It’s been a busy opening to the calendar year for Copart as the global online vehicle auction company also finished the second quarter of its 2019 fiscal year with increases in revenue, gross profit and net income.
For the fifth time since the end of January, Copart announced the opening of a new facility or an expansion of an existing operation as the company enhanced capacity at its Newburgh, N.Y., location, adding 25 acres of storage space to Copart’s existing 68 acres to meet customer capacity needs.
“We are committed to increasing our storage capacity throughout the country to meet the growing demand of our services,” Copart chief executive officer Jay Adair said. “It is a great achievement for our team to add significant vehicle storage space for online auctions at our Newburgh location.”
Copart Newburgh general manager Michael Cassata added, “We are excited to provide our clients with outstanding service levels, which the added storage space at our location helps to make possible.”
The development in Newburgh arrived after Copart opening new facilities in Mocksville, N.C., North Charleston, S.C., and Antelope, Calif., while expanding its existing site in El Paso, Texas.
Meanwhile, Copart also reported that it finished the second quarter of its 2019 fiscal year with rises in revenue, gross profit and net income.
For the three months ended Jan, 31, the company said its revenue, gross profit and net income came in at $484.9 million, $208.2 million and $131.4 million, respectively. These figures represented a year-over-year increase in:
— Revenue of $25.8 million or 5.6 percent
— Gross profit of $16.6 million or 8.7 percent
— Net income of $28.1 million or 27.2 percent
Copart also mentioned fully diluted earnings per share for the most recent quarter were $0.55 compared to $0.43 last year, an increase of 27.9 percent.
For the six-month span that ended Jan. 31, the company tabulated that revenue, gross profit and net income came in at $946.3 million, $404.1 million, and $245.5 million, respectively. These amounts constituted a year-over-year increases in:
— Revenue of $68.0 million or 7.7 percent
— Gross profit of $49.3 million or 13.9 percent
— Net income of $64.7 million or 35.8 percent
Copart added that fully diluted earnings per share for the six months were $1.01 compared to $0.75 last year, an increase of 34.7 percent.
The company went on to note that its operating results for the past three- and six-month spans were adversely affected by abnormal costs of $36.5 million and $72.3 million, respectively, incurred as a result of Hurricane Harvey. These costs included
— Temporary storage facilities
— Premiums for subhaulers
— Labor costs incurred from overtime
— Travel and lodging due to the reassignment of employees to the affected region
— Equipment lease expenses to handle the increased volume, as well as cost of vehicle sales.
Copart computed these costs, net of the associated revenues of $44.8 million and $63.4 million, respectively, generated pre-tax income for the three months ended Jan. 31 of $8.3 million and a pre-tax loss for the six months that ended Jan. 31 of $8.9 million.