CarMax 2008 Annual Report Download - page 25

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13
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
We conduct our used vehicle operations in two basic retail formats – production and non-production superstores.
Production superstores are those locations at which vehicle reconditioning is performed, while non-production
superstores do not perform vehicle reconditioning. Production superstores are generally 40,000 to 60,000 square
feet on 10 to 25 acres, but a few (formerly referred to as mega superstores) range from approximately 70,000 to
95,000 square feet on 20 to 35 acres. Non-production superstores are generally 10,000 to 20,000 square feet on 4 to
10 acres.
STORES AS OF FEBRUARY 29, 2008
Used Car Superstores
Production Non-production
Co-Located New
Car Stores (1) Total
Alabama............................................................................................ 1 — — 1
Arizona ............................................................................................. 1 — — 1
California.......................................................................................... 5 6 1 12
Connecticut....................................................................................... 1 1 — 2
Florida............................................................................................... 7 3 — 10
Georgia ............................................................................................. 3 2 — 5
Illinois............................................................................................... 4 2 — 6
Indiana .............................................................................................. 1 1 — 2
Kansas............................................................................................... 2 — — 2
Kentucky........................................................................................... 1 — — 1
Maryland........................................................................................... 2 2 1 5
Mississippi........................................................................................ 1 — — 1
Missouri............................................................................................ — 1 — 1
Nebraska........................................................................................... 1 — — 1
Nevada.............................................................................................. 1 1 — 2
New Mexico ..................................................................................... 1 — — 1
North Carolina .................................................................................. 4 3 — 7
Ohio .................................................................................................. 1 1 — 2
Oklahoma ......................................................................................... 1 — — 1
South Carolina.................................................................................. 2 — — 2
Tennessee ......................................................................................... 3 1 — 4
Texas ................................................................................................ 8 3 — 11
Utah .................................................................................................. 1 — — 1
Virginia............................................................................................. 4 3 — 7
Wisconsin ......................................................................................... 1 2 1 4
Total.................................................................................................. 57 32 3 92
(1) We currently operate six new car franchises. Two franchises are integrated within used car superstores and do not
operate as separate stores. The remaining four franchises are operated from three new car stores that are co-located with
used car superstores.
We have financed the majority of our stores through sale-leaseback transactions. As of February 29, 2008, we
leased 60 of our 92 retail stores and owned the remaining 32 stores. We also own our home office building in
Richmond, Virginia, and land associated with planned future store openings.
Expansion
We believe that we are well positioned to succeed in the highly competitive automotive retail industry. We have
built a strong foundation for future growth based upon our unique knowledge of the used car market, established
presence in key locations and ability to execute our business plan in a market subject to continuous change. We
continue to refine our operating strategies and have grown to be the nation’ s largest retailer of used cars.