Copart Achieves Record Third Quarter Profitability
BENICIA, Calif.--May 21, 2002--Copart, Inc. today reported results for the third fiscal quarter and first nine months that ended April 30, 2002.Copart earned net income of $16,600,400 in the third quarter of fiscal 2002, generating a 38% increase in earnings per share to $.18 per diluted share on revenues of $90,158,100, compared to net income of $11,485,200, or $.13 per diluted share, on revenues of $71,480,600 for the same period in fiscal 2001.
For the first nine months of fiscal 2002, Copart earned net income of $41,854,000, or $.46 per diluted share, on revenues of $233,823,100. Copart reported net income of $29,753,600, or $.35 per diluted share, on revenues of $185,258,300 for the same period in fiscal 2001.
"We are pleased with our financial and Internet results," said A. Jayson Adair, Copart's President. "During the third quarter we had 26% revenue growth and 45% 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 21%. Revenues from acquired facilities contributed an additional 5% of revenue growth. On the Internet side we started our Offsite Sales program and expanded Virtual Bidding to 27 locations. Gross proceeds pushed or sold through Virtual bidding grew from $1.1 million in our second quarter to $15.2 million in the current quarter."
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 $666,800. 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 $598,800 and earnings per basic share would have remained unchanged from the reported $.14 and earnings per diluted share would have changed from the reported $.13 to $.14.
The Company is also making public its diluted earnings per share forecasts for the fourth quarter and the next fiscal year. For the fourth quarter ending July 31, 2002, earnings are currently forecasted to be approximately 17 cents. For the next fiscal year ending July 31, 2003, Copart is forecasting earnings growth consistent with the company's long-term goal of 20% to 22% annual earnings growth.
On Wednesday, May 22, 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 May 29, by calling (800) 839-1195.
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 91 facilities in 40 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
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 most recent Annual report on Form 10-K, and all reports on Forms 10-Q and 8-K since the date of such report of Form 10-K, such as: the dependence on a limited number of major suppliers of salvage vehicles; competitive factors; the inability to continue growing, or maintaining the Company's growth rate, by the acquisition and development of new facilities or through the continued growth of existing 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 or salvage facilities; 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 affecting vehicle accident rates and auction attendance; 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.
Copart, Inc.
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended April 30,
2002 2001
Consolidated Statements of Income Data
Revenues $ 90,158 $ 71,481
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Operating costs and expenses:
Yard and fleet 53,014 43,210
General and administrative 6,892 5,588
Depreciation and amortization 4,241 3,603
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Total operating expenses 64,147 52,401
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Operating income 26,011 19,080
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Other income (expense):
Interest income, net 484 136
Other income 497 54
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Total other income 981 190
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Income before income taxes 26,992 19,270
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Income taxes 10,392 7,785
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Net income $ 16,600 $ 11,485
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Basic net income per share $ .18 $ .14
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Weighted average shares outstanding 90,831 82,610
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Diluted net income per share $ .18 $ .13
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Weighted average shares and dilutive
potential common shares outstanding 93,516 85,353
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Other Data
Gross proceeds (000) $ 337,308 $ 293,664
Copart, Inc.
Financial Highlights - Continued
(in thousands, except per share and other data)
Nine Months Ended April 30,
2002 2001
Consolidated Statements of Income Data
Revenues $ 233,823 $ 185,258
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Operating costs and expenses:
Yard and fleet 139,378 112,689
General and administrative 17,410 14,288
Depreciation and amortization 11,401 10,433
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Total operating expenses 168,189 137,410
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Operating income 65,634 47,848
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Other income (expense):
Interest income, net 1,218 662
Other income 1,301 837
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Total other income 2,519 1,499
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Income before income taxes 68,153 49,347
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Income taxes 26,299 19,593
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Net income $ 41,854 $ 29,754
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Basic net income per share $ .48 $ .36
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Weighted average shares outstanding 87,661 82,166
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Diluted net income per share $ .46 $ .35
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Weighted average shares and dilutive
potential common shares outstanding 90,229 84,591
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Other Data
Gross proceeds (000) $ 903,121 $ 774,925
Number of auction facilities 91 82
April 30, 2002 July 31, 2001
Consolidated Balance Sheet Data (000)
Cash & cash equivalents $ 144,021 $ 15,245
Working capital $ 183,186 $ 63,774
Total assets $ 509,842 $ 315,064
Total debt $ 487 $ 712
Shareholders' equity $ 452,667 $ 269,152