CarMax Group Reports Record Fourth Quarter And Fiscal Year 2001 Sales and Earnings

Apr 02, 2001, 01:00 ET from CarMax Group

    RICHMOND, Va., April 2 /PRNewswire/ -- In a separate release, Circuit City
 Stores, Inc. today released fourth quarter and fiscal year results for the
 company, including record sales and earnings for the CarMax Group (NYSE:   KMX).
 
     FOURTH QUARTER AND FISCAL YEAR RESULTS
     Sales:  Total sales for the CarMax Group rose 27 percent for the quarter
 ended February 28, 2001, to $640.0 million from $504.2 million in the fourth
 quarter of the prior year.  Comparable store sales rose 23 percent.  For the
 fiscal year ended February 28, 2001, total sales for the CarMax Group rose 24
 percent to $2.50 billion from $2.01 billion in the prior year, and comparable
 store sales rose 17 percent.
 
     Earnings:  Net earnings for the CarMax Group rose to $7.8 million in the
 fourth quarter ended February 28, 2001, from a net loss of $1.7 million in the
 fourth quarter of the prior year.  The fiscal 2001 earnings reflect a write-
 off of goodwill associated with two under performing new-car franchises, which
 reduced net earnings by $5.4 million.  The fiscal 2000 results reflect lease
 termination costs on undeveloped property and a write-down of assets
 associated with excess property for sale, which reduced net earnings by $3.0
 million.  The net earnings attributed to the CarMax Group stock were $2.0
 million in the fourth quarter of fiscal 2001, compared with a net loss of
 $408,000 in the fourth quarter of fiscal 2000.  The remainder of the CarMax
 Group's net earnings are attributed to the Inter-Group Interest held by the
 Circuit City Group and thus to the Circuit City Group shares.  Net earnings
 per CarMax Group share rose to 7 cents from a net loss of 2 cents in the same
 prior year period.
     Net earnings for the CarMax Group rose to $45.6 million in the fiscal year
 ended February 28, 2001, from $1.1 million in the prior fiscal year; net
 earnings attributed to the CarMax Group stock increased to $11.6 million from
 $256,000.  The fiscal 2001 net earnings reflect the $5.4 million reduction
 resulting from the goodwill write-off discussed above.  The fiscal 2000 net
 earnings include the $3.0 million lease termination costs and write-down of
 assets discussed above.  The remainder of the CarMax Group's net earnings are
 attributed to the Inter-Group Interest held by the Circuit City Group and thus
 to the Circuit City Group shares.  Net earnings per CarMax Group share rose to
 43 cents in fiscal year 2001 from 1 cent per share in fiscal year 2000.
 
     CarMax Group Earnings (Loss)
     (Amounts in millions
       except per share data)     Quarter Ended            Fiscal Year Ended
                                February 28 or 29           February 28 or 29
                                 2001       2000          2001          2000
     CarMax Group Net
       Earnings (Loss)        $7.78        $(1.71)      $45.56         $1.12
     Net Earnings (Loss)
       Attributed to the
        Circuit City Group     5.81         (1.30)       34.01          0.86
     Net Earnings (Loss)
       Attributed to the
        CarMax Group           1.97         (0.41)       11.55          0.26
     CarMax Group
       Diluted Weighted
     Average Shares
       Outstanding            27.03         26.18        26.98         25.79
     Net Earnings (Loss)
       per CarMax Group
        Share                 $0.07        $(0.02)       $0.43         $0.01
 
