|By Business Wire||
|May 28, 2014 08:08 PM EDT||
Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2014.
For the three months ended April 30, 2014, revenue, gross margin and net income were $309.7 million, $132.3 million and $40.9 million, respectively. These represent increases in revenue of $32.1 million, or 11.6%; and in gross margin of $16.7 million, or 14.4%; and a decrease in net income of $12.4 million, or 23.2%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.31 compared to $0.41 last year, a decrease of 24.4%.
For the nine months ended April 30, 2014, revenue, gross margin and net income were $876.0 million, $351.6 million and $127.6 million, respectively. These represent increases in revenue of $93.4 million, or 11.9%; and in gross margin of $33.8 million, or 10.6%; and a decrease in net income of $11.1 million, or 8.0%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $0.97 compared to $1.07 last year, a decrease of 9.3%.
Included in operating results of the current quarter is an impairment charge of $29.1 million. In a prior fiscal year, the Company initiated the development of a third-party enterprise operating system to address its international expansion needs and to eventually replace its proprietary operating system, which is currently utilized in the United States, Canada, the United Kingdom and the United Arab Emirates. During the quarter, the Company reassessed this strategy based on the projected cost to complete, deployment risk and certain other factors. As a result of this assessment, the Company decided to cease development of the third-party enterprise operating system and address its international technology needs through an internally-developed proprietary solution. Accordingly, during the quarter, the Company recognized an impairment charge resulting primarily from the abandonment of work previously capitalized in connection with the development of the third-party solution.
Included in the operating results of the third quarter of the prior fiscal year were the incremental revenues and operating expenses associated with incremental unit volume generated by Hurricane Sandy, which were estimated to be $12.7 million and $7.2 million, respectively.
Excluding the impacts of the impairment charge during the current quarter and the effects of Hurricane Sandy during the same quarter last year, for the three months ended April 30, 2014, non-GAAP revenue, gross margin and net income were $309.7 million, $132.3 million and $60.3 million, respectively. These represent increases in non-GAAP revenue of $44.8 million, or 16.9%; in non-GAAP gross margin of $22.1 million, or 20.1%; and in non-GAAP net income of $10.6 million, or 21.4%, respectively, from the non-GAAP results from the same quarter last year. Non-GAAP fully diluted earnings per share for the three months were $0.46 compared to $0.38 last year, an increase of 21.1%. A reconciliation of non-GAAP financial measures to the most directly comparable financial measures computed in accordance with U.S. generally accepted accounting principles (GAAP) can be found in the tables attached to this press release.
For the nine months ended April 30, 2014, non-GAAP revenue, gross margin and net income were $876.0 million, $351.6 million and $146.6 million, respectively. These represent increases in non-GAAP revenue of $124.5 million, or 16.6%; in non-GAAP gross margin of $29.4 million, or 9.1%; and in non-GAAP net income of $5.0 million, or 3.5%, respectively, from the non-GAAP results from the same period last year. Non-GAAP fully diluted earnings per share for the nine months were $1.12 compared to $1.09 last year, an increase of 2.8%.
On Thursday, May 29, 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://220.127.116.11/conferenceamerica. A replay of the call will be available through July 28, 2014 by calling (877) 919-4059. Use confirmation code #17312559.
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.
Use of Non-GAAP Financial Measures
Included in this release are certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross margin, non-GAAP net income and non-GAAP net income per diluted share, which reflect the impact of an impairment charge in the quarter ended April 30, 2014, and revenues and expenses associated with salvage cars processed as a result of Hurricane Sandy. These non-GAAP financial measures do not represent alternative financial measures under GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Furthermore, these non-GAAP financial measures do not reflect a comprehensive view of Copart’s operations in accordance with GAAP and should only be read in conjunction with the corresponding GAAP financial measures. This information constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission. Accordingly, Copart has presented herein, and will present in other information it publishes that contains these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
Copart believes the presentation of non-GAAP revenue, non-GAAP gross margin, non-GAAP net income and non-GAAP net income per diluted share included in this release in conjunction with the corresponding GAAP financial measures provides meaningful information for investors, analysts and management in assessing Copart’s business trends and financial performance. From a financial planning and analysis perspective, Copart management analyzes its operating results with and without the impact of impairment charges and the effects of Hurricane Sandy.
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.
