Copart Announces Q4 1998 Results
21 September 1998
Copart Achieves Record Profitability for Fourth Quarter & Fiscal 1998; Net Income Increases 29% in Fourth Quarter, 27% for Fiscal Year
BENICIA, Calif.--Sept. 21, 1998--Copart Inc. reported record profits for the fourth quarter and the fiscal year ended July 31, 1998.
Copart earned a record $4,320,600 in the fourth quarter, or $.32 per diluted share, on revenues of $29,972,800. The company had net income of $3,347,000, or $.25 per diluted share, on revenues of $29,588,000 for the same period in fiscal 1997.
For fiscal 1998, Copart earned a record $15,216,200, or $1.13 per diluted share, on revenues of $114,206,000. In fiscal 1997, Copart's net income was $11,992,600, or $.90 per diluted share, on revenues of $126,275,900.
"Copart not only met, but exceeded, our goals for Fiscal 1998," said Willis J. Johnson, copart's chief executive officer. "During the last 12 months, we added nine new auction and storage facilities, introduced a broad portfolio of Internet supplier and buyer services, expanded our superior customer service and delivered record earnings for our investors."
"Our success is driven by our investments in facilities, people, transportation equipment and systems," continued Johnson. "For example, on Friday, Sept. 18, we announced that our vehicle imaging system is being rolled out to all 60 facilities in 31 states.
"Suppliers and buyers will soon be able to view online multiple images of nearly every car in inventory, from anywhere in the world. This will give them the ability to be much more efficient, speed up the transaction process and lower their costs."
Copart Inc., 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 60 facilities in 31 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
NOTE: Certain statements in this release may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors and/or factors affecting future results detailed in the company's Securities and Exchange Commission reports, including variations in the company's operating results, the inability to continue to increase service fees, the timing and size of acquisitions and facility openings, the loss of vehicle suppliers or buyers, the announcement of new vehicle supply agreements by the company or its competitors, changes in regulations governing the company's operations or its vehicle suppliers, environmental problems or litigation.
Copart Inc.
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended July 31,
1998 1997
Consolidated Statements
of Income Data
Revenues:
Salvage fees $ 24,919 $ 22,925
Transportation revenue 3,793 2,879
Purchased vehicle revenue 1,261 3,784
Total revenues 29,973 29,588
Operating costs and expenses:
Yard and fleet 18,617 20,159
General and administrative 2,636 2,715
Depreciation and amortization 2,060 1,956
Total operating expenses 23,313 24,830
Operating income 6,660 4,758
Other income (expense):
Interest income, net 371 173
Other income 52 133
Total other income 423 306
Income before income taxes 7,083 5,064
Income taxes 2,762 1,717
Net income $ 4,321 $ 3,347
Basic net income per share $ .33 $ .26
Weighted average shares outstanding 13,249 13,037
Diluted earnings per share $.32 $ .25
Weighted average shares and dilutive
potential common shares outstanding 13,581 13,419
Other Data
Gross proceeds (000) $ 140,779 $ 134,517
Number of auction facilities 60 53
Financial Highlights -- 2
(in thousands, except per share and other data)
Fiscal Year Ended July 31,
1998 1997
Consolidated Statements
of Income Data
Revenues:
Salvage fees $ 94,472 $ 86,534
Transportation revenue 14,328 11,391
Purchased vehicle revenue 5,406 28,351
Total revenues 114,206 126,276
Operating costs and expenses:
Yard and fleet 71,547 89,394
General and administrative 11,306 10,566
Depreciation and amortization 7,845 7,463
Total operating expenses 90,698 107,423
Operating income 23,508 18,853
Other income (expense):
Interest income, net 1,096 241
Other income 341 381
Total other income 1,437 622
Income before income taxes 24,945 19,475
Income taxes 9,729 7,482
Net income $ 15,216 $ 11,993
Basic earnings per share $ 1.15 $ .93
Weighted average shares outstanding 13,181 12,874
Diluted earnings per share $ 1.13 $ .90
Weighted average shares and dilutive
potential common shares outstanding 13,450 13,257
Other Data
Gross proceeds (000) $ 534,818 $ 537,657
Number of auction facilities 60 53
July 31, 1998 July 31, 1997
Consolidated Balance Sheet Data (000)
Cash & short-term investments $ 28,796 $ 27,685
Working capital $ 54,829 $ 48,930
Total assets $ 190,942 $ 175,340
Total debt $ 8,425 $ 9,753
Shareholders' equity $ 160,183 $ 142,814