Copart (CPRT) 8-K Results of Operations and Financial Condition

Copart, Inc.

For Immediate Release

Copart Reports First Quarter Fiscal 2011 Financial Results

Fairfield, Calif. (November 30, 2010) – Copart, Inc. (NASDAQ: CPRT) today reported the results for its first quarter ended October 31, 2010.

For the three months ended October 31, 2010, revenue, operating income and net income were $212.7 million, $59.6 million and $37.8 million, respectively. These represent increases in revenue of $27.2 million, or 14.7%; in operating income of $3.1 million, or 5.5%; and in net income of $2.6 million, or 7.2%, from the same quarter last year. Fully diluted earnings per share for the three months ended October 31, 2010 were $0.45 compared to $0.42 for the same period last year, an increase of 7.1%.

On August 1, 2010, the Company adopted Accounting Standards Update 2009-13,Revenue Arrangements with Multiple Deliverables. Consequently, the Company now recognizes in the period earned, certain revenues, primarily towing fees, titling fees and seller storage fees, which were previously deferred until the period the car associated with those revenues was sold. As a result of this change, the Company recognized approximately $9.1 million in revenue and $8.8 million in expenses associated with that revenue which would have otherwise been recognized in future periods.

During the first quarter of fiscal 2011, the Company repurchased 2,249,826 shares of its common stock at a weighted average price of $33.65 per share under its share repurchase program. At the end of the quarter, Copart had 12,979,454 shares available for repurchase under its share repurchase program.

On Wednesday, December 1, 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 athttp://w.on24.com/r.htm?e=266034&s=1&k=6B91831719E7128152737BF7089DC99D. A replay of the call will be available through January 1, 2011 by calling (888) 203-1112. Use confirmation code #5501467.

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 152 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.

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

Copart, Inc.

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

Copart, Inc.

Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)

		Three months ended October 31,
		2010		2009
Net sales and revenue:
Service revenues	$	179,580	$	153,765
Vehicle sales		33,087		31,696
Total service revenues and vehicle sales		212,667		185,461
Operating costs and expenses:
Yard operations		86,158		69,925
Cost of vehicle sales		28,206		24,429
Yard depreciation and amortization		9,449		8,522
Gross margin		88,854		82,585
General and administrative		26,984		23,920
General and administrative depreciation and amortization		2,276		2,173
Total operating expenses		153,073		128,969
Operating income		59,594		56,492
Other income (expense):
Interest income (expense)		65		(71	)
Other income		504		631
Total other income		569		560
Income before income taxes		60,163		57,052
Income taxes		22,340		21,782
Net income	$	37,823	$	35,270
Earnings per share-basic
Basic net income per share	$	0.45	$	0.42
Weighted average common shares outstanding		83,745		84,045
Earnings per share-diluted
Diluted net income per share	$	0.45	$	0.42
Weighted average common shares and dilutive potential common shares outstanding		84,406		84,948

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

Copart, Inc.

Consolidated Balance Sheets
(in thousands)
(Unaudited)

		October 31, 2010			July 31, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	260,470		$	268,188
Accounts receivable, net		117,032			109,061
Inventories and vehicle pooling costs		25,065			34,866
Income taxes receivable		2,380			10,958
Prepaid expenses and other assets		11,769			14,342
Total current assets		416,716			437,415
Property and equipment, net		574,880			573,514
Intangibles, net		11,976			13,016
Goodwill		178,438			175,870
Deferred income taxes		9,375			10,213
Other assets		18,762			18,784
Total assets	$	1,210,147		$	1,228,812
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	95,423		$	93,740
Deferred revenue		5,607			10,642
Income taxes payable		14,616			1,314
Deferred income taxes		241			1,154
Other current liabilities		343			374
Total current liabilities		116,230			107,224
Deferred income taxes		9,671			9,748
Income taxes payable		24,054			23,369
Other liabilities		1,163			1,237
Total liabilities		151,118			141,578
Commitments and contingencies
Shareholders' equity:
Common stock, no par value - 180,000 shares authorized; 82,186 and 84,363 shares issued and outstanding at October 31, 2010 and July 31, 2010, respectively		361,298			365,507
Accumulated other comprehensive loss		(28,483	)		(32,741	)
Retained earnings		726,214			754,468
Total shareholders' equity		1,059,029			1,087,234
Total liabilities and shareholders' equity	$	1,210,147		$	1,228,812

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

Copart, Inc.

Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

		Three Months Ended October 31,
		2010			2009
Cash flows from operating activities:
Net income	$	37,823		$	35,270
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,722			10,614
Allowance for doubtful accounts		(41	)		176
Deferred rent		(88	)		(125	)
Share-based compensation		4,636			4,285
Excess tax benefits from share-based compensation		(110	)		(2,429	)
(Gain)loss on sale and impairment of property and equipment		1,273			(18	)
Deferred income taxes		(395	)		(2,053	)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable		(7,985	)		(580	)
Vehicle pooling costs		9,277			861
Inventory		739			271
Prepaid expenses and other current assets		2,819			(1,013	)
Other assets		(60	)		251
Accounts payable and accrued liabilities		353			10,825
Deferred revenue		(5,038	)		(868	)
Income taxes receivable		8,690			5,590
Income taxes payable		13,923			16,634
Net cash provided by operating activities		77,538			77,691
Cash flows from investing activities:
Purchases of property and equipment		(14,777	)		(23,512	)
Proceeds from sale of property and equipment		3,704			605
Net cash used in investing activities		(11,073	)		(22,907	)
Cash flows from financing activities:
Proceeds from the exercise of stock options		674			1,026
Excess tax benefit from share-based payment arrangements		110			2,429
Repurchase of common stock		(75,710	)		(3,532	)
Net cash used in financing activities		(74,926	)		(77	)
Effect of foreign currency translation		743			881
Net (decrease) increase in cash and cash equivalents		(7,718	)		55,588
Cash and cash equivalents at beginning of period		268,188			162,691
Cash and cash equivalents at end of period	$	260,470		$	218,279
Supplemental disclosure of cash flow information:
Interest paid	$	15		$	142
Income taxes paid	$	122		$	1,607

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