Business Wire | Dec 22, 2021 06:50AM EST

CarMax Reports Third Quarter Fiscal 2022 Results

Dec. 22, 2021

RICHMOND, Va.--(BUSINESS WIRE)--Dec. 22, 2021--CarMax, Inc. (NYSE:KMX), the nation's largest and most profitable retailer of used cars, today reported results for the third quarter ended November 30, 2021.

Highlights:

* Record net revenues of $8.5 billion, up 64.5% compared with the prior year third quarter. * Net earnings per diluted share of $1.63, up 14.8% from a then-record $1.42 per diluted share a year ago. Net earnings per diluted share for the current year's quarter included a one-time benefit of $0.10 in connection with the receipt of settlement proceeds in a class action lawsuit. * Sold 415,054 units through our combined retail and wholesale channels, up 29.3% from the prior year quarter, primarily driven by solid execution, the growing demand for our online offerings, ramping inventory and staffing levels, and the continued success of vehicle sourcing directly from consumers. Retail used unit sales increased 16.9% to a third quarter record of 227,424 vehicles, and comparable store used unit sales increased 15.8%. Wholesale units increased 48.5% to 187,630 vehicles, also a third quarter record. * Bought 383,215 vehicles from consumers in the third quarter, a 91% increase versus the prior year quarter. Approximately 194,000 of these vehicles were purchased through our nationwide online instant appraisal offerings. * Gross profit per retail used unit of $2,235 and gross profit per wholesale unit of $1,131, representing increases of $84 and $225 per unit, respectively, versus last year's third quarter. * CarMax Auto Finance (CAF) income decreased 5.9% to $166.0 million, as last year's third quarter benefited from a significantly reduced loan loss provision. Improvements in CAF's net interest margin and robust growth in average managed receivables in the current year's quarter largely offset the effect of this year's more normalized provision.

CEO Commentary:

"Our solid execution, customer-centric omni-channel strategy, and macro factors are driving strong performance across our diversified businesses," said Bill Nash, president and chief executive officer. "Our top line momentum continued into this quarter and we achieved record levels of third quarter unit sales in both retail and wholesale, generating all-time record revenues. We also bought more cars from customers than ever before. We are excited about the opportunities ahead of us and believe that by delivering the most customer-centric experience in the industry, we will enable sustainable growth and create meaningful long-term shareholder value."

Third Quarter Business Performance Review:

Sales. Combined retail and wholesale used vehicle unit sales were 415,054, an increase of 29.3% from the prior year's third quarter. Online retail sales(1) accounted for 9% of retail unit sales, compared with 5% in the third quarter of last year. Revenue from online transactions(2), including retail and wholesale unit sales, was $2.5 billion, or approximately 30% of net revenues, compared with 20% of net revenues in last year's third quarter.

Total retail used vehicle unit sales increased 16.9% to 227,424 and comparable store used unit sales increased 15.8% from the prior year's third quarter. We believe several factors contributed to our comparable store sales growth, including solid execution, the growing demand for our online offerings, ramping inventory and staffing levels, and the continued success of vehicle sourcing directly from consumers. Total retail used vehicle revenues increased 52.9% compared with the prior year's third quarter due to an increase in the average retail selling price, which rose nearly $6,600 per unit, or 30.8%, together with the growth in retail used units sold. The increase in average retail selling price largely reflected higher vehicle acquisition costs resulting from strong wholesale industry valuations.

Total wholesale vehicle unit sales increased 48.5% to 187,630 compared with the prior year's third quarter. Wholesale sales benefited from the large increase in appraisal volume associated with our online appraisal offerings and a record third quarter buy rate. Total wholesale revenues increased 132.1% compared with the prior year's third quarter due to the average wholesale selling price rising by more than $3,600 per unit, or 58.4%, together with the increase in wholesale units sold.

Other sales and revenues rose 15.7% compared with the third quarter of fiscal 2021, representing an increase of $23.1 million. The increase was largely driven by the consolidation of Edmunds earlier this fiscal year, as well as an improvement in net third-party finance fees due to favorability from our renegotiated fee agreements and lower Tier 3 originations. The increase was partially offset by the effect of the divestiture of our remaining new car franchises since last year's third quarter.

Gross Profit. Total gross profit increased to $836.6 million, up 32.5% versus last year's third quarter. Retail used vehicle gross profit rose 21.4%, reflecting the increase in retail used unit sales and an improvement in the related gross profit per unit, which rose $84 to $2,235.

Wholesale vehicle gross profit increased 85.5% versus the prior year's quarter, reflecting both the growth in unit volume and an increase in the related gross profit per unit, which rose $225 to $1,131.

Other gross profit increased 17.9% largely reflecting the consolidation of Edmunds and the improvement in net third-party finance fees. This increase was partially offset by a reduction in service department margins resulting from our efforts to support our higher level of retail unit sales, which primarily included growing technician staffing, as well as shifting retail service capacity to support vehicle reconditioning. In addition, extended protection plan (EPP) profits rose 4.8%, as the benefit of our retail unit volume growth was largely offset by an unfavorable year-over-year change in cancellation reserves.

SG&A. Compared with the third quarter of fiscal 2021, SG&A expenses increased 33.7% to $575.9 million. Contributing factors included increases in staffing and sales-related compensation in the face of strong demand; continued spending on our technology platforms and strategic initiatives to support increased consumer demand for our digital experiences; an increase in share-based compensation largely reflecting changes in the company's share price; the consolidation of Edmunds; and planned increases in advertising expense. In addition, the current year's third quarter also included a one-time pretax benefit of $22.6 million from the receipt of settlement proceeds in a class action lawsuit.

SG&A as a percent of gross profit was 68.8%, versus 68.2% in the prior year's third quarter. For the first nine months of fiscal 2022, SG&A as a percent of gross profit was 66.1% versus 68.9% in the prior year period.

