Copart reports fourth quarter fiscal 2017 financial results
Dallas--(business wire)--copart, inc. (nasdaq:cprt) today reported financial results for the quarter and year ended july 31, 2017. for the three months ended july 31, 2017, revenue, gross margin, and net income were $378.6 million, $167.5 million, and $70.3 million, respectively. these represent an increase in revenue of $45.9 million, or 13.8%; an increase in gross margin of $26.0 million, or 18.4%; and a decrease in net income of $13.8 million, or 16.4%, respectively, from the same quarter last year. fully diluted earnings per share for the three months were $0.30 compared to $0.35 last year, a decrease of 14.3%. results for the three months ended july 31, 2017 include an impairment charge of $19.4 million related primarily to costs previously capitalized in connection with the development of business operating software. for the year ended july 31, 2017, revenue, gross margin, and net income were $1.4 billion, $632.0 million, and $394.2 million, respectively. these represent an increase in revenue of $179.5 million, or 14.2%; an increase in gross margin of $87.4 million, or 16.1%; and an increase in net income of $123.9 million, or 45.8%, respectively, from the same period last year. fully diluted earnings per share for the year ended july 31, 2017 were $1.66 compared to $1.11 last year, an increase of 49.5%. excluding the impact of foreign currency-related gains; impairment of long-lived assets; acquisition related fees; certain income tax benefits, foreign income tax credit limitations, and payroll taxes related to accounting for stock option exercises, non-gaap fully diluted earnings per share for the three months and year ended july 31, 2017, were $0.35 and $1.29, respectively. these represent increases of 16.7% and 22.9%, respectively, from the same periods last year. 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 wednesday, september 20, 2017, 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://stream.conferenceamerica.com/copart092017. a replay of the call will be available through november 19, 2017 by calling (877) 919-4059. use confirmation code # 87851080. about copart 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), the republic of ireland (copart.ie), brazil (copart.com.br), germany (copart.de), the united arab emirates, oman and bahrain (copartmea.com), india (copart.in), and spain (copart.es). for more information, or to become a member, visit copart.com/register. copart, inc. 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 foreign currency-related gains; impairment of long-lived assets; acquisition related fees; certain income tax benefits, foreign income tax credit limitations, and payroll taxes 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 foreign currency-related gains; impairment of long-lived assets; acquisition related fees; certain income tax benefits, foreign income tax credit limitations, and payroll taxes 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. (in thousands, except per share data) (unaudited) (in thousands) (unaudited) (in thousands) (unaudited) twelve months ended july 31, (in thousands, except per share data) (unaudited) (1) in march 2016, the fasb issued asu no. 2016-09, improvements to employee share-based payment accounting. under this standard, all excess tax benefits and tax deficiencies related to exercises of stock options are recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. additionally, excess tax benefits are classified as an operating activity on the consolidated statements of cash flows. the company adopted asu 2016-09 during the fourth quarter of fiscal 2016 on a modified retrospective basis. for a more complete discussion, please review the company's annual report on form 10-k, to be filed with the securities and exchange commission on or before september 29, 2017.
