carmax inc (KMX) Key Developments
fCarMax, Inc. and CarMax Auto Superstores, Inc. Enter into New Unsecured Revolving Credit Facility with Bank of America, N.A
Aug 26 15
On August 24, 2015, in connection with entering into a new unsecured revolving credit facility, CarMax, Inc. terminated its previous unsecured revolving credit facility and the related credit agreement dated August 26, 2011, among the company, CarMax Auto Superstores, Inc. (CASI), certain other subsidiaries of the company, Bank of America, N.A., and the other lending institutions named therein. On entering the credit facility described below, the liability of the Company and its subsidiaries with respect to their obligations under the Previous Credit Agreement was discharged. The Previous Credit Agreement had been scheduled to terminate on August 26, 2016. No early termination penalties were incurred as a result of the termination. On August 24, 2015, CarMax, Inc., CarMax Auto Superstores, Inc., and certain other subsidiaries of the company, entered into a credit agreement for an unsecured revolving credit facility with Bank of America, N.A., as a lender and as administrative agent, and the other lending institutions named therein. The revolving credit facility under the 2015 Credit Agreement replaced the revolving credit facility under the Previous Credit Agreement. The Agreement provides for aggregate revolving borrowings of up to $1.2 billion, with an option to increase the aggregate commitment by up to $500 million by requesting an increase in commitment from the existing lenders or by adding additional lenders. Borrowings under the Agreement are available for working capital and general corporate purposes and all outstanding principal amounts borrowed under the Agreement will be due and payable on August 24, 2020. The borrowings and other obligations under the Agreement are guaranteed by the Company and certain of its subsidiaries. The Company may elect interest rates on its revolving borrowings calculated either by reference to LIBOR or to a Base Rate, as defined in the Agreement, in each case plus a margin based on the Company's consolidated leverage ratio. Interest will generally be payable on the first business day of each calendar month. A commitment fee, based on the Company's consolidated leverage ratio, will accrue on the unused portion of the commitments under the facility. The Agreement contains customary representations and warranties, conditions, and affirmative and negative covenants, including requirements to maintain a minimum coverage ratio and to avoid exceeding a maximum leverage ratio. The Agreement also provides for customary events of default, including non-payment of principal, interest or fees, violation of covenants, bankruptcy, change of control and cross-defaults to material indebtedness. In addition to participation in the Agreement, certain of the lenders, and their respective affiliates, provide other services to the Company, CASI and certain other subsidiaries of the Company, including cash management and treasury services, asset-backed securitization services, retail installment financing to the Company's customers, derivative transactional services, and other corporate finance services.
CarMax Announces Hiring at New Store Maplewood, Minnesota
Jul 21 15
CarMax Inc. has announced the hiring of more than 50 positions for the company's new store in Maplewood, Minnesota. This is the second store in the Minneapolis area, with the first located in Brooklyn Park, which opened earlier this year. The more than 20,000 square-foot store is located at 1325 Beam Avenue East and is scheduled to open in September 2015.
CarMax, Inc. Opens Two New Stores in Denver, Colorado
Jun 24 15
CarMax Inc. has opened its third and fourth stores in the Denver area, Colorado, in the U.S. CarMax's Loveland store is located at 3760 Byrd Drive and is the latest addition to the Motorplex at Centerra, the auto center in Northern Colorado located within the Centerra master-planned community. The Parker store is located at 1822 Ponderosa Drive and is located about half a mile west of the intersection at South Parker Road and Lincoln Avenue. Each store will stock more than 250 used vehicles of nearly every make and model.
CarMax Inc. Reports Unaudited Consolidated Earnings Results for the Three Months Ended May 31, 2015; Provides Capital Expenditure Guidance for the Year 2016
Jun 19 15
CarMax Inc. reported unaudited consolidated earnings results for the three months ended May 31, 2015. For the quarter, the company reported net sales and operating revenues of $4,014,888,000 against $3,750,196,000 a year ago. Earnings before income taxes were $295,979,000 against $275,022,000 a year ago. Net earnings were $181,974,000 against $169,653,000 a year ago. Diluted net earnings per share were $0.86 against $0.76 a year ago. Net cash provided by operating activities was $117,554,000 against net cash used in operating activities of $209,080,000 a year ago. Capital expenditures were $59,437,000 against $53,709,000 a year ago.
The company currently estimate total capital expenditures will be approximately $360 million in fiscal 2016.
Carmax Inc. Opens New Store in Rhode Island
Jun 19 15
CarMax Inc. has opened its new store in Rhode Island, located at 153 Bald Hill Road in Warwick. The store is more than 15,000 square-feet, occupies more than 8 acres and stocks more than 300 used vehicles.