Copart, Inc. (NASDAQ: CPRT) today reported financial results for
the quarter and year ended July 31, 2015.
For the three months ended July 31, 2015, revenue, gross margin
and net income were $282.3 million, $118.8 million and $57.4
million, respectively. These represent a decrease in revenue of
$5.2 million, or 1.8%; an increase in gross margin of $1.8 million,
or 1.6%; and an increase in net income of $6.4 million, or 12.5%,
respectively, from the same quarter last year. Fully diluted
earnings per share for the three months were $0.44 compared to
$0.39 last year, an increase of 12.8%.
For the year ended July 31, 2015, revenue, gross margin and net
income were $1.1 billion, $483.4 million and $219.8 million,
respectively. These represent a decrease in revenue of $17.4
million, or 1.5%; an increase in gross margin of $14.8 million, or
3.2%; and an increase in net income of $41.1 million, or 23.0%,
respectively, from the same period last year. Fully diluted
earnings per share for the twelve months were $1.67 compared to
$1.36 last year, an increase of 22.8%.
Included in the operating results for the three months ended
July 31, 2015 and 2014 was the impact of the beneficial resolution
of uncertain tax positions, which increased diluted earnings per
share each period by $0.03.
Included in the operating results of the prior year was an
impairment charge of $29.1 million recorded in the third quarter
resulting primarily from the abandonment of work previously
capitalized in connection with the development of a third-party
enterprise operating system.
On Wednesday, September 23, 2015, 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://stream.conferenceamerica.com/copart092315. A replay of the
call will be available through November 22, 2015 by calling (877)
919-4059. Use confirmation code # 13231770.
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 locations, 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, Oman and Bahrain
(www.copartmea.com), India (www.copart.in), and Spain
(www.autoresiduos.com). Copart links sellers to more than 750,000
members in over 150 countries worldwide through its multi-channel
platform. Copart was recently ranked at the top of Deloitte’s
“Exceptional 100” list of companies, which reviewed U.S. publicly
traded companies based upon a multidimensional approach to
measuring financial performance. 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 July 31, Twelve Months
Ended July 31, 2015 2014
2015 2014 Service revenues and vehicle sales:
Service revenues $ 243,671 $ 241,273 $ 985,363 $ 958,413 Vehicle
sales 38,622 46,177 160,716 205,076
Total service revenues and vehicle sales 282,293 287,450 1,146,079
1,163,489 Operating expenses: Yard operations 122,034 122,709
489,158 481,597 Cost of vehicle sales 32,718 38,497 136,412 174,493
Yard depreciation and amortization 8,262 8,551 34,917 36,216 Yard
stock-based payment compensation 495 754 2,216
2,610 Gross margin 118,784 116,939 483,376 468,573 General
and administrative 24,640 32,173 111,381 127,536 General and
administrative depreciation and amortization 3,010 4,825 11,656
17,510 General and administrative stock-based payment compensation
4,369 4,083 15,938 19,489 Impairment of long-lived assets —
— — 29,104 Total operating expenses 195,528
211,592 801,678 888,555 Operating
income 86,765 75,858 344,401 274,934 Other (expense) income:
Interest expense, net (5,372 ) (2,051 ) (17,304 ) (8,277 ) Other
income, net 53 77 4,972 3,378 Total
other expense (5,319 ) (1,974 ) (12,332 ) (4,899 ) Income before
income taxes 81,446 73,884 332,069 270,035 Income taxes 24,034
22,841 112,286 91,348 Net income $
57,412 $ 51,043 $ 219,783 $ 178,687
Basic net income per common share $ 0.46 $ 0.41
$ 1.75 $ 1.42 Weighted average common shares
outstanding 124,743 125,959 125,914 125,693
Diluted net income per common share $ 0.44 $
0.39 $ 1.67 $ 1.36 Diluted weighted average
common shares outstanding 130,205 131,629 131,425
131,230
Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
