-402-220-7216 for international access) and entering the conference ID 3171396.
Fourth Quarter Fiscal 2025 Earnings Release Date
We currently plan to release results for the fourth quarter ending February 28, 2025, on Thursday, April 10, 2025, 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 late March 2025.
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 November 30 |
|
Nine Months Ended November 30 |
|||||||||||||||
(In thousands except per share data) |
|
2024 |
%(1) |
|
2023 |
|
%(1) |
|
|
2024 |
|
%(1) |
|
|
2023 |
|
|
%(1) |
SALES AND OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Used vehicle sales |
$ |
4,888,858 |
78.6 |
$ |
4,832,077 |
|
78.6 |
|
$ |
16,243,415 |
|
79.8 |
|
$ |
16,424,691 |
|
|
78.6 |
Wholesale vehicle sales |
|
1,168,639 |
18.8 |
|
1,165,204 |
|
19.0 |
|
|
3,579,543 |
|
17.6 |
|
|
4,001,542 |
|
|
19.1 |
Other sales and revenues |
|
165,874 |
2.7 |
|
151,257 |
|
2.5 |
|
|
527,339 |
|
2.6 |
|
|
483,204 |
|
|
2.3 |
NET SALES AND OPERATING REVENUES |
|
6,223,371 |
100.0 |
|
6,148,538 |
|
100.0 |
|
|
20,350,297 |
|
100.0 |
|
|
20,909,437 |
|
|
100.0 |
COST OF SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Used vehicle cost of sales |
|
4,464,016 |
71.7 |
|
4,434,165 |
|
72.1 |
|
|
14,844,310 |
|
72.9 |
|
|
15,060,045 |
|
|
72.0 |
Wholesale vehicle cost of sales |
|
1,030,564 |
16.6 |
|
1,042,303 |
|
17.0 |
|
|
3,146,465 |
|
15.5 |
|
|
3,574,200 |
|
|
17.1 |
Other cost of sales |
|
51,145 |
0.8 |
|
59,207 |
|
1.0 |
|
|
129,514 |
|
0.6 |
|
|
148,174 |
|
|
0.7 |
TOTAL COST OF SALES |
|
5,545,725 |
89.1 |
|
5,535,675 |
|
90.0 |
|
|
18,120,289 |
|
89.0 |
|
|
18,782,419 |
|
|
89.8 |
GROSS PROFIT |
|
677,646 |
10.9 |
|
612,863 |
|
10.0 |
|
|
2,230,008 |
|
11.0 |
|
|
2,127,018 |
|
|
10.2 |
CARMAX AUTO FINANCE INCOME |
|
159,885 |
2.6 |
|
148,659 |
|
2.4 |
|
|
422,435 |
|
2.1 |
|
|
421,004 |
|
|
2.0 |
Selling, general, and administrative expenses |
|
575,764 |
9.3 |
|
559,962 |
|
9.1 |
|
|
1,824,904 |
|
9.0 |
|
|
1,705,493 |
|
|
8.2 |
Depreciation and amortization |
|
64,507 |
1.0 |
|
60,623 |
|
1.0 |
|
|
190,277 |
|
0.9 |
|
|
177,859 |
|
|
0.9 |
Interest expense |
|
25,418 |
0.4 |
|
31,265 |
|
0.5 |
|
|
83,801 |
|
0.4 |
|
|
93,316 |
|
|
0.4 |
Other expense (income) |
|
5,370 |
0.1 |
|
(886 |
) |
— |
|
|
2,505 |
|
— |
|
|
(4,730 |
) |
|
— |
Earnings before income taxes |
|
166,472 |
2.7 |
|
110,558 |
|
1.8 |
|
|
550,956 |
|
2.7 |
|
|
576,084 |
|
|
2.8 |
Income tax provision |
|
41,031 |
0.7 |
|
28,555 |
|
0.5 |
|
|
140,266 |
|
0.7 |
|
|
147,148 |
|
|
0.7 |
NET EARNINGS |
$ |
125,441 |
2.0 |
$ |
82,003 |
|
1.3 |
|
$ |
410,690 |
|
2.0 |
|
$ |
428,936 |
|
|
2.1 |
WEIGHTED AVERAGE COMMON SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
154,582 |
|
|
158,446 |
|
|
|
|
155,874 |
|
|
|
|
158,347 |
|
|
|
Diluted |
|
155,265 |
|
|
158,799 |
|
|
|
|
156,504 |
|
|
|
|
158,866 |
|
|
|
NET EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
0.81 |
|
$ |
0.52 |
|
|
|
$ |
2.63 |
|
|
|
$ |
2.71 |
|
|
|
Diluted |
$ |
0.81 |
|
$ |
0.52 |
|
|
|
$ |
2.62 |
|
|
|
$ |
2.70 |
|
|
|
(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 |
|||||||
|
|
November 30 |
|
February 29 |
|
November 30 |
|||
(In thousands except share data) |
|
2024 |
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
||||
|
CURRENT ASSETS: |
|
|
|
|
|
|||
|
Cash and cash equivalents |
$ |
271,910 |
|
$ |
574,142 |
|
$ |
605,375 |
|
Restricted cash from collections on auto loans receivable |
|
541,153 |
|
|
506,648 |
|
|
483,570 |
|
Accounts receivable, net |
|
213,593 |
|
|
221,153 |
|
|
212,406 |
|
Inventory |
|
3,665,163 |
|
|
3,678,070 |
|
|
3,638,946 |
|
Other current assets |
|
126,817 |
|
|
246,581 |
|
|
169,653 |
|
TOTAL CURRENT ASSETS |
|
4,818,636 |
|
|
5,226,594 |
|
|
5,109,950 |
|
Auto loans receivable, net |
|
17,412,940 |
|
|
17,011,844 |
|
|
17,081,891 |
|
Property and equipment, net |
|
3,799,312 |
|
|
3,665,530 |
|
|
3,623,697 |
|
Deferred income taxes |
|
133,258 |
|
|
98,790 |
|
|
121,219 |
|
Operating lease assets |
|
504,979 |
|
|
520,717 |
|
|
533,387 |
|
Goodwill |
|
141,258 |
|
|
141,258 |
|
|
141,258 |
|
Other assets |
|
486,743 |
|
|
532,064 |
|
|
561,848 |
|
TOTAL ASSETS |
$ |
27,297,126 |
|
$ |
27,196,797 |
|
$ |
27,173,250 |
|
|
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||||
