Copart, Inc. CPRT reported earnings per share (“EPS”) of 44 cents for third-quarter fiscal 2015 (ended Apr 30, 2015), up from 31 cents in the corresponding quarter of fiscal 2014. However, EPS missed the Zacks Consensus Estimate of 50 cents. Net income (on a reported basis) amounted to $57.6 million, up 40.8% over the prior-year quarter figure.
Copart’s revenues went down 4.1% to $297.1 million in the quarter, missing the Zacks Consensus Estimate of $312 million. Service revenues inched up 0.6% to $256.6 million, while revenues from vehicle sales fell 25.8% to $40.6 million.
Gross margin decreased 3.7% to $127.4 million (42.9% of sales) in the reported quarter from $132.3 million (42.7% of sales) a year ago. Operating expenses fell 18.1% to $202.4 million from $247.1 million recorded in the year-ago quarter.
Operating income improved 51.3% to $94.8 million from $62.6 million recorded in the third quarter of fiscal 2014.
Financial Details
Copart had cash and cash equivalents of $678.7 million as of Apr 30, 2015, compared with $158.7 million as of Jul 31, 2014. Total debt and capital lease obligations amounted to $664.9 million as of Apr 30, 2015, compared with $302.9 million as of Jul 31, 2014.
During the first nine months of fiscal 2015, Copart generated net cash flow of $203.4 million from operations, compared with $207.6 million in the same period a year ago. Capital spending was $49.1 million, compared with $78.1 million in the first nine months of fiscal 2014.
Copart is a prominent player in online auctions and vehicle remarketing services in the U.S., Canada, U.K. and U.A.E., along with Sotheby's BID, Ritchie Bros. Auctioneers Inc. RBA and Liquidity Services, Inc. LQDT. The company, with a Zacks Rank #3 (Hold), provides a wide range of remarketing services to vehicle suppliers, primarily insurance companies, to process and sell salvage vehicles. This is done mainly over the Internet, through its Virtual Bidding Internet auction-style sales technology.
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