CarMax Auto Finance.(3) CAF income decreased 5.9% to $166.0 million, primarily reflecting an increase in the provision for loan losses to $76.2 million in the current year's third quarter compared with $8.2 million in the prior year's third quarter. In the prior year's third quarter, the provision for loan losses benefited from the continued reduction in the reserve that was established at the start of the COVID pandemic. Improvements in CAF's net interest margin and the growth in average managed receivables largely offset the effect of the higher loan loss provision.

As of November 30, 2021, the allowance for loan losses was 2.75% of ending managed receivables, up from 2.66% as of August 31, 2021. The current quarter's provision for loan losses largely reflected the expected lifetime losses on loans originated in the current quarter, but also included a 6 basis point adjustment for added Tier 2 and Tier 3 originations. The adjustment was primarily driven by the implementation of our Tier 2 origination test. Any future changes to the Tier 2 test will carefully consider the broader lending environment along with the sustainability of the change.

CAF's total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, improved to 7.2% of average managed receivables from 6.3% in the prior year's third quarter, primarily due to lower funding costs. After the effect of 3-day payoffs, CAF financed 42.2% of units sold in the current quarter, compared with a historically high 45.7% in the prior year's third quarter. In addition, we estimate the conversion of CAF's auto loan servicing system during the current year's quarter reduced CAF income by approximately $5 million for conversion-related costs.

Share Repurchase Activity. During the third quarter of fiscal 2022, we repurchased 0.9 million shares of common stock for $115.3 million pursuant to our share repurchase program. As of November 30, 2021, we had $876.2 million remaining available for repurchase under the outstanding authorization.

Store Openings. During the third quarter of fiscal 2022, we opened one new location. For the full fiscal year, we plan to open a total of ten new locations, including four new locations expected to open in the fourth quarter.

An online retail unit sale is defined as a sale where the customer^ completes all four of these major transactional activities remotely:(1) reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating a remote sales order.

^ Revenue from online transactions is defined as revenue from retail sales(2) that qualify for an online retail sale, as well as any EPP and third-party finance contribution, wholesale sales where the winning bid was an online bid, and all revenue earned by Edmunds.

^ Although CAF benefits from certain indirect overhead expenditures, we have(3) not allocated indirect costs to CAF to avoid making subjective allocation decisions.

Supplemental Financial Information

Amounts and percentage calculations may not total due to rounding.

Sales Components

Three Months Ended November 30

Nine Months Ended November 30

(In millions)

2021

2020

Change

2021

2020

Change

Used vehicle sales

$

6,435.6

$

4,209.7

52.9

%

$

18,697.3

$

11,385.2

64.2

%

Wholesale vehicle sales

1,922.3

828.4

132.1

%

4,998.2

1,990.3

151.1

%

Other sales and revenues:

Extended protection plan revenues

106.6

101.7

4.8

%

353.8

294.5

20.2

%

Third-party finance fees, net

1.6

(10.6)

114.7

%

(0.3)

(36.7)

99.3

%

Advertising & subscription revenues (1)

33.3

-

100.0

%

67.9

-

100.0

%

Other

28.4

55.7

(49.0)

%

96.8

152.6

(36.6)

%

Total other sales and revenues

169.9

146.8

15.7

%

518.2

410.4

26.3

%

Total net sales and operating revenues

$

8,527.8

$

5,184.9

64.5

%

$

24,213.7

$

13,785.9

75.6

%

Supplemental Financial Information

Amounts and percentage calculations may not total due to rounding.

Sales Components

Three Months Ended November 30 Nine Months Ended November 30

(In 2021 2020 Change 2021 2020 Changemillions)

Used vehicle $ 6,435.6 $ 4,209.7 52.9 % $ 18,697.3 $ 11,385.2 64.2 %sales

Wholesalevehicle 1,922.3 828.4 132.1 % 4,998.2 1,990.3 151.1 %sales

Other salesand revenues:

Extendedprotection 106.6 101.7 4.8 % 353.8 294.5 20.2 %planrevenues

Third-partyfinance 1.6 (10.6) 114.7 % (0.3) (36.7) 99.3 %fees, net

Advertising&subscription 33.3 - 100.0 % 67.9 - 100.0 %revenues ^(1)

Other 28.4 55.7 (49.0) % 96.8 152.6 (36.6) %

Total othersales and 169.9 146.8 15.7 % 518.2 410.4 26.3 %revenues

Total netsales and $ 8,527.8 $ 5,184.9 64.5 % $ 24,213.7 $ 13,785.9 75.6 %operatingrevenues

(1)

Excludes intersegment revenues that have been eliminated in consolidation.

^(1) Excludes intersegment revenues that have been eliminated in consolidation.