     BUSINESS PERFORMANCE REVIEW
     "CarMax generated strong sales growth throughout the year, including the
 second half when our unique store concept produced strong used-car sales
 growth despite an industry-wide slowdown in new-car sales," said W. Austin
 Ligon, president of CarMax.  "Sales growth remained strong in the fourth
 quarter, even against the anniversary of a significant competitor's exit from
 the used-car superstore business.  We believe the sales performance throughout
 the year reflects our focus over the past two years on sales and profit
 improvement in our existing store base.  During the fourth quarter, we
 benefited from the lack of severe winter weather in most all our markets.
     "The increase in used-car sales as a percent of our total sales mix and
 continued strong inventory management throughout the year, but especially
 during the second half when the model-year transition occurs in the new-car
 segment, contributed to a higher gross profit margin of 13.2 percent of sales
 in fiscal 2001, compared with 11.9 percent of sales in fiscal 2000," said
 Ligon.  "The significantly better expense ratio of 9.8 percent in fiscal 2001
 versus 11.3 percent in fiscal 2000 reflects the leverage achieved from strong
 total and comparable store sales growth; more efficient advertising
 expenditures; overall improvements in store productivity, including those
 achieved through the hub and satellite strategy we adopted in multi-store
 markets; and a favorable contribution from CarMax Auto Finance."  The
 improvements in CarMax's fiscal 2001 expense ratio were partly offset by an
 $8.7 million pretax write-off of goodwill associated with two under performing
 new-car franchises.
     CarMax's operating margin before interest and taxes rose to 3.4 percent in
 fiscal 2001 from 0.6 percent in fiscal 2000.  Excluding the goodwill write-
 off, the operating margin before interest and taxes was 3.8 percent.
 
     CarMax Group Operating Ratios
 
                                  Quarter Ended           Fiscal Year Ended
                               February 28 or 29          February 28 or 29
                              2001          2000           2001        2000
     Net Sales and
       Operating Revenues    100.0%        100.0%       100.0%        100.0%
     Gross Profit Margin      12.8%         12.3%        13.2%         11.9%
     Expense Ratio            10.4%         12.2%         9.8%         11.3%
     Operating Margin Before
       Interest and Taxes      2.4%          0.1%         3.4%          0.6%
 
     For the year, the CarMax business produced pretax earnings of $73.5
 million in fiscal 2001, compared with pretax earnings of $1.8 million in
 fiscal 2000.  The pretax profit margin was 2.9 percent this year, compared
 with 0.1 percent last year.
     "We believe that our fiscal 2001 growth and profitability indicate that
 CarMax has developed a firm foundation for sustained, profitable growth and
 our used-car superstore concept is well positioned to succeed in economic down
 cycles," said Ligon.  "We expect to resume geographic expansion this fiscal
 year with two store openings in single-store markets.  We would expect to open
 another four to six superstores in fiscal 2003 and six to eight superstores
 per year from fiscal 2004 through fiscal 2006, assuming that we continue to
 achieve success with our new-market openings.  We will focus our expansion
 plans on openings in single-store markets, which are the markets where we
 historically have achieved the highest returns, and satellite fill-ins, where
 we can improve the productivity of our existing multi-store markets, for the
 next several years."
     Circuit City will host a conference call for investors today, April 2,
 2001, at 10:00 a.m. Eastern time to discuss this morning's announcement.
 Domestic investors may access the call at 888-790-1720 (access code:
 earnings).  International investors should dial 312-470-0162 (access code:
 earnings). The call will be led by Alan McCollough, president and chief
 executive officer of Circuit City.  A replay of the conference call will be
 available beginning today, April 2, 2001, at approximately 2:00 p.m. Eastern
 time and will run through midnight, April 6, 2001.  Domestic investors may
 access the recording at 888-568-0856 (no access code required) and
 international investors at 402-998-0241 (no access code required).  A replay
 of the call also will be available on the Circuit City Group's investor
 information home page http://investor.circuitcity.com , the CarMax Group's
 investor information home page http://investor.carmax.com or at
 http://www.streetevents.com .
     CarMax is the nation's leading specialty retailer of used cars.  With
 headquarters in Richmond, Va., the company currently operates 40 retail units
 in 37 locations, including 33 used-car superstores.  CarMax operates 21 new-
 car franchises, most of which are integrated or co-located with its used-car
 superstores.  For more information, access the company's Web site at
 http://www.CarMax.com .
     CarMax is a subsidiary of Circuit City Stores, Inc.  Circuit City Stores,
 Inc. has two series of common stock, one of which is the CarMax Group stock,
 which tracks the performance of the CarMax operations, and the other of which
 is the Circuit City Group (NYSE:   CC) stock, which tracks the performance of
 the Circuit City Group operations and the retained interest in the CarMax
 Group.  A portion of the earnings of the CarMax Group is attributed to the
 CarMax Group stock; the balance is attributed to the Circuit City Group stock.
     This release contains forward-looking statements, which are subject to
 risks and uncertainties.  Additional discussion of factors that could cause
 actual results to differ materially from management's projections, forecasts,
 estimates and expectations is contained in the Circuit City Stores, Inc. SEC
 filings.
 
