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Raymond James Investor Meetings Atlanta, Georgia October 9, 2008 Katharine W. Kenny

Raymond James Investor Meetings Atlanta, Georgia October 9, 2008 Katharine W. Kenny Assistant Vice President, Investor Relations. Forward-Looking Statements.

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Raymond James Investor Meetings Atlanta, Georgia October 9, 2008 Katharine W. Kenny

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  1. Raymond James Investor Meetings Atlanta, Georgia October 9, 2008 Katharine W. Kenny Assistant Vice President, Investor Relations

  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. The Company disclaims any intent or obligation to update its forward-looking statements.

  3. The CarMax Story • Largest used car retailer in the U.S. • Unmatched consumer offer • Competitively low, no-haggle prices • Huge selection • Guaranteed quality • Customer-friendly sales processes • Unique culture • Diversified profit base

  4. Largest Used Car Retailer in the U.S. • CarMax currently has: • 99 used car superstores • 46 markets • In FYE 02/29/08 CarMax sold: • 377,244 used vehicles • 222,406 wholesale vehicles

  5. Strong Culture • Founded on the principle of integrity • Well-trained, engaged associates • Culture recognized in wide variety of awards • Fortune’s “100 Best Companies to Work For” 4 consecutive years • 2008 International Torch Award for Marketplace Excellence by the Council of Better Business Bureaus • 2008 Training Magazine “Top 125”

  6. Diversified Profit Base (FYE 2/29/08) Store Growth Percentages represent breakdown of gross profit dollars, including CarMax Auto Finance income 6

  7. Consumer Offer Purchasing/ Inventory Management Finance Originations Reconditioning Competitive Advantages Well-tested Proprietary Processes & Systems

  8. Competitive Advantages Scale Efficiencies • Sell more used cars per store • 25,000+ used vehicles in national inventory • Customer transfers represent ≈ 25% of sales • Carmax.com and marketing efficiencies • 70% of customers visit website first

  9. Competitive Advantages carmax.com (original search capability)

  10. Competitive Advantages carmax.com (with new search capability)

  11. Difficult Current Conditions • Economic slowdown and reduced consumer spending power had a negative impact on retail business • Disruption in financial markets reduced ABS liquidity • Consumer confidence at record lows and future conditions uncertain

  12. Results – Q2 FY09

  13. Current Results • Reduced sales primarily due to decrease in traffic, as conversion remained similar to prior year • Wholesale results strong • Buy rate decrease pressured used unit gross profit vs. Q2 ’08, but sequential gross profit increased • CAF results include negative charges of $28 million related to market conditions • Sequential reduction in SG&A due to cost cutting

  14. Steps We’ve Taken • Cut future growth plans • Dramatically decreased inventory and adjusted mix • Reduced variable costs throughout organization • Reduced staff in operations • Increased capacity in warehouse facility to $1.4 billion

  15. CAF Liquidity Options • Warehouse facility now offers greater flexibility to await securitization market improvements • Short-term balance sheet support • Revolver increased to $700 million • Sale-leaseback opportunities • Ongoing exploration of other options, including private securitization • Reduce warehouse usage for short term and offer bank partners more originations

  16. Future Opportunity • Long-term growth story remains strong • Current store base covers only 43% of population • Market share for Carmax averages only 5% in most markets • Unique CarMax model is adaptable to changed market conditions • Opportunities to reduce costs in reconditioning

  17. Why CarMax? A unique and sustainable retail growth story with defensible competitive advantages • Used car focus, with diversified profit base • Unique consumer offer • Process and systems driven • Organic growth opportunity

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