) reported earnings per share of 38 cents in the second quarter
of fiscal 2013 ended Jan 31, 2013, up 22.6% from 31 cents in the
corresponding quarter last year. The quarterly EPS surpassed the
Zacks Consensus Estimate by a penny. In absolute terms, adjusted
profits improved 31.4% to $53.34 million from $40.6 million in
the year-ago quarter.
Profits in the reported quarter were affected by additional costs
of $11.9 million or 6 cents per share associated with hurricane
Sandy. Implementation of ERP system also resulted in incremental
costs of $1.8 million or 1 cent during the quarter.
The company's revenues went up 16.8% to $266.2 million in the
quarter, beating the Zacks Consensus Estimate of $246.0 million.
Service revenues augmented 16.1% to $216.9 million and revenues
from vehicles sale went up 20% to $49.3 million.
Gross profits decreased 2.9% to $96.8 million (36.4% of sales)
from $99.7 million (or 43.7%) in the year-ago quarter due to
higher operating costs and expenses. Consequently, operating
income dropped 1.2% to $62.8 million from $63.5 million recorded
in the second quarter of fiscal 2012. Operating margin was 23.6%
compared with 27.9% in the year-ago quarter.
Copart had cash and cash equivalents of $49.5 million as of Jan
31, 2013 versus $140.1 million as of Jul 31, 2012. Total debt and
capital lease obligations amounted to $408.2 million as of Jan
31, 2013 compared with $444.1 million as of Jul 31, 2012.
During the first six months of fiscal 2013, the company generated
net cash flow of $53.1 million from operations compared with
$90.3 million in the same period a year ago. Capital spending was
$108.7 million compared with $14.3 million in the first half of
Copart is a provider of online auctions and vehicle remarketing
services in the U.S., Canada, U.K. and U.A.E. and operates 162
facilities. The company provides a wide range of remarketing
services to vehicle suppliers, primarily insurance companies, to
process and sell salvage vehicles mainly over the Internet
through the company's Virtual Bidding Internet auction-style
sales technology. The company currently retains a Zacks Rank #3
A few stocks that are also performing well in the industry where
Copart operates are
Asbury Automotive Group, Inc.
). They carry a Zacks Rank #2 (Buy).
ASBURY AUTO GRP (ABG): Free Stock Analysis
SOTHEBYS (BID): Free Stock Analysis Report
COPART INC (CPRT): Free Stock Analysis Report
CARMAX GP (CC) (KMX): Free Stock Analysis
To read this article on Zacks.com click here.