Condensed Consolidated Statements of Income
Three months ended
Nine months ended
(In thousands, except per share data)
|Service revenues and vehicle sales:|
Total service revenues and vehicle sales
|Operating costs and expenses:|
|Cost of vehicle sales||46,263||45,631||135,996||124,146|
|Yard depreciation and amortization||8,110||10,762||27,665||30,524|
|General and administrative||35,856||28,750||110,770||86,186|
|General and administrative depreciation and amortization||4,659||4,034||12,684||11,724|
|Impairment of long-lived assets||29,104||—||29,104||—|
|Total operating expenses||247,089||194,825||676,963||562,749|
|Other (expense) income:|
|Interest expense, net||(2,023||)||(2,400||)||(6,226||)||(7,273||)|
|Total other expense||(1,315||)||(808||)||(2,925||)||(5,230||)|
|Income before income taxes||61,318||82,005||196,151||214,710|
|Earnings per share-basic|
|Basic net income per share||$||0.32||$||0.42||$||1.02||$||1.11|
|Weighted average common shares outstanding||125,794||125,270||125,604||124,755|
|Earnings per share-diluted|
|Diluted net income per share||$||0.31||$||0.41||$||0.97||$||1.07|
|Diluted weighted average common shares outstanding||131,486||130,530||131,095||129,502|
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||132,832||$||63,631|
|Accounts receivable, net||192,610||182,714|
|Vehicle pooling costs and inventories||32,216||31,202|
|Income taxes receivable||3,358||9,416|
|Deferred income taxes||4,950||2,216|
|Prepaid expenses and other assets||18,443||15,344|
|Assets held for sale||1,345||1,929|
|Total current assets||385,754||306,452|
|Property and equipment, net||685,707||677,517|
|Goodwill and intangibles, net||313,437||285,169|
|Deferred income taxes||33,971||30,117|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and accrued liabilities||$||164,218||$||136,648|
|Income taxes payable||11,207||4,741|
|Current portion of long-term debt and capital lease obligations||76,171||76,047|
|Total current liabilities||256,742||238,559|
|Deferred income taxes||7,494||8,071|
|Income taxes payable||25,378||23,091|
|Long-term debt and capital lease obligations||242,106||296,410|
|Commitments and contingencies|
|Additional paid-in capital||393,225||368,769|
|Accumulated other comprehensive loss||(21,829||)||(47,161||)|
|Total stockholders’ equity||939,761||762,401|
|Total liabilities and stockholders’ equity||$||1,476,672||$||1,334,481|
Condensed Consolidated Statements of Cash Flows
Nine Months Ended
|Cash flows from operating activities:|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||40,349||42,248|
|Allowance for doubtful accounts||936||234|
|Impairment of long-lived assets||29,104||—|
|Excess tax benefits from stock-based compensation||(1,219||)||(6,164||)|
|Gain on sale of property and equipment||(1,696||)||(922||)|
|Deferred income taxes||(12,609||)||(3,372||)|
|Changes in operating assets and liabilities, net of effects from acquisitions:|
|Vehicle pooling costs and inventories||(170||)||(4,304||)|
|Prepaid expenses and other current assets||(3,539||)||(2,877||)|
|Accounts payable and accrued liabilities||15,269||21,966|
|Income taxes receivable||7,305||4,213|
|Income taxes payable||8,229||8,695|
|Net cash provided by operating activities||207,634||183,003|
|Cash flows from investing activities:|
|Purchases of property and equipment including acquisitions||(78,078||)||(145,508||)|
|Proceeds from sale of property and assets held for sale||3,271||5,470|
|Net cash used in investing activities||(74,807||)||(140,038||)|
|Cash flows from financing activities:|
|Proceeds from the exercise of stock options||5,680||19,579|
|Excess tax benefit from stock-based payment compensation||1,219||6,164|
|Proceeds from the issuance of Employee Stock Purchase Plan shares||1,115||951|
|Change in bank overdraft||(16,291||)||—|
|Principal payments on long-term debt||(56,250||)||(56,255||)|
|Repurchases of common stock||(80||)||(14,512||)|
|Net cash used in financing activities||(64,607||)||(44,073||)|
|Effect of foreign currency translation||981||327|
|Net increase (decrease) in cash and cash equivalents||69,201||(781||)|
|Cash and cash equivalents at beginning of period||63,631||140,112|
|Cash and cash equivalents at end of period||$||132,832||$||139,331|
|Supplemental disclosure of cash flow information:|
|Income taxes paid||$||65,769||$||68,179|
Additional Financial Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
Three months ended
Nine months ended
|GAAP total revenue||$||309,722||$||277,638||$||876,039||$||782,689|
|Effect of Hurricane Sandy||—||(12,736||)||—||(31,161)|
|Non-GAAP total revenue||$||309,722||$||264,902||$||876,039||$||751,528|
|GAAP gross margin||$||132,252||$||115,597||$||351,634||$||317,850|
|Effect of Hurricane Sandy||—||(5,494||)||—||4,392|
|Non-GAAP gross margin||$||132,252||$||110,103||$||351,634||$||322,242|
|GAAP net income||$||40,877||$||53,236||$||127,644||$||138,721|
|Impairment of long-lived assets, net of tax||19,402||—||18,939||—|
|Effect of Hurricane Sandy, net of tax||—||(3,567||)||—||2,838|
|Non-GAAP net income||$||60,279||$||49,669||$||146,583||$||141,559|
|Earnings per share-diluted|
|GAAP diluted net income per share||$||0.31||$||0.41||$||0.97||$||1.07|
|Non-GAAP diluted net income per share||$||0.46||$||0.38||$||1.12||$||1.09|
|Diluted weighted average common shares outstanding||131,486||130,530||131,095||129,502|
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, will discuss the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even ...
Feb. 26, 2017 07:30 PM EST Reads: 1,105
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Feb. 26, 2017 06:45 PM EST Reads: 2,339
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
Feb. 26, 2017 06:00 PM EST Reads: 902
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Feb. 26, 2017 05:30 PM EST Reads: 1,954
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
Feb. 26, 2017 05:30 PM EST Reads: 2,120
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Feb. 26, 2017 05:15 PM EST Reads: 1,889
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Feb. 26, 2017 05:00 PM EST Reads: 2,126
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Feb. 26, 2017 04:15 PM EST Reads: 1,662
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 26, 2017 03:45 PM EST Reads: 2,663
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
Feb. 26, 2017 03:30 PM EST Reads: 8,908
"Storage is growing. All of IDC's estimates say that unstructured data is now 80% of the world's data. We provide storage systems that can actually deal with that scale of data - software-defined storage systems," stated Paul Turner, Chief Product and Marketing Officer at Cloudian, in this SYS-CON.tv interview at 17th Cloud Expo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 26, 2017 02:30 PM EST Reads: 7,101
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Feb. 26, 2017 02:30 PM EST Reads: 2,443
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Feb. 26, 2017 01:30 PM EST Reads: 2,358
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Feb. 26, 2017 01:15 PM EST Reads: 1,845
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 26, 2017 01:15 PM EST Reads: 2,207