Copart Reports Fourth Quarter Financial Results

Copart Reports Fourth Quarter Financial Results

DALLAS--(BUSINESS WIRE)-- Copart, Inc. (NAS: CPRT) today reported the results for its fourth quarter and fiscal year ended July 31, 2012.

For the three months ended July 31, 2012, revenue, operating income and net income were $226.6 million, $69.5 million and $44.9 million, respectively. These represent increases in revenue of $11.1 million, or 5.2%; in operating income of $6.0 million, or 9.5%; and in net income of $4.4 million, or 10.8% from the same quarter last year. Fully diluted earnings per share for the three months were $0.35 compared to $0.29 last year, an increase of 20.7%.


For the twelve months ended July 31, 2012, revenue, operating income and net income were $924.2 million, $286.4 million and $182.1 million, respectively. These represent increases in revenue of $51.9 million, or 6.0%; in operating income of $21.1 million, or 7.9%; and in net income of $15.7 million, or 9.5% from the same period last year. Fully diluted earnings per share for the twelve months ended July 31, 2012 were $1.39 compared to $1.08 last year, an increase of 28.7%.

Included in the fourth quarter of the Company's 2012 fiscal year is the repurchase of 2,800,000 shares of the Company's common stock at a weighted average price of $23.22 per share under its share repurchase program. As of July 31, 2012, Copart had 48,213,218 shares available for repurchase under its share repurchase program.

On Wednesday, September 26, 2012, 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://w.on24.com/r.htm?e=514931&s=1&k=02F16B705658A913E110EA819CE52F22. A replay of the call will be available through October 26, 2012 by calling (888) 203-1112. Use confirmation code #7921487.

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 patented VB2 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 156 facilities in the United States, Canada, United Kingdom and the United Arab Emirates. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. 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

July 31,

Twelve months ended

July 31,

2012

2011

2012

2011

Service revenues and vehicle sales:

Service revenues

$

187,464

$

171,040

$

757,272

$

713,093

Vehicle sales

39,092

44,403

166,919

159,153

Total service revenues and vehicle sales

$

226,556

$

215,443

$

924,191

$

872,246

Operating costs and expenses:

Yard operations

85,907

81,822

344,566

337,188

Cost of vehicle sales

32,914

35,142

136,971

125,202

Yard depreciation and amortization

8,309

8,892

33,038

36,961

Gross margin

99,426

89,587

409,616

372,895

General and administrative

26,404

23,737

99,376

98,864

General and administrative depreciation and amortization

3,528

2,394

15,116

8,741

Impairment of long-lived assets

8,771

Total operating expenses

157,062

151,987

637,838

606,956

Operating income

69,494

63,456

286,353

265,290

Other (expense) income:

Interest (expense) income, net

(3,015

)

(1,693

)

(10,984

)

(3,585

)

Other income, net

999

882

2,687

2,172

Total other (expense)

(2,016

)

(811

)

(8,297

)

(1,413

)

Income before income taxes

67,478

62,645

278,056

263,877

Income taxes

22,582

22,124

95,937

97,502

Net income

$

44,896

$

40,521

$

182,119

$

166,375

Earnings per share-basic

Basic net income per share

$

0.36

$

0.30

$

1.42

$

1.10

Weighted average common shares outstanding

126,112

135,230

128,120

151,298

Earnings per share-diluted

Diluted net income per share

$

0.35

$

0.29

$

1.39

$

1.08

Diluted weighted average common shares outstanding

129,853

138,232

131,428

153,352

Copart, Inc.

Consolidated Balance Sheets

(in thousands)

(Unaudited)

July 31,

2012

July 31,

2011

ASSETS

Current assets:

Cash and cash equivalents

$

140,112

$

74,009

Accounts receivable, net

138,966

122,859

Inventories and vehicle pooling costs

24,222

25,042

Income taxes receivable

2,312

5,145

Deferred income taxes

3,600

Prepaid expenses and other assets

9,155

14,813

Assets held for sale

3,926

Total current assets

322,293

241,868

Property and equipment, net

587,163

600,388

Intangibles, net

7,985

12,748

Goodwill

196,438

198,620

Deferred income taxes

22,280

9,425

Other assets

18,907

21,387

Total assets

$

1,155,066

$

1,084,436

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

102,958

101,708

Deferred revenue

5,390

5,636

Income taxes payable

3,082

3,543

Deferred income taxes

440

Current portion of long-term debt and capital lease obligations

75,170

50,370

Other current liabilities

785

4,929

Total current liabilities

187,385

166,626

Deferred income taxes

7,186

10,057

Income taxes payable

22,531

24,773

Long-term debt and capital lease obligations

368,950

325,386

Other liabilities

7,897

2,422

Total liabilities

593,949

529,264

Commitments and contingencies

Stockholders' equity:

Preferred stock, $0.0001 par value -
5,000,000 shares authorized;
no shares issued and outstanding
at July 31, 2012 and July 31, 2011 respectively

Common stock, $0.0001 par value -
180,000,000 shares authorized;
124,393,700 and 132,011,034 shares
issued and outstanding at July 31, 2012
and July 31, 2011, respectively

12

13

Additional paid-in capital

326,187

313,927

Accumulated other comprehensive loss

(38,043)

(23,225)

Retained earnings

272,961

264,457

Total stockholders' equity

561,117

555,172

Total liabilities and stockholders' equity

$

1,155,066

$

1,084,436

Copart, Inc.

Consolidated Statements of Cash Flows

(in thousands)


(Unaudited)

Twelve Months Ended
July 31,

2012

2011

Cash flows from operating activities:

Net income

$

182,119

$

166,375

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

48,167

45,694

Allowance for doubtful accounts

(192

)

270

Impairment

8,771

Stock-based compensation

21,791

19,007

Excess tax benefits from stock-based compensation

(4,367

)

(3,547

)

(Gain)/loss on sale of property and equipment

(143

)

1,882

Deferred income taxes

(17,579

)

(2,099

)

Changes in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable

(16,202

)

(12,865

)

Vehicle pooling costs and inventories

924

10,535

Prepaid expenses and other current assets

6,026

4,785

Other assets

(1,951

)

739

Accounts payable and accrued liabilities

(3,607

)

5,614

Deferred revenue

(243

)

(5,015

)

Income taxes receivable

7,082

9,456

Income taxes payable

(2,545

)

2,529

Other liabilities

1,622

(428

)

Net cash provided by operating activities

229,673

242,932

Cash flows from investing activities:

Purchases of property and equipment, including acquisitions

(57,396

)

(105,082

)

Proceeds from sale of property and equipment

1,268

20,602

Proceeds from sale of assets held for sale

8,041

Net cash used in investing activities

(48,087

)

(84,480

)