Copart, Inc. (NASDAQ:CPRT) today reported financial results for
the quarter and six months ended January 31, 2015.
For the three months ended January 31, 2015, revenue, gross
margin and net income were $276.3 million, $114.9 million and $52.2
million, respectively. These represent a decrease in revenue of
$10.2 million, or 3.6%; and increases in gross margin of $3.3
million, or 3.0%; and in net income of $6.8 million, or 15.1%,
respectively, from the same quarter last year. Fully diluted
earnings per share for the three months were $0.40 compared to
$0.35 last year, an increase of 14.3%.
For the six months ended January 31, 2015, revenue, gross margin
and net income were $566.6 million, $237.2 million and $104.8
million, respectively. These represent increases in revenue of $0.3
million, or 0.1%; in gross margin of $17.8 million, or 8.1%; and in
net income of $18.0 million, or 20.8%, respectively, from the same
period last year. Fully diluted earnings per share for the six
months were $0.80 compared to $0.66 last year, an increase of
21.2%.
On Wednesday, February 25, 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/copart022515. A replay of the
call will be available through April 26, 2015 by calling (877)
919-4059. Use confirmation code # 51385268.
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 states, 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 (www.copart.ae),
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.
Consolidated Statements of
Income
(In thousands, except per share data)
(Unaudited)
Three Months EndedJanuary
31,
Six Months EndedJanuary
31,
2015 2014 2015 2014 Service
revenues and vehicle sales: Service revenues $ 238,508 $ 235,732 $
485,128 $ 462,095 Vehicle sales 37,750 50,702
81,516 104,222
Total service revenues and vehicle
sales
276,258 286,434 566,644 566,317 Operating expenses: Yard operations
120,181 121,240 241,780 236,466 Cost of vehicle sales 32,118 43,642
69,191 89,733 Yard depreciation and amortization 8,543 9,460 17,403
19,555 Yard stock-based payment compensation 549 546 1,095 1,181
Gross margin 114,867 111,546 237,175 219,382 General and
administrative 27,587 31,221 60,804 65,456 General and
administrative depreciation and amortization 2,857 3,615 5,727
8,025 General and administrative stock-based payment compensation
3,955 5,226 7,775 9,458 Total operating expenses 195,790 214,950
403,775 429,874 Operating income 80,468 71,484 162,869 136,443
Other (expense) income: Interest expense, net (4,505 ) (2,066 )
(6,276 ) (4,203 ) Other income, net 4,141 1,170 5,734 2,593 Total
other expense (364 ) (896 ) (542 ) (1,610 ) Income before income
taxes 80,104 70,588 162,327 134,833 Income taxes 27,911 25,243
57,519 48,066 Net income $ 52,193 $ 45,345 $ 104,808 $ 86,767
Basic net income per common share $ 0.41 $ 0.36 $ 0.83 $
0.69 Weighted average common shares outstanding 126,300 125,564
126,258 125,512 Diluted net income per common share $ 0.40 $
0.35 $ 0.80 $ 0.66 Diluted weighted average common shares
outstanding 131,872 131,101 131,694 130,904
Consolidated Balance Sheets
(In thousands)
(Unaudited)
January 31,
2015
July 31,
2014
ASSETS Current assets: Cash and cash equivalents $
590,366 $ 158,668 Accounts receivable, net 235,477 196,985 Vehicle
pooling costs and inventories 34,106 31,697 Income taxes receivable
7,803 2,288 Deferred income taxes 2,769 1,803 Prepaid expenses and
other assets 17,904 20,850 Total current assets 888,425 412,291
Property and equipment, net 688,244 692,383 Intangibles, net 21,425
25,242 Goodwill 270,492 283,780 Deferred income taxes 37,524 36,721
Other assets 45,961 56,387 Total assets $ 1,952,071 $ 1,506,804
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable and accrued liabilities $ 148,180 $
152,156 Deferred revenue 4,515 4,170 Income taxes payable 5,858
8,284 Current portion of long-term debt and capital lease
obligations 76,171 79,674 Total current liabilities 234,724 244,284
Deferred income taxes 6,324 7,372 Income taxes payable 25,499
23,771 Long-term debt and capital lease obligations, net of
discount 608,236 223,227 Other liabilities 4,051 4,651 Total
liabilities 878,834 503,305 Commitments and contingencies
Stockholders’ equity: Preferred stock — — Common stock 13 13
Additional paid-in capital 416,958 404,542 Accumulated other
comprehensive loss (66,525 ) (20,060 ) Retained earnings 722,791
619,004 Total stockholders’ equity 1,073,237 1,003,499 Total
liabilities and stockholders’ equity $ 1,952,071 $ 1,506,804
Consolidated Statements of Cash
Flows
(In thousands)
(Unaudited)
Six Months EndedJanuary 31, 2015
2014 Cash flows from operating activities: Net income
$ 104,808 $ 86,767 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
25,367 27,580 Allowance for doubtful accounts (242 ) 884
Stock-based payment compensation 8,870 10,639 Excess tax benefits
from stock-based payment compensation (534 ) (1,171 ) Gain on sale
of property and equipment (457 ) (1,743 ) Deferred income taxes
(2,317 ) (5,982 ) Changes in operating assets and liabilities, net
of effects from acquisitions: Accounts receivable (40,908 ) (38,928
) Vehicle pooling costs and inventories (3,351 ) (1,718 ) Prepaid
expenses and other current assets 1,747 (4,266 ) Other assets 5,368
(12,602 ) Accounts payable and accrued liabilities (4,173 ) 7,724
Deferred revenue 351 347 Income taxes receivable (4,938 ) 4,799
Income taxes payable 103 1,494 Other liabilities (811 ) 1,967 Net
cash provided by operating activities 88,883 75,791
Cash
flows from investing activities: Purchases of property and
equipment including acquisitions, net of cash acquired (39,459 )
(65,996 ) Proceeds from sale of property and equipment 742 2,576
Net cash used in investing activities (38,717 ) (63,420 )
Cash flows from financing activities: Proceeds from the
exercise of stock options 2,303 4,550 Excess tax benefit from
stock-based payment compensation 534 1,171 Proceeds from the
issuance of Employee Stock Purchase Plan shares 1,495 1,115
Principal payments on long-term debt (312,500 ) (37,500 ) Proceeds
from the issuance of long-term debt, net of discount 698,939 — Debt
offering costs (955 ) — Change in bank overdraft — 743 Repurchases
of common stock (1,121 ) (80 ) Net cash provided by (used in)
financing activities 388,695 (30,001 ) Effect of foreign
currency translation (7,163 ) 198 Net increase (decrease) in
cash and cash equivalents 431,698 (17,432 ) Cash and cash
equivalents at beginning of period 158,668 63,631 Cash and cash
equivalents at end of period $ 590,366 $ 46,199
Supplemental disclosure of cash flow information: Interest
paid $ 3,788 $ 4,495 Income taxes paid, net of refunds $ 64,432 $
47,891
Copart, Inc.Wendy Lucero, 972-391-5043Assistant to the Chief
Financial Officerwendy.lucero@copart.com
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