Copart Reports Record First Quarter Results
30 November 1999
Copart Reports Record First Quarter Results; Earnings per Share Rise 53%, Same Store Sales +32%; Internet sales +50%
BENICIA, Calif.--Nov. 29, 1999--Copart, Inc. today reported record profits for its first fiscal quarter ended October 31, 1999.Copart earned net income of $6,312,600 or $.23 per diluted share in the first quarter of fiscal 2000, generating a 53% increase in earnings per share over the same period in fiscal 1999, on revenues of $40,507,600, an increase of over 34% over the same period in fiscal 1999. The Company had net income of $4,190,700, or $.15 per diluted share, on revenues of $30,193,100 for the same period in fiscal 1999.
The Company also reported quarterly Internet sales information. Approximately 11% of the first quarter's gross proceeds came from the sale of cars sold to or whose price was "pushed" by Internet bidders. Total Internet sales for the quarter were $20 million, 50% higher than the $13.3 million reported in the fourth quarter of 1999. The $20 million consists of approximately $9.9 million of direct product sales and $10.1 million pushed by Internet bids. In the Company's previous quarter, Internet sales were $13.3 million consisting of approximately $6.4 million of direct product sales and an additional $6.9 million pushed.
"We are very pleased with the results for the quarter", said A. Jayson Adair, Copart's President. "For the last two quarters, Copart's earnings per share has grown by over 50% per quarter compared to the same period in the prior year. Our growth is driven by a number of important factors such as same store revenue growth, which was 32% this quarter, and expanding Internet sales. Since we began Internet bidding last year, we have seen quarterly Internet sales grow from 2% of proceeds to 11% in just four quarters."
A replay of Copart's conference call with analysts will be available to the public after 1pm Eastern on November 30 through 6pm Eastern on Friday December 3. To listen to the replay, dial (402) 998-1010.
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 68 facilities in 34 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
(Financial highlights follow)
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
(in thousands, except per share and other data)
Three Months Ended October 31,
1999 1998
Consolidated Statements of Income Data
Revenues:
Salvage fees $ 33,431 $ 25,224
Transportation revenue 4,633 3,982
Purchased vehicle revenue 2,444 987
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Total revenues 40,508 30,193
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Operating costs and expenses:
Yard and fleet 24,637 18,580
General and administrative 3,306 2,976
Depreciation and amortization 2,753 2,290
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Total operating expenses 30,696 23,846
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Operating income 9,812 6,347
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Other income (expense):
Interest income, net 268 288
Other income 184 235
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Total other income 452 523
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Income before income taxes 10,264 6,870
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Income taxes 3,952 2,679
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Net income $ 6,312 $ 4,191
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Basic net income per share $ .24 $ .16
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Weighted average shares outstanding 26,848 26,581
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Diluted net income per share $ .23 $ .15
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Weighted average shares and dilutive
potential common shares
outstanding 27,945 27,222
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Other Data
Gross proceeds (000) $180,785 $147,206
Number of auction facilities 65 60
October 31, 1999 July 31, 1999
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Consolidated Balance Sheet Data (000)
Cash & cash equivalents $ 33,035 $ 37,048
Working capital $ 62,143 $ 64,647
Total assets $ 229,455 $ 218,677
Total debt $ 7,682 $ 7,820
Shareholders' equity $ 190,325 $ 183,982
