katharine w. kennys21.q4cdn.com/483767183/files/doc_presentations/...dec 13, 2016 · katharine w....
TRANSCRIPT
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Katharine W. KennyVice President, Investor Relations
Oppenheimer Investor MeetingsOctober 12-13, 2016
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Forward-Looking Statements
Thispresentationcontainsforward‐lookingstatements,whicharesubjecttorisksanduncertainties.Additionaldiscussionoffactorsthatcouldcauseactualresultstodiffermateriallyfrommanagement’sprojectionsandestimatesiscontainedintheCarMax,Inc.SECfilings,includingitsForm10‐K,fortheyearendedFebruary29,2016.Thecompanydisclaimsanyintentorobligationtoupdateitsforward‐lookingstatements.
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Fiscal 2016 Highlights
• Increased store base by 10%• Opened 14 stores for the first time
• Sold over 1 million vehicles• 620,000 retail and 395,000 wholesale
• Total revenues increased by 6% to $15 billion
• Net earnings grew by 4% to $623 million• Earnings per share grew by 11% to $3.03
• CAF income increased by 7% to $392 million
• Repurchased 16 million shares• 46 million shares repurchased since 2012
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Current CarMax Locations165usedcarstoresin83marketsin38states
(asofSeptember28,2016)
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Large Markets Small Format
FY14: St. Louis Harrisonburg, VAPhiladelphia Jackson, TN
FY15: Cleveland Dothan, AL Tupelo, MSLynchburg, VA
FY16: Minneapolis Gainesville, FL Bloomington, ILBoston Tallahassee, FL St. Louis, MO (fill-in)
FY17: San Francisco Springfield, IL Mobile, ALBristol, TN Albany, NY
FY18 1H: Seattle Pensacola, FL Salisbury, MDWaterbury, CT
Compelling Growth Opportunity
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Financial Summary
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10 year CAGR = 9.2% 10 year CAGR = 17.4%
$0 B
$2 B
$4 B
$6 B
$8 B
$10 B
$12 B
$14 B
$16 B
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Total Revenues
$0.61 $0
.89
$0.80
$0.25
$1.24
$1.65
$1.79
$1.87 $2
.16
$2.73 $3
.03
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Earnings per Diluted Share
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CarMax Business Model
*Percentagesrepresentbreakdownofgrossprofitdollars,includingCAFincome,excludingOthergrossprofit
Diversifiedgrossprofitbase*: Used Wholesale EPP Finance
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• Websiteredesign Increaseengagementanddriveleads
Adaptivetoallscreensizes
Morepersonalizedexperience
Improved,highresolutionpictures
Abilitytoscheduleanappt,transfer/holdvehicles
Monthlypaymentestimates/calculator
State‐of‐the‐arttechnologyplatform Easiertobuildanddisplaynewfeatures
CarMaxOwnerApp Oneplacetostorevehicledocuments
Exclusivediscounts 8
Online Enhancements
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CustomerExperience Homedelivery TestinCharlotteNC
Onlinefinance(loanprequalification) Currentlyin13stores
Rolloutinnextfewmonths
Enhancingexecution/reducingwaste Mobileappraisaltoolforbuyers
Moreefficienttransportationsystem
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Continuous Improvement
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