Copart Reports First Quarter Fiscal 2025 Financial Results

Rhea-AI Summary

Copart (NASDAQ: CPRT) reported strong financial results for Q1 FY2025 ended October 31, 2024. The company achieved revenue of $1.15 billion, up 12.4% year-over-year, with a gross profit of $512.1 million, increasing 10.4%. Net income rose 8.9% to $362.1 million, while fully diluted earnings per share reached $0.37, up 8.8% from $0.34 in the previous year.

Positive

• Revenue increased 12.4% YoY to $1.15 billion
• Gross profit grew 10.4% to $512.1 million
• Net income rose 8.9% to $362.1 million
• EPS increased 8.8% to $0.37

Negative

• Profit margin growth lagged behind revenue growth, indicating some margin pressure

Insights

Financial Analyst

Copart's Q1 FY2025 results demonstrate solid growth across key metrics. Revenue reached $1.15 billion, marking a 12.4% year-over-year increase, while gross profit grew by 10.4% to $512.1 million. Net income rose 8.9% to $362.1 million, with EPS climbing to $0.37.

The expanding profit margins and consistent growth trajectory reflect Copart's strong market position in the vehicle remarketing industry. However, the slight compression in profit margin growth rates compared to revenue growth suggests increasing operational costs. The company's ability to maintain double-digit revenue growth while improving bottom-line metrics indicates effective scale management and pricing power in their core auction business.

Market Research Analyst

The automotive remarketing sector continues to benefit from elevated used vehicle prices and increased accident rates post-pandemic. Copart's 12.4% revenue growth outpaces industry averages, suggesting market share gains. The company's digital auction platform and expanding global footprint position it well to capitalize on the ongoing shift toward online vehicle transactions.

The 8.8% EPS growth, while positive, indicates some margin pressure that bears watching. However, the company's consistent profitability and cash flow generation capabilities remain strong fundamentals for long-term investors.

DALLAS--(BUSINESS WIRE)-- 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

Source: Copart, Inc.

FAQ

What was Copart's revenue growth in Q1 2025?

Copart's revenue grew by 12.4% year-over-year to $1.15 billion in Q1 FY2025.

How much did Copart's earnings per share (CPRT) increase in Q1 2025?

Copart's fully diluted earnings per share increased by 8.8% to $0.37 compared to $0.34 in the same period last year.

What was Copart's net income for Q1 fiscal 2025?

Copart reported a net income of $362.1 million for Q1 fiscal 2025, an increase of 8.9% from the same period last year.

What was Copart's gross profit for Q1 2025?

Copart's gross profit for Q1 2025 was $512.1 million, representing a 10.4% increase year-over-year.