CarMax Files 2024 Annual Report

Ticker: KMX · Form: 10-K · Filed: 2024-04-15T00:00:00.000Z

Sentiment: neutral

Topics: annual-report, sec-filing, financials

Related Tickers: VRSN, GM, F, TSLA

TL;DR

KMX filed its 2024 10-K. All good on reporting requirements.

AI Summary

CarMax, Inc. (KMX) filed its annual report for the fiscal year ended February 29, 2024. The company, incorporated in Virginia with its principal executive offices in Richmond, is registered with the SEC under file number 001-31420. Its common stock trades on the New York Stock Exchange under the ticker symbol KMX. The filing indicates CarMax has met all reporting requirements for the preceding 12 months and the past 90 days.

Why It Matters

This 10-K filing provides a comprehensive overview of CarMax's financial performance and business operations for the fiscal year, which is crucial for investors to assess the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a standard annual report filing and does not contain immediate, specific risk-inducing information beyond what is typical for a public company.

Key Numbers

Key Players & Entities

FAQ

What is the primary purpose of this Form 10-K filing for CarMax, Inc.?

The primary purpose is to provide an annual report on the company's financial performance and business operations for the fiscal year ended February 29, 2024, as required by the Securities Exchange Act of 1934.

On which stock exchange is CarMax, Inc. (KMX) listed?

CarMax, Inc. (KMX) is listed on the New York Stock Exchange.

What is the fiscal year-end date for this report?

The fiscal year-end date for this report is February 29, 2024.

Has CarMax, Inc. met its filing requirements for the past 12 months?

Yes, the filing indicates that CarMax, Inc. has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.

Where are CarMax, Inc.'s principal executive offices located?

CarMax, Inc.'s principal executive offices are located at 12800 Tuckahoe Creek Parkway, Richmond, Virginia 23238.

Filing Stats: 4,517 words · 18 min read · ~15 pages · Grade level 13 · Accepted 2024-04-15 10:36:38

Key Financial Figures

Filing Documents

Business 5

Item 1. Business 5

Risk Factors 12

Item 1A. Risk Factors 12

Unresolved Staff Comments 20

Item 1B. Unresolved Staff Comments 20

Cybersecurity 20

Item 1C. Cybersecurity 20

Properties 21

Item 2. Properties 21

Legal Proceedings 22

Item 3. Legal Proceedings 22

Mine Safety Disclosures 22

Item 4. Mine Safety Disclosures 22 Executive Officers of the Company 22 PART II

Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24

[Reserved] 25

Item 6. [Reserved] 25

Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures about Market Risk 41

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 41

Consolidated Financial Statements and Supplementary Data 43

Item 8. Consolidated Financial Statements and Supplementary Data 43

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 84

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 84

Controls and Procedures 84

Item 9A. Controls and Procedures 84

Other Information 84

Item 9B. Other Information 84

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III

Directors, Executive Officers and Corporate Governance 85

Item 10. Directors, Executive Officers and Corporate Governance 85

Executive Compensation 85

Item 11. Executive Compensation 85

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85

Certain Relationships and Related Transactions and Director Independence 85

Item 13. Certain Relationships and Related Transactions and Director Independence 85

Principal Accountant Fees and Services 85

Item 14. Principal Accountant Fees and Services 85 PART IV

Exhibits and Financial Statement Schedules 86

Item 15. Exhibits and Financial Statement Schedules 86

Form 10-K Summary 88

Item 16. Form 10-K Summary 88 Signatures 89 3 PART I In this document, "we," "our," "us," "CarMax" and "the company" refer to CarMax, Inc. and its wholly owned subsidiaries, unless the context requires otherwise. FORWARD-LOOKING AND CAUTIONARY STATEMENTS This Annual Report on Form 10-K and, in particular, the description of our business set forth in Item 1 and our Management's Discussion and Analysis of Financial Condition and Results of Operations set forth in Item 7 contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), including statements regarding: Our projected future sales and market share growth, comparable store sales growth, margins, tax rates, earnings, CarMax Auto Finance income and earnings per share. Our business strategies. Our expectations for strategic investments. Our expectations of factors that could affect CarMax Auto Finance income. Our expected future expenditures, cash needs, and financing sources. Our expected capital structure, stock repurchases and indebtedness. The projected number, timing and cost of new location openings. Our gross profit margin, inventory levels and ability to leverage selling, general and administrative and other fixed costs. Our sales and marketing plans. The capabilities of our proprietary information technology systems and other systems. Our assessment of the potential outcome and financial impact of litigation and the potential impact of unasserted claims. Our assessment of competitors and potential competitors. Our expectations for growth in our markets and business sectors. Our assessment of the effect of recent regulations, legislation and accounting pronouncements. In addition, any statements contained in or incorporated by reference into this report that are not statements of historical fact should be considered forward-lookin

Business

Item 1. Business. BUSINESS OVERVIEW CarMax Background CarMax, Inc. delivers 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. We are the nation's largest retailer of used cars, and we sold 765,572 used vehicles at retail during the fiscal year ended February 29, 2024. We are also one of the nation's largest operators of wholesale vehicle auctions, with 546,331 vehicles sold during fiscal 2024, and one of the nation's largest providers of used vehicle financing, servicing approximately 1.1 million customer accounts in our $17.39 billion portfolio of managed receivables as of February 29, 2024. Our omni-channel platform, which gives us the largest addressable market in the used car industry, empowers our retail customers to buy a car on their terms – online, in-store or an integrated combination of both. CarMax was incorporated under the laws of the Commonwealth of Virginia in 1996. CarMax, Inc. is a holding company and our operations are conducted through our subsidiaries. Under the ownership of Circuit City Stores, Inc. ("Circuit City"), we began operations in 1993 with the opening of our first CarMax store in Richmond, Virginia. On October 1, 2002, the CarMax business was separated from Circuit City through a tax-free transaction, becoming an independent, publicly traded company. As of February 29, 2024, we operated 245 used car stores in 109 U.S. television markets. Our home office is located at 12800 Tuckahoe Creek Parkway, Richmond, Virginia. On June 1, 2021, we completed the acquisition of Edmunds Holding Company ("Edmunds"), one of the most well established and trusted online guides for automotive information and a recognized leader in digital car shopping innovations. With this acquisition, CarMax has enhanced its digital capabilities and further strengthened its role and reach across the used auto ecosystem

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