Copart Reports Third Quarter Fiscal 2024 Financial Results

DALLAS, May 16, 2024--(BUSINESS WIRE)--Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2024.

For the three months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.13 billion, $525.5 million, and $382.3 million, respectively. These represent an increase in revenue of $105.4 million, or 10.3%; an increase in gross profit of $42.1 million, or 8.7%; and an increase in net income attributable to Copart, Inc. of $31.9 million, or 9.1%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.39 compared to $0.36 last year, an increase of 8.3%.

For the nine months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $3.17 billion, $1.5 billion, and $1.0 billion, respectively. These represent an increase in revenue of $295.9 million, or 10.3%; an increase in gross profit of $174.3 million, or 13.6%; and an increase in net income attributable to Copart, Inc. of $150.5 million, or 16.9%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $1.07 compared to $0.92 last year, an increase of 16.3%.

On Thursday, May 16, 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 September 2024 by visiting www.copart.com/investorrelations.

About Copart

Founded in 1982, Copart is a global leader in online vehicle auctions. Copart's innovative technology and online auction platforms connect vehicle consigners to approximately 1 million members in over 185 countries. Copart offers remarketing services to process and sell vehicles to insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals, and offers vehicles via auction to dealers, dismantlers, rebuilders, exporters, and the general public. With operations at over 250 locations in 11 countries, Copart sold more than 4 million units in the last year. 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 April 30,										Nine Months Ended April 30,
			2024				2023		% Change				2024				2023			% Change
Service revenues and vehicle sales:
Service revenues		$	946,630			$	847,249		11.7	%		$	2,667,911			$	2,363,886			12.9	%
Vehicle sales			180,629				174,582		3.5	%			499,913				508,041			(1.6	)%
Total service revenues and vehicle sales			1,127,259				1,021,831		10.3	%			3,167,824				2,871,927			10.3	%
Operating expenses:
Yard operations			391,256				343,617		13.9	%			1,125,440				1,020,674			10.3	%
Cost of vehicle sales			162,881				159,443		2.2	%			457,596				465,282			(1.7	)%
Yard depreciation and amortization			45,800				33,090		38.4	%			126,111				101,520			24.2	%
Yard stock-based compensation			1,817				2,251		(19.3	)%			5,001				5,038			(0.7	)%
Gross profit			525,505				483,430		8.7	%			1,453,676				1,279,413			13.6	%
General and administrative			76,169				52,395		45.4	%			206,457				144,772			42.6	%
General and administrative depreciation and amortization			4,932				4,281		15.2	%			13,047				13,323			(2.1	)%
General and administrative stock-based compensation			7,201				7,830		(8.0	)%			21,693				25,366			(14.5	)%
Total operating expenses			690,056				602,907		14.5	%			1,955,345				1,775,975			10.1	%
Operating income			437,203				418,924		4.4	%			1,212,479				1,095,952			10.6	%
Other income (expense):
Interest income, net			36,218				17,878		102.6	%			102,179				36,780			177.8	%
Other (expense) income, net			(1,309	)			3,628		(136.1	)%			(8,484	)			(2,096	)		304.8	%
Total other income			34,909				21,506		62.3	%			93,695				34,684			170.1	%
Income before income taxes			472,112				440,430		7.2	%			1,306,174				1,130,636			15.5	%
Income tax expense			90,002				89,999		—	%			266,005				240,680			10.5	%
Net income			382,110				350,431		9.0	%			1,040,169				889,956			16.9	%
Less: Net loss attributable to noncontrolling interest			(181	)			—		100.0	%			(284	)			—			100.0	%
Net income attributable to Copart, Inc.		$	382,291			$	350,431		9.1	%		$	1,040,453			$	889,956			16.9	%
Basic net income per common share		$	0.40			$	0.37		8.1	%		$	1.08			$	0.93			16.1	%
Weighted average common shares outstanding			961,813				953,574		0.9	%			960,143				952,834			0.8	%
Diluted net income per common share		$	0.39			$	0.36		8.3	%		$	1.07			$	0.92			16.3	%
Diluted weighted average common shares outstanding			976,445				967,380		0.9	%			974,226				965,436			0.9	%

Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)
		April 30, 2024				July 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash		$	1,089,995			$	957,395
Investment in held to maturity securities			2,000,334				1,406,589
Accounts receivable, net			822,650				702,038
Vehicle pooling costs			125,001				123,725
Inventories			46,764				39,973
Income taxes receivable			23,402				6,574
Prepaid expenses and other assets			40,983				26,310
Total current assets			4,149,129				3,262,604
Property and equipment, net			3,073,090				2,844,339
Operating lease right-of-use assets			108,859				108,139
Intangibles, net			76,786				62,702
Goodwill			511,372				394,289
Other assets			91,396				65,806
Total assets		$	8,010,632			$	6,737,879
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	506,795			$	440,810
Deferred revenue			28,761				26,117
Income taxes payable			7,388				4,374
Current portion of operating and finance lease liabilities			20,475				21,468
Total current liabilities			563,419				492,769
Deferred income taxes			92,014				89,492
Income taxes payable			67,455				69,193
Operating and finance lease liabilities, net of current portion			91,131				88,082
Long-term debt and other liabilities			427				10,903
Total liabilities			814,446				750,439
Commitments and contingencies
Redeemable non-controlling interest			24,933				—
Stockholders' equity:
Preferred stock			—				—
Common stock			96				96
Additional paid-in capital			1,102,684				938,910
Accumulated other comprehensive loss			(156,807	)			(141,006	)
Retained earnings			6,225,280				5,189,440
Total stockholders' equity			7,171,253				5,987,440
Total liabilities, redeemable noncontrolling interests and stockholders’ equity		$	8,010,632			$	6,737,879

Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Nine Months Ended April 30,
			2024				2023
Cash flows from operating activities:
Net income		$	1,040,169			$	889,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost			139,178				115,320
Allowance for credit loss			2,513				1,480
Equity in losses of unconsolidated affiliates			2,580				5,446
Stock-based compensation			26,694				30,404
Gain on sale of property and equipment			(2,169	)			(965	)
Deferred income taxes			(3,093	)			(3,236	)
Changes in operating assets and liabilities:
Accounts receivable			(152,564	)			(115,098	)
Vehicle pooling costs			(1,784	)			(7,300	)
Inventories			(7,316	)			14,870
Prepaid expenses, other current and non-current assets			(39,815	)			(33,830	)
Operating lease right-of-use assets and lease liabilities			1,377				595
Accounts payable, accrued liabilities and other liabilities			40,305				30,314
Deferred revenue			2,660				5,516
Income taxes receivable			(16,846	)			49,430
Income taxes payable			1,454				22,731
Net cash provided by operating activities			1,033,343				1,005,633
Cash flows from investing activities:
Purchases of property and equipment			(373,104	)			(346,524	)
Cash acquired in connection with acquisition			17,662				—
Proceeds from sale of property and equipment			3,453				20,509
Investment in held to maturity securities			(2,478,505	)			—
Proceeds from the sale of held to maturity securities			1,915,000				—
Investment in unconsolidated affiliate			(1,000	)			(2,744	)
Net cash used in investing activities			(916,494	)			(328,759	)
Cash flows from financing activities:
Proceeds from the exercise of stock options			20,377				27,220
Proceeds from the issuance of Employee Stock Purchase Plan shares			5,957				5,363
Payments for employee stock-based tax withholdings			(4,613	)			(3,026	)
Issuance of principal on revolver facility			—				21,481
Principal payments on revolver facility			(10,818	)			—
Payments of finance lease obligations			(14	)			(18	)
Net cash provided by financing activities			10,889				51,020
Effect of foreign currency translation			4,862				2,053
Net increase in cash, cash equivalents, and restricted cash			132,600				729,947
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		$	1,089,995			$	2,114,183
Supplemental disclosure of cash flow information:
Interest paid		$	1,946			$	1,586
Income taxes paid, net of refunds		$	255,268			$	171,438

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Contacts

Copart Investor Relations
investor.relations@copart.com