CarMax 2007 Annual Report Download - page 3

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07 06 05 04 03
07 06 05 04 03
07 06 05 04 03
1
4
9
8
6
$5.26
$6.26
$7.47
$3.97
$4.60
$198.6
$90.4
$109.6
$101.3
$134.2
07 06 05 04 03
253,168
289,888
337,021
190,135
224,099
ways to improve our processes and grow our market share,
which we believe is the best way to maintain our competitive
advantage. We utilized this kind of innovative analysis in
the development of our small
format stores and car buying
centers, concepts that we are
currently testing.
Most fundamental to our
past success, however, and
key to our future growth, are
our associates. Our associate
selection process, ongoing
development and training pro-
grams, and focus on associate
engagement benefit both the
company and our associates.
Engaged associates find personal fulfillment while also provid-
ing the innovation that supports the company’s goals. For the
third year in a row, Fortune named CarMax to their “100 Best
Companies to Work For” list, a tribute in which we all take
great pride. Of the many aspects of CarMax that are unique
and that make us successful, our culture is perhaps the most
difficult for others to duplicate.
Before closing, let me express our appreciation and best
wishes to Rick Sharp, our chairman, who will retire in June.
I also want to thank Austin Ligon, who retired as CEO last
year, for all his contributions to CarMax. Rick and Austin were
instrumental in the original concept and creation of CarMax.
At the same time, let me welcome our most recent addition
to CarMax’s Board of Directors. Ed Grubb, retired executive
vice president and chief financial officer of Transamerica
Corporation, adds extensive retail, operational, and financial
expertise to our board.
I’d like to also take this opportunity to thank all of our
13,700 associates for their hard work and dedication. I am
continually impressed by the consistent commitment to team-
work and customer service evidenced in every CarMax store,
from our very first in Richmond, Virginia, to our most recent
store, opened in Milwaukee, Wisconsin. And finally, I would
like to thank our other stakeholders — vendors, suppliers,
partners, and shareholders — for their role in supporting
CarMax and our ongoing quest for excellence.
Sincerely,
Tom Folliard
President and Chief Executive Officer
April 25, 2007
REVENUES
(In billions)
NET EARNINGS
(In millions)
COMPARABLE STORE
USED UNIT SALES
(Percentage change)
USED
VEHICLES
SOLD
CARMAX 2007
2
CarMax, Inc. is the nation’s largest retailer of used cars. Our unique consumer offer
is structured around four core equities: low, no-haggle prices; a broad selection;
high-quality vehicles; and customer-friendly service. During fiscal 2007, we retailed
337,021 used vehicles and sold 208,959 wholesale vehicles at our in-store auctions.
As of February 28, 2007, we operated 77 used car superstores in 36 markets.
07 06 05 04 03
9.9%
10.6%
12.7%
11.6%
11.8%
RETURN ON INVESTED
CAPITAL (Unleveraged)