Copart Reports Second Quarter Fiscal 2024 Financial Results
Copart, Inc. (NASDAQ: CPRT) announced strong financial results for the quarter ended January 31, 2024, with revenue reaching $1.02 billion, gross profit at $464.2 million, and net income of $325.6 million. The company saw a 6.6% revenue increase, 8.8% gross profit increase, and 10.9% net income increase compared to the same period last year.
Positive
Significant revenue growth of $63.4 million, representing a 6.6% increase year-over-year.
Gross profit increased by $37.7 million, showing an 8.8% growth compared to the previous year.
Net income attributable to Copart Inc. rose by $32.0 million, marking a 10.9% increase from the same period last year.
Fully diluted earnings per share for the quarter were $0.33, a 10.0% increase from $0.30 in the previous year.
For the six months ended January 31, 2024, Copart reported revenue of $2.04 billion, gross profit of $928.2 million, and net income of $658.2 million.
The company achieved a 10.3% revenue increase, 16.6% gross profit increase, and 22.0% net income increase compared to the same period last year.
Fully diluted earnings per share for the six months were $0.68, a 21.4% increase from $0.56 in the previous year.
The reported financial results by Copart, Inc. indicate a robust performance characterized by a consistent uptrend in revenue, gross profit and net income. The double-digit growth in net income of 10.9% and 22.0% for the quarter and six-month periods, respectively, is a strong signal of operational efficiency and market strength. This performance surpasses the typical single-digit growth rates often seen in mature industries. The earnings per share (EPS) increase of 10.0% and 21.4% for the respective periods underlines an enhanced shareholder value, which is a crucial metric for investor confidence.
One key aspect to consider is the scalability of Copart's business model, which seems to be effectively managing incremental costs, as evidenced by the higher growth rate in gross profit compared to revenue. This suggests a positive leverage effect, where the company's fixed costs are being spread over a larger revenue base, improving margins. Investors would be keen to understand the drivers behind this scalability, such as technological investments, operational efficiencies, or market expansion strategies.
The automotive salvage industry, where Copart operates, is influenced by factors such as the volume of total loss vehicles, the strength of the used vehicle market and insurance claim patterns. Copart's growth might reflect an increase in total loss frequency, possibly driven by factors like more complex and expensive vehicle repairs. Additionally, a robust used vehicle market can lead to higher demand for salvage auction services, as repairable vehicles and parts become more valuable.
It's also crucial to assess the competitive landscape. Copart's growth must be contextualized against industry peers to evaluate market share dynamics. If Copart is growing faster than the industry average, it could imply effective competitive strategies or a consolidation trend within the industry. Understanding these dynamics can help stakeholders anticipate future growth trajectories and potential market saturation points.
From an economic perspective, Copart's performance may act as an indicator of broader economic conditions. For instance, increased revenues might correlate with economic growth, leading to more vehicle purchases and, consequently, a higher incidence of vehicle accidents and insurance claims. However, it's also possible that during economic downturns, consumers and insurance companies opt for cheaper salvage parts, thus benefiting Copart's business model.
Another factor to consider is the potential impact of macroeconomic variables such as interest rates and inflation. These can affect consumer spending power and insurance rates, which in turn can influence Copart's revenue streams. The company's ability to maintain profitability amidst such economic fluctuations would be indicative of strong pricing power and operational resilience.
02/22/2024 - 04:15 PM
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
brooke.boston@copart.com
Source: Copart, Inc.
What were Copart's (CPRT) revenue figures for the quarter ended January 31, 2024?
Copart reported revenue of $1.02 billion for the quarter ended January 31, 2024.
What was the gross profit for Copart (CPRT) in the same quarter?
Copart's gross profit for the quarter ended January 31, 2024, was $464.2 million.
What was Copart's (CPRT) net income for the quarter ended January 31, 2024?
Copart's net income for the quarter ended January 31, 2024, was $325.6 million.
How much did Copart's (CPRT) revenue increase by in the reported quarter?
Copart saw a revenue increase of $63.4 million, representing a 6.6% growth year-over-year.
What was the percentage increase in Copart's (CPRT) net income for the quarter compared to the same period last year?
Copart's net income increased by 10.9% for the quarter ended January 31, 2024, compared to the same period last year.
CPRT Rankings
#404 Ranked by Stock Gains
CPRT Stock Data
Industry
Used Car Dealers
Sector
Retail Trade
Tags
Commercial Services, Miscellaneous Commercial Services, Retail Trade, Used Car Dealers
Country
US
City
Dallas
About CPRT
copart, founded in 1982, connects buyers and sellers around the world. copart remarkets salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and end users through internet sales utilizing its vb3 technology. copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet owners, car dealerships, cars sourced from the general public and others. the company currently operates in the united states and canada (www.copart.com), the united kingdom (www.copart.co.uk), brazil (www.copart.com.br), germany (www.copart.de), the united arab emirates (www.copart.ae) and spain (www.autoresiduos.com). copart links sellers to more than 750,000 members in over 150 countries through our multi-channel online platform. copart has a diverse and extensive inventory of nearly 100,000 vehicles each day including early and late model cars, classics, trucks, suvs, motorcycles, boats, jetskis, snowmobiles and rvs. vehicles conditions range from damaged cars