VIRGINIA
(State
or other jurisdiction of incorporation
or organization)
|
54-1821055
(I.R.S.
Employer Identification
No.)
|
12800
TUCKAHOE CREEK PARKWAY, RICHMOND, VIRGINIA
(Address
of principal executive offices)
|
23238
(Zip
Code)
|
Title
of each class
Common
Stock, par value $0.50
Rights
to Purchase Series A Preferred Stock,
par
value $20.00
|
Name
of each exchange on which registered
New
York Stock Exchange
New
York Stock Exchange
|
|
|
|
Page
No.
|
|
|
Business
|
4
|
||
Risk
Factors
|
11
|
|||
Unresolved
Staff Comments
|
12
|
|||
|
Properties
|
13
|
||
|
Legal
Proceedings
|
14
|
||
|
Submission
of Matters to a Vote of Security Holders
|
14
|
||
|
Market
for the Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
15
|
||
|
Selected
Financial Data
|
17
|
||
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
18
|
||
|
Quantitative
and Qualitative Disclosures about Market Risk
|
34
|
||
|
Consolidated
Financial Statements and Supplementary Data
|
35
|
||
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
61
|
||
Controls
and Procedures
|
61
|
|||
Other
Information
|
61
|
|||
|
Directors,
Executive Officers and Corporate Governance
|
62
|
||
|
Executive
Compensation
|
63
|
||
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
63
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||
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Certain
Relationships and Related Transactions, and Director
Independence
|
63
|
||
|
Principal
Accountant Fees and Services
|
63
|
||
|
Exhibits
and Financial Statement Schedules
|
64
|
||
|
65
|
· |
Our
projected future sales growth, comparable store unit sales growth,
earnings, and earnings per share.
|
· |
Our
expected future expenditures, cash needs, and financing
sources.
|
· |
The
projected number, timing, and cost of new store
openings.
|
· |
Our
sales and marketing plans.
|
· |
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
assessment of the effect of recent legislation and accounting
pronouncements.
|
|
Used
Car Superstores
|
|
|
||
|
Mega
|
Standard
(2)
|
Satellite(2)
|
Co-Located
New
Car Stores (1)
|
Total
|
Alabama
|
—
|
1
|
—
|
—
|
1
|
California
|
1
|
4
|
3
|
1
|
9
|
Connecticut
|
—
|
1
|
1
|
—
|
2
|
Florida
|
3
|
4
|
3
|
1
|
11
|
Georgia
|
1
|
2
|
1
|
—
|
4
|
Illinois
|
3
|
1
|
2
|
—
|
6
|
Indiana
|
—
|
1
|
1
|
—
|
2
|
Kansas
|
—
|
2
|
—
|
—
|
2
|
Kentucky
|
—
|
1
|
—
|
—
|
1
|
Maryland
|
1
|
1
|
1
|
1
|
4
|
Missouri
|
—
|
—
|
1
|
—
|
1
|
Nevada
|
—
|
1
|
1
|
—
|
2
|
New
Mexico
|
—
|
1
|
—
|
—
|
1
|
North
Carolina
|
—
|
3
|
3
|
—
|
6
|
Ohio
|
—
|
1
|
1
|
—
|
2
|
Oklahoma
|
—
|
1
|
—
|
—
|
1
|
South
Carolina
|
—
|
2
|
—
|
—
|
2
|
Tennessee
|
—
|
3
|
1
|
—
|
4
|
Texas
|
4
|
4
|
3
|
—
|
11
|
Utah
|
—
|
1
|
—
|
—
|
1
|
Virginia
|
—
|
4
|
2
|
—
|
6
|
Wisconsin
|
—
|
1
|
—
|
1
|
2
|
Total
|
13
|
40
|
24
|
4
|
81
|
(1)
|
We
currently operate seven new car franchises. Two franchises are integrated
within used car superstores and do not operate as separate stores.
The
remaining five franchises are operated from four new car stores that
are
co-located with used car
superstores.
|
(2)
|
The
Kenosha, Wisc. superstore has been reclassified from a satellite
to a
standard superstore.
