Post on 31-May-2020
transcript
1
Cliff Wood Executive Vice President, Stores
Katharine Kenny Vice President, Investor Relations
Goldman Sachs Canada Investor Meetings July 23-24, 2014
2
Forward-Looking Statements
This presentation contains forward-looking
statements, which are subject to risks and
uncertainties. Additional discussion of factors
that could cause actual results to differ materially
from management’s projections and estimates is
contained in the CarMax, Inc. SEC filings,
including its Form 10-K, for the year ended
February 28, 2014. The company disclaims any
intent or obligation to update its forward-looking
statements.
3
Competitive Advantages
Unique consumer offer
Competitively low, no-haggle prices
Huge selection
Guaranteed quality
Transparent, low pressure sales process
4
Competitive Advantages
Well-tested proprietary processes/systems
Proven adaptable to changing market conditions
Well-trained, engaged associates
Award winning culture
Fortune’s “100 Best Companies to Work For” (10 yrs)
Training Magazine’s Top 125
5
CarMax at 7/23/14:
137 superstores
68 markets
Current CarMax Locations
6
Compelling Growth Opportunity
Today:
Stores reach only ≈ 57% of population
In current CarMax markets:
Average 5% market share in age 0-10 vehicles
First or second purchase cycle in most markets
Expansion and share gains will drive future growth
7
Compelling Growth Opportunity
77
89
100 100 103108
118
131
144
154
164
50
75
100
125
150
175
200
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
# o
f Use
d C
ar
Su
pe
rsto
res
at
FYE 159
10 to 15 store openings
174
8
Financial Summary
$7.5
$9.0
$10.0
$11.0
$12.6
$1.00
$1.50
$2.00
$2.50
$3.0
$6.0
$9.0
$12.0
$15.0
FY10 FY11 FY12 FY13 FY14
EP
ST
ota
l Re
ve
nu
es
(in
billio
ns
)
Total revenues EPS (diluted)
Diversified Profit Base (FY14)
Percentages represent breakdown of gross profit dollars, including CAF income 9
Retail Used Vehicles
10
357
396 408
448
527
$1,800
$2,000
$2,200
$2,400
$2,600
100
200
300
400
500
600
FY10 FY11 FY12 FY13 FY14
GP
$ p
er U
nit
Un
it s
ale
s (
in t
ho
us
an
ds
)
Used unit sales Used GP$/unit
11
Wholesale Vehicles
197
263
317 325343
$700
$800
$900
$1,000
$1,100
0
50
100
150
200
250
300
350
400
FY10 FY11 FY12 FY13 FY14
GP
$ p
er U
nit
Un
it s
ale
s (
in t
ho
us
an
ds
)
Wholesale unit sales Wholesale GP$/unit
12
CarMax Auto Finance
$175
$220
$262
$299
$336
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
$6.0
$6.5
$7.0
$7.5
$0
$50
$100
$150
$200
$250
$300
$350
FY10 FY11 FY12 FY13 FY14
Avg
Rec
'ble
s (in
billio
ns)
CA
F I
nc
om
e (
in m
illi
on
s)
CAF income Managed receivables
13
In-store experience
On-line experience
Optimize operations
Areas of Focus
14
Mobile app
On-Line Experience
15
carmax.com
Improved search capability, more personalization, vehicle
listings redesign, high definition photos with zoom
Q1FY15 web visits
Average monthly visits grew 25% YOY to 14 mil/mo
Visits to mobile site and mobile apps represented
approximately 30% and 13% of total visits, respectively
carmaxauctions.com
Increased functionality, nationwide inventory, vehicle history
reports
On-Line Experience
16
Grow stores efficiently
Enhance execution
Culture of continuous improvement
Optimize Operations
17