TechDogs-"Copart Reports First Quarter Fiscal 2024 Financial Results"

E-Commerce

Copart Reports First Quarter Fiscal 2024 Financial Results

By Business Wire

Business Wire
Overall Rating

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


Contacts

Brooke Boston, Executive Assistant, Office of the Chief Financial Officer
brooke.boston@copart.com

First published on Fri, Nov 17, 2023

Enjoyed what you've read so far? Great news - there's more to explore!

Stay up to date with the latest news, a vast collection of tech articles including introductory guides, product reviews, trends and more, thought-provoking interviews, hottest AI blogs and entertaining tech memes.

Plus, get access to branded insights such as informative white papers, intriguing case studies, in-depth reports, enlightening videos and exciting events and webinars from industry-leading global brands.

Dive into TechDogs' treasure trove today and Know Your World of technology!

Disclaimer - Reference to any specific product, software or entity does not constitute an endorsement or recommendation by TechDogs nor should any data or content published be relied upon. The views expressed by TechDogs’ members and guests are their own and their appearance on our site does not imply an endorsement of them or any entity they represent. Views and opinions expressed by TechDogs’ Authors are those of the Authors and do not necessarily reflect the view of TechDogs or any of its officials. All information / content found on TechDogs’ site may not necessarily be reviewed by individuals with the expertise to validate its completeness, accuracy and reliability.

Tags:

Copart Inc Online Vehicle Auctions Online Auction Platform

References:

Join The Discussion

  • Dark
  • Light