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||
Fiscal
2007
|
|||||||||||||
High
|
$
|
18.20
|
$
|
18.95
|
$
|
23.99
|
$
|
29.44
|
|||||
Low
|
$
|
15.14
|
$
|
14.85
|
$
|
18.59
|
$
|
23.10
|
|||||
Fiscal
2006
|
|||||||||||||
High
|
$
|
17.00
|
$
|
17.12
|
$
|
16.00
|
$
|
15.92
|
|||||
Low
|
$
|
12.44
|
$
|
12.32
|
$
|
13.00
|
$
|
13.20
|
As
of February 28 or 29
|
|||||||||||||||||||
2002
|
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||||
CarMax
|
$
|
100.00
|
$
|
56.28
|
$
|
127.15
|
$
|
123.41
|
$
|
117.50
|
$
|
197.08
|
|||||||
S&P
500 Index
|
$
|
100.00
|
$
|
77.32
|
$
|
107.10
|
$
|
114.58
|
$
|
124.20
|
$
|
139.06
|
|||||||
S&P
500 Retailing Index
|
$
|
100.00
|
$
|
72.39
|
$
|
113.21
|
$
|
125.29
|
$
|
135.97
|
$
|
149.85
|
FY07
|
FY06
|
FY05
|
FY04
|
FY03
|
FY02
|
||||||||||||||
Income
statement information
(In
millions)
|
|||||||||||||||||||
Used
vehicle sales
|
$
|
5,872.8
|
$
|
4,771.3
|
$
|
3,997.2
|
$
|
3,470.6
|
$
|
2,912.1
|
$
|
2,497.2
|
|||||||
New
vehicle sales
|
445.1
|
502.8
|
492.1
|
515.4
|
519.8
|
559.9
|
|||||||||||||
Wholesale
vehicle sales
|
918.4
|
778.3
|
589.7
|
440.6
|
366.6
|
325.6
|
|||||||||||||
Other
sales and revenues
|
229.3
|
207.6
|
181.3
|
171.1
|
171.4
|
151.1
|
|||||||||||||
Net
sales and operating revenues
|
7,465.7
|
6,260.0
|
5,260.3
|
4,597.7
|
3,969.9
|
3,533.8
|
|||||||||||||
Gross
profit
|
971.1
|
790.7
|
650.2
|
570.9
|
468.2
|
419.4
|
|||||||||||||
CarMax
Auto Finance income
|
132.6
|
104.3
|
82.7
|
85.0
|
82.4
|
66.5
|
|||||||||||||
SG&A
|
776.2
|
674.4
|
565.3
|
479.3
|
399.5
|
337.0
|
|||||||||||||
Earnings
before income taxes
|
323.3
|
217.6
|
165.8
|
178.4
|
149.6
|
143.9
|
|||||||||||||
Provision
for income taxes
|
124.8
|
83.4
|
64.5
|
68.9
|
59.2
|
54.9
|
|||||||||||||
Net
earnings
|
198.6
|
134.2
|
101.3
|
109.6
|
90.4
|
89.1
|
|||||||||||||
Share
and per share
information
(Shares
in millions)
|
|||||||||||||||||||
Weighted
average shares outstanding:
|
|||||||||||||||||||
Basic
|
212.5
|
209.3
|
208.1
|
207.0
|
206.0
|
204.1
|
|||||||||||||
Diluted
|
216.7
|
212.8
|
211.3
|
210.6
|
209.1
|
207.8
|
|||||||||||||
Net
earnings per share:
|
|||||||||||||||||||
Basic
|
$
|
0.93
|
$
|
0.64
|
$
|
0.49
|
$
|
0.53
|
$
|
0.44
|
$
|
0.44
|
|||||||
Diluted
|
$
|
0.92
|
$
|
0.63
|
$
|
0.48
|
$
|
0.52
|
$
|
0.43
|
$
|
0.43
|
|||||||
Balance
sheet information (In
millions)
|
|||||||||||||||||||
Total
current assets
|
$
|
1,150.5
|
$
|
941.7
|
$
|
853.0
|
$
|
760.5
|
$
|
697.3
|
$
|
577.7
|
|||||||
Total
assets
|
1,885.6
|
1,509.6
|
1,306.3
|
1,055.1
|
921.7
|
721.9
|
|||||||||||||
Total
current liabilities
|
512.0
|
344.9
|
317.8
|
232.2
|
237.7
|
221.1
|
|||||||||||||
Short-term
debt
|
3.3
|
0.5
|
65.2
|
4.4
|
56.1
|
9.8
|
|||||||||||||
Current
portion of long-term debt
|
148.4
|
59.8
|
0.3
|
—
|
—
|
78.6
|
|||||||||||||
Long-term
debt, excluding current portion
|
33.7
|
134.8
|
128.4
|
100.0
|
100.0
|
—
|
|||||||||||||
Total
shareholders’ equity
|
1,247.4
|
980.1
|
814.2
|
688.0
|
558.6
|
487.1
|
|||||||||||||
Unit
sales information
|
|||||||||||||||||||
Used
vehicle units sold
|
337,021
|
289,888
|
253,168
|
224,099
|
190,135
|
164,062
|
|||||||||||||
