Copart Inc. reports record revenues and earnings for the third quarter and first nine months of fiscal 1995

Business Wire, June 14, 1995

VALLEJO, Calif.--(BUSINESS WIRE)--June 14, 1995--Copart Inc. (NASDAQ:CPRT) reported record revenues and earnings for the third quarter ended April 30, 1995, and first nine months of fiscal 1995.

For the third quarter, Copart earned $1,900,700, or 19 cents per share, on revenues of $16,004,900. By comparison, the company reported net income of $629,400, or 8 cents per share, on revenues of $6,609,100 for the same period in fiscal 1994.

For the first nine months, Copart earned $4,749,000, or 48 cents per share, on revenues of $36,675,100. By comparison, the company reported a net loss of $581,200, or 8 cents per share, on revenues of $15,224,200 for the same period in fiscal 1994. In the second quarter of fiscal 1994, the company's results were affected by the acceleration of the remaining original issue discount and debt offering costs in connection with the repayment of subordinated debt.

This resulted in a non-recurring, non-cash charge of approximately $2.7 million. If the adjustment had not occurred, net income and net income per share would have been increased by $1.6 million and 24 cents respectively, for the fiscal 1994 nine-month period.

The 142 percent increase in revenues for the third quarter of fiscal 1995 was due largely to the significant number of acquisitions completed by the company. Existing facility revenues increased by $4.4 million or approximately 72 percent over the comparable period in fiscal 1994, of which revenues from purchased vehicles accounted for approximately $3.3 million of the increase. The balance of the revenue increase in existing operations was due to increased fees of approximately 6 percent and an increase of approximately 13 percent in vehicle volume.

"The third quarter of fiscal 1995 clearly reflects the positive impact of our growth strategy over recent quarters," said Willis Johnson, president and chief executive officer. "With the completion of the NER acquisition as of May 2, the fourth quarter will reflect a near doubling in size of Copart from our position at the beginning of 1995."

Johnson noted that even though Copart has gained broad coverage in major markets, the company anticipates continuing its strategy to expand operations. The company's recent public offering of common stock, together with available credit, provide ample resources for this purpose.

During the third quarter of fiscal 1995, Copart acquired Mid-Ark Salvage Pool Inc., which processes in excess of 11,000 salvage vehicles annually with one facility located in Conway, Ark., north of Little Rock and the other located in West Memphis, Tenn. The company also completed the acquisition of Missouri Auto Storage Pool of St. Louis., which processes in excess of 8,700 salvage vehicles annually, and services metropolitan St. Louis and eastern Missouri.

As of May 1, 1995, Copart completed the acquisition of 20 salvage vehicle auction facilities from NER Auction Group, which processes in excess of 130,000 vehicles annually. NER provides services in New York, Illinois, Florida, New Jersey, Pennsylvania, Maryland, Ohio, Massachusetts, Connecticut, Minnesota, Wisconsin, Virginia, West Virginia, Indiana, Deleware, Rhode Island, Vermont, Maine and New Hampshire. Copart previously had no facilities in these markets.

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.

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 42 facilities in 20 states and processes approximately 328,000 vehicles annually. It also provides services in other locations through its national network of independent salvage vehicle processors. -0-