COPART INC - FORM 8-K - EX-99.1 - PRESS RELEASE. DATED NOVEMBER 23, 2015 OF COPART, INC. - November 23, 2015

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Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports First Quarter Fiscal 2016 Financial Results
Dallas, Texas. (November 23, 2015) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2015.
For the three months ended October 31, 2015, revenue, gross margin and net income were $288.8 million, $120.9 million and $52.4 million, respectively. These represent a decrease in revenue of $1.5 million, or 0.5%; a decrease in gross margin of $1.4 million, or 1.2%; and a decrease in net income of $0.2 million, or 0.4%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.42 compared to $0.40 last year, an increase of 5.0%.
On Tuesday, November 24, 2015, 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://stream.conferenceamerica.com/copart112415. A replay of the call will be available through January 23, 2016 by calling (877) 919-4059. Use confirmation code # 31733054.
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 locations, to end users. Copart remarkets the vehicles through Internet sales utilizing its VB3 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 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, Oman and Bahrain (www.copartmea.com), India (www.copart.in), and Spain (www.autoresiduos.com). Copart links sellers to more than 750,000 members in over 150 countries worldwide through its multi-channel platform. Copart was recently ranked at the top of Deloitte’s “Exceptional 100” list of companies, which reviewed U.S. publicly traded companies based upon a multidimensional approach to measuring financial performance. For more information, or to become a member, visit www.copart.com.


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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



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:       
Christopher M. Smith, Senior Analyst, Office of the Chief Financial Officer
 
972-391-5021 or christopher.smith3@copart.com



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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



Copart, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended 
 October 31,
 
2015
 
2014
Service revenues and vehicle sales:
 
 
 
Service revenues
$
250,967

 
$
246,597

Vehicle sales
37,871

 
43,789

Total service revenues and vehicle sales
288,838

 
290,386

Operating expenses:
 
 
 
Yard operations
126,878

 
121,599

Cost of vehicle sales
32,068

 
37,073

Yard depreciation and amortization
8,345

 
8,860

Yard stock-based payment compensation
686

 
546

Gross margin
120,861

 
122,308

General and administrative
26,711

 
33,217

General and administrative depreciation and amortization
3,176

 
2,870

General and administrative stock-based payment compensation
4,728

 
3,820

Total operating expenses
202,592

 
207,985

Operating income
86,246

 
82,401

Other (expense) income:
 
 
 
Interest expense, net
(5,513
)
 
(1,771
)
Other income, net
1,027

 
1,593

Total other expenses
(4,486
)
 
(178
)
Income before income taxes
81,760

 
82,223

Income taxes
29,347

 
29,608

Net income
$
52,413

 
$
52,615

 
 
 
 
Basic net income per common share
$
0.44

 
$
0.42

Weighted average common shares outstanding
120,155

 
126,217

 
 
 
 
Diluted net income per common share
$
0.42

 
$
0.40

Diluted weighted average common shares outstanding
125,572

 
131,517



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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



Copart, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
October 31, 2015
 
July 31, 2015
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
472,916

 
$
456,012

Accounts receivable, net
231,403

 
215,696

Vehicle pooling costs and inventories
35,707

 
33,562

Income taxes receivable
950

 
6,092

Deferred income taxes
2,055

 
3,396

Prepaid expenses and other assets
42,625

 
19,824

Total current assets
785,656

 
734,582

Property and equipment, net
705,590

 
700,402

Intangibles, net
16,229

 
17,857

Goodwill
270,620

 
271,850

Deferred income taxes
30,636

 
28,840

Other assets
47,033

 
46,421

Total assets
$
1,855,764

 
$
1,799,952

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
147,342

 
$
147,452

Deferred revenue
3,719

 
3,724

Income taxes payable
30,444

 
8,279

Current portion of long-term debt and capital lease obligations
42,421

 
53,671

Total current liabilities
223,926

 
213,126

Deferred income taxes
5,194

 
5,322

Income taxes payable
22,395

 
21,157

Long-term debt and capital lease obligations, net of discount
584,302

 
592,135

Other liabilities
3,402

 
3,748

Total liabilities
839,219

 
835,488

Commitments and contingencies
 
 
 
Stockholders' equity:
 
 
 
Preferred stock
—

 
—

Common stock
12

 
12

Additional paid-in capital
413,423

 
407,808

Accumulated other comprehensive loss
(74,740
)
 
(68,793
)
Retained earnings
677,850

 
625,437

Total stockholders' equity
1,016,545

 
964,464

Total liabilities and stockholders' equity
$
1,855,764

 
$
1,799,952




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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000



Copart, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Three Months Ended October 31,
 
2015
 
2014
Cash flows from operating activities:
 
 
 
Net income
$
52,413

 
$
52,615

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
11,562

 
13,967

Allowance for doubtful accounts
1,032

 
113

Equity in losses of unconsolidated affiliates
158

 
—

Stock-based payment compensation
5,414

 
4,366

Excess tax benefits from stock-based payment compensation
(197
)
 
(361
)
Gain on sale of property and equipment
(60
)
 
(261
)
Deferred income taxes
(870
)
 
(1,295
)
Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable
(16,910
)
 
(9,004
)
Vehicle pooling costs and inventories
(2,252
)
 
272

Prepaid expenses and other current assets
(1,115
)
 
633

Other assets
(1,036
)
 
2,586

Accounts payable and accrued liabilities
77

 
(79
)
Deferred revenue
(5
)
 
(353
)
Income taxes receivable
5,333

 
2,236

Income taxes payable
23,483

 
18,434

Other liabilities
(433
)
 
(503
)
Net cash provided by operating activities
76,594

 
83,366

 
 
 
 
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(20,167
)
 
(23,388
)
Proceeds from sale of property and equipment
443

 
689

Purchases of marketable securities
(21,119
)
 
—

Net cash used in investing activities
(40,843
)
 
(22,699
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from the exercise of stock options
368

 
1,931

Excess tax benefit from stock-based payment compensation
197

 
361

Repurchases of common stock
—

 
(1,121
)
Principal payments on long-term debt
(18,750
)
 
(18,750
)
Net cash used in financing activities
(18,185
)
 
(17,579
)
Effect of foreign currency translation
(662
)
 
(3,272
)
Net increase in cash and cash equivalents
16,904

 
39,816

Cash and cash equivalents at beginning of period
456,012

 
158,668

Cash and cash equivalents at end of period
$
472,916

 
$
198,484

Supplemental disclosure of cash flow information:
 
 
 
Interest paid
$
5,723

 
$
1,910

Income taxes paid, net of refunds
$
1,292

 
$
10,030


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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000

COPART INC Reports