Copart Achieves Record Second Quarter Profitability
28 February 2000
Copart Achieves Record Second Quarter Profitability; Revenues Increase 39%, Same Store Sales +33%, Net Income +37%
BENICIA, Calif.--Feb. 28, 2000--Copart, Inc. today reported results for the second quarter and first six months that ended January 31, 2000.Copart earned net income of $6,618,500 in the second quarter of fiscal 2000, generating a 33% increase in earnings per share to $.12 per diluted share on revenues of $44,406,400. The Company had net income of $4,821,600, or $.09 per diluted share, on revenues of $32,054,300 for the same period in fiscal 1999.
For the first six months, Copart earned net income of $12,930,900, or $.23 per diluted share, on revenues of $84,914,000. Copart reported net income of $9,012,300, or $.16 per diluted share on revenues of $62,247,400 for the same period in fiscal 1999.
The Company also reported quarterly Internet sales information. Approximately 14% of the second 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 $26.4 million, 32% higher than the $20.0 million reported for the first quarter that ended October 31, 1999. The $26.4 million consists of approximately $13.1 million of direct product sales and $13.3 million pushed by Internet bids. In the Company's previous quarter, Internet sales were $20.0 million consisting of approximately $9.9 million of direct product sales and an additional $10.1 million pushed.
"We are very pleased with the results for the quarter," said A. Jayson Adair, Copart's President. "Revenues and profits are up significantly over last year thanks to same store sales growth, up 33% from last year and the continued effect of the Internet. Our Suppliers and Buyers are choosing Copart because we have excellent systems and services. For example, over 25% of cars auctioned this quarter had at least one Internet bid."
A replay of Copart's conference call with analysts will be available to the public after 12pm Eastern on February 29 through 8pm Eastern on Friday March 3. To listen to the replay, dial (402) 220-2070.
Founded in 1982, Copart provides vehicle suppliers - primarily insurance companies - with a full menu 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 recovered stolen vehicles for which an insurance settlement with the vehicle's owner has been made. Operating 70 facilities in 34 states, Copart also provides services to other geographic areas through its national network of independent salvage vehicle suppliers.
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, slowdowns in the timing or reduced size of future 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.
Copart, Inc.
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended January 31,
2000 1999
Consolidated Statements of Income Data
Revenues:
Salvage fees $36,861 $27,133
Transportation revenue 4,851 3,938
Purchased vehicle revenue 2,694 983
Total revenues 44,406 32,054
Operating costs and expenses:
Yard and fleet 27,362 19,123
General and administrative 4,003 3,058
Depreciation and amortization 2,738 2,435
Total operating expenses 34,103 24,616
Operating income 10,303 7,438
Other income (expense):
Interest income, net 309 234
Other income 155 168
Total other income 464 402
Income before income taxes 10,767 7,840
Income taxes 4,148 3,018
Net income $ 6,619 $ 4,822
Basic net income per share $ .12 $ .09
Weighted average shares outstanding 53,729 53,304
Diluted net income per share $ .12 $ .09
Weighted average shares and dilutive
potential common shares outstanding 56,245 55,074
Other Data
Gross proceeds (000) $193,168 $136,140
Copart, Inc.
Financial Highlights - Continued
(in thousands, except per share and other data)
Six Months Ended January 31,
2000 1999
Consolidated Statements of Income Data
Revenues:
Salvage fees $70,292 $52,357
Transportation revenue 9,484 7,920
Purchased vehicle revenue 5,138 1,970
Total revenues 84,914 62,247
Operating costs and expenses:
Yard and fleet 51,999 37,703
General and administrative 7,308 6,034
Depreciation and amortization 5,491 4,725
Total operating expenses 64,798 48,462
Operating income 20,116 13,785
Other income (expense):
Interest income, net 576 522
Other income 339 403
Total other income 915 925
Income before income taxes 21,031 14,710
Income taxes 8,100 5,698
Net income $12,931 $ 9,012
Basic net income per share $ .24 $ .17
Weighted average shares outstanding 53,712 53,232
Diluted net income per share $ .23 $ .16
Weighted average shares and dilutive
potential common shares outstanding 56,081 54,784
Other Data
Gross proceeds (000) $373,953 $283,346
Number of auction facilities 70 62
Jan. 31, 2000 July 31, 1999
Consolidated Balance Sheet Data (000)
Cash & short-term investments $ 15,339 $ 37,048
Working capital $ 56,308 $ 64,647
Total assets $237,509 $218,677
Total debt $ 7,625 $ 7,820
Shareholders' equity $197,461 $183,982