New
vehicle units sold
|
18,563
|
20,901
|
20,636
|
21,641
|
22,360
|
24,164
|
|||||||||||||
Wholesale
vehicle units sold
|
208,959
|
179,548
|
155,393
|
127,168
|
104,593
|
90,937
|
|||||||||||||
Percent
changes in
|
|||||||||||||||||||
Comparable
store used vehicle unit sales
|
9
|
4
|
1
|
6
|
8
|
24
|
|||||||||||||
Total
used vehicle unit sales
|
16
|
15
|
13
|
18
|
16
|
23
|
|||||||||||||
Total
net sales and operating revenues
|
19
|
19
|
14
|
16
|
12
|
28
|
|||||||||||||
Diluted
net earnings per share
|
46
|
31
|
(8
|
)
|
21
|
—
|
95
|
||||||||||||
Other
year-end information
|
|||||||||||||||||||
Used
car superstores
|
77
|
67
|
58
|
49
|
40
|
35
|
|||||||||||||
Retail
stores
|
81
|
71
|
61
|
52
|
44
|
40
|
|||||||||||||
Associates
|
13,736
|
11,712
|
10,815
|
9,355
|
8,263
|
7,196
|
· |
Net
sales and operating revenues increased 19% to $7.47 billion from
$6.26
billion in fiscal 2006, while net earnings increased 48% to $198.6
million, or $0.92 per share, from $134.2 million, or $0.63 per share.
|
· |
Total
used vehicle unit sales increased 16%, reflecting the combination
of our
9% increase in comparable store used unit sales and the growth in
our
store base.
|
· |
Total
wholesale vehicle unit sales increased 16%, consistent with our used
vehicle unit sales growth.
|
· |
We
opened ten used car superstores in fiscal 2007, including five standard
superstores and five satellite superstores.
|
· |
Our
total gross profit per unit increased to $2,731 from $2,544 in fiscal
2006. We realized improvements in gross profit per unit in all categories,
including used vehicles, new vehicles, wholesale vehicles, and other.
We
believe our used vehicle gross profit benefited from our strong,
consistent sales performance, which resulted in fewer pricing markdowns
being made, as well as a more stable underlying economic environment.
|
· |
CAF
income increased 27% to $132.6 million from $104.3 million in fiscal
2006.
The improvement reflected the growth in retail vehicle sales and
managed
receivables, an improvement in the gain on loans originated and sold,
and
an increase in the average amount financed. CAF income included a
benefit
of $13.0 million, or $0.04 per share for favorable items, primarily
valuation adjustments of our retained interest, in fiscal 2007, compared
with a benefit of $15.2 million, or $0.04 per share in fiscal 2006.
|
· |
Selling,
general, and administrative expenses as a percent of net sales and
operating revenues (the “SG&A ratio”) declined to 10.4% from 10.8% in
fiscal 2006. We benefited from the leverage of fixed expenses generated
by
our strong comparable store sales growth.
|
· |
As
a result of adopting SFAS 123(R) in fiscal 2007, we recognized share-based
compensation expense of $0.09 per share in fiscal 2007 compared with
$0.07
per share in fiscal 2006, as restated. The fiscal 2007 expense includes
costs of $0.02 per share resulting from the retirement of our former
chief
executive officer.
|
· |
Net
cash provided by operations increased to $136.8 million from $117.5
million in fiscal 2006, primarily reflecting the improved net earnings
offset by increased investment in working
capital.
