CarMax, Inc. (KMX) has reported an 8.21 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $152.60 million, or $0.81 a share in the quarter, compared with $141.03 million, or $0.71 a share for the same period last year.
Revenue during the quarter grew 9.29 percent to $4,049.96 million from $3,705.80 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 13.88 percent. Total expenses were 93.59 percent of quarterly revenues, up from 93.31 percent for the same period last year. That has resulted in a contraction of 27 basis points in operating margin to 6.41 percent.
Operating income for the quarter was $259.64 million, compared with $247.74 million in the previous year period.
Operating cash flow remains negative
CarMax, Inc. has spent $468.14 million cash to meet operating activities during the year as against cash outgo of $148.89 million in the last year.
The company has spent $465.57 million cash to meet investing activities during the year as against cash outgo of $378.80 million in the last year. It has incurred net capital expenditure of $416.92 million on net basis during the year, up 32.76 percent or $102.87 million from year ago.
Cash flow from financing activities was $934.73 million for the year, up 73.91 percent or $397.26 million, when compared with the last year.
Cash and cash equivalents stood at $38.42 million as on Feb. 28, 2017, up 2.73 percent or $1.02 million from $37.39 million on Feb. 29, 2016.
Working capital increases
CarMax, Inc. has recorded an increase in the working capital over the last year. It stood at $1,767.84 million as at Feb. 28, 2017, up 20.54 percent or $301.26 million from $1,466.59 million on Feb. 29, 2016. Current ratio was at 2.60 as on Feb. 28, 2017, up from 2.46 on Feb. 29, 2016.
Debt moves up
CarMax, Inc. has witnessed an increase in total debt over the last one year. It stood at $12,169.70 million as on Feb. 28, 2017, up 14.42 percent or $1,533.54 million from $10,636.17 million on Feb. 29, 2016. Total debt was 74.76 percent of total assets as on Feb. 28, 2017, compared with 73.45 percent on Feb. 29, 2016. Debt to equity ratio was at 3.91 as on Feb. 28, 2017, up from 3.66 as on Feb. 29, 2016. Interest coverage ratio improved to 15.88 for the quarter from 21.02 for the same period last year.
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