CarMax Inc. (NYSE:KMX) Q1 2020 Earnings Conference Call - Final Transcript

Jun 21, 2019 • 09:00 am ET

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CarMax Inc. (NYSE:KMX) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the CarMax Fiscal 2020 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you.

I would now like to turn the call over to Katharine Kenny, Vice President, Investor Relations.

Executive
Katharine Kenny

Good morning. Thank you, Tiffany. Thank you all for joining our fiscal 2020 first quarter earnings conference call. I'm here as usual with Bill Nash, our President and Chief Executive Officer, and Tom Reedy, our Executive Vice President and CFO.

Let me remind you that our statements today regarding the Company's future business plans, prospects and financial performance are forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current knowledge and assumptions about future events that involve risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, the Company disclaims any intent or obligation to update them.

For additional information on important factors that could affect these expectations, please see the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2019 filed with the SEC.

Lastly and last time, let me thank you in advance for asking one question, and getting back in the queue for follow-up. Thank you, Bill.

Executive
Bill Nash

Thank you, Katharine. Good morning, everyone and thank you for joining us today. Before I get started, I do want to take a moment to personally thank Katharine, who many of you know is retiring at the end of July. So this is her last call. Katharine has run a very successful IR program for us over the past 13 years, and I'm sure that you all agree that she will be deeply missed. Katharine, we wish you the best in your retirement and I hope it exceeds your expectations. I'd also like to introduce Stacy Frole, who's similar to Katharine, has a very strong IR background and as many of you already know, Katharine and Stacy have been working closely together over the last month to ensure a smooth transition in our Investor Relations communication. So welcome Stacy, and again congratulations Katharine.

Executive
Katharine Kenny

Thanks, Bill.

Executive
Bill Nash

For today's call, I'll start with our first quarter highlights, I will then turn the call over to Tom to discuss our financials in more detail before providing an update on our omni-channel rollout, which continues to perform very well, then we will open it up for your questions.

As you read in earnings release this morning, we are pleased to announce a very strong start to fiscal 2020 with net earnings growth of 11.8% and EPS up 19.5%. We achieved a 9.5% increase in used unit comps and a 13% increase in our total used unit sold. This strength in