Copart Reports Fourth Quarter Fiscal 2024 Financial Results

Rhea-AI Summary

Copart (NASDAQ: CPRT) reported its Q4 and full-year fiscal 2024 financial results. For Q4, revenue increased by 7.2% to $1.1 billion, while gross profit decreased by 0.9% to $454 million. Net income attributable to Copart decreased by 7.3% to $323 million. Fully diluted EPS for Q4 was $0.33, down 8.3% year-over-year.

For the full fiscal year 2024, Copart's revenue grew 9.5% to $4.2 billion, gross profit increased 9.8% to $1.9 billion, and net income rose 10.1% to $1.4 billion. Full-year diluted EPS was $1.40, up 9.4% from the previous year. The company will host a conference call on September 4, 2024, to discuss the results.

Positive

• Full-year revenue increased by 9.5% to $4.2 billion
• Full-year gross profit grew by 9.8% to $1.9 billion
• Full-year net income attributable to Copart rose by 10.1% to $1.4 billion
• Full-year diluted EPS increased by 9.4% to $1.40

Negative

• Q4 gross profit decreased by 0.9% to $454 million
• Q4 net income attributable to Copart declined by 7.3% to $323 million
• Q4 fully diluted EPS decreased by 8.3% to $0.33

Insights

Financial Analyst

Copart's Q4 FY2024 results present a mixed picture. While revenue increased by 7.2% to $1.1 billion, gross profit and net income declined by 0.9% and 7.3% respectively. This suggests potential margin pressure, possibly due to increased operational costs or market challenges.

The full-year performance is more positive, with revenue up 9.5% to $4.2 billion and net income increasing by 10.1% to $1.4 billion. The annual EPS growth of 9.4% to $1.40 indicates improved profitability on a per-share basis.

Investors should note the divergence between quarterly and annual trends, suggesting potential headwinds in the latest quarter that may impact future performance. The company's ability to maintain growth while managing costs will be important in the coming periods.

Market Research Analyst

Copart's performance reflects broader trends in the auto salvage and remarketing industry. The 7.2% quarterly revenue growth suggests continued demand for vehicle auction services, possibly driven by factors like increased total loss claims or a robust used car market.

However, the decline in quarterly profits amid revenue growth could indicate intensifying competition or rising operational costs. This might be due to factors such as investments in technology, expansion efforts, or changes in the vehicle mix being processed.

The divergence between quarterly and annual results warrants attention. It could signal a shift in market dynamics or seasonal factors affecting the business. Investors should monitor industry trends and Copart's strategic initiatives to better understand these variations and their potential long-term implications.

DALLAS--(BUSINESS WIRE)-- Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2024.

For the three months ended July 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.1 billion, $454 million, and $323 million, respectively. These represent an increase in revenue of $71.4 million, or 7.2%; a decrease in gross profit of $(4.0) million, or (0.9)%; and a decrease in net income attributable to Copart, Inc. of $(25.2) million, or (7.3)%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2024 was $0.33 compared to $0.36 last year, a decrease of (8.3)%.

For the year ended July 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $4.2 billion, $1.9 billion, and $1.4 billion, respectively. These represent an increase in revenue of $367.3 million, or 9.5%; an increase in gross profit of $170.3 million, or 9.8%; and an increase in net income attributable to Copart, Inc. of $125.3 million, or 10.1%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2024 was $1.40 compared to $1.28 last year, an increase of 9.4%.

On Wednesday, September 4, 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 at www.copart.com/investorrelations. A replay of the call will be available through November 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 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 July 31,										Twelve Months Ended July 31,
		2024				2023			% Change			2024				2023			% Change
Service revenues and vehicle sales:
Service revenues		$	893,091			$	834,242		7.1	%			3,561,002			$	3,198,128		11.3	%
Vehicle sales			175,908				163,349		7.7	%			675,821				671,390		0.7	%
Total service revenues and vehicle sales			1,068,999				997,591		7.2	%			4,236,823				3,869,518		9.5	%
Operating expenses:
Yard operations			407,044				348,332		16.9	%			1,532,484				1,369,006		11.9	%
Cost of vehicle sales			161,891				149,216		8.5	%			619,487				614,498		0.8	%
Yard depreciation and amortization			44,539				40,577		9.8	%			170,650				142,097		20.1	%
Yard stock-based compensation			1,949				1,888		3.2	%			6,950				6,926		0.3	%
Gross profit			453,576				457,578		(0.9	)%			1,907,252				1,736,991		9.8	%
General and administrative			81,377				55,522		46.6	%			287,834				200,294		43.7	%
General and administrative depreciation and amortization			6,064				4,058		49.4	%			19,111				17,381		10.0	%
General and administrative stock-based compensation			6,591				7,381		(10.7	)%			28,284				32,747		(13.6	)%
Total operating expenses			709,455				606,974		16.9	%			2,664,800				2,382,949		11.8	%
Operating income			359,544				390,617		(8.0	)%			1,572,023				1,486,569		5.7	%
Other income (expense):
Interest income (expense), net			43,494				29,148		49.2	%			145,673				65,928		121.0	%
Other income (expense), net			5,389				3,927		37.2	%			(3,095	)			1,831		(269.0	)%
Total other income			48,883				33,075		47.8	%			142,578				67,759		110.4	%
Income before income taxes			408,427				423,692		(3.6	)%			1,714,601				1,554,328		10.3	%
Income tax expense			86,249				75,907		13.6	%			352,254				316,587		11.3	%
Net income			322,178				347,785		(7.4	)%			1,362,347				1,237,741		10.1	%
Less: Net loss attributable to noncontrolling interest			(389	)			—		100	%			(673	)			—		100.0	%
Net income attributable to Copart, Inc.		$	322,567			$	347,785		(7.3	)%		$	1,363,020			$	1,237,741		10.1	%
Basic net income per common share		$	0.34			$	0.36		(5.6	)%		$	1.42			$	1.30		9.2	%
Weighted average common shares outstanding			962,515				955,773		0.7	%			960,739				953,574		0.8	%
Diluted net income per common share		$	0.33			$	0.36		(8.3	)%		$	1.40			$	1.28		9.4	%
Diluted weighted average common shares outstanding			976,500				970,255		0.6	%			974,798				966,647		0.8	%

Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)
		July 31, 2024				July 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash		$	1,514,111			$	957,395
Investment in held to maturity securities			1,908,047				1,406,589
Accounts receivable, net			785,877				702,038
Vehicle pooling costs			132,638				123,725
Inventories			43,639				39,973
Income taxes receivable			—				6,574
Prepaid expenses and other assets			33,872				26,310
Total current assets			4,418,184				3,262,604
Property and equipment, net			3,175,838				2,844,339
Operating lease right-of-use assets			116,301				108,139
Intangibles, net			74,088				62,702
Goodwill			513,909				394,289
Other assets			129,444				65,806
Total assets		$	8,427,764			$	6,737,879
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities			518,148			$	440,810
Deferred revenue			28,121				26,117
Income taxes payable			60,994				4,374
Current portion of operating and finance lease liabilities			21,304				21,468
Total current liabilities			628,567				492,769
Deferred income taxes			93,653				89,492
Income taxes payable			59,560				69,193
Operating and finance lease liabilities, net of current portion			97,429				88,082
Long-term debt and other liabilities, net of discount			—				10,903
Total liabilities			879,209				750,439
Commitments and contingencies
Redeemable non-controlling interest			24,544				—
Stockholders’ equity:
Preferred stock			—				—
Common stock			96				96
Additional paid-in capital			1,120,985				938,910
Accumulated other comprehensive loss			(142,972	)			(141,006	)
Retained earnings			6,545,902				5,189,440
Total stockholders’ equity			7,524,011				5,987,440
Total liabilities, redeemable noncontrolling interests and stockholders’ equity		$	8,427,764			$	6,737,879

Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Year Ended July 31,
		2024				2023
Cash flows from operating activities:
Net Income		$	1,362,347			$	1,237,741
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost			190,256				159,684
Allowance for credit losses			3,914				1,946
Gain on extinguishment of liabilities			(4,058	)			—
Equity in losses of unconsolidated affiliates			2,241				5,347
Stock-based compensation			35,234				39,673
Gain on sale of property and equipment			(2,386	)			(1,846	)
Deferred income taxes			(847	)			9,946
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable			(145,385	)			(123,207	)
Vehicle pooling costs			(9,542	)			(10,989	)
Inventories			(3,698	)			26,549
Prepaid expenses and other current and non-current assets			(71,067	)			(59,949	)
Operating lease right-of-use assets and lease liabilities			1,064				350
Accounts payable and accrued liabilities			59,528				18,010
Deferred revenue			1,867				5,896
Income taxes receivable			6,561				33,193
Income taxes payable			46,535				21,866
Net cash provided by operating activities			1,472,564				1,364,210
Cash flows from investing activities:
Purchases of property and equipment			(510,990	)			(516,636	)
Cash acquired in connection with acquisition			17,662				—
Proceeds from sale of property and equipment			4,166				33,919
Investment in held to maturity securities			(4,087,162	)			(1,406,588	)
Proceeds from the sale of held to maturity securities			3,645,000				—
Acquisition of investment in unconsolidated affiliates			(8,755	)			(2,744	)
Net cash used in investing activities			(940,079	)			(1,892,049	)
Cash flows from financing activities:
Proceeds from the exercise of stock options			24,260				49,679
Proceeds from the issuance of Employee Stock Purchase Plan shares			12,406				11,098
Payments for employee stock-based tax withholdings			(6,558	)			(4,709	)
Issuance of principal on revolver facility			—				44,494
Principal payments on revolver facility			(10,821	)			(33,924	)
Payments of finance lease obligations			(14	)			(23	)
Net cash provided by financing activities			19,273				66,615
Effect of foreign currency translation			4,958				34,383
Net increase (decrease) in cash, cash equivalents, and restricted cash			556,716				(426,841	)
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		$	1,514,111			$	957,395
Supplemental disclosure of cash flow information:
Interest paid		$	3,127			$	2,614
Income taxes paid, net of refunds		$	285,891			$	257,514

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904605993/en/

Copart Investor Relations

investor.relations@copart.com

Source: Copart, Inc.

FAQ

What was Copart's revenue for Q4 fiscal 2024?

Copart's revenue for Q4 fiscal 2024 was $1.1 billion, representing a 7.2% increase from the same period last year.

How did Copart's full-year 2024 financial results compare to the previous year?

Copart's full-year 2024 results showed strong growth, with revenue up 9.5% to $4.2 billion, gross profit up 9.8% to $1.9 billion, and net income up 10.1% to $1.4 billion compared to the previous year.

What was Copart's (CPRT) earnings per share for fiscal year 2024?

Copart's fully diluted earnings per share for the fiscal year 2024 was $1.40, an increase of 9.4% compared to $1.28 in the previous year.

When will Copart (CPRT) hold its Q4 2024 earnings conference call?

Copart will conduct its Q4 2024 earnings conference call on Wednesday, September 4, 2024, at 5:30 p.m. Eastern Time (4:30 p.m. Central Time).