0001170010false00011700102024-12-192024-12-19

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

December 19, 2024
Date of Report (date of earliest event reported)

CARMAX, INC.
(Exact name of registrant as specified in its charter)
Virginia
1-31420
54-1821055
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
12800 Tuckahoe Creek Parkway
23238
Richmond,
Virginia
(Address of Principal Executive Offices)
(Zip Code)
(804) 747-0422
Registrant's telephone number, including area code

Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockKMXNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐


  
Item 2.02.Results of Operations and Financial Condition.
 CarMax, Inc. (the “Company”) issued a press release on December 19, 2024, announcing its third quarter results.  The press release is being furnished as Exhibit 99.1 hereto and is incorporated by reference into this Item 2.02.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits
 		The following exhibit is being furnished pursuant to Item 2.02 above.
Press release, dated December 19, 2024, issued by CarMax, Inc., entitled “CarMax Reports Third Quarter Fiscal 2025 Results.”
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
CARMAX, INC.
(Registrant)
Dated: December 19, 2024
By: /s/ Enrique N. Mayor-Mora
Enrique N. Mayor-Mora
Executive Vice President and
Chief Financial Officer





carmaxlogoblue2019a.jpg

CARMAX REPORTS THIRD QUARTER FISCAL YEAR 2025 RESULTS
Achieved over 50% earnings growth driven by gains across the business



Richmond, Va., December 19, 2024 – CarMax, Inc. (NYSE:KMX) today reported results for the third quarter ended November 30, 2024.

Third Quarter Highlights:(1)

•Retail used unit sales increased 5.4% and comparable store used unit sales increased 4.3%; wholesale units increased 6.3%.

•Total gross profit of $677.6 million increased 10.6% driven by unit volumes and strong unit margin performance.
◦Gross profit per retail used unit of $2,306, in line with the prior year’s third quarter
◦Gross profit per wholesale unit of $1,015, up $54 per unit
◦Extended Protection Plans (EPP) margin per retail unit of $573, an increase of $53 per unit
◦Service margin growth of $60 per retail unit

•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%

•SG&A of $575.8 million increased 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, an increase of 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 increased 55.8% from $0.52 a year ago.

•Repurchased $114.8 million in shares of common stock in the third quarter of fiscal year 2025.




(1) Comparisons to the prior year’s third quarter unless otherwise stated




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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 5.8% from the prior year’s third quarter.

Total retail used vehicle unit sales increased 5.4% to 184,243 compared to the prior year’s third quarter. Comparable store used unit sales increased 4.3% from the prior year’s third quarter. Total retail used vehicle revenues increased 1.2% compared with the prior year’s third quarter, driven by the increase in retail used units sold, partially offset by the decrease in average retail selling price, which declined approximately $1,100 per unit or 3.9%.

Total wholesale vehicle unit sales increased 6.3% to 136,013 versus the prior year’s third quarter. Total wholesale revenues increased 0.3% compared with the prior year’s third quarter, driven by the increase in wholesale units sold, partially offset by the decrease in the average wholesale selling price of approximately $500 per unit or 5.7%.

We bought 270,000 vehicles from consumers and dealers, up 7.9% compared to last year’s third quarter. Of these vehicles, 237,000 were bought from consumers and 33,000 were bought through dealers, an increase of 4.1% and 46.7%, respectively, from last year’s third quarter.

Other sales and revenues increased by 9.7% compared with the third quarter of fiscal 2024, representing an increase of $14.6 million, primarily reflecting an increase in EPP revenues resulting from stronger margins.

Online retail sales(2) accounted for 15% of retail unit sales, compared to 14% in the third quarter of last year. Revenue from online transactions(3), including retail and wholesale unit sales, was $2.0 billion, or approximately 32% of net revenues, up from 31% in last year’s third quarter.

Gross Profit. Total gross profit was $677.6 million, up 10.6% versus last year’s third quarter. Retail used vehicle gross profit increased 6.8% and retail gross profit per used unit was $2,306, in line with last year’s third quarter.

Wholesale vehicle gross profit increased 12.3% versus the prior year’s third quarter. Gross profit per unit increased $54 from the prior year’s third quarter to $1,015.

Other gross profit increased 24.6% primarily reflecting growth in EPP revenues resulting from stronger margins as well as service gross profit driven by cost coverage measures, increased efficiencies, and positive retail unit growth.

SG&A. Compared with the third quarter of fiscal 2024, SG&A expenses increased 2.8% or $15.8 million to $575.8 million, primarily driven by an increase in compensation and benefits due to year-over-year corporate bonus accrual dynamics. Partially offsetting this was a decrease in advertising spend due to timing. SG&A as a percent of gross profit decreased 640 basis points to 85.0% in the third quarter compared to 91.4% in the prior year’s third quarter, driven by the growth in gross profit and ongoing cost management efforts in the stores and customer experience centers.

