Previous Statements by CPRT
» Copart's CEO Discusses F1Q2012 Results - Earnings Call Transcript
» Copart CEO Discusses F4Q 2011 Results - Earnings Call Transcript
» Copart, Inc. F2Q09 (Qtr End 01/31/09) Earnings Call Transcript
» Copart Inc. F4Q08 (Qtr End 07/31/08) Earnings Call Transcript
I’ll now provide some brief comments on the financial performance in our second quarter. Yesterday we reported our results for the second quarter of our 2012 fiscal year. Consolidated revenue was $227.9 million compared to $207.4 million for the same quarter last year, an increase of 9.9%.Included in our second quarter of last fiscal year, there’s a beneficial settlement with the U.K. tax authorities respecting the proper apportionment of auction sales proceeds between revenue and VAT. As a result of the settlement, we recognized in that quarter, $1.8 million in purchase car revenue relating to prior period’s activities. Excluding this settlement, revenue growth would have been 10.8%. The growth in revenue was driven primarily by growth in unit volume, which increased 7.1%. On a same-store sales basis, unit volume grew by 5.2%. In North America, insurance volume grew by 6% and was driven by market wins and by the severe weather we experienced last summer. Non-insurance volume grew by 8.1% and was driven primarily by growth and supply from franchise and independent car dealers, and from individual consigners. Non-insurance volume represented 19.8% of our total North America volume. While the total number of purchased units sold increased by 2%, the decline is a percentage of our total units sold as we continue to migrate contracts in the U.K. and the principal model to the agency model. Yard and fleet expenses grew from $85.1 million to $86.4 million, and reflect the higher volume of cars processed. Our gross margin grew from $85.9 million to $99.7 million or 16.1%. Excluding the impact of the beneficial settlement in the U.K. in our second of last year, our gross margin would have grown 18.5%. General and Administrative cost, excluding depreciation were $23.4 million compared to $23.7 million for the same quarter last year, and included approximately $500,000 in headquarter relocation cost.
In the current quarter we determined that certain assets, primarily our fleet of private airplanes, will be removed from operations and disposed. Consequently these assets, which also include certain real estate and computer hardware, were written down the fair value, resulting in an impairment of $8.8 million.Our operating income, excluding the impairment, increased from $60.2 million to $72.3 million or 20.1%. Excluding the beneficial settlement in the U.K. in the second quarter of last year, operating income grew by 23.8%. We ended the quarter with $127.6 million in cash, accounts receivable grew as we increased inventory. During the quarter we generated $26.2 million in operating cash flow. We expended $7.8 million for capital assets, and $91.4 million for the repurchase of 1.97 million shares of our common stock. At the end of the quarter, we had 53.3 million shares outstanding on an undiluted basis, and we had 25.5 million shares remaining in our share repurchase authorization. In the quarter, we fixed our interest rate – in the previous quarter we fixed our interest rate with respect to 75% our outstanding term debt at 2.35%. During this quarter we fixed the interest rate with respect to the remaining 25% of our debt at 2.19%, all through interest rate swap arrangements. Our outstanding term debt obligation is $481 million, and we have $100 million available on a revolver. That concludes my short comments; we’ll now turn the call over to Jayson Adair, our CEO for further discussion of our second quarter’s results. Jayson Adair Thank you, Will. Thank you, Will. Again, good morning everyone, and welcome to the second quarter call. I’ve got seven points that I want to go over with you this morning. We’ll talk about CapEx, facilities, costs, ASPs, the impairment, give you a little more color on that, the transition and Overdrive. Read the rest of this transcript for free on seekingalpha.com