CPRT Copart Inc

Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2024.

For the three months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.13 billion, $525.5 million, and $382.3 million, respectively. These represent an increase in revenue of $105.4 million, or 10.3%; an increase in gross profit of $42.1 million, or 8.7%; and an increase in net income attributable to Copart, Inc. of $31.9 million, or 9.1%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.39 compared to $0.36 last year, an increase of 8.3%.

For the nine months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $3.17 billion, $1.5 billion, and $1.0 billion, respectively. These represent an increase in revenue of $295.9 million, or 10.3%; an increase in gross profit of $174.3 million, or 13.6%; and an increase in net income attributable to Copart, Inc. of $150.5 million, or 16.9%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $1.07 compared to $0.92 last year, an increase of 16.3%.

On Thursday, May 16, 2024, at 5:30 p.m. Eastern Time (4:30 p.m. Central Time), Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live and can be accessed via hyperlink at www.copart.com/investorrelations. A replay of the call will be available through September 2024 by visiting www.copart.com/investorrelations.

About Copart

Founded in 1982, Copart is a global leader in online vehicle auctions. Copart's innovative technology and online auction platforms connect vehicle consigners to approximately 1 million members in over 185 countries. Copart offers remarketing services to process and sell vehicles to insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals, and offers vehicles via auction to dealers, dismantlers, rebuilders, exporters, and the general public. With operations at over 250 locations in 11 countries, Copart sold more than 4 million units in the last year. Copart currently operates in the United States (Copart.com), Canada (Copart.ca), the United Kingdom (Copart.co.uk), Brazil (Copart.com.br), the Republic of Ireland (Copart.ie), Germany (Copart.de), Finland (Copart.fi), the United Arab Emirates, Oman and Bahrain (Copartmea.com), and Spain (Copart.es). For more information, or to become a Member, visit Copart.com/register.

Cautionary Note About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the “Management’s Discussion and Analysis” and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.

Copart, Inc.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended

April 30,

 

Nine Months Ended

April 30,

 

 

 

2024

 

 

 

2023

 

% Change

 

 

2024

 

 

 

2023

 

 

% Change

Service revenues and vehicle sales:

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

$

946,630

 

 

$

847,249

 

11.7

%

 

$

2,667,911

 

 

$

2,363,886

 

 

12.9

%

Vehicle sales

 

 

180,629

 

 

 

174,582

 

3.5

%

 

 

499,913

 

 

 

508,041

 

 

(1.6

)%

Total service revenues and vehicle sales

 

 

1,127,259

 

 

 

1,021,831

 

10.3

%

 

 

3,167,824

 

 

 

2,871,927

 

 

10.3

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Yard operations

 

 

391,256

 

 

 

343,617

 

13.9

%

 

 

1,125,440

 

 

 

1,020,674

 

 

10.3

%

Cost of vehicle sales

 

 

162,881

 

 

 

159,443

 

2.2

%

 

 

457,596

 

 

 

465,282

 

 

(1.7

)%

Yard depreciation and amortization

 

 

45,800

 

 

 

33,090

 

38.4

%

 

 

126,111

 

 

 

101,520

 

 

24.2

%

Yard stock-based compensation

 

 

1,817

 

 

 

2,251

 

(19.3

)%

 

 

5,001

 

 

 

5,038

 

 

(0.7

)%

Gross profit

 

 

525,505

 

 

 

483,430

 

8.7

%

 

 

1,453,676

 

 

 

1,279,413

 

 

13.6

%

General and administrative

 

 

76,169

 

 

 

52,395

 

45.4

%

 

 

206,457

 

 

 

144,772

 

 

42.6

%

General and administrative depreciation and amortization

 

 

4,932

 

 

 

4,281

 

15.2

%

 

 

13,047

 

 

 

13,323

 

 

(2.1

)%

General and administrative stock-based compensation

 

 

7,201

 

 

 

7,830

 

(8.0

)%

 

 

