Copart Reports First Quarter Fiscal 2014 Financial Results

  Copart Reports First Quarter Fiscal 2014 Financial Results

Business Wire

DALLAS -- November 25, 2013

Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter
ended October 31, 2013.

For the three months ended October 31, 2013, revenue, operating income and net
income were $279.9 million, $65.0 million and $41.4 million, respectively.
These represent an increase in revenue of $41.0 million, or 17.2%; and
decreases in operating income of $9.4 million, or 12.6%; and in net income of
$4.4 million, or 9.6%, respectively, from the same quarter last year. Fully
diluted earnings per share for the three months were $0.32 compared to $0.36
last year, a decrease of 11.1%.

Included in the financial results for the most recent quarter are the results
of our QCSA acquisition, which we closed on May 30, 2013. These results
included revenues of $17.2 million and expenses, excluding severance and lease
termination costs, of $17.9 million. We expect our QCSA acquisition to
contribute to our operating profit by our third quarter of this fiscal year.
During the quarter, severance and lease termination costs totaled $3.7
million. We expect severance and lease termination costs to continue into our
third quarter of this fiscal year.

On Tuesday, November 26, 2013, 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=723058&s=1&k=E6381375F4F886EED7BA2F166873679E. A
replay of the call will be available through December 24, 2013 by calling
(888) 203-1112. Use confirmation code #9392710.

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 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.

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
                                                       October 31,
                                                       2013        2012
Service revenues and vehicle sales:
Service revenues                                       $ 226,363   $ 195,179
Vehicle sales                                          53,520      43,687
Total service revenues and vehicle sales               279,883     238,866
                                                                             
Operating costs and expenses:
Yard operations                                        115,861     88,021
Cost of vehicle sales                                  46,091      36,311
Yard depreciation and amortization                     10,095      9,098
Gross margin                                           107,836     105,436
General and administrative                             38,468      27,338
General and administrative depreciation and            4,409       3,741
amortization
Total operating expenses                               214,924     164,509
Operating income                                       64,959      74,357
Other (expense) income:
Interest expense                                       (2,137    ) (2,476    )
Other income (expense) , net                           1,423       (293      )
Total other expense                                    (714      ) (2,769    )
Income before income taxes                             64,245      71,588
Income taxes                                           22,823      25,743
Net income                                             $ 41,422    $ 45,845
                                                                             
Earnings per share-basic
Basic net income per share                             $ 0.33      $ 0.37
Weighted average common shares outstanding             125,460     124,302
                                                                             
Earnings per share-diluted
Diluted net income per share                           $ 0.32      $ 0.36
Weighted average common shares and dilutive            130,706     128,473
potential common shares outstanding
                                                                             

Copart, Inc.
Consolidated Balance Sheets
(in thousands)
(Unaudited)
                                                 
                                                   October 31,   July 31,
                                                   2013          2013
ASSETS
                                                                             
Current assets:
Cash and cash equivalents                          $ 77,052      $ 63,631
Accounts receivable, net                           187,615       182,714
Vehicle pooling costs and inventories              30,507        31,202
Income taxes receivable                            1,846         9,416
Deferred income taxes                              2,656         2,216
Prepaid expenses and other assets                  19,350        15,344
Assets held for sale                               1,929         1,929
Total current assets                               320,955       306,452
Property and equipment, net                        692,398       677,517
Intangibles, net                                   15,907        17,706
Goodwill                                           281,447       267,463
Deferred income taxes                              29,029        30,117
Other assets                                       57,652        35,226
Total assets                                       $ 1,397,388   $ 1,334,481
                                                                             
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities           $ 154,847     $ 136,648
Bank overdraft                                     —             16,291
Deferred revenue                                   4,179         4,832
Income taxes payable                               21,576        4,741
Current portion of long-term debt and capital      77,305        76,047
lease obligations
Total current liabilities                          257,907       238,559
Deferred income taxes                              7,475         8,071
Income taxes payable                               23,399        23,091
Long term debt and capital lease obligations       280,121       296,410
Other liabilities                                  5,839         5,949
Total liabilities                                  574,741       572,080
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.0001 par value – 5,000,000
shares authorized; no shares issued and            —             —
outstanding at October 31, 2013 and July 31,
2013 respectively
Common stock, $0.0001 par value - 180,000,000
shares authorized; 125,547,268 and 125,494,995     13            13
shares issued and outstanding at October 31,
2013 and July 31, 2013, respectively
Additional paid-in capital                         373,177       368,769
Accumulated other comprehensive loss               (32,680     ) (47,161     )
Retained earnings                                  482,137       440,780
Total shareholders’ equity                         822,647       762,401
Total liabilities and shareholders’ equity         $ 1,397,388   $ 1,334,481
                                                                             


Copart, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
                                                      
                                                        Three Months Ended
                                                        October 31,
                                                        2013       2012
Cash flows from operating activities:
Net income                                              $ 41,422   $ 45,845
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                           14,504     12,839
Allowance for doubtful accounts                         350        —
Stock-based compensation                                4,867      5,174
Excess tax benefits from stock-based compensation       (58      ) (1,922    )
Gain on sale of property and equipment                  (674     ) (204      )
Deferred income taxes                                   (3,010   ) (3,778    )
Changes in operating assets and liabilities, net of
effects from acquisitions:
Accounts receivable                                     (4,706   ) (9,596    )
Vehicle pooling costs and inventories                   1,066      982
Prepaid expenses and other current assets               (3,699   ) (635      )
Other assets                                            (15,027  ) (6,039    )
Accounts payable and accrued liabilities                6,483      8,108
Deferred revenue                                        (654     ) (174      )
Income taxes receivable                                 7,633      3,067
Income taxes payable                                    16,909     21,517
Other liabilities                                       2,309      131
Net cash provided by operating activities               67,715     75,315
                                                                             
Cash flows from investing activities:
Purchases of property and equipment including           (21,595  ) (48,069   )
acquisitions
Proceeds from sale of property                          853        894
Investment in escrow                                    —          (11,167   )
Net cash used in investing activities                   (20,742  ) (58,342   )
                                                                             
Cash flows from financing activities:
Proceeds from the exercise of stock options             312        4,148
Excess tax benefit from stock-based payment             58         1,922
arrangements
Change in bank overdraft                                (16,291  ) —
Principal payments on long-term debt                    (18,750  ) (18,755   )
Repurchase of common stock                              (310     ) (13,885   )
Net cash used in financing activities                   (34,981  ) (26,570   )
                                                                             
Effect of foreign currency translation                  1,429      915
                                                                             
Net increase (decrease) in cash and cash equivalents    13,421     (8,682    )
                                                                             
Cash and cash equivalents at beginning of period        63,631     140,112
Cash and cash equivalents at end of period              $ 77,052   $ 131,430
                                                                             
Supplemental disclosure of cash flow information:
Interest paid                                           $ 2,286    $ 2,584
Income taxes paid                                       $ 1,548    $ 4,949
                                                                             

Contact:

Copart, Inc.
Deana Lott, 972-391-5094
Assistant to the Chief Financial Officer
Deana.lott@copart.com
 
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