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

For the three months ended January 31, 2024, revenue, gross profit, and net income attributable to Copart Inc. were $1.02 billion, $464.2 million, and $325.6 million, respectively. These represent an increase in revenue of $63.4 million, or 6.6%; an increase in gross profit of $37.7 million, or 8.8%; and an increase in net income attributable to Copart Inc. of $32.0 million, or 10.9%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.33 compared to $0.30 last year, an increase of 10.0%.

For the six months ended January 31, 2024, revenue, gross profit, and net income attributable to Copart Inc. were $2.04 billion, $928.2 million, and $658.2 million, respectively. These represent an increase in revenue of $190.5 million, or 10.3%; an increase in gross profit of $132.2 million, or 16.6%; and an increase in net income attributable to Copart Inc. of $118.6 million, or 22.0%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $0.68 compared to $0.56 last year, an increase of 21.4%.

On Thursday, February 22, 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 May 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 platforms link 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

January 31,

 

Six Months Ended

January 31,

 

 

 

2024

 

 

 

2023

 

 

% Change

 

 

2024

 

 

 

2023

 

 

% Change

Service revenues and vehicle sales:

 

 

 

 

 

 

 

 

 

 

 

 

Service revenues

 

$

861,745

 

 

$

789,797

 

 

9.1

%

 

 

1,721,281

 

 

$

1,516,637

 

 

13.5

%

Vehicle sales

 

 

158,404

 

 

 

166,927

 

 

(5.1

)%

 

 

319,284

 

 

 

333,459

 

 

(4.3

)%

Total service revenues and vehicle sales

 

 

1,020,149

 

 

 

956,724

 

 

6.6

%

 

 

2,040,565

 

 

 

1,850,096

 

 

10.3

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Yard operations

 

 

366,342

 

 

 

340,085

 

 

7.7

%

 

 

734,184

 

 

 

677,057

 

 

8.4

%

Cost of vehicle sales

 

 

146,819

 

 

 

154,727

 

 

(5.1

)%

 

 

294,715

 

 

 

305,839

 

 

(3.6

)%

Yard depreciation and amortization

 

 

41,208

 

 

 

34,070

 

 

21.0

%

 

 

80,311

 

 

 

68,430

 

 

17.4

%

Yard stock-based compensation

 

 

1,628

 

 

 

1,342

 

 

21.3

%

 

 

3,184

 

 

 

2,787

 

 

14.2

%

Gross profit

 

 

464,152

 

 

 

426,500

 

 

8.8

%

 

 

928,171

 

 

 

795,983

 

 

16.6

%

General and administrative

 

 

72,657

 

 

 

47,842

 

 

51.9

%

 

 

130,288

 

 

 

92,377

 

 

41.0

%

General and administrative depreciation and amortization

 

 

4,054

 

 

 

4,344

 

 

(6.7

)%

 

 

8,115

 

 

 

9,042

 

 

(10.3

)%

General and administrative stock-based compensation

 

 

7,541

 

 

 

8,789

 

 

(14.2

)%

 

 

14,492

 

 

 

17,536

 

 

(17.4

)%

Total operating expenses

 

 

640,249

 

 

 

591,199

 

 

8.3

%

 

 

1,265,289

 

 

 

1,173,068

 

 

7.9

%

Operating income

 

 

379,900

 

 

 

365,525

 

 

3.9

%

 

 

775,276

 

 

 

677,028

 

 

14.5

%

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

33,956

 

 

 

14,480

 

 

134.5

%

 

 

65,961

 

 

 

18,902

 

 

249.0

%

Other expense, net

 

 

(3,103

)

 

 

(2,902

)

 

6.9

%

 

 

(7,175

)

 

 

(5,724

)

 

25.3

%

Total other income

 

 

30,853

 

 

 

11,578

 

 

166.5

%

 

 

58,786

 

 

 

13,178

 

 

346.1

%

Income before income taxes

 

 

410,753

 

 

 

377,103

 

 

8.9

%

 

 

834,062

 

 

 

690,206

 

 

20.8

%

Income tax expense

 

 

85,226

 

 

 

83,426

 

 

2.2

%

 

 

176,003

 

 

 

150,681

 

 

16.8

%

Net income

 

 

325,527

 

 

 

293,677

 

 

10.8

%

 

 

658,059

 

 

 

539,525

 

 

22.0

%

Less: Net income/(loss) attributable to noncontrolling interest

 

 

(108

)

 

 

—

 

 

100.0

%

 

 

(103

)

 

 

—

 

 

100.0

%

Net income attributable to Copart, Inc.

