Copart Reports Record First Quarter Results
Business Editors
BENICIA, Calif.--Nov. 26, 2001--Copart, Inc.
today reported record profits for its first fiscal
quarter ended October 31, 2001.
Copart earned net income of $12,758,200 or $.22 per diluted share
in the first quarter of fiscal 2002, generating a 38% increase in
earnings per share over the same period in fiscal 2001, on revenues of
$72,282,500. The Company had net income of $8,919,200, or $.16 per
diluted share, on revenues of $57,139,400 for the same period in
fiscal 2001.
"We are very pleased with the quarter's results," said A. Jayson
Adair, Copart's President. "During the quarter we had 27% revenue
growth and 38% earnings per share growth. On the revenue side we
continued to see strong performance from existing markets. Same-store
revenue growth for the quarter was 17% and total organic growth was
21%. Organic growth is same-store growth plus revenues from new stores
opened not acquired. Acquired revenues contributed an additional 6% of
revenue growth."
The company has adopted the provisions of Financial Accounting
Standards Board (FASB) No.142 regarding goodwill amortization.
Accordingly, the company will no longer amortize goodwill resulting
from business acquisitions. The current effect of this accounting
change is to eliminate approximately $2.6 million of annual goodwill
amortization. The effect on the current quarter was a reduction of
amortization expense by approximately $645,000. On a pro forma basis,
if Copart had applied FASB No. 142 during the corresponding quarter a
year ago, amortization expense would be reduced by approximately
$583,000 and earnings per basic and diluted share would not have
changed from the reported $.16.
During November 2001 Copart completed a follow-on offering of 4.6
million shares at $29 per share. All of the shares were sold by Copart
and the offering raised $126.73 million after underwriting discounts.
On Tuesday, November 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 November 30, by calling (800) 677-1579.
The Company is also making public its diluted earnings per share
forecasts for the second quarter and the current fiscal year. For the
second quarter ending January 31, 2002, earnings are currently
forecasted to be approximately $.21. For the fiscal year ending July
31, 2002, the current forecast is for EPS of approximately $.95. The
new guidance reflects adoption of the new accounting treatment for
goodwill amortization discussed above.
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 vehicle
dismantlers, rebuilders, repair licensees 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 88 facilities in 39 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 are 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, such as: the dependence on a limited
number of suppliers; competitive factors; the inability to continue
growing by the acquisition and development of new facilities; the
inability to manage growth; limited experience in the public auction
business; fluctuations in the availability and/or prices of vehicles;
variations in vehicle accident rates; buyer attendance at auctions;
delays or changes in state title processing; changes in state or
federal laws affecting salvage vehicles; the timing and size of
acquisitions; the announcement of new vehicle supply agreements by us
or our competitors; the severity of weather and seasonal weather
patterns; the amount and timing of operating costs and capital
expenditures; government regulation; environmental problems; the loss
of key management; and, difficulties in managing our trucking fleet.
-0-
Copart, Inc.
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended October 31,
2001 2000
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Consolidated Statements of Income Data
Revenues $ 72,283 $ 57,139
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Operating costs and expenses:
Yard and fleet 43,231 35,356
General and administrative 5,114 4,466
Depreciation and amortization 3,474 3,370
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Total operating expenses 51,819 43,192
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Operating income 20,464 13,947
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Other income (expense):
Interest income, net 231 215
Other income 393 461
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Total other income 624 676
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Income before income taxes 21,088 14,623
-------------------------
Income taxes 8,330 5,704
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Net income $ 12,758 $ 8,919
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Basic net income per share $ .23 $ .16
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Weighted average shares outstanding 55,456 54,555
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Diluted net income per share $ .22 $ .16
=========================
Weighted average shares and dilutive
potential common shares outstanding 57,488 56,453
=========================
Other Data
Gross proceeds (000) $296,261 $249,115
Number of auction facilities 88 77
October 31, 2001 July 31, 2001
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Consolidated Balance Sheet Data (000)
Cash & cash equivalents $ 13,349 $ 15,245
Working capital $ 67,244 $ 69,411
Total assets $346,000 $316,635
Total debt $ 638 $ 712
Shareholders' equity $290,896 $269,152
*T