                           CIRCUIT CITY STORES, INC.
                      CONSOLIDATED STATEMENTS OF EARNINGS
                        PERIODS ENDED FEBRUARY 28 OR 29
                  (Amounts in thousands except per share data)
 
                                   Three Months             Twelve Months
                                   2001     2000            2001     2000
 
     NET SALES AND
       OPERATING REVENUES  $3,817,127  $3,980,407  $12,959,028   $12,614,390
     Cost of sales,
       buying and
        warehousing         2,960,660   3,059,770   10,135,380     9,751,833
     Appliance exit
       costs                        -           -       28,326             -
 
     GROSS PROFIT             856,467     920,637    2,795,322     2,862,557
 
     Selling, general
       and administrative
        expenses             685,555      655,883    2,514,912     2,309,593
     Appliance exit costs          -            -        1,670             -
     Interest expense          4,518        7,108       19,383        24,206
 
     EARNINGS FROM
       CONTINUING
        OPERATIONS BEFORE
         INCOME TAXES        166,394      257,646      259,357       528,758
 
     Provision for
       income taxes           63,230       97,905       98,555       200,928
 
     EARNINGS FROM
       CONTINUING
        OPERATIONS           103,164      159,741      160,802       327,830
 
     Discontinued
       operations:
      Loss from
       discontinued
        operations of
         Divx, less
         income tax
         benefit                   -            -            -       (16,215)
      Loss on disposal
       of Divx, less
        income tax benefit         -            -            -      (114,025)
 
     LOSS FROM DISCONTINUED
       OPERATIONS                  -            -            -      (130,240)
 
     NET EARNINGS           $103,164     $159,741     $160,802      $197,590
 
     Net earnings (loss)
       attributed to:
     Circuit City Group
       common stock:
     Continuing operations  $101,190     $160,149     $149,247      $327,574
     Discontinued
       operations                 $-           $-           $-     $(130,240)
     CarMax Group
       common stock           $1,974        $(408)     $11,555          $256
 
     Weighted average
       common shares:
     Circuit City
       Group basic           204,401      201,999      203,774       201,345
     Circuit City
       Group diluted         206,380      204,749      205,830       204,321
 
     CarMax Group basic       25,579       24,611       25,554        23,778
     CarMax Group diluted     27,026       26,181       26,980        25,788
 
     NET EARNINGS (LOSS)
       PER SHARE:
     Circuit City
       Group basic:
     Continuing operations     $0.50        $0.79        $0.73         $1.63
     Discontinued operations      $-           $-           $-        $(0.65)
     Net earnings              $0.50        $0.79        $0.73         $0.98
 
     Circuit City Group
       diluted:
     Continuing operations     $0.49        $0.78        $0.73         $1.60
     Discontinued operations      $-           $-           $-        $(0.64)
     Net earnings              $0.49        $0.78        $0.73         $0.96
 
     CarMax Group basic        $0.08       $(0.02)       $0.45         $0.01
     CarMax Group diluted      $0.07       $(0.02)       $0.43         $0.01
 
                           CIRCUIT CITY STORES, INC.
                          CONSOLIDATED BALANCE SHEETS
                             (Amounts in thousands)
 
                                                        February 28 or 29
                                                       2001           2000
     ASSETS
 
