) reported earnings per share (EPS) of 32 cents for fiscal fourth
quarter 2013 ended Jul 31, 2013, down 8.6% from 35 cents in the
corresponding quarter last year. The EPS missed the Zacks
Consensus Estimate by 8 cents. Net income declined 8% to $41.3
million from $44.9 million in the year-ago quarter.
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LIQUIDITY SVCS (LQDT): Free Stock Analysis
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Copart's revenues went up 16.4% to $263.7 million in the quarter,
beating the Zacks Consensus Estimate of $262 million. Revenues
benefited from the acquisition of Salvage Parent, Inc., which
operates mainly as Quad City Salvage Auction (QCSA), Crashed
Toys, and Desert View Auto Auction. The acquisition closed on May
2013 and contributed $11.2 million to the revenues. Service
revenues augmented 13.9% to $213.6 million and revenues from
vehicles sale went up 28.2% to $50.1 million.
Gross margins increased 3.7% to $103.1 million (39.1% of sales)
from $99.4 million (or 43.9%) in the year-ago quarter. General
and administrative expenses went up 35.5% to $35.8 million from
$26.4 million in the year-ago quarter.
The increase in expense was partly due to the $13.7 million
operational, general and administrative and deal-specific costs
related to the QCSA acquisition. Meanwhile, the company expects
that this acquisition will have favorable impacts on the
operating margin from the third quarter of fiscal year 2014.
Operating income dropped 9.3% to $63.1 million from $69.5 million
recorded in the fourth quarter of fiscal 2012. Operating margin
was 23.9% compared with 30.7% in the year-ago quarter.
Copart reported earnings per share of $1.39 for fiscal 2013,
which was in line with last year, but missed the Zacks Consensus
Estimate of $1.50. Net income declined 1.2% to $180 million from
$182.1 million in the year-ago quarter. The company's revenues
went up 13.2% to $1 billion in fiscal 2013 from $924.2 million a
Copart had cash and cash equivalents of $63.6 million as of Jul
31, 2013 versus $140.1 million as of Jul 31, 2012. Total debt and
capital lease obligations amounted to $372.5 million as of Jul
31, 2013 compared with $444.1 million as of Jul 31, 2012.
During fiscal 2013, the company generated net cash flow of $199.3
million from operations compared with $229.7 million in the same
period a year ago. Capital spending was $208 million compared
with $48.1 million in fiscal 2012.
Copart is a prominent player in the online auctions and vehicle
remarketing services in the U.S., Canada, U.K. and U.A.E. along
Ritchie Bros. Auctioneers Incorporated
Liquidity Services, Inc.
). 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. Currently, shares of the company retain a Zacks Rank