May 25, 2016 |
Date of Report (date of earliest event reported) |
COPART, INC. |
(Exact name of Registrant as specified in its charter) |
Delaware | 000-23255 | 94-2867490 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer |
of incorporation) | Identification No.) |
14185 Dallas Parkway, Suite 300 |
Dallas, Texas 75254 |
(Address of principal executive offices, including zip code) |
(972) 391-5000 |
(Registrant’s telephone number, including area code) |
Not applicable |
(Former name or former address, if changed since last report) |
Exhibit Number | Description |
99.1 | Press release, dated May 25, 2016 of Copart, Inc. announcing its financial results for the third quarter of fiscal year 2016, which ended April 30, 2016. |
By: | /s/ Jeffrey Liaw | ||
Jeffrey Liaw | |||
Chief Financial Officer |
Exhibit Number | Description |
99.1 | Press release, dated May 25, 2016 of Copart, Inc. announcing its financial results for the third quarter of fiscal year 2016, which ended April 30, 2016. |
Contact: | Christopher M. Smith, Senior Analyst, Office of the Chief Financial Officer |
972-391-5021 or christopher.smith3@copart.com |
Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service revenues and vehicle sales: | |||||||||||||||
Service revenues | $ | 303,507 | $ | 256,564 | $ | 814,891 | $ | 741,692 | |||||||
Vehicle sales | 43,739 | 40,578 | 120,899 | 122,094 | |||||||||||
Total service revenues and vehicle sales | 347,246 | 297,142 | 935,790 | 863,786 | |||||||||||
Operating expenses: | |||||||||||||||
Yard operations | 142,802 | 125,348 | 401,721 | 367,124 | |||||||||||
Cost of vehicle sales | 37,744 | 34,503 | 103,939 | 103,694 | |||||||||||
Yard depreciation and amortization | 8,339 | 9,248 | 24,932 | 26,655 | |||||||||||
Yard stock-based payment compensation | 714 | 626 | 2,076 | 1,721 | |||||||||||
Gross margin | 157,647 | 127,417 | 403,122 | 364,592 | |||||||||||
General and administrative | 27,360 | 25,940 | 78,447 | 86,741 | |||||||||||
General and administrative depreciation and amortization | 4,019 | 2,916 | 10,638 | 8,646 | |||||||||||
General and administrative stock-based payment compensation | 4,320 | 3,794 | 13,758 | 11,569 | |||||||||||
Total operating expenses | 225,298 | 202,375 | 635,511 | 606,150 | |||||||||||
Operating income | 121,948 | 94,767 | 300,279 | 257,636 | |||||||||||
Other (expense) income: | |||||||||||||||
Interest expense, net | (5,419 | ) | (5,656 | ) | (15,900 | ) | (11,932 | ) | |||||||
Other income, net | 39 | (815 | ) | 5,501 | 4,919 | ||||||||||
Total other expenses | (5,380 | ) | (6,471 | ) | (10,399 | ) | (7,013 | ) | |||||||
Income before income taxes | 116,568 | 88,296 | 289,880 | 250,623 | |||||||||||
Income taxes | 42,552 | 30,733 | 104,488 | 88,252 | |||||||||||
Net income | $ | 74,016 | $ | 57,563 | $ | 185,392 | $ | 162,371 | |||||||
Basic net income per common share | $ | 0.67 | $ | 0.46 | $ | 1.58 | $ | 1.29 | |||||||
Weighted average common shares outstanding | 110,543 | 126,415 | 117,071 | 126,309 | |||||||||||
Diluted net income per common share | $ | 0.64 | $ | 0.44 | $ | 1.51 | $ | 1.23 | |||||||
Diluted weighted average common shares outstanding | 116,388 | 132,124 | 122,692 | 131,837 |
April 30, 2016 | July 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 137,653 | $ | 456,012 | |||
Accounts receivable, net | 263,292 | 215,696 | |||||
Vehicle pooling costs and inventories | 41,210 | 33,562 | |||||
Income taxes receivable | 2,772 | 6,092 | |||||
Deferred income taxes | 668 | 3,396 | |||||
Prepaid expenses and other assets | 18,910 | 19,824 | |||||
Total current assets | 464,505 | 734,582 | |||||
Property and equipment, net | 806,973 | 700,402 | |||||
Intangibles, net | 13,390 | 17,857 | |||||