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CarMax Auto Finance.(4) CAF income increased 7.6% to $159.9 million driven by growth in CAF’s net interest margin percentage and average managed receivables. This quarter’s provision for loan losses was $72.6 million compared to $68.3 million in the prior year’s third quarter.

As of November 30, 2024, the allowance for loan losses of $478.9 million was 2.70% of ending managed receivables, down from 2.82% as of August 31, 2024. The allowance for loan losses was down from 2.92% a year ago, due to the effect of the previously disclosed tightening of CAF’s underwriting standards.

CAF’s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.2% of average managed receivables, up from the prior year’s third quarter but consistent with this year’s second quarter. After the effect of 3-day payoffs, CAF financed 43.1% of units sold in the current quarter, down slightly from 44.0% in the prior year’s third quarter. CAF’s weighted average contract rate was 11.2% in the quarter, down from 11.3% in the third quarter last year.

Share Repurchase Activity. During the third quarter of fiscal year 2025, we repurchased 1.5 million shares of common stock for $114.8 million. As of November 30, 2024, we had $2.04 billion remaining available for repurchase under the outstanding authorization.

Location Openings. During the third quarter of fiscal 2025, we opened one new store location in Alliance, Texas.





(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.
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Supplemental Financial Information
Amounts and percentage calculations may not total due to rounding.


Sales Components
Three Months Ended November 30Nine Months Ended November 30
(In millions)20242023Change20242023Change
Used vehicle sales$4,888.9 $4,832.1 1.2 %$16,243.4 $16,424.7 (1.1)%
Wholesale vehicle sales1,168.6 1,165.2 0.3 %3,579.5 4,001.5 (10.5)%
Other sales and revenues:
Extended protection plan revenues105.5 90.8 16.1 %345.7 303.8 13.8 %
Third-party finance income/(fees), net1.0 (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 %
Other23.3 25.0 (6.9)%75.7 80.2 (5.7)%
Total other sales and revenues165.9 151.3 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 30Nine Months Ended November 30
20242023Change20242023Change
Used vehicles184,243174,7665.4 %606,395593,5152.2 %
Wholesale vehicles136,013127,9006.3 %425,156430,785(1.3)%


Average Selling Prices
Three Months Ended November 30Nine Months Ended November 30
20242023Change20242023Change
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 30Nine Months Ended November 30
2024202320242023
Used vehicle units5.4 %(2.9)%2.2 %(7.0)%
Used vehicle revenues1.2 %(7.2)%(1.1)%(11.2)%
Wholesale vehicle units6.3 %7.7 %(1.3)%(7.3)%
Wholesale vehicle revenues0.3 %1.1 %(10.5)%(19.3)%







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Comparable Store Used Vehicle Sales Changes (1)
Three Months Ended November 30Nine Months Ended November 30
2024202320242023
Used vehicle units4.3 %(4.1)%1.3 %(8.5)%
Used vehicle revenues0.5 %(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 30Nine Months Ended November 30
2024202320242023
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 %
Total100.0 %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 2% of total used units sold.
(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 30Nine 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.


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Gross Profit (1)
Three Months Ended November 30Nine Months Ended November 30
(In millions)20242023Change20242023Change
Used vehicle gross profit$424.8 $397.9 6.8 %$1,399.1 $1,364.6 2.5 %
Wholesale vehicle gross profit138.1 122.9 12.3 %433.1 427.3 1.3 %
Other gross profit114.7 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 30Nine Months Ended November 30
2024202320242023
$ 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 30Nine Months Ended November 30
(In millions)20242023Change20242023Change
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 expense22.3 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 costs73.5 70.3 4.5 %218.8 204.2 7.1 %
Advertising expense53.8 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 profit85.0 %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.


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Components of CAF Income and Other CAF Information
Three Months Ended November 30Nine 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 margin276.0 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 rate43.1 %44.0 %42.8 %43.1 %
Weighted average contract rate11.2 %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 30Nine Months Ended November 30
(In millions except per share data)20242023Change20242023Change
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)%



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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 $8 billion in receivables during fiscal 2024, adding to its more than $17 billion portfolio. CarMax has over 245 store locations, nearly 30,000 associates, and is proud to have been recognized for 20 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to making a positive impact on people, communities and the environment. Learn more in the 2024 Responsibility Report. For more information, visit www.carmax.com.


