October 5, 2022

PayperJPEG

Business&Finance Specialists

Copart Reports Third Quarter Fiscal 2022 Financial Results

6 min read

DALLAS, May 18, 2022–(BUSINESS WIRE)–Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2022.

For the three months ended April 30, 2022, revenue, gross profit, and net income were $939.9 million, $436.3 million, and $278.6 million, respectively. These represent an increase in revenue of $206.0 million, or 28.1%; an increase in gross profit of $54.9 million, or 14.4%; and a decrease in net income of $(8.2) million, or (2.9)%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $1.16 compared to $1.19 last year, a decrease of (2.5)%.

For the nine months ended April 30, 2022, revenue, gross profit, and net income were $2,617.5 million, $1,224.6 million, and $826.4 million, respectively. These represent an increase in revenue of $673.7 million, or 34.7%; an increase in gross profit of $239.0 million, or 24.3%; and an increase in net income of $145.9 million, or 21.4%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $3.42 compared to $2.83 last year, an increase of 20.8%.

Excluding the impact of certain income tax benefits related to stock-based compensation and certain legal matters, non-GAAP fully diluted earnings per share for the three months ended April 30, 2022 and 2021 were $1.17, and $1.09, respectively, which was an increase of 7.3%. Excluding the impact of certain income tax benefits related to stock-based compensation, certain legal matters and discrete income tax items, non-GAAP fully diluted earnings per share for the nine months ended April 30, 2022 and 2021, were $3.34, and $2.68, respectively, which was an increase of 24.6%. A reconciliation of non-GAAP financial measures to the most directly comparable financial measures computed in accordance with U.S. generally accepted accounting principles (GAAP) can be found in the tables attached to this press release.

On Thursday, May 19, 2022, at 11 a.m. Eastern 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 August 2022 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 170 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 200 locations in 11 countries, Copart has more than 250,000 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.

Use of Non-GAAP Financial Measures

Included in this release are certain non-GAAP financial measures, including non-GAAP net income per diluted share, which exclude the impact of certain income tax benefits related to stock-based compensation, certain legal matters and discrete income tax items. These non-GAAP financial measures do not represent alternative financial measures under GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Furthermore, these non-GAAP financial measures do not reflect a comprehensive view of Copart’s operations in accordance with GAAP and should only be read in conjunction with the corresponding GAAP financial measures. This information constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission. Accordingly, Copart has presented herein, and will present in other information it publishes that contains these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Copart believes the presentation of non-GAAP net income per diluted share included in this release in conjunction with the corresponding GAAP financial measures provides meaningful information for investors, analysts and management in assessing Copart’s business trends and financial performance.

Cautionary Note About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning the potential impact of the COVID-19 pandemic on our business, operations, and operating results. 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
April 30,

Nine Months Ended
April 30,

2022

2021

% Change

2022

2021

% Change

Service revenues and vehicle sales:

Service revenues

$

766,316

$

623,846

22.8

%

$

2,145,224

$

1,671,819

28.3

%

Vehicle sales

173,625

110,064

57.7

%

472,309

272,062

73.6

%

Total service revenues and vehicle sales

939,941

733,910

28.1

%

2,617,533

1,943,881

34.7

%

Operating expenses:

Yard operations

313,365

230,794

35.8

%

878,740

646,690

35.9

%

Cost of vehicle sales

157,236

94,498

66.4

%

423,948

232,487

82.4

%

Yard depreciation and amortization

31,646

25,876

22.3

%

86,383

74,350

16.2

%

Yard stock-based compensation

1,417

1,401

1.1

%

3,813

4,746

(19.7

)%

Gross profit

436,277

381,341

14.4

%

1,224,649

985,608

24.3

%

General and administrative

50,188

39,174

28.1

%

134,057

110,326

21.5

%

General and administrative depreciation and amortization

4,933

6,090

(19.0

)%

15,269

17,957

(15.0

)%

General and administrative stock-based compensation

8,401

7,966

5.5

%

25,119

22,399

12.1

%

Total operating expenses

567,186

405,799

39.8

%

1,567,329

1,108,955

41.3

%

Operating income

372,755

328,111

13.6

%

1,050,204

834,926

25.8

%

Other expense:

Interest expense, net

(4,492

)

(5,346

)

(16.0

)%

(14,032

)

(15,227

)

(7.8

)%

Other income, net

1,342

770

74.3

%

1,314

3,103

(57.7

)%

Total other expense

(3,150

)

(4,576

)

(31.2

)%

(12,718

)

(12,124

)

4.9

%

Income before income taxes

369,605

323,535

14.2

%

1,037,486

822,802

26.1

%

Income tax expense

90,985

36,739

147.7

%

211,091

142,281

48.4

%

Net income

$

278,620

$

286,796

(2.9

)%

$

826,395

$

680,521

21.4

%

Basic net income per common share

$

1.17

$

1.21

(3.3

)%

$

3.48

$

2.88

20.8

%

Weighted average common shares outstanding

237,505

236,396

0.5

%

237,277

236,110

0.5

%

Diluted net income per common share

$

1.16

$

1.19

(2.5

)%

$

3.42

$

2.83

20.8

%

Diluted weighted average common shares outstanding

240,724

240,208

0.2

%

241,288

240,149

0.5

%

Copart, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

April 30, 2022

July 31, 2021

ASSETS

Current assets:

Cash, cash equivalents, and restricted cash

$

1,454,818

$

1,048,260

Investment in held to maturity securities

224,889

Accounts receivable, net

585,914

480,628

Vehicle pooling costs

114,028

94,449

Inventories

56,988

44,968

Income taxes receivable

1,581

20,012

Prepaid expenses and other assets

19,208

14,294

Total current assets

2,457,426

1,702,611

Property and equipment, net

2,402,809

2,296,624

Operating lease right-of-use assets

121,006

119,487

Intangibles, net

40,854

45,873

Goodwill

348,000

355,717

Other assets

73,779

41,831

Total assets

$

5,443,874

$

4,562,143

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

398,414

$

369,826

Deferred revenue

21,087

20,973

Income taxes payable

6,907

7,760

Current portion of operating and finance lease liabilities

22,687

22,472

Total current liabilities

449,095

421,031

Deferred income taxes

78,023

63,969

Income taxes payable

61,359

52,345

Operating and finance lease liabilities, net of current portion

99,610

97,961

Long-term debt and other liabilities, net of discount

402,733

397,636

Total liabilities

1,090,820

1,032,942

Commitments and contingencies

Stockholders’ equity:

Preferred stock

Common stock

24

24

Additional paid-in capital

811,900

761,834

Accumulated other comprehensive loss

(152,596

)

(100,860

)

Retained earnings

3,693,726

2,868,203

Total stockholders’ equity

4,353,054

3,529,201

Total liabilities and stockholders’ equity

$

5,443,874

$

4,562,143

Copart, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended April 30,

2022

2021

Cash flows from operating activities:

Net income

$

826,395

$

680,521

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization, including debt cost

102,333

93,141

Allowance for credit loss

1,456

(1,429

)

Equity in losses (earnings) of unconsolidated affiliates

794

(2,121

)

Stock-based compensation

28,932

27,145

Gain on sale of property and equipment

(1,280

)

(1,257

)

Deferred income taxes

14,582

(14,130

)

Changes in operating assets and liabilities:

Accounts receivable

(109,636

)

(81,593

)

Vehicle pooling costs

(20,029

)

(12,777

)

Inventories

(13,367

)

(18,788

)

Prepaid expenses, other current and non-current assets

(37,842

)

6,879

Operating lease right-of-use assets and lease liabilities

436

389

Accounts payable, accrued liabilities and other liabilities

45,745

47,914

Deferred revenue

388

8,467

Income taxes receivable

18,416

16,152

Income taxes payable

6,531

13,692

Net cash provided by operating activities

863,854

762,205

Cash flows from investing activities:

Purchases of property and equipment

(234,810

)

(364,395

)

Purchase of assets in connection with acquisitions

(493

)

Proceeds from sale of property and equipment

2,622

599

Purchase of held to maturity securities

(374,866

)

Proceeds from the sale of held to maturity securities

149,977

Net cash used in investing activities

(457,570

)

(363,796

)

Cash flows from financing activities:

Proceeds from the exercise of stock options

16,108

28,829

Proceeds from the issuance of Employee Stock Purchase Plan shares

5,026

4,880

Payments for employee stock-based tax withholdings

(872

)

(938

)

Debt offering costs

(1,212

)

Payments of finance lease obligations

(472

)

(962

)

Net cash provided by financing activities

18,578

31,809

Effect of foreign currency translation

(18,304

)

3,954

Net increase in cash, cash equivalents, and restricted cash

406,558

434,172

Cash, cash equivalents, and restricted cash at beginning of period

1,048,260

477,718

Cash, cash equivalents, and restricted cash at end of period

$

1,454,818

$

911,890

Supplemental disclosure of cash flow information:

Interest paid

$

14,485

$

14,736

Income taxes paid, net of refunds

$

195,521

$

126,303

Copart, Inc.

Additional Financial Information

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended
April 30,

Nine Months Ended
April 30,

2022

2021

2022

2021

GAAP net income

$

278,620

$

286,796

$

826,395

$

680,521

Effect of certain discrete income tax items

(19,764

)

(17,490

)

(19,764

)

Effect of certain legal matters, net of tax

5,092

5,092

Effect of recognizing tax benefit on exercise of stock-based compensation

(2,244

)

(4,910

)

(9,197

)

(18,850

)

Non-GAAP net income

$

281,468

$

262,122

$

804,800

$

641,907

GAAP net income per diluted common share

$

1.16

$

1.19

$

3.42

$

2.83

Non-GAAP net income per diluted common share

$

1.17

$

1.09

$

3.34

$

2.68

View source version on businesswire.com: https://www.businesswire.com/news/home/20220518006157/en/

Contacts

Brooke Boston, Executive Assistant, Office of the Chief Financial Officer
[email protected]

https://finance.yahoo.com/news/copart-reports-third-quarter-fiscal-221500360.html