BUSINESS WIRE<\/a>)–
\nCarMax, Inc. (NYSE:KMX) today reported results for the fourth quarter and fiscal year ended February 28, 2023.<\/p>\nHighlights<\/span>:<\/b><\/p>\n\n- \nCarMax\u2019s share of the nationwide age 0-10 year old used vehicle market remained at 4.0% in calendar year 2022. Gains in the first half of the year were offset in the back half, reflecting our focus on achieving profitable market share gains.<\/p>\n<\/li>\n<\/ul>\n
\n- \nNet revenues were $5.7 billion, down 25.6% compared with the prior year fourth quarter. For the fiscal year, net revenues decreased 6.9% to $29.7 billion.<\/p>\n<\/li>\n<\/ul>\n
\n- \nRetail used unit sales declined 12.6% in the fourth quarter, and comparable store used unit sales declined 14.1%; wholesale units declined 19.3% in the fourth quarter.<\/p>\n<\/li>\n<\/ul>\n
\n- \nDelivered robust margins in retail and wholesale; gross profit per retail unit of $2,277, an increase of $82 per unit versus last year\u2019s fourth quarter, and gross profit per wholesale unit of $1,187, relatively flat compared to the prior year\u2019s record.<\/p>\n<\/li>\n<\/ul>\n
\n- \nSG&A of $572.8 million decreased 7.7% or $48.1 million from last year\u2019s fourth quarter as a result of active cost management.<\/p>\n<\/li>\n<\/ul>\n
\n- \nBought 262,000 vehicles from consumers and dealers, down 22.5% versus last year\u2019s record fourth quarter and sequentially up 10.1% from this year\u2019s third quarter.<\/p>\n<\/li>\n<\/ul>\n
\n- \nCarMax Auto Finance (CAF) income of $123.9 million, down 36.1% from the prior year fourth quarter due to compression in the net interest margin percentage and a higher provision for loan losses, partially offset by an increase in average managed receivables.<\/p>\n<\/li>\n<\/ul>\n
\n- \nNet earnings per diluted share of $0.44, down from $0.98 a year ago. For the fiscal year, net earnings per diluted share declined 56.5% to $3.03.<\/p>\n<\/li>\n<\/ul>\n
CEO Commentary<\/span>:<\/b><\/p>\n\n\u201cOur deliberate steps to navigate the pressures facing the used car industry are driving sequential improvements in our business, and we will continue to prioritize initiatives to increase efficiencies and create better experiences for our associates and customers across our diversified business model,\u201d said Bill Nash, president and chief executive officer. \u201cDuring fiscal year 2023, we made significant progress to further improve the most customer-centric omni-channel experience in the industry, including enabling online self-progression for all of our retail customers and completing the nationwide rollout of our finance prequalification product. We also enhanced our wholesale shopping experience by launching a modernized, mobile-friendly vehicle detail page. We are confident that we are well positioned to continue leading the used car industry and to accelerate growth when the market improves.\u201d<\/p>\n
Fourth Quarter Business Performance Review<\/span>:<\/b><\/p>\nSales<\/span><\/b>. Combined retail and wholesale used vehicle unit sales were 290,214, a decrease of 15.5% from the prior year\u2019s fourth quarter. Online retail sales(1)<\/sup><\/i> accounted for 14% of retail unit sales, compared with 11% in the fourth quarter of last year. Revenue from online transactions(2)<\/sup><\/i>, including retail and wholesale unit sales, was $1.7 billion, or approximately 30% of net revenues, compared to 31% of net revenues in last year\u2019s fourth quarter.<\/p>\n\nTotal retail used vehicle unit sales declined 12.6% to 169,884 and comparable store used unit sales declined 14.1% from the prior year\u2019s fourth quarter. We believe vehicle affordability challenges continued to impact our fourth quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, climbing interest rates, tightening lending standards and prolonged low consumer confidence. Total retail used vehicle revenues decreased 21.1% compared with the prior year\u2019s fourth quarter, driven by the decrease in retail used units sold as well as the decrease in average retail selling price, which declined approximately $2,700 per unit, or 9.3%.<\/p>\n
\nTotal wholesale vehicle unit sales decreased 19.3% to 120,330 versus the prior year\u2019s fourth quarter, but improved from the 36.7% decline during this year\u2019s third quarter, as our total buys from consumers and dealers improved sequentially. Total wholesale revenues decreased 41.6% compared with the prior year\u2019s fourth quarter due to a decrease in the average wholesale selling price of approximately $3,200 per unit or 27.8% and the decrease in wholesale units sold.<\/p>\n
\nWe bought 262,000 vehicles from consumers and dealers, down 22.5% versus last year\u2019s fourth quarter, but up approximately 10% from this year\u2019s third quarter. 247,000 of these vehicles were bought from consumers, down 23.6% over last year\u2019s results. The remaining 15,000 of these vehicles were bought through dealers, up 4% to last year\u2019s results.<\/p>\n
\nOther sales and revenues declined by 11.4% compared with the fourth quarter of fiscal 2022, representing a decrease of $20.7 million. The decrease was primarily driven by a $20.4 million decline in extended protection plan (EPP) revenues reflecting the combined effects of a year-over-year decline in profit sharing revenues and the decline in retail unit sales, offset by stronger margins.<\/p>\n
Gross Profit<\/span><\/b>. Total gross profit was $611.0 million, down 14.1% versus last year\u2019s fourth quarter. Retail used vehicle gross profit declined 9.3%, reflecting the decline in retail unit sales. Retail gross profit per used unit was $2,277, an increase of $82 per unit over last year\u2019s fourth quarter.<\/p>\n\nWholesale vehicle gross profit decreased 19.5% versus the prior year\u2019s quarter, reflecting lower wholesale unit volume. Gross profit per unit was in line with the prior year and remained strong at $1,187.<\/p>\n
\nOther gross profit declined 24.0% largely reflecting a decline in EPP revenues resulting from the combined effects of a year-over-year decline in profit sharing revenues and the decline in retail unit sales, partially offset by stronger margins.<\/p>\n
SG&A<\/span><\/b>. Compared with the fourth quarter of fiscal 2022, SG&A expenses decreased 7.7% to $572.8 million. This reduction reflects deliberate steps to further reduce costs by aligning marketing spend to sales, managing staff levels through attrition in our stores and CECs, and limiting hiring and contractor utilization in our corporate offices. This decrease was also supported by a lower corporate bonus accrual as well as costs incurred in last year\u2019s fourth quarter associated with a significant ramp in staffing. Partially offsetting these items was an increase in stock-based compensation expense related to changes in the company\u2019s share price. Additionally, total SG&A expenses included increases in investments to advance our technology platforms and strategic initiatives, primarily as a result of decisions made in prior quarters, as well as growth related costs. SG&A as a percent of gross profit was 93.8%, versus 87.3% in the prior year\u2019s fourth quarter, which was primarily driven by the 14.1% decrease in gross profit dollars.<\/p>\n\nIn fiscal year 2024, we expect to require low-single-digit gross profit growth to lever SG&A, well below the levels that we indicated during the investment period of our omni transformation.<\/p>\n