     Current Assets:
     Cash and cash equivalents                       $446,131       $643,933
     Net accounts receivable                          585,761        593,276
     Inventory                                      1,757,664      1,689,209
     Prepaid expenses and other current assets         57,623         16,197
     Total Current Assets                           2,847,179      2,942,615
 
     Property and equipment, net                      988,947        965,181
     Other assets                                      35,207         47,552
 
     TOTAL ASSETS                                  $3,871,333     $3,955,348
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities:
     Current installments of long-term debt          $132,388       $177,344
     Accounts payable                                 902,560        960,131
     Short-term debt                                    1,200          3,005
     Accrued expenses and other
       current liabilities                            162,972        204,561
     Deferred income taxes                             92,479         61,118
     Total Current Liabilities                      1,291,599      1,406,159
 
     Long-term debt, excluding
       current installments                           116,137        249,241
     Deferred revenue and other liabilities            92,165        130,020
     Deferred income taxes                             14,949         27,754
     TOTAL LIABILITIES                              1,514,850      1,813,174
 
     STOCKHOLDERS' EQUITY                           2,356,483      2,142,174
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $3,871,333     $3,955,348
 
 
                                  CARMAX GROUP
                            STATEMENTS OF OPERATIONS
                        PERIODS ENDED February 28 or 29
                  (Amounts in thousands except per share data)
 
                                 Three Months              Twelve Months
                              2001          2000        2001           2000
 
     NET SALES AND
       OPERATING REVENUES  $639,996      $504,236   $2,500,991    $2,014,984
     Cost of sales          557,927       442,375    2,171,232     1,774,619
     GROSS PROFIT            82,069        61,861      329,759       240,365
     Selling, general
       and administrative
        expenses             66,566        61,399      244,167       228,200
     Interest expense         2,960         3,224       12,110        10,362
     EARNINGS (loss)
       BEFORE INCOME TAXES   12,543        (2,762)      73,482         1,803
     Income tax provision
       (benefit)              4,762        (1,050)      27,918           685
     NET EARNINGS (loss)     $7,781       $(1,712)     $45,564        $1,118
 
     Net earnings (loss)
       attributed to:
     Circuit City Group
       common stock          $5,807       $(1,304)     $34,009          $862
     CarMax Group
       common stock          $1,974         $(408)     $11,555          $256
 
     Weighted average
       common shares:
     Basic                   25,579        24,611       25,554        23,778
     Diluted                 27,026        26,181       26,980        25,788
 
     NET EARNINGS (loss)
       PER SHARE:
     Basic                    $0.08        $(0.02)       $0.45         $0.01
     Diluted                  $0.07        $(0.02)       $0.43         $0.01
 
                                  CARMAX GROUP
                                 BALANCE SHEETS
                             (Amounts in thousands)
 
                                                         February 28 or 29
                                                       2001            2000
     ASSETS
     Current Assets:
     Cash and cash equivalents                         $8,802         $9,981
     Net accounts receivable                          134,662        129,253
     Inventory                                        347,137        283,592
     Prepaid expenses and other current assets          2,306          2,844
     Total Current Assets                             492,907        425,670
     Property and equipment, net                      192,158        211,856
     Other assets                                      25,888         37,969
 
     TOTAL ASSETS                                    $710,953       $675,495
 
     LIABILITIES AND GROUP EQUITY
     Current Liabilities:
     Current installments of long-term debt          $108,151        $91,609
     Accounts payable                                  82,483         75,959
     Short-term debt                                      987          1,552
     Accrued expenses and other
       current liabilities                             16,154         19,856
     Deferred income taxes                             18,162          7,147
     Total Current Liabilities                        225,937        196,123
     Long-term debt, excluding
       current installments                            83,057        121,257
     Deferred revenue and other liabilities             6,836          7,249
     Deferred income taxes                              3,620          5,877
     TOTAL LIABILITIES                                319,450        330,506
     GROUP EQUITY                                     391,503        344,989
     TOTAL LIABILITIES AND GROUP EQUITY              $710,953       $675,495
 
 

SOURCE CarMax Group
    RICHMOND, Va., April 2 /PRNewswire/ -- In a separate release, Circuit City
 Stores, Inc. today released fourth quarter and fiscal year results for the
 company, including record sales and earnings for the CarMax Group (NYSE:   KMX).
 
