CarMax 2002 Annual Report Download - page 25

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23 CIRCUIT CITY STORES, INC. ANNUAL REPORT 2002
REPORTED HISTORICAL INFORMATION
CIRCUIT CITY STORES, INC.
The common stock of Circuit City Stores, Inc. consists of two
common stock series that are intended to reflect the performance
of the Company’s two businesses. The Circuit City Group
Common Stock is intended to reflect the performance of the
Circuit City stores and related operations and the shares of
CarMax Group Common Stock reserved for the Circuit City
Group or for issuance to holders of Circuit City Group Common
Stock. The fiscal 2000 financial results for the Company and the
Circuit City Group also include the Company’s investment in
Digital Video Express, which was discontinued. The CarMax
Group Common Stock is intended to reflect the performance of
the CarMax stores and related operations. The reserved CarMax
Group shares are not outstanding CarMax Group Common
Stock. The net earnings attributed to the reserved CarMax Group
shares are included in the Circuit City Group’s net earnings and
per share calculations. These earnings are not included in the
CarMax Group per share calculations.
Excluding shares reserved for CarMax employee stock incen-
tive plans, the reserved CarMax Group shares represented 64.1
percent of the total outstanding and reserved shares of CarMax
Group Common Stock at February 28, 2002; 74.6 percent at
February 28, 2001; and 74.7 percent at February 29, 2000. The
reserved CarMax Group shares at February 28, 2002, reflect the
effect of the public offering of CarMax Group Common Stock
completed during the second quarter of fiscal 2002. Since both
the attribution of earnings and the outstanding CarMax Group
shares were adjusted to reflect the impact of this sale, the net
earnings per CarMax Group share were not diluted by this
transaction. Refer to the “Earnings from Continuing Opera-
tions” and “Financing Activities” sections below for further dis-
cussion of the public offering.
On February 22, 2002, Circuit City Stores, Inc. announced
that its board of directors had authorized management to initi-
ate a process that would separate the CarMax auto superstore
business from the Circuit City consumer electronics business
through a tax-free transaction in which CarMax, Inc., presently
a wholly owned subsidiary of Circuit City Stores, Inc., would
become an independent, separately traded public company.
CarMax, Inc. holds substantially all of the businesses, assets and
liabilities of the CarMax Group. The separation plan calls for
Circuit City Stores, Inc. to redeem all outstanding shares of
CarMax Group Common Stock in exchange for shares of com-
mon stock of CarMax, Inc. Simultaneously, shares of CarMax,
Inc. common stock, representing the shares of CarMax Group
(Amounts in thousands except per share data) 2002 2001 2000 1999 1998
Net sales and operating revenues ........................... $12,791,468 $12,959,028 $12,614,390 $10,810,468 $8,870,797
Earnings from continuing operations .................... $ 218,795 $ 160,802 $ 327,830 $ 211,470 $ 124,947
Loss from discontinued operations ........................ $–$ – $ (130,240) $ (68,546) $ (20,636)
Net earnings.......................................................... $ 218,795 $ 160,802 $ 197,590 $ 142,924 $ 104,311
Net earnings (loss) per share attributed to:
Circuit City Group:
Basic:
Continuing operations............................ $ 0.93 $ 0.73 $ 1.63 $ 1.09 $ 0.68
Discontinued operations......................... $–$ – $ (0.65) $ (0.34) $ (0.11)
Net earnings ........................................... $ 0.93 $ 0.73 $ 0.98 $ 0.75 $ 0.57
Diluted:
Continuing operations............................ $ 0.92 $ 0.73 $ 1.60 $ 1.08 $ 0.67
Discontinued operations......................... $–$ – $ (0.64) $ (0.34) $ (0.10)
Net earnings ........................................... $ 0.92 $ 0.73 $ 0.96 $ 0.74 $ 0.57
CarMax Group:
Basic ............................................................ $ 0.87 $ 0.45 $ 0.01 $ (0.24) $ (0.35)
Diluted........................................................ $ 0.82 $ 0.43 $ 0.01 $ (0.24) $ (0.35)
Total assets ............................................................ $ 4,539,386 $ 3,871,333 $ 3,955,348 $ 3,445,266 $3,231,701
Long-term debt, excluding current installments .... $ 14,064 $ 116,137 $ 249,241 $ 426,585 $ 424,292
Deferred revenue and other liabilities .................... $ 149,269 $ 92,165 $ 130,020 $ 112,085 $ 145,107
Cash dividends per share paid on
Circuit City Group Common Stock ................. $ 0.07 $ 0.07 $ 0.07 $ 0.07 $ 0.07
CIRCUIT CITY STORES, INC. MANAGEMENT’S DISCUSSION AND
ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION