CarMax FY 4Q17 Earnings Call Notes

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Bill Nash – CEO

SEO vs. SEM

“remember, what we’re talking about is SEO, search engine optimization versus search engine marketing. Search engine marketing is what you pay for the ads. Search engine optimization, the way you — it’s not necessary that you’re paying for ads. The way we do it is, through this year, we’ve done a couple different things. One, it started with the website. Since the new website, we’ve also redesigned how the search engines crawl our website and make it so it’s more efficient for them to crawl. We focus on keywords, again keywords that aren’t related to CarMax, and building up pages and so that when the search engines search your website, they see keywords and like, okay, CarMax must be an expert on that, so we’re going to bring them into the organic search. Content, that’s another way we’ve increased our SEO, building relevant content that again when the search engines look at your website, it’s relevant to the questions that people are asking. So those are the levers that we pulled in and we will continue to pull to get the SEO or the organic search going for our customers.”

Tom Reedy

There’s not that much precision around recovery estimates

Yeah, let me answer your second question first, and that is, there’s not nearly that much precision around recoveries. As I mentioned I think a couple questions ago, we originate loans based on the knowledge that in the future we won’t know what recoveries are and we have a range of recoveries that we’ve experienced over time. And so we go into the equation contemplating a range of recoveries and hopefully it falls within that range. So there is really not much to be specific on that front.