     FOURTH QUARTER AND FISCAL YEAR RESULTS
     Sales:  Total sales for the CarMax Group rose 27 percent for the quarter
 ended February 28, 2001, to $640.0 million from $504.2 million in the fourth
 quarter of the prior year.  Comparable store sales rose 23 percent.  For the
 fiscal year ended February 28, 2001, total sales for the CarMax Group rose 24
 percent to $2.50 billion from $2.01 billion in the prior year, and comparable
 store sales rose 17 percent.
 
     Earnings:  Net earnings for the CarMax Group rose to $7.8 million in the
 fourth quarter ended February 28, 2001, from a net loss of $1.7 million in the
 fourth quarter of the prior year.  The fiscal 2001 earnings reflect a write-
 off of goodwill associated with two under performing new-car franchises, which
 reduced net earnings by $5.4 million.  The fiscal 2000 results reflect lease
 termination costs on undeveloped property and a write-down of assets
 associated with excess property for sale, which reduced net earnings by $3.0
 million.  The net earnings attributed to the CarMax Group stock were $2.0
 million in the fourth quarter of fiscal 2001, compared with a net loss of
 $408,000 in the fourth quarter of fiscal 2000.  The remainder of the CarMax
 Group's net earnings are attributed to the Inter-Group Interest held by the
 Circuit City Group and thus to the Circuit City Group shares.  Net earnings
 per CarMax Group share rose to 7 cents from a net loss of 2 cents in the same
 prior year period.
     Net earnings for the CarMax Group rose to $45.6 million in the fiscal year
 ended February 28, 2001, from $1.1 million in the prior fiscal year; net
 earnings attributed to the CarMax Group stock increased to $11.6 million from
 $256,000.  The fiscal 2001 net earnings reflect the $5.4 million reduction
 resulting from the goodwill write-off discussed above.  The fiscal 2000 net
 earnings include the $3.0 million lease termination costs and write-down of
 assets discussed above.  The remainder of the CarMax Group's net earnings are
 attributed to the Inter-Group Interest held by the Circuit City Group and thus
 to the Circuit City Group shares.  Net earnings per CarMax Group share rose to
 43 cents in fiscal year 2001 from 1 cent per share in fiscal year 2000.
 
     CarMax Group Earnings (Loss)
     (Amounts in millions
       except per share data)     Quarter Ended            Fiscal Year Ended
                                February 28 or 29           February 28 or 29
                                 2001       2000          2001          2000
     CarMax Group Net
       Earnings (Loss)        $7.78        $(1.71)      $45.56         $1.12
     Net Earnings (Loss)
       Attributed to the
        Circuit City Group     5.81         (1.30)       34.01          0.86
     Net Earnings (Loss)
       Attributed to the
        CarMax Group           1.97         (0.41)       11.55          0.26
     CarMax Group
       Diluted Weighted
     Average Shares
       Outstanding            27.03         26.18        26.98         25.79
     Net Earnings (Loss)
       per CarMax Group
        Share                 $0.07        $(0.02)       $0.43         $0.01
 
