COPART INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - February 23, 2016

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Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports Second Quarter Fiscal 2016 Financial Results
Dallas, Texas. (February 23, 2016) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2016.
For the three months ended January 31, 2016, revenue, gross margin and net income were $299.7 million, $124.6 million, and $59.0 million, respectively. These represent an increase in revenue of $23.4 million, or 8.5%; an increase in gross margin of $9.7 million, or 8.5%; and an increase in net income of $6.8 million, or 13.0%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.48 compared to $0.40 last year, an increase of 20.0%.
For the six months ended January 31, 2016, revenue, gross margin and net income were $588.5 million, $245.5 million and $111.4 million, respectively. These represent an increase in revenue of $21.9 million, or 3.9%; an increase in gross margin of $8.3 million, or 3.5%; and an increase in net income of $6.6 million, or 6.3%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $0.90 compared to $0.80 last year, an increase of 12.5%.
On Wednesday, February 24, 2016, 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/copart022416. A replay of the call will be available through April 24, 2016 by calling (877) 919-4059. Use confirmation code # 92806653.
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, financial institutions, charities, car dealerships, fleet operators, vehicle rental companies, 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 
 January 31,
 
Six Months Ended 
 January 31,
 
2016
 
2015
 
2016
 
2015
Service revenues and vehicle sales:
 
 
 
 
 
 
 
Service revenues
$
260,417

 
$
238,508

 
$
511,384

 
$
485,128

Vehicle sales
39,289

 
37,750

 
77,160

 
81,516

Total service revenues and vehicle sales
299,706

 
276,258

 
588,544

 
566,644

Operating expenses:
 
 
 
 
   
 
 
Yard operations
132,041

 
120,181

 
258,919

 
241,780

Cost of vehicle sales
34,127

 
32,118

 
66,195

 
69,191

Yard depreciation and amortization
8,248

 
8,543

 
16,593

 
17,403

Yard stock-based payment compensation
676

 
549

 
1,362

 
1,095

Gross margin
124,614

 
114,867

 
245,475

 
237,175

General and administrative
24,376

 
27,587

 
51,087

 
60,804

General and administrative depreciation and amortization
3,443

 
2,857

 
6,619

 
5,727

General and administrative stock-based payment compensation
4,710

 
3,955

 
9,438

 
7,775

Total operating expenses
207,621

 
195,790

 
410,213

 
403,775

Operating income
92,085

 
80,468

 
178,331

 
162,869

Other (expense) income:
 
 
 
 
   
 
 
Interest expense, net
(4,968
)
 
(4,505
)
 
(10,481
)
 
(6,276
)
Other income, net
4,435

 
4,141

 
5,462

 
5,734

Total other expenses
(533
)
 
(364
)
 
(5,019
)
 
(542
)
Income before income taxes
91,552

 
80,104

 
173,312

 
162,327

Income taxes
32,589

 
27,911

 
61,936

 
57,519

Net income
$
58,963

 
$
52,193

 
$
111,376

 
$
104,808

 
 
 
 
 
 
 
 
Basic net income per common share
$
0.50

 
$
0.41

 
$
0.94

 
$
0.83

Weighted average common shares outstanding
117,306

 
126,300

 
118,731

 
126,258

 
 
 
 
 
 
 
 
Diluted net income per common share
$
0.48

 
$
0.40

 
$
0.90

 
$
0.80

Diluted weighted average common shares outstanding
122,908

 
131,872

 
124,240

 
131,694



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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)
 
January 31, 2016
 
July 31, 2015
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
141,416

 
$
456,012

Accounts receivable, net
281,227

 
215,696

Vehicle pooling costs and inventories
39,152

 
33,562

Income taxes receivable
7,734

 
6,092

Deferred income taxes
685

 
3,396

Prepaid expenses and other assets
36,644

 
19,824

Total current assets
506,858

 
734,582

Property and equipment, net
744,224

 
700,402

Intangibles, net
14,408

 
17,857

Goodwill
264,128

 
271,850

Deferred income taxes
31,432

 
28,840

Other assets
43,314

 
46,421

Total assets
$
1,604,364

 
$
1,799,952

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
147,839

 
$
147,452

Deferred revenue
5,478

 
3,724

Income taxes payable
12,629

 
8,279

Current portion of long-term debt, revolving credit facility, and capital lease obligations
99,171

 
53,671

Total current liabilities
265,117

 
213,126

Deferred income taxes
4,868

 
5,322

Income taxes payable
23,696

 
21,157

Long-term debt and capital lease obligations, net of discount
576,501

 
592,135

Other liabilities
2,782

 
3,748

Total liabilities
872,964

 
835,488

Commitments and contingencies
 
 
 
Stockholders' equity:
 
 
 
Preferred stock
—

 
—

Common stock
11

 
12

Additional paid-in capital
394,002

 
407,808

Accumulated other comprehensive loss
(103,071
)
 
(68,793
)
Retained earnings
440,458

 
625,437

Total stockholders' equity
731,400

 
964,464

Total liabilities and stockholders' equity
$
1,604,364

 
$
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)
 
Six Months Ended January 31,
 
2016
 
2015
Cash flows from operating activities:
 
 
 
Net income
$
111,376

 
$
104,808

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
23,294

 
25,367

Allowance for doubtful accounts
1,270

 
(242
)
Equity in losses of unconsolidated affiliates
483

 
—

Stock-based payment compensation
10,800

 
8,870

Excess tax benefits from stock-based payment compensation
(241
)
 
(534
)
Gain on sale of property and equipment
(106
)
 
(457
)
Deferred income taxes
(106
)
 
(2,317
)
Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable
(68,683
)
 
(40,908
)
Vehicle pooling costs and inventories
(6,449
)
 
(3,351
)
Prepaid expenses and other current assets
(216
)
 
1,747

Other assets
448

 
5,368

Accounts payable and accrued liabilities
3,702

 
(4,173
)
Deferred revenue
1,810

 
351

Income taxes receivable
(1,410
)
 
(4,938
)
Income taxes payable
7,897

 
103

Other liabilities
(789
)
 
(811
)
Net cash provided by operating activities
83,080

 
88,883

 
 
 
 
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(77,763
)
 
(39,459
)
Proceeds from sale of property and equipment
396

 
742

Purchases of marketable securities
(21,119
)
 
—

Net cash used in investing activities
(98,486
)
 
(38,717
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from the exercise of stock options
944

 
2,303

Excess tax benefit from stock-based payment compensation
241

 
534

Proceeds from the issuance of Employee Stock Purchase Plan shares
1,640

 
1,495

Repurchases of common stock
(325,000
)
 
(1,121
)
Proceeds from the issuance of long-term debt, net of discount
—

 
698,939

Proceeds from revolving loan facility, net of repayments
68,000

 
—

Debt offering costs
—

 
(955
)
Principal payments on long-term debt
(37,500
)
 
(312,500
)
Net cash (used in) provided by financing activities
(291,675
)
 
388,695

Effect of foreign currency translation
(7,515
)
 
(7,163
)
Net (decrease) increase in cash and cash equivalents
(314,596
)
 
431,698

Cash and cash equivalents at beginning of period
456,012

 
158,668

Cash and cash equivalents at end of period
$
141,416

 
$
590,366

Supplemental disclosure of cash flow information:
 
 
 
Interest paid
$
11,294

 
$
3,788

Income taxes paid, net of refunds
$
55,413

 
$
64,432


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

COPART INC Reports