Goodwill | 267,367 | 271,850 | |||||
Deferred income taxes | 31,245 | 28,840 | |||||
Other assets | 40,655 | 46,421 | |||||
Total assets | $ | 1,624,135 | $ | 1,799,952 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 150,298 | $ | 147,452 | |||
Deferred revenue | 5,745 | 3,724 | |||||
Income taxes payable | 17,169 | 8,279 | |||||
Current portion of long-term debt, revolving credit facility, and capital lease obligations | 30,369 | 53,671 | |||||
Total current liabilities | 203,581 | 213,126 | |||||
Deferred income taxes | 5,001 | 5,322 | |||||
Income taxes payable | 25,675 | 21,157 | |||||
Long-term debt and capital lease obligations, net of discount | 670,507 | 592,135 | |||||
Other liabilities | 2,844 | 3,748 | |||||
Total liabilities | 907,608 | 835,488 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 11 | 12 | |||||
Additional paid-in capital | 393,351 | 407,808 | |||||
Accumulated other comprehensive loss | (83,791 | ) | (68,793 | ) | |||
Retained earnings | 406,956 | 625,437 | |||||
Total stockholders' equity | 716,527 | 964,464 | |||||
Total liabilities and stockholders' equity | $ | 1,624,135 | $ | 1,799,952 |
Nine Months Ended April 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 185,392 | $ | 162,371 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 35,900 | 37,579 | |||||
Allowance for doubtful accounts | 1,227 | (453 | ) | ||||
Equity in losses of unconsolidated affiliates | 768 | — | |||||
Stock-based payment compensation | 15,834 | 13,290 | |||||
Excess tax benefits from stock-based payment compensation | (848 | ) | (1,279 | ) | |||
Gain on sale of property and equipment | (188 | ) | (735 | ) | |||
Deferred income taxes | (325 | ) | 3,641 | ||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable | (49,594 | ) | (21,763 | ) | |||
Vehicle pooling costs and inventories | (8,121 | ) | (1,874 | ) | |||
Prepaid expenses and other current assets | 293 | 1,480 | |||||
Other assets | 3,206 | 7,584 | |||||
Accounts payable and accrued liabilities | 5,024 | 2,042 | |||||
Deferred revenue | 2,038 | 445 | |||||
Income taxes receivable | 4,172 | 985 | |||||
Income taxes payable | 13,858 | 1,313 | |||||
Other liabilities | (1,138 | ) | (1,257 | ) | |||
Net cash provided by operating activities | 207,498 | 203,369 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (143,833 | ) | (49,079 | ) | |||
Proceeds from sale of property and equipment | 485 | 1,087 | |||||
Purchases of marketable securities | (21,119 | ) | — | ||||
Proceeds from sale of marketable securities | 21,498 | — | |||||
Net cash used in investing activities | (142,969 | ) | (47,992 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from the exercise of stock options | 4,989 | 3,372 | |||||
Excess tax benefit from stock-based payment compensation | 848 | 1,279 | |||||
Proceeds from the issuance of Employee Stock Purchase Plan shares | 1,640 | 1,495 | |||||
Repurchases of common stock | (442,855 | ) | (1,737 | ) | |||
Proceeds from the issuance of long-term debt, net of discount | 93,468 | 698,939 | |||||
Debt offering costs | (165 | ) | (955 | ) | |||
Principal payments on long-term debt | (37,500 | ) | (331,250 | ) | |||
Net cash (used in) provided by financing activities | (379,575 | ) | 371,143 | ||||
Effect of foreign currency translation | (3,313 | ) | (6,446 | ) | |||
Net (decrease) increase in cash and cash equivalents | (318,359 | ) | 520,074 | ||||
Cash and cash equivalents at beginning of period | 456,012 | 158,668 | |||||
Cash and cash equivalents at end of period | $ | 137,653 | $ | 678,742 | |||
Supplemental disclosure of cash flow information: | |||||||
Interest paid | $ | 16,996 | $ | 9,705 | |||
Income taxes paid, net of refunds | $ | 86,243 | $ | 81,995 |