Unit Sales

Three Months Ended November 30

Nine Months Ended November 30

2021

2020

Change

2021

2020

Change

Used vehicles

227,424

194,576

16.9

%

730,020

546,934

33.5

%

Wholesale vehicles

187,630

126,317

48.5

%

557,117

322,592

72.7

%

Unit Sales

Three Months Ended November 30 Nine Months Ended November 30

2021 2020 Change 2021 2020 Change

Used vehicles 227,424 194,576 16.9 % 730,020 546,934 33.5 %

Wholesale 187,630 126,317 48.5 % 557,117 322,592 72.7 %vehicles

Average Selling Prices

Three Months Ended November 30

Nine Months Ended November 30

2021

2020

Change

2021

2020

Change

Used vehicles

$

27,995

$

21,402

30.8

%

$

25,380

$

20,581

23.3

%

Wholesale vehicles

$

9,890

$

6,245

58.4

%

$

8,634

$

5,877

46.9

%

Average Selling Prices

Three Months Ended November 30 Nine Months Ended November 30

2021 2020 Change 2021 2020 Change

Used vehicles $ 27,995 $ 21,402 30.8 % $ 25,380 $ 20,581 23.3 %

Wholesale $ 9,890 $ 6,245 58.4 % $ 8,634 $ 5,877 46.9 %vehicles

Vehicle Sales Changes

Three Months Ended November 30

Nine Months Ended November 30

2021

2020

2021

2020

Used vehicle units

16.9 %

1.0 %

33.5 %

(12.6) %

Used vehicle revenues

52.9 %

4.5 %

64.2 %

(11.9) %

Wholesale vehicle units

48.5 %

10.8 %

72.7 %

(10.7) %

Wholesale vehicle revenues

132.1 %

35.6 %

151.1 %

2.0 %

Vehicle Sales Changes

Three Months Ended Nine Months Ended November November 30 30

2021 2020 2021 2020

Used vehicle units 16.9 % 1.0 % 33.5 % (12.6) %

Used vehicle revenues 52.9 % 4.5 % 64.2 % (11.9) %



Wholesale vehicle units 48.5 % 10.8 % 72.7 % (10.7) %

Wholesale vehicle revenues 132.1 % 35.6 % 151.1 % 2.0 %

Comparable Store Used Vehicle Sales Changes (1)

Three Months Ended November 30

Nine Months Ended November 30

2021

2020

2021

2020

Used vehicle units

15.8 %

(0.8) %

32.5 %

(14.8) %

Used vehicle revenues

51.4 %

2.5 %

63.4 %

(14.1) %

Comparable Store Used Vehicle Sales Changes ^(1)

Three Months Ended Nine Months Ended November 30 November 30

2021 2020 2021 2020

Used vehicle units 15.8 % (0.8) % 32.5 (14.8) % %

Used vehicle revenues 51.4 % 2.5 % 63.4 (14.1) % %

(1)

Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods.

Stores are added to the comparable store base beginning in their^ fourteenth full month of operation. Comparable store calculations include(1) results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods.

Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs) (1)

Three Months Ended November 30

Nine Months Ended November 30

2021

2020

2021

2020

CAF (2)

46.1 %

48.9 %

46.6 %

45.0 %

Tier 2(3)

22.2 %

19.5 %

22.2 %

22.8 %

Tier 3(4)

6.5 %

9.7 %

8.0 %

11.5 %

Other(5)

25.2 %

21.9 %

23.2 %

20.7 %

Total

100.0 %

100.0 %

100.0 %

100.0 %

Used Vehicle Financing Penetration by Channel (Before the Impact of3-day Payoffs)^ (1)



Three Months Ended Nine Months Ended November 30 November 30

2021 2020 2021 2020

CAF ^(2) 46.1 48.9 46.6 % 45.0 % % %

Tier 2^ (3) 22.2 19.5 22.2 % 22.8 % % %

Tier 3^ (4) 6.5 % 9.7 % 8.0 % 11.5 %

Other^ (5) 25.2 21.9 23.2 % 20.7 % % %

Total 100.0 100.0 100.0 % 100.0 % % %

(1)

Calculated as used vehicle units financed for respective channel as a percentage of total used units sold.

(2)

Includes CAF's Tier 3 loan originations, which represent less than 1% of total used units sold.

(3)

Third-party finance providers who generally pay us a fee or to whom no fee is paid.

(4)

Third-party finance providers to whom we pay a fee.

(5)

Represents customers arranging their own financing and customers that do not require financing.

^ Calculated as used vehicle units financed for respective channel as a(1) percentage of total used units sold.

^ Includes CAF's Tier 3 loan originations, which represent less than 1% of(2) total used units sold.

^ Third-party finance providers who generally pay us a fee or to whom no fee(3) is paid.

^ Third-party finance providers to whom we pay a fee.(4)

^ Represents customers arranging their own financing and customers that do(5) not require financing.

Selected Operating Ratios

Three Months Ended November 30

Nine Months Ended November 30

(In millions)

2021

%(1)

2020

%(1)

2021

%(1)

2020

%(1)

Net sales and operating revenues

$

8,527.8

100.0

$

5,184.9

100.0

$

24,213.7

100.0

$

13,785.9

100.0

Gross profit

$

836.6

9.8

$

631.4

12.2

$

2,576.6

10.6

$

1,737.8

12.6

CarMax Auto Finance income

$

166.0

1.9

$

176.4

3.4

$

607.7

2.5

$

374.6

2.7

Selling, general, and administrative expenses

$

575.9

6.8

$

430.8

8.3

$

1,704.3

7.0

$

1,197.6

8.7

Interest expense

$

24.3

0.3

$

19.5

0.4

$

67.2

0.3

$

65.9

0.5

Earnings before income taxes

$

356.0

4.2

$

310.5

6.0

$

1,291.1

5.3

$

703.0

5.1

Net earnings

$

269.4

3.2

$

235.3

4.5

$

991.5

4.1

$

537.0

3.9

Selected Operating Ratios

Three Months Ended November 30 Nine Months Ended November 30

(In millions) 2021 % ^(1) 2020 % ^(1) 2021 % ^(1) 2020 % ^(1)

Net sales andoperating $ 8,527.8 100.0 $ 5,184.9 100.0 $ 24,213.7 100.0 $ 13,785.9 100.0 revenues

Gross profit $ 836.6 9.8 $ 631.4 12.2 $ 2,576.6 10.6 $ 1,737.8 12.6

CarMax Auto $ 166.0 1.9 $ 176.4 3.4 $ 607.7 2.5 $ 374.6 2.7 Finance income

Selling,general, and $ 575.9 6.8 $ 430.8 8.3 $ 1,704.3 7.0 $ 1,197.6 8.7 administrativeexpenses

Interest $ 24.3 0.3 $ 19.5 0.4 $ 67.2 0.3 $ 65.9 0.5 expense

Earningsbefore income $ 356.0 4.2 $ 310.5 6.0 $ 1,291.1 5.3 $ 703.0 5.1 taxes

Net earnings $ 269.4 3.2 $ 235.3 4.5 $ 991.5 4.1 $ 537.0 3.9

(1)

Calculated as a percentage of net sales and operating revenues.

