CPRT Copart Inc

Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2023.

For the three months ended October 31, 2023, revenue, gross profit, and net income were $1,020.4 million, $464.0 million, and $332.5 million, respectively. These represent an increase in revenue of $127.0 million, or 14.2%; an increase in gross profit of $94.5 million, or 25.6%; and an increase in net income of $86.7 million, or 35.3%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.34 compared to $0.25 last year, an increase of 36.0%.

On Thursday, November 16, 2023, 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 February 2024 by visiting www.copart.com/investorrelations.

About Copart

Copart, Inc., founded in 1982, is a global leader in online vehicle auctions. Copart's innovative technology and online auction platform links sellers to more than 750,000 members in over 190 countries. Copart offers services to process and sell vehicles to dealers, dismantlers, rebuilders, exporters, and to the general public. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. With operations at over 250 locations in 11 countries, Copart has more than 265,000 vehicles available online every day. 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 October 31,

 

 

 

2023

 

 

 

2022

 

 

% Change

Service revenues and vehicle sales:

 

 

 

 

 

 

Service revenues

 

 

859,536

 

 

$

726,840

 

 

18.3

%

Vehicle sales

 

 

160,880

 

 

 

166,532

 

 

(3.4

)%

Total service revenues and vehicle sales

 

 

1,020,416

 

 

 

893,372

 

 

14.2

%

Operating expenses:

 

 

 

 

 

 

Yard operations

 

 

367,842

 

 

 

336,972

 

 

9.2

%

Cost of vehicle sales

 

 

147,896

 

 

 

151,112

 

 

(2.1

)%

Yard depreciation and amortization

 

 

39,103

 

 

 

34,360

 

 

13.8

%

Yard stock-based compensation

 

 

1,556

 

 

 

1,445

 

 

7.7

%

Gross profit

 

 

464,019

 

 

 

369,483

 

 

25.6

%

General and administrative

 

 

57,631

 

 

 

44,535

 

 

29.4

%

General and administrative depreciation and amortization

 

 

4,061

 

 

 

4,698

 

 

(13.6

)%

General and administrative stock-based compensation

 

 

6,951

 

 

 

8,747

 

 

(20.5

)%

Total operating expenses

 

 

625,040

 

 

 

581,869

 

 

7.4

%

Operating income

 

 

395,376

 

 

 

311,503

 

 

26.9

%

Other income (expense):

 

 

 

 

 

 

Interest income, net

 

 

32,005

 

 

 

4,422

 

 

623.8

%

Other expense, net

 

 

(4,072

)

 

 

(2,822

)

 

44.3

%

Total other income

 

 

27,933

 

 

 

1,600

 

 

1645.8

%

Income before income taxes

 

 

423,309

 

 

 

313,103

 

 

35.2

%

Income tax expense

 

 

90,777

 

 

 

67,255

 

 

35.0

%

Net income

 

$

332,532

 

 

$

245,848

 

 

35.3

%

Less: Net income attributable to noncontrolling interest

 

 

5

 

 

 

—

 

 

100.0

%

Net income attributable to Copart, Inc.

 

$

332,527

 

 

$

245,848

 

 

35.3

%

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.35

 

 

$

0.26

 

 

34.6

%

Weighted average common shares outstanding

 

 

958,127

 

 

 

952,198

 

 

0.6

%

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.34

 

 

$

0.25

 

 

36.0

%

Diluted weighted average common shares outstanding

 

 

971,682

 

 

 

964,336

 

 

0.8

%

Copart, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

October 31, 2023

 

July 31, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

2,581,567

 

 

$

957,395

 

Investment in held to maturity securities

 

 

48,982

 

 

 

1,406,589

 

Accounts receivable, net

 

 

755,635

 

 

 

702,038

 

Vehicle pooling costs

 

 

127,512

 

 

 

123,725

 

Inventories

 

 

42,631

 

 

 

39,973

 

Income taxes receivable

 

 

418

 

 

 

6,574

 

Prepaid expenses and other assets

 

 

28,145

 

 

 

26,310

 

Total current assets

 

 

3,584,890

 

 

 

3,262,604

 

Property and equipment, net

 

 

2,943,537

 

 

 

2,844,339

 

Operating lease right-of-use assets

 

 

121,690

 

 

 

108,139

 

Intangibles, net

 

 

81,832

 

