Copart Reports Third Quarter Fiscal 2024 Financial Results
Copart (NASDAQ: CPRT) announced its financial results for Q3 of fiscal 2024, ending April 30, 2024. The company reported revenue of $1.13 billion, gross profit of $525.5 million, and net income of $382.3 million, reflecting year-over-year increases of 10.3%, 8.7%, and 9.1%, respectively. Fully diluted EPS rose by 8.3% to $0.39. For the first nine months, revenue was $3.17 billion, gross profit $1.5 billion, and net income $1.0 billion, showing increases of 10.3%, 13.6%, and 16.9%, respectively. EPS for nine months increased by 16.3% to $1.07. A conference call to discuss these results is scheduled for May 16, 2024.
- Revenue increased by 10.3% year-over-year for Q3 2024, reaching $1.13 billion.
- Gross profit rose by 8.7% year-over-year to $525.5 million for Q3 2024.
- Net income grew by 9.1% year-over-year to $382.3 million for Q3 2024.
- EPS for Q3 2024 increased by 8.3% to $0.39.
- For the first nine months of fiscal 2024, revenue grew by 10.3% to $3.17 billion.
- Gross profit for the first nine months increased by 13.6% to $1.5 billion.
- Net income for the first nine months rose by 16.9% to $1.0 billion.
- EPS for the first nine months of fiscal 2024 increased by 16.3% to $1.07.
- The growth rates of revenue, gross profit, and net income for Q3 2024 are lower than those for the first nine months, potentially indicating slowing momentum.
- No forward-looking guidance or projections were provided, leaving uncertainty about future performance.
Insights
The latest financial results from Copart, Inc. reveal a steady and strong performance. The company reported $1.13 billion in revenue for the quarter ended April 30, 2024, a 10.3% increase from the same period last year. This growth is mirrored in the increases in gross profit and net income, with figures of $525.5 million and $382.3 million, respectively. The rise in net income by 9.1% is a positive indicator and signals effective cost management and operational efficiency. Over the nine-month period, similar trends are evident with a 16.9% increase in net income and a 16.3% increase in fully diluted earnings per share (EPS), which reflects well on the company’s profitability.
For retail investors, these results suggest a well-managed company with continued growth. However, it's essential to consider the broader market conditions and how they could impact future performance. While the numbers are solid, investors should watch for any potential economic headwinds that might affect the auto industry and Copart’s business specifically.
Overall, these results are promising and the company's ability to maintain and grow its profitability should instill confidence. The upcoming conference call will be an opportunity to gain further insights into future strategies and market conditions.
The automotive and salvage auction industry in which Copart operates has seen various trends influenced by macroeconomic factors such as vehicle production rates, supply chain issues and consumer demand for used vehicles. Copart’s 10.3% revenue growth aligns with increased demand in the used vehicle market, driven partly by supply chain delays in new vehicle production. This demand is reflected in the company's improved financial metrics.
Copart’s expansion in both revenue and net income suggests it has successfully capitalized on these market conditions. Investors should note the company's strategic initiatives to leverage technology and improve operational efficiencies, which could provide a competitive edge. However, it is important to stay informed about potential changes in supply chain dynamics and economic shifts that may influence future demand and profitability.
In summary, Copart’s performance is indicative of a robust market position and strategic agility, which are favorable for long-term growth. Nonetheless, vigilance regarding external economic factors remains important for investors considering a stake in the company.
For the three months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were
For the nine months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were
On Thursday, May 16, 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 September 2024 by visiting www.copart.com/investorrelations.
