CarMax Inc KMX
Q4 2013 Earnings Call Transcript

Transcript Call Date 04/10/2013

Operator: Good morning. My name is Komiko, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q4 FY 2013 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you.

I would now like to turn the conference over to your host Ms. Katharine Kenny. Ma'am, you may begin.

Katharine Kenny - VP, IR: Thank you. Good morning. Thank you for joining our fiscal 2013 fourth quarter earnings conference call. On the call with me today, as usual, are Tom Folliard, our President and Chief Executive Officer; and Tom Reedy, our Executive Vice President and CFO.

Before we begin, let me remind you that our statements today regarding the Company’s future business plans, prospects, and financial performance are forward-looking statements that we make pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current knowledge and assumptions about future events that involve risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, the Company disclaims any intent or obligation to update them.

For additional information on important factors that could affect these expectations, please see the Company's Annual Report on Form 10-K for the fiscal year ending February 29, 2012 filed with the SEC, and our new 10-K, of course, will be out shortly.

Before I turn the call over to Tom, let me once again request that everyone stick to asking one question and feel free to jump back in line if you have follow-up questions. It just seems like the most fair way to let everyone have a chance.

Thank you. Tom?

Tom Folliard - President and CEO: Well said Katherine. Good morning everyone. Welcome to the call. We are very pleased to announce a record year, both revenues and earnings for CarMax, total revenues grew to nearly $11 billion. Retail used vehicle unit sales increased 10% to over 447,000 cars.

We continue to implement our new store growth plan in fiscal 2013 as well during which we opened 10 stores. That’s the most stores we’ve opened since fiscal 2008. I will go on to some other highlights first for the year and then the quarter.

For the year, used unit comps increased by 5% compared to 1% in the prior year.

Net earnings, up 5% to $434 million. Wholesale units increased by 3% on top of a 20% increase in fiscal '12. CAF income, up 14% to nearly $300 million. Tom will talk more about that in a second.

Also we talked about market share at the end of each year, our data indicates that we increased our share of zero to six-year old used vehicle – zero to six-year used in the – we increased our share of the zero to six-year old used vehicle market by approximately 3% in the markets that we serve to a total of nearly 6%.

Also more recently, we've looked at our share on a broader basis, since that's where our inventory and our sales have moved and on a zero to 10-year old basis, we estimate that our share has grown in the markets that we serve by about 6% to a total of approximately 4%.

Read our Earnings Call Transcript disclaimer.
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