CarMax 2000 Annual Report Download - page 65

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CIRCUIT CITY STORES, INC. 2000 ANNUAL REPORT 63
CIRCUIT CITY GROUP
16. QUARTERLY FINANCIAL DATA (UNAUDITED)
(Amounts in thousands First Quarter Second Quarter Third Quarter Fourth Quarter Year
except per share data) 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
Net sales and operating revenues....... $2,204,919 $1,924,698 $2,422,667 $2,117,796 $2,495,649 $2,272,258 $3,476,171 $3,029,418 $10,599,406 $9,344,170
Gross profit......................................... $ 540,731 $ 465,012 $ 604,503 $ 526,622 $ 618,182 $ 553,388 $ 858,776 $ 738,950 $ 2,622,192 $2,283,972
Earnings from continuing
operations before Inter-Group
Interest in the CarMax Group........ $ 39,311 $ 23,818 $ 71,234 $ 46,053 $ 54,714 $ 38,340 $ 161,453 $ 126,773 $ 326,712 $ 234,984
Earnings from continuing operations $ 41,398 $ 21,339 $ 73,692 $ 43,773 $ 52,335 $ 32,710 $ 160,149 $ 119,105 $ 327,574 $ 216,927
Loss from discontinued operations.... $ (130,240) $ (8,070) $ – $ (11,626) $ – $ (16,765) $ – $ (32,085) $ (130,240) $ (68,546)
Net (loss) earnings............................. $ (88,842) $ 13,269 $ 73,692 $ 32,147 $ 52,335 $ 15,945 $ 160,149 $ 87,020 $ 197,334 $ 148,381
Net (loss) earnings per share:
Basic:
Continuing operations ............. $ 0.21 $ 0.11 $ 0.37 $ 0.22 $ 0.26 $ 0.16 $ 0.79 $ 0.60 $ 1.63 $ 1.09
Discontinued operations.......... $ (0.65) $ (0.04) $ – $ (0.06) $ – $ (0.08) $ – $ (0.16) $ (0.65) $ (0.34)
Net (loss) earnings................... $ (0.44) $ 0.07 $ 0.37 $ 0.16 $ 0.26 $ 0.08 $ 0.79 $ 0.44 $ 0.98 $ 0.75
Diluted:
Continuing operations ............. $ 0.20 $ 0.11 $ 0.36 $ 0.22 $ 0.26 $ 0.16 $ 0.78 $ 0.59 $ 1.60 $ 1.08
Discontinued operations.......... $ (0.64) $ (0.04) $ – $ (0.06) $ – $ (0.08) $ – $ (0.16) $ (0.64) $ (0.34)
Net (loss) earnings................... $ (0.44) $ 0.07 $ 0.36 $ 0.16 $ 0.26 $ 0.08 $ 0.78 $ 0.44 $ 0.96 $ 0.74
INDEPENDENT AUDITORS’ REPORT
The Board of Directors and Stockholders
of Circuit City Stores, Inc.:
We have audited the accompanying balance sheets of the Circuit City
Group (as defined in Note 1) as of February 29,2000 and February 28,
1999 and the related statements of earnings,group equity and cash flows
for each of the fiscal years in the three-year period ended February 29,
2000.These financial statements are the responsibility of Circuit City
Stores,Inc.’s management.Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement.An audit includes examining,on a test
basis,evidence supporting the amounts and disclosures in the financial
statements.An audit also includes assessing the accounting principles
used and significant estimates made by management,as well as evaluat-
ing the overall financial statement presentation.We believe that our audits
provide a reasonable basis for our opinion.
As more fully discussed in Note 1,the financial statements of the Circuit
City Group should be read in conjunction with the consolidated financial
statements of Circuit City Stores,Inc.and subsidiaries and the financial
statements of the CarMax Group.
The Circuit City Group has accounted for its interest in the CarMax Group
in a manner similar to the equity method of accounting.Generally
accepted accounting principles require that the CarMax Group be consoli-
dated with the Circuit City Group.
In our opinion,except for the effects of not consolidating the CarMax
Group with the Circuit City Group as discussed in the preceding para-
graph,the financial statements referred to above present fairly, in all
material respects,the financial position of the Circuit City Group as of
February 29, 2000 and February 28,1999 and the results of its operations
and its cash flows for each of the fiscal years in the three-year period
ended February 29, 2000 in conformity with generally accepted account-
ing principles.
Richmond,Virginia
April 4,2000