November 21, 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 November 21, 2016 of Copart, Inc. announcing its financial results for the first quarter of fiscal year 2017, which ended October 31, 2016. |
By: | /s/ Jeffrey Liaw | ||
Jeffrey Liaw | |||
Chief Financial Officer |
Exhibit Number | Description |
99.1 | Press release, dated November 21, 2016 of Copart, Inc. announcing its financial results for the first quarter of fiscal year 2017, which ended October 31, 2016. |
Contact: | Melissa Perry, Executive Support Manager, Office of the Chief Financial Officer |
972-391-5090 or melissa.perry@copart.com |
Three Months Ended October 31, | ||||||||
2016 | 2015 | |||||||
Service revenues and vehicle sales: | ||||||||
Service revenues | $ | 307,078 | $ | 250,967 | ||||
Vehicle sales | 38,913 | 37,871 | ||||||
Total service revenues and vehicle sales | 345,991 | 288,838 | ||||||
Operating expenses: | ||||||||
Yard operations | 157,362 | 126,878 | ||||||
Cost of vehicle sales | 33,087 | 32,068 | ||||||
Yard depreciation and amortization | 9,448 | 8,345 | ||||||
Yard stock-based payment compensation | 801 | 686 | ||||||
Gross margin | 145,293 | 120,861 | ||||||
General and administrative | 30,924 | 26,711 | ||||||
General and administrative depreciation and amortization | 5,261 | 3,176 | ||||||
General and administrative stock-based payment compensation | 4,284 | 4,728 | ||||||
Total operating expenses | 241,167 | 202,592 | ||||||
Operating income | 104,824 | 86,246 | ||||||
Other (expense) income: | ||||||||
Interest expense, net | (5,622 | ) | (5,513 | ) | ||||
Other income, net | 3,332 | 1,027 | ||||||
Total other expenses | (2,290 | ) | (4,486 | ) | ||||
Income before income taxes | 102,534 | 81,760 | ||||||
Income tax (benefit) expense | (64,746 | ) | 29,150 | |||||
Net income | $ | 167,280 | $ | 52,610 | ||||
Basic net income per common share | $ | 1.48 | $ | 0.44 | ||||
Weighted average common shares outstanding | 112,718 | 120,155 | ||||||
Diluted net income per common share | $ | 1.41 | $ | 0.41 | ||||
Diluted weighted average common shares outstanding | 118,879 | 127,144 |
October 31, 2016 | July 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 168,421 | $ | 155,849 | ||||
Accounts receivable, net | 294,358 | 266,270 | ||||||
Vehicle pooling costs and inventories | 40,202 | 38,987 | ||||||
Income taxes receivable | 110,923 | 18,751 | ||||||
Deferred income taxes | 711 | 1,444 | ||||||
Prepaid expenses and other assets | 16,096 | 18,005 | ||||||
Total current assets | 630,711 | 499,306 | ||||||
Property and equipment, net | 840,587 | 816,791 | ||||||
Intangibles, net | 10,241 | 11,761 | ||||||
Goodwill | 255,093 | 260,198 | ||||||
Deferred income taxes | 1,912 | 23,506 | ||||||
Other assets | 31,852 | 38,258 | ||||||
Total assets | $ | 1,770,396 | $ | 1,649,820 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 175,969 | $ | 192,379 | ||||
Deferred revenue | 3,975 | 4,628 | ||||||
Income taxes payable | 6,583 | 5,625 | ||||||
Current portion of long-term debt, revolving credit facility, and capital lease obligations | 171,151 | 76,151 | ||||||
Total current liabilities | 357,678 | 278,783 | ||||||
Deferred income taxes | 3,380 | 3,816 | ||||||
Income taxes payable | 26,867 | 25,641 | ||||||
Long-term debt and capital lease obligations, net of discount | 573,030 | 564,341 | ||||||
Other liabilities | 2,034 | 2,783 | ||||||
Total liabilities | 962,989 | 875,364 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 11 | 11 | ||||||
Additional paid-in capital | 416,125 | 392,445 | ||||||
Accumulated other comprehensive loss | (127,969 | ) | (109,194 | ) | ||||
Retained earnings | 519,240 | 491,194 | ||||||
Total stockholders' equity | 807,407 | 774,456 | ||||||
