Short answer
Carmax Inc (KMX) filed its fiscal 2017 10-K annual report with the SEC on Apr 21, 2017. It reported revenue of $15.9B and net income of $627M.
- Top risk flagged: Consumer-finance compliance exposure: federal and state laws governing vehicle financing, advertising, and sales, plus potential license suspension
FY2017 key financial metrics · XBRL
- Revenue
- $15.9B
- Net income
- $627M
- Gross margin
- 13.8%
- EPS (diluted)
- $3.26
- ROE
- 20.2%
- Operating cash flow
- −$468M
Source: XBRL data from the Carmax Inc (KMX) FY2017 10-K on SEC EDGAR. USD.
Carmax Inc FY2017 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Integrated used-car retailer, wholesale auction operator and captive auto financier, centered on no-haggle pricing and omnichannel shopping
- Nationwide inventory exceeded 65,000 vehicles, with mobile apps and online transfers supporting customer choice
- Retail scale: 671,294 used vehicles sold, plus 391,686 wholesale vehicles at approximately 95% auction sales rate
- CAF financed 44.2% of retail used-vehicle units and serviced approximately 808,000 accounts in a $10.68 billion portfolio
- CFPB supervisory authority over CAF became effective in August 2015, heightening regulatory oversight of auto finance operations
Management Discussion & Analysis
- Revenue $15.88B, up 4.8% YoY, driven by used vehicle revenue of $13.27B, up 6.7%
- Gross profit $2.18B, up 8.2%, with margin 13.8% vs 13.3%; other gross profit best, $369.0M, up 26.3%
- Wholesale gross profit worst, $362.6M, down 6.6%; wholesale margin 17.4% vs 17.7%
- Adjusted operating cash flow $746.6M, capex $418.1M, and share repurchases $564.3M
- Outlook: fiscal 2018 capex approximately $325M; risks include CAF margin compression and higher loan losses
Risk Factors
- Consumer-finance compliance exposure: federal and state laws governing vehicle financing, advertising, and sales, plus potential license suspension
- Economic downturn risk: concentrated sales exposure in the Southeastern U.S., California, Texas, and Washington, D.C./Baltimore
- Inventory sourcing vulnerability: online appraisal tools and dealer competition could shift profitable trade-ins toward third-party auctions
- Digital disruption from online and mobile vehicle platforms, search engines, and classified sites weakening carmax.com traffic and margins
- CAF funding dependence: securitization-market disruption could force temporary curtailment of auto-loan originations
Generated from the filing text; verify against the original. How to read a 10-K
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