Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports First Quarter Financial Results
Fairfield, Calif. (December 3, 2008) — Copart, Inc. (NASDAQ: CPRT) today reported the results for the quarter ended October 31, 2008, the first quarter of its 2009 fiscal year.
For the three months ended October 31, 2008, revenue, operating income and net income were $191.6 million, $59.5 million and $37.3 million, respectively. This represents an increase in revenue of $7.6 million, or 4.1%, an increase in operating income of $2.9 million or 5.0% and a decrease in net income of $0.4 million, or 0.9%, over the same quarter last year. Fully diluted earnings per share (EPS) for the three months were $0.44 compared to $0.41 last year, an increase of 7.3%.
For the quarter, revenues for North America and the United Kingdom were $152.2 and $39.4 million, respectively. The increase in revenue in North America of 8.5% was driven by growth in same store sales of 6.7%. The decline in UK revenue of 10.0% was attributable solely to the change in the currency exchange rate between the USD (United States Dollar) and the GBP (Great Britain Pound). The UK revenue expressed in GBP was up 1.9% over the same quarter last year. The Company first entered the market in the United Kingdom through an acquisition in the fourth quarter of fiscal 2007.
On Thursday, December 4, 2008, 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 http://www.investorcalendar.com/IC/CEPage.asp?ID=137949. A replay of the call will be available through January 3, 2009 by calling (888) 203-1112. Use confirmation code #1495672.
About Copart
Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean titled vehicles to dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its proprietary VB2 technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships, the general public and others. The company currently operates 145 facilities in the United States, Canada and the United Kingdom. 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. For more information, or to become a registered buyer, visit www.copart.com.
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
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Copart, Inc.
results would be adversely affected. We have only recently entered the UK market through several acquisitions. We do not have any historic experience operating outside of North America, and we may experience challenges adapting our business model to international markets and integrating the acquired businesses. 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.
Contact: | Heather Luck, Assistant to the Chief Financial Officer |
| (707) 639-5271 |
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Copart, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
|
| Three months ended |
| ||||
|
| 2008 |
| 2007 |
| ||
Revenues |
| $ | 191,569 |
| $ | 183,957 |
|
Operating costs and expenses: |
|
|
|
|
| ||
Yard operations |
| 103,663 |
| 97,401 |
| ||
Yard depreciation and amortization |
| 8,336 |
| 8,164 |
| ||
Gross margin |
| 79,570 |
| 78,392 |
| ||
General and administrative |
| 17,543 |
| 18,926 |
| ||
General and administrative depreciation and amortization |
| 2,542 |
| 2,839 |
| ||
Total operating expenses |
| 132,084 |
| 127,330 |
| ||
Operating income |
| 59,485 |
| 56,627 |
| ||
Other income: |
|
|
|
|
| ||
Interest income, net |
| 581 |
| 2,743 |
| ||
Other income |
| 1,254 |
| 796 |
| ||
Total other income |
| 1,835 |
| 3,539 |
| ||
Income before income taxes |
| 61,320 |
| 60,166 |
| ||
Income taxes |
| 24,066 |
| 22,556 |
| ||
Net income |
| $ | 37,254 |
| $ | 37,610 |
|
Earnings per share-basic |
|
|
|
|
| ||
Basic net income per share |
| $ | 0.45 |
| $ | 0.42 |
|
Weighted average common shares outstanding |
| 83,283 |
| 88,558 |
| ||
|
|
|
|
|
| ||
Earnings per share-diluted |
|
|
|
|
| ||
Diluted net income per share |
| $ | 0.44 |
| $ | 0.41 |
|
Weighted average common shares and dilutive potential common shares outstanding |
| 85,320 |
| 90,686 |
| ||
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Copart, Inc.
Consolidated Balance Sheets
(in thousands)
(Unaudited)
|
| October 31, |
| July 31, |
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 50,770 |
| $ | 38,954 |
|
Accounts receivable, net |
| 118,508 |
| 111,705 |
| ||
Inventories and vehicle pooling costs |
| 36,804 |
| 36,121 |
| ||
Income taxes receivable |
| 7,264 |
| 19,041 |
| ||
Prepaid expenses and other assets |
| 7,538 |
| 6,932 |
| ||
Total current assets |
| 220,884 |
| 212,753 |
| ||
Property and equipment, net |
| 514,908 |
| 510,340 |
| ||
Intangibles, net |
| 17,024 |
| 21,901 |
| ||
Goodwill |
| 165,366 |
| 177,164 |
| ||
Deferred income taxes |
| 6,010 |
| 6,938 |
| ||
Land purchase options and other assets |
| 25,370 |
| 27,151 |
| ||
Total assets |
| $ | 949,562 |
| $ | 956,247 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable and accrued liabilities |
| $ | 77,329 |
| $ | 88,883 |
|
Book overdraft |
| 7,579 |
| 17,502 |
| ||
Deferred revenue |
| 15,409 |
| 14,518 |
| ||
Income taxes payable |
| 10,692 |
| 4,005 |
| ||
Deferred income taxes |
| 3,854 |
| 2,768 |
| ||
Other current liabilities |
| — |
| 576 |
| ||
Total current liabilities |
| 114,863 |
| 128,252 |
| ||
Deferred income taxes |
| 11,197 |
| 14,044 |
| ||
Income taxes payable |
| 13,545 |
| 12,219 |
| ||
Other liabilities |
| 2,829 |
| 2,736 |
| ||
Total liabilities |
| 142,434 |
| 157,251 |
| ||
Commitments and contingencies |
|
|
|
|
| ||
Shareholders’ equity: |
|
|
|
|
| ||
Common stock, no par value - 180,000 shares authorized; 83,337 and 83,275 shares issued and outstanding at October 31, 2008 and July 31, 2008, respectively |
| 318,844 |
| 316,673 |
| ||
Accumulated other comprehensive (loss) income |
| (30,460 | ) | 833 |
| ||
Retained earnings |
| 518,744 |
| 481,490 |
| ||
Total shareholders’ equity |
| 807,128 |
| 798,996 |
| ||
Total liabilities and shareholders’ equity |
| $ | 949,562 |
| $ | 956,247 |
|
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