Copart Reports Second Quarter Financial Results
FAIRFIELD, Calif.--Feb. 2, 20044, 2004--Copart, Inc. today reported results for the second quarter ended January 31, 2004.Copart earned net income of $17,367,800 in the second quarter of fiscal 2004 on revenues of $92,634,900. This quarter's net income is 26% higher than the $13,756,500 earned in the same period of fiscal 2003 on revenues of $82,783,400. Fully diluted earnings per share (EPS) for the quarter was $.19 compared to $.15 last year, an increase of 27%.
For the first six months of fiscal 2004, Copart earned net income of $32,609,000, or $.36 per diluted share, on revenues of $184,101,500. Copart reported net income of $28,463,000, or $.30 per diluted share, on revenues of $166,278,300 for the same period in fiscal 2003. Fully diluted earnings per share for the six months increased 20%.
The increase in earnings per share for the three and six months ended January 31, 2004 was positively impacted by the pre-tax gain on the sale of part of our fleet of vehicles. The Company recognized a gain of $1,948,000 on the sale of fleet vehicles. The disposal of the remaining fleet of vehicles is not expected to have a material effect on the Company's results of operations or financial position.
"We were able to accomplish two important tasks this quarter," said A. Jayson Adair, Copart's President. "All of our salvage yards were converted to VB2 by December 1, 2003 and we transitioned from a primarily owned transport fleet to an owner operator model. We are pleased with the results we are seeing with VB2 as it continues to exceed our expectations. We are also pleased that not only are 100% of Copart vehicles sold over the Internet, but currently over 40% of the vehicles sold are to buyers out of state, including 17% to international buyers."
On Wednesday, February 25, 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 March 1 by calling (877) 660-6853 with account number 1628 and call ID 95809.
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 105 facilities in the United States and Canada. 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 the deployment of our VB2 Internet Virtual Auction technologies. 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 VB2 Internet auction model may not be as successful as we currently anticipate. The financial impact of our decision to buy out truck leases will depend on our success in reselling purchased trucks at favorable prices and contracting for trucking services at favorable 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.
Copart, Inc.
Consolidated Statements of Income -- 1
(Dollars in thousands, except per share data)
Three Months Ended
January 31,
2004 2003
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Revenues $92,635 $82,783
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Operating costs and expenses:
Yard and fleet 50,142 48,197
General and administrative 8,591 6,476
Depreciation and amortization 8,082 6,363
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Total operating expenses 66,815 61,036
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Operating income 25,820 21,747
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Other income:
Interest income, net 293 482
Gain on sale of fleet vehicles 1,948 44
Other income 647 242
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Total other income 2,888 768
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Income before income taxes 28,708 22,515
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Income taxes 11,340 8,758
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Net income $17,368 $13,757
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Basic net income per share $ .20 $ .15
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Weighted average shares outstanding 89,024 92,366
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Diluted net income per share $ .19 $ .15
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Weighted average shares and dilutive
potential common shares outstanding 91,485 94,154
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Copart, Inc.
Consolidated Statements of Income -- 2
(Dollars in thousands, except per share data)
Six Months Ended
January 31,
2004 2003
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Revenues $184,101 $166,278
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Operating costs and expenses:
Yard and fleet 101,804 96,076
General and administrative 16,709 13,074
Depreciation and amortization 15,481 11,994
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Total operating expenses 133,994 121,144
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Operating income 50,107 45,134
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Other income:
Interest income, net 587 937
Gain on sale of fleet vehicles 1,948 171
Other income 1,258 581
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Total other income 3,793 1,689
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Income before income taxes 53,900 46,823
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Income taxes 21,291 18,360
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Net income $ 32,609 $ 28,463
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Basic net income per share $ .37 $ .31
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Weighted average shares outstanding 89,258 92,307
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Diluted net income per share $ .36 $ .30
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Weighted average shares and dilutive
potential common shares outstanding 91,322 94,135
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Other Data
Number of auction facilities 105 101
Copart, Inc.
Consolidated Balance Sheets -- 3
(in thousands, except share data)
January 31, July 31,
2004 2003
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ASSETS
Current assets:
Cash and cash equivalents $ 105,579 $ 116,746
Accounts receivable, net 94,916 71,553
Vehicle pooling costs 28,706 23,381
Income taxes receivable - 4,018
Prepaid expenses and other assets 10,665 10,068
Equipment held for sale 10,040 -
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Total current assets 249,906 225,766
Property and equipment, net 253,831 244,361
Intangibles and other assets, net 5,928 7,859
Goodwill 109,749 109,114
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Total assets $ 619,414 $ 587,100
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 7 $ 91
Accounts payable and accrued liabilities 39,941 38,309
Deferred revenue 11,882 9,708
Income taxes payable 680 -
Deferred income taxes 7,952 5,902
Other current liabilities 163 174
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Total current liabilities 60,625 54,184
Deferred income taxes 8,014 6,014
Long-term debt, less current portion 13 16
Other liabilities 1,202 1,247
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Total liabilities 69,854 61,461
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Commitments and contingencies
Shareholders' equity:
Common stock, no par value - 180,000,000
shares authorized; 89,120,110 and
89,883,412 shares issued and
outstanding at January 31, 2004 and
July 31, 2003, respectively 261,293 269,968
Accumulated other comprehensive loss (14) -
Retained earnings 288,281 255,671
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Total shareholders' equity 549,560 525,639
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Total liabilities and shareholders'
equity $ 619,414 $ 587,100
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