 

 

62,702

 

Goodwill

 

 

500,926

 

 

 

394,289

 

Other assets

 

 

100,911

 

 

 

65,806

 

Total assets

 

$

7,333,786

 

 

$

6,737,879

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

495,201

 

 

$

440,810

 

Deferred revenue

 

 

27,174

 

 

 

26,117

 

Income taxes payable

 

 

80,106

 

 

 

4,374

 

Current portion of operating and finance lease liabilities

 

 

21,936

 

 

 

21,468

 

Total current liabilities

 

 

624,417

 

 

 

492,769

 

Deferred income taxes

 

 

91,821

 

 

 

89,492

 

Income taxes payable

 

 

69,982

 

 

 

69,193

 

Operating and finance lease liabilities, net of current portion

 

 

101,465

 

 

 

88,082

 

Long-term debt and other liabilities

 

 

9,462

 

 

 

10,903

 

Total liabilities

 

 

897,147

 

 

 

750,439

 

Commitments and contingencies

 

 

 

 

Redeemable non-controlling interest

 

 

25,222

 

 

 

—

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

Common stock

 

 

96

 

 

 

96

 

Additional paid-in capital

 

 

1,067,424

 

 

 

938,910

 

Accumulated other comprehensive loss

 

 

(177,359

)

 

 

(141,006

)

Retained earnings

 

 

5,521,256

 

 

 

5,189,440

 

Total stockholders' equity

 

 

6,411,417

 

 

 

5,987,440

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

 

$

7,333,786

 

 

$

6,737,879

 

Copart, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Three Months Ended October 31,

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

332,532

 

 

$

245,848

 

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

 

 

 

 

Depreciation and amortization, including debt cost

 

 

43,350

 

 

 

39,327

 

Allowance for credit loss

 

 

1,049

 

 

 

1,396

 

Equity in (earnings) losses of unconsolidated affiliates

 

 

(4,764

)

 

 

2,122

 

Stock-based compensation

 

 

8,317

 

 

 

10,192

 

Gain on sale of property and equipment

 

 

(1,050

)

 

 

(113

)

Deferred income taxes

 

 

(988

)

 

 

(1,780

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(77,086

)

 

 

(53,837

)

Vehicle pooling costs

 

 

(4,377

)

 

 

(4,643

)

Inventories

 

 

(3,669

)

 

 

4,020

 

Prepaid expenses, other current and non-current assets

 

 

(40,543

)

 

 

(35,303

)

Operating lease right-of-use assets and lease liabilities

 

 

366

 

 

 

52

 

Accounts payable, accrued liabilities and other liabilities

 

 

38,153

 

 

 

40,372

 

Deferred revenue

 

 

1,101

 

 

 

(588

)

Income taxes receivable

 

 

6,135

 

 

 

44,595

 

Income taxes payable

 

 

76,720

 

 

 

19,899

 

Net cash provided by operating activities

 

 

375,246

 

 

 

311,559

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(162,260

)

 

 

(152,655

)

Cash acquired in connection with acquisition

 

 

17,662

 

 

 

—

 

Proceeds from sale of property and equipment

 

 

924

 

 

 

185

 

Proceeds from the sale of held to maturity securities

 

 

1,380,000

 

 

 

—

 

Investment in unconsolidated affiliate

 

 

(1,001

)

 

 

—

 

Net cash provided by (used in) investing activities

 

 

1,235,325

 

 

 

(152,470

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from the exercise of stock options

 

 

8,123

 

 

 

1,061

 

Payments for employee stock-based tax withholdings

 

 

(711

)

 

 

(295

)

Payments of finance lease obligations

 

 

(5

)

 

 

(7

)

Net cash provided by financing activities

 

 

7,407

 

 

 

759

 

Effect of foreign currency translation

 

 

6,194

 

 

 

(4,693

)

Net increase in cash, cash equivalents, and restricted cash

 

 

1,624,172

 

 

 

155,155

 

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

 

$

2,581,567

 

 

$

1,539,391

 

Supplemental disclosure of cash flow information:

 

 

 

 

Interest paid

 

$

96

 

 

$

64

 

Income taxes paid, net of refunds

 

$

9,066

 

 

$

5,700

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231116240362/en/

Brooke Boston, Executive Assistant, Office of the Chief Financial Officer brooke.boston@copart.com