CarMax Auto Finance<\/span><\/b>.(3)<\/sup><\/i><\/b> CAF income decreased 36.1% to $123.9 million, driven by the decline in CAF\u2019s net interest margin percentage and a $43.6 million year-over-year increase in the provision for loan losses, which outweighed the growth in CAF\u2019s average managed receivables. This quarter\u2019s provision was $98.0 million compared to $54.4 million last year.<\/p>\n\nAs of February 28, 2023, the allowance for loan losses was 3.02% of ending managed receivables, up from 2.95% as of November 30, 2022. The increase in the allowance percentage primarily reflected the effect of unfavorable performance within CAF\u2019s portfolio as well as the uncertain macroeconomic environment, along with the continued expansion of Tier 2 and Tier 3 originations within CAF\u2019s portfolio. In reaction to the current environment, CAF has adjusted its underwriting standards, including towards the end of the fourth quarter, reducing its targeted percentage of Tier 3 volume from 10% to 5%.<\/p>\n
\nCAF\u2019s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.3% of average managed receivables, down from 7.3% in the prior year\u2019s fourth quarter as increases in our customer rates were offset by the rising cost of funds. After the effect of 3-day payoffs, CAF financed 44.7% of units sold in the current quarter, relatively flat from 44.4% in the third quarter and up from 41.0% in the prior year\u2019s fourth quarter. CAF\u2019s weighted average contract rate increased to 10.9% in the quarter up from 9.8% in this year\u2019s third quarter and 8.2% in the fourth quarter last year. We expect that these significant pricing moves, along with more gradual movements in our cost of funds, should allow our total interest margin to level off in fiscal year 2024.<\/p>\n
Share Repurchase Activity<\/span><\/b>. During the fourth quarter of fiscal 2023, we did not repurchase any shares of common stock pursuant to our share repurchase program. As of February 28, 2023, we had $2.45 billion remaining available for repurchase under the outstanding authorization. We remain committed to returning capital back to shareholders over time and may resume share repurchases in the future at any time depending upon market conditions and our capital needs, among other factors.<\/p>\nStore Openings<\/span><\/b>. During the fourth quarter of fiscal 2023, we opened five new retail locations in Chicago, Illinois, Asheville, North Carolina, Indianapolis, Indiana, College Station, Texas and Amarillo, Texas. We had a total of 240 used car stores as of February 28, 2023.<\/p>\nFiscal 2024 Capital Spending Plan.<\/span><\/b> For fiscal 2024, we are planning new store growth of five locations, including two more stores in the New York City metro market, as well as our first offsite production location in the Atlanta metro market. We expect capital expenditures of approximately $450 million in fiscal year 2024 largely reflecting spending to support our future long-term growth in offsite-production and auction facilities, as well as our new stores.<\/p>\nLong-Term Targets.<\/span><\/b> We affirm our long-term financial targets that we updated in April 2022: (i) selling between 2 million and 2.4 million vehicles through our combined retail and wholesale channels by fiscal 2026 (ii) generating between $33 billion and $45 billion in revenue by fiscal 2026 and (iii) growing our nationwide share of the age 0-10 used vehicle market to more than 5% by the end of calendar 2025.<\/p>\n\n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\n | \n\n An online retail unit sale is defined as a sale where the customer completes all four of these major transactional activities remotely: reserving the vehicle; financing the vehicle, if needed; trading-in or opting out of a trade in; and creating a remote sales order.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (2)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Revenue from online transactions is defined as revenue from retail sales that qualify for an online retail sale, as well as any EPP and third-party finance contribution, wholesale sales where the winning bid was an online bid, and all revenue earned by Edmunds.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (3)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Supplemental Financial Information<\/span><\/b><\/p>\n\nAmounts and percentage calculations may not total due to rounding.<\/p>\n Sales Components<\/span><\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended February 28<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Years Ended February 28<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (In millions)<\/i><\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicle sales<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n4,531.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n5,739.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(21.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n23,034.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n24,437.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(5.7<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicle sales<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,030.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,765.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(41.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n5,989.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6,763.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(11.4<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther sales and revenues:<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nExtended protection plan revenues<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n104.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n124.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(16.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n422.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n478.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(11.7<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nThird-party finance income\/(fees), net<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(0.1<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(105.7<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n7.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n351.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdvertising & subscription revenues (1)<\/sup><\/i><\/p>\n<\/td>\n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n31.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n33.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(7.7<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n133.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n101.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n30.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n25.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n21.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n20.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n98.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n117.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(16.5<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal other sales and revenues<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n160.