Copart, Inc. (NASDAQ:CPRT) today reported financial results for the
quarter ended January 31, 2016.
For the three months ended January 31, 2016, revenue, gross margin and
net income were $299.7 million, $124.6 million, and $59.0 million,
respectively. These represent an increase in revenue of $23.4 million,
or 8.5%; an increase in gross margin of $9.7 million, or 8.5%; and an
increase in net income of $6.8 million, or 13.0%, respectively, from the
same quarter last year. Fully diluted earnings per share for the three
months were $0.48 compared to $0.40 last year, an increase of 20.0%.
For the six months ended January 31, 2016, revenue, gross margin and net
income were $588.5 million, $245.5 million and $111.4 million,
respectively. These represent an increase in revenue of $21.9 million,
or 3.9%; an increase in gross margin of $8.3 million, or 3.5%; and an
increase in net income of $6.6 million, or 6.3%, respectively, from the
same period last year. Fully diluted earnings per share for the six
months were $0.90 compared to $0.80 last year, an increase of 12.5%.
On Wednesday, February 24, 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/copart022416.
A replay of the call will be available through April 24, 2016 by calling (877)
919-4059. Use confirmation code # 92806653.
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),
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
January 31,
|
|
Six Months Ended
January 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Service revenues and vehicle sales:
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
$
|
260,417
|
|
|
$
|
238,508
|
|
|
$
|
511,384
|
|
|
$
|
485,128
|
|
|
Vehicle sales
|
|
39,289
|
|
|
37,750
|
|
|
77,160
|
|
|
81,516
|
|
|
Total service revenues and vehicle sales
|
|
299,706
|
|
|
276,258
|
|
|
588,544
|
|
|
566,644
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Yard operations
|
|
132,041
|
|
|
120,181
|
|
|
258,919
|
|
|
241,780
|
|
|
Cost of vehicle sales
|
|
34,127
|
|
|
32,118
|
|
|
66,195
|
|
|
69,191
|
|
|
Yard depreciation and amortization
|
|
8,248
|
|
|
8,543
|
|
|
16,593
|
|
|
17,403
|
|
|
Yard stock-based payment compensation
|
|
676
|
|
|
549
|
|
|
1,362
|
|
|
1,095
|
|
|
Gross margin
|
|
124,614
|
|
|
114,867
|
|
|
245,475
|
|
|
237,175
|
|
|
General and administrative
|
|
24,376
|
|
|
27,587
|
|
|
51,087
|
|
|
60,804
|
|
|
General and administrative depreciation and amortization
|
|
3,443
|
|
|
2,857
|
|
|
6,619
|
|
|
5,727
|
|
|
General and administrative stock-based payment compensation
|
|
4,710
|
|
|
3,955
|
|
|
9,438
|
|
|
7,775
|
|
|
Total operating expenses
|
|
207,621
|
|
|
195,790
|
|
|
410,213
|
|
|
403,775
|
|
|
Operating income
|
|
92,085
|
|
|
80,468
|
|
|
178,331
|
|
|
162,869
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
(4,968
|
)
|
|
(4,505
|
)
|
|
(10,481
|
)
|
|
(6,276
|
)
|
|
Other income, net
|
|
4,435
|
|
|
4,141
|
|
|
5,462
|
|
|
5,734
|
|
|
Total other expenses
|
|
(533
|
)
|
|
(364
|
)
|
|
(5,019
|
)
|
|
(542
|
)
|
|
Income before income taxes
|
|
91,552
|
|
|
80,104
|
|
|
173,312
|
|
|
162,327
|
|
|
Income taxes
|
|
32,589
|
|
|
27,911
|
|
|
61,936
|
|
|
57,519
|
|
|
Net income
|
|
$
|
58,963
|
|
|
$
|
52,193
|
|
|
$
|
111,376
|
|
|
$
|
104,808
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share
|
|
$
|
0.50
|
|
|
$
|
0.41
|
|
|
$
|
0.94
|
|
|
$
|
0.83
|
|
|
Weighted average common shares outstanding
|
|
117,306
|
|
|
126,300
|
|
|
118,731
|
|
|
126,258
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share
|
|
$
|
0.48
|
|
|
$
|
0.40
|
|
|
$
|
0.90
|
|
|
$
|
0.80
|
|
|
Diluted weighted average common shares outstanding
|
|
122,908
|
|
|
131,872
|
|
|
124,240
|
|
|
131,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copart, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
January 31, 2016
|
|
July 31, 2015
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
141,416
|
|
|
$
|
456,012
|
|
|
Accounts receivable, net
|
|
281,227
|
|
|
215,696
|
|
|
Vehicle pooling costs and inventories
|
|
39,152
|
|
|
33,562
|
|
|
Income taxes receivable
|
|
7,734
|
|
|
6,092
|
|
|
Deferred income taxes
|
|
685
|
|
|
3,396
|
|
|
Prepaid expenses and other assets
|
|
36,644
|
|
|
19,824
|
|
|
Total current assets
|
|
506,858
|
|
|
734,582
|
|
|
