Carmax Inc 10-Q for FY2020 Q3

Carmax Inc (KMX)

10-Q 2020-01-07 For: 2019-11-30

Added on April 07, 2026

About this 10-Q

Carmax Inc filed this 10-Q on January 7, 2020, covering the quarter ended November 30, 2019 (FY2020 Q3).

Headline figures

Quarter ended November 30, 2019, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.79B; up 11.5% from $4.3B a year earlier
Net income: $173.16M; down 9.0% from net income of $190.31M a year earlier
Diluted EPS: $1.04; down 4.6% from $1.09 a year earlier

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Virginia		54-1821055
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

12800 Tuckahoe Creek Parkway		23238
Richmond,	Virginia
(Address of Principal Executive Offices)		(Zip Code)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	KMX	New York Stock Exchange



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐



Class		Outstanding as of December 31, 2019
Common Stock, par value $0.50		163,385,139



			Page No.
PART I.	FINANCIAL INFORMATION

	Item 1.	Financial Statements:

		Consolidated Statements of Earnings (Unaudited) –
		Three and Nine Months Ended November 30, 2019 and 2018	3

		Consolidated Statements of Comprehensive Income (Unaudited) –
		Three and Nine Months Ended November 30, 2019 and 2018	4

		Consolidated Balance Sheets (Unaudited) –
		November 30, 2019 and February 28, 2019	5

		Consolidated Statements of Cash Flows (Unaudited) –
		Nine Months Ended November 30, 2019 and 2018	6

		Consolidated Statements of Shareholders’ Equity (Unaudited) –
		Three and Nine Months Ended November 30, 2019 and 2018	7

		Notes to Consolidated Financial Statements (Unaudited)	9

	Item 2.	Management’s Discussion and Analysis of Financial Condition and
		Results of Operations	25

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41

	Item 4.	Controls and Procedures	41

PART II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	42

	Item 1A.	Risk Factors	42

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42

	Item 6.	Exhibits	43

SIGNATURES			44



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Three Months Ended November 30								Nine Months Ended November 30
(In thousands except per share data)	2019			%⁽¹⁾		2018		%⁽¹⁾	2019			%⁽¹⁾	2018		%⁽¹⁾
SALES AND OPERATING REVENUES:
Used vehicle sales	$	4,028,811		84.1		$	3,547,925	82.6	$	12,915,763		84.1	$	11,544,340	83.3
Wholesale vehicle sales	610,983			12.8		603,584		14.1	1,951,718			12.7	1,849,225		13.3
Other sales and revenues	150,234			3.1		144,362		3.4	490,016			3.2	460,933		3.3
NET SALES AND OPERATING REVENUES	4,790,028			100.0		4,295,871		100.0	15,357,497			100.0	13,854,498		100.0
COST OF SALES:
Used vehicle cost of sales	3,615,704			75.5		3,177,953		74.0	11,549,445			75.2	10,305,945		74.4
Wholesale vehicle cost of sales	504,177			10.5		498,840		11.6	1,601,573			10.4	1,518,698		11.0
Other cost of sales	56,500			1.2		49,841		1.2	156,996			1.0	148,642		1.1
TOTAL COST OF SALES	4,176,381			87.2		3,726,634		86.7	13,308,014			86.7	11,973,285		86.4
GROSS PROFIT	613,647			12.8		569,237		13.3	2,049,483			13.3	1,881,213		13.6
CARMAX AUTO FINANCE INCOME	114,033			2.4		109,725		2.6	344,123			2.2	334,985		2.4
Selling, general and administrative expenses	484,848			10.1		409,520		9.5	1,455,339			9.5	1,301,308		9.4
Interest expense	21,843			0.5		18,814		0.4	60,700			0.4	54,816		0.4
Other (income) expense	(6,570		)	(0.1	)	2,820		0.1	(6,786		)	—	3,097		—
Earnings before income taxes	227,559			4.8		247,808		5.8	884,353			5.8	856,977		6.2
Income tax provision	54,403			1.1		57,497		1.3	210,854			1.4	207,120		1.5
NET EARNINGS	$	173,156		3.6		$	190,311	4.4	$	673,499		4.4	$	649,857	4.7
WEIGHTED AVERAGE COMMON SHARES:
Basic	164,273					173,816			165,321				176,088
Diluted	166,534					175,321			167,154				177,656
NET EARNINGS PER SHARE:
Basic	$	1.05				$	1.09		$	4.07			$	3.69
Diluted	$	1.04				$	1.09		$	4.03			$	3.66



