Wednesday November 28
Copart Reports Record First Quarter Results; Earnings per Share Rise 38%, Revenues Grow 27%
BENICIA, Calif. -- Copart, Inc. has reported record profits for its first fiscal quarter ended October 31, 2001.
Copart earned net income of $12,758,200 or $.22 per diluted share in the first quarter of fiscal 2002, generating a 38 percent increase in earnings per share over the same period in fiscal 2001, on revenues of $72,282,500. The company had net income of $8,919,200, or $.16 per diluted share, on revenues of $57,139,400 for the same period in fiscal 2001.
"We are very pleased with the quarter's results," said A. Jayson Adair, Copart's President. "During the quarter we had 27 percent revenue growth and 38 percent earnings per share growth. On the revenue side we continued to see strong performance from existing markets. Same-store revenue growth for the quarter was 17 percent and total organic growth was 21 percent. Organic growth is same-store growth plus revenues from new stores opened not acquired. Acquired revenues contributed an additional 6 percent of revenue growth."
The company has adopted the provisions of Financial Accounting Standards Board (FASB) No.142 regarding goodwill amortization. Accordingly, the company will no longer amortize goodwill resulting from business acquisitions. The current effect of this accounting change is to eliminate approximately $2.6 million of annual goodwill amortization. The effect on the current quarter was a reduction of amortization expense by approximately $645,000. On a pro forma basis, if Copart had applied FASB No. 142 during the corresponding quarter a year ago, amortization expense would be reduced by approximately $583,000 and earnings per basic and diluted share would not have changed from the reported $.16.
During November 2001 Copart completed a follow-on offering of 4.6 million shares at $29 per share. All of the shares were sold by Copart and the offering raised $126.73 million after underwriting discounts.
Copart is also making public its diluted earnings per share forecasts for the second quarter and the current fiscal year. For the second quarter ending January 31, 2002, earnings are currently forecasted to be approximately $.21. For the fiscal year ending July 31, 2002, the current forecast is for EPS of approximately $.95. The new guidance reflects adoption of the new accounting treatment for goodwill amortization discussed above.
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 vehicle dismantlers, rebuilders, repair licensees and used vehicle dealers. Copart operates 88 facilities in 39 states. It also provides services in other locations through its national network of independent salvage vehicle processors.
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