Copart Reports Fourth Quarter Financial Results

Copart, Inc. (NASDAQ:CPRT) today reported the results for its fourth quarter and fiscal year ended July 31, 2008.

For the three months ended July 31, 2008, revenue and net income were $206.3 million and $40.8 million, respectively. This represents increases in revenue of $52.3 million, or 34.0%, and in net income of $4.1 million, or 11.1%, over the same quarter last year. Fully diluted earnings per share for the three months were $0.47 compared to $0.40 last year, an increase of 17.5%.

During the current quarter the Company recorded a non–recurring tax adjustment that increased income tax expense by $1.2 million. Excluding this item, fully diluted earnings per share would have been $0.48.

For the twelve months ended July 31, 2008, revenue and net income were $784.8 million and $156.9 million, respectively. This represents increases in revenue of $224.2 million, or 40.0%, and in net income of $20.6 million, or 15.1%, over the same period last year. Fully diluted earnings per share for the twelve months were $1.75 compared to $1.46 last year, an increase of 19.9%.

For the quarter, revenue and gross margin for North America were $158.6 million and $83.9 million, respectively. Growth in North American revenue over the same quarter last year was 13.9% driven primarily by an 11.8% growth in same store sales. Revenue and gross margin for the United Kingdom were $47.7 million and $3.2 million, respectively. The Company first entered the market in the United Kingdom through an acquisition in the fourth quarter of fiscal 2007.

Also during the current quarter the Company repurchased 2,853,600 shares of its common stock at a weighted average price of $42.24 per share. During the year, the Company repurchased 6,615,764 shares of its common stock at a weighted average price of $40.70 per share. At the end of fiscal year 2008, the Company had repurchased an aggregate of 13,649,469 shares of its common stock pursuant to the Company’s repurchase program. A total of 15,350,531 shares remain available for repurchase under the program.

On Thursday, September 25, 2008, 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://www.investorcalendar.com/IC/CEPage.asp?ID=133855. A replay of the call will be available through October 24, 2008 by calling (888) 203-1112. Use confirmation code #3244929.

About Copart

Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean titled vehicles to dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its proprietary 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 144 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 registered buyer, visit www.copart.com.

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. Our business has become increasingly reliant on proprietary and non-proprietary technologies, and it is difficult to forecast with accuracy what impact these changes in our business model will have. We depend on a limited number of major suppliers of salvage vehicles. If we are unable to maintain these supply relationships, our revenues and operating results would be adversely affected. We have only recently entered the UK market through several acquisitions. We do not have any historic experience operating outside of North America, and we may experience challenges adapting our business model to international markets and integrating the acquired businesses. In addition, our revenues, operating results, financial condition, and growth rates are subject to numerous other risks, including our ability to complete and integrate new acquisitions, environmental and regulatory risks, and the other factors described under the caption "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We encourage investors to review these disclosures carefully.