Copart reports second quarter fiscal 2017 financial results
Dallas--(business wire)--copart, inc. (nasdaq: cprt) today reported financial results for the quarter ended january 31, 2017. for the three months ended january 31, 2017, revenue, gross margin, and net income were $349.5 million, $146.8 million, and $66.1 million, respectively. these represent an increase in revenue of $49.8 million, or 16.6%; an increase in gross margin of $22.2 million, or 17.8%; and an increase in net income of $7.1 million, or 12.0%, respectively, from the same quarter last year. fully diluted earnings per share for the three months were $0.56 compared to $0.47 last year, an increase of 19.1%. for the six months ended january 31, 2017, revenue, gross margin, and net income were $695.5 million, $292.1 million, and $233.3 million, respectively. these represent an increase in revenue of $107.0 million, or 18.2%; an increase in gross margin of $46.6 million, or 19.0%; and an increase in net income of $121.7 million, or 109.1%, respectively, from the same period last year. fully diluted earnings per share for the six months were $1.97 compared to $0.89 last year, an increase of 121.3%. excluding the impact of foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, non-gaap fully diluted earnings per share for the three months ended january 31, 2017 and 2016, were $0.58 and $0.45, respectively. non-gaap fully diluted earnings per share for the six months ended january 31, 2017 and 2016, were $1.14 and $0.86, 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 wednesday, february 22, 2017, at 3 p.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/copart022217. a replay of the call will be available through april 22, 2017 by calling (877) 919-4059. use confirmation code # 27485045. about copart copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters, and in some states, to end users. copart remarkets the vehicles through internet sales using its vb3 technology. copart sells vehicles on behalf of insurance companies, banks, financial institutions, charities, car dealerships, fleet operators, vehicle rental companies, as well as vehicles sourced from the general public. the company currently operates in the united states (www.copart.com), canada (www.copart.ca), the united kingdom (www.copart.co.uk), brazil (www.copart.com.br), germany (www.copart.de), the united arab emirates, oman and bahrain (www.copartmea.com), spain (www.copart.es), ireland (www.copart.ie), and india (www.copart.in). copart links sellers to more than 750,000 members in more than 150 countries worldwide through its multi-channel platform. in 2015, copart was ranked at the top of deloitte’s “the exceptional 100” list of companies, which reviewed u.s. publicly traded companies based upon a multidimensional approach to measuring financial performance. for more information, or to become a member, visit www.copart.com. 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 reflect the impact of foreign currency-related gains and losses, certain income tax benefits 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 and losses, certain income tax benefits 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. copart, inc. condensed consolidated statements of income (in thousands, except per share data) (unaudited) copart, inc. condensed consolidated balance sheets (in thousands) (unaudited) copart, inc. condensed consolidated statements of cash flows (in thousands) (unaudited) additional financial information reconciliation of gaap to non-gaap financial measures (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 early 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, filed with the securities and exchange commission on september 28, 2016.