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n181.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(11.4<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n660.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n699.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(5.5<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal net sales and operating revenues<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n5,722.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n7,686.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(25.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n29,684.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n31,900.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(6.9<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Excludes intersegment revenues that have been eliminated in consolidation.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Unit Sales<\/span><\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended February 28<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Years Ended February 28<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicles<\/p>\n<\/td>\n | \n \n169,884<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n194,318<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(12.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n807,823<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n924,338<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(12.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicles<\/p>\n<\/td>\n | \n \n120,330<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n149,095<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(19.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n585,071<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n706,212<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(17.2<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Average Selling Prices<\/span><\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended February 28<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Years Ended February 28<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicles<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n26,598<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n29,312<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(9.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n28,251<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n26,207<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n7.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicles<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n8,297<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n11,495<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(27.8<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n9,872<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n$<\/p>\n<\/td>\n | \n \n9,238<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Vehicle Sales Changes<\/span><\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended February 28<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Years Ended February 28<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicle units<\/p>\n<\/td>\n | \n \n(12.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n(5.2<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(12.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n22.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUsed vehicle revenues<\/p>\n<\/td>\n | \n \n(21.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n32.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(5.7<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n55.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicle units<\/p>\n<\/td>\n | \n \n(19.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n43.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(17.2<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n65.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicle revenues<\/p>\n<\/td>\n | \n \n(41.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n160.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(11.4<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n153.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Comparable Store Used Vehicle Sales Changes<\/span>(1)<\/sup><\/i><\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended February 28<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Years Ended February 28<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicle units<\/p>\n<\/td>\n | \n \n(14.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n(6.5<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(14.3<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n21.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUsed vehicle revenues<\/p>\n<\/td>\n | \n \n(22.0<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n30.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(7.6<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n | \n \n54.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs)<\/span> (1)<\/sup><\/i><\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended February 28<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Years Ended February 28<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nCAF (2)<\/sup><\/i><\/p>\n<\/td>\n| \n \n47.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n44.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n45.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n46.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTier 2 (3)<\/sup><\/i><\/p>\n<\/td>\n| \n \n19.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n23.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n22.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n22.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTier 3 (4)<\/sup><\/i><\/p>\n<\/td>\n| \n \n6.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n7.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther (5)<\/sup><\/i><\/p>\n<\/td>\n| \n \n26.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n25.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n26.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n23.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal<\/p>\n<\/td>\n | \n \n100.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n100.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n100.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n100.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Calculated as used vehicle units financed for respective channel as a percentage of total used units sold.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (2)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Includes CAF’s Tier 2 and Tier 3 loan originations, which represent approximately 2% of total used units sold.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (3)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Third-party finance providers who generally pay us a fee or to whom no fee is paid.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (4)<\/sup><\/i><\/p>\n<\/td>\n | \n\n Third-party finance providers to whom we pay a fee.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (5)<\/sup><\/i><\/p>\n<\/td>\n | \n\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |