Copart Reports Fourth Quarter Fiscal 2024 Financial Results

Sep 04 2024 21:30 BST

DALLAS--(BUSINESS WIRE)--Sep. 4, 2024-- 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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Copart Investor Relations
investor.relations@copart.com

Source: Copart, Inc.