|By Business Wire||
|February 25, 2014 06:45 PM EST||
Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2014.
For the three months ended January 31, 2014, revenue, operating income and net income were $286.4 million, $71.5 million and $45.3 million, respectively. These represent increases in revenue of $20.2 million, or 7.6%; in operating income of $8.7 million, or 13.9%; and in net income of $5.7 million, or 14.4%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.35 compared to $0.31 last year, an increase of 12.9%.
For the six months ended January 31, 2014, revenue, operating income and net income were $566.3 million, $136.4 million and $86.8 million, respectively. These represent an increase in revenue of $61.3 million, or 12.1%; a decrease in operating income of $0.7 million, or 0.5%; and an increase in net income of $1.3 million, or 1.5%, respectively, from the same quarter last year. Fully diluted earnings per share for the six months were $0.66 for both periods.
Included in the financial results for the most recent quarter are the severance, relocation and lease termination costs of $4.5 million associated with the integration of the QCSA acquisition, which we closed on May 30, 2013, and the relocation of the technology department from Fairfield, California to Dallas, Texas. We expect severance and lease termination costs to continue into our fourth quarter of this fiscal year.
On Wednesday, February 26, 2014, 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://126.96.36.199/conferenceamerica. A replay of the call will be available through April 27, 2014 by calling (877) 919-4059. Use confirmation code #91488337.
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 140 countries worldwide through our online multi-channel platform. 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)
|Three months ended||Six months ended|
|January 31,||January 31,|
|Service revenues and vehicle sales:|
Total service revenues and vehicle sales
|Operating costs and expenses:|
|Cost of vehicle sales||43,642||42,204||89,733||78,515|
|Yard depreciation and amortization||9,460||10,663||19,555||19,761|
General and administrative
|General and administrative depreciation and amortization||3,615||3,949||8,025||7,690|
|Total operating expenses||214,950||203,415||429,874||367,924|
|Other income (expense):|
|Interest expense, net||(2,066||)||(2,397||)||(4,203||)||(4,873||)|
|Total other expense||(896||)||(1,653||)||(1,610||)||(4,422||)|
|Income before income taxes||70,588||61,117||134,833||132,705|
|Earnings per share-basic|
|Basic net income per share||$||0.36||$||0.32||$||0.69||$||0.69|
|Weighted average common shares outstanding||125,550||124,709||125,505||124,505|
|Earnings per share-diluted|
|Diluted net income per share||$||0.35||$||0.31||$||0.66||$||0.66|
|Diluted weighted average common shares outstanding||131,087||129,520||130,751||128,997|
|Consolidated Balance Sheets|
|January 31,||July 31,|
|Cash and cash equivalents||$||46,199||$||63,631|
|Accounts receivable, net||222,104||182,714|
|Vehicle pooling costs and inventories||33,597||31,202|
|Income taxes receivable||5,628||9,416|
|Deferred income taxes||3,829||2,216|
|Prepaid expenses and other assets||20,069||15,344|
|Assets held for sale||1,503||1,929|
|Total current assets||332,929||306,452|
|Property and equipment, net||707,379||677,517|
|Deferred income taxes||30,654||30,117|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and accrued liabilities||$||154,871||$||136,648|
|Income taxes payable||5,539||4,741|
|Current portion of long-term debt and capital lease obligations||77,028||76,047|
|Total current liabilities||259,651||238,559|
|Deferred income taxes||7,461||8,071|
|Income taxes payable||24,165||23,091|
|Long-term debt and capital lease obligations||261,182||296,410|
|Commitments and contingencies|
|Preferred stock, $0.0001 par value – 5,000,000 shares authorized; no shares issued and outstanding at January 31, 2014 and July 31, 2013 respectively||—||—|
|Common stock, $0.0001 par value – 180,000,000 shares authorized; 125,860,010 and 125,494,995 shares issued and outstanding at January 31, 2014 and July 31, 2013, respectively||13||13|
|Additional paid-in capital||384,947||368,769|
|Accumulated other comprehensive loss||(31,718||)||(47,161||)|
|Total stockholders’ equity||880,724||762,401|
|Total liabilities and stockholders’ equity||$||1,438,493||$||1,334,481|
|Consolidated Statements of Cash Flows|
|Three Months Ended|
|Cash flows from operating activities:|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||27,580||27,451|
|Allowance for doubtful accounts||884||184|
|Excess tax benefits from stock-based compensation||(1,171||)||(5,293||)|
|Gain on sale of property and equipment||(1,743||)||(183||)|
|Deferred income taxes||(5,982||)||(6,986||)|
|Changes in operating assets and liabilities, net of effects from acquisitions:|
|Vehicle pooling costs and inventories||(1,718||)||(6,860||)|
|Prepaid expenses and other current assets||(4,266||)||(3,529||)|
|Accounts payable and accrued liabilities||7,724||17,845|
|Income taxes receivable||4,799||(4,776||)|
|Income taxes payable||1,494||4,918|
Net cash provided by operating activities
|Cash flows from investing activities:|
|Purchases of property and equipment including acquisitions||(65,996||)||(116,925||)|
|Proceeds from sale of property and assets held for sale||2,576||1,851|
|Net cash used in investing activities||(63,420||)||(115,074||)|
|Cash flows from financing activities:|
|Proceeds from the exercise of stock options||4,550||16,358|
|Excess tax benefit from stock-based payment compensation||1,171||5,293|
|Proceeds from the issuance of Employee Stock Purchase Plan shares||1,115||951|
|Change in bank overdraft||743||—|
|Principal payments on long-term debt||(37,500||)||(37,505||)|
|Repurchases of common stock||(80||)||(14,512||)|
|Net cash used in financing activities||(30,001||)||(29,415||)|
|Effect of foreign currency translation||198||797|
|Net decrease in cash and cash equivalents||(17,432)||(90,602||)|
|Cash and cash equivalents at beginning of period||63,631||140,112|
|Cash and cash equivalents at end of period||$46,199||$||49,510|
|Supplemental disclosure of cash flow information:|
|Income taxes paid||$47,891||$||55,874|
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