Item 7.01 Regulation FD Disclosure.
Today, November 15, 2021, certain special purpose securitization trusts that
purchase auto loans receivable from non-recourse funding vehicles of CarMax,
Inc. (the "Company," "we" or "our") filed reports on Form 10-D, which disclose
that our CarMax Auto Finance ("CAF") portfolio of receivables experienced
increased delinquencies and net losses in October 2021. A significant portion of
these increases is attributable to the transition from CAF's legacy auto loan
receivable servicing systems to new servicing systems.
While the systems upgrade was successful, and is expected to improve operating
efficiency and enhance customer service, it necessitated periods of planned down
time for servicing systems, a weeks-long pause in vehicle repossessions,
required associate training, and had other implementation impacts. We expect the
resulting impact on delinquencies and net losses to normalize over the coming
months as we process the backlog created by the servicing systems transition.
Forward-Looking Statements
This current report on Form 8-K contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. You can
identify these forward-looking statements by the use of words such as
"anticipate," "believe," "could," "estimate," "expect," "intend," "may,"
"outlook," "plan," "positioned," "predict," "should," "will" and other similar
expressions, whether in the negative or affirmative. Forward-looking statements
are subject to assumptions, risks and uncertainties that may cause actual
results to differ materially from those contemplated by such forward-looking
statements. The factors that may adversely impact the anticipated outcomes
include, among others: the effect and consequences of the Coronavirus public
health crisis on matters including U.S. and local economies; our business
operations and continuity; the availability of corporate and consumer financing;
the health and productivity of our associates; the ability of third-party
providers to continue uninterrupted service; and the regulatory environment in
which we operate; changes in general or regional U.S. economic conditions;
changes in the availability or cost of capital and working capital financing,
including changes related to the asset-backed securitization market; significant
changes in prices of new and used vehicles; changes in economic conditions or
other factors that result in greater credit losses for CAF's portfolio of auto
loans receivable than anticipated; factors related to the regulatory and
legislative environment in which we operate; the failure of or inability to
sufficiently enhance key information systems; and other factors included under
"Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended
February 28, 2021, and our quarterly or current reports as filed with or
furnished to the U.S. Securities and Exchange Commission. Our filings are
publicly available on our investor information home page at
investors.carmax.com. Requests for information may also be made to the Investor
Relations Department by email to investor_relations@carmax.com or by calling
(804) 747-0422 x7865. We undertake no obligation to update or revise any
forward-looking statements after the date they are made, whether as a result of
new information, future events or otherwise.
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