CarMax Reports Record Sales for the Fiscal 2004 Fourth Quarter and Full Year - Stock Up 90.7% Since Our Buy Signal
03/04/2004 How CarMax has performed since our buy signal was issued: +90.7% in 14 months (72.4% per year). Today the company
reported record sales for the fourth quarter and fiscal year ended February 29, 2004. The following is an excerpt from the news release:
RICHMOND, Va., March 4 /PRNewswire-FirstCall/ -- CarMax, Inc. (NYSE: KMX) today reported record sales for the fourth quarter and fiscal year ended February 29, 2004.
Comparable store used unit sales rose 5% in the fourth quarter and 6% for the fiscal year.
Total used unit sales grew 17% in the fourth quarter and 18% for the fiscal year.
Fourth quarter total sales increased 18% to $1.12 billion from $946.6 million in the prior year's quarter. Fiscal 2004 total sales of $4.60 billion grew 16% compared with $3.97 billion in fiscal 2003.
CarMax continues to expect fourth quarter earnings per share in the range of 19 cents to 22 cents, bringing expected fiscal 2004 earnings per share to a range of $1.08 to $1.11.
"We are pleased by our continuing ability to grow market share in a challenging used car market," said Austin Ligon, president and chief executive officer. "Our 6% used unit comp growth in fiscal 2004 maintains a double- digit spread versus our estimate of negative 5% average used unit comps for the publicly traded new car dealer groups in calendar 2003.
"Used unit comp growth of 5% for the quarter and 6% for the year were both within our expected ranges," said Ligon. "Our stores experienced fewer major winter storms than in last year's fourth quarter. Though less severe, disruptive winter weather occurred with more frequency and was more widespread than last year. We believe the weather had a generally dampening effect on this quarter's sales.
CarMax is the nation's leading specialty retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 49 used car superstores in 23 markets. CarMax also operates 12 new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended February 29, 2004, the company sold 224,099 used cars, which is 91 percent of the total 245,740 vehicles the company sold during that period. For more information, access the CarMax Web site at www.carmax.com.
The company cautions readers that the statements contained herein regarding the company's future business plans, operations, opportunities, or prospects, including without limitation any statements or factors regarding expected sales, margins, or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. For more details on factors that could affect expectations, see the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2003, and its quarterly or current reports as filed with or furnished to the Securities and Exchange Commission.
SOURCE CarMax, Inc. The complete news release can be found at www.carmax.com.
CONTACT: Investors and Financial Media: Dandy Barrett, Director of
Investor Relations, +1-804-935-4591, Celeste Gunter, Manager, Investor
Relations, +1-804-935-4597, General Media: Lisa VanRiper, Director of Public
Affairs, +1-804-935-4594, all of CarMax, Inc.
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