FAIRFIELD, Calif.--(BUSINESS WIRE)--Copart, Inc. (NASDAQ: CPRT) today reported the results for the quarter ended January 31, 2011, the second quarter of its 2011 fiscal year.
For the three months ended January 31, 2011, revenue, operating income and net income were $207.4 million, $60.2 million and $37.9 million, respectively. These represent increases in revenue of $30.8 million, or 17.4%; in operating income of $7.0 million, or 13.1%; and in net income of $2.2 million, or 6.0%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.46 compared to $0.42 last year, an increase of 9.5%.
For the six months ended January 31, 2011, revenue, operating income and net income were $420.0 million, $119.8 million and $75.7 million, respectively. These represent increases in revenue of $58.0 million, or 16.0%; in operating income of $10.1, million or 9.2%; and in net income of $4.7 million, or 6.6%, respectively, from the same period last year. Fully diluted earnings per share for the six months ended January 31, 2011 were $0.91 compared to $0.84 last year, an increase of 8.3%.
During the current quarter the Company completed a tender offer resulting in the repurchase of 12,172,088 shares of its common stock at a price of $38.00 per share.
Also, during the current quarter, the Company received a beneficial ruling in the UK respecting the treatment of the value added tax on certain prior period transactions. This ruling resulted in the recognition of additional revenue of approximately $1.8 million and increased diluted earnings per share for the current quarter by $0.01.
On Thursday, March 3, 2011, 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=287959&s=1&k=0C6D13A03B231A68BF22FC18989DEB4C. A replay of the call will be available through April 3, 2011 by calling (888) 203-1112. Use confirmation code #2782589.
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, the general public and others. The company currently operates 152 facilities in the United States, Canada and the United Kingdom. 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.
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Copart, Inc. |
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Consolidated Statements of Income (in thousands, except per share data) (Unaudited) |
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Three months ended January 31, |
Six months ended January 31, |
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| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
| Net sales and revenue: | |||||||||||||||||||||||||
| Service revenues | $ | 173,742 | $ | 149,468 | $ | 353,322 | $ | 303,233 | |||||||||||||||||
| Vehicle sales | 33,638 | 27,133 | 66,725 | 58,830 | |||||||||||||||||||||
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Total service revenues and vehicle sales |
$ |
207,380 |
$ |
176,601 |
$ |
420,047 |
$ |
362,063 |
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| Operating costs and expenses: | |||||||||||||||||||||||||
| Yard operations | 85,116 | 67,279 | 171,629 | 137,204 | |||||||||||||||||||||
| Cost of vehicle sales | 27,002 | 22,181 | 55,208 | 46,610 | |||||||||||||||||||||
| Yard depreciation and amortization | 9,357 | 8,454 | 18,809 | 16,976 | |||||||||||||||||||||
| Gross margin | 85,905 | 78,687 | 174,401 | 161,273 | |||||||||||||||||||||
| General and administrative | 23,703 | 23,364 | 50,331 | 47,283 | |||||||||||||||||||||
| General and administrative depreciation and amortization | 2,007 | 2,091 | 4,280 | 4,264 | |||||||||||||||||||||
| Total operating expenses | 147,185 | 123,369 | 300,257 | 252,337 | |||||||||||||||||||||
| Operating income | 60,195 | 53,232 | 119,790 | 109,726 | |||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||
| Interest income (expense), net | (284 |
) |
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42 | (218 | ) | (29 | ) | |||||||||||||||||
| Other income (expense) | 806 | (102 |
) |
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1,311 | 529 | |||||||||||||||||||
| Total other income (expense) | 522 | (60 |
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1,093 | 500 | |||||||||||||||||||
| Income before income taxes | 60,717 | 53,172 | 120,883 | 110,226 | |||||||||||||||||||||
| Income taxes | 22,824 | 17,439 | 45,164 | 39,221 | |||||||||||||||||||||
| Net income | $ | 37,893 | $ | 35,733 | $ | 75,719 | $ | 71,005 | |||||||||||||||||
| Earnings per share-basic | |||||||||||||||||||||||||
| Basic net income per share | $ | 0.47 | $ | 0.42 | $ | 0.92 | $ | 0.84 | |||||||||||||||||
| Weighted average common shares outstanding | 81,240 | 84,108 | 82,492 | 84,077 | |||||||||||||||||||||
| Earnings per share-diluted | |||||||||||||||||||||||||
| Diluted net income per share | $ | 0.46 | $ | 0.42 | $ | 0.91 | $ | 0.84 | |||||||||||||||||
| Weighted average common shares and dilutive potential common shares outstanding | 81,955 | 84,927 | 83,180 | 84,937 | |||||||||||||||||||||
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Copart, Inc. |
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Consolidated Balance Sheets (in thousands) (Unaudited) |