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:
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•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 U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

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Contacts:

Investors:    
    David Lowenstein, Vice President, Investor Relations    
    investor_relations@carmax.com, (804) 747-0422 x7865

Media:
    pr@carmax.com, (855) 887-2915

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CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)

Three Months Ended November 30Nine 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 sales1,168,639 18.8 1,165,204 19.0 3,579,543 17.6 4,001,542 19.1 
Other sales and revenues165,874 2.7 151,257 2.5 527,339 2.6 483,204 2.3 
NET SALES AND OPERATING REVENUES6,223,371 100.0 6,148,538 100.0 20,350,297 100.0 20,909,437 100.0 
COST OF SALES:
Used vehicle cost of sales4,464,016 71.7 4,434,165 72.1 14,844,310 72.9 15,060,045 72.0 
Wholesale vehicle cost of sales1,030,564 16.6 1,042,303 17.0 3,146,465 15.5 3,574,200 17.1 
Other cost of sales51,145 0.8 59,207 1.0 129,514 0.6 148,174 0.7 
TOTAL COST OF SALES5,545,725 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 amortization64,507 1.0 60,623 1.0 190,277 0.9 177,859 0.9 
Interest expense25,418 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 taxes166,472 2.7 110,558 1.8 550,956 2.7 576,084 2.8 
Income tax provision41,031 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:
Basic154,582 158,446 155,874 158,347 
Diluted155,265 158,799 156,504 158,866 
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.

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CarMax, Inc.
Page 12 of 13
CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

As of
November 30February 29November 30
(In thousands except share data)202420242023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$271,910 $574,142 $605,375 
Restricted cash from collections on auto loans receivable541,153 506,648 483,570 
Accounts receivable, net213,593 221,153 212,406 
Inventory3,665,163 3,678,070 3,638,946 
Other current assets126,817 246,581 169,653 
TOTAL CURRENT ASSETS 4,818,636 5,226,594 5,109,950 
Auto loans receivable, net17,412,940 17,011,844 17,081,891 
Property and equipment, net3,799,312 3,665,530 3,623,697 
Deferred income taxes133,258 98,790 121,219 
Operating lease assets504,979 520,717 533,387 
Goodwill141,258 141,258 141,258 
Other assets486,743 532,064 561,848 
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 liabilities456,541 523,971 494,365 
Accrued income taxes69,816 — 10,581 
Current portion of operating lease liabilities60,338 57,161 56,410 
Current portion of long-term debt15,020 313,282 312,744 
Current portion of non-recourse notes payable509,686 484,167 446,544 
TOTAL CURRENT LIABILITIES 2,097,292 2,312,289 2,083,238 
Long-term debt, excluding current portion1,589,454 1,602,355 1,605,638 
Non-recourse notes payable, excluding current portion16,559,771 16,357,301 16,558,053 
Operating lease liabilities, excluding current portion481,344 496,210 509,141 
Other liabilities358,055 354,902 372,815 
TOTAL LIABILITIES 21,085,916 21,123,057 21,128,885 
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY:
Common stock, $0.50 par value; 350,000,000 shares authorized; 153,908,030 and 157,611,939 shares issued and outstanding as of November 30, 2024 and February 29, 2024, respectively76,954 78,806 79,011 
Capital in excess of par value1,853,489 1,808,746 1,786,924 
Accumulated other comprehensive income14,827 59,279 60,667 
Retained earnings4,265,940 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 

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CarMax, Inc.
Page 13 of 13
CARMAX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended November 30
(In thousands)20242023
OPERATING ACTIVITIES:  
Net earnings$410,690 $428,936 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization217,332 193,528 
Share-based compensation expense107,121 90,479 
Provision for loan losses266,406 238,952 
Provision for cancellation reserves75,007 62,587 
Deferred income tax benefit(19,961)(28,290)
Other6,186 8,534 
Net decrease (increase) in:
Accounts receivable, net19,872 86,377 
Inventory12,907 87,196 
Other current assets127,978 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 taxes6,695 (60,365)
Other liabilities(70,733)(62,921)
NET CASH PROVIDED BY OPERATING ACTIVITIES478,062 148,979 
INVESTING ACTIVITIES:  
Capital expenditures(340,322)(355,442)
Proceeds from disposal of property and equipment153 1,299 
Purchases of investments(9,478)(4,641)
Sales and returns of investments1,722 1,562 
NET CASH USED IN INVESTING ACTIVITIES(347,925)(357,222)
FINANCING ACTIVITIES:  
Proceeds from issuances of long-term debt34,400 134,600 
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 payable9,721,000 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 issuances35,367 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 year1,250,410 951,004 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD $975,836 $1,260,076 


# # #
v3.24.4
Document and Entity Information Document
Dec. 19, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Dec. 19, 2024
Entity Registrant Name CARMAX, INC.
Entity Central Index Key 0001170010
Amendment Flag false
Entity Incorporation, State or Country Code VA
Entity File Number 1-31420
Entity Tax Identification Number 54-1821055
Entity Address, Address Line One 12800 Tuckahoe Creek Parkway
Entity Address, City or Town Richmond,
Entity Address, State or Province VA
Entity Address, Postal Zip Code 23238
City Area Code 804
Local Phone Number 747-0422
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol KMX
Security Exchange Name NYSE
Entity Emerging Growth Company false
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