Copart Reports Second Quarter Results Revenues
BENICIA, Calif.--Feb. 18, 2003--Copart, Inc. today reported results for the second fiscal quarter and first six months that ended January 31, 2003. Copart earned net income of $13,756,500 in the second quarter of fiscal 2003 on revenues of $82,783,400. This quarter's net income is 10% higher than the $12,495,200 earned in the same period of fiscal 2002 on revenues of $71,382,300. Fully diluted earnings per share (EPS) for the quarter was $.15 compared to $.14 last year, an increase of 7%.For the first six months of fiscal 2003, Copart earned net income of $28,463,000, or $.30 per diluted share, on revenues of $166,278,300. Copart reported net income of $25,253,700, or $.28 per diluted share, on revenues of $143,664,900 for the same period in fiscal 2002.
"The quarter continued to show good results from same-stores and Virtual Bidding," said A. Jayson Adair, Copart's President. "During the quarter same-store revenues grew by 10% and we saw continued growth in the results and use of Virtual Bidding. Internet sales accounted for a record 44% of this quarter's gross proceeds including 24% of gross proceeds sold or pushed by Virtual Bidding and 20% of gross proceeds sold or pushed by Proxy Bidding. In the last three months, the percent of gross proceeds from vehicles sold or pushed by Virtual Bidding has grown from 16% to 24%. As of today, we have 68 out of 101 facilities running Virtual Bidding."
On Wednesday, February 19, 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=83229. A replay of the call will be available through February 26 by calling 877/660-6853 with account number 1628 and call ID 57916.
Copart has lowered its outlook for earnings for the remainder of the fiscal year. The company now expects fully diluted EPS for the third quarter ending April 30, 2003, to be in the range of $.15 to $.16. For the fourth quarter ending on July 31, 2003, the company currently estimates that its EPS will be in the range of $.14 to $.15. The lowering of guidance for the last half of the year is due to forecasted revenues being less than expected and growth in operating expenses, particularly depreciation and amortization.
The company has invested approximately $61 million in capital spending in the last 6 months to improve and acquire facilities. This current and prior year growth in capital spending is driving the increase in depreciation and amortization, which on a fiscal-year-to-date basis is over 67% higher than one year ago. Operating income plus depreciation and amortization totaled $57.7 million for the first six months of fiscal 2003 versus $46.8 million in the same period one year ago.
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 101 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. 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, due to competitive or other factors, 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.
Copart, Inc.
Consolidated Statements of Income -- 1
(Dollars in thousands, except per share data)
Three Months Ended January 31,
2003 2002
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Revenues $ 82,783 $ 71,382
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Operating costs and expenses:
Yard and fleet 47,945 43,132
General and administrative 6,475 5,404
Depreciation and amortization 6,363 3,687
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Total operating expenses 60,783 52,223
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Operating income 22,000 19,159
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Other income:
Interest income, net 482 503
Other income 33 411
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Total other income 515 914
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Income before income taxes 22,515 20,073
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Income taxes 8,758 7,578
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Net income $ 13,757 $ 12,495
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Basic net income per share $ .15 $ .14
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Weighted average shares outstanding 92,366 89,125
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Diluted net income per share $ .15 $ .14
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Weighted average shares and dilutive
potential common shares outstanding 94,088 92,497
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Other Data
Gross proceeds $ 301,888 $ 269,552
Copart, Inc.
Consolidated Statements of Income -- 2
(Dollars in thousands, except per share data)
Six Months Ended January 31,
2003 2002
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Revenues $ 166,278 $ 143,665
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Operating costs and expenses:
Yard and fleet 95,513 86,364
General and administrative 13,074 10,517
Depreciation and amortization 11,994 7,161
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Total operating expenses 120,581 104,042
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Operating income 45,697 39,623
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Other income:
Interest income, net 937 733
Other income 189 805
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Total other income 1,126 1,538
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Income before income taxes 46,823 41,161
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Income taxes 18,360 15,907
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Net income $ 28,463 $ 25,254
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Basic net income per share $ .31 $ .29
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Weighted average shares outstanding 92,307 86,155
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Diluted net income per share $ .30 $ .28
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Weighted average shares and dilutive
potential common shares outstanding 94,044 89,347
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Other Data
Gross proceeds $ 615,922 $ 565,813
Number of auction facilities 101 88
Copart, Inc.
Consolidated Balance Sheets -- 3
(Dollars in thousands)
January 31, July 31,
2003 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 94,004 $ 132,690
Accounts receivable, net 83,342 64,072
Vehicle pooling costs 23,954 20,014
Prepaid expenses and other assets 12,222 9,216
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Total current assets 213,522 225,992
Property and equipment, net 240,728 197,769
Intangibles and other assets, net 8,710 9,167
Goodwill 108,663 102,920
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Total assets $ 571,623 $ 535,848
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 256 $ 325
Accounts payable and accrued liabilities 33,506 31,893
Deferred revenue 10,137 8,352
Income taxes payable 2,548 2,632
Deferred income taxes 6,165 3,646
Other current liabilities 181 198
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Total current liabilities 52,793 47,046
Deferred income taxes 1,063 1,063
Long-term debt, less current portion 19 85
Other liabilities 1,410 1,437
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Total liabilities 55,285 49,631
---------- -----------
Commitments and contingencies
Shareholders' equity:
Common stock, no par value - 180,000,000
shares authorized; 92,446,021 and
92,239,859 shares issued and
outstanding at January 31, 2003 and
July 31, 2002, respectively 289,425 287,767
Retained earnings 226,913 198,450
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Total shareholders' equity 516,338 486,217
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Total liabilities and
shareholders' equity $ 571,623 $ 535,848
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