21,693

 

 

 

25,366

 

 

(14.5

)%

Total operating expenses

 

 

690,056

 

 

 

602,907

 

14.5

%

 

 

1,955,345

 

 

 

1,775,975

 

 

10.1

%

Operating income

 

 

437,203

 

 

 

418,924

 

4.4

%

 

 

1,212,479

 

 

 

1,095,952

 

 

10.6

%

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

36,218

 

 

 

17,878

 

102.6

%

 

 

102,179

 

 

 

36,780

 

 

177.8

%

Other (expense) income, net

 

 

(1,309

)

 

 

3,628

 

(136.1

)%

 

 

(8,484

)

 

 

(2,096

)

 

304.8

%

Total other income

 

 

34,909

 

 

 

21,506

 

62.3

%

 

 

93,695

 

 

 

34,684

 

 

170.1

%

Income before income taxes

 

 

472,112

 

 

 

440,430

 

7.2

%

 

 

1,306,174

 

 

 

1,130,636

 

 

15.5

%

Income tax expense

 

 

90,002

 

 

 

89,999

 

—

%

 

 

266,005

 

 

 

240,680

 

 

10.5

%

Net income

 

 

382,110

 

 

 

350,431

 

9.0

%

 

 

1,040,169

 

 

 

889,956

 

 

16.9

%

Less: Net loss attributable to noncontrolling interest

 

 

(181

)

 

 

—

 

100.0

%

 

 

(284

)

 

 

—

 

 

100.0

%

Net income attributable to Copart, Inc.

 

$

382,291

 

 

$

350,431

 

9.1

%

 

$

1,040,453

 

 

$

889,956

 

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.40

 

 

$

0.37

 

8.1

%

 

$

1.08

 

 

$

0.93

 

 

16.1

%

Weighted average common shares outstanding

 

 

961,813

 

 

 

953,574

 

0.9

%

 

 

960,143

 

 

 

952,834

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.39

 

 

$

0.36

 

8.3

%

 

$

1.07

 

 

$

0.92

 

 

16.3

%

Diluted weighted average common shares outstanding

 

 

976,445

 

 

 

967,380

 

0.9

%

 

 

974,226

 

 

 

965,436

 

 

0.9

%

 

Copart, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

April 30, 2024

 

July 31, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

1,089,995

 

 

$

957,395

 

Investment in held to maturity securities

 

 

2,000,334

 

 

 

1,406,589

 

Accounts receivable, net

 

 

822,650

 

 

 

702,038

 

Vehicle pooling costs

 

 

125,001

 

 

 

123,725

 

Inventories

 

 

46,764

 

 

 

39,973

 

Income taxes receivable

 

 

23,402

 

 

 

6,574

 

Prepaid expenses and other assets

 

 

40,983

 

 

 

26,310

 

Total current assets

 

 

4,149,129

 

 

 

3,262,604

 

Property and equipment, net

 

 

3,073,090

 

 

 

2,844,339

 

Operating lease right-of-use assets

 

 

108,859

 

 

 

108,139

 

Intangibles, net

 

 

76,786

 

 

 

62,702

 

Goodwill

 

 

511,372

 

 

 

394,289

 

Other assets

 

 

91,396

 

 

 

65,806

 

Total assets

 

$

8,010,632

 

 

$

6,737,879

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

506,795

 

 

$

440,810

 

Deferred revenue

 

 

28,761

 

 

 

26,117

 

Income taxes payable

 

 

7,388

 

 

 

4,374

 

Current portion of operating and finance lease liabilities

 

 

20,475

 

 

 

21,468

 

Total current liabilities

 

 

563,419

 

 

 

492,769

 

Deferred income taxes

 

 

92,014

 

 

 

89,492

 

Income taxes payable

 

 

67,455

 

 

 

69,193

 

Operating and finance lease liabilities, net of current portion

 

 

91,131

 

 

 

88,082

 

Long-term debt and other liabilities

 

