Short answer
Carmax Inc (KMX) filed its fiscal 2019 10-K annual report with the SEC on Apr 19, 2019. It reported revenue of $18.2B (+6.2% year over year) and net income of $842M.
- Top risk flagged: Consumer finance regulation: Federal and state laws governing vehicle financing, advertising and privacy expose CarMax to fines, license loss and litigation
FY2019 key financial metrics · XBRL
- Revenue
- $18.2B
- +6.2% YoY
- Net income
- $842M
- +26.8% YoY
- Gross margin
- 13.6%
- +0.0 pp YoY
- EPS (diluted)
- $4.79
- +33.1% YoY
- ROE
- 25.1%
- +5.1 pp YoY
- Operating cash flow
- $163M
- +302.3% YoY
Source: XBRL data from the Carmax Inc (KMX) FY2019 10-K on SEC EDGAR. USD.
Carmax Inc FY2019 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Used-car retail and wholesale auctions paired with proprietary customer financing, no-haggle pricing and digital sales channels
- New omni-channel buying experience launched in Atlanta, targeting majority-customer availability by fiscal 2020
- Retail used-vehicle sales reached 748,961, while comparable-market share declined to 4.4% from 4.5%
- CAF managed $12.51 billion receivables across approximately 966,000 accounts, financing 43.2% of retail used-unit sales
- Workforce totaled 25,946 associates, including 6,241 predominantly commission-based sales associates
Management Discussion & Analysis
- Revenue $18.17B, up 6.1% YoY, with net earnings $842.4M, up 26.8%
- Gross margin 13.7% vs 13.6%, CAF income $438.7M, up 4.2%
- Best segment wholesale: revenue $2.39B, up 9.7%; worst segment used vehicles: revenue $15.17B, up 5.4%
- Operating cash flow $163.0M, capex $304.6M, buybacks $904.7M
- Outlook: fiscal 2020 capex approximately $350M, omni-channel rollout for majority of customers by fiscal 2020 end, risks from vehicle prices and CAF funding costs
Risk Factors
- Consumer finance regulation: Federal and state laws governing vehicle financing, advertising and privacy expose CarMax to fines, license loss and litigation
- Geographic concentration: Sales heavily dependent on the Southeastern U.S., California, Texas and Washington, D.C./Baltimore
- Inventory sourcing: Online appraisal tools and dealer competition could shift profitable trade-ins toward third-party auctions
- Digital disruption: Online platforms and dealer pricing software could erode CarMax’s no-haggle differentiation and retail margins
- Funding dependence: CAF uses securitization to fund the majority of auto loan receivables, exposing originations to ABS-market disruption
Generated from the filing text; verify against the original. How to read a 10-K
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