|
Years
Ended February 28
|
|||||||||||||||||||
(In
millions)
|
2007
|
%
|
2006
|
%
|
2005
|
%
|
|||||||||||||
Used
vehicle sales
|
$
|
5,872.8
|
78.7
|
$
|
4,771.3
|
76.2
|
$
|
3,997.2
|
76.0
|
||||||||||
New
vehicle sales
|
445.1
|
6.0
|
502.8
|
8.0
|
492.1
|
9.4
|
|||||||||||||
Wholesale
vehicle sales
|
918.4
|
12.3
|
778.3
|
12.4
|
589.7
|
11.2
|
|||||||||||||
Other
sales and revenues:
|
|||||||||||||||||||
Extended
service plan revenues
|
114.4
|
1.5
|
97.9
|
1.6
|
84.6
|
1.6
|
|||||||||||||
Service
department sales
|
90.6
|
1.2
|
93.4
|
1.5
|
82.3
|
1.6
|
|||||||||||||
Third-party
finance fees, net
|
24.3
|
0.3
|
16.3
|
0.3
|
14.4
|
0.3
|
|||||||||||||
Total
other sales and revenues
|
229.3
|
3.1
|
207.6
|
3.3
|
181.3
|
3.4
|
|||||||||||||
Total
net sales and operating revenues
|
$
|
7,465.7
|
100.0
|
$
|
6,260.0
|
100.0
|
$
|
5,260.3
|
100.0
|
Years
Ended February 28
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Vehicle
units:
|
||||||||||
Used
vehicles
|
16
|
%
|
15
|
%
|
13
|
%
|
||||
New
vehicles
|
(11
|
)%
|
1
|
%
|
(5
|
)%
|
||||
Total
|
14
|
%
|
14
|
%
|
11
|
%
|
||||
Vehicle
dollars:
|
||||||||||
Used
vehicles
|
23
|
%
|
19
|
%
|
15
|
%
|
||||
New
vehicles
|
(11
|
)%
|
2
|
%
|
(5
|
)%
|
||||
Total
|
20
|
%
|
17
|
%
|
13
|
%
|
Years
Ended February 28
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Vehicle
units:
|
||||||||||
Used
vehicles
|
9
|
%
|
4
|
%
|
1
|
%
|
||||
New
vehicles
|
(11
|
)%
|
1
|
%
|
8
|
%
|
||||
Total
|
8
|
%
|
4
|
%
|
1
|
%
|
||||
Vehicle
dollars:
|
||||||||||
Used
vehicles
|
16
|
%
|
8
|
%
|
3
|
%
|
||||
New
vehicles
|
(12
|
)%
|
1
|
%
|
8
|
%
|
||||
Total
|
13
|
%
|
8
|
%
|
3
|
%
|
Years
Ended February 28
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Used
car superstores, beginning of year
|
67
|
|
|
58
|
|
|
49
|
|||
Superstore
openings:
|
||||||||||
Standard
superstores
|
5
|
|
|
5
|
|
|
5
|
|||
Satellite
superstores
|
5
|
|
|
4
|
|
|
4
|
|||
Total
superstore openings
|
10
|
|
|
9
|
|
|
9
|
|||
Used
car superstores, end of year
|
77
|
67
|
58
|
|||||||
Openings
as a percent of the beginning-of-year store base
|
15
|
%
|
16
|
%
|
18
|
%
|
Years
Ended February 28
|
||||||||||
2007
|
|
2006
|
|
2005
|
||||||
Used
vehicles
|
337,021
|
289,888
|
253,168
|
|||||||
New
vehicles
|
18,563
|
20,901
|
20,636
|
|||||||
Wholesale
vehicles
|
208,959
|
179,548
|
155,393
|
Years
Ended February 28
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Used
vehicles
|
$
|
17,249
|
$
|
16,298
|
$
|
15,663
|
||||
New
vehicles
|
$
|
23,833
|
$
|
23,887
|
$
|
23,671
|
||||
Wholesale
vehicles
|
$
|
4,286
|
$
|
4,233
|
$
|
3,712
|
Years
Ended February 28
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Vehicle
units:
|
||||||||||
Used
vehicles
|
95
|
%
|
93
|
%
|
92
|
%
|
||||
New
vehicles
|
5
|
7
|
8
|
|||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
||||
Vehicle
dollars:
|
||||||||||
Used
vehicles
|
93
|
%
|
90
|
%
|
89
|
%
|
||||
New
vehicles
|
7
|
10
|
11
|
|||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
As
of February 28
|
||||||||||
2007
|
2006
|
2005
|
||||||||
Mega
superstores (1)
|
13
|
13
|
13
|
|||||||
Standard
superstores (2)
(4)
|
40
|
35
|
30
|
|||||||
Satellite
superstores (3)
(4)
|
24
|
19
|
15
|
|||||||
Total
used car superstores
|
77
|
67
|
58
|
|||||||
Co-located
new car stores
|
4
|
4
|
3
|
|||||||
Total
|
81
|
71
|
61
|
(1) |
Generally
70,000 to 95,000 square feet on 20 to 35 acres.
