UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
September 22, 2015
Date of Report (date of earliest event reported)              

Copart, Inc.
(Exact name of Registrant as specified in its charter)

Delaware
0-23255
94-2867490
(State or other jurisdiction of
(Commission File Number)
(I.R.S. Employer
incorporation or organization)
 
Identification Number)

14185 Dallas Parkway, Suite 300
Dallas, Texas 75254
(Address of principal executive offices)

(972) 391-5000
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ] Written communication pursuant to Rule 425 under Section Act (17 CFR 230.425)
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).




INFORMATION INCLUDED IN THIS REPORT
Section 2 — Financial Information
Item 2.02 Results of Operations and Financial Condition
The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing.
On September 22, 2015, Copart, Inc. issued a press release announcing its financial results for the fourth quarter of fiscal year 2015, which ended July 31, 2015. The full text of the press release is furnished herewith as Exhibit 99.1.
Section 9 — Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibit is furnished herewith:
Exhibit
Number
Description
99.1
Press release, dated September 22, 2015 of Copart, Inc. announcing its financial results for the fourth quarter of fiscal year 2015, which ended July 31, 2015.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated:     September 22, 2015                 Copart, Inc.
 
 
              
By: 
/s/ William E. Franklin
 
 
 
William E. Franklin
 
 
 
Executive Vice President and
 
 
 
Chief Financial Officer




INDEX TO EXHIBITS
Exhibit
 
 
Number
       
Description
99.1
 
Press release, dated September 22, 2015 of Copart, Inc. announcing its financial results for the fourth quarter of fiscal year 2015, which ended July 31, 2015.







Copart, Inc.
For Immediate Release
Copart Reports Fourth Quarter Fiscal 2015 Financial Results
Dallas, Texas. (September 22, 2015) — 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.


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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



Copart, Inc.
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.
Contact:       
Christopher M. Smith, Senior Analyst, Office of the Chief Financial Officer
 
972-391-5021 or christopher.smith3@copart.com



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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



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



- 3 -
Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



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




- 4 -
Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



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


- 5 -
Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000

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