Copart Announces First Quarter Results; Revenues Increase 16%; Net Income Grows 15%
BENICIA, Calif.--Nov. 20, 2002--Copart, Inc. today reported results for the first quarter ended October 31, 2002.In the first quarter of fiscal 2003, Copart earned $.16 per diluted share from revenues of $83,494,900 and net income of $14,706,500. Compared to the same period one year ago, revenues increased by 16% and net income grew by 15%. In the first quarter of fiscal 2002, Copart earned $.15 per diluted share, on revenues of $72,282,500 and net income of $12,758,200.
"The quarter was in line with expectations," said A. Jayson Adair, Copart's President. "During the quarter same-store revenues grew by 12% and we saw continued growth in the results and use of Virtual bidding. Internet sales accounted for a record 37% of this quarter's gross proceeds including 16% of gross proceeds sold or pushed by Virtual bidding and 21% of gross proceeds sold or pushed by Proxy bidding. A year ago, only the Proxy method was available and Internet sales accounted for 22% of gross proceeds. More importantly, on a gross proceeds per vehicle basis, Virtual locations are outperforming facilities not yet running on the Virtual process. This means that, thanks to Virtual bidding, we are generating higher returns for our suppliers. As of today, we have 59 out of 99 facilities running Virtual bidding."
The Company is also making public that its diluted earnings per share forecast for the second quarter ending January 31, 2003 is approximately 16 cents. For the fiscal year ending July 31, 2003 the Company currently estimates that its annual earnings growth rate will be approximately 10% to 15%. The Company will update its earnings forecast as circumstances change.
On Thursday, November 21, 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 28, by calling (877) 660-6853 with account number 1628 and call ID 48044.
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 99 facilities in 40 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
NOTE: This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning our projected earnings and earnings growth rates. Our actual results could differ materially from those projected in these forward-looking statements as a result of a number of factors, many of which are outside our control. In particular, our inventory levels and revenues are highly dependent on weather conditions in the United States, and we experience seasonality in our business as a result of changing weather conditions and related fluctuations in vehicle accident rates. Weather conditions in the last twelve months have been generally mild, and continued mild weather could adversely affect our inventory levels, revenues, and operating results. Our historical revenue and earnings growth rates have been relatively high, reflecting both internal growth of our salvage business as well as growth through acquisitions. We may not be able to maintain these revenue and earnings growth rates as our business becomes larger. We are investing in new but related businesses such as public auto auctions, but revenues from these businesses have been modest relative to our total revenues, and we cannot predict what effect they will have on our future revenues or growth rates. We depend on a limited number of major suppliers of salvage vehicles. If we are unable to maintain these supply relationships, our revenues and operating results would be adversely affected. In addition, our revenues, operating results, financial condition, and growth rates are subject to numerous other risks, including our ability to complete and integrate new acquisitions, environmental and regulatory risks, and the other factors described under the caption "Factors that may effect future results" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We encourage investors to review these disclosures carefully.
Consolidated Statements of Income -- 1
(in thousands, except per share data)
Three Months Ended October 31,
2002 2001
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Revenues $ 83,495 $ 72,283
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Operating costs and expenses:
Yard and fleet 47,569 43,231
General and administrative 6,598 5,114
Depreciation and amortization 5,631 3,474
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Total operating expenses 59,798 51,819
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Operating income 23,697 20,464
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Other income:
Interest income, net 455 231
Other income 156 393
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Total other income 611 624
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Income before income taxes 24,308 21,088
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Income taxes 9,602 8,330
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Net income 14,706 $ 12,758
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Basic net income per share $ .16 $ .15
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Weighted average shares outstanding 92,249 83,184
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Diluted net income per share $ .16 $ .15
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Weighted average shares and dilutive
potential common shares outstanding 94,056 86,232
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Other Data
Gross proceeds 314,034 $296,261
Number of auction facilities 99 88
Consolidated Balance Sheets -- 2
(in thousands, except share data)
October 31, July 31,
2002 2002
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ASSETS
Current assets:
Cash and cash equivalents $125,679 $132,690
Accounts receivable, net 66,502 64,072
Vehicle pooling costs 20,774 20,014
Prepaid expenses and other assets 13,233 9,216
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Total current assets 226,188 225,992
Property and equipment, net 213,311 197,769
Intangibles and other assets, net 9,148 9,167
Goodwill 108,663 102,920
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Total assets $557,310 $535,848
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 330 $ 325
Accounts payable and accrued liabilities 32,236 31,893
Deferred revenue 8,613 8,352
Income taxes payable 7,501 2,632
Deferred income taxes 4,974 3,646
Other current liabilities 181 198
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Total current liabilities 53,835 47,046
Deferred income taxes 1,063 1,063
Long-term debt, less current portion -- 85
Other liabilities 1,424 1,437
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Total liabilities 56,322 49,631
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Commitments and contingencies
Shareholders' equity:
Common stock, no par value -
180,000,000 shares authorized;
92,264,859 and 92,239,859
shares issued and outstanding
at October 31, 2002 and
July 31, 2002, respectively 287,832 287,767
Retained earnings 213,156 198,450
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Total shareholders' equity 500,988 486,217
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Total liabilities and shareholders' equity $557,310 $535,848
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