Property and equipment, net
|
|
744,224
|
|
|
700,402
|
|
|
Intangibles, net
|
|
14,408
|
|
|
17,857
|
|
|
Goodwill
|
|
264,128
|
|
|
271,850
|
|
|
Deferred income taxes
|
|
31,432
|
|
|
28,840
|
|
|
Other assets
|
|
43,314
|
|
|
46,421
|
|
|
Total assets
|
|
$
|
1,604,364
|
|
|
$
|
1,799,952
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
147,839
|
|
|
$
|
147,452
|
|
|
Deferred revenue
|
|
5,478
|
|
|
3,724
|
|
|
Income taxes payable
|
|
12,629
|
|
|
8,279
|
|
|
Current portion of long-term debt, revolving credit facility, and
capital lease obligations
|
|
99,171
|
|
|
53,671
|
|
|
Total current liabilities
|
|
265,117
|
|
|
213,126
|
|
|
Deferred income taxes
|
|
4,868
|
|
|
5,322
|
|
|
Income taxes payable
|
|
23,696
|
|
|
21,157
|
|
|
Long-term debt and capital lease obligations, net of discount
|
|
576,501
|
|
|
592,135
|
|
|
Other liabilities
|
|
2,782
|
|
|
3,748
|
|
|
Total liabilities
|
|
872,964
|
|
|
835,488
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
Common stock
|
|
11
|
|
|
12
|
|
|
Additional paid-in capital
|
|
394,002
|
|
|
407,808
|
|
|
Accumulated other comprehensive loss
|
|
(103,071
|
)
|
|
(68,793
|
)
|
|
Retained earnings
|
|
440,458
|
|
|
625,437
|
|
|
Total stockholders' equity
|
|
731,400
|
|
|
964,464
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,604,364
|
|
|
$
|
1,799,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copart, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended January 31,
|
|
|
|
2016
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
111,376
|
|
|
$
|
104,808
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
23,294
|
|
|
25,367
|
|
|
Allowance for doubtful accounts
|
|
1,270
|
|
|
(242
|
)
|
|
Equity in losses of unconsolidated affiliates
|
|
483
|
|
|
—
|
|
|
Stock-based payment compensation
|
|
10,800
|
|
|
8,870
|
|
|
Excess tax benefits from stock-based payment compensation
|
|
(241
|
)
|
|
(534
|
)
|
|
Gain on sale of property and equipment
|
|
(106
|
)
|
|
(457
|
)
|
|
Deferred income taxes
|
|
(106
|
)
|
|
(2,317
|
)
|
|
Changes in operating assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
Accounts receivable
|
|
(68,683
|
)
|
|
(40,908
|
)
|
|
Vehicle pooling costs and inventories
|
|
(6,449
|
)
|
|
(3,351
|
)
|
|
Prepaid expenses and other current assets
|
|
(216
|
)
|
|
1,747
|
|
|
Other assets
|
|
448
|
|
|
5,368
|
|
|
Accounts payable and accrued liabilities
|
|
3,702
|
|
|
(4,173
|
)
|
|
Deferred revenue
|
|
1,810
|
|
|
351
|
|
|
Income taxes receivable
|
|
(1,410
|
)
|
|
(4,938
|
)
|
|
Income taxes payable
|
|
7,897
|
|
|
103
|
|
|
Other liabilities
|
|
(789
|
)
|
|
(811
|
)
|
|
Net cash provided by operating activities
|
|
83,080
|
|
|
88,883
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(77,763
|
)
|
|
(39,459
|
)
|
|
Proceeds from sale of property and equipment
|
|
396
|
|
|
742
|
|
|
Purchases of marketable securities
|
|
(21,119
|
)
|
|
—
|
|
|
Net cash used in investing activities
|
|
(98,486
|
)
|
|
(38,717
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from the exercise of stock options
|
|
944
|
|
|
2,303
|
|
|
Excess tax benefit from stock-based payment compensation
|
|
241
|
|
|
534
|
|
|
Proceeds from the issuance of Employee Stock Purchase Plan shares
|
|
1,640
|
|
|
1,495
|
|
|
Repurchases of common stock
|
|
(325,000
|
)
|
|
(1,121
|
)
|
|
Proceeds from the issuance of long-term debt, net of discount
|
|
—
|
|
|
698,939
|
|
|
Proceeds from revolving loan facility, net of repayments
|
|
68,000
|
|
|
—
|
|
|
Debt offering costs
|
|
—
|
|
|
(955
|
)
|
|
Principal payments on long-term debt
|
|
(37,500
|
)
|
|
(312,500
|
)
|
|
Net cash (used in) provided by financing activities
|
|
(291,675
|
)
|
|
388,695
|
|
|
Effect of foreign currency translation
|
|
(7,515
|
)
|
|
(7,163
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(314,596
|
)
|
|
431,698
|
|
|
Cash and cash equivalents at beginning of period
|
|
456,012
|
|
|
158,668
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
141,416
|
|
|
$
|
590,366
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
Interest paid
|
|
$
|
11,294
|
|
|
$
|
3,788
|
|
|
Income taxes paid, net of refunds
|
|
$
|
55,413
|
|
|
$
|
64,432
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160223007092/en/
Copyright Business Wire 2016