2019 Q2 Form 10-Q Financial Statement

#000117001019000133 Filed on July 03, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q2
Revenue $5.366B $4.793B
YoY Change 11.97% 5.51%
Cost Of Revenue $4.624B $4.131B
YoY Change 11.93% 6.11%
Gross Profit $742.4M $661.3M
YoY Change 12.25% 1.91%
Gross Profit Margin 13.83% 13.8%
Selling, General & Admin $489.7M $438.2M
YoY Change 11.73% 8.61%
% of Gross Profit 65.96% 66.26%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $51.51M $45.34M
YoY Change 13.59% 3.3%
% of Gross Profit 6.94% 6.86%
Operating Expenses $489.7M $438.2M
YoY Change 11.73% 8.61%
Operating Profit $252.7M $223.1M
YoY Change 13.27% -9.1%
Interest Expense $17.78M $18.05M
YoY Change -1.48% 7.21%
% of Operating Profit 7.04% 8.09%
Other Income/Expense, Net $359.0K -$963.0K
YoY Change -137.28% -1135.48%
Pretax Income $351.3M $319.7M
YoY Change 9.88% -5.43%
Income Tax $84.51M $81.03M
% Of Pretax Income 24.06% 25.35%
Net Earnings $266.7M $238.7M
YoY Change 11.77% 12.73%
Net Earnings / Revenue 4.97% 4.98%
Basic Earnings Per Share $1.60 $1.34
Diluted Earnings Per Share $1.59 $1.33
COMMON SHARES
Basic Shares Outstanding 166.3M shares 178.1M shares
Diluted Shares Outstanding 167.6M shares 179.4M shares

Balance Sheet

Concept 2019 Q2 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $42.00M $76.00M
YoY Change -44.74% 26.67%
Cash & Equivalents $42.20M $76.35M
Short-Term Investments
Other Short-Term Assets $77.09M $88.36M
YoY Change -12.75% 146.95%
Inventory $2.551B $2.260B
Prepaid Expenses
Receivables $133.9M $101.4M
Other Receivables $0.00 $0.00
Total Short-Term Assets $3.284B $2.957B
YoY Change 11.03% 8.15%
LONG-TERM ASSETS
Property, Plant & Equipment $2.927B $2.714B
YoY Change 7.81% 6.14%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $203.8M $185.9M
YoY Change 9.6% 27.76%
Total Long-Term Assets $16.43B $14.80B
YoY Change 11.03% 7.7%
TOTAL ASSETS
Total Short-Term Assets $3.284B $2.957B
Total Long-Term Assets $16.43B $14.80B
Total Assets $19.71B $17.76B
YoY Change 11.03% 7.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $656.9M $586.3M
YoY Change 12.03% 14.84%
Accrued Expenses $288.1M $252.6M
YoY Change 14.05% 24.32%
Deferred Revenue
YoY Change
Short-Term Debt $1.000M $0.00
YoY Change -100.0%
Long-Term Debt Due $14.36M $393.0M
YoY Change -96.35% 12.61%
Total Short-Term Liabilities $1.485B $1.288B
YoY Change 15.31% 10.42%
LONG-TERM LIABILITIES
Long-Term Debt $14.10B $12.86B
YoY Change 9.63% 7.84%
Other Long-Term Liabilities $289.8M $223.1M
YoY Change 29.93% -3.45%
Total Long-Term Liabilities $289.8M $223.1M
YoY Change 29.93% -3.45%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.485B $1.288B
Total Long-Term Liabilities $289.8M $223.1M
Total Liabilities $16.26B $14.37B
YoY Change 13.15% 7.87%
SHAREHOLDERS EQUITY
Retained Earnings $2.190B $2.116B
YoY Change 3.48% 9.42%
Common Stock $82.70M $88.36M
YoY Change -6.41% -3.89%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.453B $3.384B
YoY Change
Total Liabilities & Shareholders Equity $19.71B $17.76B
YoY Change 11.03% 7.77%

