COPART INC - FORM 8-K - EX-99.1 - September 21, 2011

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8-K - 8-K - COPART INC	d28680-8k.htm

Copart, Inc.

For Immediate Release

Copart Reports Fourth Quarter Financial Results

Fairfield, Calif. (September 20, 2011) — Copart, Inc. (NASDAQ: CPRT) today reported the results for its fourth quarter and fiscal year ended July 31, 2011.

For the three months ended July 31, 2011, revenue, operating income and net income were $215.4 million, $63.5 million and $40.5 million, respectively. These represent increases in revenue of $25.0 million, or 13.1%; in operating income of $6.2 million, or 10.9%; and in net income of $4.3 million, or 11.8%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.59 compared to $0.43 last year, an increase of 37.2%.

For the twelve months ended July 31, 2011, revenue, operating income and net income were $872.2 million, $265.3 million and $166.4 million, respectively. These represent increases in revenue of $99.4 million, or 12.9%; in operating income of $26.2 million, or 11.0%; and in net income of $14.7 million, or 9.7%, respectively, from the same period last year. Fully diluted earnings per share for the twelve months ended July 31, 2011 were $2.17 compared to $1.78 last year, an increase of 21.9%.

During the fourth quarter the Company repurchased 2,990,949 shares of its common stock at a weighted average price of $45.17 per share under its share repurchase program. At the end of the quarter, Copart had 8,546,963 shares available for repurchase under its share repurchase program.

On Wednesday, September 21, 2011, 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=357279&s=1&k=6DF9911EB99F39CB12FDF3F6266C55CD. A replay of the call will be available through October 21, 2011 by calling (888) 203-1112. Use confirmation code #4238504.

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 VB² 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 154 facilities in the United States, Canada and the United Kingdom. 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.

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Copart, Inc. ~ 4665 Business Center Drive, Fairfield, California 94534 ~ (707) 639-5000

Copart, Inc.

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.

Contact:

Cindy Cross, Assistant to the Chief Financial Officer

(707) 639-5427

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Copart, Inc. ~ 4665 Business Center Drive, Fairfield, California 94534 ~ (707) 639-5000

Copart, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)


	Three months ended July 31,						Twelve months ended July 31,
	2011				2010		2011				2010
Net sales and revenue:
Service revenues	$	174,118			$	158,391	$		723,610		$	642,134
Vehicle sales		41,325				32,077			148,636			130,745
Total service revenues and vehicle sales	$	215,443			$	190,468	$		872,246		$	772,879
Operating costs and expenses:
Yard operations	81,822				68,465		337,188				285,271
Cost of vehicle sales	35,142				26,627		125,202				104,673
Yard depreciation and amortization	8,892				9,152		36,961				34,941
Gross margin	89,587				86,224		372,895				347,994
General and administrative	23,737				27,016		98,864				100,634
General and administrative depreciation and amortization	2,394				1,988		8,741				8,290
Total operating expenses	151,987				133,248		606,956				533,809
Operating income	63,456				57,220		265,290				239,070
Other income (expense):
Interest income (expense), net	(1,693			)	31		(3,585			)	(11		)
Other income	882				436		2,172				436
Total other income (expense)	(811			)	467		(1,413			)	425
Income before income taxes	62,645				57,687		263,877				239,495
Income taxes	22,124				21,453		97,502				87,868
Net income	$	40,521			$	36,234	$		166,375		$	151,627
Earnings per share-basic
Basic net income per share	$	0.60			$	0.43	$	2.20			$	1.80

Weighted average common shares outstanding	67,615				84,284		75,649				84,165

Earnings per share-diluted
Diluted net income per share	$		0.59		$	0.43	$		2.17		$	1.78
Weighted average common shares and dilutive potential common shares outstanding	69,116				85,087		76,676				85,027

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Copart, Inc. ~ 4665 Business Center Drive, Fairfield, California 94534 ~ (707) 639-5000

Copart, Inc.

Consolidated Balance Sheets

(in thousands)

(Unaudited)


	July 31, 2011			July 31, 2010
ASSETS

Current assets:
Cash and cash equivalents	$	74,009		$	268,188
Accounts receivable, net	122,859			109,061
Inventories and vehicle pooling costs	25,042			34,866
Income taxes receivable	5,145			10,958
Prepaid expenses and other assets	14,813			14,342
Total current assets	241,868			437,415
Property and equipment, net	600,388			573,514
Intangibles, net	12,748			13,016
Goodwill	198,620			175,870
Deferred income taxes	9,425			10,213
Other assets	21,387			18,784
Total assets	$		1,084,436	$		1,228,812

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$		101,708	$	93,740
Deferred revenue	5,636			10,642
Income taxes payable	3,543			1,314
Deferred income taxes	440			1,154
Current portion of debt	50,370			374
Other current liabilities	4,929			—
Total current liabilities	166,626			107,224
Deferred income taxes	10,057			9,748
Income taxes payable	24,773			23,369
Long-term debt	325,386			601
Other liabilities	2,422			636
Total liabilities	529,264			141,578
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value - 180,000 shares authorized; 66,006 and 84,363 shares issued and outstanding at July 31, 2011 and July 31, 2010, respectively	313,940			365,507
Accumulated other comprehensive loss	(23,225)			(32,741)
Retained earnings	264,457			754,468
Total shareholders’ equity	555,172			1,087,234
Total liabilities and shareholders’ equity	$	1,084,436		$	1,228,812

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Copart, Inc. ~ 4665 Business Center Drive, Fairfield, California 94534 ~ (707) 639-5000

Copart, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)


	Twelve Months Ended July 31,
	2011			2010
Cash flows from operating activities:
Net income	$	166,375		$		151,627
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	45,694			43,242
Allowance for doubtful accounts	270			442
Other long-term liabilities	(428		)	(440			)
Share-based compensation	19,007			17,955
Excess tax benefits from share-based compensation	(3,547		)	(5,643			)
Loss on sale of property and equipment	1,882			659
Deferred income taxes	(2,099		)	(4,512			)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(12,865		)	2,436
Vehicle pooling costs	13,201			(1,210			)
Inventories	(2,666		)	(256			)
Prepaid expenses and other current assets	4,785			(8,896			)
Other assets	739			311
Accounts payable and accrued liabilities	5,614			8,098
Deferred revenue	(5,015		)	(2,527			)
Income taxes receivable	9,456			861
Income taxes payable	2,529			(2,740			)
Net cash provided by operating activities	242,932			199,407

Cash flows from investing activities:
Principal payments from (issuance of) notes receivable	—			(1,300			)
Purchases of property and equipment, including acquisitions	(105,082		)	(97,202			)
Proceeds from sale of property and equipment	20,602			2,477
Net cash used in investing activities	(84,480		)	(96,025			)

Cash flows from financing activities:
Proceeds from the exercise of stock options	7,082			6,285
Proceeds from the issuance of Employee Stock Purchase Plan shares	1,957			2,044
Repurchase of common stock	(739,638		)	(12,706			)
Excess tax benefit from share-based payment arrangements	3,547			5,643
Issuance of long term debt	400,000			—
Principal payments of notes payable	(25,000		)	—
Debt offering costs	(2,023		)	—
Net cash (used in) provided by financing activities	(354,075		)	1,266

Effect of foreign currency translation	1,444			849

Net (decrease) increase in cash and cash equivalents	(194,179		)	105,497

Cash and cash equivalents at beginning of period	268,188			162,691
Cash and cash equivalents at end of period	$	74,009		$		268,188

Supplemental disclosure of cash flow information:
Interest paid	$	3,894		$	216
Income taxes paid	$	85,145		$	93,989

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Copart, Inc. ~ 4665 Business Center Drive, Fairfield, California 94534 ~ (707) 639-5000

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