EPS got a 2c boost from lower tax rate. But what caught my eye was that depreciation was $10Mn, below the $11Mn in the previous quarter. Net PP&E increased by $39Mn in the quarter, which means capex was $49Mn. I cannot understand how depreciation can decrease when capex is so high. It looks manipulated to me. From the cash balance and accounting for the buyback, free cash flow was lower this quarter than last year ($31Mn vs. $44Mn). So in the last 12 months, the co. has generated $65Mn of FCF, which means it is trading at a 60x multiple! The stock is being supported by the buyback, but in another quarter, the company will run out of cash, so it will have to halt the buyback as it is not generating much cash. I calculate fair value of the stock as $20, which would still be a 25x FCF multiple.
So if memory serves, CPRT spent a ton of Capex in 2003 and 2004 to build VB2, both in terms of servers/network/data center and in software development which was capitalized. Most IT stuff is on a 3 year depreciation schedule. I think they also built the corp HQ in 2002, which was was probably on a 4 or 5 year dep schedule for a lot of the infrastructure. So, a $1M drop in quarterly depreciation would indicate that $12M in capital assets purchased 3 or 4 years ago reached the end of its schedule.
Well, you haven't offered any alternate figures to the ones I put out, so maybe you are the one who needs to learn how to read a balance sheet? Not to mention how to spell consistent. And for the record, I haven't been saying CPRT is a $20 stock for "God knows how long". I do know that the value of a stock is based on how much cash it generates, and it remains a fact that CPRT doesn't generate much. Good luck with your investing style based on EPS numbers put out by management.