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.email@example.com
Copart Reports First Quarter Fiscal 2014 Financial Results
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