Copart Reports Third Quarter Financial Results
FAIRFIELD, Calif.--May 25, 2004--Copart, Inc. today reported results for the third quarter ended April 30, 2004.In the third quarter of fiscal 2004 Copart earned net income of $24,964,400 on revenues of $116,618,400. In the same period last year the company earned $15,422,800 on revenues of $93,928,700. These represent increases in net income and revenue of 62% and 24%, respectively. Fully diluted earnings per share (EPS) for the quarter was $.27 compared to $.17 last year, an increase of 59%.
For the first nine months of fiscal 2004 Copart earned net income of $57,771,100 on revenues of $300,720,000. In the same period last year the company earned $43,885,800 on revenues of $260,207,000. These represent increases in net income and revenue of 32% and 16%, respectively. Fully diluted earnings per share for the nine months was $.63 compared to $.47 last year, an increase of 34%.
Same store revenues were up 23% and 14% over the same quarter and the nine-month period last year, respectively.
"This quarter's results reflect the significance of our new VB2 technology to our industry. Returns to sellers of salvage vehicles, measured as a ratio of gross proceeds to the actual cash value provided by the sellers, grew by almost 9% over the previous quarter and 17% over the same quarter last year," said A. Jayson Adair, Copart's President.
"In addition, 53% of total auction proceeds were generated by sales to buyers outside the state in which the vehicle was located, with 36% going outside the state and 17% going outside the country."
"At an industry advisory board held by Copart in April, insurance industry representatives acknowledged the effectiveness of VB2 and expressed appreciation for Copart's vision," added Adair. "We are pleased to provide this value to our sellers and we will continue to lead our industry through innovation and technology to the benefit of all of our constituents; sellers, buyers, employees and shareholders."
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.
Copart, Inc. Consolidated Statements of Income -- 1 (Dollars in thousands, except per share data) Three Months Ended April 30, 2004 2003 ---------------------------------------------------------------------- Revenues $ 116,618 $ 93,929 ------------ ------------ Operating costs and expenses: Yard and fleet 58,053 55,012 General and administrative 10,515 7,910 Depreciation and amortization 7,652 6,398 ------------ ------------ Total operating expenses 76,220 69,320 ------------ ------------ Operating income 40,398 24,609 ------------ ------------ Other income: Interest income, net 338 335 (Loss) gain on sale of fleet equipment (773) 39 Other income 591 498 ------------ ------------ Total other income 156 872 ------------ ------------ Income before income taxes 40,554 25,481 ------------ ------------ Income taxes 15,590 10,058 ------------ ------------ Net income $ 24,964 $ 15,423 ============ ============ Basic net income per share $ .28 $ .17 ============ ============ Weighted average shares outstanding 89,373 91,195 ============ ============ Diluted net income per share $ .27 $ .17 ============ ============ Weighted average shares and dilutive potential common shares outstanding 91,974 92,599 ============ ============ Copart, Inc. Consolidated Statements of Income -- 2 (Dollars in thousands, except per share data) Nine Months Ended April 30, 2004 2003 ---------------------------------------------------------------------- Revenues $ 300,720 $ 260,207 ------------ ------------ Operating costs and expenses: Yard and fleet 159,659 151,089 General and administrative 27,224 20,983 Depreciation and amortization 23,133 18,392 ------------ ------------ Total operating expenses 210,016 190,464 ------------ ------------ Operating income 90,704 69,743 ------------ ------------ Other income: Interest income, net 924 1,272 Gain on sale of fleet equipment 1,155 210 Other income 1,869 1,079 ------------ ------------ Total other income 3,948 2,561 ------------ ------------ Income before income taxes 94,652 72,304 ------------ ------------ Income taxes 36,881 28,418 ------------ ------------ Net income $ 57,771 $ 43,886 ============ ============ Basic net income per share $ .65 $ .48 ============ ============ Weighted average shares outstanding 89,296 91,945 ============ ============ Diluted net income per share $ .63 $ .47 ============ ============ Weighted average shares and dilutive potential common shares outstanding 91,236 93,586 ============ ============ Other Data Number of auction facilities 105 102 Copart, Inc. Consolidated Balance Sheets -- 3 (in thousands, except share data) April 30, July 31, 2004 2003 ---------------------------------------------------------------------- ASSETS ------ Current assets: Cash and cash equivalents $165,639 $116,746 Accounts receivable, net 84,391 71,553 Vehicle pooling costs 24,497 23,381 Income taxes receivable - 4,018 Prepaid expenses and other assets 10,861 10,068 Equipment held for sale 6,564 - -------- -------- Total current assets 291,952 225,766 Property and equipment, net 251,600 244,361 Intangibles and other assets, net 5,489 7,859 Goodwill 109,749 109,114 -------- -------- Total assets $658,790 $587,100 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current liabilities: Current portion of long-term debt $ 7 $ 91 Accounts payable and accrued liabilities 47,343 38,309 Deferred revenue 9,889 9,708 Income taxes payable 9,687 - Deferred income taxes 6,331 5,902 Other current liabilities 158 174 -------- -------- Total current liabilities 73,415 54,184 Deferred income taxes 8,014 6,014 Long-term debt, less current portion 11 16 Other liabilities 1,194 1,247 -------- -------- Total liabilities 82,634 61,461 -------- -------- Commitments and contingencies Shareholders' equity: Common stock, no par value - 180,000,000 shares authorized; 89,765,139 and 89,883,412 shares issued and outstanding at April 30, 2004 and July 31, 2003, respectively 262,741 269,968 Accumulated other comprehensive loss (28) - Retained earnings 313,443 255,671 -------- -------- Total shareholders' equity 576,156 525,639 -------- -------- Total liabilities and shareholders' equity $658,790 $587,100 ======== ========