Cashflow Statement

Concept 2019 Q2 2018 Q2
OPERATING ACTIVITIES
Net Income $266.7M $238.7M
YoY Change 11.77% 12.73%
Depreciation, Depletion And Amortization $51.51M $45.34M
YoY Change 13.59% 3.3%
Cash From Operating Activities $43.20M $230.8M
YoY Change -81.28% 20.52%
INVESTING ACTIVITIES
Capital Expenditures $78.97M $79.72M
YoY Change -0.94% 0.38%
Acquisitions
YoY Change
Other Investing Activities -$7.100M -$4.700M
YoY Change 51.06% 487.5%
Cash From Investing Activities -$86.11M -$84.40M
YoY Change 2.03% 5.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $212.0M $211.1M
YoY Change 0.43% 12.63%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $80.88M -80.10M
YoY Change -200.98% 0.75%
NET CHANGE
Cash From Operating Activities $43.20M 230.8M
Cash From Investing Activities -$86.11M -84.40M
Cash From Financing Activities $80.88M -80.10M
Net Change In Cash $37.97M 66.30M
YoY Change -42.73% 108.49%
FREE CASH FLOW
Cash From Operating Activities $43.20M $230.8M
Capital Expenditures $78.97M $79.72M
Free Cash Flow -$35.77M $151.1M
YoY Change -123.68% 34.79%

Facts In Submission

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CY2019Q2 us-gaap Gross Profit
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319684000 USD
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351257000 USD
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337917000 USD
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31688000 USD
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3078000 USD
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10100000 USD
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126000 USD
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320000 USD
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21629000 USD
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0.024
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0.017
CY2019Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
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0.023
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P4Y7M6D
CY2019Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P4Y7M6D
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671000 USD
CY2019Q1 us-gaap Standard Product Warranty Accrual
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7400000 USD
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8800000 USD
CY2018Q2 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
-2168000 USD
CY2019Q2 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
-5149000 USD
CY2018Q2 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
9052000 USD
CY2019Q2 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
33251000 USD
CY2018Q2 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
207404000 USD
CY2019Q2 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
204835000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3316849000 USD
CY2018Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3383761000 USD
CY2019Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3357028000 USD
CY2019Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3452755000 USD
CY2019Q1 us-gaap Trading Securities
TradingSecurities
19263000 USD
CY2019Q2 us-gaap Trading Securities
TradingSecurities
21329000 USD
CY2019Q1 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
24676000 USD
CY2019Q2 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
23940000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
30300000 USD
CY2019Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
29700000 USD
CY2018Q1 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
105200000 USD
CY2018Q2 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
108700000 USD
CY2019Q1 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
102800000 USD
CY2019Q2 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
109500000 USD
CY2018Q2 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
20100000 USD
CY2019Q2 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
25500000 USD
CY2018Q2 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
16600000 USD
CY2019Q2 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
18800000 USD
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
179421000 shares
CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
167643000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
178139000 shares
CY2019Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
166324000 shares
CY2019Q2 us-gaap Basis Of Accounting
BasisOfAccounting
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Basis of Presentation and Use of Estimates. </font><font style="font-family:inherit;font-size:10pt;">The accompanying interim unaudited consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries.&#160;&#160;All significant intercompany balances and transactions have been eliminated in consolidation.&#160;&#160;These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;) for interim financial information.&#160;&#160;Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.&#160;&#160;In the opinion of management, such interim consolidated financial statements reflect all normal recurring adjustments considered necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented.&#160;&#160;The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year.&#160;&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accounting policies followed in the presentation of our interim financial results are consistent with those included in the company's Annual Report on Form 10-K for the fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">February&#160;28, 2019</font><font style="font-family:inherit;font-size:10pt;"> (the &#8220;2019 Annual Report&#8221;), with the exception of those related to recent accounting pronouncements adopted in the current fiscal year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our 2019 Annual Report.</font></div></div>
CY2019Q2 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Business. </font><font style="font-family:inherit;font-size:10pt;">CarMax, Inc. (&#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; &#8220;CarMax&#8221; and &#8220;the company&#8221;), including its wholly owned subsidiaries, is the largest retailer of used vehicles in the United States.&#160;We operate in </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> reportable segments:&#160;&#160;CarMax Sales Operations and CarMax Auto Finance (&#8220;CAF&#8221;).&#160;&#160;Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF.&#160;&#160;Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We deliver an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and services at competitive, no-haggle prices using a customer-friendly sales process in an attractive, modern sales facility, as well as through carmax.com and our mobile apps.&#160;&#160;We provide customers with a range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of retail vehicle purchases through CAF and third-party finance providers; the sale of extended protection plan (&#8220;EPP&#8221;) products, which include extended service plans (&#8220;ESPs&#8221;) and guaranteed asset protection (&#8220;GAP&#8221;); and vehicle repair service.&#160;&#160;Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site wholesale auctions.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2019Q2 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.&#160;&#160;Actual results could differ from those estimates.&#160; Certain prior year amounts have been reclassified to conform to the current year&#8217;s presentation.&#160; Amounts and percentages may not total due to rounding.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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