Copart (CPRT) 8-K Copart Reports Fourth Quarter Financial Results

Exhibit 99.1

Copart, Inc.

For Immediate Release

Copart Reports Fourth Quarter Financial Results

Fairfield, Calif. (September 22, 2010) — Copart, Inc. (NASDAQ: CPRT) today reported the results for its fourth quarter and fiscal year ended July 31, 2010.

For the three months ended July 31, 2010, revenue, operating income and income from continuing operations were $190.5 million, $57.2 million and $36.2 million, respectively.  These represent increases in revenue of $6.1 million, or 3.3%; in operating income of $1.8 million, or 3.3%; and in income from continuing operations of $1.6 million, or 4.6%, from the same quarter last year.  Fully diluted earnings per share from continuing operations for the three months were $0.43 compared to $0.41 last year, an increase of 4.9%.

For the twelve months ended July 31, 2010, revenue, operating income and income from continuing operations were $772.9 million, $239.1 million and $151.6 million, respectively.  These represent increases in revenue of $29.8 million, or 4.0%; in operating income of $13.7, million, or 6.1%; and in income from continuing operations of $12.1 million, or 8.7%, from the same period last year.  Fully diluted earnings per share from continuing operations for the twelve months ended July 31, 2010 were $1.78 compared to $1.64 last year, an increase of 8.5%.

On Thursday, September 23, 2010, 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://w.on24.com/r.htm?e=239442&s=1&k=09F03353ABE9E2E841847078E85519F5. A replay of the call will be available through October 23, 2010 by calling (888) 203-1112.  Use confirmation code #1712540.

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 patented VB2 technology.  Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships, the general public and others. The Company currently operates 153 facilities in the United States, Canada and the United Kingdom. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. For more information, or to become a member, visit www.copart.com.

Copart, Inc. ~ 4665 Business Center Drive, Fairfield, California 94534 ~ (707) 639-5000

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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.

Contact:Cindy Cross, Assistant to the Chief Financial Officer

(707) 639-5427

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Copart, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

	Three months ended July 31,					Twelve months ended July 31,
	2010		2009			2010			2009
Net sales and revenue:
Service revenues	$	158,391	$	151,340		$	642,134		$	615,352
Vehicle sales	32,077		32,992			130,745			127,730
Total service revenues and vehicle sales	$	190,468	$	184,332		$	772,879		$	743,082
Operating costs and expenses:
Yard operations	68,465		70,505			285,271			291,991
Cost of vehicle sales	26,627		25,509			104,673			106,029
Yard depreciation and amortization	9,152		8,389			34,941			32,802
Gross margin	86,224		79,929			347,994			312,260
General and administrative	27,016		22,379			100,634			77,890
General and administrative depreciation and amortization	1,988		2,162			8,290			9,045
Total operating expenses	133,248		128,944			533,809			517,757
Operating income	57,220		55,388			239,070			225,325
Other income (expense):
Interest income (expense), net	31		(51		)	(11		)	1,418
Other income	436		997			436			989
Total other income	467		946			425			2,407
Income from continuing operations before income taxes	57,687		56,334			239,495			227,732
Income taxes	21,453		21,708			87,868			88,186
Income from continuing operations	36,234		34,626			151,627			139,546
Discontinued operations:
Income from discontinued operations, net of income tax effects	—		—			—			1,557
Net income	$	36,234	$	34,626		$	151,627		$	141,103
Earnings per share-basic
Income from continuing operations	$	0.43	$	0.41		$	1.80		$	1.67
Income from discontinued operations	—		—			—			0.02
Basic net income per share	$	0.43	$	0.41		$	1.80		$	1.69
Weighted average common shares outstanding	84,284		83,794			84,165			83,537
Earnings per share-diluted
Income from continuing operations	$	0.43	$	0.41		$	1.78		$	1.64
Income from discontinued operations	—		—			—			0.02
Diluted net income per share	$	0.43	$	0.41		$	1.78		$	1.66
Weighted average common shares and dilutive potential common shares outstanding	85,087		84,214			85,027			84,930

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Copart, Inc.

Consolidated Balance Sheets

(in thousands)

(Unaudited)

	July 31, 2010			July 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	268,188		$	162,691
Accounts receivable, net	109,061			109,248
Inventories and vehicle pooling costs	34,866			33,352
Income taxes receivable	10,958			5,426
Prepaid expenses and other assets	14,342			5,216
Total current assets	437,415			315,933
Property and equipment, net	573,514			530,886
Intangibles, net	13,016			15,212
Goodwill	175,870			166,327
Deferred income taxes	10,213			7,759
Other assets	18,784			21,915
Total assets	$	1,228,812		$	1,058,032
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	93,740		$	82,773
Deferred revenue	10,642			13,165
Income taxes payable	1,314			5,269
Deferred income taxes	1,154			1,948
Other current liabilities	374			429
Total current liabilities	107,224			103,584
Deferred income taxes	9,748			10,997
Income taxes payable	23,369			20,266
Other liabilities	1,237			1,726
Total liabilities	141,578			136,573
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value - 180,000 shares authorized; 84,363 and 83,939 shares issued and outstanding at July 31, 2010 and July 31, 2009, respectively	365,507			334,440
Accumulated other comprehensive loss	(32,741		)	(27,082		)
Retained earnings	754,468			614,101
Total shareholders’ equity	1,087,234			921,459
Total liabilities and shareholders’ equity	$	1,228,812		$	1,058,032

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Copart, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

	Twelve months ended July 31,
	2010			2009
Cash flows from operating activities:
Net income	$	151,627		$	141,103
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations	—			(2,440		)
Depreciation and amortization	43,242			41,354
Allowance for doubtful accounts	442			(174		)
Deferred rent	(440		)	(1,171		)
Share-based compensation	17,955			9,413
Excess tax benefits from stock-based compensation	(5,643		)	(4,570		)
Loss on sale of property and equipment and real estate impairment	659			647
Deferred income taxes	(4,512		)	(2,393		)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	2,436			982
Vehicle pooling costs	(1,210		)	1,361
Inventory	(256		)	(54		)
Prepaid expenses and other current assets	(8,896		)	1,376
Other assets	311			(6,386		)
Accounts payable and accrued liabilities	8,098			(2,479		)
Deferred revenue	(2,527		)	(1,324		)
Income taxes receivable	861			18,021
Income taxes payable	(2,740		)	10,073
Net cash provided by operating activities	199,407			203,339
Cash flows from investing activities:
Principal payments from (issuance of) notes receivable	(1,300		)	12,000
Purchases of property and equipment including acquisitions	(75,840		)	(78,912		)
Proceeds from sale of property and equipment	2,477			7,008
Purchases of assets and liabilities in connection with acquisition, net of cash acquired	(21,362		)	—
Net cash used in investing activities	(96,025		)	(59,904		)
Cash flows from financing activities:
Proceeds from the exercise of stock options	6,285			3,119
Proceeds from the issuance of Employee Stock Purchase Plan shares	2,044			1,942
Repurchase of common stock	(12,706		)	(9,769		)
Excess tax benefit from share-based payment arrangements	5,643			4,570
Change in book overdraft	—			(17,502		)
Net cash provided by (used in) financing activities	1,266			(17,640		)
Effect of foreign currency translation	849			(2,058		)
Net increase in cash and cash equivalents	105,497			123,737
Cash and cash equivalents at beginning of period	162,691			38,954
Cash and cash equivalents at end of period	$	268,188		$	162,691
Supplemental disclosure of cash flow information:
Interest paid	$	216		$	353
Income taxes paid	$	93,989		$	71,908

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