CarMax Inc

Good morning. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the CarMax Fiscal 2020 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Catherine Kenney, Vice President, Investor Relations.

Good morning. Thank you, Tiffany. Thank you all for joining our fiscal 2020 first quarter earnings conference call. I'm here, as usual, with Bill Nash, our president and chief executive officer, and Tom Rhee, our executive vice president and CFO. Let me remind you that our statements today regarding the company's future business plans, prospects, and financial performance are forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current knowledge and assumptions about future events that involve risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, the company disclaims any intent or obligation to update them. For additional information on important factors that could affect these expectations, please see the company's annual report on Form 10-K for the fiscal year ended February 28, 2019, filed with the SEC. Lastly, and last time, let me thank you in advance for asking one question and getting back in the queue for follow-up.

Thank you, Bill. Thank you, Catherine. Good morning, everyone, and thank you for joining us today. Before I get started, I do want to take a moment to personally thank Catherine, who many of you know is retiring at the end of July, so this is her last call. Catherine has run a very successful IR program for us over the past 13 years, and I am sure that you all agree that she will be deeply missed. Catherine, we wish you the best in your retirement. I hope it exceeds your expectations. I'd also like to introduce Stacey Frohli, who, similar to Catherine, has a very strong IR background, and as many of you already know, Catherine and Stacey have been working closely together over the last month. to ensure a smooth transition in our investor relations communication. So welcome, Stacey, and again, congratulations, Catherine. Thanks, Billy. For today's call, I'll start with our first quarter highlights. I will then turn the call over to Tom to discuss our financials in more detail before providing an update on our omnichannel rollout, which continues to perform very well. Then we will open it up for your questions. As you read in earnings release this morning, we are pleased to announce a very strong start to fiscal 2020. with net earnings growth of 11.8% and EPS up 19.5%. We achieved a 9.5% increase in used unit comps and a 13% increase in our total used units sold. This strength in retail is the result of a combination of many factors, including our solid execution, which was supported by enhancements to the customer experience, a robust lending environment, and a delay of February tax refunds into our first quarter. Conversion for the quarter increased year-over-year, while store traffic remained relatively unchanged. Our website traffic grew 15% from a year ago. Gross profit per unit for the quarter was consistent with prior year at $22.15. We continue to drive efficiencies in our inventory management systems, allowing us to maintain margins while offering attractive prices. In addition to strong retail sales in the first quarter, we reported higher wholesale units with volume up 6% for the quarter versus a year ago. This was the result of an all-time record buy rate as well as the growth in our store base year over year. Gross profit per wholesale unit was 1043, an increase of 3.1% compared with last year. This strong wholesale performance likely benefited from the delay in tax refunds as well. As a percentage of sales, zero to four-year-old vehicles decreased less than 1% to 76% versus 77% in the first quarter of last year. Total SUVs and trucks accounted for about 46% of our sales, up from 43% this time last year. At this point, I'll turn it over to Tom.