|
CURRENT LIABILITIES: |
|
|
|
|
|
|||
|
Accounts payable |
$ |
985,891 |
|
$ |
933,708 |
|
$ |
762,594 |
|
Accrued expenses and other current liabilities |
|
456,541 |
|
|
523,971 |
|
|
494,365 |
|
Accrued income taxes |
|
69,816 |
|
|
— |
|
|
10,581 |
|
Current portion of operating lease liabilities |
|
60,338 |
|
|
57,161 |
|
|
56,410 |
|
Current portion of long-term debt |
|
15,020 |
|
|
313,282 |
|
|
312,744 |
|
Current portion of non-recourse notes payable |
|
509,686 |
|
|
484,167 |
|
|
446,544 |
|
TOTAL CURRENT LIABILITIES |
|
2,097,292 |
|
|
2,312,289 |
|
|
2,083,238 |
|
Long-term debt, excluding current portion |
|
1,589,454 |
|
|
1,602,355 |
|
|
1,605,638 |
|
Non-recourse notes payable, excluding current portion |
|
16,559,771 |
|
|
16,357,301 |
|
|
16,558,053 |
|
Operating lease liabilities, excluding current portion |
|
481,344 |
|
|
496,210 |
|
|
509,141 |
|
Other liabilities |
|
358,055 |
|
|
354,902 |
|
|
372,815 |
|
TOTAL LIABILITIES |
|
21,085,916 |
|
|
21,123,057 |
|
|
21,128,885 |
|
|
|
|
|
|
|
|||
|
Commitments and contingent liabilities |
|
|
|
|
|
|||
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|||
|
Common stock, |
|
76,954 |
|
|
78,806 |
|
|
79,011 |
|
Capital in excess of par value |
|
1,853,489 |
|
|
1,808,746 |
|
|
1,786,924 |
|
Accumulated other comprehensive income |
|
14,827 |
|
|
59,279 |
|
|
60,667 |
|
Retained earnings |
|
4,265,940 |
|
|
4,126,909 |
|
|
4,117,763 |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
6,211,210 |
|
|
6,073,740 |
|
|
6,044,365 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
27,297,126 |
|
$ |
27,196,797 |
|
$ |
27,173,250 |
|
|
|
|
|
|
|
|
|||
CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
Nine Months Ended November 30 |
||||||
(In thousands) |
|
2024 |
|
|
|
2023 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings |
$ |
410,690 |
|
|
$ |
428,936 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
217,332 |
|
|
|
193,528 |
|
Share-based compensation expense |
|
107,121 |
|
|
|
90,479 |
|
Provision for loan losses |
|
266,406 |
|
|
|
238,952 |
|
Provision for cancellation reserves |
|
75,007 |
|
|
|
62,587 |
|
Deferred income tax benefit |
|
(19,961 |
) |
|
|
(28,290 |
) |
Other |
|
6,186 |
|
|
|
8,534 |
|
Net decrease (increase) in: |
|
|
|
||||
Accounts receivable, net |
|
19,872 |
|
|
|
86,377 |
|
Inventory |
|
12,907 |
|
|
|
87,196 |
|
Other current assets |
|
127,978 |
|
|
|
91,793 |
|
Auto loans receivable, net |
|
(667,502 |
) |
|
|
(979,052 |
) |
Other assets |
|
(13,936 |
) |
|
|
(8,775 |
) |
Net increase (decrease) in: |
|
|
|
||||
Accounts payable, accrued expenses and other |
|||||||
current liabilities and accrued income taxes |
|
6,695 |
|
|
|
(60,365 |
) |
Other liabilities |
|
(70,733 |
) |
|
|
(62,921 |
) |
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
478,062 |
|
|
|
148,979 |
|
INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(340,322 |
) |
|
|
(355,442 |
) |
Proceeds from disposal of property and equipment |
|
153 |
|
|
|
1,299 |
|
Purchases of investments |
|
(9,478 |
) |
|
|
(4,641 |
) |
Sales and returns of investments |
|
1,722 |
|
|
|
1,562 |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(347,925 |
) |
|
|
(357,222 |
) |
FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from issuances of long-term debt |
|
34,400 |
|
|
|
134,600 |
|
Payments on long-term debt |
|
(344,231 |
) |
|
|
(242,989 |
) |
Cash paid for debt issuance costs |
|
(16,861 |
) |
|
|
(15,576 |
) |
Payments on finance lease obligations |
|
(13,146 |
) |
|
|
(12,177 |
) |
Issuances of non-recourse notes payable |
|
9,721,000 |
|
|
|
9,099,929 |
|
Payments on non-recourse notes payable |
|
(9,491,659 |
) |
|
|
(8,430,615 |
) |
Repurchase and retirement of common stock |
|
(329,581 |
) |
|
|
(44,287 |
) |
Equity issuances |
|
35,367 |
|
|
|
28,430 |
|
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
|
(404,711 |
) |
|
|
517,315 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(274,574 |
) |
|
|
309,072 |
|
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 |
$ |
975,836 |
|
|
$ |
1,260,076 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241219036663/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
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