Copart Reports First Quarter Fiscal 2022 Financial Results
Copart, Inc. (NASDAQ: CPRT) reported robust financial results for the quarter ended October 31, 2021. Revenue surged to $810.1 million, a 36.6% increase year-over-year, and gross profit rose to $385.0 million, reflecting a 29.7% jump. Net income reached $260.4 million, up 30.0%. Fully diluted earnings per share climbed to $1.08, a 30.1% increase from last year. Non-GAAP earnings per share improved 35.4% to $1.07 after adjusting for stock-based compensation. Copart will host a conference call on November 18, 2021, to discuss these results.
- Revenue increased by $217.2 million, or 36.6%
- Gross profit rose by $88.3 million, or 29.7%
- Net income grew by $60.1 million, or 30.0%
- Fully diluted EPS improved to $1.08, a 30.1% increase
- Non-GAAP EPS up by 35.4% to $1.07
- None.
For the three months ended
Excluding the impact of certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the three months ended
On
About Copart
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. 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
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
Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) |
|||||||||||
|
|
Three Months Ended
|
|||||||||
|
|
2021 |
|
2020 |
|
% Change |
|||||
Service revenues and vehicle sales: |
|
|
|
|
|
|
|||||
Service revenues |
|
$ |
667,818 |
|
|
$ |
515,372 |
|
|
29.6 |
% |
Vehicle sales |
|
142,314 |
|
|
77,568 |
|
|
83.5 |
% |
||
Total service revenues and vehicle sales |
|
810,132 |
|
|
592,940 |
|
|
36.6 |
% |
||
Operating expenses: |
|
|
|
|
|
|
|||||
Yard operations |
|
271,276 |
|
|
206,986 |
|
|
31.1 |
% |
||
Cost of vehicle sales |
|
126,408 |
|
|
64,360 |
|
|
96.4 |
% |
||
Yard depreciation and amortization |
|
26,437 |
|
|
23,294 |
|
|
13.5 |
% |
||
Yard stock-based compensation |
|
981 |
|
|
1,531 |
|
|
(35.9) |
% |
||
Gross profit |
|
385,030 |
|
|
296,769 |
|
|
29.7 |
% |
||
General and administrative |
|
41,115 |
|
|
35,138 |
|
|
17.0 |
% |
||
General and administrative depreciation and amortization |
|
5,323 |
|
|
5,655 |
|
|
(5.9) |
% |
||
General and administrative stock-based compensation |
|
8,471 |
|
|
7,382 |
|
|
14.8 |
% |
||
Total operating expenses |
|
480,011 |
|
|
344,346 |
|
|
39.4 |
% |
||
Operating income |
|
330,121 |
|
|
248,594 |
|
|
32.8 |
% |
||
Other expense: |
|
|
|
|
|
|
|||||
Interest expense, net |
|
(5,107) |
|
|
(5,032) |
|
|
1.5 |
% |
||
Other income, net |
|
812 |
|
|
3,253 |
|
|
(75.0) |
% |
||
Total other expense |
|
(4,295) |
|
|
(1,779) |
|
|
141.4 |
% |
||
Income before income taxes |
|
325,826 |
|
|
246,815 |
|
|
32.0 |
% |
||
Income tax expense |
|
65,463 |
|
|
46,530 |
|
|
40.7 |
% |
||
Net income |
|
$ |
260,363 |
|
|
$ |
200,285 |
|
|
30.0 |
% |
|
|
|
|
|
|
|
|||||
Basic net income per common share |
|
$ |
1.10 |
|
|
$ |
0.85 |
|
|
29.4 |
% |
Weighted average common shares outstanding |
|
237,068 |
|
|
235,791 |
|
|
0.5 |
% |
||
|
|
|
|
|
|
|
|||||
Diluted net income per common share |
|
$ |
1.08 |
|
|
$ |
0.83 |
|
|
30.1 |
% |
Diluted weighted average common shares outstanding |
|
241,221 |
|
|
239,968 |
|
|
0.5 |
% |
Consolidated Balance Sheets (In thousands) (Unaudited) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash, cash equivalents, and restricted cash |
|
$ |
1,298,373 |
|
|
$ |
1,048,260 |
|
Accounts receivable, net |
|
562,637 |
|
|
480,628 |
|
||
Vehicle pooling costs |
|
115,994 |
|
|
94,449 |
|
||
Inventories |
|
48,194 |
|
|
44,968 |
|
||
Income taxes receivable |
|
537 |
|
|
20,012 |
|
||
Prepaid expenses and other assets |
|
14,045 |
|
|
14,294 |
|
||
Total current assets |
|
2,039,780 |
|
|
1,702,611 |
|
||
Property and equipment, net |
|
2,318,701 |
|
|
2,296,624 |
|
||
Operating lease right-of-use assets |
|
123,254 |
|
|
119,487 |
|
||
Intangibles, net |
|
43,914 |
|
|
45,873 |
|
||
|
|
354,062 |
|
|
355,717 |
|
||
Other assets |
|
39,141 |
|
|
41,831 |
|
||
Total assets |
|
$ |
4,918,852 |
|
|
$ |
