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TMCNet:  Copart Reports First Quarter Fiscal 2013 Financial Results

[November 27, 2012]

Copart Reports First Quarter Fiscal 2013 Financial Results

DALLAS --(Business Wire)--

Copart, Inc. (NASDAQ: CPRT) today reported the results for its first quarter ended October 31, 2012.

For the three months ended October 31, 2012, revenue, operating income and net income were $238.9 million, $74.4 million and $45.8 million, respectively. These represent increases in revenue of $13.2 million, or 5.9%; in operating income of $9.0 million, or 13.7%; and in net income of $4.7 million, or 11.4%, from the same quarter last year. Fully diluted earnings per share for the three months ended October 31, 2012 were $0.36 compared to $0.31 for the same period last year, an increase of 16.1%.

Also, during the current quarter the Company repurchased 500,000 shares of its common stock at a weighted average price of $27.77 per share under its share repurchase program. At the end of the quarter, Copart had 47,713,218 shares available for repurchase under its share repurchase program.

On Wednesday November 28, 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=544612&s=1&k=CEAE6B5A03619F91BE8BFD5643A0E74D. A replay of the call will be available through December 28, 2012 by calling (888) 203-1112. Use confirmation code #6449355.

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 162 facilities; with operations 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) and the United Arab Emirates (www.copart.ae). 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.

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Copart, Inc.

 
Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

 
 

Three months ended
October 31,

2012 2011
Service revenues and vehicle sales:
Service revenues $ 195,179 $ 182,816
Vehicle sales 43,687 42,810
Total service revenues and vehicle sales 238,866 225,626
 
Operating costs and expenses:
Yard operations 88,021 88,005
Cost of vehicle sales 36,311 34,194
Yard depreciation and amortization 9,098 8,202
Gross margin 105,436 95,225
General and administrative 27,338 25,956
General and administrative depreciation and amortization 3,741 3,893
Total operating expenses 164,509 160,250
Operating income 74,357 65,376
Other (expense) income:
Interest (expense) income (2,476 ) (2,125 )
Other (expense) income, net (293 ) 564
Total other (expense) (2,769 ) (1,561 )
Income before income taxes 71,588 63,815
Income taxes 25,743 22,666
Net income $ 45,845 $ 41,149
 
Earnings per share-basic
Basic net income per share $ 0.37 $ 0.31
Weighted average common shares outstanding 124,302 131,432
 
Earnings per share-diluted
Diluted net income per share $ 0.36 $ 0.31
Weighted average common shares and dilutive potential common shares outstanding 128,473 133,802
 
Copart, Inc.
 
Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

 

October 31,
2012

July 31,
2012

ASSETS
 
Current assets:
Cash and cash equivalents $ 131,430 $ 140,112
Accounts receivable, net 149,554 138,966
Vehicle pooling costs and inventories 23,414 24,222
Income taxes receivable 1,220 2,312
Deferred income taxes 3,770 3,600
Prepaid expenses and other assets 14,655 9,155
Assets held for sale 3,026 3,926
Total current assets 327,069 322,293
Property and equipment, net 625,043 587,163
Intangibles, net 7,041 7,985
Goodwill 198,558 196,438
Deferred income taxes 25,490 22,280
Other assets 31,325 18,907
Total assets $ 1,214,526 $ 1,155,066
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 112,347 $ 102,958
Deferred revenue 5,218 5,390
Income taxes payable 23,671 3,082
Current portion of long-term debt and capital lease obligations 75,177 75,170
Other current liabilities 802 785
Total current liabilities 217,215 187,385
Deferred income taxes 7,098 7,186
Income taxes payable 23,525 22,531
Long term debt and capital lease obligations 350,159 368,950
Other liabilities 7,658 7,897
Total liabilities 605,655 593,949
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.0001 par value - 5,000,000 shares authorized; no shares issued and outstanding at October 31, 2012 and July 31, 2012 respectively - -
Common stock, $0.0001 par value - 180,000,000 shares authorized; 124,297,683 and 124,393,700 shares issued and outstanding at October 31, 2012 and July 31, 2012, respectively 12 12
Additional paid-in capital 332,021 326,187
Accumulated other comprehensive loss (30,705 ) (38,043 )
Retained earnings 307,543 272,961
Total shareholders' equity 608,871 561,117
Total liabilities and shareholders' equity $ 1,214,526 $ 1,155,066
 

Copart, Inc.

 
Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 
  Three Months Ended
October 31,
2012 2011
Cash flows from operating activities:
Net income $ 45,845 $ 41,149
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 12,839 12,027
Allowance for doubtful accounts - (557 )
Share-based compensation 5,174 5,045
Excess tax benefits from share-based compensation (1,922 ) (202 )
Gain on sale of property and equipment (204 ) (288 )
Deferred income taxes (3,778 ) (3,572 )
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable (10,321 ) (13,144 )
Vehicle pooling costs and inventories 982 1,523
Prepaid expenses and other current assets (635 ) 3,499
Other assets (6,039 ) (4,165 )
Accounts payable and accrued liabilities 8,833 207
Deferred revenue (174 ) (1,108 )
Income taxes receivable 3,067 4,572
Income taxes payable 21,517 18,727
Other liabilities 131 474
Net cash provided by operating activities 75,315 64,187
 
Cash flows from investing activities:
Purchases of property and equipment (48,069 ) (7,274 )
Proceeds from sale of assets 894 182
Investment in escrow (11,167 ) -
Net cash used in investing activities (58,342 ) (7,092 )
 
Cash flows from financing activities:
Proceeds from the exercise of stock options 4,148 1,359
Excess tax benefit from share-based payment arrangements 1,922 202
Proceeds from the issuance of long-term debt - 125,000
Debt offering costs - (313 )
Principal payments on notes payable (18,755 ) -
Repurchase of common stock (13,885 ) (43,983 )
Net cash (used in) provided by financing activities (26,570 ) 82,265
 
Effect of foreign currency translation 915 (692 )
 
Net (decrease) increase in cash and cash equivalents (8,682 ) 138,668
 
Cash and cash equivalents at beginning of period 140,112 74,009
Cash and cash equivalents at end of period $ 131,430 $ 212,677
 
Supplemental disclosure of cash flow information:
Interest paid $ 2,584 $ 2,011
Income taxes paid $ 4,949 $ 2,998


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