CarMax 2002 Annual Report Download - page 37

35 CIRCUIT CITY STORES, INC. ANNUAL REPORT 2002
consumer credit delinquency and default rates, interest rates,
inflation, personal discretionary spending levels and consumer
sentiment about the economy in general.
•The presence or absence of, or consumer acceptance of,
new products or product features in the merchandise categories
we sell and changes in our actual merchandise sales mix.
•Significant changes in retail prices for products sold by
either of our businesses.
•Lack of availability or access to sources of inventory for
either of our businesses.
•Inability on the part of either of our businesses to liquidate
excess inventory should excess inventory develop.
•Unanticipated adverse results from remodeling or relocat-
ing Circuit City Superstores.
•The ability to attract and retain an effective management
team in a dynamic environment or changes in the cost or avail-
ability of a suitable work force to manage and support our
service-driven operating strategies.
•Changes in the availability of securitization financing for
credit card and automobile installment loan receivables and the
availability or cost of capital expenditure and working capital
financing, including the availability of long-term financing to
support development of our businesses.
•Changes in production or distribution costs or cost of
materials for our advertising.
•Availability of appropriate real estate locations for expansion.
•The imposition of new restrictions or regulations regarding
the sale of products and/or services we sell, changes in tax rules
and regulations applicable to us or our competitors, or any failure
to comply with such laws or any adverse change in such laws.
•Adverse results in significant litigation matters.
The board of directors has authorized management to initiate a
process that would separate the CarMax business from the Circuit
City business through a tax-free transaction in which CarMax,
Inc. would become an independent, separately traded public com-
pany. CarMax, Inc. has filed a registration statement related to this
transaction with the SEC. The cautionary statements listed above
should be read in conjunction with the risk factors in the registra-
tion statement and in the Company’s other SEC filings.
We believe our forward-looking statements are reasonable;
however, undue reliance should not be placed on any forward-
looking statements, which are based on current expectations.
CIRCUIT CITY STORES, INC.
COMMON STOCK
The common stock of Circuit City Stores, Inc. includes two series: Circuit City Stores, Inc. – Circuit City Group Common Stock
and Circuit City Stores, Inc. – CarMax Group Common Stock. Both Group stocks are traded on the New York Stock Exchange.
The quarterly dividend data shown below applies to the Circuit City Group Common Stock for the applicable periods. No divi-
dend data is shown for the CarMax Group Common Stock since it pays no dividends at this time.
Circuit City Group CarMax Group
Market Price of Common Stock Dividends Market Price of Common Stock
Fiscal 2002 2001 2002 2001 2002 2001
Quarter HIGH LOW HIGH LOW HIGH LOW HIGH LOW
1st...................................... $16.85 $10.34 $65.19 $37.25 $.0175 $.0175 $15.49 $ 4.70 $4.25 $1.56
2nd .................................... $20.25 $14.50 $56.63 $21.00 $.0175 $.0175 $20.50 $11.50 $4.88 $2.63
3rd..................................... $17.84 $ 9.55 $28.25 $11.56 $.0175 $.0175 $21.00 $ 9.20 $5.38 $3.38
4th..................................... $31.40 $16.08 $19.90 $ 8.69 $.0175 $.0175 $29.02 $19.35 $5.50 $3.69
Total .................................. $.0700 $.0700