Copart, Inc. (NASDAQ: CPRT) today reported financial results for
the quarter ended October 31, 2020.
For the three months ended October 31, 2020, revenue, gross
profit, and net income were $592.9 million, $296.8 million, and
$200.3 million, respectively. These represent an increase in
revenue of $38.5 million, or 6.9%; an increase in gross profit of
$41.9 million, or 16.4%; and a decrease in net income of $17.9
million, or 8.2%, respectively, from the same period last year.
Fully diluted earnings per share for the three months were $0.83
compared to $0.91 last year, a decrease of 8.8%.
Excluding the impact of discrete income tax items, foreign
currency-related gains, certain income tax benefits and payroll
taxes related to accounting for stock option exercises, and the
effect on common equivalent shares from ASU 2016-09, non-GAAP fully
diluted earnings per share for the three months ended October 31,
2020 and 2019, were $0.79 and $0.65, respectively, an increase of
21.5%. A reconciliation of non-GAAP financial measures to the most
directly comparable financial measures computed in accordance with
U.S. generally accepted accounting principles (GAAP) can be found
in the tables attached to this press release.
On Thursday, November 19, 2020, 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 and can be accessed at
https://78449.themediaframe.com/dataconf/productusers/copart/mediaframe/41926/indexl.html
or via hyperlink at www.copart.com/investorrelation. A replay of
the call will be available through January 21, 2021 by calling
(877) 660-6853. Use confirmation code: 13713059.
About Copart
Copart, Inc., founded in 1982, is a global leader in online
vehicle auctions. Copart’s innovative technology and online auction
platform links sellers to more than 750,000 Members in over 170
countries. Copart offers services to process and sell salvage and
clean title vehicles to dealers, dismantlers, rebuilders,
exporters, and in some jurisdictions, to the general public. Copart
sells vehicles on behalf of insurance companies, banks, finance
companies, charities, fleet operators, dealers and individuals.
With operations at over 200 locations in 11 countries, Copart has
more than 150,000 vehicles available online every day. Copart
currently operates in the United States (Copart.com), Canada
(Copart.ca), the United Kingdom (Copart.co.uk), Brazil
(Copart.com.br), the Republic of Ireland (Copart.ie), Germany
(Copart.de), Finland (Copart.fi), the United Arab Emirates, Oman
and Bahrain (Copartmea.com), and Spain (Copart.es). For more
information, or to become a Member, visit Copart.com/Register.
Use of Non-GAAP Financial Measures
Included in this release are certain non-GAAP financial
measures, including non-GAAP net income per diluted share, which
exclude the impact of discrete income tax items, foreign
currency-related gains, certain income tax benefits and payroll
taxes related to accounting for stock option exercises, and the
effect on common equivalent shares from ASU 2016-09. These non-GAAP
financial measures do not represent alternative financial measures
under GAAP. In addition, these non-GAAP financial measures may be
different from non-GAAP financial measures used by other companies.
Furthermore, these non-GAAP financial measures do not reflect a
comprehensive view of Copart’s operations in accordance with GAAP
and should only be read in conjunction with the corresponding GAAP
financial measures. This information constitutes non-GAAP financial
measures within the meaning of Regulation G adopted by the U.S.
Securities and Exchange Commission. Accordingly, Copart has
presented herein, and will present in other information it
publishes that contains these non-GAAP financial measures, a
reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measures.
Copart believes the presentation of non-GAAP net income per
diluted share included in this release in conjunction with the
corresponding GAAP financial measures provides meaningful
information for investors, analysts and management in assessing
Copart’s business trends and financial performance. From a
financial planning and analysis perspective, Copart management
analyzes its operating results with and without the impact of
discrete income tax items, foreign currency-related gains, certain
income tax benefits and payroll taxes related to accounting for
stock option exercises, and the effect on common equivalent shares
from ASU 2016-09.
Cautionary Note About Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of federal securities laws, including statements
concerning the potential impact of the COVID-19 pandemic on our
business, operations, and operating results. 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.
Copart, Inc.
