carmax, inc. annual shareholders’ meeting june 22, 2015
TRANSCRIPT
CarMax, Inc. Annual Shareholders’ Meeting
June 22, 2015
Board of Directors
2
Ron BlaylockFounder and Managing Partner GenNx360Retired CEO Blaylock & Company
Tom FolliardPresident and CEO CarMax
Board of Directors
3
Rakesh GangwalFormer CEO Worldspan TechnologiesFormer CEO U.S. Airways Group
Jeff GartenJuan Trippe Professor Yale School of ManagementChairman Garten Rothkopf
Board of Directors
4
Shira GoodmanPresident, North AmericanCommercial Staples
Bob GraftonRetired Managing Partner – Chief Executive Andersen Worldwide
Board of Directors
5
Ed GrubbRetired EVP and CFO Transamerica
Marcy ShinderChief Marketing Officer Nielsen N.V.
Board of Directors
6
Mitch SteenrodSVP, Chief Financial Officer Pilot Travel Centers
Tom StembergFounder and Chairman Emeritus StaplesManaging General Partner,Highland Consumer Fund Highland Capital Partners
Board of Directors
7
Bill TiefelChairman Emeritus The Ritz-Carlton Hotel CompanyRetired Vice Chairman Marriott International
CarMax, Inc. Annual Shareholders’ Meeting
Tom FolliardPresident and Chief Executive Officer
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, 2015. The company disclaims any intent or obligation to update its forward-looking statements.
9
10
Current CarMax Locations
Existing markets, FY15 New markets opening in FY16
Today -- 150 used car stores in 75 markets
(Size of markers is based on number of stores in each market)
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Compelling Growth Opportunity
6777
89100 100 103 108
118
131
144
158
171
184
50
75
100
125
150
175
200
225
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Used Car Store Base13 to 16 new
stores / yr
174
19014 newstores
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Compelling Growth Opportunity
Large Market Entries:
Fiscal 2013: DenverFiscal 2014: St. Louis
PhiladelphiaFiscal 2015: ClevelandFiscal 2016: Minneapolis / St. Paul
BostonBeyond: San Francisco
SeattleNew York City
Financial Summary
13
$0.4
6
$0.6
1 $0.8
9
$0.8
0
$0.2
5
$1.2
4
$1.6
5
$1.7
9
$1.8
7 $2.1
6
$2.7
3
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Earnings per Diluted Share
10 year CAGR = 10.5%FY15 up 13.5%
10 year CAGR = 19.5%FY15 up 26.4%
$5.3
$6.3
$7.5
$8.2
$7.0
$7.5
$9.0
$10.
0 $11.
0
$12.
6
$14.
3
$0 B
$2 B
$4 B
$6 B
$8 B
$10 B
$12 B
$14 B
$16 B
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Total Revenues
Key Performance Metrics
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FY15 up 10.5%
396 K408 K
448 K
527 K
582 K
300 K
350 K
400 K
450 K
500 K
550 K
600 K
FY11 FY12 FY13 FY14 FY15
Total Retail Used Units
263 K
317 K325 K
343 K
376 K
200 K
250 K
300 K
350 K
400 K
FY11 FY12 FY13 FY14 FY15
Total Wholesale Units
$220
$262
$299
$336
$367
$100 M
$150 M
$200 M
$250 M
$300 M
$350 M
$400 M
FY11 FY12 FY13 FY14 FY15
CAF Income
FY15 up 9.8% FY15 up 9.3%
Q1 FY16 Results
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Q1 FY16 up 9.3% Q1 FY16 up 13.2%
112 K
137 K151 K
165 K
0 K
20 K
40 K
60 K
80 K
100 K
120 K
140 K
160 K
180 K
FY13 FY14 FY15 FY16
Used Units
$0.52
$0.64
$0.76
$0.86
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
FY13 FY14 FY15 FY16
Q1 EPS (diluted)
Stock Repurchase Program
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• Initially launched in fall 2012
• $3.8 billion in total authorizations
• As of 5/31/15:• $1.55 billion utilized• 31.9 million shares repurchased• $2.25 billion available for repurchase
FY15 CarMax Foundation milestones $5.2 million in annual grants; $25 million in total
giving since inception
800 volunteer events; 100% store participation
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CarMax Cares
KaBOOM! partnership 3-year, $4.1 million commitment to bring play
to more than 100,000 children
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CarMax Cares
KaBOOM! partnership 22 of 30 playgrounds completed
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CarMax Cares
CarMax Summer Basketball League 9th year in operation
+500 participants
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CarMax Cares
Above & Beyond Representatives:Gordon Amidon
Sales Associate – Jacksonville, Fla.
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Above & Beyond Recognition
Above & Beyond Representatives:Gordon Amidon
Sales Associate – Jacksonville, Fla.
Anita HowardBusiness Office Associate – Columbus Sawmill
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Above & Beyond Recognition
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