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This excerpt taken from the KMX 8-K filed Dec 18, 2009. Gross Profit. Total gross profit increased 22% to $242.9 million from $199.2 million in the third quarter of fiscal 2009, reflecting the combination of the increase in unit sales plus an improvement in total gross profit dollars per retail
unit, which increased $349 per unit to $3,048 in the current quarter from $2,699 in the corresponding prior year quarter.
Used vehicle gross profit increased to $2,100 per unit from $1,854 per unit in the prior year quarter. While wholesale industry pricing declined when compared with the second quarter, wholesale valuations remained significantly above the prior year’s third quarter. We believe our superior inventory management systems
and processes contributed to the strong current quarter profit per unit. Despite the aggressive reductions in inventory made last year, we were able to achieve inventory turns in this year’s third quarter that were consistent with the prior year quarter.
Wholesale gross profit increased to $827 per unit in the current quarter, compared with $794 in the third quarter of last year, primarily reflecting both the higher year-over-year wholesale pricing environment and a slight improvement in the already strong car-to-dealer ratio experienced at our auctions.
Other gross profit increased to $439 per unit from $397 per unit in the prior year quarter. Service department profits grew because our retail vehicle sales growth outpaced fixed service overhead costs, and extended service plan profits benefited from both the increase in used unit sales and the contribution from our new guaranteed
asset protection product.
This excerpt taken from the KMX 8-K filed Sep 22, 2009. Gross Profit. Total gross profit increased 23% to $314.5 million from $255.9 million in the second quarter of fiscal 2009, reflecting the combination of the increase in unit sales plus an improvement in total gross profit dollars per retail unit,
which increased $363 per unit to $3,116 in the current quarter from $2,753 in the corresponding prior year quarter.
Used vehicle gross profit increased to $2,120 per unit from $1,870 per unit in the prior year quarter. The improvement resulted from a combination of factors, including the continued appreciation in used car wholesale values since January 2009, an increase in our inventory turns and the robust sales environment experienced in the
quarter.
Wholesale gross profit per unit declined to $826 in the current quarter, compared with $897 in the second quarter of last year, primarily reflecting the challenging comparison with the prior year period. Other gross profit increased to $551 per unit from $385 per unit in the second quarter of last year. Service department
profits grew because our retail sales growth outpaced fixed service overhead costs, and extended service plan profits benefited from the successful introduction of a guaranteed asset protection product.
This excerpt taken from the KMX 8-K filed Jun 19, 2009. Gross
Profit. Total gross profit
declined 2% to $276.2 million from $282.7 million in the first quarter of fiscal
2009, despite the 17% decline in total revenues. The effect of the
decline in unit sales was largely offset by an improvement in our total gross
profit dollars per retail unit, which increased $347 per unit to $2,911 in the
current quarter from $2,564 in the corresponding prior year
period.
Used
vehicle gross profit per unit increased to $2,001 per unit from $1,742 per unit
in the prior year quarter. In part, this improvement reflected the
below-average profitability reported in the first quarter of fiscal 2009, when
the initial slowdown in customer traffic and the rapid decline in underlying
wholesale values of SUVs and trucks put pressure on our used vehicle
margins. The improvement also reflected benefits realized from our
initiatives to reduce vehicle reconditioning costs.
Wholesale
vehicle gross profit per unit increased to $904 per unit from $784 per unit in
the first quarter of fiscal 2009. The strong industry wholesale price
appreciation in the last several months contributed to the increased per-unit
contribution, as did the strong dealer-to-car ratio experienced at our
auctions.
This excerpt taken from the KMX 8-K filed Apr 2, 2009. Gross
Profit. Total gross profit decreased by $26.8 million, or 10%,
to $230.3 million primarily due to the significant decline in used and wholesale
unit sales. However, our gross profit dollars per used unit increased
substantially, by $325 to $2,040 per unit compared with $1,715 per unit in last
year’s fourth quarter. The improvement resulted from a combination of
factors. In part, it reflected the below-average gross profit per
unit generated in the prior year’s fourth quarter. It also reflected
a continuation of the unprecedented rate of depreciation in wholesale industry
prices through the end of the calendar year, followed by a record rate of
appreciation in January and February. This shift allowed us to
temporarily optimize gross profit per unit during a period when we were already
able to provide compelling values to consumers. Despite the reduction
in sales, we were able to modestly increase our used vehicle inventory turns in
the fourth quarter of fiscal 2009 compared with the prior year
period.
Wholesale
gross profit per unit increased $73 to $882 per unit compared with $809 per unit
in the fourth quarter of fiscal 2008. We experienced a record
dealer-to-car ratio at our auctions in this year’s fourth quarter, with the
resulting price competition among bidders contributing to the strong wholesale
profit per unit. We typically experience our strongest wholesale
gross profit per unit in the fourth quarter, as this generally coincides with
peak seasonal demand for older, higher mileage vehicles.