     BUSINESS PERFORMANCE REVIEW
     "CarMax generated strong sales growth throughout the year, including the
 second half when our unique store concept produced strong used-car sales
 growth despite an industry-wide slowdown in new-car sales," said W. Austin
 Ligon, president of CarMax.  "Sales growth remained strong in the fourth
 quarter, even against the anniversary of a significant competitor's exit from
 the used-car superstore business.  We believe the sales performance throughout
 the year reflects our focus over the past two years on sales and profit
 improvement in our existing store base.  During the fourth quarter, we
 benefited from the lack of severe winter weather in most all our markets.
     "The increase in used-car sales as a percent of our total sales mix and
 continued strong inventory management throughout the year, but especially
 during the second half when the model-year transition occurs in the new-car
 segment, contributed to a higher gross profit margin of 13.2 percent of sales
 in fiscal 2001, compared with 11.9 percent of sales in fiscal 2000," said
 Ligon.  "The significantly better expense ratio of 9.8 percent in fiscal 2001
 versus 11.3 percent in fiscal 2000 reflects the leverage achieved from strong
 total and comparable store sales growth; more efficient advertising
 expenditures; overall improvements in store productivity, including those
 achieved through the hub and satellite strategy we adopted in multi-store
 markets; and a favorable contribution from CarMax Auto Finance."  The
 improvements in CarMax's fiscal 2001 expense ratio were partly offset by an
 $8.7 million pretax write-off of goodwill associated with two under performing
 new-car franchises.
     CarMax's operating margin before interest and taxes rose to 3.4 percent in
 fiscal 2001 from 0.6 percent in fiscal 2000.  Excluding the goodwill write-
 off, the operating margin before interest and taxes was 3.8 percent.
 
     CarMax Group Operating Ratios
 
                                  Quarter Ended           Fiscal Year Ended
                               February 28 or 29          February 28 or 29
                              2001          2000           2001        2000
     Net Sales and
       Operating Revenues    100.0%        100.0%       100.0%        100.0%
     Gross Profit Margin      12.8%         12.3%        13.2%         11.9%
     Expense Ratio            10.4%         12.2%         9.8%         11.3%
     Operating Margin Before
       Interest and Taxes      2.4%          0.1%         3.4%          0.6%
 
     For the year, the CarMax business produced pretax earnings of $73.5
 million in fiscal 2001, compared with pretax earnings of $1.8 million in
 fiscal 2000.  The pretax profit margin was 2.9 percent this year, compared
 with 0.1 percent last year.
     "We believe that our fiscal 2001 growth and profitability indicate that
 CarMax has developed a firm foundation for sustained, profitable growth and
 our used-car superstore concept is well positioned to succeed in economic down
 cycles," said Ligon.  "We expect to resume geographic expansion this fiscal
 year with two store openings in single-store markets.  We would expect to open
 another four to six superstores in fiscal 2003 and six to eight superstores
 per year from fiscal 2004 through fiscal 2006, assuming that we continue to
 achieve success with our new-market openings.  We will focus our expansion
 plans on openings in single-store markets, which are the markets where we
 historically have achieved the highest returns, and satellite fill-ins, where
 we can improve the productivity of our existing multi-store markets, for the
 next several years."
     Circuit City will host a conference call for investors today, April 2,
 2001, at 10:00 a.m. Eastern time to discuss this morning's announcement.
 Domestic investors may access the call at 888-790-1720 (access code:
 earnings).  International investors should dial 312-470-0162 (access code:
 earnings). The call will be led by Alan McCollough, president and chief
 executive officer of Circuit City.  A replay of the conference call will be
 available beginning today, April 2, 2001, at approximately 2:00 p.m. Eastern
 time and will run through midnight, April 6, 2001.  Domestic investors may
 access the recording at 888-568-0856 (no access code required) and
 international investors at 402-998-0241 (no access code required).  A replay
 of the call also will be available on the Circuit City Group's investor
 information home page http://investor.circuitcity.com , the CarMax Group's
 investor information home page http://investor.carmax.com or at
 http://www.streetevents.com .
     CarMax is the nation's leading specialty retailer of used cars.  With
 headquarters in Richmond, Va., the company currently operates 40 retail units
 in 37 locations, including 33 used-car superstores.  CarMax operates 21 new-
 car franchises, most of which are integrated or co-located with its used-car
 superstores.  For more information, access the company's Web site at
 http://www.CarMax.com .
     CarMax is a subsidiary of Circuit City Stores, Inc.  Circuit City Stores,
 Inc. has two series of common stock, one of which is the CarMax Group stock,
 which tracks the performance of the CarMax operations, and the other of which
 is the Circuit City Group (NYSE:   CC) stock, which tracks the performance of
 the Circuit City Group operations and the retained interest in the CarMax
 Group.  A portion of the earnings of the CarMax Group is attributed to the
 CarMax Group stock; the balance is attributed to the Circuit City Group stock.
     This release contains forward-looking statements, which are subject to
 risks and uncertainties.  Additional discussion of factors that could cause
 actual results to differ materially from management's projections, forecasts,
 estimates and expectations is contained in the Circuit City Stores, Inc. SEC
 filings.
 