4,562,143 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
411,249 |
|
|
$ |
369,826 |
|
Deferred revenue |
|
19,951 |
|
|
20,973 |
|
||
Income taxes payable |
|
37,175 |
|
|
7,760 |
|
||
Current portion of operating and finance lease liabilities |
|
23,536 |
|
|
22,472 |
|
||
Total current liabilities |
|
491,911 |
|
|
421,031 |
|
||
Deferred income taxes |
|
72,166 |
|
|
63,969 |
|
||
Income taxes payable |
|
51,094 |
|
|
52,345 |
|
||
Operating and finance lease liabilities, net of current portion |
|
100,920 |
|
|
97,961 |
|
||
Long-term debt and other liabilities, net of discount |
|
408,940 |
|
|
397,636 |
|
||
Total liabilities |
|
1,125,031 |
|
|
1,032,942 |
|
||
Commitments and contingencies |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Preferred stock |
|
— |
|
|
— |
|
||
Common stock |
|
24 |
|
|
24 |
|
||
Additional paid-in capital |
|
776,858 |
|
|
761,834 |
|
||
Accumulated other comprehensive loss |
|
(111,378) |
|
|
(100,860) |
|
||
Retained earnings |
|
3,128,317 |
|
|
2,868,203 |
|
||
Total stockholders' equity |
|
3,793,821 |
|
|
3,529,201 |
|
||
Total liabilities and stockholders' equity |
|
$ |
4,918,852 |
|
|
$ |
4,562,143 |
|
Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
260,363 |
|
|
$ |
200,285 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization, including debt cost |
|
32,049 |
|
|
29,227 |
|
||
Allowance for credit loss |
|
295 |
|
|
(157) |
|
||
Equity in losses (earnings) of unconsolidated affiliates |
|
168 |
|
|
(1,741) |
|
||
Stock-based compensation |
|
9,452 |
|
|
8,913 |
|
||
Gain on sale of property and equipment |
|
(440) |
|
|
(1,230) |
|
||
Deferred income taxes |
|
8,319 |
|
|
6,239 |
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
(82,676) |
|
|
(57,860) |
|
||
Vehicle pooling costs |
|
(21,697) |
|
|
(10,600) |
|
||
Inventories |
|
(3,463) |
|
|
(8,259) |
|
||
Prepaid expenses and other current and non-current assets |
|
3,071 |
|
|
15,236 |
|
||
Operating lease right-of-use assets and lease liabilities |
|
382 |
|
|
153 |
|
||
Accounts payable and accrued liabilities |
|
62,013 |
|
|
42,880 |
|
||
Deferred revenue |
|
(979) |
|
|
1,251 |
|
||
Income taxes receivable |
|
19,479 |
|
|
25,825 |
|
||
Income taxes payable |
|
26,204 |
|
|
8,371 |
|
||
Net cash provided by operating activities |
|
312,540 |
|
|
258,533 |
|
||
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
(64,696) |
|
|
(147,093) |
|
||
Proceeds from sale of property and equipment |
|
813 |
|
|
271 |
|
||
Net cash used in investing activities |
|
(63,883) |
|
|
(146,822) |
|
||
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from the exercise of stock options |
|
5,572 |
|
|
20,014 |
|
||
Payments for employee stock-based tax withholdings |
|
(249) |
|
|
(489) |
|
||
Payments of finance lease obligations |
|
(157) |
|
|
(327) |
|
||
Net cash provided by financing activities |
|
5,166 |
|
|
19,198 |
|
||
Effect of foreign currency translation |
|
(3,710) |
|
|
(2,895) |
|
||
Net increase in cash, cash equivalents, and restricted cash |
|
250,113 |
|
|
128,014 |
|
||
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 |
|
$ |
1,298,373 |
|
|
$ |
605,732 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
||||
Interest paid |
|
$ |
5,080 |
|
|
$ |
4,762 |
|
Income taxes paid, net of refunds |
|
$ |
10,089 |
|
|
$ |
6,157 |
|
Additional Financial Information Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2021 |
|
2020 |
||||
GAAP net income |
|
$ |
260,363 |
|
|
$ |
200,285 |
|
Effect of recognizing tax benefit on exercise of stock-based compensation |
|
(2,987) |
|
|
(11,773) |
|
||
Non-GAAP net income |
|
$ |
257,376 |
|
|
$ |
188,512 |
|
|
|
|
|
|
||||
GAAP net income per diluted common share |
|
$ |
1.08 |
|
|
$ |
0.83 |
|
Non-GAAP net income per diluted common share |
|
$ |
1.07 |
|
|
$ |
0.79 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211117006342/en/
972-391-5090 or melissa.hunter@copart.com
Source:
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