	Three Months Ended November 30					Nine Months Ended November 30
(In thousands)	2019		2018			2019			2018
NET EARNINGS	$	173,156	$	190,311		$	673,499		$	649,857
Other comprehensive income (loss), net of taxes
Net change in retirement benefit plan unrecognized actuarial losses	355		370			1,066			1,109
Net change in cash flow hedge unrecognized losses	9,268		(72		)	(15,063		)	(934		)
Other comprehensive income (loss), net of taxes	9,623		298			(13,997		)	175
TOTAL COMPREHENSIVE INCOME	$	182,779	$	190,609		$	659,502		$	650,032



	As of November 30			As of February 28
(In thousands except share data)	2019			2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	56,583		$	46,938
Restricted cash from collections on auto loan receivables	458,493			440,669
Accounts receivable, net	142,737			139,850
Inventory	2,682,574			2,519,455
Other current assets	109,857			67,101
TOTAL CURRENT ASSETS	3,450,244			3,214,013
Auto loan receivables, net	13,276,654			12,428,487
Property and equipment, net of accumulated depreciation of $1,239,443 and $1,297,393 as of November 30, 2019 and February 28, 2019, respectively	3,036,663			2,828,058
Deferred income taxes	67,162			61,346
Operating lease assets	454,708			—
Other assets	201,799			185,963
TOTAL ASSETS	$	20,487,230		$	18,717,867

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	641,434		$	593,171
Accrued expenses and other current liabilities	340,475			318,204
Accrued income taxes	1,497			3,784
Current portion of operating lease liabilities	30,813			—
Short-term debt	421			1,129
Current portion of long-term debt	8,541			10,177
Current portion of non-recourse notes payable	397,860			385,044
TOTAL CURRENT LIABILITIES	1,421,041			1,311,509
Long-term debt, excluding current portion	1,704,284			1,649,244
Non-recourse notes payable, excluding current portion	12,899,970			12,127,290
Operating lease liabilities, excluding current portion	446,302			—
Other liabilities	317,580			272,796
TOTAL LIABILITIES	16,789,177			15,360,839

Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY:
Common stock, $0.50 par value; 350,000,000 shares authorized; 163,795,082 and 167,478,924 shares issued and outstanding as of November 30, 2019 and February 28, 2019, respectively	81,897			83,739
Capital in excess of par value	1,321,567			1,237,153
Accumulated other comprehensive loss	(82,007		)	(68,010		)
Retained earnings	2,376,596			2,104,146
TOTAL SHAREHOLDERS’ EQUITY	3,698,053			3,357,028
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	20,487,230		$	18,717,867



	Nine Months Ended November 30, 2019
												Accumulated
	Common					Capital in						Other
	Shares		Common			Excess of			Retained			Comprehensive
(In thousands)	Outstanding		Stock			Par Value			Earnings			Loss			Total
Balance as of February 28, 2019	167,479		$	83,739		$	1,237,153		$	2,104,146		$	(68,010	)	$	3,357,028
Net earnings	—		—			—			266,744			—			266,744
Other comprehensive loss	—		—			—			—			(13,196		)	(13,196		)
Share-based compensation expense	—		—			18,912			—			—			18,912
Repurchases of common stock	(2,953	)	(1,476		)	(21,991		)	(181,368		)	—			(204,835		)
Exercise of common stock options	727		363			32,888			—			—			33,251
Stock incentive plans, net shares issued	142		71			(5,220		)	—			—			(5,149		)
Balance as of May 31, 2019	165,395		$	82,697		$	1,261,742		$	2,189,522		$	(81,206	)	$	3,452,755
Net earnings	—		—			—			233,599			—			233,599
Other comprehensive loss	—		—			—			—			(10,424		)	(10,424		)
Share-based compensation expense	—		—			10,757			—			—			10,757
Repurchases of common stock	(1,526	)	(763		)	(11,933		)	(115,666		)	—			(128,362		)
Exercise of common stock options	1,008		504			52,766			—			—			53,270
Stock incentive plans, net shares issued	9		4			(42		)	—			—			(38		)
Balance as of August 31, 2019	164,886		$	82,442		$	1,313,290		$	2,307,455		$	(91,630	)	$	3,611,557
Net earnings	—		—			—			173,156			—			173,156
Other comprehensive income	—		—			—			—			9,623			9,623
Share-based compensation expense	—		—			8,745			—			—			8,745
Repurchases of common stock	(1,270	)	(635		)	(10,170		)	(104,015		)	—			(114,820		)
Exercise of common stock options	178		89			9,757			—			—			9,846
Stock incentive plans, net shares issued	1		1			(55		)	—			—			(54		)
Balance as of November 30, 2019	163,795		$	81,897		$	1,321,567		$	2,376,596		$	(82,007	)	$	3,698,053