 

$

325,635

 

 

$

293,677

 

 

10.9

%

 

$

658,162

 

 

$

539,525

 

 

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.34

 

 

$

0.31

 

 

9.7

%

 

$

0.69

 

 

$

0.57

 

 

21.1

%

Weighted average common shares outstanding

 

 

960,525

 

 

 

952,752

 

 

0.8

%

 

 

959,326

 

 

 

952,474

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.33

 

 

$

0.30

 

 

10.0

%

 

$

0.68

 

 

$

0.56

 

 

21.4

%

Diluted weighted average common shares outstanding

 

 

974,589

 

 

 

965,072

 

 

1.0

%

 

 

973,135

 

 

 

964,476

 

 

0.9

%

Copart, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

January 31, 2024

 

July 31, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

1,256,948

 

 

$

957,395

 

Investment in held to maturity securities

 

 

1,411,122

 

 

 

1,406,589

 

Accounts receivable, net

 

 

846,357

 

 

 

702,038

 

Vehicle pooling costs

 

 

137,907

 

 

 

123,725

 

Inventories

 

 

42,812

 

 

 

39,973

 

Income taxes receivable

 

 

17,030

 

 

 

6,574

 

Prepaid expenses and other assets

 

 

36,310

 

 

 

26,310

 

Total current assets

 

 

3,748,486

 

 

 

3,262,604

 

Property and equipment, net

 

 

3,042,711

 

 

 

2,844,339

 

Operating lease right-of-use assets

 

 

112,838

 

 

 

108,139

 

Intangibles, net

 

 

84,049

 

 

 

62,702

 

Goodwill

 

 

510,563

 

 

 

394,289

 

Other assets

 

 

99,873

 

 

 

65,806

 

Total assets

 

$

7,598,520

 

 

$

6,737,879

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

473,856

 

 

$

440,810

 

Deferred revenue

 

 

26,204

 

 

 

26,117

 

Income taxes payable

 

 

4,740

 

 

 

4,374

 

Current portion of operating and finance lease liabilities

 

 

21,223

 

 

 

21,468

 

Total current liabilities

 

 

526,023

 

 

 

492,769

 

Deferred income taxes

 

 

94,140

 

 

 

89,492

 

Income taxes payable

 

 

71,314

 

 

 

69,193

 

Operating and finance lease liabilities, net of current portion

 

 

93,876

 

 

 

88,082

 

Long-term debt and other liabilities

 

 

453

 

 

 

10,903

 

Total liabilities

 

 

785,806

 

 

 

750,439

 

Commitments and contingencies

 

 

 

 

Redeemable non-controlling interest

 

 

25,114

 

 

 

—

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

Common stock

 

 

96

 

 

 

96

 

Additional paid-in capital

 

 

1,087,345

 

 

 

938,910

 

Accumulated other comprehensive loss

 

 

(145,279

)

 

 

(141,006

)

Retained earnings

 

 

5,845,438

 

 

 

5,189,440

 

Total stockholders' equity

 

 

6,787,600

 

 

 

5,987,440

 

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

 

$

7,598,520

 

 

$

6,737,879

 

Copart, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended January 31,

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

658,059

 

 

$

539,525

 

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

 

 

 

 

Depreciation and amortization, including debt cost

 

 

88,485

 

 

 

78,094

 

Allowance for credit loss

 

 

3,702

 

 

 

2,133

 

Equity in (earnings) losses of unconsolidated affiliates

 

 

(5,402

)

 

 

4,030

 

Stock-based compensation

 

 

17,676

 

 

 

20,323

 

Gain on sale of property and equipment

 

 

(971

)

 

 

(748

)

Deferred income taxes

 

 

(2,103

)

 

 

(3,309

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(169,508

)

 

 

(186,559

)

Vehicle pooling costs

 

 

(14,387

)

 

 

(21,268

)

Inventories

 

 

(2,994

)

 

 

8,001

 

Prepaid expenses, other current and non-current assets

 

 

(35,040

)

 

 

(29,176

)

Operating lease right-of-use assets and lease liabilities

 

 

865

 

 

 

414

 

Accounts payable, accrued liabilities and other liabilities

 

 

6,556

 

 

 

27,619

 

Deferred revenue

 

 

(13

)

 

 

3,709

 

Income taxes receivable

 

 

(10,463

)

 

 

49,430

 

Income taxes payable

 

 

2,577

 

 

 

7,615

 

Net cash provided by operating activities

 

 

537,039

 

 

 

499,833

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(285,289

)

 

 

(256,719

)

Cash acquired in connection with acquisition

 

 

17,662

 

 

 

—

 

Proceeds from sale of property and equipment

 

 

2,069

 

 

 

16,343

 

Investment in held to maturity securities

 

 

(1,411,122

)

 

 

—

 

Proceeds from the sale of held to maturity securities

 

 

1,430,000

 

 

 

—

 

Investment in unconsolidated affiliate

 

 

(1,000

)

 

 

(1,993

)

Net cash used in investing activities

 

 

(247,680

)

 

 

(242,369

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from the exercise of stock options

 

 

13,482

 

 

 

10,815

 

Proceeds from the issuance of Employee Stock Purchase Plan shares

 

 

5,961

 

 

 

5,363

 

Payments for employee stock-based tax withholdings

 

 

(2,164

)

 

 

(831

)

Principal payments on revolver facility

 

 

(10,820

)

 

 

—

 

Payments of finance lease obligations

 

 

(11

)

 

 

(13

)

Net cash provided by financing activities

 

 

6,448

 

 

 

15,334

 

Effect of foreign currency translation

 

 

3,746

 

 

 

3,918

 

Net increase in cash, cash equivalents, and restricted cash

 

 

299,553

 

 

 

276,716

 

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

 

$

1,256,948

 

 

$

1,660,952

 

Supplemental disclosure of cash flow information:

 

 

 

 

Interest paid

 

$

2,036

 

 

$

706

 

Income taxes paid, net of refunds

 

$

188,480

 

 

$

98,324