BUSINESS WIRE<\/a>)–
\nCarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2023.\n<\/p>\nHighlights<\/span>:<\/b><\/p>\n\n- \nNet revenues were $7.7 billion, down 17.4% compared with the prior year first quarter.\n<\/li>\n<\/ul>\n
\n- \nRetail used unit sales declined 9.6%, and comparable store used unit sales declined 11.4%, each from the prior year\u2019s first quarter; wholesale units declined 13.6% from the prior year\u2019s first quarter.\n<\/li>\n<\/ul>\n
\n- \nDelivered strong margins in retail and wholesale; gross profit per retail used unit of $2,361 and gross profit per wholesale unit of $1,042, both in line with the prior year\u2019s first quarter.\n<\/li>\n<\/ul>\n
\n- \nSG&A of $559.8 million decreased 14.8% or $96.9 million from last year\u2019s first quarter, driven by the receipt of proceeds related to a favorable legal settlement as well as continued active cost management; excluding the effects of the $59.3 million legal settlement, SG&A decreased 5.7% or $37.6 million.\n<\/li>\n<\/ul>\n
\n- \nBought 343,000 vehicles from consumers and dealers, down 5.2% versus last year\u2019s first quarter, and sequentially up 31.1% from last year\u2019s fourth quarter.\n<\/li>\n<\/ul>\n
\n- \nCarMax Auto Finance (CAF) income of $137.4 million, down 32.8% from the prior year first 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.\n<\/li>\n<\/ul>\n
\n- \nNet earnings per diluted share of $1.44, down from $1.56 a year ago; the current year\u2019s quarter included a $0.28 benefit in connection with a legal settlement.\n<\/li>\n<\/ul>\n
CEO Commentary<\/span>:<\/b><\/p>\n\n\u201cOur deliberate actions are driving improved trends in the business, despite the challenging macro environment. Our unit performance in used, wholesale and consumer and dealer buys all improved sequentially from the year-over-year trends in the second half of fiscal year 2023. We also continued to deliver strong retail and wholesale gross profit per unit along with SG&A reductions,\u201d said Bill Nash, president and chief executive officer. \u201cWe are prioritizing projects that drive operating efficiencies and create better experiences for our associates and customers. We believe these steps will enable us to come out of this cycle leaner and more effective, while also positioning us for future growth.\u201d\n<\/p>\n
First Quarter Business Performance Review<\/span>:<\/b><\/p>\nSales<\/span><\/b>. Combined retail and wholesale used vehicle unit sales were 378,972, a decrease of 11.3% from the prior year\u2019s first quarter. Online retail sales(1)<\/sup><\/i> accounted for 14% of retail unit sales, compared with 11% in the first quarter of last year. Revenue from online transactions(2)<\/sup><\/i>, including retail and wholesale unit sales, was $2.4 billion, or approximately 31% of net revenues, consistent with last year\u2019s first quarter.\n<\/p>\n\nTotal retail used vehicle unit sales declined 9.6% to 217,924 compared to the prior year\u2019s first quarter. Comparable store used unit sales declined 11.4% from the prior year\u2019s first quarter, an improvement from the 22.4% and 14.1% year-over-year declines during last year\u2019s third and fourth quarters. We believe vehicle affordability challenges continued to impact our first quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightening lending standards and prolonged low consumer confidence. Total retail used vehicle revenues decreased 14.4% compared with the prior year\u2019s first quarter, driven by the decrease in retail used units sold as well as a decrease in average retail selling price, which declined approximately $1,600 per unit, or 5.5%.\n<\/p>\n
\nTotal wholesale vehicle unit sales decreased 13.6% to 161,048 versus the prior year\u2019s first quarter, an improvement from the 36.7% and 19.3% year-over-year declines during last year\u2019s third and fourth quarters, as our total buys from consumers and dealers improved sequentially. Total wholesale revenues decreased 28.5% compared with the prior year\u2019s first quarter due to a decrease in the average wholesale selling price of approximately $2,000 per unit or 17.9% and the decrease in wholesale units sold.\n<\/p>\n
\nWe bought 343,000 vehicles from consumers and dealers, down 5.2% versus last year\u2019s first quarter, an improvement from the 39.8% and 22.5% year-over-year declines during last year\u2019s third and fourth quarters. 323,000 of these vehicles were bought from consumers, down 6.5% over last year\u2019s results. The remaining 20,000 of these vehicles were bought through dealers, up 20.1% to last year\u2019s results.\n<\/p>\n
\nOther sales and revenues declined by 5.2% compared with the first quarter of fiscal 2023, representing a decrease of $9.4 million. The decrease was primarily driven by a $5.3 million decline in extended protection plan (EPP) revenues reflecting the effect of the decline in retail unit sales, partially offset by stronger margins. Third-party finance income also declined $3.1 million as lower Tier 2 volume, for which we generally receive a fee, was partially offset by a reduction in Tier 3 volume, for which we pay a fee.\n<\/p>\n
Gross Profit<\/span><\/b>. Total gross profit was $817.4 million, down 6.6% versus last year\u2019s first quarter. Retail used vehicle gross profit declined 8.7%, reflecting the decline in retail unit sales. Retail gross profit per used unit was $2,361, in line with last year\u2019s first quarter.\n<\/p>\n\nWholesale vehicle gross profit decreased 12.4% versus the prior year\u2019s quarter, reflecting lower wholesale unit volume. Gross profit per unit was consistent with the prior year\u2019s first quarter at $1,042.\n<\/p>\n
\nOther gross profit increased 12.2% largely reflecting a $26 million year-over-year improvement in service gross profit driven by the efficiency and cost coverage measures that we have put in place. Partially offsetting the service improvement was a decline in EPP profit and third-party finance income, as discussed above.\n<\/p>\n
SG&A<\/span><\/b>. Compared with the first quarter of fiscal 2023, SG&A expenses decreased 14.8% to $559.8 million. The current quarter SG&A included a benefit of $59.3 million, representing our receipt of settlement proceeds in a class action lawsuit related to the economic loss associated with vehicles containing Takata airbags. Excluding this item, SG&A expenses declined 5.7% or $37.6 million. This reduction reflects the continuation of our cost and efficiency efforts related to staffing and marketing. The change in SG&A was also positively impacted by favorability related to non-CAF uncollectible receivables. Partially offsetting these items was an increase in stock-based compensation expense related to changes in the company\u2019s share price. SG&A as a percent of gross profit decreased to 68.5% in the first quarter compared to 75.0% in the prior year\u2019s first quarter. Excluding the legal settlement, SG&A as a percent of gross profit was 75.7%, relatively flat to the prior year\u2019s first quarter.\n<\/p>\nCarMax Auto Finance<\/span><\/b>.(3)<\/sup><\/i><\/b> CAF income decreased 32.8% to $137.4 million, driven by the decline in CAF\u2019s net interest margin percentage and a $23.1 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 $80.9 million compared to $57.8 million in the prior year\u2019s first quarter.\n<\/p>\n\nAs of May 31, 2023, the allowance for loan losses was 3.11% of ending managed receivables, up from 3.02% as of February 28, 2023. The increase in the allowance percentage primarily reflected the effect of unfavorable performance within CAF\u2019s portfolio as well as the uncertain macroeconomic environment. CAF has continued to tighten its underwriting standards in response to the current environment.\n<\/p>\n