About Copart
Founded in 1982, Copart is a global leader in online vehicle auctions. Copart's innovative technology and online auction platforms connect vehicle consigners 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
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 April 30, |
|
Nine Months Ended April 30, |
|||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
Service revenues and vehicle sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Service revenues |
|
$ |
946,630 |
|
|
$ |
847,249 |
|
11.7 |
% |
|
$ |
2,667,911 |
|
|
$ |
2,363,886 |
|
|
12.9 |
% |
Vehicle sales |
|
|
180,629 |
|
|
|
174,582 |
|
3.5 |
% |
|
|
499,913 |
|
|
|
508,041 |
|
|
(1.6 |
)% |
Total service revenues and vehicle sales |
|
|
1,127,259 |
|
|
|
1,021,831 |
|
10.3 |
% |
|
|
3,167,824 |
|
|
|
2,871,927 |
|
|
10.3 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Yard operations |
|
|
391,256 |
|
|
|
343,617 |
|
13.9 |
% |
|
|
1,125,440 |
|
|
|
1,020,674 |
|
|
10.3 |
% |
Cost of vehicle sales |
|
|
162,881 |
|
|
|
159,443 |
|
2.2 |
% |
|
|
457,596 |
|
|
|
465,282 |
|
|
(1.7 |
)% |
Yard depreciation and amortization |
|
|
45,800 |
|
|
|
33,090 |
|
38.4 |
% |
|
|
126,111 |
|
|
|
101,520 |
|
|
24.2 |
% |
Yard stock-based compensation |
|
|
1,817 |
|
|
|
2,251 |
|
(19.3 |
)% |
|
|
5,001 |
|
|
|
5,038 |
|
|
(0.7 |
)% |
Gross profit |
|
|
525,505 |
|
|
|
483,430 |
|
8.7 |
% |
|
|
1,453,676 |
|
|
|
1,279,413 |
|
|
13.6 |
% |
General and administrative |
|
|
76,169 |
|
|
|
52,395 |
|
45.4 |
% |
|
|
206,457 |
|
|
|
144,772 |
|
|
42.6 |
% |
General and administrative depreciation and amortization |
|
|
4,932 |
|
|
|
4,281 |
|
15.2 |
% |
|
|
13,047 |
|
|
|
13,323 |
|
|
(2.1 |
)% |
General and administrative stock-based compensation |
|
|
7,201 |
|
|
|
7,830 |
|
(8.0 |
)% |
|
|
21,693 |
|
|
|
25,366 |
|
|
(14.5 |
)% |
Total operating expenses |
|
|
690,056 |
|
|
|
602,907 |
|
14.5 |
% |
|
|
1,955,345 |
|
|
|
1,775,975 |
|
|
10.1 |
% |
Operating income |
|
|
437,203 |
|
|
|
418,924 |
|
4.4 |
% |
|
|
1,212,479 |
|
|
|
1,095,952 |
|
|
10.6 |
% |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest income, net |
|
|
36,218 |
|
|
|
17,878 |
|
102.6 |
% |
|
|
102,179 |
|
|
|
36,780 |
|
|
177.8 |
% |
Other (expense) income, net |
|
|
(1,309 |
) |
|
|
3,628 |
|
(136.1 |
)% |
|
|
(8,484 |
) |
|
|
(2,096 |
) |
|
304.8 |
% |
Total other income |
|
|
34,909 |
|
|
|
21,506 |
|
62.3 |
% |
|
|
93,695 |
|
|
|
34,684 |
|
|
170.1 |
% |
Income before income taxes |
|
|
472,112 |
|
|
|
440,430 |
|
7.2 |
% |
|
|
1,306,174 |
|
|
|
1,130,636 |
|
|
15.5 |
% |
Income tax expense |
|
|
90,002 |
|
|
|
89,999 |
|
— |
% |
|
|
266,005 |
|
|
|
240,680 |
|
|
10.5 |
% |
Net income |
|
|
382,110 |
|
|
|
350,431 |
|
9.0 |
% |
|
|
1,040,169 |
|
|
|
889,956 |
|
|
16.9 |
% |
Less: Net loss attributable to noncontrolling interest |
|
|
(181 |
) |
|
|
— |
|
100.0 |
% |
|
|
(284 |
) |
|
|
— |
|
|
100.0 |
% |
Net income attributable to Copart, Inc. |
|
$ |
382,291 |
|
|
$ |
350,431 |
|
9.1 |
% |
|
$ |
1,040,453 |
|
|
$ |
889,956 |
|