|
(2) |
Generally
40,000 to 60,000 square feet on 10 to 25
acres.
|
(3) |
Generally
10,000 to 20,000 square feet on 4 to 10
acres.
|
(4)
|
The
Kenosha, Wisc. superstore has been reclassified from a satellite
to a
standard superstore.
|
Years
Ended February 28
|
|||||||||||||||||||
2007
|
2006
|
2005
|
|||||||||||||||||
$
per unit (1)
|
%
(2)
|
$
per unit (1)
|
%
(2)
|
$
per unit (1)
|
%
(2)
|
||||||||||||||
Used
vehicle gross profit
|
$
|
1,903
|
10.9
|
$
|
1,808
|
11.0
|
$
|
1,817
|
11.5
|
||||||||||
New
vehicle gross profit
|
$
|
1,169
|
4.9
|
$
|
934
|
3.9
|
$
|
860
|
3.6
|
||||||||||
Wholesale
vehicle gross profit
|
$
|
742
|
16.9
|
$
|
700
|
16.1
|
$
|
464
|
12.2
|
||||||||||
Other
gross profit
|
$
|
431
|
66.8
|
$
|
391
|
58.5
|
$
|
366
|
55.3
|
||||||||||
Total
gross profit
|
$
|
2,731
|
13.0
|
$
|
2,544
|
12.6
|
$
|
2,375
|
12.4
|
(1) |
Calculated
as category gross profit divided by its respective units sold, except
the
other and total categories, which are divided by total retail units
sold.
|
(2) |
Calculated
as a percentageof its respective sales or
revenue.
|
Years
Ended February 28
|
|||||||||||||||||||
(In
millions)
|
2007
|
%
|
2006
|
%
|
2005
|
%
|
|||||||||||||
Total
gain income (1)
|
$
|
99.7
|
4.3
|
$
|
77.1
|
4.1
|
$
|
58.3
|
3.8
|
||||||||||
Other
CAF income: (2)
|
|||||||||||||||||||
Servicing
fee income
|
32.4
|
1.1
|
27.6
|
1.0
|
24.7
|
1.0
|
|||||||||||||
Interest
income
|
26.6
|
0.9
|
21.4
|
0.8
|
19.0
|
0.8
|
|||||||||||||
Total
other CAF income
|
59.0
|
1.9
|
49.0
|
1.8
|
43.7
|
1.8
|
|||||||||||||
Direct
CAF expenses: (2)
|
|||||||||||||||||||
CAF
payroll and fringe benefit
expense
|
12.0
|
0.4
|
10.3
|
0.4
|
9.0
|
0.4
|
|||||||||||||
Other
direct CAF expenses
|
14.0
|
0.5
|
11.5
|
0.4
|
10.3
|
0.4
|
|||||||||||||
Total
direct CAF expenses
|
26.0
|
0.9
|
21.8
|
0.8
|
19.3
|
0.8
|
|||||||||||||
CarMax
Auto Finance income (3)
|
$
|
132.6
|
1.8
|
$
|
104.3
|
1.7
|
$
|
82.7
|
1.6
|
||||||||||
Total
loans sold
|
$
|
2,322.7
|
$
|
1,887.5
|
$
|
1,534.8
|
|||||||||||||
Average
managed receivables
|
$
|
3,071.1
|
$
|
2,657.7
|
$
|
2,383.6
|
|||||||||||||
Ending
managed receivables
|
$
|
3,311.0
|
$
|
2,772.5
|
$
|
2,494.9
|
|||||||||||||
Total
net sales and operating revenues
|
$
|
7,465.7
|
$
|
6,260.0
|
$
|
5,260.3
|
(1) |
Percent
of loans sold.
|
(2) |
Percent
of average managed
receivables.
|
(3) |
Percent
of net sales and operating
revenues.
