Copart, Inc. (NASDAQ:CPRT) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
QCSA Cost Details
Robert Labick – CJS Securities: I wanted to just dig in a little bit more starting with yard and fleet. The increase in the quarter – you mentioned, obviously, the increased inventory, is that 20% including QCSA or is that – what’s the organic number on that?
William E. Franklin – SVP and CFO: No, that’s not including QCSA.
Robert Labick – CJS Securities: Are there any unusual Sandy expenses in there or anything else?
William E. Franklin – SVP and CFO: No, most of those have already flowed through, primarily the inefficiencies that are associated with the integration of QCSA and QCSA itself.
Robert Labick – CJS Securities: Can you give us a sense, or is it too soon to know, roughly a year from now how much can be pulled out once you fully integrate both companies?
A. Jayson Adair – CEO: I caution giving that kind of view on it. I would say this. Our expectation are that the margins will be similar to the margins of Copart, so that will convert that revenue to a historical Copart margin, not what you’re currently seeing.
Robert Labick – CJS Securities: Then just kind of stick on the margin side, just want to verify one thing which I think you’ve been saying. But, has there been any material change in the revenue model, the pricing – outside of commodities, of course – or the cost of processed cars, or is the near-term gross margin decline, the identifiable factors, we’ve seen the international and the integration and things like that?