CPRT Copart Inc

Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2024.

For the three months ended July 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.1 billion, $454 million, and $323 million, respectively. These represent an increase in revenue of $71.4 million, or 7.2%; a decrease in gross profit of $(4.0) million, or (0.9)%; and a decrease in net income attributable to Copart, Inc. of $(25.2) million, or (7.3)%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2024 was $0.33 compared to $0.36 last year, a decrease of (8.3)%.

For the year ended July 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $4.2 billion, $1.9 billion, and $1.4 billion, respectively. These represent an increase in revenue of $367.3 million, or 9.5%; an increase in gross profit of $170.3 million, or 9.8%; and an increase in net income attributable to Copart, Inc. of $125.3 million, or 10.1%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2024 was $1.40 compared to $1.28 last year, an increase of 9.4%.

On Wednesday, September 4, 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 at www.copart.com/investorrelations. A replay of the call will be available through November 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 connect vehicle consignors 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 July 31,

 

Twelve Months Ended July 31,

 

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Service revenues and vehicle sales:

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

$

893,091

 

 

$

834,242

 

7.1

%

 

 

3,561,002

 

 

$

3,198,128

 

11.3

%

Vehicle sales

 

 

175,908

 

 

 

163,349

 

7.7

%

 

 

675,821

 

 

 

671,390

 

0.7

%

Total service revenues and vehicle sales

 

 

1,068,999

 

 

 

997,591

 

7.2

%

 

 

4,236,823

 

 

 

3,869,518

 

9.5

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Yard operations

 

 

407,044

 

 

 

348,332

 

16.9

%

 

 

1,532,484

 

 

 

1,369,006

 

11.9

%

Cost of vehicle sales

 

 

161,891

 

 

 

149,216

 

8.5

%

 

 

619,487

 

 

 

614,498

 

0.8

%

Yard depreciation and amortization

 

 

44,539

 

 

 

40,577

 

9.8

%

 

 

170,650

 

 

 

142,097

 

20.1

%

Yard stock-based compensation

 

 

1,949

 

 

 

1,888

 

3.2

%

 

 

6,950

 

 

 

6,926

 

0.3

%

Gross profit

 

 

453,576

 

 

 

457,578

 

(0.9

)%

 

 

1,907,252

 

 

 

1,736,991

 

9.8

%

General and administrative

 

 

81,377

 

 

 

55,522

 

46.6

%

 

 

287,834

 

 

 

200,294

 

43.7

%

General and administrative depreciation and amortization

 

 

6,064

 

 

 

4,058

 

49.4

%

 

 

19,111

 

 

 

17,381

 

10.0

%

General and administrative stock-based compensation

 

 

6,591

 

 

 

7,381

 

(10.7

)%

 

 

28,284

 

 

 

32,747

 

(13.6

)%

Total operating expenses

 

 

709,455

 

 

 

606,974

 

16.9

%

 

 

2,664,800

 

 

 

2,382,949

 

11.8

%

Operating income

 

 

359,544

 

 

 

390,617

 

(8.0

)%

 

 

1,572,023

 

 

 

1,486,569

 

5.7

%

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

43,494

 

 

 

29,148

 

49.2

%

 

 

145,673

 

 

 

65,928

 

121.0

%

Other income (expense), net

 

 

5,389

 

 

 

3,927

 

37.2

%

 

 

(3,095

)

 

 

1,831

 

(269.0

)%

Total other income

 

 

48,883

 

 

 

33,075

 

47.8

%

 

 

142,578

 

 

 

67,759

 

110.4

%

Income before income taxes

 

 

408,427

 

 

 

423,692

 

(3.6

)%

 

 

1,714,601

 

 

 

1,554,328

 

10.3

%

Income tax expense

 

 

86,249

 

 

 

75,907

 

13.6

%

 

 

352,254

 

 

 

316,587

 

11.3

%

Net income

 

 

322,178

 

 

 

347,785

 

(7.4

)%

 

 

1,362,347

 

 

 

1,237,741

 

10.1

%

Less: Net loss attributable to noncontrolling interest

 

 

(389

)

 

 

—

 

100

%

 

 

(673

)

 

 

—

 

100.0

%

Net income attributable to Copart, Inc.

 

$

322,567

 

 

$

347,785

 

(7.3

)%

 

$

1,363,020

 

 

$

1,237,741

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.34

 

 

$

0.36

 

(5.6

)%

 

$

1.42

 

 

$

1.30

 

9.2

%

Weighted average common shares outstanding

 

 

962,515

 

 

 

955,773

 

0.7

%

 

 

960,739

 

 

 

953,574

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.33

 

 

$

0.36

 

(8.3

)%

 

$

1.40

 

 

$

1.28

 

9.4

%

Diluted weighted average common shares outstanding

 

 

976,500

 

 

 

970,255

 

0.6

%

 

 

974,798

 

 

 

966,647

 

0.8

%

Copart, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

July 31, 2024

 

July 31, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

1,514,111

 

 

$

957,395

 

Investment in held to maturity securities

 

 

1,908,047

 

 

 

1,406,589

 

Accounts receivable, net

 

 

785,877

 

 

 

702,038

 

Vehicle pooling costs

 

 

132,638

 

 

 

123,725

 

Inventories

 

 

43,639

 

 

 

