CPRT
Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2024.
For the three months ended July 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.1 billion, $454 million, and $323 million, respectively. These represent an increase in revenue of $71.4 million, or 7.2%; a decrease in gross profit of $(4.0) million, or (0.9)%; and a decrease in net income attributable to Copart, Inc. of $(25.2) million, or (7.3)%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2024 was $0.33 compared to $0.36 last year, a decrease of (8.3)%.
For the year ended July 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $4.2 billion, $1.9 billion, and $1.4 billion, respectively. These represent an increase in revenue of $367.3 million, or 9.5%; an increase in gross profit of $170.3 million, or 9.8%; and an increase in net income attributable to Copart, Inc. of $125.3 million, or 10.1%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2024 was $1.40 compared to $1.28 last year, an increase of 9.4%.
On Wednesday, September 4, 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 at www.copart.com/investorrelations. A replay of the call will be available through November 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 connect vehicle consignors 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 July 31,
Twelve Months Ended July 31,
2024
2023
% Change
2024
2023
% Change
Service revenues and vehicle sales:
Service revenues
$
893,091
$
834,242
7.1
%
3,561,002
$
3,198,128
11.3
%
Vehicle sales
175,908
163,349
7.7
%
675,821
671,390
0.7
%
Total service revenues and vehicle sales
1,068,999
997,591
7.2
%
4,236,823
3,869,518
9.5
%
Operating expenses:
Yard operations
407,044
348,332
16.9
%
1,532,484
1,369,006
11.9
%
Cost of vehicle sales
161,891
149,216
8.5
%
619,487
614,498
0.8
%
Yard depreciation and amortization
44,539
40,577
9.8
%
170,650
142,097
20.1
%
Yard stock-based compensation
1,949
1,888
3.2
%
6,950
6,926
0.3
%
Gross profit
453,576
457,578
(0.9
)%
1,907,252
1,736,991
9.8
%
General and administrative
81,377
55,522
46.6
%
287,834
200,294
43.7
%
General and administrative depreciation and amortization
6,064
4,058
49.4
%
19,111
17,381
10.0
%
General and administrative stock-based compensation
6,591
7,381
(10.7
)%
28,284
32,747
(13.6
)%
Total operating expenses
709,455
606,974
16.9
%
2,664,800
2,382,949
11.8
%
Operating income
359,544
390,617
(8.0
)%
1,572,023
1,486,569
5.7
%
Other income (expense):
Interest income (expense), net
43,494
29,148
49.2
%
145,673
65,928
121.0
%
Other income (expense), net
5,389
3,927
37.2
%
(3,095
)
1,831
(269.0
)%
Total other income
48,883
33,075
47.8
%
142,578
67,759
110.4
%
Income before income taxes
408,427
423,692
(3.6
)%
1,714,601
1,554,328
10.3
%
Income tax expense
86,249
75,907
13.6
%
352,254
316,587
11.3
%
Net income
322,178
347,785
(7.4
)%
1,362,347
1,237,741
10.1
%
Less: Net loss attributable to noncontrolling interest
(389
)
—
100
%
(673
)
—
100.0
%
Net income attributable to Copart, Inc.
$
322,567
$
347,785
(7.3
)%
$
1,363,020
$
1,237,741
10.1
%
Basic net income per common share
$
0.34
$
0.36
(5.6
)%
$
1.42
$
1.30
9.2
%
Weighted average common shares outstanding
962,515
955,773
0.7
%
960,739
953,574
0.8
%
Diluted net income per common share
$
0.33
$
0.36
(8.3
)%
$
1.40
$
1.28
9.4
%
Diluted weighted average common shares outstanding
976,500
970,255
0.6
%
974,798
966,647
0.8
%
Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
July 31, 2024
July 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash
$
1,514,111
$
957,395
Investment in held to maturity securities
1,908,047
1,406,589
Accounts receivable, net
785,877
702,038
Vehicle pooling costs
132,638
123,725
Inventories
43,639
39,973
Income taxes receivable
—
6,574
Prepaid expenses and other assets
33,872
26,310
Total current assets
4,418,184
3,262,604
Property and equipment, net
3,175,838
2,844,339
Operating lease right-of-use assets
116,301
108,139
Intangibles, net
74,088
62,702
Goodwill
513,909
394,289
Other assets
129,444
65,806
Total assets
$
8,427,764
$
6,737,879
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
518,148
$
440,810
Deferred revenue
28,121
26,117
Income taxes payable
60,994
4,374
Current portion of operating and finance lease liabilities
21,304
21,468
Total current liabilities
628,567
492,769
Deferred income taxes
93,653
89,492
Income taxes payable
59,560
69,193
Operating and finance lease liabilities, net of current portion
97,429
88,082
Long-term debt and other liabilities, net of discount
—
10,903
Total liabilities
879,209
750,439
Commitments and contingencies
Redeemable non-controlling interest
24,544
—
Stockholders’ equity:
Preferred stock
—
—
Common stock
96
96
Additional paid-in capital
1,120,985
938,910
Accumulated other comprehensive loss
(142,972
)
(141,006
)
Retained earnings
6,545,902
5,189,440
Total stockholders’ equity
7,524,011
5,987,440
Total liabilities, redeemable noncontrolling interests and stockholders’ equity
$
8,427,764
$
6,737,879
Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended July 31,
2024
2023
Cash flows from operating activities:
Net Income
$
1,362,347
$
1,237,741
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost
190,256
159,684
Allowance for credit losses
3,914
1,946
Gain on extinguishment of liabilities
(4,058
)
—
Equity in losses of unconsolidated affiliates
2,241
5,347
Stock-based compensation
35,234
39,673
Gain on sale of property and equipment
(2,386
)
(1,846
)
Deferred income taxes
(847
)
9,946
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable
(145,385
)
(123,207
)
Vehicle pooling costs
(9,542
)
(10,989
)
Inventories
(3,698
)
26,549
Prepaid expenses and other current and non-current assets
(71,067
)
(59,949
)
Operating lease right-of-use assets and lease liabilities
1,064
350
Accounts payable and accrued liabilities
59,528
18,010
Deferred revenue
1,867
5,896
Income taxes receivable
6,561
33,193
Income taxes payable
46,535
21,866
Net cash provided by operating activities
1,472,564
1,364,210
Cash flows from investing activities:
Purchases of property and equipment
(510,990
)
(516,636
)
Cash acquired in connection with acquisition
17,662
—
Proceeds from sale of property and equipment
4,166
33,919
Investment in held to maturity securities
(4,087,162
)
(1,406,588
)
Proceeds from the sale of held to maturity securities
3,645,000
—
Acquisition of investment in unconsolidated affiliates
(8,755
)
(2,744
)
Net cash used in investing activities
(940,079
)
(1,892,049
)
Cash flows from financing activities:
Proceeds from the exercise of stock options
24,260
49,679
Proceeds from the issuance of Employee Stock Purchase Plan shares
12,406
11,098
Payments for employee stock-based tax withholdings
(6,558
)
(4,709
)
Issuance of principal on revolver facility
—
44,494
Principal payments on revolver facility
(10,821
)
(33,924
)
Payments of finance lease obligations
(14
)
(23
)
Net cash provided by financing activities
19,273
66,615
Effect of foreign currency translation
4,958
34,383
Net increase (decrease) in cash, cash equivalents, and restricted cash
556,716
(426,841
)
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
$
1,514,111
$
957,395
Supplemental disclosure of cash flow information:
Interest paid
$
3,127
$
2,614
Income taxes paid, net of refunds
$
285,891
$
257,514
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