Copart Achieves Record Second Quarter Profitability
BENICIA, Calif.--Feb. 26, 2001--Copart, Inc. today reported results for the second fiscal quarter and first six months that ended January 31, 2001.Copart earned net income of $9,349,200 in the second quarter of fiscal 2001, generating a 42% increase in earnings per share to $.17 per diluted share on revenues of $56,638,200. The Company had net income of $6,618,500, or $.12 per diluted share, on revenues of $44,406,400 for the same period in fiscal 2000.
For the first six months of fiscal 2001, Copart earned net income of $18,268,400, or $.32 per diluted share, on revenues of $113,777,600. Copart reported net income of $12,930,900, or $.23 per diluted share on revenues of $84,914,000 for the same period in fiscal 2000.
The Company also reported quarterly Internet sales information. Approximately 21% 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 $47.8 million, 81% higher than the second quarter of fiscal 2000. The $47.8 million consists of approximately $24.2 million of product sold and $23.6 million pushed by Internet bids. In the second quarter one year ago Internet sales were $26.4 million, 14% of gross proceeds, consisting of approximately $13.1 million of product sold and an additional $13.3 million pushed.
"We are very pleased with the results for the quarter," said A. Jayson Adair, Copart's President. "Revenues and profits continue on a steady growth track thanks to innovative services that are only available at Copart. For example, the Future Bidding product that we announced last quarter is now being widely used by our buyers with positive results. Prior to Future Bidding, on any given day buyers could bid on approximately 20,000 cars that had been assigned to a specific sale date. Now our buyers can bid on over 40,000 cars: 20,000 assigned a sale date plus 20,000 more completing title processing. The result has been more Internet sales and more buyers getting the cars they need. As a result, Internet sales climbed this quarter to 21% of gross proceeds up from 18% just three months ago."
On Tuesday, February 27, at 11 a.m. Eastern time, Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live at vcall.com. A replay of the call will be available through March 2, by calling (402) 998-1238. Copart's current investor presentation slides can be found at Copart.com/Invest/Presentation.htm
The Company is also making public its diluted earnings per share forecasts for the third quarter and the current fiscal year. For the third quarter ending April 30, 2001, earnings are currently forecasted to be between 18 and 19 cents. For the fiscal year ending July 31, 2001, the current forecast is for EPS between 68 and 70 cents.
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 79 facilities in 36 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
Copart, Inc. Financial Highlights (in thousands, except per share and other data) Three Months Ended January 31, 2001 2000 Consolidated Statements of Income Data Revenues $ 56,638 $ 44,406 Operating costs and expenses: Yard and fleet 34,123 27,362 General and administrative 4,234 4,003 Depreciation and amortization 3,460 2,738 Total operating expenses 41,817 34,103 Operating income 14,821 10,303 Other income (expense): Interest income, net 311 309 Other income 321 155 Total other income 632 464 Income before income taxes 15,453 10,767 Income taxes 6,104 4,148 Net income $ 9,349 $ 6,619 Basic net income per share $ .17 $ .12 Weighted average shares outstanding 54,713 53,729 Diluted net income per share $ .17 $ .12 Weighted average shares and dilutive potential common shares outstanding 56,427 56,245 Other Data Gross proceeds (000) $ 232,146 $ 193,168 Copart, Inc. Financial Highlights - Continued (in thousands, except per share and other data) Six Months Ended January 31, 2001 2000 Consolidated Statements of Income Data Revenues $ 113,778 $ 84,914 Operating costs and expenses: Yard and fleet 69,480 51,999 General and administrative 8,700 7,308 Depreciation and amortization 6,830 5,491 Total operating expenses 85,010 64,798 Operating income 28,768 20,116 Other income (expense): Interest income, net 526 576 Other income 782 339 Total other income 1,308 915 Income before income taxes 30,076 21,031 Income taxes 11,808 8,100 Net income $ 18,268 $ 12,931 Basic net income per share $ .33 $ .24 Weighted average shares outstanding 54,634 53,712 Diluted net income per share $ .32 $ .23 Weighted average shares and dilutive potential common shares outstanding 56,258 56,081 Other Data Gross proceeds (000) $481,261 $373,953 Number of auction facilities 79 70 January 31, 2001 July 31, 2000 Consolidated Balance Sheet Data (000) Cash & short-term investments $ 2,522 $ 12,165 Working capital $ 56,990 $ 54,042 Total assets $ 292,697 $ 262,324 Total debt $ 8,374 $ 8,555 Shareholders' equity $ 240,867 $ 219,890