39,973

 

Income taxes receivable

 

 

—

 

 

 

6,574

 

Prepaid expenses and other assets

 

 

33,872

 

 

 

26,310

 

Total current assets

 

 

4,418,184

 

 

 

3,262,604

 

Property and equipment, net

 

 

3,175,838

 

 

 

2,844,339

 

Operating lease right-of-use assets

 

 

116,301

 

 

 

108,139

 

Intangibles, net

 

 

74,088

 

 

 

62,702

 

Goodwill

 

 

513,909

 

 

 

394,289

 

Other assets

 

 

129,444

 

 

 

65,806

 

Total assets

 

$

8,427,764

 

 

$

6,737,879

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

 

518,148

 

 

$

440,810

 

Deferred revenue

 

 

28,121

 

 

 

26,117

 

Income taxes payable

 

 

60,994

 

 

 

4,374

 

Current portion of operating and finance lease liabilities

 

 

21,304

 

 

 

21,468

 

Total current liabilities

 

 

628,567

 

 

 

492,769

 

Deferred income taxes

 

 

93,653

 

 

 

89,492

 

Income taxes payable

 

 

59,560

 

 

 

69,193

 

Operating and finance lease liabilities, net of current portion

 

 

97,429

 

 

 

88,082

 

Long-term debt and other liabilities, net of discount

 

 

—

 

 

 

10,903

 

Total liabilities

 

 

879,209

 

 

 

750,439

 

Commitments and contingencies

 

 

 

 

Redeemable non-controlling interest

 

 

24,544

 

 

 

—

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

Common stock

 

 

96

 

 

 

96

 

Additional paid-in capital

 

 

1,120,985

 

 

 

938,910

 

Accumulated other comprehensive loss

 

 

(142,972

)

 

 

(141,006

)

Retained earnings

 

 

6,545,902

 

 

 

5,189,440

 

Total stockholders’ equity

 

 

7,524,011

 

 

 

5,987,440

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

 

$

8,427,764

 

 

$

6,737,879

 

Copart, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Year Ended July 31,

 

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

Net Income

 

$

1,362,347

 

 

$

1,237,741

 

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

 

 

 

 

Depreciation and amortization, including debt cost

 

 

190,256

 

 

 

159,684

 

Allowance for credit losses

 

 

3,914

 

 

 

1,946

 

Gain on extinguishment of liabilities

 

 

(4,058

)

 

 

—

 

Equity in losses of unconsolidated affiliates

 

 

2,241

 

 

 

5,347

 

Stock-based compensation

 

 

35,234

 

 

 

39,673

 

Gain on sale of property and equipment

 

 

(2,386

)

 

 

(1,846

)

Deferred income taxes

 

 

(847

)

 

 

9,946

 

Changes in operating assets and liabilities, net of effects from acquisitions:

 

 

 

 

Accounts receivable

 

 

(145,385

)

 

 

(123,207

)

Vehicle pooling costs

 

 

(9,542

)

 

 

(10,989

)

Inventories

 

 

(3,698

)

 

 

26,549

 

Prepaid expenses and other current and non-current assets

 

 

(71,067

)

 

 

(59,949

)

Operating lease right-of-use assets and lease liabilities

 

 

1,064

 

 

 

350

 

Accounts payable and accrued liabilities

 

 

59,528

 

 

 

18,010

 

Deferred revenue

 

 

1,867

 

 

 

5,896

 

Income taxes receivable

 

 

6,561

 

 

 

33,193

 

Income taxes payable

 

 

46,535

 

 

 

21,866

 

Net cash provided by operating activities

 

 

1,472,564

 

 

 

1,364,210

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(510,990

)

 

 

(516,636

)

Cash acquired in connection with acquisition

 

 

17,662

 

 

 

—

 

Proceeds from sale of property and equipment

 

 

4,166

 

 

 

33,919

 

Investment in held to maturity securities

 

 

(4,087,162

)

 

 

(1,406,588

)

Proceeds from the sale of held to maturity securities

 

 

3,645,000

 

 

 

—

 

Acquisition of investment in unconsolidated affiliates

 

 

(8,755

)

 

 

(2,744

)

Net cash used in investing activities

 

 

(940,079

)

 

 

(1,892,049

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from the exercise of stock options

 

 

24,260

 

 

 

49,679

 

Proceeds from the issuance of Employee Stock Purchase Plan shares

 

 

12,406

 

 

 

11,098

 

Payments for employee stock-based tax withholdings

 

 

(6,558

)

 

 

(4,709

)

Issuance of principal on revolver facility

 

 

—

 

 

 

44,494

 

Principal payments on revolver facility

 

 

(10,821

)

 

 

(33,924

)

Payments of finance lease obligations

 

 

(14

)

 

 

(23

)

Net cash provided by financing activities

 

 

19,273

 

 

 

66,615

 

Effect of foreign currency translation

 

 

4,958

 

 

 

34,383

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

556,716

 

 

 

(426,841

)

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

 

$

1,514,111

 

 

$

957,395

 

Supplemental disclosure of cash flow information:

 

 

 

 

Interest paid

 

$

3,127

 

 

$

2,614

 

Income taxes paid, net of refunds

 

$

285,891

 

 

$

257,514

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904605993/en/

Copart Investor Relations investor.relations@copart.com