CarMax 2002 Annual Report Download - page 2

Download and view the complete annual report

Please find page 2 of the 2002 CarMax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

Fiscal Years Ended February 28 or 29
(Dollar amounts in thousands except per share data) 2002 2001 2000
CIRCUIT CITY STORES, INC.
Net sales and operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,791,468 $12,959,028 $12,614,390
Earnings from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . $ 218,795 $ 160,802 $ 327,830
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,539,386 $ 3,871,333 $ 3,955,348
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,734,438 $ 2,356,483 $ 2,142,174
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,011,384 $ 1,555,580 $ 1,536,456
CIRCUIT CITY GROUP
Net sales and operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,589,803 $10,458,037 $10,599,406
Earnings from continuing operations before income
attributed to the reserved CarMax Group shares . . . . . . . . . . . . $ 127,993 $ 115,238 $ 326,712
Earnings from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . $ 190,799 $ 149,247 $ 327,574
Earnings per share from continuing operations:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.93 $ 0.73 $ 1.63
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.92 $ 0.73 $ 1.60
Number of Circuit City Superstores. . . . . . . . . . . . . . . . . . . . . . . . . 604 594 571
CARMAX GROUP
Net sales and operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,201,665 $ 2,500,991 $ 2,014,984
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,802 $ 45,564 $ 1,118
Net earnings per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.87 $ 0.45 $ 0.01
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.82 $ 0.43 $ 0.01
Number of CarMax retail units . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 40 40
On June 16, 1999, Digital Video Express announced that it would discontinue operations. Results of continuing operations of Circuit City Stores, Inc. and Circuit City Group
shown in the tables above exclude Digital Video Express. See notes to consolidated and group financial statements.
THE CIRCUIT CITY STORES, INC. COMMON STOCK SERIES INCLUDE:
Circuit City Group Common Stock (NYSE:CC). Circuit City is a leading national retailer of brand-name consumer electronics, personal
computers and entertainment software. At the end of fiscal year 2002, the Circuit City business included 604 Superstores in 159 markets
and 20 Circuit City Express mall stores. The Circuit City Group Common Stock includes shares of CarMax Group Common Stock
reserved for the Circuit City Group or for issuance to holders of Circuit City Group Common Stock.
CarMax Group Common Stock (NYSE:KMX). As the pioneer of the used-car superstore concept, CarMax is transforming automobile
retailing with a friendly offer that delivers low, no-haggle prices; a broad selection; high quality; and customer-friendly service. At the end
of fiscal year 2002, CarMax operated 40 retail units in 38 locations, including 35 used-car superstores and 18 new-car franchises.
IN THIS REPORT, WE USE THE FOLLOWING TERMS AND DEFINITIONS:
Circuit City Stores and Circuit City Stores, Inc. refer to the corporation, which includes the Circuit City retail stores and related operations
and the CarMax retail stores and related operations.
Circuit City refers to the retail operations bearing the Circuit City name and to all related operations such as Circuit City’s finance operation
and product service.
Circuit City Group refers to the Circuit City and Circuit City-related operations and the CarMax shares reserved for the Circuit City
Group or for issuance to holders of Circuit City Group Common Stock.
CarMax Group and CarMax refer to retail locations bearing the CarMax name and to all related operations such as CarMax’s finance operation.
FORWARD-LOOKING STATEMENTS:
This report contains forward-looking statements, which are subject to risks and uncertainties, including, but not limited to, risks associated
with plans to separate the CarMax business from the company and create an independent, separately traded public company. Additional
discussion of factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expecta-
tions is contained in the company’s Securities and Exchange Commission filings. See also the Circuit City Stores, Inc. “Management’s
Discussion and Analysis of Results of Operations and Financial Condition” contained in this annual report.
FINANCIAL HIGHLIGHTS