Investing.com -- Shares in Copart Inc (O:CPRT) ticked up in after-hours after the Dallas-based provider of online vehicle auctions and remarketing services announce their intent to repurchase more than seven million of its common stock on Monday.
In the announcement, Copart said it expects to purchase the shares through a modified Dutch Auction at a price not less than $38 a share and not greater than $41. The tender offer is expected to commence on November 24 and expire on Dec. 23, unless extended. The proposed amount of shares to be repurchased in the tender offer represents roughly 6.1% of the company's outstanding common stock. If more than 7.317 million shares are repurchased at $41 per share, the repurchase will total $300 million.
Also on Monday, Copart reported revenue of $288.8 million for its first quarter of Fiscal Year 2016, a decrease of $1.5 million or 0.5% on a year-over-year basis. At the same time, Copart had net profits of $52.4 million, a reduction of $0.2 million or 0.4% from the same three-month period last year. Copart's gross margin also fell by $1.4 million or 1.2% to $120.9 million for the quarter.
In addition, Copart announced on Monday that Jeffrey Liaw will become the company's vice president of finance and Chief Financial Official, in a move that will be effective on January 4. William Franklin, the company's executive vice president, will remain in his current role where he will continue to be responsible for U.S. operations and shared services.
Liaw previously served as the CFO of FleetPride, Inc. a privately held company that distributes truck and trailer parts nationwide. For an eight year period through December, 2012, Liaw served as a principal of TPG Capital Management, a private equity firm. Liaw earned a B.A. from the University of Texas in 1999 and an MBA from Harvard University in 2005.
Shares in Copart inched up 0.90 or 2.42% in after-hours to 38.10.