CarMax Inc

Stand by, your program is about to begin. If you need any assistance during your conference today, please press star zero. Ladies and gentlemen, thank you for standing by. Welcome to the Q1 Quarter Fiscal Year 2025 CARMAC Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker today, David Lowenstein, VP, Investor Relations. Please go ahead.

Thank you, Savannah. Good morning, everyone. Thank you for joining our fiscal 2025 first quarter earnings conference call. I'm here today with Bill Nash, our president and CEO, Enrique Mayor-Moore, our executive vice president and CFO, and John Daniels, our senior vice president, CarMax Auto Finance Operations. Let me remind you, our statements today that are not statements of historical fact, including statements regarding the company's future business plans, prospects, and financial performance, are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current knowledge, expectations, and assumptions and are subject to substantial risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, we disclaim any intent or obligation to update them. For additional information on important factors that could affect these expectations, please see our Form 8-K filed with the SEC this morning and our annual report on Form 10-K for the fiscal year ended February 29, 2024, previously filed with the SEC. Should you have any follow-up questions after the call, please feel free to contact our Investor Relations Department at 804-747-0422, extension 7865. Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow-ups.

Bill? Great. Thank you, David. Good morning, everyone, and thanks for joining us. During the quarter, we saw continued positive trends, including year-over-year price declines, improvement in vehicle value stability, and ongoing growth in upper funnel demand. We're encouraged by what we are seeing and are continuing to strengthen our business by delivering associate and customer wins that are differentiated and durable. In the first quarter, we delivered strong retail and wholesale GPUs and grew EPP margins. We sourced approximately 35,000 vehicles from dealers, an all-time record. We increased used saleable inventory units 5% year-over-year, while decreasing used total inventory units 4%. We grew CAF income 7% year-over-year under tightened lending standards, and post-quarter-end, we launched our first non-prime securitization deal. We continued to actively manage our SG&A, and we repurchased over $100 million in shares. For the first quarter of FY25, our diversified business model delivered total sales of $7.1 billion, down 7% compared to last year, reflecting lower retail and wholesale volume and prices. In our retail business, total unit sales declined 3.1%, and average selling price declined approximately $700 per unit, or 3% year over year. Used unit comps were down 3.8%, and we saw comp performance strengthen in the back half of the first quarter. First quarter retail gross profit per used unit was $2,347 in line with last year's $2,361. Wholesale unit sales were down 8.3% versus the first quarter last year as the industry experienced lower seasonal appreciation year over year. Average selling price declined approximately $900 per unit or 10%. Wholesale gross profit per unit was a first quarter record of $1,064, up from $1,042 a year ago. We bought approximately 314,000 vehicles during the quarter, down 9% from last year. The appreciation dynamic that I just mentioned impacted our overall buys as well. We purchased approximately 279,000 vehicles from consumers, with slightly more than half of those buys coming through our online instant appraisal experience. With the support of our Edmund sales team, we sourced the remaining approximately 35,000 vehicles through dealers, up 70% from last year. For our first quarter online metrics, approximately 14% of retail unit sales were online consistent with last year. We continue to see ongoing adoption of our omnichannel retail experience. Approximately 57% of retail unit sales were omni sales this quarter, up from 54% in the prior year. Total revenue from online transactions was approximately 30% in line with last year. All of our first quarter wholesale auctions and sales were virtual and are considered online transactions, which represent 18% of total revenue for the quarter. CarMax Auto Finance, or CAF, delivered income of $147 million, up 7% from the same period last year. In a few minutes, John will provide more detail on customer financing, the loan loss provision, CAF contribution, and our progress in becoming a full credit spectrum lender, which enables incremental growth in finance income. At this point, I'd like to turn the call over to Enrique, who will provide more information on our first quarter financial performance. Enrique?