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	%
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

 

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The Copart Stock at the time of publication of the news with a raise of +0,17 % to 45,48EUR on Lang & Schwarz stock exchange (16. November 2023, 22:18 Uhr).