                           CIRCUIT CITY STORES, INC.
                      CONSOLIDATED STATEMENTS OF EARNINGS
                        PERIODS ENDED FEBRUARY 28 OR 29
                  (Amounts in thousands except per share data)
 
                                   Three Months             Twelve Months
                                   2001     2000            2001     2000
 
     NET SALES AND
       OPERATING REVENUES  $3,817,127  $3,980,407  $12,959,028   $12,614,390
     Cost of sales,
       buying and
        warehousing         2,960,660   3,059,770   10,135,380     9,751,833
     Appliance exit
       costs                        -           -       28,326             -
 
     GROSS PROFIT             856,467     920,637    2,795,322     2,862,557
 
     Selling, general
       and administrative
        expenses             685,555      655,883    2,514,912     2,309,593
     Appliance exit costs          -            -        1,670             -
     Interest expense          4,518        7,108       19,383        24,206
 
     EARNINGS FROM
       CONTINUING
        OPERATIONS BEFORE
         INCOME TAXES        166,394      257,646      259,357       528,758
 
     Provision for
       income taxes           63,230       97,905       98,555       200,928
 
     EARNINGS FROM
       CONTINUING
        OPERATIONS           103,164      159,741      160,802       327,830
 
     Discontinued
       operations:
      Loss from
       discontinued
        operations of
         Divx, less
         income tax
         benefit                   -            -            -       (16,215)
      Loss on disposal
       of Divx, less
        income tax benefit         -            -            -      (114,025)
 
     LOSS FROM DISCONTINUED
       OPERATIONS                  -            -            -      (130,240)
 
     NET EARNINGS           $103,164     $159,741     $160,802      $197,590
 
     Net earnings (loss)
       attributed to:
     Circuit City Group
       common stock:
     Continuing operations  $101,190     $160,149     $149,247      $327,574
     Discontinued
       operations                 $-           $-           $-     $(130,240)
     CarMax Group
       common stock           $1,974        $(408)     $11,555          $256
 
     Weighted average
       common shares:
     Circuit City
       Group basic           204,401      201,999      203,774       201,345
     Circuit City
       Group diluted         206,380      204,749      205,830       204,321
 
     CarMax Group basic       25,579       24,611       25,554        23,778
     CarMax Group diluted     27,026       26,181       26,980        25,788
 
     NET EARNINGS (LOSS)
       PER SHARE:
     Circuit City
       Group basic:
     Continuing operations     $0.50        $0.79        $0.73         $1.63
     Discontinued operations      $-           $-           $-        $(0.65)
     Net earnings              $0.50        $0.79        $0.73         $0.98
 
     Circuit City Group
       diluted:
     Continuing operations     $0.49        $0.78        $0.73         $1.60
     Discontinued operations      $-           $-           $-        $(0.64)
     Net earnings              $0.49        $0.78        $0.73         $0.96
 
     CarMax Group basic        $0.08       $(0.02)       $0.45         $0.01
     CarMax Group diluted      $0.07       $(0.02)       $0.43         $0.01
 
                           CIRCUIT CITY STORES, INC.
                          CONSOLIDATED BALANCE SHEETS
                             (Amounts in thousands)
 
                                                        February 28 or 29
                                                       2001           2000
     ASSETS
 
     Current Assets:
     Cash and cash equivalents                       $446,131       $643,933
     Net accounts receivable                          585,761        593,276
     Inventory                                      1,757,664      1,689,209
     Prepaid expenses and other current assets         57,623         16,197
     Total Current Assets                           2,847,179      2,942,615
 
