FAIRFIELD, Calif.--(Business Wire)--Copart, Inc. (NASDAQ:CPRT) today reported the results for the
quarter ended October 31, 2007, the first quarter of its 2008 fiscal
year.
During the three months ended October 31, 2007, revenue and net
income were $184.0 million and $37.6 million, respectively. This
represents increases in revenue of $51.8 million, or 39.2%, and in net
income of $7.3 million, or 23.9%, over the same quarter last year.
Fully diluted earnings per share (EPS) for the three months were $0.41
compared to $0.32 last year, an increase of 28.1%.
Included in the results for this quarter are the results of
operations of our United Kingdom operations, comprised of our
acquisitions of Universal Salvage, plc and Century Salvage Sales
Limited which were closed on June 14, 2007 and August 1, 2007,
respectively. The UK operations generated $43.8 million in revenue
during the quarter.
Included in the operating results for the three months ended
October 31, 2006 were revenues associated with hurricanes Katrina and
Rita which are estimated to be approximately $3.6 million.
On Wednesday, December 5, 2007, 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=vlllrznrzndvlxsws. A
replay of the call will be available through January 5, 2008 by
calling (888) 203-1112. Use confirmation code #5990419.
Copart, founded in 1982, provides vehicle suppliers, primarily
insurance companies, with a full range of vehicle remarketing services
through a completely virtual auction-style trading platform,
principally to licensed dismantlers, rebuilders and used vehicle
dealers and exporters. 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 136
facilities in the United States, Canada and the United Kingdom. It
also provides services in other locations through a network of
independent salvage vehicle remarketers.
Cautionary Note About Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of federal securities laws, and these forward-looking
statements are subject to substantial risks and uncertainties. Our
business has become increasingly reliant on proprietary and
non-proprietary technologies, and it is difficult to forecast with
accuracy what impact these changes in our business model will have. 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. We recently acquired
Universal Salvage plc and Century Salvage Sales Limited, whose
business operations are located in the United Kingdom. We do not have
any historic experience operating outside of North America, and
completion of the acquisitions will result in the Company facing new
risks associated with operating in international markets. 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 risks,
and the other factors described under the caption "Risk Factors" in
our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We
encourage investors to review these disclosures carefully.
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Copart, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three months
ended October
31,
-----------------
2007 2006
-------- --------
Revenues $183,957 $132,121
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Operating costs and expenses:
Yard operations (including depreciation and
amortization of $7,802 and $7,471,
respectively) 102,217 70,231
General and administrative (including
depreciation and amortization of $3,203 and
$1,271, respectively) 25,113 14,997
-------- --------
Total operating expenses 127,330 85,228
-------- --------
Operating income 56,627 46,893
-------- --------
Other income (expense):
Interest income, net 2,743 3,027
Other income 796 651
Equity in losses of unconsolidated investment -- (2,216)
-------- --------
Total other income (expense) 3,539 1,462
-------- --------
Income before income taxes 60,166 48,355
Income taxes 22,556 18,010
-------- --------
Net income $ 37,610 $ 30,345
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Earnings per share-basic
Basic net income per share $ 0.42 $ 0.34
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Weighted average common shares outstanding 88,558 90,500
======== ========
Earnings per share-diluted
Diluted net income per share $ 0.41 $ 0.32
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Weighted average common shares and dilutive
potential common shares outstanding 90,686 93,375
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Copart, Inc.
Consolidated Balance Sheets
(in thousands)
(Unaudited)
October 31, July 31,
2007 2007
----------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 249,854 $ 98,365
Short-term investments -- 102,625
Accounts receivable, net 114,888 109,895
Vehicle pooling costs 29,823 28,842
Inventories 7,772 5,999
Income taxes receivable -- 3,208
Prepaid expenses and other assets 5,172 5,518
----------- ----------
Total current assets 407,509 354,452
Restricted cash and investments -- 9,148
Property and equipment, net 435,754 420,664
Intangibles, net 29,299 27,442
Goodwill 168,356 161,645
Deferred income taxes 12,085 7,785
Land purchase options and other assets 24,684 24,208
----------- ----------
Total assets $1,077,687 $1,005,344
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 80,308 $ 85,082
Deferred revenue 14,159 13,897
Income taxes payable 27,162 3,930
Deferred income taxes 2,981 3,219
Other current liabilities 492 474
----------- ----------
Total current liabilities 125,102 106,602
Deferred income taxes 14,666 13,998
Other liabilities 3,821 3,878
----------- ----------
Total liabilities 143,589 124,478
----------- ----------
Commitments and contingencies
Shareholders' equity:
Common stock, no par value - 180,000
shares authorized; 89,042 and 88,334
shares issued and outstanding at October
31, 2007 and July 31, 2007, respectively 221,235 206,126
Accumulated other comprehensive income 8,581 4,447
Retained earnings 704,282 670,293
----------- ----------
Total shareholders' equity 934,098 880,866
----------- ----------
Total liabilities and shareholders'
equity $1,077,687 $1,005,344
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Copart, Inc.
Simon Rote, 707-639-5000
Vice President of Finance
Copyright Business Wire 2007
