CarMax 2006 Annual Report Download - page 2

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Percent Change Fiscal Years Ended February 28 or 29
’05 to ’06 2006 2005 2004 2003* 2002*
Operating Results
Net sales and operating revenues 19% $6,260.0 $5,260.3 $4,597.7 $3,969.9 $3,533.8
Net earnings 31% $ 148.1 $ 112.9 $ 116.5 $ 94.8 $ 90.8
Separation costs* nm $— $ — $ — $ 7.8 $ 0.4
Net earnings excluding separation costs 31% $ 148.1 $ 112.9 $ 116.5 $ 102.6 $ 91.2
Per Share Data
Diluted earnings 30% $ 1.39 $ 1.07 $ 1.10 $ 0.91 $ 0.87
Separation costs* nm $— $ — $ — $ 0.07 $ 0.01
Diluted earnings excluding separation costs 30% $ 1.39 $ 1.07 $ 1.10 $ 0.98 $ 0.88
Other Information
Cash provided by operating activities 167% $ 122.3 $ 45.7 $ 147.0 $ 60.5 $ 42.6
Used car superstores, at year-end 16% 67 58 49 40 35
* Results for fiscal 2003 and fiscal 2002 include costs related to the October 2002 separation of CarMax from Circuit City Stores, Inc. nm = not meaningful
(Dollars in millions except per share data)
Financial Highlights
2
SKILLED,
DEDICATED
PEOPLE
■Training and
Development
■Above & Beyond
Award Program
See page 6
4
PROPRIETARY
PROCESSES AND
SYSTEMS
■Information Systems
■Purchasing
and Inventory
Management
■Reconditioning
■Finance Originations
See page 10
5
STRONG
RESULTS
■Revenues
■Earnings
■Return on
Invested Capital
■Return on
Shareholders’ Equity
See page 13
6
SOLID GROWTH
OPPORTUNITY
■Growth Plan
■Defensible Competitive
Advantage
See page 14
1
COMPELLING
MARKET
■Huge
■Stable
■Non-Commodity
■Fragmented
Competition
■Consumer Need
See page 4
3
UNIQUE
CONSUMER
OFFER
■Low, No-Haggle
Prices
■Broad Selection
■Great Quality
■Customer-Friendly
Service
■carmax.com®
See page 8
The CarMax Advantage®
Cover photo: CarMax’s used car satellite superstore in Miami Lakes, Florida, opened in September 2005.