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New words:
accomplish, adequacy, AFSI, Algonquin, alongside, altogether, appointed, appointment, apprised, authentically, bandwidth, Brook, CAMT, captioned, Carrollton, celebrate, champion, Changemaker, CISO, CITO, climate, costly, Drop, Earth, ESG, essential, EV, EVs, extensive, extreme, facet, formalized, forthcoming, gas, geopolitical, Green, greenhouse, hospitality, hub, impartially, inaccurate, incomplete, intake, intense, job, landscape, leaner, logging, MaxCare, meaningfully, messaging, modestly, MyCarMax, newest, newly, NWSL, opportunistic, overseen, peer, posture, procurement, prolonged, proper, ransomware, rapid, reassurance, reconciliation, redeemable, remediation, resiliency, resilient, revamped, scanning, scrutiny, Shield, Skye, slight, Smithtown, SOFR, sooner, startup, streamlined, tabletop, thirty, threat, timeframe, undisbursed, vendor, Victorville, voice, Volkswagen, voluntarily, webpage, widened, widespread, Winchester, WNBA
Removed:
advance, belief, breakdown, calculating, Certainty, close, compelling, content, continuity, deferral, deleverage, Disaster, divestiture, encourage, ethnic, excellent, female, independently, IRS, LIBOR, male, noncurrent, noted, OEM, organization, pressure, racial, Rescue, shift, slowest, subsection, Taxpayer, terrorism, top, Topic, uncollectible, uninterrupted
Financial report summary
?Competition
Ally Financial • Lithia Motors, Inc. - Ordinary Shares • Adesa • Truecar • Openlane • Santander Consumer USA • Vroom • HC Liquidating • CarLotzRisks
- The automotive retail industry in general and our business in particular are sensitive to economic conditions. These conditions could adversely affect our business, sales, results of operations and financial condition.
- Our business is sensitive to changes in the prices of new and used vehicles.
- Our business is dependent upon access to vehicle inventory and the parts used to recondition such inventory. A failure to expeditiously liquidate that inventory—or obstacles to acquiring inventory, including parts—whether because of supply, competition, or other factors could have a material adverse effect on our business, sales and results of operations.
- Our failure to realize the benefits associated with our omni-channel platform could have a material adverse effect on our business, sales and results of operations.
- Our success depends upon the continued contributions of our associates.
- We may experience greater credit losses in CAF’s portfolio of auto loans receivable than anticipated.
- Our failure to realize the benefits associated with our strategic investments, including actual or potential acquisitions, could have a material adverse effect on our business, sales and results of operations and we may incur impairment losses on our strategic investments in equity securities.
- We rely on third-party finance providers to finance a significant portion of our customers’ vehicle purchases. Accordingly, our sales and results of operations are partially dependent on the actions of these third parties.
- We rely on third-party providers to supply EPP products to our customers. Accordingly, our sales and results of operations are partially dependent on the actions of these third-parties.
- We rely on third-party vendors for key components of our business.
- Our business is sensitive to conditions affecting automotive manufacturers, including manufacturer recalls.
- Our results of operations and financial condition are subject to management’s accounting judgments and estimates, as well as changes in accounting policies.
- We may not be able to adequately protect our intellectual property, which could adversely affect our business, sales, results of operations and financial condition.
- Our business is sensitive to weather events.
- We have communicated certain environmental goals that are subject to related disclosure requirements. Failure to meet environmental goals or satisfy disclosure requirements could adversely affect our business, sales, results of operations and financial condition.
- We are subject to local conditions in the geographic areas in which we are concentrated.
- We collect sensitive confidential information from our customers. A breach of this confidentiality, whether due to a cybersecurity or other incident, could result in harm to our customers and damage to our brand.
- We operate in a highly regulated industry and are subject to a wide range of federal, state and local laws and regulations. Changes in these laws and regulations, or our failure to comply, could have a material adverse effect on our business, sales, results of operations and financial condition.
- We are subject to evolving regulations, disclosure requirements, and expectations relating to environmental, social and governance matters. Failure to satisfy these regulations, requirements, and expectations could adversely affect our business, sales, results of operations and financial condition.
- The market price of our common stock may be volatile and could expose us to securities class action litigation.
Management Discussion
- Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
- See Part I, Item 1 for a detailed description and discussion of the company’s business.
- CarMax is the nation’s largest retailer of used vehicles. We operate in two reportable segments: CarMax Sales Operations and CarMax Auto Finance (“CAF”). Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax. Our consolidated financial statements include the financial results related to our Edmunds Holding Company (“Edmunds”) business, which does not meet the definition of a reportable segment. For purposes of our MD&A discussion, amounts related to that business are discussed in combination with our CarMax Sales Operations segment. Separate discussion of these amounts is not considered meaningful for the purpose of gaining an understanding of our business, as the significant drivers of these operations in total are consistent with those of our CarMax Sales Operations segment. Where appropriate, specific amounts related to non-reportable segments have been disclosed for informational purposes.