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Letter to the Editor

Copart Q4 Revenue Up 15%

In the fourth quarter of fiscal 2004 Copart earned net income of $21.4 million on revenues of $100.1 million. In the same period last year the company earned $13.3 million on revenues of $87.2 million. These represent increases in net income and revenue of 61 percent and 15 percent, respectively. Fully diluted earnings per share (EPS) for the quarter was $.23 compared to $.15 last year, an increase of 53 percent.

For fiscal 2004 Copart earned net income of $79.2 million on revenues of $400.8 million. In the same period last year the company earned $57.2 million on revenues of $347.4 million. These represent increases in net income and revenue of 38 percent and 15 percent, respectively. Fully diluted earnings per share for the twelve months was $.87 compared to $.62 last year, an increase of 40 percent.

Included in fourth quarter results are net positive adjustments relating to accruals for insurance claims and sales taxes totaling $3.6 million, pretax. These adjustments had a corresponding positive impact on our net income and EPS for the quarter and the fiscal year. In particular, the adjustments had a favorable EPS effect of $0.02 for the quarter and the fiscal year.

"VB2 continues to prove that its unique method within the marketplace removes barriers between buyers and sellers," stated A. Jayson Adair, President of Copart. "Sales of vehicles during the fourth quarter to buyers outside the state where the vehicle is located accounted for 43 percent of total vehicles sold; 25 percent out of state and 18 percent out of country."

One example of the breadth and versatility of VB2 occurred recently in Florida. VB2 allowed Copart's Tampa, Florida facility to complete its scheduled sale despite being engulfed by Hurricane Charlie. On the day that Charlie struck the Tampa area, with the facility closed and all employees evacuated, 448 vehicles were sold to buyers throughout the world. Of the 448 vehicles sold, 11 percent were sold to buyers outside the state, and 30 percent were sold to buyers outside the United States.

"VB2 removes barriers between our vehicle suppliers and buyers navigating the virtual marketplace," concluded Mr. Adair.

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. The company operates 107 facilities in the United States and Canada.

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