\nCAF\u2019s total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.1% of average managed receivables, down from the 10-year peak of 7.5% in the prior year\u2019s first quarter, as increases in our customer rates were offset by the rising cost of funds. Year-over-year performance was also negatively impacted by the mark-to-market effects of our derivative instruments not designated as hedges for accounting purposes. After the effect of 3-day payoffs, CAF financed 42.7% of units sold in the current quarter, up from 39.3% in the prior year\u2019s first quarter. CAF\u2019s weighted average contract rate increased to 11.1% in the quarter up from 10.9% in last year\u2019s fourth quarter and 9.0% in the first quarter last year.\n<\/p>\n
Share Repurchase Activity<\/span><\/b>. During the first quarter of fiscal 2024, we did not repurchase any shares of common stock pursuant to our share repurchase program. As of May 31, 2023, we had $2.45 billion remaining available for repurchase under the outstanding authorization. We remain committed to returning capital 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.\n<\/p>\nStore Openings<\/span><\/b>. During the first quarter of fiscal 2024, we opened one new retail location in Winchester, Virginia. In fiscal year 2024, we plan to open a total of five new stores across the country and our first offsite production location in the Atlanta metro market.\n<\/p>\n\n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\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 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 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.\n<\/p>\n Sales Components<\/span><\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (In millions)<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicle sales\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n6,001.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n7,014.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(14.4\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicle sales\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,514.4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n2,116.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(28.5\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther sales and revenues:\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nExtended protection plan revenues\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n111.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n116.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4.6\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nThird-party finance income, net\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n3.4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(90.4\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdvertising & subscription revenues (1)<\/sup><\/i><\/p>\n<\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n31.4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n34.4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(8.8\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n28.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n26.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n7.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal other sales and revenues\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n171.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n180.6\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(5.2\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal net sales and operating revenues\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n7,687.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n9,311.6\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(17.4\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\n| \n Excludes intersegment revenues that have been eliminated in consolidation.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Unit Sales<\/span><\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicles\n<\/p>\n<\/td>\n | \n \n217,924\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n240,950\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(9.6\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicles\n<\/p>\n<\/td>\n | \n \n161,048\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n186,307\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(13.6\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Average Selling Prices<\/span><\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nUsed vehicles\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n27,258\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n28,844\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(5.5\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicles\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n9,024\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n10,996\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(17.9\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Vehicle Sales Changes<\/span><\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/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\n<\/p>\n<\/td>\n | \n \n(9.6\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n | \n \n(11.0\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUsed vehicle revenues\n<\/p>\n<\/td>\n | \n \n(14.4\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n | \n \n13.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicle units\n<\/p>\n<\/td>\n | \n \n(13.6\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n | \n \n2.7\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWholesale vehicle revenues\n<\/p>\n<\/td>\n | \n \n(28.5\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n | \n \n54.0\n<\/p>\n<\/td>\n | \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\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/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\n<\/p>\n<\/td>\n | \n \n(11.4\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n | \n \n(12.7\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUsed vehicle revenues\n<\/p>\n<\/td>\n | \n \n(16.2\n<\/p>\n<\/td>\n | \n \n)%\n<\/p>\n<\/td>\n | \n \n11.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\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\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nCAF (2)<\/sup><\/i><\/p>\n<\/td>\n| \n \n45.5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n43.3\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTier 2 (3)<\/sup><\/i><\/p>\n<\/td>\n| \n \n20.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n25.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTier 3 (4)<\/sup><\/i><\/p>\n<\/td>\n| \n \n6.7\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n7.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther (5)<\/sup><\/i><\/p>\n<\/td>\n| \n \n27.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n24.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal\n<\/p>\n<\/td>\n | \n \n100.0\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n100.0\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/i><\/p>\n<\/td>\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 Includes CAF’s Tier 2 and Tier 3 loan originations, which represent less than 2% of total used units sold.<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n (3)<\/sup><\/i><\/p>\n<\/td>\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 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 Represents customers arranging their own financing and customers that do not require financing.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Selected Operating Ratios<\/span><\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended May 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |