Copart Reports First Quarter Fiscal 2024 Financial Results
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
%
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
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
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