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TheStreet Open House

Copart Reports Fourth Quarter Financial Results

Copart, Inc. (NASDAQ: 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 VB 2 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 –5,000,000 shares authorized;no shares issued and outstandingat July 31, 2012 and July 31, 2011 respectively

Common stock, $0.0001 par value -180,000,000 shares authorized;124,393,700 and 132,011,034 sharesissued and outstanding at July 31, 2012and July 31, 2011, respectively

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 July 31,
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 )
 
Cash flows from financing activities:
Proceeds from the exercise of stock options 13,651 7,082
Proceeds from the issuance of Employee Stock Purchase Plan shares 1,957 1,957
Repurchases of common stock (203,285 ) (739,638 )
Excess tax benefit from stock-based payment arrangements 4,367 3,547
Proceeds from the issuance of long-term debt 125,000 400,000
Principal payments on long-term debt (56,250 ) (25,000 )
Debt offering costs (313 ) (2,023 )
Net cash used in financing activities (114,873 ) (354,075 )
 
Effect of foreign currency translation (610 ) 1,444
 
Net increase (decrease) in cash and cash equivalents 66,103 (194,179 )
 
Cash and cash equivalents at beginning of period 74,009 268,188
Cash and cash equivalents at end of period $ 140,112 $ 74,009
 

Supplemental disclosure of cash flow information:

Interest paid $ 11,333 $ 3,894
Income taxes paid $ 106,581 $ 85,145




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