	Nine Months Ended November 30, 2018
												Accumulated
	Common					Capital in						Other
	Shares		Common			Excess of			Retained			Comprehensive
(In thousands)	Outstanding		Stock			Par Value			Earnings			Loss			Total
Balance as of February 28, 2018	179,748		$	89,874		$	1,234,047		$	2,047,240		$	(54,312	)	$	3,316,849
Net earnings	—		—			—			238,656			—			238,656
Other comprehensive loss	—		—			—			—			(733		)	(733		)
Share-based compensation expense	—		—			16,645			—			—			16,645
Repurchases of common stock	(3,308	)	(1,654		)	(22,824		)	(182,926		)	—			(207,404		)
Exercise of common stock options	212		106			8,946			—			—			9,052
Stock incentive plans, net shares issued	68		34			(2,202		)	—			—			(2,168		)
Adoption of ASU 2014-09	—		—			—			12,864			—			12,864
Balance as of May 31, 2018	176,720		$	88,360		$	1,234,612		$	2,115,834		$	(55,045	)	$	3,383,761
Net earnings	—		—			—			220,890			—			220,890
Other comprehensive income	—		—			—			—			610			610
Share-based compensation expense	—		—			9,695			—			—			9,695
Repurchases of common stock	(2,291	)	(1,146		)	(16,334		)	(153,746		)	—			(171,226		)
Exercise of common stock options	860		430			38,019			—			—			38,449
Stock incentive plans, net shares issued	1		1			(62		)	—			—			(61		)
Balance as of August 31, 2018	175,290		$	87,645		$	1,265,930		$	2,182,978		$	(54,435	)	$	3,482,118
Net earnings	—		—			—			190,311			—			190,311
Other comprehensive income	—		—			—			—			298			298
Share-based compensation expense	—		—			9,654			—			—			9,654
Repurchases of common stock	(3,658	)	(1,829		)	(26,601		)	(225,898		)	—			(254,328		)
Exercise of common stock options	153		77			7,002			—			—			7,079
Stock incentive plans, net shares issued	—		—			(19		)	—			—			(19		)
Balance as of November 30, 2018	171,785		$	85,893		$	1,255,966		$	2,147,391		$	(54,137	)	$	3,435,113



	Three Months Ended November 30						Nine Months Ended November 30
(In millions)	2019			2018			2019			2018
Used vehicle sales	$	4,028.8		$	3,547.9		$	12,915.8		$	11,544.3
Wholesale vehicle sales	611.0			603.6			1,951.7			1,849.2
Other sales and revenues:
Extended protection plan revenues	97.0			85.6			321.7			284.2
Third-party finance fees, net	(9.4		)	(8.4		)	(35.2		)	(32.5		)
Service revenues	28.9			32.4			96.3			105.1
Other	33.7			34.8			107.2			104.1
Total other sales and revenues	150.2			144.4			490.0			460.9
Total net sales and operating revenues	$	4,790.0		$	4,295.9		$	15,357.5		$	13,854.5


⁽¹⁾	Annualized percentage of total average managed receivables.


⁽¹⁾	Represents receivables restricted as excess collateral for the non-recourse funding vehicles.



