Copart Reports Second Quarter Fiscal 2022 Financial Results
Dallas, Texas February 16, 2022 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2022.
For the three months ended January 31, 2022, revenue, gross profit, and net income were $867.5 million, $403.3 million, and $287.4 million, respectively. These represent an increase in revenue of $250.4 million, or 40.6%; an increase in gross profit of $95.8 million, or 31.2%; and an increase in net income of $94.0 million, or 48.6%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $1.19 compared to $0.81 last year, an increase of 46.9%.
For the six months ended January 31, 2022, revenue, gross profit, and net income were $1,677.6 million, $788.4 million, and $547.8 million, respectively. These represent an increase in revenue of $467.6 million, or 38.6%; an increase in gross profit of $184.1 million, or 30.5%; and an increase in net income of $154.1 million, or 39.1%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $2.27 compared to $1.64 last year, an increase of 38.4%.
Excluding the impact of discrete income tax items, and certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the three months ended January 31, 2022 and 2021 were $1.10, and $0.80, respectively, which was an increase of 37.5%. Excluding the impact of discrete income tax items, and certain income tax benefits related to stock-based compensation, , non-GAAP fully diluted earnings per share for the six months ended January 31, 2022 and 2021, were $2.17, and $1.59, respectively, which was an increase of 36.5%. 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, February 17, 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 May 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.
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
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 discrete income tax items, and 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 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.
Contact:
Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer
972-391-5090 or melissa.hunter@copart.com
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended January 31,
Six Months Ended January 31,
2022
2021
% Change
2022
2021
% Change
Service revenues and vehicle sales:
Service revenues
$
711,090
$
532,601
33.5
%
$
1,378,908
$
1,047,973
31.6
%
Vehicle sales
156,370
84,430
85.2
%
298,684
161,998
84.4
%
Total service revenues and vehicle sales
867,460
617,031
40.6
%
1,677,592
1,209,971
38.6
%
Operating expenses:
Yard operations
294,098
208,910
40.8
%
565,374
415,896
35.9
%
Cost of vehicle sales
140,304
73,629
90.6
%
266,712
137,989
93.3
%
Yard depreciation and amortization
28,301
25,180
12.4
%
54,738
48,474
12.9
%
Yard stock-based compensation
1,415
1,814
(22.0)
%
2,396
3,345
(28.4)
%
Gross profit
403,342
307,498
31.2
%
788,372
604,267
30.5
%
General and administrative
42,754
36,014
18.7
%
83,869
71,152
17.9
%
General and administrative depreciation and amortization
5,013
6,212
(19.3)
%
10,336
11,867
(12.9)
%
General and administrative stock-based compensation
8,247
7,051
17.0
%
16,718
14,433
15.8
%
Total operating expenses
520,132
358,810
45.0
%
1,000,143
703,156
42.2
%
Operating income
347,328
258,221
34.5
%
677,449
506,815
33.7
%
Other expense:
Interest expense, net
(4,433)
(4,849)
(8.6)
%
(9,540)
(9,881)
(3.5)
%
Other income, net
(840)
(920)
(8.7)
%
(28)
2,333
(101.2)
%
Total other expense
(5,273)
(5,769)
(8.6)
%
(9,568)
(7,548)
26.8
%
Income before income taxes
342,055
252,452
35.5
%
667,881
499,267
33.8
%
Income tax expense
54,643
59,012
(7.4)
%
120,106
105,542
13.8
%
Net income
$
287,412
$
193,440
48.6
%
$
547,775
$
393,725
39.1
%
Basic net income per common share
$
1.21
$
0.82
47.6
%
$
2.31
$
1.67
38.3
%
Weighted average common shares outstanding
237,186
236,152
0.4
%
237,167
235,971
0.5
%
Diluted net income per common share
$
1.19
$
0.81
46.9
%
$
2.27
$
1.64
38.4
%
Diluted weighted average common shares outstanding
241,187
240,280
0.4
%
241,244
240,124
0.5
%
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
January 31, 2022
July 31, 2021