     Property and equipment, net                      988,947        965,181
     Other assets                                      35,207         47,552
 
     TOTAL ASSETS                                  $3,871,333     $3,955,348
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities:
     Current installments of long-term debt          $132,388       $177,344
     Accounts payable                                 902,560        960,131
     Short-term debt                                    1,200          3,005
     Accrued expenses and other
       current liabilities                            162,972        204,561
     Deferred income taxes                             92,479         61,118
     Total Current Liabilities                      1,291,599      1,406,159
 
     Long-term debt, excluding
       current installments                           116,137        249,241
     Deferred revenue and other liabilities            92,165        130,020
     Deferred income taxes                             14,949         27,754
     TOTAL LIABILITIES                              1,514,850      1,813,174
 
     STOCKHOLDERS' EQUITY                           2,356,483      2,142,174
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $3,871,333     $3,955,348
 
 
                                  CARMAX GROUP
                            STATEMENTS OF OPERATIONS
                        PERIODS ENDED February 28 or 29
                  (Amounts in thousands except per share data)
 
                                 Three Months              Twelve Months
                              2001          2000        2001           2000
 
     NET SALES AND
       OPERATING REVENUES  $639,996      $504,236   $2,500,991    $2,014,984
     Cost of sales          557,927       442,375    2,171,232     1,774,619
     GROSS PROFIT            82,069        61,861      329,759       240,365
     Selling, general
       and administrative
        expenses             66,566        61,399      244,167       228,200
     Interest expense         2,960         3,224       12,110        10,362
     EARNINGS (loss)
       BEFORE INCOME TAXES   12,543        (2,762)      73,482         1,803
     Income tax provision
       (benefit)              4,762        (1,050)      27,918           685
     NET EARNINGS (loss)     $7,781       $(1,712)     $45,564        $1,118
 
     Net earnings (loss)
       attributed to:
     Circuit City Group
       common stock          $5,807       $(1,304)     $34,009          $862
     CarMax Group
       common stock          $1,974         $(408)     $11,555          $256
 
     Weighted average
       common shares:
     Basic                   25,579        24,611       25,554        23,778
     Diluted                 27,026        26,181       26,980        25,788
 
     NET EARNINGS (loss)
       PER SHARE:
     Basic                    $0.08        $(0.02)       $0.45         $0.01
     Diluted                  $0.07        $(0.02)       $0.43         $0.01
 
                                  CARMAX GROUP
                                 BALANCE SHEETS
                             (Amounts in thousands)
 
                                                         February 28 or 29
                                                       2001            2000
     ASSETS
     Current Assets:
     Cash and cash equivalents                         $8,802         $9,981
     Net accounts receivable                          134,662        129,253
     Inventory                                        347,137        283,592
     Prepaid expenses and other current assets          2,306          2,844
     Total Current Assets                             492,907        425,670
     Property and equipment, net                      192,158        211,856
     Other assets                                      25,888         37,969
 
     TOTAL ASSETS                                    $710,953       $675,495
 
     LIABILITIES AND GROUP EQUITY
     Current Liabilities:
     Current installments of long-term debt          $108,151        $91,609
     Accounts payable                                  82,483         75,959
     Short-term debt                                      987          1,552
     Accrued expenses and other
       current liabilities                             16,154         19,856
     Deferred income taxes                             18,162          7,147
     Total Current Liabilities                        225,937        196,123
     Long-term debt, excluding
       current installments                            83,057        121,257
     Deferred revenue and other liabilities             6,836          7,249
     Deferred income taxes                              3,620          5,877
     TOTAL LIABILITIES                                319,450        330,506
     GROUP EQUITY                                     391,503        344,989
     TOTAL LIABILITIES AND GROUP EQUITY              $710,953       $675,495
 
 SOURCE  CarMax Group

RELATED LINKS

http://www.circuitcity.com