	Nine Months Ended November 30
(In thousands)	2019			2018
OPERATING ACTIVITIES:
Net earnings	$	673,499		$	649,857
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization	158,226			135,609
Share-based compensation expense	98,177			61,403
Provision for loan losses	132,650			111,703
Provision for cancellation reserves	65,166			54,952
Deferred income tax (benefit) provision	(744		)	909
Other	(72		)	4,104
Net (increase) decrease in:
Accounts receivable, net	(2,887		)	22,165
Inventory	(163,119		)	(34,006		)
Other current assets	(41,869		)	40,952
Auto loan receivables, net	(980,817		)	(875,269		)
Other assets	10,185			(6,734		)
Net increase (decrease) in:
Accounts payable, accrued expenses and other
current liabilities and accrued income taxes	20,604			22,236
Other liabilities	(86,905		)	(73,251		)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(117,906		)	114,630
INVESTING ACTIVITIES:
Capital expenditures	(249,177		)	(243,311		)
Proceeds from disposal of property and equipment	3			680
Purchases of investments	(8,438		)	(5,470		)
Sales of investments	1,025			1,104
NET CASH USED IN INVESTING ACTIVITIES	(256,587		)	(246,997		)
FINANCING ACTIVITIES:
(Decrease) increase in short-term debt, net	(708		)	309
Proceeds from issuances of long-term debt	4,707,500			2,758,000
Payments on long-term debt	(4,702,807		)	(2,768,419		)
Cash paid for debt issuance costs	(14,849		)	(12,329		)
Payments on finance lease obligations	(2,813		)	(528		)
Issuances of non-recourse notes payable	8,596,000			8,183,502
Payments on non-recourse notes payable	(7,810,958		)	(7,435,128		)
Repurchase and retirement of common stock	(458,587		)	(633,170		)
Equity issuances	96,367			54,580



	Three Months Ended November 30										Nine Months Ended November 30
(In millions)	2019			% ⁽¹⁾		2018			% ⁽¹⁾		2019			% ⁽¹⁾		2018			% ⁽¹⁾
Interest margin:
Interest and fee income	$	278.9		8.4		$	247.8		8.0		$	820.8		8.4		$	722.3		8.0
Interest expense	(90.4		)	(2.7	)	(75.3		)	(2.4	)	(268.4		)	(2.8	)	(208.2		)	(2.3	)
Total interest margin	188.5			5.7		172.5			5.6		552.4			5.7		514.1			5.7
Provision for loan losses	(49.0		)	(1.5	)	(40.8		)	(1.3	)	(132.7		)	(1.4	)	(111.7		)	(1.2	)
Total interest margin after provision for loan losses	139.5			4.2		131.7			4.3		419.7			4.3		402.4			4.5

Total other expense	—			—		(0.1		)	—		—			—		(0.4		)	—

Direct expenses:
Payroll and fringe benefit expense	(10.8		)	(0.3	)	(9.4		)	(0.3	)	(31.3		)	(0.3	)	(28.6		)	(0.3	)
Other direct expenses	(14.7		)	(0.4	)	(12.5		)	(0.4	)	(44.3		)	(0.5	)	(38.4		)	(0.4	)
Total direct expenses	(25.5		)	(0.8	)	(21.9		)	(0.7	)	(75.6		)	(0.8	)	(67.0		)	(0.7	)
CarMax Auto Finance income	$	114.0		3.4		$	109.7		3.6		$	344.1		3.5		$	335.0		3.7

Total average managed receivables	$	13,239.2				$	12,321.0				$	12,986.2				$	12,054.6



	As of November 30			As of February 28
(In millions)	2019			2019
Asset-backed term funding	$	10,616.9		$	10,273.4
Warehouse facilities	2,305.7			1,877.0
Overcollateralization ⁽¹⁾	296.3			273.3
Other managed receivables⁽²⁾	133.7			86.5
Total ending managed receivables	13,352.6			12,510.2
Accrued interest and fees	59.9			49.6
Other	17.8			6.9
Less allowance for loan losses	(153.6		)	(138.2		)
Auto loan receivables, net	$	13,276.7		$	12,428.5



	As of November 30			As of February 28
(In millions)	2019⁽¹⁾		% ⁽²⁾	2019⁽¹⁾		% ⁽²⁾
A	$	6,691.4	50.1	$	6,225.6	49.8
B	4,813.9		36.1	4,488.2		35.9
C and other	1,847.3		13.8	1,796.4		14.3
Total ending managed receivables	$	13,352.6	100.0	$	12,510.2	100.0


⁽²⁾	Other managed receivables includes receivables not funded through the non-recourse funding vehicles.