Total liabilities and stockholders' equity | $ | 1,770,396 | $ | 1,649,820 |
Three Months Ended October 31, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 167,280 | $ | 52,610 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization, including debt cost | 14,820 | 11,562 | ||||||
Allowance for doubtful accounts | 22 | 1,032 | ||||||
Equity in losses of unconsolidated affiliates | 349 | 158 | ||||||
Stock-based payment compensation | 5,085 | 5,414 | ||||||
Loss (gain) on sale of property and equipment | 38 | (60 | ) | |||||
Deferred income taxes | 22,088 | (870 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (29,472 | ) | (16,910 | ) | ||||
Vehicle pooling costs and inventories | (1,783 | ) | (2,252 | ) | ||||
Prepaid expenses and other current assets | 1,392 | (1,115 | ) | |||||
Other assets | (202 | ) | (1,036 | ) | ||||
Accounts payable and accrued liabilities | (14,828 | ) | 77 | |||||
Deferred revenue | (602 | ) | (5 | ) | ||||
Income taxes receivable | (92,172 | ) | 5,136 | |||||
Income taxes payable | 2,615 | 23,483 | ||||||
Other liabilities | (337 | ) | (433 | ) | ||||
Net cash provided by operating activities | 74,293 | 76,791 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (38,209 | ) | (20,167 | ) | ||||
Investment in unconsolidated affiliate | (1,050 | ) | — | |||||
Proceeds from sale of property and equipment | 190 | 443 | ||||||
Purchases of marketable securities | — | (21,119 | ) | |||||
Net cash used in investing activities | (39,069 | ) | (40,843 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from the exercise of stock options | 13,977 | 368 | ||||||
Payments for employee stock-based tax withholdings | (134,615 | ) | — | |||||
Proceeds from revolving loan facility, net of repayments | 103,900 | — | ||||||
Principal payments on long-term debt | — | (18,750 | ) | |||||
Net cash used in financing activities | (16,738 | ) | (18,382 | ) | ||||
Effect of foreign currency translation | (5,914 | ) | (662 | ) | ||||
Net increase in cash and cash equivalents | 12,572 | 16,904 | ||||||
Cash and cash equivalents at beginning of period | 155,849 | 456,012 | ||||||
Cash and cash equivalents at end of period | $ | 168,421 | $ | 472,916 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | 4,333 | $ | 5,723 | ||||
Income taxes paid, net of refunds | $ | 2,677 | $ | 1,292 |
Three Months Ended October 31, | ||||||||
2016 | 2015 | |||||||
GAAP net income | $ | 167,280 | $ | 52,610 | ||||
Effect of foreign currency-related gains, net of tax | (2,847 | ) | (560 | ) | ||||
Effect of income tax benefit of ASU 2016-09 adoption, net of tax (1) | (101,395 | ) | (197 | ) | ||||
Effect of payroll taxes on executive stock compensation, net of tax | 3,307 | 48 | ||||||
Non-GAAP net income | $ | 66,345 | $ | 51,901 | ||||
GAAP diluted net income per common share | $ | 1.41 | $ | 0.41 | ||||
Non-GAAP diluted net income per common share | $ | 0.57 | $ | 0.41 | ||||
GAAP diluted weighted average common shares outstanding | 118,879 | 127,144 | ||||||
Effect on common equivalent shares from ASU 2016-09 adoption(1) | (1,549 | ) | (1,572 | ) | ||||
Non-GAAP diluted weighted average commons shares outstanding | 117,330 | 125,572 |
(1) | In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. Under this standard, all excess tax benefits and tax deficiencies related to exercises of stock options are recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Additionally, excess tax benefits are classified as an operating activity on the consolidated statements of cash flows. The Company early adopted ASU 2016-09 during the fourth quarter of fiscal 2016 on a modified retrospective basis. For a more complete discussion, please review the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2016. |