CarMax(KMX) - 2025 Q3 - Quarterly Results

Financial Performance - Total gross profit reached $677.6 million, an increase of 10.6% year-over-year, driven by unit volumes and strong unit margin performance [4]. - Net earnings per diluted share were $0.81, reflecting a significant increase of 55.8% from $0.52 a year ago [6]. - Net earnings for the three months ended November 30, 2024, were $125.4 million, compared to $82.0 million in the same period of 2023, marking a significant increase of 53.0% [34]. - Diluted net earnings per share increased by 55.8% to $0.81 from $0.52 year-over-year for the three months ended November 30, 2024 [44]. - Total net sales and operating revenues were $6,223.4 million, a 1.2% increase from the prior year's third quarter [25]. - Total net sales and operating revenues for the three months ended November 30, 2024, were $6.2 billion, compared to $6.1 billion for the same period last year, reflecting a growth of 1.2% [56]. Vehicle Sales - Retail used unit sales increased by 5.4% to 184,243 units, while comparable store used unit sales rose by 4.3% [11]. - Used vehicle sales reached $4.89 billion, accounting for 78.6% of total revenues, compared to $4.83 billion in the prior year [56]. - Wholesale vehicle sales were $1.17 billion, representing 18.8% of total revenues, slightly up from $1.17 billion in the previous year [56]. - The company purchased 270,000 vehicles from consumers and dealers, marking a 7.9% increase compared to the previous year [4]. - CarMax sold approximately 770,000 used vehicles and 550,000 wholesale vehicles at its auctions during the fiscal year ended February 29, 2024 [49]. CarMax Auto Finance - CarMax Auto Finance (CAF) income increased by 7.6% to $159.9 million, attributed to growth in net interest margin percentage and average managed receivables [5]. - CarMax Auto Finance income for the three months ended November 30, 2024, was $159.9 million, a rise from $148.7 million in the same period of 2023, reflecting a growth of 7.9% [34]. - The total interest margin after provision for loan losses for the three months ended November 30, 2024, was $203.4 million, up from $188.4 million in the same period of 2023 [43]. - The net penetration rate for CarMax Auto Finance was 43.1% for the three months ended November 30, 2024, slightly down from 44.0% in the same period of 2023 [43]. - The company originated over $8 billion in receivables during fiscal 2024, contributing to a total portfolio exceeding $17 billion [49]. Expenses and Costs - SG&A expenses increased by 2.8% to $575.8 million, but SG&A as a percent of gross profit decreased by 640 basis points to 85.0% [16]. - Selling, general, and administrative (SG&A) expenses for the three months ended November 30, 2024, totaled $575.8 million, a 2.8% increase from $560.0 million in the same period of 2023 [41]. - The company reported a provision for loan losses of $266,406, an increase from $238,952, indicating a rise of about 11.1% [63]. Assets and Liabilities - Total current assets decreased to $4,818,636 from $5,109,950, a decline of approximately 6% year-over-year [61]. - Total liabilities decreased slightly to $21,085,916 from $21,128,885, a reduction of approximately 0.2% [61]. - Cash, cash equivalents, and restricted cash at the end of the period were $975,836, down from $1,260,076, a decrease of about 22.5% [63]. - Auto loans receivable, net increased to $17,412,940 from $17,081,891, representing a growth of approximately 1.9% [61]. - Total shareholders' equity increased to $6,211,210 from $6,044,365, reflecting a growth of approximately 2.8% [61]. Capital Expenditures - Capital expenditures for the period were $340,322, slightly lower than $355,442 in the previous period [63]. - The current portion of long-term debt decreased significantly to $15,020 from $312,744, a reduction of approximately 95% [61]. Online Sales - Online retail sales accounted for 15% of retail unit sales, with revenue from online transactions totaling $2.0 billion, approximately 32% of net revenues [14]. Vehicle Pricing - The average retail selling price for used vehicles declined by approximately $1,100 per unit, or 3.9% [11]. - Used vehicle gross profit for the three months ended November 30, 2024, increased by 6.8% to $424.8 million compared to $397.9 million in the same period of 2023 [36]. - The company reported a gross profit per unit for used vehicles of $2,306 for the three months ended November 30, 2024, an increase from $2,277 in the same period of 2023 [40]. - Gross profit for the three months ended November 30, 2024, was $677.6 million, a 10.9% margin compared to $612.9 million and a 10.0% margin in the same period last year [56].