July 31, 2015 July 31, 2014
ASSETS Current assets: Cash and cash equivalents $ 456,012 $
158,668 Accounts receivable, net 215,696 196,985 Vehicle pooling
costs and inventories 33,562 31,697 Income taxes receivable 6,092
2,288 Deferred income taxes 3,396 1,803 Prepaid expenses and other
assets 19,824 20,850 Total current assets 734,582
412,291 Property and equipment, net 700,402 692,383 Intangibles,
net 17,857 25,242 Goodwill 271,850 283,780 Deferred income taxes
28,840 36,721 Other assets 46,421 56,387 Total assets
$ 1,799,952 $ 1,506,804
LIABILITIES AND
STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and
accrued liabilities $ 147,452 $ 152,156 Deferred revenue 3,724
4,170 Income taxes payable 8,279 8,284 Current portion of long-term
debt and capital lease obligations 53,671 79,674
Total current liabilities 213,126 244,284 Deferred income taxes
5,322 7,372 Income taxes payable 21,157 23,771 Long-term debt and
capital lease obligations, net of discount 592,135 223,227 Other
liabilities 3,748 4,651 Total liabilities 835,488
503,305 Commitments and contingencies Stockholders’ equity:
Preferred stock — — Common stock 12 13 Additional paid-in capital
407,808 404,542 Accumulated other comprehensive loss (68,793 )
(20,060 ) Retained earnings 625,437 619,004 Total
stockholders’ equity 964,464 1,003,499 Total
liabilities and stockholders’ equity $ 1,799,952 $ 1,506,804
Copart, Inc.
Consolidated Statements of Cash
Flows
(In thousands)
(Unaudited)
Twelve Months Ended July 31, 2015
2014 Cash flows from operating activities: Net
income $ 219,783 $ 178,687
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 48,893 53,726 Allowance for doubtful
accounts (578 ) 1,087 Impairment of long-lived assets — 29,104
Stock-based payment compensation 18,154 22,099 Excess tax benefits
from stock-based payment compensation (2,971 ) (2,289 ) Gain on
sale of property and equipment (918 ) (1,461 ) Deferred income
taxes 4,365 (10,838 ) Changes in operating assets and liabilities,
net of effects from acquisitions: Accounts receivable (20,417 )
(12,870 ) Vehicle pooling costs and inventories (2,622 ) 399
Prepaid expenses and other current assets 69 (4,500 ) Other assets
10,125 (8,900 ) Accounts payable and accrued liabilities (3,926 )
5,425 Deferred revenue (438 ) (661 ) Income taxes receivable (806 )
9,267 Income taxes payable (1,971 ) 2,816 Other liabilities (1,666
) 1,503 Net cash provided by operating activities 265,076
262,594
Cash flows from investing activities:
Purchases of property and equipment including acquisitions, net of
cash acquired (79,153 ) (95,810 ) Investment in unconsolidated
affiliate (4,500 ) — Proceeds from sale of property and equipment
1,738 3,707 Net cash used in investing activities
(81,915 ) (92,103 )
Cash flows from financing
activities: Proceeds from the exercise of stock options 3,634
10,412 Excess tax benefit from stock-based payment compensation
2,971 2,289 Proceeds from the issuance of Employee Stock Purchase
Plan shares 3,079 2,339 Repurchases of common stock (237,306 ) (572
) Change in bank overdraft — (16,291 ) Proceeds from the issuance
of long-term debt, net of discount 698,939 — Debt offering costs
(955 ) — Principal payments on long-term debt (350,000 ) (75,000 )
Net cash provided by (used in) financing activities 120,362 (76,823
) Effect of foreign currency translation (6,179 ) 1,369 Net
increase in cash and cash equivalents 297,344 95,037 Cash and cash
equivalents at beginning of period 158,668 63,631
Cash and cash equivalents at end of period $ 456,012 $
158,668
Supplemental disclosure of cash flow
information: Interest paid $ 18,121 $ 8,768
Income taxes paid, net of refunds $ 109,925 $ 82,813
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version on businesswire.com: http://www.businesswire.com/news/home/20150922006470/en/
Copart, Inc.Christopher M. Smith, 972-391-5021Senior
AnalystOffice of the Chief Financial
Officerchristopher.smith3@copart.com
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