CarMax 2002 Annual Report Download - page 79

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CIRCUIT CITY GROUP
77 CIRCUIT CITY STORES, INC. ANNUAL REPORT 2002
16. QUARTERLY FINANCIAL DATA (UNAUDITED)
First Quarter Second Quarter Third Quarter Fourth Quarter Year
(Amounts in thousands) 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Net sales and operating revenues ................ $1,881,654 $2,449,110 $2,036,552 $2,506,220 $2,279,908 $2,325,576 $3,391,689 $3,177,131 $9,589,803 $10,458,037
Gross profit................................................. $ 462,393 $ 597,800 $ 496,544 $ 582,916 $ 551,151 $ 510,449 $ 817,884 $ 774,398 $2,327,972 $ 2,465,563
Earnings (loss) before income attributed to
the reserved CarMax Group shares....... $ (9,605) $ 46,714 $ (12,541) $ 43,196 $ 9,245 $ (70,055) $ 140,894 $ 95,383 $ 127,993 $ 115,238
Net earnings (loss) ...................................... $ 10,135 $ 57,123 $ 6,822 $ 55,341 $ 21,134 $ (64,407) $ 152,708 $ 101,190 $ 190,799 $ 149,247
The Board of Directors and Stockholders of Circuit City Stores, Inc.:
We have audited the accompanying balance sheets of the
Circuit City Group (as defined in Note 1) as of February 28,
2002 and 2001, and the related statements of earnings, group
equity and cash flows for each of the fiscal years in the three-
year period ended February 28, 2002. These financial state-
ments are the responsibility of Circuit City Stores, Inc.’s
management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with auditing stan-
dards 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 material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial state-
ment presentation. We believe that our audits provide a reason-
able basis for our opinion.
As more fully discussed in Note 1, the financial statements of
the Circuit City Group should be read in conjunction with the
consolidated financial statements of Circuit City Stores, Inc. and
subsidiaries and the financial statements of the CarMax Group.
The Circuit City Group has accounted for its interest in the
CarMax Group in a manner similar to the equity method of
accounting. Accounting principles generally accepted in the
United States of America require that the CarMax Group be
consolidated with the Circuit City Group.
In our opinion, except for the effects of not consolidating
the Circuit City Group and the CarMax Group as discussed in
the preceding paragraph, the financial statements referred to
above present fairly, in all material respects, the financial posi-
tion of the Circuit City Group as of February 28, 2002 and
2001, and the results of its operations and its cash flows for
each of the fiscal years in the three-year period ended February 28,
2002, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Richmond, Virginia
April 2, 2002
INDEPENDENT AUDITORS’ REPORT