⁽¹⁾	Classified based on credit grade assigned when customers were initially approved for financing.


Level 1	Inputs include unadjusted quoted prices in active markets for identical assets or liabilities that we can access at the measurement date.


Level 2	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets in active markets, quoted prices from identical or similar assets in inactive markets and observable inputs such as interest rates and yield curves.


Level 3	Inputs that are significant to the measurement that are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk).



	As of November 30, 2019
(In thousands)	Level 1			Level 2			Total
Assets:
Money market securities	$	234,676		$	—		$	234,676
Mutual fund investments	21,905			—			21,905
Derivative instruments	—			3,711			3,711
Total assets at fair value	$	256,581		$	3,711		$	260,292

Percent of total assets at fair value	98.6		%	1.4		%	100.0		%
Percent of total assets	1.3		%	—		%	1.3		%

Liabilities:
Derivative instruments	$	—		$	(1,653	)	$	(1,653	)
Total liabilities at fair value	$	—		$	(1,653	)	$	(1,653	)

Percent of total liabilities	—		%	—		%	—		%



	As of February 28, 2019
(In thousands)	Level 1			Level 2			Total
Assets:
Money market securities	$	372,448		$	—		$	372,448
Mutual fund investments	19,263			—			19,263
Derivative instruments	—			1,844			1,844
Total assets at fair value	$	391,711		$	1,844		$	393,555

Percent of total assets at fair value	99.5		%	0.5		%	100.0		%
Percent of total assets	2.1		%	—		%	2.1		%

Liabilities:
Derivative instruments	$	—		$	(6,120	)	$	(6,120	)
Total liabilities at fair value	$	—		$	(6,120	)	$	(6,120	)

Percent of total liabilities	—		%	—		%	—		%


⁽¹⁾	Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually.


⁽²⁾	Borrowings accrue interest at variable rates based on the Eurodollar rate (LIBOR), the federal funds rate, or the prime rate, depending on the type of borrowing.



(In billions)	Capacity
Warehouse facilities:
February 2020 expiration	$	1.95
August 2020 expiration	1.40
September 2020 expiration	0.15
Combined warehouse facility limit	$	3.50
Unused capacity	$	1.19

Non-recourse notes payable outstanding:
Warehouse facilities	$	2.31
Asset-backed term funding transactions	11.01
Non-recourse notes payable	$	13.32



	Three Months Ended				Nine Months Ended
	November 30				November 30
	2019		2018		2019		2018
Number of shares repurchased (in thousands)	1,270.3		3,657.8		5,748.9		9,257.1
Average cost per share	$	90.38	$	69.52	$	77.92	$	68.36
Available for repurchase, as of end of period (in millions)	$	1,666.0	$	2,384.0	$	1,666.0	$	2,384.0



	Nine Months Ended November 30, 2019
	Equity Classified									Liability Classified
(Shares/units in thousands)	Options			MSUs			Other			RSUs
Outstanding as of February 28, 2019	7,869			509			164			1,609
Granted	1,595			131			83			562
Exercised or vested and converted	(1,913		)	(150		)	(81		)	(504		)
Cancelled	(16		)	(5		)	—			(89		)
Outstanding as of November 30, 2019	7,535			485			166			1,578

Weighted average grant date fair value per share/unit:

Granted	$	22.10		$	98.63		$	80.55		$	78.61
Ending outstanding	$	18.16		$	84.02		$	70.97		$	66.85


	As of November 30, 2019
Unrecognized compensation (in millions)	$	47.0		$	15.6		$	3.1