|
Years
Ended February 28
|
||||||||||
(In
millions)
|
2007
|
2006
|
2005
|
|||||||
Gains
on sales of loans originated and sold
|
$
|
86.7
|
$
|
61.9
|
$
|
54.9
|
||||
Other
gain income
|
13.0
|
15.2
|
3.3
|
|||||||
Total
gain income
|
$
|
99.7
|
$
|
77.1
|
$
|
58.3
|
||||
Loans
originated and sold
|
$
|
2,240.2
|
$
|
1,792.6
|
$
|
1,483.8
|
||||
Receivables
repurchased from public securitizations and
resold
|
82.5
|
94.8
|
51.0
|
|||||||
Total
loans sold
|
$
|
2,322.7
|
$
|
1,887.5
|
$
|
1,534.8
|
||||
Gain
percentage on loans originated and sold
|
3.9
|
%
|
3.5
|
%
|
3.7
|
%
|
||||
Total
gain income as a percentage of total loans sold
|
4.3
|
%
|
4.1
|
%
|
3.8
|
%
|
· |
Valuation
adjustments.
The net favorable valuation adjustments in both fiscal 2007 and fiscal
2006 primarily resulted from lowering loss rate assumptions, mostly
on
pools of receivables securitized in calendar years 2003, 2004, and
2005.
We believe these pools of receivables experienced lower-than-expected
loss
rates as a result of a combination of factors, including
better-than-expected performance of our new credit scorecard implemented
in calendar year 2002, favorable economic conditions, operating
efficiencies resulting from systems enhancements, and an improved
recovery
rate.
|
· |
New
public securitizations.
CarMax periodically repurchases receivables from the warehouse facility
and refinances them in public securitizations. The impact of refinancing
receivables can be favorable or unfavorable depending on the relative
economics of funding structures at the time the receivables are
refinanced. These transactions did not have a material impact in
fiscal
2007. In fiscal 2006, we recognized a benefit of $0.01 per share
as we
refinanced balances from the warehouse facility into new public
securitizations.
|
· |
Repurchase
and resale of receivables.
Our securitizations typically contain an option to repurchase the
securitized receivables when the outstanding balance in a pool of
automobile loan receivables falls below 10% of the original pool
balance.
This option was exercised two times in each of fiscal 2007 and 2006.
In
each case, the remaining eligible automobile loan receivables were
subsequently resold into the warehouse facility. These transactions
did
not have a material impact in fiscal 2007. In fiscal 2006, the spread
between the APR on the loans and the then-current funding cost in
the
warehouse facility resulted in an earnings benefit.
|
As
of February 28
|
||||||||||
(In
millions)
|
2007
|
2006
|
2005
|
|||||||
Loans
securitized
|
$
|
3,242.1
|
$
|
2,710.4
|
$
|
2,427.2
|
||||
Loans
held for sale or investment
|
68.9
|
62.0
|
67.7
|
|||||||
Total
managed receivables
|
$
|
3,311.0
|
$
|
2,772.5
|
$
|
2,494.9
|
||||
Accounts
31+ days past due
|
$
|
56.9
|
$
|
37.4
|
$
|
31.1
|
||||
Past
due accounts as a percentage of total managed
receivables
|
1.72
|
%
|
1.35
|
%
|
1.24
|
%
|
Years
Ended February 28
|
||||||||||
(In
millions)
|
2007
|
2006
|
2005
|
|||||||
Net
credit losses on managed receivables
|
$
|
20.7
|
$
|
18.4
|
$
|
19.5
|
||||
Average
managed receivables
|
$
|
3,071.1
|
$
|
2,657.7
|
$
|
2,383.6
|
||||
Net
credit losses as a percentage of average managed
receivables
|
0.67
|
%
|
0.69
|
%
|
0.82
|
%
|
||||
Recovery
rate
|
51
|
%
|
51
|
%
|
46
|
%
|
Location
|
Television
Market
|
Market
Status
|
Standard
Superstores
|
Satellite
Superstores
|
Tucson,
Ariz.
|
Tucson
|
New
market
|
1
|
-
|
Milwaukee,
Wis.
|
Milwaukee
|
New
market
|
-
|
2
|
Torrance,
Calif.
|
Los
Angeles
|
Existing
market
|
-
|
1
|
Roswell,
Ga.
|
Atlanta
|
Existing
market
|
-
|
1
|
Newport
News, Va.
