Copart Achieves Record Profitability for Fourth Quarter and Fiscal 1999
21 September 1999
Copart Achieves Record Profitability for Fourth Quarter and Fiscal 1999; Q4 Revenues Increase 32%, Earnings per Share Rise 50%; Same Store Sales up 25%, 8% of Proceeds from Web Sales
BENICIA, Calif.--Sept. 21, 1999--Copart, Inc. today reported record profits for the fourth quarter and fiscal year ended July 31, 1999.Copart earned net income of $6,669,100 in the fourth quarter of fiscal 1999, generating a 50% increase in earnings per share over Q4 1998 to $.24 per diluted share on revenues of $39,489,200. In the fourth quarter of fiscal 1998, Copart earned net income of $4,320,600, or $.16 per diluted share, on revenues of $29,972,800.
For fiscal 1999, Copart earned net income of $21,966,300, or $.80 per diluted share, on revenues of $141,751,400. Copart reported net income of $15,216,200, or $.57 per diluted share, on revenues of $114,206,000 for fiscal 1998.
The Company also reported quarterly Internet sales information. Approximately 8% of the fourth quarter's gross proceeds came from the sale of cars sold to Internet bidders or whose price was "pushed" by Internet bidders. Total Internet sales for the quarter were $13.3 million, consisting of approximately $6.4 million of product sold and $6.9 million pushed by Internet bids. Comparable numbers for the third quarter were approximately $5.0 million of product sold and an additional $5.2 million pushed.
"We are very pleased with our performance this quarter and for the year," said A. Jayson Adair, Copart's president. "Fiscal 1999 revenues were over 24% higher than 1998 and net income for the year grew by over 44%. Fiscal 1999 was marked by a number of very important accomplishments that led to increased market share. To name just a few: Copart Access, introduced in August 1998, provides Copart's suppliers with web access to critical data, reports and graphs; Buyer Profile, introduced in February, keeps our buyers updated on cars for sale that meet their needs; and CoPartfinder, which rolled out in June, has quickly become one of the best places to find used parts on the web and helps our buyers sell more of the cars they buy at Copart.
"In the fourth quarter we continued to enjoy strong same store sales and Internet business," continued Adair. "Same store sales grew by over 25%, while our Internet business, which was launched late last year, grew by over 30% since the third quarter and 379% since the second quarter."
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 65 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
(in thousands, except per share and other data)
Three Months Ended
July 31,
1999 1998
Consolidated Statements of Income Data
Revenues:
Salvage fees $ 32,687 $ 24,919
Transportation revenue 4,483 3,793
Purchased vehicle revenue 2,319 1,261
Total revenues 39,489 29,973
Operating costs and expenses:
Yard and fleet 24,200 18,617
General and administrative 2,839 2,636
Depreciation and amortization 2,598 2,060
Total operating expenses 29,637 23,313
Operating income 9,852 6,660
Other income (expense):
Interest income, net 370 371
Other income 135 52
Total other income 505 423
Income before income taxes 10,357 7,083
Income taxes 3,688 2,762
Net income $ 6,669 $ 4,321
Basic earnings per share $ .25 $ .16
Weighted average shares outstanding 26,813 26,498
Diluted earnings per share $ .24 $ .16
Weighted average shares and dilutive
potential common shares outstanding 27,894 27,162
Other Data
Gross proceeds (000) $174,570 $140,779
Number of auction facilities 65 60
Financial Highlights - 2
(in thousands, except per share and other data)
Fiscal Year Ended
July 31,
1999 1998
Consolidated Statements of Income Data
Revenues:
Salvage fees $118,929 $ 94,472
Transportation revenue 17,291 14,328
Purchased vehicle revenue 5,531 5,406
Total revenues 141,751 114,206
Operating costs and expenses:
Yard and fleet 86,480 71,547
General and administrative 12,059 11,306
Depreciation and amortization 9,826 7,845
Total operating expenses 108,365 90,698
Operating income 33,386 23,508
Other income (expense):
Interest income, net 1,060 1,096
Other income 676 341
Total other income 1,736 1,437
Income before income taxes 35,122 24,945
Income taxes 13,156 9,729
Net income $ 21,966 $ 15,216
Basic earnings per share $ .82 $ .58
Weighted average shares outstanding 26,688 26,363
Diluted earnings per share $ .80 $ .57
Weighted average shares and dilutive
potential common shares outstanding 27,569 26,899
Other Data
Gross proceeds (000) $641,472 534,818
Number of auction facilities 65 60
July 31, July 31,
1999 1998
Consolidated Balance Sheet Data (000)
Cash & short-term investments $ 37,048 $ 28,796
Working capital $ 64,647 $ 54,829
Total assets $218,677 $190,942
Total debt $ 7,820 $ 8,425
Shareholders' equity $183,982 $160,183
