Copart Achieves Record Profitability for Fourth Quarter and Fiscal 2002; Q4 Revenues Increase 20%; Net Income Grows 20%.Business Editors BENICIA Be·ni·cia A city of western California on an inlet of San Francisco Bay north-northeast of Oakland. It was the state capital from 1853 to 1854. Population: 27,100. , Calif.--(BUSINESS WIRE)--Sept. 17, 2002 Copart Co`part v. t. 1. To share. For, of all miserias, I hold that chief Wretched to be, when none coparts our grief. - Webster (1661). , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CPRT CPRT Copart Inc. (stock symbol) CPRT Citizens for Personal Rapid Transit CPRT Client Perceived Response Time CPRT Coprocessor Register Transfer CPRT Cancer Prevention Research Trust CPRT Classic Professional Racquetball Tour ) today reported record profits for the fourth quarter and fiscal year ended July July: see month. 31, 2002. Copart earned net income of $15,535,000 in the fourth quarter of fiscal 2002, generating a 13% increase in earnings per share over Q4 2001 to $.17 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on revenues of $82,632,600. In the fourth quarter of fiscal 2001, Copart earned net income of $12,931,400, or $.15 per diluted share, on revenues of $68,631,200. For fiscal 2002, Copart earned net income of $57,389,200, or $.63 per diluted share, on revenues of $316,455,800. Copart reported net income of $42,685,000, or $.50 per diluted share, on revenues of $253,889,400 for fiscal 2001. "We are very pleased with our performance this quarter and for the year," said A. Jayson Adair, Copart's president. "Fiscal 2002 revenues grew by 25% and annual earnings per share grew by 26% compared to last year thanks to great results from innovations like virtual bidding coupled with strong same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. growth and the contribution from new stores. In the fourth quarter, same-store sales grew by 15%, and they increased by 20% for the entire fiscal year." As discussed last quarter, the company has adopted the provisions of Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) No.142 regarding goodwill amortization. Accordingly, the company no longer amortizes goodwill from business acquisitions. The current effect of this accounting change is to eliminate approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.6 million of annual goodwill amortization. The effect on the current quarter was a reduction of amortization expense by approximately $668,700. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, if Copart had applied FASB No. 142 during the corresponding quarter a year ago, amortization expense would be reduced by approximately $610,400 and basic earnings per share would have remained unchanged from the reported $.16 and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of would have remained unchanged from the reported $.15. The Company is also making public that its diluted earnings per share forecast for the first quarter ending October October: see month. 31, 2002, is approximately 16 cents. For the fiscal year ending July 31, 2003, our May 2002 forecast assumed a return of normal weather patterns and market share gains similar to those achieved in prior years. Due to an increasingly competitive market and the forecast by the National Oceanic and Atmosphere Administration (NOAA NOAA abbr. National Oceanic and Atmospheric Administration Noun 1. NOAA - an agency in the Department of Commerce that maps the oceans and conserves their living resources; predicts changes to the earth's environment; ) for the current drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. affecting nearly half of the country to continue into March 2003, the company currently estimates that its annual earnings growth rate will be approximately 10% to 15%. The company will update its earnings forecast as circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or change. On Wednesday Wednesday: see week. , September September: see month. 18, 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 vcall.com. A replay of the call will be available through September 25, by calling (877) 660-6853 with account number 1628 and call ID 43638. Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage salvage, in maritime law, the compensation that the owner must pay for having his vessel or cargo saved from peril, such as shipwreck, fire, or capture by an enemy. Salvage is awarded only when the party making the rescue was under no legal obligation to do so. 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 96 facilities in 40 states. It also provides services in other locations through its national network of independent salvage vehicle processors. NOTE: This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of federal securities laws, including statements concerning our projected earnings and earnings growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. . Our actual results could differ materially from those projected in these forward-looking statements as a result of a number of factors, many of which are outside our control. In particular, our inventory levels and revenues are highly dependent on weather conditions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and we experience seasonality in our business as a result of changing weather conditions and related fluctuations in vehicle accident rates. Weather conditions in the last nine months have been generally mild, and continued mild weather could adversely affect our inventory levels, revenues, and operating results. Our historical revenue and earnings growth rates have been relatively high, reflecting both internal growth of our salvage business as well as growth through acquisitions. We may not be able to maintain these revenue and earnings growth rates as our business becomes larger. We are investing in new but related businesses such as auto auctions, but revenues from these businesses have been modest relative to our total revenues, and we cannot predict what effect they will have on our future revenues or growth rates. We depend on a limited number of major suppliers of salvage vehicles. If we are unable to maintain these supply relationships, our revenues and operating results would be adversely affected. In addition, our revenues, operating results, financial condition, and growth rates are subject to numerous other risks, including our ability to complete and integrate new acquisitions, environmental and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. risks, and the other factors described under the caption "Factors that may effect future results" in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . We encourage investors to review these disclosures carefully.
