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TheStreet Open House

Copart Reports Fourth Quarter Financial Results

On Wednesday, September 25, 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=682297&s=1&k=53B067B7327E8356C223CD689A7999D0. A replay of the call will be available through October 23, 2013 by calling (888) 203-1112. Use confirmation code #7330277.

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 has facilities 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.

 

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

   

Three months ended July 31,

Twelve months ended July 31,

2013   2012   2013   2012
Service revenues and vehicle sales:
Service revenues $ 213,591 $ 187,464 $ 849,667 $ 757,272
Vehicle sales   50,106   39,092   196,719   166,919

Total service revenues and vehicle sales

$ 263,697 $ 226,556 $ 1,046,386 $ 924,191
Operating costs and expenses:
Yard operations 107,292 85,907 417,462 344,566
Cost of vehicle sales 43,090 32,914 167,236 136,971
Yard depreciation and amortization 10,243 8,309 40,766 33,038
Gross margin 103,072 99,426 420,922 409,616
General and administrative 35,782 26,404 121,968 99,376
General and administrative depreciation and amortization 4,238 3,528 15,962 15,116
Impairment 8,771
Total operating expenses 200,645 157,062 763,394 637,838
Operating income 63,052 69,494 282,992 286,353
Other income (expense):
Interest expense, net (2,356 ) (3,015 ) (9,629 ) (10,984 )
Other income 1,466 999 3,509 2,687
Total other expense (890 ) (2,016 ) (6,120 ) (8,297 )
Income before income taxes 62,162 67,478 276,872 278,056
Income taxes 20,858 22,582 96,847 95,937
Net income $ 41,304 $ 44,896 $ 180,025 $ 182,119
Earnings per share-basic              
Basic net income per share $ 0.33 $ 0.36 $ 1.44 $ 1.42
 
Weighted average common shares outstanding 125,380 126,112 124,912 128,120
 
Earnings per share-diluted                
Diluted net income per share $ 0.32 $ 0.35 $ 1.39 $ 1.39
Diluted weighted average common shares outstanding 130,613 129,853 129,781 131,428
 

Consolidated Balance Sheets

(in thousands)

(Unaudited)

   
July 31,

2013

July 31,

2012

ASSETS
 
Current assets:
Cash and cash equivalents $ 63,631 $ 140,112
Accounts receivable, net 182,714 137,900
Inventories and vehicle pooling costs 31,202 24,222
Income taxes receivable 9,416 2,312
Deferred income taxes 2,216 3,600
Prepaid expenses and other assets 15,344 9,155
Assets held for sale 1,929   3,926  
Total current assets 306,452 321,227
Property and equipment, net 677,517 587,163
Intangibles, net 17,706 7,985
Goodwill 267,463 196,438
Deferred income taxes 30,117 22,280
Other assets 35,226   18,907  
Total assets $ 1,334,481   $ 1,154,000  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 136,648 $ 101,892
Bank overdraft 16,291
Deferred revenue 4,832 5,390
Income taxes payable 4,741 3,082
Current portion of long-term debt and capital lease obligations 76,047 75,170
Other current liabilities   785  
Total current liabilities 238,559 186,319
Deferred income taxes 8,071 7,186
Income taxes payable 23,091 22,531
Long-term debt and capital lease obligations 296,410 368,950
Other liabilities 5,949   7,897  
Total liabilities 572,080   592,883  
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value - 5,000,000 shares authorized; no shares issued and outstanding at July 31, 2013 and July 31, 2012, respectively
Common stock, $0.0001 par value - 180,000,000 shares authorized; 125,494,995 and 124,393,700 shares issued and outstanding at July 31, 2013 and July 31, 2012, respectively 13 12
Additional paid in capital 368,769 326,187
Accumulated other comprehensive loss (47,161 ) (38,043 )
Retained earnings 440,780   272,961  
Total stockholders’ equity 762,401   561,117  
Total liabilities and stockholders’ equity $ 1,334,481   $ 1,154,000  
 

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

  Twelve Months Ended July 31,
2013   2012
Cash flows from operating activities:
Net income $ 180,025 $ 182,119
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 56,728 48,167
Allowance for doubtful accounts (356 ) (192 )
Stock-based compensation 19,557 21,791
Excess tax benefits from stock-based compensation (6,097 ) (4,367 )
Impairment of long-lived assets 8,771
Gain on sale of property and equipment (962 ) (143 )
Deferred income taxes (3,605 ) (17,579 )
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable (31,171 )

(16,004

)
Vehicle pooling costs and inventories (5,403 ) 924
Prepaid expenses and other current assets (5,971 ) 6,026
Other assets (18,714 ) (1,951 )
Accounts payable and accrued liabilities 14,749

(3,805

)
Deferred revenue (871 ) (243 )
Income taxes receivable (752 ) 7,082
Income taxes payable 1,609 (2,545 )
Other liabilities 560 1,622
Net cash provided by operating activities 199,326 229,673
 
Cash flows from investing activities:
Purchases of property and equipment including acquisitions (214,287 ) (57,396 )
Proceeds from sale of property and equipment 6,266 9,309
Net cash used in investing activities (208,021 ) (48,087 )
 
Cash flows from financing activities:
Proceeds from the exercise of stock options 21,442 13,651
Proceeds from the issuance of Employee Stock Purchase Plan shares 1,948 1,957
Repurchase of common stock (15,009 ) (203,285 )
Excess tax benefit from stock-based compensation 6,097 4,367
Proceeds from issuance of long-term debt 125,000
Debt offering costs (313 )
Change in book overdraft 16,291
Principal payments on long-term debt (96,660 ) (56,250 )
Net cash used in financing activities (65,891 ) (114,873 )
 
Effect of foreign currency translation (1,895 ) (610 )
 
Net (decrease) increase in cash and cash equivalents (76,481 ) 66,103
 
Cash and cash equivalents at beginning of period 140,112 74,009
Cash and cash equivalents at end of period $ 63,631 $ 140,112
 
Supplemental disclosure of cash flow information:
Interest paid $ 10,267 $ 11,333
Income taxes paid $ 95,182 $ 106,581




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