Welcome!

News Feed Item

Copart Reports Second Quarter Fiscal 2014 Financial Results

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://64.202.98.81/conferenceamerica. A replay of the call will be available through April 27, 2014 by calling (877) 919-4059. Use confirmation code #91488337.

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 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.

 

Copart, Inc.

 
Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

 
    Three months ended   Six months ended
January 31, January 31,
2014   2013 2014   2013
Service revenues and vehicle sales:
Service revenues $ 235,732 $ 216,920 $ 462,095 $ 412,099
Vehicle sales   50,702   49,265   104,222   92,952

Total service revenues and vehicle sales

$ 286,434 $ 266,185 $ 566,317 $ 505,051
Operating costs and expenses:
Yard operations 121,786 116,501 237,647 204,522
Cost of vehicle sales 43,642 42,204 89,733 78,515
Yard depreciation and amortization   9,460   10,663   19,555   19,761
Gross margin 111,546 96,817 219,382 202,253

General and administrative

36,447 30,098 74,914 57,436
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
Operating income 71,484 62,770 136,443 137,127
Other income (expense):
Interest expense, net (2,066 ) (2,397 ) (4,203 ) (4,873 )
Other income   1,170   744   2,593   451
Total other expense   (896 )   (1,653 )   (1,610 )   (4,422 )
Income before income taxes 70,588 61,117 134,833 132,705
Income taxes   25,243   21,477   48,066   47,220
Net income $ 45,345 $ 39,640 $ 86,767 $ 85,485
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
 
 

Copart, Inc.

 
Consolidated Balance Sheets

(in thousands)

(Unaudited)

 
    January 31,   July 31,
2014 2013
ASSETS
 
Current assets:
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
Intangibles, net 19,709 17,706
Goodwill 291,227 267,463
Deferred income taxes 30,654 30,117
Other assets   56,595   35,226
Total assets $ 1,438,493 $ 1,334,481
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 154,871 $ 136,648
Bank overdraft 17,034 16,291
Deferred revenue 5,179 4,832
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
Other liabilities   5,310   5,949
Total liabilities   557,769   572,080
Commitments and contingencies
Stockholders’ equity:
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 )
Retained earnings   527,482   440,780
Total stockholders’ equity   880,724   762,401
Total liabilities and stockholders’ equity $ 1,438,493 $ 1,334,481
 
 

Copart, Inc.

 
Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 
    Three Months Ended
January 31,
2014   2013
Cash flows from operating activities:
Net income $ 86,767 $ 85,485
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
Stock-based compensation 10,639 9,920
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:
Accounts receivable (38,928 ) (58,315 )
Vehicle pooling costs and inventories (1,718 ) (6,860 )
Prepaid expenses and other current assets (4,266 ) (3,529 )
Other assets (12,602 ) (7,014 )
Accounts payable and accrued liabilities 7,724 17,845
Deferred revenue 347 (28 )
Income taxes receivable 4,799 (4,776 )
Income taxes payable 1,494 4,918
Other liabilities   1,967   271

Net cash provided by operating activities

  75,791   53,090
 
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:
Interest paid $4,495 $ 5,220
Income taxes paid $47,891 $ 55,874
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.