CarMax 2001 Annual Report Download - page 87

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84
CIRCUIT CITY STORES, INC. 2001 ANNUAL REPORT
84
CIRCUIT CITY STORES, INC. 2001 ANNUAL REPORT
Independent Auditors Report
The Board of Directors and Stockholders of Circuit City Stores, Inc.:
We have audited the accompanying balance sheets of the
CarMax Group (as defined in Note 1) as of February 28, 2001
and February 29, 2000 and the related statements of operations,
group equity and cash flows for each of the fiscal years in the
three-year period ended February 28, 2001. These financial state-
ments are the responsibility of Circuit City Stores, Inc.’s manage-
ment. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of mate-
rial misstatement. An audit includes examining, on a test basis, evi-
dence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting princi-
ples used and significant estimates made by management, as well as
evaluating 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 CarMax Group should be read in conjunction with the con-
solidated financial statements of Circuit City Stores, Inc. and sub-
sidiaries and the financial statements of the Circuit City Group.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of
the CarMax Group as of February 28, 2001 and February 29,
2000 and the results of its operations and its cash flows for each
of the fiscal years in the three-year period ended February 28,
2001 in conformity with accounting principles generally
accepted in the United States of America.
Richmond, Virginia
April 2, 2001
14. QUARTERLY FINANCIAL DATA (UNAUDITED)
First Quarter Second Quarter Third Quarter Fourth Quarter Year
(Amounts in thousands) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000
Net sales and operating revenues
..... $625,741 $486,063 $673,561 $535,727 $561,693 $488,958 $639,996 $504,236 $2,500,991 $2,014,984
Gross profit
............................................ $ 85,462 $ 61,996 $ 90,549 $ 63,780 $ 71,679 $ 52,728 $ 82,069 $ 61,861 $ 329,759 $ 240,365
Net earnings (loss)
............................... $ 13,944 $ 2,733 $ 16,271 $ 3,233 $ 7,568 $ (3,136) $ 7,781 $ (1,712) $ 45,564 $ 1,118
Net earnings (loss) attributed to
CarMax Group Common Stock
... $ 3,535 $ 646 $ 4,126 $ 775 $ 1,920 $ (757) $ 1,974 $ (408) $ 11,555 $ 256