Copart, Inc. (NASDAQ: CPRT) today reported financial results for
the quarter ended April 30, 2016.
For the three months ended April 30, 2016, revenue, gross
margin, and net income were $347.2 million, $157.6 million, and
$74.0 million, respectively. These represent an increase in revenue
of $50.1 million, or 16.9%; an increase in gross margin of $30.2
million, or 23.7%; and an increase in net income of $16.5 million,
or 28.6%, respectively, from the same quarter last year. Fully
diluted earnings per share for the three months were $0.64 compared
to $0.44 last year, an increase of 45.5%.
For the nine months ended April 30, 2016, revenue, gross margin,
and net income were $935.8 million, $403.1 million and $185.4
million, respectively. These represent an increase in revenue of
$72.0 million, or 8.3%; an increase in gross margin of $38.5
million, or 10.6%; and an increase in net income of $23.0 million,
or 14.2%, respectively, from the same period last year. Fully
diluted earnings per share for the nine months were $1.51 compared
to $1.23 last year, an increase of 22.8%.
On Thursday, May 26, 2016, 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/copart05262016. A replay of the
call will be available through July 25, 2016 by calling (877)
919-4059. Use confirmation code # 73323554.
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, financial
institutions, charities, car dealerships, fleet operators, vehicle
rental companies, 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), Spain
(www.autoresiduos.com), Ireland (www.copart.ie), and India
(www.copart.in). 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 April 30, Nine Months
Ended April 30, 2016 2015
2016 2015 Service revenues and vehicle sales:
Service revenues $ 303,507 $ 256,564 $ 814,891 $ 741,692 Vehicle
sales 43,739 40,578 120,899 122,094
Total service revenues and vehicle sales 347,246 297,142 935,790
863,786 Operating expenses: Yard operations 142,802 125,348 401,721
367,124 Cost of vehicle sales 37,744 34,503 103,939 103,694 Yard
depreciation and amortization 8,339 9,248 24,932 26,655 Yard
stock-based payment compensation 714 626 2,076
1,721 Gross margin 157,647 127,417 403,122 364,592 General
and administrative 27,360 25,940 78,447 86,741 General and
administrative depreciation and amortization 4,019 2,916 10,638
8,646 General and administrative stock-based payment compensation
4,320 3,794 13,758 11,569 Total
operating expenses 225,298 202,375 635,511
606,150 Operating income 121,948 94,767 300,279 257,636
Other (expense) income: Interest expense, net (5,419 ) (5,656 )
(15,900 ) (11,932 ) Other income, net 39 (815 ) 5,501
4,919 Total other expenses (5,380 ) (6,471 ) (10,399 )
(7,013 ) Income before income taxes 116,568 88,296 289,880 250,623
Income taxes 42,552 30,733 104,488 88,252
Net income $ 74,016 $ 57,563 $ 185,392
$ 162,371 Basic net income per common share $ 0.67
$ 0.46 $ 1.58 $ 1.29 Weighted average
common shares outstanding 110,543 126,415 117,071
126,309 Diluted net income per common share $
0.64 $ 0.44 $ 1.51 $ 1.23 Diluted
weighted average common shares outstanding 116,388 132,124
122,692 131,837
Copart, Inc.
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
April 30, 2016 July 31, 2015 ASSETS
Current assets: Cash and cash equivalents $ 137,653 $ 456,012
Accounts receivable, net 263,292 215,696 Vehicle pooling costs and
inventories 41,210 33,562 Income taxes receivable 2,772 6,092
Deferred income taxes 668 3,396 Prepaid expenses and other assets
18,910 19,824 Total current assets 464,505 734,582
Property and equipment, net 806,973 700,402 Intangibles, net 13,390
17,857 Goodwill 267,367 271,850 Deferred income taxes 31,245 28,840
Other assets 40,655 46,421 Total assets $ 1,624,135
$ 1,799,952
LIABILITIES AND STOCKHOLDERS’
EQUITY Current liabilities: Accounts payable and accrued
liabilities $ 150,298 $ 147,452 Deferred revenue 5,745 3,724 Income
taxes payable 17,169 8,279 Current portion of long-term debt,
revolving credit facility, and capital lease obligations 30,369
53,671 Total current liabilities 203,581 213,126
Deferred income taxes 5,001 5,322 Income taxes payable 25,675
21,157 Long-term debt and capital lease obligations, net of
discount 670,507 592,135 Other liabilities 2,844 3,748
Total liabilities 907,608 835,488 Commitments and
contingencies Stockholders' equity: Preferred stock — — Common
stock 11 12 Additional paid-in capital 393,351 407,808 Accumulated
other comprehensive loss (83,791 ) (68,793 ) Retained earnings
406,956 625,437 Total stockholders' equity 716,527
964,464 Total liabilities and stockholders' equity $
1,624,135 $ 1,799,952
Copart, Inc.
Condensed Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended April 30, 2016
2015 Cash flows from operating activities: Net income
$ 185,392 $ 162,371 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
35,900 37,579 Allowance for doubtful accounts 1,227 (453 ) Equity
in losses of unconsolidated affiliates 768 — Stock-based payment
compensation 15,834 13,290 Excess tax benefits from stock-based
payment compensation (848 ) (1,279 ) Gain on sale of property and
equipment (188 ) (735 ) Deferred income taxes (325 ) 3,641 Changes
in operating assets and liabilities, net of effects from
acquisitions: Accounts receivable (49,594 ) (21,763 ) Vehicle
pooling costs and inventories (8,121 ) (1,874 ) Prepaid expenses
and other current assets 293 1,480 Other assets 3,206 7,584
Accounts payable and accrued liabilities 5,024 2,042 Deferred
revenue 2,038 445 Income taxes receivable 4,172 985 Income taxes
payable 13,858 1,313 Other liabilities (1,138 ) (1,257 ) Net cash
provided by operating activities 207,498 203,369
Cash
flows from investing activities: Purchases of property and
equipment (143,833 ) (49,079 ) Proceeds from sale of property and
equipment 485 1,087 Purchases of marketable securities (21,119 ) —
Proceeds from sale of marketable securities 21,498 —
Net cash used in investing activities (142,969 ) (47,992 )
Cash flows from financing activities: Proceeds from the
exercise of stock options 4,989 3,372 Excess tax benefit from
stock-based payment compensation 848 1,279 Proceeds from the
issuance of Employee Stock Purchase Plan shares 1,640 1,495
Repurchases of common stock (442,855 ) (1,737 ) Proceeds from the
issuance of long-term debt, net of discount 93,468 698,939 Debt
offering costs (165 ) (955 ) Principal payments on long-term debt
(37,500 ) (331,250 ) Net cash (used in) provided by financing
activities (379,575 ) 371,143 Effect of foreign currency
translation (3,313 ) (6,446 ) Net (decrease) increase in cash and
cash equivalents (318,359 ) 520,074 Cash and cash equivalents at
beginning of period 456,012 158,668 Cash and cash
equivalents at end of period $ 137,653 $ 678,742
Supplemental disclosure of cash flow information: Interest
paid $ 16,996 $ 9,705 Income taxes paid, net of
refunds $ 86,243 $ 81,995
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160525006538/en/
Copart, Inc.Christopher M. Smith, 972-391-5021Senior
AnalystOffice of the Chief Financial
Officerchristopher.smith3@copart.com
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