SECURITIES AND EXCHANGE COMMISSION



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

 

September 25, 2012

 

Date of Report (date of earliest event reported)


Copart, Inc.

(Exact name of Registrant as specified in its charter)

Delaware

0-23255

94-2867490

(State or other jurisdiction of
incorporation or organization)

(Commission File Number)

(I.R.S. Employer
Identification Number)

 

14185 Dallas Parkway, Suite 300

Dallas, Texas 75254

 

(Address of principal executive offices)

 

(972) 391-5000

 

(Registrant’s telephone number, including area code)

 

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communication pursuant to Rule 425 under Section Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).




INFORMATION INCLUDED IN THIS REPORT


Section 2 — Financial Information


Item 2.02

Results of Operations and Financial Condition


The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing.


On September 25, 2012, Copart, Inc. issued a press release announcing its financial results for the fourth quarter and fiscal year ended July 31, 2012. The full text of the press release is furnished herewith as Exhibit 99.1.


Section 9 — Financial Statements and Exhibits


Item 9.01

Financial Statements and Exhibits

 

 

(d)

 

Exhibits

 

The following exhibit is furnished herewith:

 

Exhibit Number


Description

99.1

Press release, dated September 25, 2012 of Copart, Inc. announcing its financial results for the fourth quarter and fiscal year ended July 31, 2012.

 






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Dated: September 25, 2012

Copart, Inc.


By:  /s/ William E. Franklin                           

William E. Franklin

Senior Vice President of Finance and

Chief Financial Officer










INDEX TO EXHIBITS

Exhibit

Number

Description

99.1

Press release, dated September 25, 2012, of Copart, Inc. announcing its financial results for the fourth quarter and fiscal ended July 31, 2012.






Copart, Inc.


For Immediate Release


Copart Reports Fourth Quarter Financial Results


Dallas, TX (September 25, 2012) — Copart, Inc. (NASDAQ: CPRT) today reported the results for its fourth quarter and fiscal year ended July 31, 2012.

 

For the three months ended July 31, 2012, revenue, operating income and net income were $226.6 million, $69.5 million and $44.9 million, respectively. These represent increases in revenue of $11.1 million, or 5.2%; in operating income of $6.0 million, or 9.5%; and in net income of $4.4 million, or 10.8% from the same quarter last year. Fully diluted earnings per share for the three months were $0.35 compared to $0.29 last year, an increase of 20.7%.


For the twelve months ended July 31, 2012, revenue, operating income and net income were $924.2 million, $286.4 million and $182.1 million, respectively. These represent increases in revenue of $51.9 million, or 6.0%; in operating income of $21.1 million, or 7.9%; and in net income of $15.7 million, or 9.5% from the same period last year. Fully diluted earnings per share for the twelve months ended July 31, 2012 were $1.39 compared to $1.08 last year, an increase of 28.7%.


Included in the fourth quarter of the Company’s 2012 fiscal year is the repurchase of 2,800,000 shares of the Company’s common stock at a weighted average price of $23.22 per share under its share repurchase program. As of July 31, 2012, Copart had 48,213,218 shares available for repurchase under its share repurchase program.


On Wednesday, September 26, 2012, 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://w.on24.com/r.htm?e=514931&s=1&k=02F16B705658A913E110EA819CE52F22. A replay of the call will be available through October 26, 2012 by calling (888) 203-1112. Use confirmation code #7921487.


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 states, to end users. Copart remarkets the vehicles through Internet sales utilizing its patented VB2 technology.  Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others as well as cars sourced from the general public. The company currently operates 156 facilities in the United States, Canada, United Kingdom and the United Arab Emirates. 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 member, visit www.copart.com.






- 1 -

Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas, Texas 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:

Deana Lott, Assistant to the Chief Financial Officer
(972) 391-5094
deana.lott@copart.com










- 2 -

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





Copart, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)


        Three months ended
July 31,
    Twelve months ended
July 31,
   
        2012
    2011
    2012
    2011
Service revenues and vehicle sales:
                                                                       
Service revenues
            $ 187,464        $ 171,040        $ 757,272        $ 713,093   
Vehicle sales
                 39,092             44,403             166,919             159,153   
Total service revenues and vehicle
sales
            $ 226,556        $ 215,443        $ 924,191        $ 872,246   
Operating costs and expenses:
                                                                       
Yard operations
                 85,907             81,822             344,566             337,188   
Cost of vehicle sales
                 32,914             35,142             136,971             125,202   
Yard depreciation and amortization
                 8,309             8,892             33,038             36,961   
Gross margin
                 99,426             89,587             409,616             372,895   
General and administrative
                 26,404             23,737             99,376             98,864   
General and administrative depreciation
and amortization
                 3,528             2,394             15,116             8,741   
Impairment of long-lived assets
                                           8,771                
Total operating expenses
                 157,062             151,987             637,838             606,956   
Operating income
                 69,494             63,456             286,353             265,290   
Other (expense) income:
                                                                       
Interest (expense) income, net
                 (3,015 )            (1,693 )            (10,984 )            (3,585 )  
Other income, net
                 999              882              2,687             2,172   
Total other (expense)
                 (2,016 )            (811 )            (8,297 )            (1,413 )  
Income before income taxes
                 67,478             62,645             278,056             263,877   
Income taxes
                 22,582             22,124             95,937             97,502   
Net income
            $ 44,896        $ 40,521        $ 182,119        $ 166,375   
Earnings per share-basic
                                                                   
Basic net income per share
            $ 0.36        $ 0.30        $ 1.42        $ 1.10   
Weighted average common shares outstanding
                 126,112             135,230             128,120             151,298   
Earnings per share-diluted
                                                                   
Diluted net income per share
            $ 0.35        $ 0.29        $ 1.39        $ 1.08   
Diluted weighted average common shares outstanding
                 129,853             138,232             131,428             153,352   


- 3 -

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





Copart, Inc.