 

427

 

 

 

10,903

 

Total liabilities

 

 

814,446

 

 

 

750,439

 

Commitments and contingencies

 

 

 

 

Redeemable non-controlling interest

 

 

24,933

 

 

 

—

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

Common stock

 

 

96

 

 

 

96

 

Additional paid-in capital

 

 

1,102,684

 

 

 

938,910

 

Accumulated other comprehensive loss

 

 

(156,807

)

 

 

(141,006

)

Retained earnings

 

 

6,225,280

 

 

 

5,189,440

 

Total stockholders' equity

 

 

7,171,253

 

 

 

5,987,440

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

 

$

8,010,632

 

 

$

6,737,879

 

 

Copart, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended April 30,

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

1,040,169

 

 

$

889,956

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization, including debt cost

 

 

139,178

 

 

 

115,320

 

Allowance for credit loss

 

 

2,513

 

 

 

1,480

 

Equity in losses of unconsolidated affiliates

 

 

2,580

 

 

 

5,446

 

Stock-based compensation

 

 

26,694

 

 

 

30,404

 

Gain on sale of property and equipment

 

 

(2,169

)

 

 

(965

)

Deferred income taxes

 

 

(3,093

)

 

 

(3,236

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(152,564

)

 

 

(115,098

)

Vehicle pooling costs

 

 

(1,784

)

 

 

(7,300

)

Inventories

 

 

(7,316

)

 

 

14,870

 

Prepaid expenses, other current and non-current assets

 

 

(39,815

)

 

 

(33,830

)

Operating lease right-of-use assets and lease liabilities

 

 

1,377

 

 

 

595

 

Accounts payable, accrued liabilities and other liabilities

 

 

40,305

 

 

 

30,314

 

Deferred revenue

 

 

2,660

 

 

 

5,516

 

Income taxes receivable

 

 

(16,846

)

 

 

49,430

 

Income taxes payable

 

 

1,454

 

 

 

22,731

 

Net cash provided by operating activities

 

 

1,033,343

 

 

 

1,005,633

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(373,104

)

 

 

(346,524

)

Cash acquired in connection with acquisition

 

 

17,662

 

 

 

—

 

Proceeds from sale of property and equipment

 

 

3,453

 

 

 

20,509

 

Investment in held to maturity securities

 

 

(2,478,505

)

 

 

—

 

Proceeds from the sale of held to maturity securities

 

 

1,915,000

 

 

 

—

 

Investment in unconsolidated affiliate

 

 

(1,000

)

 

 

(2,744

)

Net cash used in investing activities

 

 

(916,494

)

 

 

(328,759

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from the exercise of stock options

 

 

20,377

 

 

 

27,220

 

Proceeds from the issuance of Employee Stock Purchase Plan shares

 

 

5,957

 

 

 

5,363

 

Payments for employee stock-based tax withholdings

 

 

(4,613

)

 

 

(3,026

)

Issuance of principal on revolver facility

 

 

—

 

 

 

21,481

 

Principal payments on revolver facility

 

 

(10,818

)

 

 

—

 

Payments of finance lease obligations

 

 

(14

)

 

 

(18

)

Net cash provided by financing activities

 

 

10,889

 

 

 

51,020

 

Effect of foreign currency translation

 

 

4,862

 

 

 

2,053

 

Net increase in cash, cash equivalents, and restricted cash

 

 

132,600

 

 

 

729,947

 

Cash, cash equivalents, and restricted cash at beginning of period

 

 

957,395

 

 

 

1,384,236

 

Cash, cash equivalents, and restricted cash at end of period

 

$

1,089,995

 

 

$

2,114,183

 

Supplemental disclosure of cash flow information:

 

 

 

 

Interest paid

 

$

1,946

 

 

$

1,586

 

Income taxes paid, net of refunds

 

$

255,268

 

 

$

171,438

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516578331/en/

Copart Investor Relations investor.relations@copart.com