Business
Copart Reports First Quarter Fiscal 2024 Financial Results
DALLAS--(BUSINESS WIRE)-- Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2023. For the three months ended
About this update from Copart, Inc.
DALLAS --(BUSINESS WIRE)-- 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 [email protected] Source: Copart, Inc.