^(1) Calculated as a percentage of net sales and operating revenues.

Gross Profit (1)

Three Months Ended November 30

Nine Months Ended November 30

(In millions)

2021

2020

Change

2021

2020

Change

Used vehicle gross profit

$

508.4

$

418.6

21.4

%

$

1,611.9

$

1,161.3

38.8

%

Wholesale vehicle gross profit

212.2

114.4

85.5

%

587.0

320.7

83.0

%

Other gross profit

116.0

98.4

17.9

%

377.7

255.8

47.7

%

Total

$

836.6

$

631.4

32.5

%

$

2,576.6

$

1,737.8

48.3

%

Gross Profit^ (1)

Three Months Ended November 30 Nine Months Ended November 30

(In 2021 2020 Change 2021 2020 Changemillions)

Usedvehicle $ 508.4 $ 418.6 21.4 % $ 1,611.9 $ 1,161.3 38.8 %grossprofit

Wholesalevehicle 212.2 114.4 85.5 % 587.0 320.7 83.0 %grossprofit

Other gross 116.0 98.4 17.9 % 377.7 255.8 47.7 %profit

Total $ 836.6 $ 631.4 32.5 % $ 2,576.6 $ 1,737.8 48.3 %

(1)

Amounts are net of intercompany eliminations.

^(1) Amounts are net of intercompany eliminations.

Gross Profit per Unit (1)

Three Months Ended November 30

Nine Months Ended November 30

2021

2020

2021

2020

$ per unit(2)

%(3)

$ per unit(2)

%(3)

$ per unit(2)

%(3)

$ per unit(2)

%(3)

Used vehicle gross profit

$

2,235

7.9

$

2,151

9.9

$

2,208

8.6

$

2,123

10.2

Wholesale vehicle gross profit

$

1,131

11.0

$

906

13.8

$

1,054

11.7

$

994

16.1

Other gross profit

$

510

68.3

$

506

67.0

$

517

72.9

$

468

62.3

Total gross profit

$

3,678

9.8

$

3,245

12.2

$

3,529

10.6

$

3,177

12.6

Gross Profit per Unit^ (1)

Three Months Ended November 30 Nine Months Ended November 30

2021 2020 2021 2020

$ per %^(3) $ per %^(3) $ per %^(3) $ per %^(3) unit^(2) unit^(2) unit^(2) unit^(2)

Usedvehicle $ 2,235 7.9 $ 2,151 9.9 $ 2,208 8.6 $ 2,123 10.2 grossprofit

Wholesalevehicle $ 1,131 11.0 $ 906 13.8 $ 1,054 11.7 $ 994 16.1 grossprofit

Other gross $ 510 68.3 $ 506 67.0 $ 517 72.9 $ 468 62.3 profit

Total gross $ 3,678 9.8 $ 3,245 12.2 $ 3,529 10.6 $ 3,177 12.6 profit

(1)

Amounts are net of intercompany eliminations. Those eliminations had the effect of increasing used vehicle gross profit per unit and wholesale vehicle gross profit per unit and decreasing other gross profit per unit by immaterial amounts.

(2)

Calculated as category gross profit divided by its respective units sold, except the other and total categories, which are divided by total used units sold.

(3)

Calculated as a percentage of its respective sales or revenue.

Amounts are net of intercompany eliminations. Those eliminations had the^ effect of increasing used vehicle gross profit per unit and wholesale(1) vehicle gross profit per unit and decreasing other gross profit per unit by immaterial amounts.

^ Calculated as category gross profit divided by its respective units sold,(2) except the other and total categories, which are divided by total used units sold.

^ Calculated as a percentage of its respective sales or revenue.(3)

SG&A Expenses (1) (2)

Three Months Ended November 30

Nine Months Ended November 30

(In millions)

2021

2020

Change

2021

2020

Change

Compensation and benefits:

Compensation and benefits, excluding share-based compensation expense

$

308.3

$

230.8

33.6

%

$

891.8

$

661.3

34.9

%

Share-based compensation expense

33.3

10.7

210.7

%

100.5

68.7

46.3

%

Total compensation and benefits(3)

$

341.6

$

241.5

41.4

%

$

992.3

$

730.0

35.9

%

Occupancy costs

59.3

53.8

10.3

%

165.0

152.4

8.3

%

Advertising expense

76.1

58.8

29.4

%

233.6

143.8

62.5

%

Other overhead costs(4)

98.9

76.7

29.1

%

313.4

171.4

82.8

%

Total SG&A expenses

$

575.9

$

430.8

33.7

%

$

1,704.3

$

1,197.6

42.3

%

SG&A as % of gross profit

68.8

%

68.2

%

0.6

%

66.1

%

68.9

%

(2.8)

%

SG&A Expenses^ (1) (2)

Three Months Ended November 30 Nine Months Ended November 30

(In 2021 2020 Change 2021 2020 Changemillions)

Compensationand benefits:

Compensationandbenefits,excluding $ 308.3 $ 230.8 33.6 % $ 891.8 $ 661.3 34.9 %share-basedcompensationexpense

Share-basedcompensation 33.3 10.7 210.7 % 100.5 68.7 46.3 %expense

Totalcompensation $ 341.6 $ 241.5 41.4 % $ 992.3 $ 730.0 35.9 %and benefits^ (3)

Occupancy 59.3 53.8 10.3 % 165.0 152.4 8.3 %costs

Advertising 76.1 58.8 29.4 % 233.6 143.8 62.5 %expense

Otheroverhead 98.9 76.7 29.1 % 313.4 171.4 82.8 %costs^ (4)

Total SG&A $ 575.9 $ 430.8 33.7 % $ 1,704.3 $ 1,197.6 42.3 %expenses

SG&A as % of 68.8 % 68.2 % 0.6 % 66.1 % 68.9 % (2.8) %gross profit

(1)

Depreciation and amortization previously included in SG&A expenses is now separately presented and is excluded from this table. Prior period amounts have been reclassified to conform to the current period's presentation.

