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 - | — | — | ||||||||
Common stock, $0.0001 par value - | 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 | ||||||||||
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 | ) | ||||||