|
Norfolk
/ Virginia Beach
|
Existing
market
|
-
|
1
|
Gastonia,
N.C.
|
Charlotte
|
Existing
market
|
1
|
-
|
Kearney
Mesa, Calif.
|
San
Diego
|
New
market
|
-
|
1
|
Modesto,
Calif.
|
Sacramento
|
Existing
market
|
1
|
-
|
Riverside,
Calif.
|
Los
Angeles
|
Existing
market
|
-
|
1
|
Omaha,
Neb.
|
Omaha
|
New
market
|
1
|
-
|
Jackson,
Miss.
|
Jackson
|
New
market
|
1
|
-
|
Ellicott
City, Md.
|
DC
/ Baltimore
|
Existing
market
|
-
|
1
|
Total
planned openings
|
5
|
8
|
As
of February 28, 2007
|
||||||||||||||||
Total
|
Less
Than
1
Year
|
1
to 3
Years
|
3
to 5
Years
|
More
Than
5
Years
|
||||||||||||
Revolving
credit agreement (1)
|
$
|
150.7
|
$ |
—
|
$ |
—
|
$
|
150.7
|
$
|
—
|
||||||
Capital
leases (2)
|
67.0
|
|
4.5
|
|
9.1
|
9.5
|
|
43.9
|
||||||||
Operating
leases (2)
|
963.7
|
71.0
|
144.2
|
145.5
|
603.0
|
|||||||||||
Purchase
obligations (3)
|
79.0
|
38.5
|
30.8
|
9.7
|
—
|
|||||||||||
Asset
retirement obligations (4)
|
1.1
|
—
|
—
|
—
|
1.1
|
|||||||||||
Total
|
$
|
1,261.5
|
$
|
114.0
|
$
|
184.1
|
$
|
315.4
|
$
|
648.0
|
(1) |
See
Note 9 to the consolidated financial
statements.
|
(2) |
See
Note 12 to the consolidated financial
statements.
|
(3) |
Includes
certain enforceable and legally binding obligations related to
the
purchase of real property and third-party outsourcing
services.
|
(4) |
Represents
the present value of costs to retire signage, fixtures, and other
assets
at certain leased
locations.
|
As
of February 28
|
|||||||
(In
millions)
|
2007
|
2006
|
|||||
Principal
amount of:
|
|||||||
Fixed-rate
securitizations
|
$
|
2,644.1
|
$
|
2,126.4
|
|||
Floating-rate
securitizations synthetically altered to fixed
|
597.5
|
584.0
|
|||||
Floating-rate
securitizations
|
0.6
|
—
|
|||||
Loans
held for investment (1)
|
62.7
|
57.9
|
|||||
Loans
held for sale (2)
|
6.2
|
4.1
|
|||||
Total
|
$
|
3,311.0
|
$
|
2,772.5
|
(1) |
The
majority is held by a bankruptcy-remote special purpose
entity.
|
(2) |
Held
by a bankruptcy-remote special purpose
entity.
|
Years
Ended February 28
|
|||||||||||||||||||
(In
thousands except per share data)
|
2007
|
|
%(1)
|
|
2006
|
|
%(1)
|
|
2005
|
|
%(1)
|
||||||||
Restated (2)
|
Restated (2)
|
||||||||||||||||||
SALES
AND OPERATING REVENUES:
|
|||||||||||||||||||
Used
vehicle sales
|
$
|
5,872,816
|
78.7
|
$
|
4,771,325
|
76.2
|
$
|
3,997,218
|
76.0
|
||||||||||
New
vehicle sales
|
445,144
|
6.0
|
502,805
|
8.0
|
492,054
|
9.4
|
|||||||||||||
Wholesale
vehicle sales
|
918,408
|
12.3
|
778,268
|
12.4
|
589,704
|
11.2
|
|||||||||||||
Other
sales and revenues
|
229,288
|
3.1
|
207,569
|
3.3
|
181,286
|
3.4
|
|||||||||||||
NET
SALES AND OPERATING REVENUES
|
7,465,656
|
100.0
|
6,259,967
|
100.0
|
5,260,262
|
100.0
|
|||||||||||||
Cost
of sales
|
6,494,594
|
87.0
|
5,469,253
|
87.4
|
4,610,066
|
87.6
|
|||||||||||||
GROSS
PROFIT
|
971,062
|
13.0
|
790,714
|
12.6
|
650,196
|