Contact: | Brooke Boston, Executive Assistant, Office of the Chief Financial Officer | ||||
brooke.boston@copart.com |
Three Months Ended July 31, | Twelve Months Ended July 31, | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||
Service revenues and vehicle sales: | ||||||||||||||||||||||||||||||||||||||
Service revenues | $ | 834,242 | $ | 707,816 | 17.9 | % | $ | 3,198,128 | $ | 2,853,040 | 12.1 | % | ||||||||||||||||||||||||||
Vehicle sales | 163,349 | 175,572 | (7.0) | % | 671,390 | 647,881 | 3.6 | % | ||||||||||||||||||||||||||||||
Total service revenues and vehicle sales | 997,591 | 883,388 | 12.9 | % | 3,869,518 | 3,500,921 | 10.5 | % | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Yard operations | 348,332 | 307,717 | 13.2 | % | 1,369,006 | 1,186,457 | 15.4 | % | ||||||||||||||||||||||||||||||
Cost of vehicle sales | 149,216 | 161,255 | (7.5) | % | 614,498 | 585,203 | 5.0 | % | ||||||||||||||||||||||||||||||
Yard depreciation and amortization | 40,577 | 31,530 | 28.7 | % | 142,097 | 117,913 | 20.5 | % | ||||||||||||||||||||||||||||||
Yard stock-based compensation | 1,888 | 1,314 | 43.7 | % | 6,926 | 5,127 | 35.1 | % | ||||||||||||||||||||||||||||||
Gross profit | 457,578 | 381,572 | 19.9 | % | 1,736,991 | 1,606,221 | 8.1 | % | ||||||||||||||||||||||||||||||
General and administrative | 55,522 | 43,257 | 28.4 | % | 200,294 | 177,314 | 13.0 | % | ||||||||||||||||||||||||||||||
General and administrative depreciation and amortization | 4,058 | 4,803 | (15.5) | % | 17,381 | 20,072 | (13.4) | % | ||||||||||||||||||||||||||||||
General and administrative stock-based compensation | 7,381 | 8,719 | (15.3) | % | 32,747 | 33,838 | (3.2) | % | ||||||||||||||||||||||||||||||
Total operating expenses | 606,974 | 558,595 | 8.7 | % | 2,382,949 | 2,125,924 | 12.1 | % | ||||||||||||||||||||||||||||||
Operating income | 390,617 | 324,793 | 20.3 | % | 1,486,569 | 1,374,997 | 8.1 | % | ||||||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | 29,148 | (2,656) | (1197.4) | % | 65,928 | (16,688) | (495.1) | % | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (16,759) | 100.0 | % | — | (16,759) | 100.0 | % | ||||||||||||||||||||||||||||||
Other income (expense), net | 3,927 | (1,910) | (305.6) | % | 1,831 | (596) | (407.2) | % | ||||||||||||||||||||||||||||||
Total other income (expense) | 33,075 | (21,325) | (255.1) | % | 67,759 | (34,043) | (299.0) | % | ||||||||||||||||||||||||||||||
Income before income taxes | 423,692 | 303,468 | 39.6 | % | 1,554,328 | 1,340,954 | 15.9 | % | ||||||||||||||||||||||||||||||
Income tax expense | 75,907 | 39,733 | 91.0 | % | 316,587 | 250,824 | 26.2 | % | ||||||||||||||||||||||||||||||
Net income | $ | 347,785 | $ | 263,735 | 31.9 | % | $ | 1,237,741 | $ | 1,090,130 | 13.5 | % | ||||||||||||||||||||||||||
Basic net income per common share | $ | 0.36 | $ | 0.28 | 28.6 | % | $ | 1.30 | $ | 1.15 | 13.0 | % | ||||||||||||||||||||||||||
Weighted average common shares outstanding | 955,773 | 951,364 | 0.5 | % | 953,574 | 949,676 | 0.4 | % | ||||||||||||||||||||||||||||||
Diluted net income per common share | $ | 0.36 | $ | 0.27 | 33.3 | % | $ | 1.28 | $ | 1.13 | 13.3 | % | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 970,255 | 962,944 | 0.8 | % | 966,647 | 964,604 | 0.2 | % |
July 31, 2023 | July 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash, cash equivalents, and restricted cash | $ | 957,395 | $ | 1,384,236 | ||||||||||
Investment in held to maturity securities | 1,406,589 | — | ||||||||||||
Accounts receivable, net | 702,038 | 578,573 | ||||||||||||
Vehicle pooling costs | 123,725 | 112,242 | ||||||||||||
Inventories | 39,973 | 58,791 | ||||||||||||
Income taxes receivable | 6,574 | 49,882 | ||||||||||||
Prepaid expenses and other assets | 26,310 | 18,731 | ||||||||||||
Total current assets | 3,262,604 | 2,202,455 | ||||||||||||