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash
$
971,651
$
1,048,260
Investment in held to maturity securities
374,866
—
Accounts receivable, net
630,629
480,628
Vehicle pooling costs
123,896
94,449
Inventories
52,979
44,968
Income taxes receivable
15,426
20,012
Prepaid expenses and other assets
19,926
14,294
Total current assets
2,189,373
1,702,611
Property and equipment, net
2,376,013
2,296,624
Operating lease right-of-use assets
120,309
119,487
Intangibles, net
42,731
45,873
Goodwill
352,908
355,717
Other assets
55,622
41,831
Total assets
$
5,136,956
$
4,562,143
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
367,699
$
369,826
Deferred revenue
20,577
20,973
Income taxes payable
6,458
7,760
Current portion of operating and finance lease liabilities
23,126
22,472
Total current liabilities
417,860
421,031
Deferred income taxes
69,759
63,969
Income taxes payable
57,193
52,345
Operating and finance lease liabilities, net of current portion
98,459
97,961
Long-term debt and other liabilities, net of discount
403,829
397,636
Total liabilities
1,047,100
1,032,942
Commitments and contingencies
Stockholders' equity:
Preferred stock
—
—
Common stock
24
24
Additional paid-in capital
797,955
761,834
Accumulated other comprehensive loss
(123,502)
(100,860)
Retained earnings
3,415,379
2,868,203
Total stockholders' equity
4,089,856
3,529,201
Total liabilities and stockholders' equity
$
5,136,956
$
4,562,143
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended January 31,
2022
2021
Cash flows from operating activities:
Net income
$
547,775
$
393,725
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost
65,627
60,898
Allowance for credit loss
1,695
213
Equity in losses (earnings) of unconsolidated affiliates
685
(1,343)
Stock-based compensation
19,114
17,778
Gain on sale of property and equipment
(755)
(1,145)
Deferred income taxes
6,003
9,442
Changes in operating assets and liabilities:
Accounts receivable
(152,763)
(111,148)
Vehicle pooling costs
(29,623)
(19,099)
Inventories
(8,589)
(9,772)
Prepaid expenses and other current and non-current assets
(19,889)
5,802
Operating lease right-of-use assets and lease liabilities
657
470
Accounts payable and accrued liabilities
10,741
10,041
Deferred revenue
(309)
6,098
Income taxes receivable
4,577
20,243
Income taxes payable
1,655
10,838
Other liabilities
(53)
—
Net cash provided by operating activities
446,548
393,041
Cash flows from investing activities:
Purchases of property and equipment
(156,200)
(283,214)
Purchase of assets in connection with acquisitions
(469)
—
Proceeds from sale of property and equipment
1,252
129
Purchase of held to maturity securities
(374,866)
—
Net cash used in investing activities
(530,283)
(283,085)
Cash flows from financing activities:
Proceeds from the exercise of stock options
11,985
23,112
Proceeds from the issuance of Employee Stock Purchase Plan shares
5,022
4,880
Payments for employee stock-based tax withholdings
(599)
(787)
Payments of finance lease obligations
(314)
(622)
Net cash provided by financing activities
16,094
26,583
Effect of foreign currency translation
(8,968)
2,146
Net increase in cash, cash equivalents, and restricted cash
(76,609)
138,685
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
$
971,651
$
616,403
Supplemental disclosure of cash flow information:
Interest paid
$
9,311
$
7,614
Income taxes paid, net of refunds
$
128,972
$
64,860
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Additional Financial Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended January 31,
Six Months Ended January 31,
2022
2021
2022
2021
GAAP net income
$
287,412
$
193,440
$
547,775
$
393,725
Effect of certain discrete income tax items
(17,490)
—
(17,490)
—
Effect of recognizing tax benefit on exercise of stock-based compensation
(3,965)
(2,167)
(6,952)
(13,939)
Non-GAAP net income
$
265,957
$
191,273
$
523,333
$
379,786
GAAP net income per diluted common share
$
1.19
$
0.81
$
2.27
$
1.64
Non-GAAP net income per diluted common share
$
1.10
$
0.80
$
2.17
$
1.59
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
