CarMax 2001 Annual Report Download - page 26

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Reported Historical Information
23
CIRCUIT CITY STORES, INC. 2001 ANNUAL REPORT
Circuit City Stores, Inc.
The common stock of Circuit City Stores, Inc. consists of two com-
mon stock series, which are intended to reflect the performance of
the Company's two businesses. The Circuit City Group Common
Stock is intended to track the performance of the Circuit City busi-
ness and related operations and the Group’s retained interest in
the CarMax Group. The effects of the retained interest in the
CarMax Group on the Circuit City Group’s financial statements are
identified by the term “Inter-Group.” During the three-year period
discussed in this annual report, the financial results for the
Company and the Circuit City Group also have included the
Company's investment in Digital Video Express, which has been
discontinued. The CarMax Group Common Stock is intended to
track the performance of the CarMax stores and related opera-
tions. The Circuit City Group’s retained interest is not considered
outstanding CarMax Group Common Stock. Therefore, the net
earnings or losses attributed to the retained interest are not
included in the CarMax Group’s per share calculations.
Holders of Circuit City Group Common Stock and holders of
CarMax Group Common Stock are shareholders of the Company
and as such are subject to all of the risks associated with an
investment in the Company and all of its businesses, assets and
liabilities. The results of operations or financial condition of one
Group could affect the results of operations or financial condition
of the other Group. The discussion and analysis for Circuit City
Stores, Inc. presented below should be read in conjunction with
the discussion and analysis presented for each Group and in
conjunction with all the Company’s SEC filings.
RESULTS OF OPERATIONS
Sales Growth
Total sales for Circuit City Stores, Inc. increased 3 percent in fiscal
2001 to $12.96 billion. In fiscal 2000, total sales increased 17 per-
cent to $12.61 billion from $10.81 billion in fiscal 1999.
PERCENTAGE SALES CHANGE FROM PRIOR YEAR
Circuit City Circuit City CarMax
Stores, Inc. Group Group
Fiscal Total Total Comparable Total Comparable
2001............. 3% (1)% (4)% 24% 17 %
2000 ............ 17% 13 % 8 % 37% 2 %
1999 ............ 22% 17 % 8 % 68% (2)%
1998 ............ 16% 12 % (1)% 71% 6 %
1997 ............ 9% 6 % (8)% 85% 23 %
(Amounts in thousands except per share data) 2001 2000 1999 1998 1997
Net sales and operating revenues ................................ $12,959,028 $12,614,390 $10,810,468 $8,870,797 $ 7,663,811
Earnings from continuing operations ......................... $ 160,802 $ 327,830 $ 211,470 $ 124,947 $ 144,234
Loss from discontinued operations.............................. $–$ (130,240) $ (68,546) $ (20,636) $ (7,820)
Net earnings.................................................................... $ 160,802 $ 197,590 $ 142,924 $ 104,311 $ 136,414
Net earnings (loss) per share attributed to:
Circuit City Group:
Basic:
Continuing operations................................... $0.73$ 1.63 $ 1.09 $ 0.68 $ 0.74
Discontinued operations............................... $–$ (0.65) $ (0.34) $ (0.11) $ (0.04)
Net earnings................................................... $0.73$ 0.98 $ 0.75 $ 0.57 $ 0.70
Diluted:
Continuing operations.................................. $0.73$ 1.60 $ 1.08 $ 0.67 $ 0.73
Discontinued operations............................... $–$ (0.64) $ (0.34) $ (0.10) $ (0.04)
Net earnings................................................... $0.73$ 0.96 $ 0.74 $ 0.57 $ 0.69
CarMax Group:
Basic...................................................................... $0.45$ 0.01 $ (0.24) $ (0.35) $ (0.01)
Diluted.................................................................. $0.43$ 0.01 $ (0.24) $ (0.35) $ (0.01)
Total assets...................................................................... $ 3,871,333 $ 3,955,348 $ 3,445,266 $3,231,701 $ 3,081,173
Long-term debt, excluding current installments ....... $ 116,137 $ 249,241 $ 426,585 $ 424,292 $ 430,290
Deferred revenue and other liabilities......................... $ 92,165 $ 130,020 $ 112,085 $ 145,107 $ 166,295
Cash dividends per share paid on
Circuit City Group Common Stock......................... $0.07$ 0.07 $ 0.07 $ 0.07 $ 0.07
See notes to consolidated financial statements.
Circuit City Stores, Inc. Managements Discussion and
Analysis of Results of Operations and Financial Condition