Copart Earnings Call Nuggets: Quad Cities and Nationwide Contract

Copart (NASDAQ:CPRT) recently reported its third quarter earnings and discussed the following topics in its earnings conference call.

Quad Cities

Robert Labick – CJS Securities: Just wondering if you could maybe give us a little more history of the acquisition, how long you were talking to them, was it an auction or a negotiated deal, why did they sell now? You talked a little bit about why to Copart, but why now? And obviously, with (indiscernible) of the terms of the deal or how big they are and then that kind of stuff if you would tell us that?

Vincent W. Mitz – President: Sure. This is Vinnie. The deal came together very, very quickly. After some recent national RFPs market share throughout the country had been suddenly redistributed and the owners of Quad Cities, including John, we’re looking what is best for their strategic future. And they were looking to team up to continue and accelerate their growth; and actually we’re looking for a partner who will be able to help and assist in the growth of their Company separate from a normal acquisition integration and that opportunity came together very quickly once we agreed philosophically how to handle the transaction. It was just a matter of working out the financials. So, it only took probably three to four months for the whole thing to come together.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

William E. Franklin – SVP and CFO: Bob, this is Will. Let me add just a little color to that too. Quad City is a serious player in our space. We compete with them all the time and we (lose certainly). The insurance companies use them because they like what they do. So we think this is a win for us to be able to understand what they do well in their corporate debt and into our offerings as well.

Robert Labick – CJS Securities: Could you maybe give some specifics on what they do well better than Copart and how you can bring that to the rest of your yards?

More Articles About:   ,