Copart Reports Second Quarter Financial Results
FAIRFIELD, Calif.--March 1, 2005--Copart, Inc. , the largest provider of vehicle salvage disposition services in the United States, today reported results for the second quarter ended January 31, 2005.During the second quarter ended January 31, 2005, Copart earned net income of $23.6 million on revenues of $110.0 million. In the same period last year the company earned $17.4 million on revenues of $92.6 million. These represent increases in net income and revenue of 36% and 19%, respectively. Fully diluted earnings per share (EPS) for the quarter was $.25 compared to $.19 last year, an increase of 32%.
For the first six months of fiscal 2005, Copart earned net income of $46.2 million on revenues of $214.1 million. In the same period last year the company earned $32.6 million on revenues of $184.1 million. These represent increases in net income and revenue of 42% and 16%, respectively. Fully diluted earnings per share (EPS) for the six months was $.50 compared to $.36 last year, an increase of 39%.
During this quarter same store sales, sales from stores owned or open more than twelve months, increased by 18%.
Sales of vehicles during the second quarter, to buyers outside the state where the vehicle is located, accounted for 47% of total vehicles sold; 25% were sold out of state and 22% were sold out of country. This is up 15% from the same period last year. We believe the growth in out of state and international buyers is due to Copart's proprietary auction technology and software, VB2, which creates a virtual selling marketplace, allowing buyers with Internet access to bid on vehicles from any point in the world.
Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles, principally to licensed dismantlers, rebuilders and used vehicle dealers, through Internet auctions utilizing its proprietary VB2 technology. 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 110 facilities in the United States and Canada. It also provides services in other locations through its national network of independent salvage vehicle processors.
Consolidated Statements of Income -- 1
(Dollars in Thousands, Except Per Share Data)
Three Months Ended January 31,
2005 2004
Revenues $ 110,015 $ 92,635
Operating costs and expenses:
Yard and fleet 54,536 50,142
General and administrative 11,260 8,591
Depreciation and amortization 7,595 8,082
Total operating expenses 73,391 66,815
Operating income 36,624 25,820
Other income (expense):
Interest income, net 1,038 293
(Loss)/gain on sale of fleet
vehicles (109) 1,948
Other income 932 647
Total other income 1,861 2,888
Income before income taxes 38,485 28,708
Income taxes 14,932 11,340
Net income $ 23,553 $ 17,368
Basic net income per share $ .26 $ .20
Weighted average shares outstanding 90,123 89,024
Diluted net income per share $ .25 $ .19
Weighted average shares and dilutive
potential common shares outstanding 93,121 91,485
Consolidated Statements of Income -- 2
(Dollars in Thousands, Except Per Share Data)
Six Months Ended January 31,
2005 2004
Revenues $ 214,124 $ 184,101
Operating costs and expenses:
Yard and fleet 107,261 101,804
General and administrative 19,972 16,709
Depreciation and amortization 15,200 15,481
Total operating expenses 142,433 133,994
Operating income 71,691 50,107
Other income:
Interest income, net 1,817 587
Gain on sale of fleet vehicles 17 1,948
Other income 2,001 1,258
Total other income 3,835 3,793
Income before income taxes 75,526 53,900
Income taxes 29,304 21,291
Net income $ 46,222 $ 32,609
Basic net income per share $ .51 $ .37
Weighted average shares outstanding 90,102 89,258
Diluted net income per share $ .50 $ .36
Weighted average shares and dilutive
potential common shares outstanding 92,889 91,322
Consolidated Balance Sheets -- 3
(in Thousands, Except Share Data)
January 31, July 31,
2005 2004
ASSETS
Current assets:
Cash and marketable securities $ 206,305 $ 178,320
Accounts receivable, net 99,706 81,633
Vehicle pooling costs 28,706 23,966
Prepaid expenses and other assets 6,972 5,437
Equipment held for sale 478 3,755
Total current assets 342,167 293,111
Land purchase options and other assets 6,540 6,613
Property and equipment, net 267,608 257,667
Intangibles, net 2,214 2,941
Goodwill 112,691 112,691
Total assets $ 731,220 $ 673,023
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 48,129 $ 44,080
Deferred revenue 13,880 9,721
Income taxes payable 4,976 3,819
Deferred income taxes 6,782 5,438
Other current liabilities 149 165
Total current liabilities 73,916 63,223
Deferred income taxes 6,091 6,355
Other liabilities 1,086 1,182
Total liabilities 81,093 70,760
Commitments and contingencies
Shareholders' equity:
Common stock, no par value - 180,000,000
shares authorized; 90,156,116 and
90,075,843 shares issued and
outstanding at January 31, 2005 and
July 31, 2004, respectively 268,760 267,276
Accumulated other comprehensive income 253 95
Retained earnings 381,114 334,892
Total shareholders' equity 650,127 602,263
Total liabilities and
shareholders' equity $ 731,220 $ 673,023