Copart Reports Second Quarter Fiscal 2019 Financial Results
DALLAS--(BUSINESS WIRE)--Feb 20, 2019--Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2019.
For the three months ended January 31, 2019, revenue, gross profit, and net income were $484.9 million, $208.2 million, and $131.4 million, respectively. These represent an increase in revenue of $25.8 million, or 5.6%; an increase in gross profit of $16.6 million, or 8.7%; and an increase in net income of $28.1 million, or 27.2%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.55 compared to $0.43 last year, an increase of 27.9%.
For the six months ended January 31, 2019, revenue, gross profit, and net income were $946.3 million, $404.1 million, and $245.5 million, respectively. These represent an increase in revenue of $68.0 million, or 7.7%; an increase in gross profit of $49.3 million, or 13.9%; and an increase in net income of $64.7 million, or 35.8%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $1.01 compared to $0.75 last year, an increase of 34.7%.
The operating results for the three and six months ended January 31, 2018 were adversely affected by abnormal costs of $36.5 million and $72.3 million, respectively, incurred as a result of Hurricane Harvey. These costs included temporary storage facilities; premiums for subhaulers; labor costs incurred from overtime; travel and lodging due to the reassignment of employees to the affected region; and equipment lease expenses to handle the increased volume, as well as cost of vehicle sales. These costs, net of the associated revenues of $44.8 million and $63.4 million, respectively, generated pre-tax income for the three months ended January 31, 2018 of $8.3 million and a pre-tax loss for the six months ended January 31, 2018 of $8.9 million.
Excluding the impact of income taxes on the deemed repatriation of foreign earnings, net of deferred tax changes, disposals of non-operating assets, foreign currency-related gains and losses, and certain income tax benefits related to accounting for stock option exercises, non-GAAP fully diluted earnings per share for the three months ended January 31, 2019 and 2018, were $0.52 and $0.47, respectively. Non-GAAP fully diluted earnings per share for the six months ended January 31, 2019 and 2018, were $0.99 and $0.79, respectively. 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, February 21, 2019, 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 http://stream.conferenceamerica.com/copart022119. A replay of the call will be available through April 22, 2019 by calling (877) 919-4059. Use confirmation code # 33529287.
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 cases, to end users. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers and also sells vehicles sourced from individual owners. With operations at over 200 locations in 11 countries, Copart has more than 125,000 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 (avk.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 income taxes on the deemed repatriation of foreign earnings, net of deferred tax changes, disposals of non-operating assets, foreign currency-related gains and losses, and certain income tax benefits related to accounting for stock option exercises. 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 income taxes on the deemed repatriation of foreign earnings, net of deferred tax changes, disposals of non-operating assets, foreign currency-related gains and losses, and certain income tax benefits related to accounting for stock option exercises.
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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190220005907/en/
CONTACT: Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: TECHNOLOGY ONLINE RETAIL INTERNET SOFTWARE AUTOMOTIVE AFTERMARKET FLEET MANAGEMENT RETAIL GENERAL AUTOMOTIVE
SOURCE: Copart, Inc.
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PUB: 02/20/2019 06:00 PM/DISC: 02/20/2019 06:01 PM