CPRT Copart Inc

Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2015.

For the three months ended October 31, 2015, revenue, gross margin and net income were $288.8 million, $120.9 million and $52.4 million, respectively. These represent a decrease in revenue of $1.5 million, or 0.5%; a decrease in gross margin of $1.4 million, or 1.2%; and a decrease in net income of $0.2 million, or 0.4%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.42 compared to $0.40 last year, an increase of 5.0%.

On Tuesday, November 24, 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/copart112415. A replay of the call will be available through January 23, 2016 by calling (877) 919-4059. Use confirmation code # 31733054.

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. Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

    Three Months Ended October 31, 2015   2014 Service revenues and vehicle sales: Service revenues $ 250,967 $ 246,597 Vehicle sales 37,871   43,789   Total service revenues and vehicle sales 288,838 290,386 Operating expenses: Yard operations 126,878 121,599 Cost of vehicle sales 32,068 37,073 Yard depreciation and amortization 8,345 8,860 Yard stock-based payment compensation 686   546   Gross margin 120,861 122,308 General and administrative 26,711 33,217 General and administrative depreciation and amortization 3,176 2,870 General and administrative stock-based payment compensation 4,728   3,820   Total operating expenses 202,592   207,985   Operating income 86,246 82,401 Other (expense) income: Interest expense, net (5,513 ) (1,771 ) Other income, net 1,027   1,593   Total other expenses (4,486 ) (178 ) Income before income taxes 81,760 82,223 Income taxes 29,347   29,608   Net income $ 52,413   $ 52,615     Basic net income per common share $ 0.44   $ 0.42   Weighted average common shares outstanding 120,155   126,217     Diluted net income per common share $ 0.42   $ 0.40   Diluted weighted average common shares outstanding 125,572   131,517     Copart, Inc. Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

    October 31, 2015   July 31, 2015 ASSETS Current assets: Cash and cash equivalents $ 472,916 $ 456,012 Accounts receivable, net 231,403 215,696 Vehicle pooling costs and inventories 35,707 33,562 Income taxes receivable 950 6,092 Deferred income taxes 2,055 3,396 Prepaid expenses and other assets 42,625   19,824   Total current assets 785,656 734,582 Property and equipment, net 705,590 700,402 Intangibles, net 16,229 17,857 Goodwill 270,620 271,850 Deferred income taxes 30,636 28,840 Other assets 47,033   46,421   Total assets $ 1,855,764   $ 1,799,952     LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 147,342 $ 147,452 Deferred revenue 3,719 3,724 Income taxes payable 30,444 8,279 Current portion of long-term debt and capital lease obligations 42,421   53,671   Total current liabilities 223,926 213,126 Deferred income taxes 5,194 5,322 Income taxes payable 22,395 21,157 Long-term debt and capital lease obligations, net of discount 584,302 592,135 Other liabilities 3,402   3,748   Total liabilities 839,219 835,488 Commitments and contingencies Stockholders' equity: Preferred stock — — Common stock 12 12 Additional paid-in capital 413,423 407,808 Accumulated other comprehensive loss (74,740 ) (68,793 ) Retained earnings 677,850   625,437   Total stockholders' equity 1,016,545   964,464   Total liabilities and stockholders' equity $ 1,855,764   $ 1,799,952     Copart, Inc. Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

   

Three Months Ended

October 31,

2015   2014 Cash flows from operating activities: Net income $ 52,413 $ 52,615 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,562 13,967 Allowance for doubtful accounts 1,032 113 Equity in losses of unconsolidated affiliates 158 — Stock-based payment compensation 5,414 4,366 Excess tax benefits from stock-based payment compensation (197 ) (361 ) Gain on sale of property and equipment (60 ) (261 ) Deferred income taxes (870 ) (1,295 ) Changes in operating assets and liabilities, net of effects from acquisitions: Accounts receivable (16,910 ) (9,004 ) Vehicle pooling costs and inventories (2,252 ) 272 Prepaid expenses and other current assets (1,115 ) 633 Other assets (1,036 ) 2,586 Accounts payable and accrued liabilities 77 (79 ) Deferred revenue (5 ) (353 ) Income taxes receivable 5,333 2,236 Income taxes payable 23,483 18,434 Other liabilities (433 ) (503 ) Net cash provided by operating activities 76,594 83,366   Cash flows from investing activities: Purchases of property and equipment (20,167 ) (23,388 ) Proceeds from sale of property and equipment 443 689 Purchases of marketable securities (21,119 ) —   Net cash used in investing activities (40,843 ) (22,699 )   Cash flows from financing activities: Proceeds from the exercise of stock options 368 1,931 Excess tax benefit from stock-based payment compensation 197 361 Repurchases of common stock — (1,121 ) Principal payments on long-term debt (18,750 ) (18,750 ) Net cash used in financing activities (18,185 ) (17,579 ) Effect of foreign currency translation (662 ) (3,272 ) Net increase in cash and cash equivalents 16,904 39,816 Cash and cash equivalents at beginning of period 456,012   158,668   Cash and cash equivalents at end of period $ 472,916   $ 198,484   Supplemental disclosure of cash flow information: Interest paid $ 5,723   $ 1,910   Income taxes paid, net of refunds $ 1,292   $ 10,030  

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Copart, Inc.Christopher M. Smith, 972-391-5021Senior Analyst, Office of the Chief Financial Officerchristopher.smith3@copart.com