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic net income per common share |
|
$ |
0.40 |
|
|
$ |
0.37 |
|
8.1 |
% |
|
$ |
1.08 |
|
|
$ |
0.93 |
|
|
16.1 |
% |
Weighted average common shares outstanding |
|
|
961,813 |
|
|
|
953,574 |
|
0.9 |
% |
|
|
960,143 |
|
|
|
952,834 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted net income per common share |
|
$ |
0.39 |
|
|
$ |
0.36 |
|
8.3 |
% |
|
$ |
1.07 |
|
|
$ |
0.92 |
|
|
16.3 |
% |
Diluted weighted average common shares outstanding |
|
|
976,445 |
|
|
|
967,380 |
|
0.9 |
% |
|
|
974,226 |
|
|
|
965,436 |
|
|
0.9 |
% |
Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)
|
||||||||
|
|
April 30, 2024 |
|
July 31, 2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash, cash equivalents, and restricted cash |
|
$ |
1,089,995 |
|
|
$ |
957,395 |
|
Investment in held to maturity securities |
|
|
2,000,334 |
|
|
|
1,406,589 |
|
Accounts receivable, net |
|
|
822,650 |
|
|
|
702,038 |
|
Vehicle pooling costs |
|
|
125,001 |
|
|
|
123,725 |
|
Inventories |
|
|
46,764 |
|
|
|
39,973 |
|
Income taxes receivable |
|
|
23,402 |
|
|
|
6,574 |
|
Prepaid expenses and other assets |
|
|
40,983 |
|
|
|
26,310 |
|
Total current assets |
|
|
4,149,129 |
|
|
|
3,262,604 |
|
Property and equipment, net |
|
|
3,073,090 |
|
|
|
2,844,339 |
|
Operating lease right-of-use assets |
|
|
108,859 |
|
|
|
108,139 |
|
Intangibles, net |
|
|
76,786 |
|
|
|
62,702 |
|
Goodwill |
|
|
511,372 |
|
|
|
394,289 |
|
Other assets |
|
|
91,396 |
|
|
|
65,806 |
|
Total assets |
|
$ |
8,010,632 |
|
|
$ |
6,737,879 |
|
|
|
|
|
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
506,795 |
|
|
$ |
440,810 |
|
Deferred revenue |
|
|
28,761 |
|
|
|
26,117 |
|
Income taxes payable |
|
|
7,388 |
|
|
|
4,374 |
|
Current portion of operating and finance lease liabilities |
|
|
20,475 |
|
|
|
21,468 |
|
Total current liabilities |
|
|
563,419 |
|
|
|
492,769 |
|
Deferred income taxes |
|
|
92,014 |
|
|
|
89,492 |
|
Income taxes payable |
|
|
67,455 |
|
|
|
69,193 |
|
Operating and finance lease liabilities, net of current portion |
|
|
91,131 |
|
|
|
88,082 |
|
Long-term debt and other liabilities |
|
|
427 |
|
|
|
10,903 |
|
Total liabilities |
|
|
814,446 |
|
|
|
750,439 |
|
Commitments and contingencies |
|
|
|
|
||||
Redeemable non-controlling interest |
|
|
24,933 |
|
|
|
— |
|
Stockholders' equity: |
|
|
|
|
||||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
96 |
|
|
|
96 |
|
Additional paid-in capital |
|
|
1,102,684 |
|
|
|
938,910 |
|
Accumulated other comprehensive loss |
|
|
(156,807 |
) |
|
|
(141,006 |
) |
Retained earnings |
|
|
6,225,280 |
|
|
|
5,189,440 |
|
Total stockholders' equity |
|
|
7,171,253 |
|
|
|
5,987,440 |
|
Total liabilities, redeemable noncontrolling interests and stockholders’ equity |
|
$ |
8,010,632 |
|
|
$ |
6,737,879 |
|
Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
|
||||||||
|
|
Nine Months Ended April 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
1,040,169 |
|
|
$ |
889,956 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization, including debt cost |
|
|
139,178 |
|
|
|
