COPART INC - FORM 8-K - EX-99.1

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8-K - 8-K - COPART INC	d28294_8k.htm

Copart, Inc.

For Immediate Release

Copart Reports Third Quarter Financial Results

Fairfield, Calif. (June 1, 2011) — Copart, Inc. (NASDAQ: CPRT) today reported the results for the quarter ended April 30, 2011, the third quarter of its 2011 fiscal year.

For the three months ended April 30, 2011, revenue, operating income and net income were $236.8 million, $82.0 million and $50.1 million, respectively. These represent increases in revenue of $16.4 million, or 7.4%; in operating income of $9.9 million, or 13.7%; and in net income of $5.7 million, or 12.9%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.71 compared to $0.52 last year, an increase of 36.5%.

For the nine months ended April 30, 2011, revenue, operating income and net income were $656.8 million, $201.8 million and $125.9 million, respectively. These represent increases in revenue of $74.4 million, or 12.8%; in operating income of $20.0 million, or 11.0%; and in net income of $10.5 million, or 9.1%, respectively, from the same period last year. Fully diluted earnings per share for the nine months ended April 30, 2011 were $1.59 compared to $1.36 last year, an increase of 16.9%.

During the quarter the Company repurchased 1,441,542 shares of its common stock at a weighted average price of $43.03 per share under its share repurchase program. At the end of the quarter, Copart had 11,537,912 shares available for repurchase under its share repurchase program.

On Thursday, June 2, 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=315270&s=1&k=9431768B297D0E59A0F1A4C5E1ED10B1. A replay of the call will be available through July 2, 2011 by calling (888) 203-1112. Use confirmation code #8363116.

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, the general public and others. 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 April 30,							Nine months ended April 30,
	2011				2010			2011				2010
Net sales and revenue:
Service revenues	$	196,169			$	180,511		$		549,492		$	483,743
Vehicle sales		40,586				39,838				107,312			98,668
Total service revenues and vehicle sales	$	236,755			$	220,349		$		656,804		$	582,411
Operating costs and expenses:
Yard operations	83,736				79,602			255,366				216,806
Cost of vehicle sales	34,852				31,436			90,060				78,046
Yard depreciation and amortization	9,260				8,813			28,069				25,789
Gross margin	108,907				100,498			283,309				261,770
General and administrative	24,796				26,334			75,127				73,618
General and administrative depreciation and amortization	2,067				2,038			6,347				6,302
Total operating expenses	154,711				148,223			454,969				400,561
Operating income	82,044				72,126			201,835				181,850
Other income (expense):
Interest income (expense), net	(1,673			)	(13		)	(1,892			)	(41		)
Other income (expense)	(21			)	(529		)	1,290				--
Total other income (expense)	(1,694			)	(542		)	(602			)	(41		)
Income before income taxes	80,350				71,584			201,233				181,809
Income taxes	30,214				27,194			75,379				66,415
Net income	$	50,136			$	44,390		$		125,854		$	115,394
Earnings per share-basic
Basic net income per share	$	0.72			$	0.53		$	1.61			$	1.37

Weighted average common shares outstanding	69,806				84,224			78,357				84,125

Earnings per share-diluted
Diluted net income per share	$		0.71		$	0.52		$		1.59		$	1.36
Weighted average common shares and dilutive potential common shares outstanding	71,033				85,148			79,224				85,006

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

Copart, Inc.

Consolidated Balance Sheets

(in thousands)

(Unaudited)


	April 30, 2011			July 31, 2010
ASSETS

Current assets:
Cash and cash equivalents	$	192,148		$	268,188
Accounts receivable, net	117,534			109,061
Inventories and vehicle pooling costs	22,746			34,866
Income taxes receivable	4, 844			10,958
Deferred income taxes	1,573			—
Prepaid expenses and other assets	14,521			14,342
Total current assets	353,366			437,415
Property and equipment, net	598,968			573,514
Intangibles, net	10,414			13,016
Goodwill	200,611			175,870
Deferred income taxes	9,438			10,213
Other assets	18,515			18,784
Total assets	$		1,191,312	$		1,228,812

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$		104,229	$	93,740
Deferred revenue	6,189			10,642
Income taxes payable	10,243			1,314
Deferred income taxes	—			1,154
Short-term debt	50,745			374
Total current liabilities	171,406			107,224
Deferred income taxes	9,482			9,748
Income taxes payable	25,127			23,369
Long-term debt	337,952			601
Other liabilities	1,003			636
Total liabilities	544,970			141,578
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value - 180,000 shares authorized; 68,944 and 84,363 shares issued and outstanding at April 30, 2011 and July 31, 2010, respectively	319,642			365,507
Accumulated other comprehensive loss	(20,168)			(32,741)
Retained earnings	346,868			754,468
Total shareholders’ equity	646,342			1,087,234
Total liabilities and shareholders’ equity	$	1,191,312		$	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)


	Nine Months Ended April 30,
	2011			2010
Cash flows from operating activities:
Net income	$	125,854		$		115,394
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,363			32,091
Allowance for doubtful accounts	(10		)	432
Other long-term liabilities	(346		)	(336			)
Share-based compensation	14,193			13,300
Excess tax benefits from stock-based compensation	(2,925		)	(2,966			)
Loss on sale of property and equipment	2,076			2,402
Deferred income taxes	(3,155		)	(7,298			)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(7,086		)	9,196
Vehicle pooling costs	13,934			1,802
Inventory	(919		)	164
Prepaid expenses and other current assets	164			(11,551			)
Other assets	2,049			171
Accounts payable and accrued liabilities	8,367			17,610
Deferred revenue	(4,459		)	(2,348			)
Income taxes receivable	9,105			3,747
Income taxes payable	9,445			2,173
Net cash provided by operating activities	200,650			173,983

Cash flows from investing activities:
Purchases of property and equipment, including acquisitions	(91,086		)	(80,875			)
Proceeds from sale of property and equipment	20,385			3,021
Net cash used in investing activities	(70,701		)	(77,854			)

Cash flows from financing activities:
Proceeds from the exercise of stock options	5,878			4,094
Proceeds from the issuance of Employee Stock Purchase Plan shares	1,077			1,087
Repurchase of common stock	(603,442		)	(3,544			)
Excess tax benefit from share-based payment arrangements	2,925			2,966
Proceeds from issuance of debt	400,000			—
Principal payments of notes payable	(12,500		)	—
Debt issuance costs	(2,023		)	—
Net cash (used in) provided by financing activities	(208,085		)	4,603

Effect of exchange rate changes on cash	2,096			829

Net (decrease) increase in cash and cash equivalents	(76,040		)	101,561

Cash and cash equivalents at beginning of period	268,188			162,691
Cash and cash equivalents at end of period	$	192,148		$		264,252

Supplemental disclosure of cash flow information:
Interest paid	$	1,793		$	201
Income taxes paid	$	57,440		$	67,646

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

COPART INC - FORM 8-K - EX-99.1 - June 2, 2011

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COPART INC Reports