Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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, forecasts, estimates, and expectations is contained in t
Slide 3: CarMax Today
Baltimore / DC Chicago Charlotte Greensboro Greenville Birmingham Memphis Louisville Indianapolis 1 Houston San Antonio Austin Sacramento Salt Lake City Nashville Knoxville Albuquerque Las Vegas Kansas City Richmond Atlanta Raleigh Los Angeles 1 Wichita Columbus Oklahoma City Dallas/Fort Worth CarMa
Slide 4: Sustainable Store Growth Restarted
CarMax Today Sustainable Store Growth Restarted Prototype Development Prototype Refinement Competitive Response (Rapid Growth) Stabilization Growth Restart
Slide 5: Unit Growth Continued
CarMax Today Unit Growth Continued 1,300 5,574 19,618 31,701 56,594 96,915 111,247 132,868 164,062 190,135 224,099 253,168 289,888 50,000 100,000 150,000 200,000 250,000 300,000 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Competitive Response (Rapid Growth) Stabilizati
Slide 6: Profitability Established
CarMax Today Profitability Established $0 ($25) ($2) ($4) ($5) ($9) ($34) ($24) $.5 $44 $89 $90 $110 $101 $134 ($50) $0 $50 $100 $150 $200 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Prototype Development Prototype Refinement Competitive Response (Rapid Growth) Stabili
Slide 7: Results
Results FY06 FY07e Used unit comp growth 4% 2%-- 8% Total sales growth 19% Net earnings growth 32% EPS $1.27 $1.25 -- $1.47 After adoption of SFAS 123R
Slide 8: 1Q FY07 Results
1Q FY07 Results FY07 Used unit comp growth 6% Used unit sales growth 14% Total sales growth 19% Net earnings growth 54% EPS 53 ¢ After adoption of SFAS 123R
Slide 9: What Is CarMax?
What Is CarMax? Unique retail opportunity Provides superior economic returns
Slide 10: CarMax Sells More Cars
CarMax Sells More Cars Unit Sales / Store CarMax (FY06) 5,040 used Public new car dealers 1,640 new & used Average new car dealer 1,325 new & used Source: CarMax estimates and NADA 2005
Slide 11: CarMax Gains Market Share
CarMax Gains Market Share Used Car Comp Unit Sales 4-Year Average CarMax (FY06) +4% +5% Public new car dealers 0% (4)% Source: Company reports and CarMax estimates
Slide 12: Why Does CarMax Work?
Why Does CarMax Work? Used car focus Consumer-preferred concept Process-driven competitive advantages Organic growth plan
Slide 13: Used Car Focus
Used Car Focus Used Unit Sales Mix % Per month CarMax (FY06) 93% Public new car dealers 35% Average new car dealer 41% Source: Published auto retailer reports and NADA 2005
Slide 14: Why Used Cars?
Why Used Cars? Huge, fragmented business Non-commodity Stable
Slide 15: Used Vehicle Sales Stable
Used Vehicle Sales Stable Source: Manheim Auctions -12.0% -6.0% 0.0% 6.0% 12.0% 2005e % Change New Vehicle Unit Sales % Change Used Vehicle Unit Sales
Slide 16: Consumer-Preferred Concept
Consumer-Preferred Concept Low, no-haggle prices Huge selection of late-model used cars Guaranteed quality Customer-friendly service
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Slide 18: Fortune Magazine Recognition
Fortune Magazine Recognition • Two years running (2005, 2006) • Only auto retailer or manufacturer on list • Voted #1 in Automotive Retailing
Slide 19: Organic Growth
Organic Growth Creates value Not acquisition dependent Not 3 rd -party constrained
Slide 20: Opportunity Scale
Opportunity Scale Market: $280 Bn Currently 30% of U.S. Mature Stores 8% - 10% market share
Slide 21: Growth Plan (FY06 – FY10)
Growth Plan (FY06 – FY10) 5-year goal: $10 - $12 Bn Comp used unit growth: 4% - 8% New store openings 15% - 20% New store openings Store margin expansion Fixed overhead leverage Profit Growth Sales Growth
Slide 22: FY07 Planned New Superstores
Gastonia (Charlotte) Austin South Atlanta Oklahoma City Charlottesville (Richmond) Columbus Fresno FY07 Planned New Superstores Fredericksburg (DC / Richmond) Burbank (Los Angeles) New Stores Remaining to be Opened New Stores Remaining to be Opened Hartford Car Buying Center Test Car Buying Center T
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