							Total
	Net			Net			Accumulated
	Unrecognized			Unrecognized			Other
	Actuarial			Hedge Gains			Comprehensive
(In thousands, net of income taxes)	Losses			(Losses)			Loss
Balance as of February 28, 2019	$	(70,478	)	$	2,468		$	(68,010	)
Other comprehensive loss before reclassifications	—			(16,807		)	(16,807		)
Amounts reclassified from accumulated other comprehensive loss	1,066			1,744			2,810
Other comprehensive income (loss)	1,066			(15,063		)	(13,997		)
Balance as of November 30, 2019	$	(69,412	)	$	(12,595	)	$	(82,007	)



(In thousands)	Three Months Ended November 30, 2019		Nine Months Ended November 30, 2019
Operating lease cost ⁽¹⁾	$	14,262	$	43,074
Finance lease cost:
Depreciation of lease assets	1,563		4,114
Interest on lease liabilities	2,053		5,499
Total finance lease cost	3,616		9,613
Total lease cost	$	17,878	$	52,687



(In thousands)	Classification	As of November 30, 2019
Assets:
Operating lease assets	Operating lease assets	$	454,708
Finance lease assets	Property and equipment, net ⁽¹⁾	77,304
Total lease assets		$	532,012
Liabilities:
Current:
Operating leases	Current portion of operating lease liabilities	$	30,813
Finance leases	Accrued expenses and other current liabilities	4,512
Long-term:
Operating leases	Operating lease liabilities, excluding current portion	446,302
Finance leases	Other liabilities	79,551
Total lease liabilities		$	561,178



Lease Term and Discount Rate	As of November 30, 2019
Weighted Average Remaining Lease Term (in years)
Operating leases	20.06
Finance leases	13.78

Weighted Average Discount Rate
Operating leases	5.40	%
Finance leases	10.30	%



(In thousands)	Nine Months Ended November 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	42,712
Operating cash flows from finance leases	2,572
Financing cash flows from finance leases	2,813

Lease assets obtained in exchange for lease obligations:
Operating leases	25,029
Finance leases	52,102



	As of November 30, 2019
(In thousands)	Operating Leases ⁽¹⁾			Finance Leases⁽¹⁾
Fiscal 2020, remaining	$	13,741		$	2,793
Fiscal 2021	54,334			12,869
Fiscal 2022	50,796			13,662
Fiscal 2023	48,188			13,879
Fiscal 2024	46,985			16,534
Thereafter	615,224			102,802
Total lease payments	829,268			162,539
Less: interest	(352,153		)	(78,476		)
Present value of lease liabilities	$	477,115		$	84,063



	As of February 28, 2019
	Capital			Operating Lease
(In thousands)	Leases⁽¹⁾			Commitments⁽¹⁾
Fiscal 2020	$	5,139		$	55,295
Fiscal 2021	6,055			52,142
Fiscal 2022	6,185			48,886
Fiscal 2023	6,288			46,235
Fiscal 2024	5,186			45,067
Fiscal 2025 and thereafter	11,445			595,047
Total minimum lease payments	40,298			$	842,672
Less amounts representing interest	(8,518		)
Present value of net minimum lease payments	$	31,780



(Dollars in millions except per share or per unit data)	Three Months Ended November 30, 2019			Change from Three Months Ended November 30, 2018		Nine Months Ended November 30, 2019			Change from Nine Months Ended November 30, 2018
Income statement information
Net sales and operating revenues	$	4,790.0		11.5	%	$	15,357.5		10.8	%
Gross profit	$	613.6		7.8	%	$	2,049.5		8.9	%
CAF income	$	114.0		3.9	%	$	344.1		2.7	%
Selling, general and administrative expenses	$	484.8		18.4	%	$	1,455.3		11.8	%
Net earnings	$	173.2		(9.0	)%	$	673.5		3.6	%
Unit sales information
Used unit sales	192,563			11.0	%	625,922			10.1	%
Change in used unit sales in comparable stores	7.5		%	N/A		6.7		%	N/A
Wholesale unit sales	113,996			3.3	%	361,277			4.8	%
Per unit information
Used gross profit per unit	$	2,145		0.6	%	$	2,183		0.3	%
Wholesale gross profit per unit	$	937		(1.3	)%	$	969		1.0	%
SG&A per used vehicle unit	$	2,518		6.6	%	$	2,325		1.6	%
Per share information
Net earnings per diluted share	$	1.04		(4.6	)%	$	4.03		10.1	%