Company Documents |
SEC Form 8K
Companies file 8Ks with the Securities and Exchange Commission to report unscheduled material events or corporate changes that would be of interest to shareholders. Bankruptcies, acquisitions, corporate restructuring and changes in directorship could all trigger an 8K filing. CarMax filed an 8K in 2003 when the company was undergoing a major reorganization. CarMax also issued a supplemental note to investors that detailed its growth plan.
Annual Reports
The CarMax website includes annual reports from 1999-2007. While the financial data in an annual report can be found in an SEC 10K filing, corporations are also required to distribute annual reports to shareholders to disclose financial performance and corporate conditions. The two reports below are particularly relevant to this case study.
Circuit City 1999 Annual Report
Circuit City's 1999 annual report includes fiscal data on The CarMax Group, as well as a letter from CarMax president
"At CarMax, we believe that we have developed the preferred way for consumers to buy cars," Ligon writes on Page 7. "However, we also recognize that we must introduce more consumers to our concept and continue to refine our operating skills so that we produce not just a profit, but a profit that generates acceptable returns for our shareholders."
CarMax 2003 Annual Report
CarMax, now a separate, publicly traded company, has seen its profitability increase dramatically since 1999, when the division recorded a net loss for Circuit City of almost $24,000. In his president's letter in CarMax's 2003 annual report, Ligon details an aggressive growth plan in which CarMax would open 15-20% more stores each year. "Our plan to grow the CarMax concept nationwide will be key to our value creation," he explains on Page 3.
Press Releases
CarMax Increases Loan Committment To Help Finance Growth, Feb. 26, 2003
CarMax Sells Its Millionth Vehicle, July 10, 2003
Video Introduction to CarMax | |
| Source: | CarMax |
| Date: | January 12th, 2007 |