115,320 |
|
Allowance for credit loss |
|
|
2,513 |
|
|
|
1,480 |
|
Equity in losses of unconsolidated affiliates |
|
|
2,580 |
|
|
|
5,446 |
|
Stock-based compensation |
|
|
26,694 |
|
|
|
30,404 |
|
Gain on sale of property and equipment |
|
|
(2,169 |
) |
|
|
(965 |
) |
Deferred income taxes |
|
|
(3,093 |
) |
|
|
(3,236 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(152,564 |
) |
|
|
(115,098 |
) |
Vehicle pooling costs |
|
|
(1,784 |
) |
|
|
(7,300 |
) |
Inventories |
|
|
(7,316 |
) |
|
|
14,870 |
|
Prepaid expenses, other current and non-current assets |
|
|
(39,815 |
) |
|
|
(33,830 |
) |
Operating lease right-of-use assets and lease liabilities |
|
|
1,377 |
|
|
|
595 |
|
Accounts payable, accrued liabilities and other liabilities |
|
|
40,305 |
|
|
|
30,314 |
|
Deferred revenue |
|
|
2,660 |
|
|
|
5,516 |
|
Income taxes receivable |
|
|
(16,846 |
) |
|
|
49,430 |
|
Income taxes payable |
|
|
1,454 |
|
|
|
22,731 |
|
Net cash provided by operating activities |
|
|
1,033,343 |
|
|
|
1,005,633 |
|
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(373,104 |
) |
|
|
(346,524 |
) |
Cash acquired in connection with acquisition |
|
|
17,662 |
|
|
|
— |
|
Proceeds from sale of property and equipment |
|
|
3,453 |
|
|
|
20,509 |
|
Investment in held to maturity securities |
|
|
(2,478,505 |
) |
|
|
— |
|
Proceeds from the sale of held to maturity securities |
|
|
1,915,000 |
|
|
|
— |
|
Investment in unconsolidated affiliate |
|
|
(1,000 |
) |
|
|
(2,744 |
) |
Net cash used in investing activities |
|
|
(916,494 |
) |
|
|
(328,759 |
) |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from the exercise of stock options |
|
|
20,377 |
|
|
|
27,220 |
|
Proceeds from the issuance of Employee Stock Purchase Plan shares |
|
|
5,957 |
|
|
|
5,363 |
|
Payments for employee stock-based tax withholdings |
|
|
(4,613 |
) |
|
|
(3,026 |
) |
Issuance of principal on revolver facility |
|
|
— |
|
|
|
21,481 |
|
Principal payments on revolver facility |
|
|
(10,818 |
) |
|
|
— |
|
Payments of finance lease obligations |
|
|
(14 |
) |
|
|
(18 |
) |
Net cash provided by financing activities |
|
|
10,889 |
|
|
|
51,020 |
|
Effect of foreign currency translation |
|
|
4,862 |
|
|
|
2,053 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
|
132,600 |
|
|
|
729,947 |
|
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 |
|
$ |
1,089,995 |
|
|
$ |
2,114,183 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
||||
Interest paid |
|
$ |
1,946 |
|
|
$ |
1,586 |
|
Income taxes paid, net of refunds |
|
$ |
255,268 |
|
|
$ |
171,438 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516578331/en/
Copart Investor Relations
investor.relations@copart.com
Source: Copart, Inc.
FAQ
What were Copart's Q3 fiscal 2024 earnings?
How much did Copart’s revenue grow in Q3 fiscal 2024?
What is Copart's EPS for Q3 fiscal 2024?
What were Copart’s financial results for the first nine months of fiscal 2024?
How much did Copart’s EPS grow in the first nine months of fiscal 2024?
When is Copart's conference call to discuss Q3 fiscal 2024 results?
