Copart Reports Fourth Quarter Financial Results

FAIRFIELD, Calif.--Copart, Inc. today reported the results for its fourth quarter and fiscal year ended July 31, 2009.

For the three months ended July 31, 2009, revenue, operating income and income from continuing operations were $184.3 million, $55.4 million and $34.6 million, respectively. These represent decreases in revenue of $22.0 million, or 10.6%; in operating income of $10.0 million, or 15.3%; and in income from continuing operations of $6.2 million, or 15.2%, respectively, from the same quarter last year. Fully diluted earnings per share from continuing operations for the three months ended July 31, 2009 were $0.41 compared to $0.47 last year, a decrease of 12.8%.

For the twelve months ended July 31, 2009, revenue, operating income and income from continuing operations were $743.1 million, $225.3 million and $139.5 million, respectively. These represent decreases in revenue of $41.8 million, or 5.3%; in operating income of $12.6 million, or 5.3%; and in income from continuing operations of $17.4 million, or 11.1%, respectively, from the same period last year. Fully diluted earnings per share from continuing operations for the twelve months ended July 31, 2009 were $1.64 compared to $1.75 last year, a decrease of 6.3%.

The change in the average GBP to USD exchange rate, which averaged 1.60 USD to 1.00 GBP this quarter and 1.97 USD to 1.00 GBP in the same quarter last year and which averaged 1.59 USD to 1.0 GBP in fiscal 2009 and 2.00 USD to 1.00 GBP in fiscal 2008, reduced recorded revenue by approximately $8.9 million and $39.2 million for the quarter and for the fiscal year, respectively.

On Thursday, September 24, 2009, 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://webcast.premiereglobal.com/view/wl/r.htm?e=163123&s=1&k=2DF0EF55E61CC38F500D8528E00CCBD3. A replay of the call will be available through October 24, 2009 by calling (888) 203-1112. Use confirmation code #4228494.

About Copart

Copart, founded in 1982, provides vehicle sellers with a full range of services to process and sell salvage and clean titled vehicles to dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its proprietary VB² technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships, the general public and others. The company currently operates 147 facilities in the United States, Canada and the United Kingdom. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. For more information, or to become a registered buyer, visit www.copart.com.

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.

Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
		Three months ended July 31,						Twelve months ended July 31,
		2009			2008			2009			2008
Revenues and net sales:
Service revenues		$	151,340		$	164,096		$	615,352		$	619,728
Vehicle sales			32,992			42,186			127,730			165,120
Total revenues and net sales			184,332			206,282			743,082			784,848
Operating costs and expenses:
Yard operations		70,505			76,406			291,991			296,753
Yard depreciation and amortization		8,389			8,277			32,802			32,166
Cost of vehicle sales		25,509			34,506			106,029			133,670
Gross margin		79,929			87,093			312,260			322,259
General and administrative		22,379			18,829			77,890			73,734
General and administrative depreciation and amortization		2,162			2,892			9,045			10,608
Total operating expenses		128,944			140,910			517,757			546,931
Operating income		55,388			65,372			225,325			237,917
Other income (expense):
Interest income (expense), net		(51		)	959			1,418			7,552
Other income		997			1,691			989			4,181
Total other income		946			2,650			2,407			11,733
Income before income taxes		56,334			68,022			227,732			249,650
Income taxes		21,708			27,202			88,186			92,718
Income from continuing operations		$	34,626		$	40,820		$	139,546		$	156,932
Discontinued operations
Income from discontinued operations			—			—			1,557			—
Net income		$	34,626		$	40,820		$	141,103		$	156,932
Earnings per share-basic
Income from continuing operations		$	0.41		$	0.48		$	1.67		$	1.80
Income from discontinued operations		—			—			0.02			—
Basic net income per share		$	0.41		$	0.48		$	1.69		$	1.80
Weighted average common shares outstanding		83,794			85,188			83,537			87,412
Earnings per share-diluted
Income from continuing operations		$	0.41		$	0.47		$	1.64		$	1.75
Income from discontinued operations			—			—			0.02			—
Diluted net income per share		$	0.41		$	0.47		$	1.66		$	1.75
Weighted average common shares and dilutive potential common shares outstanding		84,214			87,368			84,769			89,858

Consolidated Balance Sheets
(in thousands)
(Unaudited)
		July 31, 2009				July 31, 2008
ASSETS
Current assets:
Cash and cash equivalents		$	162,691			$	38,954
Accounts receivable, net		109,248				111,705
Inventories and vehicle pooling costs		33,352				36,121
Income taxes receivable		5,426				19,041
Prepaid expenses and other assets		5,216				6,932
Total current assets		315,933				212,753
Property and equipment, net		530,886				510,340
Intangibles, net		15,212				21,901
Goodwill		166,327				177,164
Deferred income taxes		7,759				6,938
Land purchase options and other assets		21,915				27,151
Total assets		$	1,058,032			$	956,247
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	82,773			$	88,883
Book overdraft		—				17,502
Deferred revenue		13,165				14,518
Income taxes payable		5,269				4,005
Deferred income taxes		1,948				2,768
Other current liabilities		429				576
Total current liabilities		103,584				128,252
Deferred income taxes		10,997				14,044
Income taxes payable		20,266				12,219
Other liabilities		1,726				2,736
Total liabilities		136,573				157,251
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value - 180,000 shares authorized; 83,939 and 83,275 shares issued and outstanding at July 31, 2009 and July 31, 2008, respectively		334,440				316,673
Accumulated other comprehensive (loss) income		(27,082		)		833
Retained earnings		614,101				481,490
Total shareholders’ equity		921,459				798,996
Total liabilities and shareholders’ equity		$	1,058,032			$	956,247