Copart reports third quarter fiscal 2014 financial results
Dallas--(business wire)--copart, inc. (nasdaq: cprt) today reported financial results for the quarter ended april 30, 2014. for the three months ended april 30, 2014, revenue, gross margin and net income were $309.7 million, $132.3 million and $40.9 million, respectively. these represent increases in revenue of $32.1 million, or 11.6%; and in gross margin of $16.7 million, or 14.4%; and a decrease in net income of $12.4 million, or 23.2%, respectively, from the same quarter last year. fully diluted earnings per share for the three months were $0.31 compared to $0.41 last year, a decrease of 24.4%. for the nine months ended april 30, 2014, revenue, gross margin and net income were $876.0 million, $351.6 million and $127.6 million, respectively. these represent increases in revenue of $93.4 million, or 11.9%; and in gross margin of $33.8 million, or 10.6%; and a decrease in net income of $11.1 million, or 8.0%, respectively, from the same period last year. fully diluted earnings per share for the nine months were $0.97 compared to $1.07 last year, a decrease of 9.3%. included in operating results of the current quarter is an impairment charge of $29.1 million. in a prior fiscal year, the company initiated the development of a third-party enterprise operating system to address its international expansion needs and to eventually replace its proprietary operating system, which is currently utilized in the united states, canada, the united kingdom and the united arab emirates. during the quarter, the company reassessed this strategy based on the projected cost to complete, deployment risk and certain other factors. as a result of this assessment, the company decided to cease development of the third-party enterprise operating system and address its international technology needs through an internally-developed proprietary solution. accordingly, during the quarter, the company recognized an impairment charge resulting primarily from the abandonment of work previously capitalized in connection with the development of the third-party solution. included in the operating results of the third quarter of the prior fiscal year were the incremental revenues and operating expenses associated with incremental unit volume generated by hurricane sandy, which were estimated to be $12.7 million and $7.2 million, respectively. excluding the impacts of the impairment charge during the current quarter and the effects of hurricane sandy during the same quarter last year, for the three months ended april 30, 2014, non-gaap revenue, gross margin and net income were $309.7 million, $132.3 million and $60.3 million, respectively. these represent increases in non-gaap revenue of $44.8 million, or 16.9%; in non-gaap gross margin of $22.1 million, or 20.1%; and in non-gaap net income of $10.6 million, or 21.4%, respectively, from the non-gaap results from the same quarter last year. non-gaap fully diluted earnings per share for the three months were $0.46 compared to $0.38 last year, an increase of 21.1%. 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. for the nine months ended april 30, 2014, non-gaap revenue, gross margin and net income were $876.0 million, $351.6 million and $146.6 million, respectively. these represent increases in non-gaap revenue of $124.5 million, or 16.6%; in non-gaap gross margin of $29.4 million, or 9.1%; and in non-gaap net income of $5.0 million, or 3.5%, respectively, from the non-gaap results from the same period last year. non-gaap fully diluted earnings per share for the nine months were $1.12 compared to $1.09 last year, an increase of 2.8%. on thursday, may 29, 2014, 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://64.202.98.81/conferenceamerica. a replay of the call will be available through july 28, 2014 by calling (877) 919-4059. use confirmation code #17312559. 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 utilizing its vb3 technology. copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others, as well as cars sourced from the general public. the company currently operates in the united states and canada (www.copart.com), the united kingdom (www.copart.co.uk), brazil (www.copart.com.br), germany (www.copart.de), the united arab emirates (www.copart.ae) and spain (www.autoresiduos.com). copart links sellers to more than 750,000 members in over 140 countries worldwide through our online multi-channel platform. 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 revenue, non-gaap gross margin, non-gaap net income and non-gaap net income per diluted share, which reflect the impact of an impairment charge in the quarter ended april 30, 2014, and revenues and expenses associated with salvage cars processed as a result of hurricane sandy. 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 revenue, non-gaap gross margin, non-gaap net income and 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 impairment charges and the effects of hurricane sandy. 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 (unaudited) three months endedapril 30, nine months endedapril 30, (in thousands, except per share data) total service revenues and vehicle sales copart, inc. condensed consolidated balance sheets (in thousands) 2014 2013 copart, inc. condensed consolidated statements of cash flows (unaudited) (in thousands) copart, inc. additional financial information reconciliation of gaap to non-gaap financial measures (unaudited) (in thousands, except per share data) april 30, april 30,