This excerpt taken from the KMX 8-K filed Dec 19, 2008. Gross
Profit. Total gross profit decreased by $43.6 million, or 18%,
to $199.2 million primarily because of the significant decline in used and
wholesale unit sales. However, our gross profit dollars per used unit
declined by only $32 per unit to $1,854 compared with $1,886 in last year’s
third quarter. We believe our ability to maintain a generally
consistent level of gross profit per unit, despite the challenging sales
environment and the steep decline in wholesale market prices, was due in large
part to the effectiveness of our proprietary inventory management systems and
processes. Compared with inventory levels at stores open as of
November 30, 2007, we have reduced our used vehicle inventory by more than
18,500 units, representing a reduction of more than $340
million. During this year’s third quarter, we reduced comparable
store used vehicle inventories by approximately 8,300 units, or nearly $140
million.
Wholesale
gross profit per unit increased by $20 to $794 compared with $774 in the third
quarter of fiscal 2008. Similar to the first half of the year, we
continued to experience a strong dealer-to-car ratio at our auctions, with the
normal price competition among bidders contributing to the solid wholesale gross
profit per unit. Our wholesale vehicles are predominantly comprised
of older, higher mileage units, and we believe the demand for these vehicles
remains strong from dealers who specialize in selling to credit-challenged
customers. In addition, the frequency of our auctions and our
wholesale inventory turns minimize our depreciation risk on these
vehicles.
This excerpt taken from the KMX 8-K filed Sep 22, 2008. Gross
Profit. Total gross profit declined by $32.3 million to $255.9
million primarily because of the decrease in used unit sales. In
addition, the gross profit per used unit declined by $112 to $1,870 compared
with $1,982 in last year’s second quarter. As in the first quarter,
the reduction in appraisal traffic and the appraisal buy rate led to our
sourcing a larger percentage of our used vehicles at auction, which had an
adverse effect on our gross profit per used unit.
Compared
with the first quarter of this year, however, our gross profit per used vehicle
increased by $128 to $1,870 from $1,742. We were able to achieve this
sequential improvement, despite the double-digit decline in comparable store
used unit sales. We believe this improvement was primarily the result
of our success in rapidly reducing our vehicle inventories, which brought them
back in line with current sales rates and minimized required pricing
markdowns. Compared with inventory levels at stores open as of May
31, 2008, during the second quarter we reduced our used vehicle inventory by
more than 13,300 units, representing a reduction in excess of $200
million.
Wholesale
gross profit per unit was $897 in the second quarter, representing an increase
of more than $100 compared with both the second quarter of last year and the
first quarter of the current year. We continued to experience strong
dealer attendance at our auctions, with the normal price competition among
bidders contributing to the strong wholesale gross profit
performance. With an average selling price of roughly $4,000, the
majority of our wholesale units are older, higher mileage
vehicles. We believe the current demand for these types of vehicles
is particularly strong from dealers who specialize in selling to
credit-challenged customers.
This excerpt taken from the KMX 8-K filed Jun 18, 2008. Gross
Profit. The
total gross profit per unit declined by $237 to $2,564 compared with $2,801 in
the first quarter of fiscal 2008. The majority of the decline
resulted from the $192 per unit decrease in gross profit per used
vehicle. Several factors contributed to this decrease. Our
used vehicle gross profit per unit was pressured by the slowing sales
environment. The decline in appraisal traffic and the buy rate also
adversely affected our gross profit per unit, as vehicles purchased directly
from consumers generate more profit compared with vehicles sourced at
auction. The rapid decline in the wholesale market values for SUVs
and trucks resulted in significant margin pressure on this segment of our
inventory, and it led us to take supplemental pricing markdowns for these
vehicles, which further pressured margins. Compared with the fourth
quarter of fiscal 2008, however, we achieved a $33 per unit improvement in total
gross profit.
Wholesale
gross profit per unit declined slightly, to $784 from $800 in the first quarter
of fiscal 2008. We continued to experience strong dealer-to-car
ratios at our auctions, with the normal price competition among bidders
contributing to the continued solid wholesale gross profit
performance.
This excerpt taken from the KMX 8-K filed Apr 2, 2008. Gross
Profit. Our total gross profit per unit declined by $120 to
$2,531 compared with $2,651 in the fourth quarter of fiscal 2007. The
majority of the decline resulted from a $111 per unit decrease in gross profit
per used vehicle. In the more challenging consumer environment, we
were willing to sacrifice some margin when we felt doing so could benefit sales,
consistent with our long-term strategy to deliver a superior customer experience
and grow market share.
Wholesale
gross profit per unit increased slightly to $809 per unit compared with $805 per
unit in the fourth quarter of fiscal 2007. We continued to experience
strong dealer attendance at our auctions, despite the challenging economic
environment.
This excerpt taken from the KMX 10-K filed May 12, 2006. GROSS PROFIT
This excerpt taken from the KMX 10-K filed May 13, 2005. Gross Profit
The components of gross profit margins and gross profit per unit are presented in Table 2.
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