Industry Press Releases

Copart Reports First Quarter Fiscal 2015 Financial Results

Monday, Nov 24, 2014
Pressreleases

DALLAS--(BUSINESS WIRE)-- Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2014.

For the three months ended October 31, 2014, revenue, gross margin and net income were $290.4 million, $122.3 million and $52.6 million, respectively. These represent increases in revenue of $10.5 million, or 3.8%; in gross margin of $14.5 million, or 13.4%; and in net income of $11.2 million, or 27.0%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.40 compared to $0.32 last year, an increase of 25.0%.

On Tuesday, November 25, 2014, at 11 a.m. Eastern time, Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live at http://live.conferenceamerica.com:5840/live. A replay of the call will be available through January 24, 2015 by calling (877) 919-4059. Use confirmation code # 60599057.

About Copart

Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its VB3 technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others, as well as cars sourced from the general public. The company currently operates in the United States and Canada (www.copart.com), the United Kingdom (www.copart.co.uk), Brazil (www.copart.com.br), Germany (www.copart.de), the United Arab Emirates (www.copart.ae) and Spain (www.autoresiduos.com). Copart links sellers to more than 750,000 members in over 140 countries worldwide through our online multi-channel platform. For more information or to become a member, visit www.copart.com.

Cautionary Note About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, and these forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the “Management's Discussion and Analysis” and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.

 

Copart, Inc.

 

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

 
Three Months Ended
October 31,
2014 2013
Service revenues and vehicle sales:
Service revenues $ 246,597 $ 226,363
Vehicle sales 43,789 53,520
Total service revenues and vehicle sales 290,386 279,883
 
Operating expenses:
Yard operations 122,145 115,861
Cost of vehicle sales 37,073 46,091
Yard depreciation and amortization 8,860 10,095
Gross margin 122,308 107,836
General and administrative 37,037 38,468
General and administrative depreciation and amortization 2,870 4,409
Total operating expenses 207,985 214,924
Operating income 82,401 64,959
Other (expense) income:
Interest expense, net (1,771 ) (2,137 )
Other income, net 1,593 1,423
Total other expense (178 ) (714 )
Income before income taxes 82,223 64,245
Income taxes 29,608 22,823
Net income $ 52,615 $ 41,422
 
Basic net income per common share $ 0.42 $ 0.33
Weighted average common shares outstanding 126,217 125,460
 
Diluted net income per common share $ 0.40 $ 0.32
Diluted weighted average common shares outstanding 131,517 130,706
 

Copart, Inc.

 

Consolidated Balance Sheets

(in thousands)

(Unaudited)

 
October 31,

2014

July 31,

2014

ASSETS
 
Current assets:
Cash and cash equivalents $ 198,484 $ 158,668
Accounts receivable, net 204,810 196,985
Vehicle pooling costs and inventories 30,986 31,697
Income taxes receivable 404 2,288
Deferred income taxes 4,031 1,803
Prepaid expenses and other assets 18,487 19,505
Assets held for sale 564 1,345
Total current assets 457,766 412,291
Property and equipment, net 691,981 692,383
Intangibles, net 24,259 25,242
Goodwill 276,889 283,780
Deferred income taxes 35,474 36,721
Other assets 50,217 56,387
Total assets $ 1,536,586 $ 1,506,804
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 153,799 $ 152,156
Deferred revenue 3,815 4,170
Income taxes payable 25,906 8,284
Current portion of long-term debt and capital lease obligations 76,171 79,674
Total current liabilities 259,691 244,284
Deferred income taxes 6,854 7,372
Income taxes payable 24,227 23,771
Long-term debt and capital lease obligations 203,868 223,227
Other liabilities 4,515 4,651
Total liabilities 499,155 503,305
Commitments and contingencies
Stockholders’ equity:
Preferred stock
Common stock 13 13
Additional paid-in capital 410,629 404,542
Accumulated other comprehensive loss (43,936 ) (20,060 )
Retained earnings 670,725 619,004
Total stockholders’ equity 1,037,431 1,003,499
Total liabilities and stockholders’ equity $ 1,536,586 $ 1,506,804

 

 

Copart, Inc.

 

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 
Three Months Ended
October 31,
2014 2013
Cash flows from operating activities:
Net income $ 52,615 $ 41,422
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 13,967 14,504
Allowance for doubtful accounts 113 350
Stock-based compensation 4,366 4,867
Excess tax benefits from stock-based compensation (361 ) (58 )
Gain on sale of property and equipment (261 ) (674 )
Deferred income taxes (1,295 ) (3,010 )
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable (9,004 ) (4,706 )
Vehicle pooling costs and inventories 272 1,066
Prepaid expenses and other current assets 633 (3,699 )
Other assets 2,586 (15,027 )
Accounts payable and accrued liabilities (79 ) 6,483
Deferred revenue (353 ) (654 )
Income taxes receivable 2,236 7,633
Income taxes payable 18,434 16,909
Other liabilities (503 ) 2,309
Net cash provided by operating activities 83,366 67,715
 
Cash flows from investing activities:
Purchases of property and equipment including acquisitions (23,388 ) (21,595 )
Proceeds from sale of property and equipment 689 853
Net cash used in investing activities (22,699 ) (20,742 )
 
Cash flows from financing activities:
Proceeds from the exercise of stock options 1,931 82
Excess tax benefit from stock-based compensation 361 58
Principal payments on long-term debt (18,750 ) (18,750 )
Change in bank overdraft (16,291 )
Repurchase of common stock (1,121 ) (80 )
Net cash used in financing activities (17,579 ) (34,981 )
 
Effect of foreign currency translation (3,272 ) 1,429
 
Net increase in cash and cash equivalents 39,816 13,421
 
Cash and cash equivalents at beginning of period 158,668 63,631
Cash and cash equivalents at end of period $ 198,484 $ 77,052
 
Supplemental disclosure of cash flow information:
Interest paid $ 1,910 $ 2,286
Income taxes paid $ 10,030 $ 1,548