CarMax Inc. (NYSE:KMX) Q2 2021 Earnings Conference Call - Final Transcript

Good morning. My name is Carol and I will be your conference operator today. At this time, I would like to welcome everyone to the CarMax Fiscal 2021 Second 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 Stacy Frole, Vice President, Investor Relations.

Thank you, Carol. Good morning. Thank you for joining our fiscal 2021 second quarter earnings conference call. I'm here today with Bill Nash, our President and CEO; Tom Reedy, our Executive Vice President of Finance; and Enrique Mayor-Mora, our Senior Vice President and CFO; and Jon Daniels, our Senior Vice President, CAF Operation.

Let me remind you, our comments today regarding the company's future business plans, prospects, and financial performance are forward-looking statements we make pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the 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 Form 8-K issued this morning and its annual report on Form 10-K for the fiscal year ended February 29th, 2020 filed with the SEC.

Should you have any follow-up questions after the call, please feel free to contact our Investor Relations department at 804-747-0422, extension 7865.

I also would like to thank you in advance for asking only one question and getting back in the queue for more follow-up. Lastly, I want to take a moment to personally thank Celeste Gunter, who is retiring from CarMax. Celeste has been an integral part of our IR program for almost 20 years and I'm sure you will all agree, she will be deeply missed. Celeste, we wish you all the joy and happiness retirement can bring. Bill?

Great. Thank you, Stacy. Good morning everyone and thanks for joining us. As you read in earnings release this morning, we delivered a record quarter with sales up 3.3% to $5.37 billion. Net earnings up 27% to $297 million and EPS up 27.9% to $1.79. This performance was the result of strength across all aspects of our business, retail, wholesale and CAF. We are proud to be the nation's largest, most profitable retailer of used cars.

I'm also proud to say that this quarter, we completed the rollout of our omni-channel offerings. This has been years in the making and has required a remarkable level of focus and change across our entire organization. During this time, we have evolved nearly every aspect of our business, from how we support and interact with our customers to how we structure our staffing, to how we buy, sell, and deliver cars. Our omni-channel experience