CPRT - Copart Reports First Quarter Fiscal 2024 Financial Results

November, 16 2023 04:15 PM 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

Company Name:	Copart Inc.
Stock Symbol:	CPRT
Market:	NASDAQ
Website:	copart.com

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