Copart Achieves Record Third Quarter Profitability
1 June 1999
Copart Achieves Record Third Quarter Profitability; Revenues Increase 31%, Earnings Per Share Rise 44%; Same Store Sales up 19%, 6% of Proceeds from Web Sales
BENICIA, Calif.--June 1, 1999--Copart, Inc. today reported record profits for the third quarter and first nine months ended April 30, 1999.Copart earned net income of $6,284,900 in the third quarter of fiscal 1999, generating a 44% increase in earnings per share to $.23 per diluted share on revenues of $40,014,800. In the third quarter of fiscal 1998, Copart earned net income of $4,302,500, or $.16 per diluted share, on revenues of $30,568,700.
For the first nine months, Copart earned net income of $15,297,200, or $.55 per diluted share, on revenues of $102,262,200. Copart reported net income of $10,895,900, or $.40 per diluted share on revenues of $84,233,300 for the same period in fiscal 1998.
The Company also reported quarterly Internet sales information. Approximately 6% of the quarter's gross proceeds, $10.2 million, came from the sale of cars sold or "pushed" with Internet bids. For the third quarter, approximately $5.0 million of product was sold and $5.2 million was pushed by Internet bids. Comparable numbers for the second quarter were approximately $1.0 million of product sold and $1.1 million pushed.
"We continued to enjoy strong same store sales plus steady growth in our Percentage Incentive Program (PIP) and Internet business," said A. Jayson Adair Copart's President. "Same store sales grew by over 19%, while PIP vehicles processed climbed to 51% of cars sold during the quarter, compared to 48% one year ago. Meanwhile, our Internet business, which was launched late last year, grew by over 379% since the second quarter."
The Company also announced today that Marvin L. Schmidt has retired from his position as Senior Vice President of Corporate Development but will continue to serve on its Board of Directors. "Marv was very instrumental in helping us build Copart," said Willis J. Johnson, Copart's Chief Executive Officer. "He started with the Company when we had just nine facilities on the West Coast. We are very grateful for his dedication and accomplishments as Senior Vice President of Corporate Development and we are pleased that he will continue as a member of our Board."
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 62 facilities in 32 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.
(Financial highlights follow)
Financial Highlights
(in thousands, except per share and other data)
Three Months Ended April 30,
1999 1998
Consolidated Statements of Income Data
Revenues:
Salvage fees $ 33,885 $ 25,506
Transportation revenue 4,888 3,958
Purchased vehicle revenue 1,242 1,105
Total revenues 40,015 30,569
Operating costs and expenses:
Yard and fleet 24,577 18,718
General and administrative 3,186 3,277
Depreciation and amortization 2,503 1,924
Total operating expenses 30,266 23,919
Operating income 9,749 6,650
Other income (expense):
Interest income, net 168 280
Other income 139 123
Total other income 307 403
Income before income taxes 10,056 7,053
Income taxes 3,771 2,750
Net income $ 6,285 $ 4,303
Basic net income per share $ .24 $ .16
Weighted average shares outstanding 26,706 26,435
Diluted net income per share $ .23 $ .16
Weighted average shares and dilutive
potential common shares outstanding 27,797 27,058
Other Data
Gross proceeds (000) $183,556 $146,944
Number of auction facilities 62 56
Financial Highlights - Continued
(in thousands, except per share and other data)
Nine Months Ended April 30,
1999 1998
Consolidated Statements of Income Data
Revenues:
Salvage fees $ 86,242 $ 69,552
Transportation revenue 12,808 10,534
Purchased vehicle revenue 3,212 4,147
Total revenues 102,262 84,233
Operating costs and expenses:
Yard and fleet 62,280 52,931
General and administrative 9,220 8,672
Depreciation and amortization 7,228 5,783
Total operating expenses 78,728 67,386
Operating income 23,534 16,847
Other income (expense):
Interest income, net 690 726
Other income 541 289
Total other income 1,231 1,015
Income before income taxes 24,765 17,862
Income taxes 9,468 6,966
Net income $ 15,297 $ 10,896
Basic net income per share $ .57 $ .41
Weighted average shares outstanding 26,646 26,305
Diluted net income per share $ .55 $ .40
Weighted average shares and dilutive
potential common shares outstanding 27,868 26,916
Other Data
Gross proceeds (000) $466,902 $394,039
Number of auction facilities 62 56
April 30, 1999 July 31, 1998
Consolidated Balance Sheet Data (000)
Cash & short-term investments $ 38,070 $ 28,796
Working capital $ 63,329 $ 54,829
Total assets $212,325 $190,942
Total debt $ 7,956 $ 8,425
Shareholders' equity $176,457 $160,183