Copart Reports Second Quarter Fiscal 2024 Financial Results

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

 

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The Copart Stock at the time of publication of the news with a fall of -3,36 % to 43,66USD on Lang & Schwarz stock exchange (22. Februar 2024, 22:25 Uhr).