Consolidated Statements of
Income
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended October
31,
2020
2019
Service revenues and vehicle sales:
Service revenues
$
515,372
$
487,856
Vehicle sales
77,568
66,568
Total service revenues and vehicle
sales
592,940
554,424
Operating expenses:
Yard operations
206,986
222,879
Cost of vehicle sales
64,360
58,764
Yard depreciation and amortization
23,294
16,820
Yard stock-based compensation
1,531
1,092
Gross profit
296,769
254,869
General and administrative
35,138
38,843
General and administrative depreciation
and amortization
5,655
6,194
General and administrative stock-based
compensation
7,382
4,441
Total operating expenses
344,346
349,033
Operating income
248,594
205,391
Other expense:
Interest expense, net
(5,032
)
(4,026
)
Other income, net
3,253
717
Total other expense
(1,779
)
(3,309
)
Income before income taxes
246,815
202,082
Income tax expense (benefit)
46,530
(16,098
)
Net income
$
200,285
$
218,180
Basic net income per common share
$
0.85
$
0.94
Weighted average common shares
outstanding
235,791
231,169
Diluted net income per common share
$
0.83
$
0.91
Diluted weighted average common shares
outstanding
239,968
238,662
Copart, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
October 31, 2020
July 31, 2020
ASSETS
Current assets:
Cash, cash equivalents, and restricted
cash
$
605,732
$
477,718
Accounts receivable, net
407,897
350,207
Vehicle pooling costs
84,128
73,684
Inventories
28,244
20,080
Income taxes receivable
915
26,740
Prepaid expenses and other assets
11,260
15,330
Total current assets
1,138,176
963,759
Property and equipment, net
2,072,059
1,941,719
Operating lease right-of-use assets
112,275
118,455
Intangibles, net
45,864
47,772
Goodwill
342,576
343,622
Deferred income taxes
212
213
Other assets
30,026
39,721
Total assets
$
3,741,188
$
3,455,261
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
$
359,816
$
318,530
Deferred revenue
9,476
8,233
Income taxes payable
12,640
3,709
Current portion of operating lease
liabilities
24,011
24,821
Current portion of finance lease
liabilities
1,593
751
Total current liabilities
407,536
356,044
Deferred income taxes
77,826
71,686
Income taxes payable
44,347
44,965
Operating lease liabilities, net of
current portion
88,490
95,584
Long-term debt and finance lease
liabilities, net of discount
411,845
397,036
Other liabilities
311
430
Total liabilities
1,030,355
965,745
Commitments and contingencies
Stockholders' equity:
Preferred stock
—
—
Common stock
24
24
Additional paid-in capital
701,654
672,727
Accumulated other comprehensive loss
(128,494
)
(121,088
)
Retained earnings
2,137,649
1,937,853
Total stockholders' equity
2,710,833
2,489,516
Total liabilities and stockholders'
equity
$
3,741,188
$
3,455,261
Copart, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Three Months Ended October
31,
2020
2019
Cash flows from operating
activities:
Net income
$
200,285
$
218,180
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization, including
debt cost
29,227
23,704
Allowance for credit loss
(157
)
382
Equity in (earnings) losses of
unconsolidated affiliates
(1,741
)
855
Stock-based compensation
8,913
5,533
Gain on sale of property and equipment
(1,230
)
(272
)
Deferred income taxes
6,239
4,839
Changes in operating assets and
liabilities:
Accounts receivable
(57,860
)
(25,408
)
Vehicle pooling costs
(10,600
)
(9,358
)
Inventories
(8,259
)
1,710
Prepaid expenses and other current and
non-current assets
15,236
4,079
Operating lease right-of-use assets and
lease liabilities
153
256
Accounts payable and accrued
liabilities
42,880
16,587
Deferred revenue
1,251
(1,437
)
Income taxes receivable
25,825
(28,740
)
Income taxes payable
8,371
1,700
Other liabilities
—
(152
)
Net cash provided by operating
activities
258,533
212,458
Cash flows from investing
activities:
Purchases of property and equipment,
including acquisitions
(147,093
)
(131,793
)
Proceeds from sale of property and
equipment
271
283
Net cash used in investing activities
(146,822
)
(131,510
)
Cash flows from financing
activities:
Proceeds from the exercise of stock
options
20,014
12,620
Payments for employee stock-based tax
withholdings
(489
)
(101,354
)
Payments of finance lease obligations
(327
)
—
Net cash provided by (used in) financing
activities
19,198
(88,734
)
Effect of foreign currency translation
(2,895
)
2,569
Net increase (decrease) in cash, cash
equivalents, and restricted cash
128,014
(5,217
)
Cash, cash equivalents, and restricted
cash at beginning of period
477,718
186,319
Cash, cash equivalents, and restricted
cash at end of period
$
605,732
$
181,102
Supplemental disclosure of cash flow
information:
Interest paid
$
4,762
$
4,506
Income taxes paid, net of refunds
$
6,157
$
7,465
Copart, Inc.
Additional Financial
Information
Reconciliation of GAAP to
Non-GAAP Financial Measures
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended October
31,
2020
2019
GAAP net income
$
200,285
$
218,180
Effect of discrete income tax items
—
(3,008
)
Effect of foreign currency-related gains,
net of tax
(190
)
(263
)
Effect of recognizing tax benefit on
exercise of employee stock options
(11,773
)
(62,365
)
Effect of payroll taxes on certain
executive stock compensation, net of tax
—
2,867
Non-GAAP net income
$
188,322
$
155,411
GAAP net income per diluted common
share
$
0.83
$
0.91
Non-GAAP net income per diluted common
share
$
0.79
$
0.65
GAAP diluted weighted average common
shares outstanding
239,968
238,662
Effect on common equivalent shares from
ASU 2016-09
(709
)
(1,306
)
Non-GAAP diluted weighted average common
shares outstanding
239,259
237,356
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201118006105/en/
Melissa Hunter, Executive Support Manager, Office of the Chief
Financial Officer 972-391-5090 or melissa.hunter@copart.com
Copart (NASDAQ:CPRT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Copart (NASDAQ:CPRT)
Historical Stock Chart
From Sep 2023 to Sep 2024