(2)

Amounts are net of intercompany eliminations.

(3)

Excludes compensation and benefits related to reconditioning and vehicle repair service, which are included in cost of sales.

(4)

Includes IT expenses, non-CAF bad debt, insurance, preopening and relocation costs, charitable contributions, travel and other administrative expenses.

^ Depreciation and amortization previously included in SG&A expenses is now(1) separately presented and is excluded from this table. Prior period amounts have been reclassified to conform to the current period's presentation.

^ Amounts are net of intercompany eliminations.(2)

^ Excludes compensation and benefits related to reconditioning and vehicle(3) repair service, which are included in cost of sales.

^ Includes IT expenses, non-CAF bad debt, insurance, preopening and(4) relocation costs, charitable contributions, travel and other administrative expenses.

Components of CAF Income and Other CAF Information

Three Months Ended November 30

Nine Months Ended November 30

(In millions)

2021

%(1)

2020

%(1)

2021

%(1)

2020

%(1)

Interest margin:

Interest and fee income

$

330.0

8.6

$

288.5

8.5

$

964.4

8.7

$

851.1

8.5

Interest expense

(53.6

)

(1.4

)

(77.1

)

(2.3

)

(180.0

)

(1.6

)

(243.0

)

(2.4

)

Total interest margin

276.4

7.2

211.4

6.3

784.4

7.1

608.1

6.1

Provision for loan losses

(76.2

)

(2.0

)

(8.2

)

(0.2

)

(87.3

)

(0.8

)

(156.1

)

(1.6

)

Total interest margin after provision for loan losses

200.2

5.2

203.2

6.0

697.1

6.3

452.0

4.5

Total other expense

-

-

-

-

-

-

(2.2

)

-

Total direct expenses

(34.3

)

(0.9

)

(26.8

)

(0.8

)

(89.4

)

(0.8

)

(75.2

)

(0.7

)

CarMax Auto Finance income

$

166.0

4.3

$

176.4

5.2

$

607.7

5.5

$

374.6

3.7

Total average managed receivables

$

15,288.8

$

13,517.5

$

14,706.9

$

13,381.6

Net loans originated

$

2,420.3

$

1,824.9

$

7,276.1

$

4,607.8

Net penetration rate

42.2

%

45.7

%

43.0

%

42.1

%

Weighted average contract rate

8.3

%

8.6

%

8.6

%

8.4

%

Ending allowance for loan losses

$

426.5

$

431.6

$

426.5

$

431.6

Warehouse facility information:

Ending funded receivables

$

3,155.9

$

2,308.0

$

3,155.9

$

2,308.0

Ending unused capacity

$

1,669.1

$

1,217.0

$

1,669.1

$

1,217.0

Components of CAF Income and Other CAF Information

Three Months Ended November 30 Nine Months Ended November 30

(In 2021 % ^(1) 2020 % ^(1) 2021 % ^(1) 2020 % ^(1)millions)

Interest margin:

Interest and $ 330.0 8.6 $ 288.5 8.5 $ 964.4 8.7 $ 851.1 8.5 fee income

Interest (53.6 ) (1.4 ) (77.1 ) (2.3 ) (180.0 ) (1.6 ) (243.0 ) (2.4 ) expense

Totalinterest 276.4 7.2 211.4 6.3 784.4 7.1 608.1 6.1 margin

Provisionfor loan (76.2 ) (2.0 ) (8.2 ) (0.2 ) (87.3 ) (0.8 ) (156.1 ) (1.6 ) losses

Totalinterestmargin after 200.2 5.2 203.2 6.0 697.1 6.3 452.0 4.5 provisionfor loanlosses



Total other - - - - - - (2.2 ) - expense



Total direct (34.3 ) (0.9 ) (26.8 ) (0.8 ) (89.4 ) (0.8 ) (75.2 ) (0.7 ) expenses

CarMax AutoFinance $ 166.0 4.3 $ 176.4 5.2 $ 607.7 5.5 $ 374.6 3.7 income



Totalaverage $ 15,288.8 $ 13,517.5 $ 14,706.9 $ 13,381.6 managedreceivables

Net loans $ 2,420.3 $ 1,824.9 $ 7,276.1 $ 4,607.8 originated

Netpenetration 42.2 % 45.7 % 43.0 % 42.1 % rate

Weightedaverage 8.3 % 8.6 % 8.6 % 8.4 % contractrate



Endingallowance $ 426.5 $ 431.6 $ 426.5 $ 431.6 for loanlosses



Warehousefacility information:

Endingfunded $ 3,155.9 $ 2,308.0 $ 3,155.9 $ 2,308.0 receivables

Endingunused $ 1,669.1 $ 1,217.0 $ 1,669.1 $ 1,217.0 capacity



(1)

Annualized percentage of total average managed receivables.

^(1) Annualized percentage of total average managed receivables.

Earnings Highlights

Three Months Ended November 30

Nine Months Ended November 30

(In millions except per share data)

2021

2020

Change

2021

2020

Change

Net earnings

$

269.4

$

235.3

14.5

%

$

991.5

$

537.0

84.6

%

Diluted weighted average shares outstanding

164.9

165.8

(0.5)

%

165.6

165.0

0.4

%

Net earnings per diluted share

$

1.63

$

1.42

14.8

%

$

5.99

$

3.25

84.3

%

Conference Call Information

We will host a conference call for investors at 9:00 a.m. ET today, December 22, 2021. Domestic investors may access the call at 1-888-298-3261 (international callers dial 1-706-679-7457). The conference I.D. for both domestic and international callers is 8992460. A live webcast of the call will be available on our investor information home page at investors.carmax.com.

