Copart Reports First Quarter Fiscal 2025 Financial Results

November 21, 2024 at 16:15 PM EST

Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2024.

For the three months ended October 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.15 billion, $512.1 million, and $362.1 million, respectively. These represent an increase in revenue of $126.4 million, or 12.4%; an increase in gross profit of $48.1 million, or 10.4%; and an increase in net income attributable to Copart, Inc. of $29.6 million, or 8.9%, respectively, from the same period last year. Fully diluted earnings per share for three months ended October 31, 2024 was $0.37 compared to $0.34 last year, an increase of 8.8%.

On Thursday, November 21, 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 February 2025 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 October 31,
	2024			2023			% Change
Service revenues and vehicle sales:
Service revenues	$	986,336		$	859,536		14.8	%
Vehicle sales		160,493			160,880		(0.2	)%
Total service revenues and vehicle sales		1,146,829			1,020,416		12.4	%
Operating expenses:
Facility operations		447,245			367,842		21.6	%
Cost of vehicle sales		138,178			147,896		(6.6	)%
Facility depreciation and amortization		47,477			39,103		21.4	%
Facility stock-based compensation		1,824			1,556		17.2	%
Gross profit		512,105			464,019		10.4	%
General and administrative		90,997			57,631		57.9	%
General and administrative depreciation and amortization		6,150			4,061		51.4	%
General and administrative stock-based compensation		8,591			6,951		23.6	%
Total operating expenses		740,462			625,040		18.5	%
Operating income		406,367			395,376		2.8	%
Other income (expense):
Interest income, net		45,547			32,005		42.3	%
Other (expense), net		(596	)		(4,072	)	(85.4	)%
Total other income		44,951			27,933		60.9	%
Income before income taxes		451,318			423,309		6.6	%
Income tax expense		90,142			90,777		(0.7	)%
Net income		361,176			332,532		8.6	%
Less: Net (loss) income attributable to noncontrolling interest		(910	)		5		(18,300.0	)%
Net income attributable to Copart, Inc.	$	362,086		$	332,527		8.9	%

Basic net income per common share	$	0.38		$	0.35		8.6	%
Weighted average common shares outstanding		963,176			958,127		0.5	%

Diluted net income per common share	$	0.37		$	0.34		8.8	%
Diluted weighted average common shares outstanding		976,506			971,682		0.5	%

Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)

	October 31, 2024			July 31, 2024
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	3,698,118		$	1,514,111
Investment in held to maturity securities		—			1,908,047
Accounts receivable, net		801,840			785,877
Vehicle pooling costs		147,792			132,638
Inventories		52,401			43,639
Prepaid expenses and other assets		32,966			33,872
Total current assets		4,733,117			4,418,184
Property and equipment, net		3,363,155			3,175,838
Operating lease right-of-use assets		113,557			116,301
Intangibles, net		72,512			74,088
Goodwill		514,483			513,909
Other assets		72,663			129,444
Total assets	$	8,869,487		$	8,427,764

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	582,215		$	518,148
Deferred revenue		25,576			28,121
Income taxes payable		85,628			60,994
Current portion of operating and finance lease liabilities		21,436			21,304
Total current liabilities		714,855			628,567
Deferred income taxes		95,465			93,653
Income taxes payable		43,786			59,560
Operating and finance lease liabilities, net of current portion		95,435			97,429
Total liabilities		949,541			879,209
Commitments and contingencies
Redeemable non-controlling interest		23,634			24,544
Stockholders' equity:
Preferred stock		—			—
Common stock		96			96
Additional paid-in capital		1,133,687			1,120,985
Accumulated other comprehensive loss		(144,739	)		(142,972	)
Retained earnings		6,907,268			6,545,902
Total stockholders' equity		7,896,312			7,524,011
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	8,869,487		$	8,427,764

Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three Months Ended October 31,
	2024			2023
Cash flows from operating activities:
Net income	$	361,176		$	332,532
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost		54,862			43,350
Allowance for credit loss		1,094			1,049
Equity in losses of unconsolidated affiliates		(20	)		(4,764	)
Stock-based compensation		10,415			8,317
Gain on sale of property and equipment		(133	)		(1,050	)
Deferred income taxes		1,740			(988	)
Changes in operating assets and liabilities:
Accounts receivable		(49,093	)		(77,086	)
Vehicle pooling costs		(15,218	)		(4,377	)
Inventories		(8,652	)		(3,669	)
Prepaid expenses, other current and non-current assets		59,026			(40,543	)
Operating lease right-of-use assets and lease liabilities		883			366
Accounts payable, accrued liabilities and other liabilities		59,826			38,153
Deferred revenue		(2,564	)		1,101
Income taxes receivable		1			6,135
Income taxes payable		8,931			76,720
Net cash provided by operating activities		482,274			375,246

Cash flows from investing activities:
Purchases of property and equipment		(236,758	)		(162,260	)
Purchase of assets and liabilities in connection with acquisitions		(1,257	)		17,662
Proceeds from sale of property and equipment		243			924
Proceeds from the sale of held to maturity securities		1,940,000			1,380,000
Investment in unconsolidated affiliate		—			(1,001	)
Net cash provided by investing activities		1,702,228			1,235,325

Cash flows from financing activities:
Proceeds from the exercise of stock options		2,857			8,123
Payments for employee stock-based tax withholdings		(720	)		(711	)
Payments of finance lease obligations		—			(5	)
Net cash provided by financing activities		2,137			7,407
Effect of foreign currency translation		(2,632	)		6,194
Net increase in cash, cash equivalents, and restricted cash		2,184,007			1,624,172
Cash, cash equivalents, and restricted cash at beginning of period		1,514,111			957,395
Cash, cash equivalents, and restricted cash at end of period	$	3,698,118		$	2,581,567
Supplemental disclosure of cash flow information:
Interest paid	$	10		$	96
Income taxes paid, net of refunds	$	80,826		$	9,066

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Copart Investor Relations

investor.relations@copart.com

Copart Reports First Quarter Fiscal 2025 Financial Results

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