Copart Achieves Record Second Quarter Profitability; Revenues Grow 26%, Organic Sales +20%, Net Income +34%
BENICIA, Calif.--Feb. 25, 2002--Copart, Inc. today reported results for the second fiscal quarter and first six months that ended January 31, 2002.Copart earned net income of $12,495,200 in the second quarter of fiscal 2002 on revenues of $71,382,300. This quarter's net income is 34% higher than the $9,349,200 earned in the same period of fiscal 2001 on revenues of $56,638,200. Fully diluted earnings per share (EPS) for the quarter was $.14 compared to $.11 last year.
For the first six months of fiscal 2002, Copart earned net income of $25,253,700, or $.28 per diluted share, on revenues of $143,664,900. Copart reported net income of $18,268,400, or $.22 per diluted share, on revenues of $113,777,600 for the same period in fiscal 2001.
"We are pleased with the quarter's results," said A. Jayson Adair, Copart's President. "During the second quarter we had 26% revenue growth and 34% net income growth compared to the same quarter last year. On the revenue side we continued to see strong performance from existing markets. Total organic revenues, which are revenues from same-stores plus new stores in existing markets, grew by 20%. Revenues from acquired facilities contributed an additional 6% of revenue growth."
As discussed last quarter, the company has adopted the provisions of Financial Accounting Standards Board (FASB) No.142 regarding goodwill amortization. Accordingly, the company no longer amortizes goodwill 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 $667,100. 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 $586,900 and earnings per basic and diluted share would have changed from the reported $.11 to $.12.
On Tuesday, February 26, 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 on vcall.com at http://www.vcall.com/EventPage.asp?ID=80808. A replay of the call will be available through March 2, by calling (888) 562-4494.
The Company is also making public its diluted earnings per share forecasts for the third quarter and the current fiscal year. Earnings for the third quarter ending April 30, 2002, are expected to be approximately $.17 cents per share. For the fiscal year ending July 31, 2002, the current forecast is for EPS of approximately $.63.
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 88 facilities in 39 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
Note to Editors: 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.
(Financial highlights follow)
Copart, Inc.
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended January 31,
2002 2001
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Consolidated Statements of Income Data
Revenues $ 71,382 $ 56,638
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Operating costs and expenses:
Yard and fleet 43,132 34,123
General and administrative 5,404 4,234
Depreciation and amortization 3,687 3,460
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Total operating expenses 52,223 41,817
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Operating income 19,159 14,821
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Other income (expense):
Interest income, net 503 311
Other income 411 321
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Total other income 914 632
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Income before income taxes 20,073 15,453
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Income taxes 7,578 6,104
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Net income $ 12,495 $ 9,349
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Basic net income per share $ .14 $ .11
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Weighted average shares outstanding 89,125 82,070
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Diluted net income per share $ .14 $ .11
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Weighted average shares and dilutive
potential common shares outstanding 92,497 84,640
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Other Data
Gross proceeds (000) $ 269,552 $ 232,146
Copart, Inc.
Financial Highlights - Continued
(in thousands, except per share and other data)
Six Months Ended January 31,
2002 2001
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Consolidated Statements of Income Data
Revenues $ 143,665 $ 113,778
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Operating costs and expenses:
Yard and fleet 86,364 69,480
General and administrative 10,517 8,700
Depreciation and amortization 7,161 6,830
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Total operating expenses 104,042 85,010
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Operating income 39,623 28,768
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Other income (expense):
Interest income, net 733 526
Other income 805 782
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Total other income 1,538 1,308
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Income before income taxes 41,161 30,076
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Income taxes 15,907 11,808
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Net income $ 25,254 $ 18,268
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Basic net income per share $ .29 $ .22
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Weighted average shares outstanding 86,155 81,851
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Diluted net income per share $ .28 $ .22
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Weighted average shares and dilutive
potential common shares outstanding 89,347 84,387
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Other Data
Gross proceeds (000) $ 565,813 $ 481,261
Number of auction facilities 88 79
January 31, 2002 July 31, 2001
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Consolidated Balance Sheet Data (000)
Cash & cash equivalents $ 123,441 $ 15,245
Working capital $ 185,236 $ 63,774
Total assets $ 484,756 $ 315,064
Total debt $ 563 $ 712
Shareholders' equity $ 433,599 $ 269,152