) posted a robust 54% increase in profits to 71 cents per share
(excluding impairment charges) in the second quarter of its fiscal
year ended January 31, 2012 from 46 cents per share in the same
quarter of the prior fiscal year.
The company's profits exceeded the Zacks Consensus Estimate by
12 cents per share. In absolute terms, profits went up 30% to $49.4
million (excluding impairment charges) from $37.9 million in the
second quarter of fiscal 2011.
Revenues in the quarter grew 10% to $227.9 million, which is
higher than the Zacks Consensus Estimate of $219 million. Service
revenues scaled up 9% to $189.7 million while Vehicle revenues
escalated 14% to $38.2 million.
Operating profit rose 6% to $63.5 million, reflecting an
operating margin of 28% during the quarter.
Under the existing share repurchase program, Copart repurchased
1.97 million shares of its common stock at a weighted average price
of $46.34 during the quarter. Since the beginning of fiscal 2011,
the company has repurchased 21.89 shares of its common stock for
$39.75 per share. At the end of the quarter, the company had 25.51
shares available for repurchase under the repurchase program.
Copart had cash and cash equivalents of $127.6 million as of
January 31, 2012, up from $74.0 million as of July 31, 2011.
Long-term debt and capital lease obligations amounted to $481.7
million as of January 31, 2012, up from $375.8 million as of July
31, 2011. Consequently, the debt-to-capitalization ratio increased
to 48.7% as of January 31, 2012 from 40.4% as of July 31, 2011.
In the six months ended January 31, 2012, the company's net cash
flow was $90.3 million from operating activities, down from $93.3
million in the prior-year period. The decline in cash flow was
attributable to lower accounts payable and accrued liabilities and
lower deferred income taxes compared with the prior-year period.
Capital expenditures (net) fell significantly to $14.3 million from
$22.1 million in the first half of fiscal 2011.
Copart, a Zacks #2 Rank (Buy) stock, is headquartered in
Fairfield, California. The company provides online auctions and
vehicle remarketing services in the U.S., Canada and the U.K. It
offers a range of services for processing and selling vehicles over
the Internet through its Virtual Bidding Second Generation Internet
auction-style sales technology, to vehicle sellers, primarily
insurance companies, banks and financial institutions, charities,
car dealerships, fleet operators, and vehicle rental companies.
COPART INC (
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