Copart Reports Third Quarter Financial Results
FAIRFIELD, Calif.--June 1, 2005--Copart, Inc. the largest provider of vehicle salvage disposition services in the United States, today reported its results for the third quarter ended April 30, 2005.During the third quarter ended April 30, 2005, Copart earned net income of $30.9 million on revenues of $130.4 million. In the same period last year the company earned $25.0 million on revenues of $116.6 million. These represent increases in net income and revenue of 24% and 12%, respectively. Fully diluted earnings per share (EPS) for the quarter was $.33 compared to $.27 last year, an increase of 22%.
For the first nine months of fiscal 2005, Copart earned net income of $77.1 million on revenues of $344.6 million. In the same period last year the company earned $57.8 million on revenues of $300.7 million. These represent increases in net income and revenue of 34% and 15%, respectively. Fully diluted earnings per share (EPS) for the nine months was $.83 compared to $.63 last year, an increase of 32%.
During this quarter same store sales, sales from stores owned or open more than twelve months, increased by 10%.
Sales of vehicles during the third quarter, to buyers outside the state where the vehicle is located, accounted for 48% of total vehicles sold; 26% were sold to buyers out of state and 22% were sold to buyers out of country. Sales of vehicles to buyers outside the state where the vehicle is located were 43% during the same period last year.
On Thursday, June 2, 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 https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrsdslslvrmrws. A replay of the call will be available through June 8, 2005 by calling (888) 203-1112. Use confirmation code #9149645.
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 113 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, 2005 2004 ---------------------------------------------------------------------- Revenues $130,426 $116,618 -------- -------- Operating costs and expenses: Yard and fleet 61,947 58,053 General and administrative 11,672 10,515 Depreciation and amortization 9,054 7,652 -------- -------- Total operating expenses 82,673 76,220 -------- -------- Operating income 47,753 40,398 -------- -------- Other income (expense): Interest income, net 1,217 338 Loss on sale of fleet vehicles (67) (773) Other income 776 591 -------- -------- Total other income 1,926 156 -------- -------- Income before income taxes 49,679 40,554 -------- -------- Income taxes 18,774 15,590 -------- -------- Net income $ 30,905 $ 24,964 ======== ======== Basic net income per share $ .34 $ .28 ======== ======== Weighted average shares outstanding 90,179 89,373 ======== ======== Diluted net income per share $ .33 $ .27 ======== ======== Weighted average shares and dilutive potential common shares outstanding 93,100 91,974 ======== ======== Copart, Inc. Consolidated Statements of Income -- 2 (Dollars in thousands, except per share data) Nine Months Ended April 30, 2005 2004 ---------------------------------------------------------------------- Revenues $344,550 $300,720 -------- -------- Operating costs and expenses: Yard and fleet 170,863 159,659 General and administrative 29,989 27,224 Depreciation and amortization 24,254 23,133 -------- -------- Total operating expenses 225,106 210,016 -------- -------- Operating income 119,444 90,704 -------- -------- Other income (expense): Interest income, net 3,034 924 (Loss)/gain on sale of fleet vehicles (50) 1,155 Other income 2,778 1,869 -------- -------- Total other income 5,762 3,948 -------- -------- Income before income taxes 125,206 94,652 -------- -------- Income taxes 48,079 36,881 -------- -------- Net income $ 77,127 $ 57,771 ======== ======== Basic net income per share $ .86 $ .65 ======== ======== Weighted average shares outstanding 90,127 89,296 ======== ======== Diluted net income per share $ .83 $ .63 ======== ======== Weighted average shares and dilutive potential common shares outstanding 92,931 91,236 ======== ======== Copart, Inc. Consolidated Balance Sheets -- 3 (in thousands, except share data) April 30, July 31, 2005 2004 ---------------------------------------------------------------------- ASSETS ------ Current assets: Cash and cash equivalents $243,903 $ 5,720 Short-term investments - 172,600 Accounts receivable, net 94,348 81,633 Vehicle pooling costs 24,849 23,966 Prepaid expenses and other assets 7,195 5,437 Equipment held for sale 48 3,755 -------- -------- Total current assets 370,343 293,111 Land purchase options and other assets 6,642 6,613 Property and equipment, net 275,550 257,667 Intangibles, net 2,131 2,941 Goodwill 115,549 112,691 -------- -------- Total assets $770,215 $673,023 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current liabilities: Accounts payable and accrued liabilities $ 50,421 $ 44,080 Deferred revenue 12,742 9,721 