A replay of the webcast will be available on the company's website at investors.carmax.com through April 11, 2022, or via telephone (for approximately one week) by dialing 1-855-859-2056 (or 1-404-537-3406 for international access) and entering the conference ID 8992460.

Fourth Quarter Fiscal 2022 Earnings Release Date

We currently plan to release results for the fourth quarter ending February 28, 2022, on Tuesday, April 12, 2022, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in March 2022.

About CarMax

CarMax, the nation's largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. CarMax also provides a variety of vehicle delivery methods, including home delivery, express pickup and appointments in its stores. During the fiscal year ending February 28, 2021, CarMax sold more than 750,000 used vehicles and more than 425,000 wholesale vehicles at its in-store and virtual auctions. In addition, CarMax Auto Finance originated more than $6 billion in receivables during fiscal year 2021, adding to its nearly $14 billion portfolio. CarMax has more than 220 stores, approximately 27,000 Associates, and is proud to have been recognized for 17 consecutive years as one of the Fortune 100 Best Companies to Work For(r). For more information, visit www.carmax.com.

Forward-Looking Statements

We caution readers that the statements contained in this release about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, inventory, market share, revenue, margins, expenses, liquidity, loan originations, capital expenditures, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "positioned," "predict," "should," "will" and other similar expressions, whether in the negative or affirmative. 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. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:

* The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies; our business operations and continuity; the availability of corporate and consumer financing; the health and productivity of our associates; the ability of third-party providers to continue uninterrupted service; and the regulatory environment in which we operate.

* Changes in general or regional U.S. economic conditions.

* Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.

* Changes in the competitive landscape and/or our failure to successfully adjust to such changes.

* Events that damage our reputation or harm the perception of the quality of our brand.

* Our inability to realize the benefits associated with our omni-channel initiatives.

* Our inability to realize the expected benefits of strategic transactions, including our acquisition of Edmunds.

* Our inability to recruit, develop and retain associates and maintain positive associate relations.

* The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.

* Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.

* Significant changes in prices of new and used vehicles.

* Changes in economic conditions or other factors that result in greater credit losses for CAF's portfolio of auto loans receivable than anticipated.

* A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.

* Changes in consumer credit availability provided by our third-party finance providers.

* Changes in the availability of extended protection plan products from third-party providers.

* Factors related to the regulatory and legislative environment in which we operate.

* Factors related to geographic and sales growth, including the inability to effectively manage our growth.

* The failure of or inability to sufficiently enhance key information systems.

* The performance of the third-party vendors we rely on for key components of our business.

* The effect of various litigation matters.

* Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.

* The failure or inability to realize the benefits associated with our strategic investments.

* The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.

* The volatility in the market price for our common stock.

* The failure or inability to adequately protect our intellectual property.

* The occurrence of severe weather events.

* Factors related to the geographic concentration of our stores.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2021, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Earnings Highlights

Three Months Ended November 30 Nine Months Ended November 30

(In millionsexcept per 2021 2020 Change 2021 2020 Changeshare data)

Net earnings $ 269.4 $ 235.3 14.5 % $ 991.5 $ 537.0 84.6 %

Dilutedweightedaverage 164.9 165.8 (0.5) % 165.6 165.0 0.4 %sharesoutstanding

Net earningsper diluted $ 1.63 $ 1.42 14.8 % $ 5.99 $ 3.25 84.3 %share

Conference Call Information

We will host a conference call for investors at 9:00 a.m. ET today, December 22, 2021. Domestic investors may access the call at 1-888-298-3261 (international callers dial 1-706-679-7457). The conference I.D. for both domestic and international callers is 8992460. A live webcast of the call will be available on our investor information home page at investors.carmax.com.

A replay of the webcast will be available on the company's website at investors.carmax.com through April 11, 2022, or via telephone (for approximately one week) by dialing 1-855-859-2056 (or 1-404-537-3406 for international access) and entering the conference ID 8992460.

Fourth Quarter Fiscal 2022 Earnings Release Date

We currently plan to release results for the fourth quarter ending February 28, 2022, on Tuesday, April 12, 2022, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at investors.carmax.com in March 2022.

About CarMax

CarMax, the nation's largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. CarMax also provides a variety of vehicle delivery methods, including home delivery, express pickup and appointments in its stores. During the fiscal year ending February 28, 2021, CarMax sold more than 750,000 used vehicles and more than 425,000 wholesale vehicles at its in-store and virtual auctions. In addition, CarMax Auto Finance originated more than $6 billion in receivables during fiscal year 2021, adding to its nearly $14 billion portfolio. CarMax has more than 220 stores, approximately 27,000 Associates, and is proud to have been recognized for 17 consecutive years as one of the Fortune 100 Best Companies to Work For(r). For more information, visit www.carmax.com.

Forward-Looking Statements

We caution readers that the statements contained in this release about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, inventory, market share, revenue, margins, expenses, liquidity, loan originations, capital expenditures, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "positioned," "predict," "should," "will" and other similar expressions, whether in the negative or affirmative. 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. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:

* The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies; our business operations and continuity; the availability of corporate and consumer financing; the health and productivity of our associates; the ability of third-party providers to continue uninterrupted service; and the regulatory environment in which we operate.

* Changes in general or regional U.S. economic conditions.

* Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.

* Changes in the competitive landscape and/or our failure to successfully adjust to such changes.

* Events that damage our reputation or harm the perception of the quality of our brand.

* Our inability to realize the benefits associated with our omni-channel initiatives.