Copart, Inc.
Consolidated Statements of Income -- 1
(Dollars in thousands, except per share data)
Three Months Ended July 31,
2002 2001
-------- --------
Revenues $ 82,633 $ 68,631
-------- --------
Operating costs and expenses:
Yard and fleet 47,575 39,363
General and administrative 5,846 5,082
Depreciation and amortization 4,907 3,917
-------- --------
Total operating expenses 58,328 48,362
-------- --------
Operating income 24,305 20,269
-------- --------
Other income:
Interest income, net 612 342
Other income 587 1,086
-------- --------
Total other income 1,199 1,428
-------- --------
Income before income taxes 25,504 21,697
-------- --------
Income taxes 9,969 8,766
-------- --------
Net income $ 15,535 $ 12,931
======== ========
Basic net income per share $ .17 $ .16
======== ========
Weighted average shares outstanding 91,614 82,855
======== ========
Diluted net income per share $ .17 $ .15
======== ========
Weighted average shares and
dilutive potential common
shares outstanding 94,046 85,813
======== ========
Other Data
Gross proceeds $305,674 $279,244
Number of auction facilities 96 84
Copart, Inc.
Consolidated Statements of Income - 2
(Dollars in thousands, except per share data)
Fiscal Year Ended July 31,
2002 2001
Revenues $316,456 $253,889
-------- --------
Operating costs and expenses:
Yard and fleet 186,952 152,052
General and administrative 23,256 19,370
Depreciation and amortization 16,308 14,350
-------- --------
Total operating expenses 226,516 185,772
-------- --------
Operating income 89,940 68,117
-------- --------
Other income:
Interest income, net 1,830 1,004
Other income 1,888 1,923
-------- --------
Total other income 3,718 2,927
-------- --------
Income before income taxes 93,658 71,044
-------- --------
Income taxes 36,269 28,359
-------- --------
Net income $ 57,389 $ 42,685
======== ========
Basic net income per share $ .65 $ .52
======== ========
Weighted average shares outstanding 88,718 82,340
======== ========
Diluted net income per share $ .63 $ .50
======== ========
Weighted average shares and dilutive
potential common shares outstanding 91,251 84,614
======== ========
Other Data
Gross proceeds $ 1,208,795 $ 1,054,169
Number of auction facilities 96 84
Consolidated Balance Sheets -- 3
(in thousands, except share data)
As of July 31,
2002 2001
----------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 132,690 $ 15,245
Accounts receivable, net 64,072 64,907
Vehicle pooling costs 20,014 19,846
Prepaid expenses and other assets 9,216 7,866
---------- ----------
Total current assets 225,992 107,864
Deferred income taxes - 1,084
Property and equipment, net 197,769 114,998
Intangibles and other assets, net 9,167 8,365
Goodwill 102,920 82,753
---------- ----------
Total assets $ 535,848 $ 315,064
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of
long-term debt $ 325 $ 303
Accounts payable and
accrued liabilities 31,894 26,770
Deferred revenue 8,352 8,863
Income taxes payable 2,632 4,975
Deferred income taxes 3,647 2,982
Other current liabilities 198 197
----------- -----------
Total current liabilities 47,048 44,090
Deferred income taxes 1,063 -
Long-term debt, less
current portion 85 409
Other liabilities 1,436 1,413
----------- -----------
Total liabilities 49,632 45,912
Shareholders' equity:
Common stock, no par value
- 180,000,000 shares authorized;
92,239,900 and 83,000,445 shares
issued and outstanding at July 31,
2002 and 2001, respectively 287,767 128,092
Retained earnings 198,449 141,060
----------- -----------
Total shareholders' equity 486,216 269,152
----------- -----------
Commitments and contingencies
Total liabilities and
shareholders' equity $ 535,848 $ 315,064
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