NPA parent company Copart reports fiscal Q3 results

Copart, Inc. (NASDAQ: CPRT), parent company of National Powersport Auctions, today reported financial results for the quarter ended April 30, 2019.

For the three months ended April 30, 2019, revenue, gross profit, and net income were $553.1 million, $251.6 million, and $192.7 million, respectively. These represent an increase in revenue of $74.9 million, or 15.7%; an increase in gross profit of $32.5 million, or 14.8%; and an increase in net income of $65.4 million, or 51.3%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.81 compared to $0.52 last year, an increase of 55.8%.

For the nine months ended April 30, 2019, revenue, gross profit, and net income were $1.5 billion, $655.7 million, and $438.2 million, respectively. These represent an increase in revenue of $142.9 million, or 10.5%; an increase in gross profit of $81.8 million, or 14.2%; and an increase in net income of $130.1 million, or 42.2%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $1.82 compared to $1.28 last year, an increase of 42.2%.

The operating results for the three and nine months ended April 30, 2018 were adversely affected by abnormal costs of $7.4 million and $79.7 million, respectively, incurred as a result of Hurricane Harvey. These costs included temporary storage facilities; abnormally high costs for subhaulers; increased labor costs due to overtime; travel and lodging due to the reassignment of employees to the affected region; and equipment lease expenses to handle the increased volume, as well as cost of vehicle sales. These costs, net of the associated revenues of $3.5 million and $66.9 million, respectively, generated pre-tax loss for the three months ended April 30, 2018 of $3.9 million and a pre-tax loss for the nine months ended April 30, 2018 of $12.8 million.

Excluding the impact of income taxes on the deemed repatriation of foreign earnings, net of deferred tax changes, discrete income tax items, disposals of non-operating assets, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, and the effect on common equivalent shares from ASU 2016-09, non-GAAP fully diluted earnings per share for the three months ended April 30, 2019 and 2018, were $0.66 and $0.52, respectively. Non-GAAP fully diluted earnings per share for the nine months ended April 30, 2019 and 2018, were $1.64 and $1.31, respectively.