* Our inability to realize the expected benefits of strategic transactions, including our acquisition of Edmunds.

* Our inability to recruit, develop and retain associates and maintain positive associate relations.

* The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.

* Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.

* Significant changes in prices of new and used vehicles.

* Changes in economic conditions or other factors that result in greater credit losses for CAF's portfolio of auto loans receivable than anticipated.

* A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.

* Changes in consumer credit availability provided by our third-party finance providers.

* Changes in the availability of extended protection plan products from third-party providers.

* Factors related to the regulatory and legislative environment in which we operate.

* Factors related to geographic and sales growth, including the inability to effectively manage our growth.

* The failure of or inability to sufficiently enhance key information systems.

* The performance of the third-party vendors we rely on for key components of our business.

* The effect of various litigation matters.

* Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.

* The failure or inability to realize the benefits associated with our strategic investments.

* The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.

* The volatility in the market price for our common stock.

* The failure or inability to adequately protect our intellectual property.

* The occurrence of severe weather events.

* Factors related to the geographic concentration of our stores.

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2021, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at investors.carmax.com. Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(UNAUDITED)



Three Months Ended November 30 Nine Months Ended November 30

(In thousandsexcept per 2021 % ^(1) 2020 % ^(1) 2021 % ^(1) 2020 % ^(1)share data)

SALES ANDOPERATING REVENUES:

Used vehicle $ 6,435,590 75.5 $ 4,209,748 81.2 $ 18,697,300 77.2 $ 11,385,183 82.6 sales

Wholesale 1,922,283 22.5 828,362 16.0 4,998,212 20.6 1,990,296 14.4 vehicle sales

Other sales 169,886 2.0 146,834 2.8 518,205 2.1 410,413 3.0 and revenues

NET SALES ANDOPERATING 8,527,759 100.0 5,184,944 100.0 24,213,717 100.0 13,785,892 100.0 REVENUES

COST OF SALES:

Used vehicle 5,927,237 69.5 3,791,134 73.1 17,085,416 70.6 10,223,875 74.2 cost of sales

Wholesalevehicle cost 1,710,103 20.1 713,961 13.8 4,411,175 18.2 1,669,595 12.1 of sales

Other cost of 53,859 0.6 48,419 0.9 140,573 0.6 154,666 1.1 sales

TOTAL COST OF 7,691,199 90.2 4,553,514 87.8 21,637,164 89.4 12,048,136 87.4 SALES

GROSS PROFIT 836,560 9.8 631,430 12.2 2,576,553 10.6 1,737,756 12.6

CARMAX AUTO 165,968 1.9 176,445 3.4 607,732 2.5 374,590 2.7 FINANCE INCOME

Selling,general, and 575,930 6.8 430,781 8.3 1,704,285 7.0 1,197,595 8.7 administrativeexpenses

Depreciationand 54,428 0.6 48,016 0.9 157,107 0.6 145,126 1.1 amortization^(2)

Interest 24,303 0.3 19,462 0.4 67,247 0.3 65,889 0.5 expense

Other (income) (8,094) (0.1) (887) - (35,453) (0.1) 728 - expense

Earningsbefore income 355,961 4.2 310,503 6.0 1,291,099 5.3 703,008 5.1 taxes

Income tax 86,523 1.0 75,203 1.5 299,638 1.2 166,034 1.2 provision

NET EARNINGS $ 269,438 3.2 $ 235,300 4.5 $ 991,461 4.1 $ 536,974 3.9

WEIGHTED AVERAGE COMMON SHARES:

Basic 162,006 163,732 162,710 163,278

Diluted 164,873 165,773 165,606 164,976

NET EARNINGS PER SHARE:

Basic $ 1.66 $ 1.44 $ 6.09 $ 3.29

Diluted $ 1.63 $ 1.42 $ 5.99 $ 3.25

(1)

Percents are calculated as a percentage of net sales and operating revenues and may not total due to rounding.

(2)

Depreciation and amortization previously included in Selling, general, and administrative expenses is now separately presented. Prior period amounts have been reclassified to conform to the current period's presentation.

^ Percents are calculated as a percentage of net sales and operating(1) revenues and may not total due to rounding.

Depreciation and amortization previously included in Selling, general,^ and administrative expenses is now separately presented. Prior period(2) amounts have been reclassified to conform to the current period's presentation.

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

As of

November 30

February 28

November 30

(In thousands except share data)

2021

2021

2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

62,598

$

132,319

$

236,643

Restricted cash from collections on auto loans receivable

552,487

496,415

492,610

Accounts receivable, net

563,135

239,070

168,979

Inventory

4,659,460

3,157,159

2,780,205

Other current assets

117,390

91,833

58,660

TOTAL CURRENT ASSETS

5,955,070

4,116,796

3,737,097

Auto loans receivable, net

15,167,170

13,489,819

13,267,364

Property and equipment, net

3,175,577

3,055,563

3,043,345

Deferred income taxes

134,382

164,261

159,209

Operating lease assets

543,645

431,652

439,074

Goodwill

141,258

653

8,676

Other assets

458,117

282,797

278,083

TOTAL ASSETS

$

25,575,219

$

21,541,541

$

20,932,848

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

936,556

$

799,333

$

570,174

Accrued expenses and other current liabilities

530,592

415,465

372,429

Accrued income taxes

518

218

18,322

Current portion of operating lease liabilities

43,151

30,953

30,726

Short-term debt

-

-

1,008

Current portion of long-term debt

10,889

9,927

10,228

Current portion of non-recourse notes payable

535,146

442,652

434,900

TOTAL CURRENT LIABILITIES

2,056,852

1,698,548

1,437,787

Long-term debt, excluding current portion

2,602,598

1,322,415

1,319,496

Non-recourse notes payable, excluding current portion

14,856,266

13,297,504

13,161,504

Operating lease liabilities, excluding current portion

529,821

423,618

431,068

Other liabilities

419,886

434,843

454,517

TOTAL LIABILITIES

20,465,423

17,176,928

16,804,372

Commitments and contingent liabilities

SHAREHOLDERS' EQUITY:

Common stock, $0.50 par value; 350,000,000 shares authorized; 161,871,923 and 163,172,333 shares issued and outstanding as of November 30, 2021 and February 28, 2021, respectively

80,936

81,586

81,517

Capital in excess of par value

1,672,728

1,513,821

1,462,130

Accumulated other comprehensive loss

(100,301)

(118,691)

(152,924)

Retained earnings

3,456,433

2,887,897

2,737,753

TOTAL SHAREHOLDERS' EQUITY

5,109,796

4,364,613

4,128,476

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

25,575,219

$

21,541,541

$

20,932,848

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

As of

November 30 February 28 November 30

(In thousands except share 2021 2021 2020data)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 62,598 $ 132,319 $ 236,643

Restricted cash from collections on auto loans 552,487 496,415 492,610 receivable

Accounts receivable, net 563,135 239,070 168,979

Inventory 4,659,460 3,157,159 2,780,205

Other current assets 117,390 91,833 58,660

TOTAL CURRENT ASSETS 5,955,070 4,116,796 3,737,097

Auto loans receivable, net 15,167,170 13,489,819 13,267,364

Property and equipment, net 3,175,577 3,055,563 3,043,345

Deferred income taxes 134,382 164,261 159,209

Operating lease assets 543,645 431,652 439,074

Goodwill 141,258 653 8,676

Other assets 458,117 282,797 278,083

TOTAL ASSETS $ 25,575,219 $ 21,541,541 $ 20,932,848



LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 936,556 $ 799,333 $ 570,174

Accrued expenses and other 530,592 415,465 372,429 current liabilities

Accrued income taxes 518 218 18,322

Current portion of operating 43,151 30,953 30,726 lease liabilities

Short-term debt - - 1,008

Current portion of long-term 10,889 9,927 10,228 debt

Current portion of 535,146 442,652 434,900 non-recourse notes payable

TOTAL CURRENT LIABILITIES 2,056,852 1,698,548 1,437,787

Long-term debt, excluding 2,602,598 1,322,415 1,319,496 current portion

Non-recourse notes payable, 14,856,266 13,297,504 13,161,504 excluding current portion

Operating lease liabilities, 529,821 423,618 431,068 excluding current portion

Other liabilities 419,886 434,843 454,517

TOTAL LIABILITIES 20,465,423 17,176,928 16,804,372



Commitments and contingent liabilities

SHAREHOLDERS' EQUITY:

Common stock, $0.50 par value; 350,000,000 shares authorized; 161,871,923 and 163,172,333 shares issued 80,936 81,586 81,517 and outstanding as of November 30, 2021 and February 28, 2021, respectively

Capital in excess of par 1,672,728 1,513,821 1,462,130 value

Accumulated other (100,301) (118,691) (152,924) comprehensive loss

Retained earnings 3,456,433 2,887,897 2,737,753

TOTAL SHAREHOLDERS' EQUITY 5,109,796 4,364,613 4,128,476

TOTAL LIABILITIES AND $ 25,575,219 $ 21,541,541 $ 20,932,848 SHAREHOLDERS' EQUITY

CARMAX, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended November 30

(In thousands)

2021

2020

OPERATING ACTIVITIES:

Net earnings

$

991,461

$

536,974

Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:

Depreciation and amortization

200,819

180,495

Share-based compensation expense

108,962

73,946

Provision for loan losses

87,342

156,147

Provision for cancellation reserves

91,607

53,511

Deferred income tax provision (benefit)

19,564

(19,529)

Other

(26,808)

5,966

Net (increase) decrease in:

Accounts receivable, net

(290,346)

22,111

Inventory

(1,502,323)

66,211

Other current assets

(13,615)

29,478

Auto loans receivable, net

(1,764,693)

(73,827)

Other assets

(18,309)

(8,151)

Net increase (decrease) in:

Accounts payable, accrued expenses and other

current liabilities and accrued income taxes

170,474

(124,092)

Other liabilities

(136,780)

(30,854)

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES

(2,082,645)

868,386

INVESTING ACTIVITIES:

Capital expenditures

(226,903)

(123,952)

Proceeds from disposal of property and equipment

260

1,846

Proceeds from sale of business

12,284

-

Purchases of investments

(13,676)

(2,709)

Sales and returns of investments

36,915

2,739

Business acquisition, net of cash acquired

(241,563)

-

NET CASH USED IN INVESTING ACTIVITIES

(432,683)

(122,076)

FINANCING ACTIVITIES:

Increase in short-term debt, net

-

968

Proceeds from issuances of long-term debt

5,804,200

1,562,300

Payments on long-term debt

(4,524,973)

(2,022,586)

Cash for debt issuance costs

(14,473)

(12,797)

Payments on finance lease obligations

(8,822)

(4,871)

Issuances of non-recourse notes payable

11,217,298

7,947,313

Payments on non-recourse notes payable

(9,565,649)

(7,940,254)

Repurchase and retirement of common stock

(475,950)

(158,625)

Equity issuances

76,310

94,295

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

2,507,941

(534,257)

(Decrease) increase in cash, cash equivalents, and restricted cash

(7,387)

212,053

Cash, cash equivalents, and restricted cash at beginning of year

771,947

656,390

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD

$

764,560

$

868,443

View source version on businesswire.com: https://www.businesswire.com/news/home/20211222005086/en/

CONTACT: Investors: David Lowenstein, Assistant Vice President, Investor Relations investor_relations@carmax.com, (804) 747-0422 x7865

CONTACT: Media: pr@carmax.com, (855) 887-2915