Consolidated Balance Sheets

(in thousands)

(Unaudited)


        July 31,
2012
    July 31,
2011
ASSETS
                                       
Current assets:
                                       
Cash and cash equivalents
            $ 140,112        $ 74,009   
Accounts receivable, net
                 138,966             122,859   
Inventories and vehicle pooling costs
                 24,222             25,042   
Income taxes receivable
                 2,312             5,145   
Deferred income taxes
                 3,600                
Prepaid expenses and other assets
                 9,155             14,813   
Assets held for sale
                 3,926                
Total current assets
                 322,293             241,868   
Property and equipment, net
                 587,163             600,388   
Intangibles, net
                 7,985             12,748   
Goodwill
                 196,438             198,620   
Deferred income taxes
                 22,280             9,425   
Other assets
                 18,907             21,387   
Total assets
            $ 1,155,066        $ 1,084,436   
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                       
Current liabilities:
                                       
Accounts payable and accrued liabilities
            $ 102,958             101,708   
Deferred revenue
                 5,390             5,636   
Income taxes payable
                 3,082             3,543   
Deferred income taxes
                              440    
Current portion of long-term debt and capital lease obligations
                 75,170             50,370   
Other current liabilities
                 785              4,929   
Total current liabilities
                 187,385             166,626   
Deferred income taxes
                 7,186             10,057   
Income taxes payable
                 22,531             24,773   
Long-term debt and capital lease obligations
                 368,950             325,386   
Other liabilities
                 7,897             2,422   
Total liabilities
                 593,949             529,264   
Commitments and contingencies
                                       
Stockholders’ equity:
                                       
Preferred stock, $0.0001 par value — 5,000,000 shares authorized; no shares issued and outstanding at July 31, 2012 and July 31, 2011 respectively
                                 
Common stock, $0.0001 par value — 180,000,000 shares authorized; 124,393,700 and 132,011,034 shares issued and outstanding at July 31, 2012 and July 31, 2011, respectively
                 12              13    
Additional paid-in capital
                 326,187             313,927   
Accumulated other comprehensive loss
                 (38,043 )            (23,225 )  
Retained earnings
                 272,961             264,457   
Total stockholders’ equity
                 561,117             555,172   
Total liabilities and stockholders’ equity
            $ 1,155,066        $ 1,084,436   




- 4 -

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





Copart, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

        Twelve Months Ended
July 31,
   
        2012
    2011
Cash flows from operating activities:
                                       
Net income
            $ 182,119        $ 166,375   
Adjustments to reconcile net income to net cash provided by operating activities:
                                     
Depreciation and amortization
                 48,167             45,694   
Allowance for doubtful accounts
                 (192 )            270    
Impairment
                 8,771                
Stock-based compensation
                 21,791             19,007   
Excess tax benefits from stock-based compensation
                 (4,367 )            (3,547 )  
(Gain)/loss on sale of property and equipment
                 (143 )            1,882   
Deferred income taxes
                 (17,579 )            (2,099 )  
Changes in operating assets and liabilities, net of effects from acquisitions:
                                     
Accounts receivable
                 (16,202 )            (12,865 )  
Vehicle pooling costs and inventories
                 924              10,535   
Prepaid expenses and other current assets
                 6,026             4,785   
Other assets
                 (1,951 )            739    
Accounts payable and accrued liabilities
                 (3,607 )            5,614   
Deferred revenue
                 (243 )            (5,015 )  
Income taxes receivable
                 7,082             9,456   
Income taxes payable
                 (2,545 )            2,529   
Other liabilities
                 1,622             (428 )  
Net cash provided by operating activities
                 229,673             242,932   
Cash flows from investing activities:
                                       
Purchases of property and equipment, including acquisitions
                 (57,396 )            (105,082 )  
Proceeds from sale of property and equipment
                 1,268             20,602   
Proceeds from sale of assets held for sale
                 8,041                
Net cash used in investing activities
                 (48,087 )            (84,480 )  
Cash flows from financing activities:
                                       
Proceeds from the exercise of stock options
                 13,651             7,082   
Proceeds from the issuance of Employee Stock Purchase Plan shares
                 1,957             1,957   
Repurchases of common stock
                 (203,285 )            (739,638 )  
Excess tax benefit from stock-based payment arrangements
                 4,367             3,547   
Proceeds from the issuance of long-term debt
                 125,000             400,000   
Principal payments on long-term debt
                 (56,250 )            (25,000 )  
Debt offering costs
                 (313 )            (2,023 )  
Net cash used in financing activities
                 (114,873 )            (354,075 )  
Effect of foreign currency translation
                 (610 )            1,444   
Net increase (decrease) in cash and cash equivalents
                 66,103             (194,179 )  
Cash and cash equivalents at beginning of period
                 74,009             268,188   
Cash and cash equivalents at end of period
            $ 140,112        $ 74,009   
Supplemental disclosure of cash flow information:
                                       
Interest paid
            $ 11,333        $ 3,894   
Income taxes paid
            $ 106,581        $ 85,145   



- 5 -

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