Copart Pleased with 3Q Income Gains
FAIRFIELD, Calif. — Copart executives kept their fiscal third-quarter analysis short since they were so happy about healthy jumps in both their operating income and net income levels.
As compared to the same quarter of the 2009 fiscal year, Copart's operating income climbed 11.2 percent — about $7.2 million — to $72.1 million. Its net income increased by almost the same rate, 9.6 percent. That figure jumped $3.9 million to $44.4 million.
Copart also divulged its fully diluted earnings per share from continuing operations for the third quarter were 52 cents compared to 48 cents in the 2009 fiscal quarter. This represented an increase of 8.3 percent.
Sparking those results was an overall 11.7-percent spike in third-quarter revenue. Executives indicated revenue moved higher by $23.0 million to $220.3 million.
"As you can see from the results, we had a great quarter," Copart chief executive officer Jay Adair stressed during a conference call last week when the company released its latest financial statement.
Turning to the nine-month span that also wrapped up on April 30, Copart again enjoyed handsome gains in income and revenue.
The company's operating income rose by 7 percent — or $11.9 million — to $181.9 million while its net income increased by 10 percent — or $10.5 million — to $181.9 million. Copart said revenue came in at $582.4 million, an increase of $23.7 million — or 4.2 percent — from the prior fiscal-year span.
As a result, executives revealed fully diluted earnings per share from continuing operations for that nine-month span were $1.36 compared to $1.23 last fiscal year. That upward movement computed into an increase of 10.6 percent.
Another balance sheet element Copart highlighted was its amount of cash on hand. As of April 30, it stood $264.2 million. At the close of its 2009 fiscal year, the amount was $162.2 million.
Adair also touched on Copart's blossoming agreement with Allstate. Executives revealed back in February they had been chosen to be the exclusive national provider of vehicle sales and auction services for Allstate.
On top of the services offered in the United States, Copart also was selected to be the insurance company's exclusive auction services provider in Ontario, Canada.
Adair initially predicted that integration for this agreement would take 12 to 18 months. During the conference call, he shaved that time frame down to between six and 12 months.
"Things are going well. I will tell you we are excited about the new business. Allstate has been fantastic to work with. The integration has been very smooth," Adair asserted.