Income taxes payable 10,116 3,819 Deferred income taxes 5,564 5,438 Other current liabilities 141 165 -------- -------- Total current liabilities 78,984 63,223 Deferred income taxes 7,960 6,355 Other liabilities 1,263 1,182 -------- -------- Total liabilities 88,207 70,760 -------- -------- Commitments and contingencies Shareholders' equity: Common stock, no par value -- 180,000,000 shares authorized; 90,220,008 and 90,075,843 shares issued and outstanding at April 30, 2005 and July 31, 2004, respectively 269,681 267,276 Accumulated other comprehensive income 308 95 Retained earnings 412,019 334,892 -------- -------- Total shareholders' equity 682,008 602,263 -------- -------- Total liabilities and shareholders' equity $770,215 $673,023 ======== ======== Copart, Inc. Consolidated Cash Flows -- 4 (in thousands) Three Months Ended April 30, 2005 2004 ---------------------------------------------------------------------- Cash flows from operating activities: Net income $ 30,905 $ 24,964 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,054 7,652 Deferred rent 179 (8) (Gain)/loss on sale of property and equipment (68) 811 Deferred income taxes 651 (1,621) Changes in operating assets and liabilities: Accounts receivable 5,547 10,524 Vehicle pooling costs 3,972 4,210 Prepaid expenses and other current assets (223) (247) Land purchase options and other assets (102) - Accounts payable and accrued liabilities 2,283 7,397 Deferred revenue (1,138) (1,994) Income taxes 5,534 8,416 --------- -------- Net cash provided by operating activities 56,594 60,104 --------- -------- Cash flows from investing activities: Purchase of short-term investments (200,205) (74,605) Sale of short-term investments 407,380 11,980 Purchase of property and equipment (16,868) (9,497) Proceeds from sale of property and equipment 637 7,431 Purchase of net current assets in connection with acquisitions (303) - Purchase of goodwill and intangible assets in connection with acquisitions (3,058) - --------- --------- Net cash provided by (used in) investing activities 187,583 (64,691) --------- -------- Cash flows from financing activities: Proceeds from the exercise of stock options 527 2,039 Repayment of bank overdraft (870) - Principal payments on notes payable (2) (2) --------- -------- Net cash (used in) provided by financing activities (345) 2,037 --------- -------- Effect of foreign currency translation 71 (14) --------- -------- Net increase (decrease) in cash and cash equivalents 243,903 (2,564) Cash and equivalents at beginning of period - 7,853 ---------- -------- Cash and equivalents at end of period $ 243,903 $ 5,289 ========= ======== Supplemental disclosure of cash flow information: Interest paid $ - $ 1 ========= ======== Income taxes paid $ 12,589 $ 8,799 ========= ======== Copart, Inc. Consolidated Cash Flows -- 5 (in thousands) Nine Months Ended April 30, 2005 2004 ---------------------------------------------------------------------- Cash flows from operating activities: Net income $ 77,127 $ 57,771 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 24,254 23,133 Deferred rent 87 (53) Gain on sale of property and equipment (697) (1,012) Deferred income taxes 1,731 2,430 Changes in operating assets and liabilities: Accounts receivable (12,527) (12,733) Vehicle pooling costs (768) (1,067) Prepaid expenses and other current assets (1,758) (5,043) Land purchase options and other assets (29) 5,150 Accounts payable and accrued liabilities 6,317 9,018 Deferred revenue 3,022 181 Income taxes 6,958 13,893 --------- --------- Net cash provided by operating activities 103,717 91,668 --------- --------- Cash flows from investing activities: Purchase of short-term investments (341,020) (111,355) Sale of short-term investments 513,620 62,360 Purchase of property and equipment (42,171) (51,030) Proceeds from sale of property and equipment 5,520 16,628 Purchase of net current assets in connection with acquisitions (303) (154) Purchase of goodwill and intangible assets in connection with acquisitions (3,059) (686) --------- --------- Net cash provided by (used in) investing activities 132,587 (84,237) --------- --------- Cash flows from financing activities: Proceeds from the exercise of stock options 1,082 2,609 Proceeds from the issuance of ESPP shares 661 698 Repurchases of common stock - (10,723) Principal payments on notes payable (5) (89) --------- --------- Net cash provided by (used in) financing activities 1,738 (7,505) --------- --------- Effect of foreign currency translation 141 (28) --------- --------- Net increase (decrease) in cash and cash equivalents 238,183 (102) Cash and equivalents at beginning of period 5,720 5,391 --------- --------- Cash and equivalents at end of period $ 243,903 $ 5,289 ========= ========= Supplemental disclosure of cash flow information: Interest paid $ 1 $ 3 ========= ========= Income taxes paid $ 39,390 $ 20,558 ========= =========