Copart Reports Second Quarter Fiscal 2024 Financial Results

About this update from Copart, Inc.

DALLAS --(BUSINESS WIRE)-- 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 View source version on businesswire.com : https://www.businesswire.com/news/home/20240222913683/en/ Brooke Boston , Executive Assistant, Office of the Chief Financial Officer [email protected] Source: Copart, Inc.

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