CarMax 2005 Annual Report Download - page 46

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44
CARMAX 2005
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
(In thousands except First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year
per share data) 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
Net sales and
operating revenues $1,324,990 $1,172,835 $1,323,507 $1,236,457 $1,215,711 $1,071,534 $1,396,054 $1,116,865 $5,260,262 $4,597,691
Gross profit $ 167,230 $ 147,771 $ 163,200 $ 163,105 $ 145,446 $ 126,242 $ 174,320 $ 133,770 $ 650,196 $ 570,888
CarMax Auto
Finance income $ 21,816 $ 25,748 $ 20,744 $ 22,677 $ 20,439 $ 17,649 $ 19,657 $ 18,889 $ 82,656 $ 84,963
Selling, general, and
administrative
expenses $ 130,688 $ 115,553 $ 134,726 $ 120,714 $ 137,170 $ 114,282 $ 143,993 $ 117,825 $ 546,577 $ 468,374
Gain (loss) on
franchise dispositions $—$—$ (11) $ (460) $ 692 $ 1,207 $ (48) $ 1,580 $ 633 $ 2,327
Net earnings $ 35,330 $ 35,260 $ 29,859 $ 39,610 $ 18,045 $ 19,053 $ 29,694 $ 22,526 $ 112,928 $ 116,450
Net earnings per share:
Basic $ 0.34 $ 0.34 $ 0.29 $ 0.38 $ 0.17 $ 0.18 $ 0.28 $ 0.22 $ 1.09 $ 1.13
Diluted $ 0.33 $ 0.34 $ 0.28 $ 0.37 $ 0.17 $ 0.18 $ 0.28 $ 0.21 $ 1.07 $ 1.10
17
Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Accordingly, even
effective internal control over financial reporting can provide only reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework
and criteria established in Internal Control—Integrated Framework, issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on this evaluation, our management has concluded that our internal control over financial reporting
was effective as of February 28, 2005.
KPMG LLP, the company’s independent registered public accounting firm, has issued a report on our management’s assessment of
our internal control over financial reporting. This report is included herein.
AUSTIN LIGON
PRESIDENT AND CHIEF EXECUTIVE OFFICER
KEITH D. BROWNING
EXECUTIVE VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING