Coinciding with the release of its first-quarter performance for its 2016 fiscal year, Copart tapped a new senior vice president of finance and chief financial officer on Tuesday; an executive who will take over the position effective Jan. 4.
Copart’s new CFO will be Jeffrey Liaw, who has served as the chief financial officer of FleetPride, a privately held company that distributes truck and trailer parts nationwide.
Copart also mentioned William Franklin, currently the company’s executive vice president and chief financial officer, will continue his role as executive vice president and be responsible for U.S. operations and shared services.
Executives said Liaw has been with FleetPride since January 2013. From August 2005 to December 2012, Liaw was a principal of TPG Capital Management, a private equity firm.
Liaw earned undergraduate degrees from the University of Texas in 1999, and he earned his MBA from Harvard University in 2005.
Q1 Results
For the three-month span that ended Oct. 31, Copart reported that its revenue, gross margin and net income came in at $288.8 million, $120.9 million and $52.4 million, respectively.
Officials computed these figures represent a decrease in revenue of $1.5 million, or 0.5 percent; a decrease in gross margin of $1.4 million, or 1.2 percent; and a decrease in net income of $0.2 million, or 0.4 percent, respectively, from the same quarter last year.
Copart added fully diluted earnings per share for the quarter were $0.42 compared to $0.40 last year, an increase of 5.0 percent.
Tender offer for common stock
Also on Tuesday, Copart announced it has commenced a modified “Dutch Auction” tender offer to purchase up to 7,317,073 shares of its common stock at a purchase price not greater than $41.00 nor less than $38.00 per share.
Executives explained the number of shares proposed to be purchased in the tender offer represents approximately 6.1 percent of the approximately 120,236,510 shares of Copart common stock currently outstanding.
Assuming 7,317,073 shares are repurchased at the maximum price of $41.00 per share in the tender offer, the company will repurchase a total of approximately $300.0 million of its common stock in the tender offer. The last reported trading price of Copart common stock on the NASDAQ Global Select Market on Monday was $37.20 per share.
The tender offer will expire at 5 p.m. ET on Dec. 23, unless extended by Copart. Executives mentioned tenders of Copart’s common stock must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer.
“The tender is subject to conditions and other terms set forth in the tender offer materials that are being distributed to stockholders and filed with the Securities and Exchange Commission,” the company said.
On the terms and subject to the conditions of the tender offer, executives added that Copart’s stockholders will have the opportunity to tender some or all of their shares within the $38.00 to $41.00 per share range. Based on the number of shares tendered and the prices specified by the tendering stockholders, Copart will select the lowest purchase price within the price range that will enable it to buy 7,317,073 shares, or such lesser number of shares that are tendered and not withdrawn.
All shares accepted in the tender offer will be purchased at the same price per share even if the stockholder tendered at a lower price,” the company said.
“If stockholders tender more than 7,317,073 shares at or below the purchase price per share, Copart will purchase the shares tendered at or below the determined purchase price by those stockholders, subject to proration and certain other factors,” Copart went on to say.
All of Copart’s directors and executive officers have advised Copart that they do not intend to tender any of their shares in the tender offer.
“None of Copart, its directors and officers, the information agent, or the depositary is making any recommendation to stockholders as to whether to tender or refrain from tendering their shares into the tender offer or as to the purchase price or purchase prices at which stockholders may choose to tender their shares,” executives said.
“Stockholders must make their own decisions as to how many shares they will tender, if any,” they continued. “In so doing, stockholders should read and evaluate carefully the information in the offer to purchase and related letter of transmittal to be distributed to holders of Copart common stock,” they added.
A wide array of wholesale industry news developed in recent days, including a new philanthropic award handed out by Cox Automotive, a milestone at Dealers Auto Auction of the Southwest and a leadership change at EPI El Paso.
During the accolade-filled luncheon at the National Remarketing Conference, Cox Automotive presented its inaugural Community Impact Award to Joey Huang of Great Lakes Auto of Ashtabula, Ohio. Presented by Grace Huang, senior vice president of inventory services at Manheim, this award recognizes a remarketing industry leader for their outstanding contributions to their community and the innovative ways they collaborate with community partners to help further their missions and shape better communities.
“Community service and inspiring others to shape a better world has long been a part of our culture,” Grace Huang said. “I’d like to congratulate Joey for embodying these principles and for demonstrating how every person, every organization, every day can make a difference when it comes to serving their community.”
Joey Huang, owner of Great Lakes Auto, was honored by Cox Automotive for distinguishing himself in outstanding service to his community. Top among his many accomplishments was the creation of a program throughout his dealership network that helped raise more than $200,000 for local schools during the past four years.
As chairman of Hyundai Motor’s Hope on Wheels charity, Huang partnered with Cleveland area Hyundai dealers to raise $50,000 for the Rainbow Babies and Children’s Hospital to benefit pediatric cancer research.
In addition to his fundraising efforts, Huang has offered his time to numerous civic and industry organizations over the years, including the Ashtabula County YMCA where he serves as a member of its board of directors and helps guide facility improvements.
“I am honored to be the first recipient of the Cox Automotive Community Impact Award and to be recognized for creating positive change in my community,” Joey Huang said.
For his leadership and commitment to making a difference through community service, Huang will receive a $10,000 donation to the charity of his choice.
“This will allow us to continue doing the things we are passionate about not only at our dealerships, but throughout our community,” Joey Huang added.
Anniversary in Arizona
Dealers Auto Auction of the Southwest general manager Stephanie Gingras recapped how the operation recently celebrated its 13th year with an anniversary month of sales in October, culminating in a Halloween event marked by 700 vehicles crossing the block and a 70-percent sale.
“Since DAA Southwest was opened 13 years ago, we’ve not only grown to lead our market niche but have set a new standard with innovation and efficiency,” Gingras said.
“To mark this year’s anniversary, we focused on thanking our customers for their years of loyalty and support and had a great time doing it with a Halloween costume party and an exciting prize giveaway, sending one of our great buyers home with a Nissan sedan,” she continued
Gingras noted that all customers buying vehicles at DAA of the Southwest during the month of October qualified for the grand prize giveaway.
“We haven’t become number one in our market without a heavy dose of superior customer service,” said auction vice president and past NAAA president Jim DesRochers.
“We have worked hard and successfully to identify buyers who target our specific market niche, and we’ve made those buyers regular auction customers by providing them with all the technology and mobile tools they need to easily and efficiently access all of our services,” DesRochers continued.
Technology features available to DAA of the Southwest’s customers include:
— The DAASW mobile app with integrated digital bidder badge
— Customer online access to account information via the mobile app and auction website
— 100 percent simulcast of every consigned vehicle at every sale
— Direct access to key auction personnel via mobile technology
— Seamless wireless uploads via iPad of all condition reports, images and videos for every consigned unit in every sale
“Our 360 Degree Customer Service Program has changed the way business is handled at DAA of the Southwest,” Gingras said. “Including CARFAX Transparent Transactions, Mexico Ready and digital bidder badges, along with direct access to all areas of our staff and management, our 360 Customer Service tools are all DAASW.com and .MX's proprietary products that you won't see at any other auction.”
In addition to technological enhancements, the auction has also noted steady increases in vehicle volume over the past 12 months, resulting in the opening of a sixth auction lane in January. Gingras explained that increases in consignment volume from both the repo and dealer segments of the market prompted the sale-day expansion.
“DAA of the Southwest provides the best market for buying and selling vehicles in the region, and has the customer service programs to make the process as efficient and convenient as possible,” Gingras said.
“We’re proud of the advancements we’ve made over the past 13 years, and look forward to continued growth, success and innovation in the years ahead,” she went on to say.
EPI El Paso names general manager
Auction president Bob McConkey and general manager Lori Pidgeon shared this news with El Paso customers during the auction’s Touchdown Drive promotional event sale: in a move that was effective last week, Pidgeon transitions from EPI’s general manager into a new role with the McConkey Auction Group.
Luke Pidgeon, who has served as EPI El Paso’s assistant general manager since 2013, assumes the role of general manager.
“Lori came to us with over 20 years of auction experience, and she has done an outstanding job of building a solid team in El Paso,” McConkey said. “As a member of that team, Luke has earned the upmost respect of EPI’s staff and customers; he possesses the knowledge and leadership skills to build upon the legacy that Lori has established.
“We congratulate Lori on her success and we are thrilled to keep her on our team as her role evolves,” McConkey added.
While eager to return to the Pacific Northwest, the operation acknowledged Lori Pidgeon departure from El Paso is bittersweet.
“The past five years have been extremely rewarding, both professionally and personally,” she said. “It was a privilege to guide a team of hard working, caring employees in developing a solid footprint in El Paso.”
Lori Pidgeon’s new position with the McConkey Auction Group will include working on special projects, human resources and more for all four MAG locations. She will be based in Portland, Ore.
TrueCar announced Monday morning that Chip Perry — who started what it is now known as Autotrader — will be its next president and chief executive officer.
That move becomes effective Dec. 15, when TrueCar founder Scott Painter formally steps down from his CEO, chairman and board of directors posts.
In 1997, Perry became the first employee of what is now Autotrader. He was CEO until 2013.
“I’ve followed TrueCar’s progress for many years and am truly excited to be joining the company. TrueCar has built incredible tools for car buyers and retailers and has a strong base on which to grow,” Perry said. “My initial focus will be on TrueCar’s dealer partners – listening to them and finding ways to serve them better.”
Perry added: “I know as well as anybody what is required to take the spark of an idea and turn it into a thriving business, and that is what Scott did for TrueCar. Thanks to his leadership we have an extremely strong management team, a talented and enthusiastic employee base and an unflagging commitment to improving the car-buying experience for both consumers and dealers. I will put my full energy into helping TrueCar become all it can be.”
Painter noted: “As founder of TrueCar, I’m proud of what we’ve accomplished, but it’s time for a change and we have found exactly the right person for the job.”
FCA US announced Friday it appointed a new head of vehicle safety and regulatory compliance.
Chosen for the position is Michael Dahl. The move is effective Dec. 1, and Dahl will be replacing Scott Kunselman, who previously announced his decision to retire.
Prior to his new position, Dahl was the director of gasoline/diesel engine programs and global powertrain coordination, where he oversaw the development and launch of six new engines, including the 3.0-liter EcoDiesel V-6. Previous to that, he was director of supplier quality.
The new safety leader joined the company back in 1985 as part of the Chrysler Institute of Engineering (CIE) program.
“He has held a series of positions of increasing responsibility with an emphasis on powertrain engineering, controls, and electronics,” company management shared.
Manheim announced Tuesday it has chosen a vice president of product management to help deliver a better experience for its clients.
Promoted to the role is Stephen Smith, who will now help guide the development of strategic products services.
“Stephen’s wholesale and retail marketing expertise, coupled with his knowledge of understanding the challenges clients face in identifying the right products for their business, make him the ideal choice for this important role,” said Grace Huang, senior vice president of inventory services at Manheim North America. “With Stephen’s track record of product leadership, I know we will deliver innovative tools and services to help our clients succeed.”
Smith, who was most recently senior director of customer marketing, will now oversee a team of product managers that are responsible for developing and launching new products and services. He will also work closely with the Inventory Services team to “ensure that Manheim’s product offerings are aligned to support the company’s growth strategy,” the company shared.
In his previous marketing position, Smith works to develop and activate marketing strategy for Manheim North America.
Manheim also shared Smith demonstrates parent company Cox Automotive’s values through his volunteer work with the Rally Foundation for Childhood Cancer Research, Children’s Restoration Network and Foster Care Support Foundation.
Manheim launches holiday campaign
In other news from Manheim, the company is once again holding its month-long “Dashing Through the Lanes” holiday campaign this year.
The nationwide campaign works to unite the teams at Manheim’s U.S. locations with avenues for local giving opportunities, the company said.
“As last year’s campaign attracted strong in-lane attendance and positive feedback, we wanted to again show our support while helping our dealer clients get a great start to the new year,” said Chris Hood, director of brand marketing, Manheim. “The campaign is a fun way to let them know that despite the hectic holiday season, we are here to ensure they get the inventory they need.”
The campaign launched Monday and will go through Dec. 20. During this window, dealers who attend any of Manheim’s sales in-lane or via Simulcast will automatically be entered to win daily prize package giveaways.
OVE.com will join in the fun, celebrating "12 Days of Dashing’" from Dec. 1 through Dec. 12. During this time, OVE.com will give daily prizes to select dealer clients who complete online transactions.
Manheim also holds a Tire Wreath contest during the campaign. Employees at every Manheim location are encourages to design a holiday-themed wreath using recycled tires.
Last year, more than 100 tires were re-used in this fashion, and in addition, thousands of dollars were donated to local charities during Tire Wreath auctions held at local in-lane sales events.
During the inaugural holiday campaign in 2014, the company said lane attendance spiked almost 12 percent, and more than 6,000 dealer clients increased their year-over-year purchase volume.
“The best part about ‘Dashing Through the Lanes’ is the opportunity to spread goodwill and holiday cheer in the communities in which we serve,” said Hood.
To learn more, see www.dashingthroughthelanes.com.
If you needed another sign of the automotive market’s momentum — on top of growing new and used sales — hiring is on the upswing, as well.
Edmunds.com announced it will be hiring for 100 new positions in the coming weeks, in light of the company’s recent growth.
The news comes as the auto industry is set to notch an annual record for new-car sales in the U.S. Automakers have sold 14.5 million new vehicles in the U.S. over the first 10 months of the year, and Edmunds.com analysts predict this year’s new sales will go beyond the record 17.35 million new vehicles sold in 2000.
"This year is shaping up to be Edmunds' most successful year yet, and as a profitable, family-owned company, we're exceptionally proud of how far we've come to establish ourselves as the indispensable resource for both car buyers and sellers," said Edmunds.com chief executive officer Avi Steinlauf. "But we know that there's a lot more work to do. That's why we're doubling down on our efforts to bring Edmunds' products and services to more shoppers and dealers so that we can deliver even more simplicity to the car shopping experience."
Edmunds.com management said about 80 of the 100 job opening are within its “Tier 3” dealers sales department, which has doubled its network of dealer partners over the last three years. Edmunds currently works with 13,000 new and used dealer partners across the country, making up more than 3.5 million new- and used-car listings on Edmunds.com.
For more information about the open positions, see http://www.edmunds.com/careers/.
National independent third-party inspection company Alliance Inspection Management announced Tuesday the appointment of a new national director of new car and claims management accounts.
Taking on the role is Susan Yee, a former 20-year veteran of General Motors.
According to the company, in the new position, Yee will be responsible for directing the day-to-day new-car sales operation, managing existing accounts and business relationships, and fostering growth for the company in the new-car vehicle inspection and claims management markets.
Yee will also be responsible for identifying future products and services to improve AiM’s current range of products.
“The addition of Susan strengthens AiM’s expertise and leadership position in the category,” said Eric Widmer, senior vice president of marketing and sales at AiM. “Her proven track record at GM put her at the front of the class for this position. We’re thrilled to have her as part of the AiM team.”
Before departing GM after two decades of service, Yee’s last position with the manufacturer was Manufacturing Engineer – Red X Problem Solver. Her educational background includes a Master of Science in Manufacturing Management and a Bachelor of Science in Industrial Engineering, both from Kettering University.
To find out more about AiM, visit its site here.
John Felice — whose time with Ford dates back to 1984 and includes time with the remarketing department as well as sales in the U.S. and Asia — landed a new executive role on Monday with motormindz, a global automotive professional services and technology company.
Felice is now a part of motormindz as a senior partner.
As an industry veteran with Ford since 1984, Felice’s 30-year tenure enabled him to serve in a variety of senior leadership roles in the U.S. and Asia including leading the marketing, sales and service organizations in both regions.
In his most recent role with Ford, as officer and vice president, U.S. marketing, sales and service, Felice was instrumental in growing the business by building the Ford brand with both customers and Ford dealerships across the nation. During his career he also served as president, Ford Thailand Operations and as director of fleet, leasing and remarketing operations.
“We are beyond thrilled to have John join our team as we continue our rapid, global growth. John epitomizes the core values of what we represent as an organization along with our endless commitment to delivering new, disruptive solutions and technologies to the automotive industry,” said Jeff Van Dongen, founder of chief executive officer of motormindz.
Felice joins a team of industry notables at motormindz, including former senior executives from some of the world’s most prominent automotive brands, industry recognized thought-leaders, technologists and automotive retail advisors.
The company added motormindz focuses on identifying key critical challenges within the industry with the objective of finding, assessing, and delivering the most viable solutions to key decision makers in which John will help play a vital role.
“I am excited to join a team who shares my vision and values for integrity, innovation, and entrepreneurship,” Felice said.
“It is a tremendous opportunity to continue to support the auto industry and retail distribution network with cutting edge technologies to drive new efficiencies, cost savings and sales opportunities,” he went on to say.
The same day Tesla announced its third-quarter financial results, which included delivering a record 11,602 vehicles, the automaker also promoted new leadership in finance and sales and service.
Jason Wheeler is Tesla’s next chief financial officer, while Jon McNeill becomes president of global sales and service.
The new CFO joins Tesla after spending 13 years at Google, where he was vice president of finance and headed up Google’s global finance function. Wheeler is replacing Deepak Ahuja, who announced his retirement from Tesla earlier this year. Wheeler will assume the new position on Nov. 30, and Deepak will remain at Tesla for a few more months to help with the transition.
"What the Tesla team has achieved in building compelling alternatives in transport and energy is simply incredible. I am so excited to join an amazing team dedicated to such a broad and inspiring mission. Looking forward to jumping into the fast lane," said Wheeler.
McNeill is the former CEO of Enservio. Before leading Enservio, he co-founded Sterling Collision Centers, and back in 1993 McNeil founded First Notice Systems.
"Very few companies are literally changing the world for the better — Tesla is. I'm thrilled to join this incredible team," said McNeill.
Moving on to highlight some of the key points from the company’s conference call held Tuesday, some of the stats served to put investors’ minds at ease, according to industry analysts.
Karl Brauer, senior analyst for Kelley Blue Book, commented on Tesla earnings:
“When Tesla’s earlier claims of 55,000 deliveries in 2015 were adjusted down a few months ago, investors wondered if that reduction was a singular event or the start of a pattern of reduced delivery estimates. With the third quarter production numbers in, and Musk’s assertion that 50,000 to 52,000 cars will be delivered in 2015, investors are feeling less nervous and the stock reflects it,” he said. “There’s still the near-term issue of Model X production and Model 3 launch timing, both of which need to remain on schedule for Tesla to keep growing sales, but for now the company’s third quarter numbers appear ‘close enough’ to keep Wall Street happy.”
In the company’s Q3 shareholder letter, Tesla gave an update on its certified pre-owned program, as well.
According to the letter, the number of pre-owned Tesla vehicles sold in Q3 exceeded the number of customer trade-ins received, which resulted in a 17-percent reduction in trade-in unit inventory. Since the launch of the CPO program this past April, many analysts have been interested in how Tesla aims to source the certified program.
On the new side of the market, Tesla shared it delivered a record 11,602 new vehicles in Q3, while also launching the Model X and starting deliveries for this model, as well.
And since the launch of the Model X, the company’s first SUV, Tesla management shared order rates for both Model S and Model X vehicles is growing.
“Although it is too early to draw firm conclusions, this supports our belief that Model X expands the market for Tesla vehicles, with little to no cannibalization of Model S,” the letter stated.
Maintaining adequate supply of these vehicles has also been a concern for the company, but in Q3, the company exceeded its initial plan by producing 13,091 vehicles, including the first Model X vehicles — despite a one-week factory shut down to expand manufacturing capacity.
Tesla also directly leased 494 cars to customers in Q3, worth $45 million of aggregate transaction value, according to the shareholder letter.
Looking ahead to Q4, the company shared it expects to build 15,000 to 17,000 vehicles, and deliver 17,000 to 19,000 vehicles, which it said will result in 50,000 to 52,000 total deliveries for the year.
And the company is still on track to launch its Model 3, which will go for around $35,000, in late March 2016.
In analysis released earlier this fall when the Tesla X first launched, Edmunds.com director of industry analysis Jessica Caldwell said: "There's little doubt in the marketplace that Model X will be successful with its audience of wealthy early adopters. But today's launch is a quick stop on a longer and more important journey.
“The real test for Tesla comes down the road when it launches the Model 3, when we'll learn for sure if mainstream car buyers are ready to make the switch from gas to electric,” she added.
Millennium Capital and Recovery continued its series of strategic additions to its executive management team by recently tapping Jeffrey Marsh as chief business development officer.
The company emphasized Marsh’s addition further demonstrated Millennium’s commitment to current and future clients through the continued strengthening of its leadership team with Steve Todd serving as senior vice president and chief operating officer, the previous hiring of Alison Kinnear as the company’s general counsel and chief compliance officer and several other new leadership roles and resources in the core areas of finance, technology and customer relations during the past 12 months.
“This is a pivotal point in Millennium’s development. Today’s business climate requires expertise in marketing through technology, improved communication and cultivating long-term business relationships, all the while creating a connectivity with the end consumer that meets or exceeds the expectations of our clients and industry,” Millennium president Jayne Bronchetti said.
Marsh has expertise in driving the growth of businesses in a wide range of industries. He has previously served as president of the World Reserve Monetary Exchange and Arthur Middleton Capital Holdings, has led the growth of several privately held companies and co-founded several e-commerce startups.
Marsh has brokered deals with more than 15 nations and 25 Fortune 500 companies (17 slots on the current Fortune 500 and Fortune Global 500 are held by Millennium clients).
Marsh is a graduate of Plymouth State University in New Hampshire.
“Jeff’s customer-centric focus fits exactly with Millennium’s philosophy and dedication to our clients’ success. His expertise in driving long-term growth and forging strategic partnerships supports our commitment to being the premier third-party service provider in our industry,” Bronchetti said.