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January 31,
2011 |
July 31,
2010 |
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| ASSETS | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 203,954 | $ | 268,188 | |||||||||
| Accounts receivable, net | 136,972 | 109,061 | |||||||||||
| Inventories and vehicle pooling costs | 26,038 | 34,866 | |||||||||||
| Income taxes receivable | 4,585 | 10,958 | |||||||||||
| Deferred income taxes | 1,073 | — | |||||||||||
| Prepaid expenses and other assets | 19,731 | 14,342 | |||||||||||
| Total current assets | 392,353 | 437,415 | |||||||||||
| Property and equipment, net | 575,686 | 573,514 | |||||||||||
| Intangibles, net | 10,836 | 13,016 | |||||||||||
| Goodwill | 177,882 | 175,870 | |||||||||||
| Deferred income taxes | 10,904 | 10,213 | |||||||||||
| Other assets | 20,750 | 18,784 | |||||||||||
| Total assets | $ | 1,188,411 | $ | 1,228,812 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable and accrued liabilities | $ | 101,428 | $ | 93,740 | |||||||||
| Deferred revenue | 6,963 | 10,642 | |||||||||||
| Income taxes payable | 1,846 | 1,314 | |||||||||||
| Deferred income taxes | — | 1,154 | |||||||||||
| Short-term debt | 50,656 | 374 | |||||||||||
| Total current liabilities | 160,893 | 107,224 | |||||||||||
| Deferred income taxes | 9,390 | 9,748 | |||||||||||
| Income taxes payable | 25,098 | 23,369 | |||||||||||
| Long-term debt | 350,474 | 601 | |||||||||||
| Other liabilities | 1,222 | 636 | |||||||||||
| Total liabilities | 547,077 | 141,578 | |||||||||||
| Commitments and contingencies | |||||||||||||
| Shareholders’ equity: | |||||||||||||
| Common stock, no par value - 180,000 shares authorized; 70,199 and 84,363 shares issued and outstanding at January 31, 2011 and July 31, 2010, respectively | 316,482 | 365,507 | |||||||||||
| Accumulated other comprehensive loss | (29,574 | ) | (32,741 | ) | |||||||||
| Retained earnings | 354,426 | 754,468 | |||||||||||
| Total shareholders’ equity | 641,334 | 1,087,234 | |||||||||||
| Total liabilities and shareholders’ equity | $ | 1,188,411 | $ | 1,228,812 | |||||||||
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Copart, Inc. |
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Consolidated Statements of Cash Flows (in thousands) (Unaudited) |
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Six Months Ended January 31, |
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| 2011 | 2010 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||
| Net income | $ | 75,719 | $ | 71,005 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
| Depreciation and amortization | 23,089 | 21,078 | |||||||||||
| Allowance for doubtful accounts | 280 | 304 | |||||||||||
| Other long-term liabilities | (282 | ) | (244 | ) | |||||||||
| Share-based compensation | 9,116 | 8,883 | |||||||||||
| Excess tax benefits from stock-based compensation | (1,043 | ) | (2,449 | ) | |||||||||
| Loss(gain) on sale of property and equipment | 2,256 | (77 | ) | ||||||||||
| Deferred income taxes | (3,434 | ) | (5,006 | ) | |||||||||
| Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||||
| Accounts receivable | (28,225 | ) | (10,010 | ) | |||||||||
| Vehicle pooling costs | 9,810 | (2,065 | ) | ||||||||||
| Inventory | (817 | ) | 583 | ||||||||||
| Prepaid expenses and other current assets | (5,157 | ) | (3,854 | ) | |||||||||
| Other Assets | (105 | ) | 353 | ||||||||||
| Accounts payable and accrued liabilities | 6,030 | 6,106 | |||||||||||
| Deferred revenue | (3,682 | ) | (248 | ) | |||||||||
| Income taxes receivable | 7,534 | (1,323 | ) | ||||||||||
| Income taxes payable | 2,234 | (232 | ) | ||||||||||
| Net cash provided by operating activities | 93,323 | 82,804 | |||||||||||
| Cash flows from investing activities: | |||||||||||||
| Purchases of property and equipment including acquisitions | (42,351 | ) | (61,214 | ) | |||||||||
| Proceeds from sale of property and equipment | 20,216 | 1,711 | |||||||||||
| Net cash used in investing activities | (22,135 | ) | (59,503 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||
| Proceeds from the exercise of stock options | 2,861 | 2,479 | |||||||||||
| Proceeds from the issuance of Employee Stock Purchase Plan shares | 1,077 | 1,087 | |||||||||||
| Repurchase of common stock | (538,997 | ) | (3,544 | ) | |||||||||
| Excess tax benefit from share-based payment arrangements | 1,043 | 2,449 | |||||||||||
| Proceeds from issuance of debt | 400,000 | — | |||||||||||
| Debt issuance costs | (2,023 | ) | — | ||||||||||
| Net cash (used in) provided by financing activities | (136,039 | ) | 2,471 | ||||||||||
| Effect of exchange rate changes on cash | 617 | 827 | |||||||||||
| Net (decrease) increase in cash and cash equivalents | (64,234 | ) | 26,599 | ||||||||||
| Cash and cash equivalents at beginning of period | 268,188 | 162,691 | |||||||||||
| Cash and cash equivalents at end of period | $ | 203,954 | $ | 189,290 | |||||||||
| Supplemental disclosure of cash flow information: | |||||||||||||
| Interest paid | $ | 80 | $ | 163 | |||||||||
| Income taxes paid | $ | 38,817 | $ | 45,748 | |||||||||