Copart, Inc. Reports Q1 Earnings
1 December 1998
Copart Achieves Record First Quarter Profitability -- Earnings Per Share Increase 35%
BENICIA, Calif.--Dec. 1, 1998--Copart, Inc. today reported record profits for the period ended October 31, 1998.Copart earned a record $4,190,700 in the first quarter of fiscal 1999, generating a 35% increase in diluted earnings per share to $.31, on revenues of $30,193,100. The Company had net income of $3,140,100, or $.23 per diluted share, on revenues of $27,490,800 for the same period in fiscal 1998.
"We are pleased with the continuing momentum of revenues and profitability," said Willis J. Johnson, Copart's Chief Executive Officer. "The quarter was marked by strong performance from same stores and the successful integration of the nine facilities we acquired last year. It can take over 12 months for new facilities to make significant contributions to earnings. However, thanks in part to the advanced technology of our Copart Auction System, we produced nice growth in Operating Profits and in Percentage Incentive Program (PIP) vehicles processed at our new facilities. Company wide, 47% of cars sold this quarter were under PIP agreements, compared to 41% one year ago. The bottom line is that we achieved a 35% increase in diluted EPS."
Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company operates 60 facilities in 31 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
NOTE: Certain statements in this release may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors and/or factors affecting future results detailed in the Company's Securities and Exchange Commission reports, including variations in the Company's operating results, the inability to continue to increase service fees, the timing and size of acquisitions and facility openings, the loss of vehicle suppliers or buyers, the announcement of new vehicle supply agreements by the Company or its competitors, changes in regulations governing the Company's operations or its vehicle suppliers, environmental problems or litigation.
(Financial highlights follow)
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended October 31,
1998 1997
Consolidated Statements of Income Data
Revenues:
Salvage fees $ 25,224 $ 22,566
Transportation revenue 3,982 3,018
Purchased vehicle revenue 987 1,907
Total revenues 30,193 27,491
Operating costs and expenses:
Yard and fleet 18,580 18,037
General and administrative 2,976 2,708
Depreciation and amortization 2,290 1,931
Total operating expenses 23,846 22,676
Operating income 6,347 4,815
Other income (expense):
Interest income, net 288 196
Other income 235 137
Total other income 523 333
Income before income taxes 6,870 5,148
Income taxes 2,679 2,008
Net income $ 4,191 $ 3,140
Basic net income per share $ .32 $ .24
Weighted average shares outstanding 13,290 13,089
Diluted net income per share $ .31 $ .23
Weighted average shares and dilutive
potential common shares outstanding 13,611 13,460
Other Data
Gross proceeds (000) $147,206 $ 129,559
Number of auction facilities 60 55
October 31, July 31,
1998 1998
Consolidated Balance Sheet Data (000)
Cash & short-term investments $ 31,651 $ 28,796
Working capital $ 57,043 $ 54,829
Total assets $198,004 $190,942
Total debt $ 8,214 $ 8,425
Shareholders' equity $164,669 $160,183