Property and equipment, net | 2,844,339 | 2,485,764 | ||||||||||||
Operating lease right-of-use assets | 108,139 | 116,303 | ||||||||||||
Intangibles, net | 62,702 | 54,680 | ||||||||||||
Goodwill | 394,289 | 401,954 | ||||||||||||
Other assets | 65,806 | 47,708 | ||||||||||||
Total assets | $ | 6,737,879 | $ | 5,308,864 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 440,810 | $ | 399,034 | ||||||||||
Deferred revenue | 26,117 | 20,061 | ||||||||||||
Income taxes payable | 4,374 | — | ||||||||||||
Current portion of operating and finance lease liabilities | 21,468 | 21,794 | ||||||||||||
Total current liabilities | 492,769 | 440,889 | ||||||||||||
Deferred income taxes | 89,492 | 80,060 | ||||||||||||
Income taxes payable | 69,193 | 64,637 | ||||||||||||
Operating and finance lease liabilities, net of current portion | 88,082 | 95,683 | ||||||||||||
Long-term debt and other liabilities, net of discount | 10,903 | 1,996 | ||||||||||||
Total liabilities | 750,439 | 683,265 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock | — | — | ||||||||||||
Common stock | 96 | 96 | ||||||||||||
Additional paid-in capital | 938,910 | 838,460 | ||||||||||||
Accumulated other comprehensive loss | (141,006) | (169,365) | ||||||||||||
Retained earnings | 5,189,440 | 3,956,408 | ||||||||||||
Total stockholders’ equity | 5,987,440 | 4,625,599 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 6,737,879 | $ | 5,308,864 |
Year Ended July 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 1,237,741 | $ | 1,090,130 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization, including debt cost | 159,684 | 138,605 | ||||||||||||
Allowance for credit losses (gains) | 1,946 | 1,349 | ||||||||||||
Equity in losses (earnings) of unconsolidated affiliates | 5,347 | 284 | ||||||||||||
Stock-based compensation | 39,673 | 38,965 | ||||||||||||
Gain on sale of property and equipment | (1,846) | (939) | ||||||||||||
Loss on extinguishment of debt | — | 16,759 | ||||||||||||
Deferred income taxes | 9,946 | 17,017 | ||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||||
Accounts receivable | (123,207) | (97,750) | ||||||||||||
Vehicle pooling costs | (10,989) | (18,342) | ||||||||||||
Inventories | 26,549 | (10,851) | ||||||||||||
Prepaid expenses and other current and non-current assets | (59,949) | (5,156) | ||||||||||||
Operating lease right-of-use assets and lease liabilities | 350 | 715 | ||||||||||||
Accounts payable and accrued liabilities | 18,010 | 36,306 | ||||||||||||
Deferred revenue | 5,896 | (574) | ||||||||||||
Income taxes receivable | 33,193 | (29,884) | ||||||||||||
Income taxes payable | 21,866 | 49 | ||||||||||||
Net cash provided by operating activities | 1,364,210 | 1,176,683 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchase of short-term investments | (1,406,588) | (374,866) | ||||||||||||
Purchases of property and equipment | (516,636) | (337,448) | ||||||||||||
Purchases of assets and liabilities in connection with acquisitions | — | (106,604) | ||||||||||||
Proceeds from sale of property and equipment | 33,919 | 4,333 | ||||||||||||
Proceeds from the sale of held to maturity securities | — | 374,866 | ||||||||||||
Investment in unconsolidated affiliate | (2,744) | (2,591) | ||||||||||||
Net cash used in investing activities | (1,892,049) | (442,310) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from the exercise of stock options | 49,679 | 28,108 | ||||||||||||
Proceeds from the issuance of Employee Stock Purchase Plan shares | 11,098 | 9,625 | ||||||||||||
Payments for employee stock-based tax withholdings | (4,709) | (1,925) | ||||||||||||
Issuance of principal on revolver facility | 44,494 | — | ||||||||||||
Principal payments on revolver facility | (33,924) | — | ||||||||||||
Debt offering costs | — | (1,212) | ||||||||||||
Principal payments on long-term debt | — | (416,759) | ||||||||||||
Payments of finance lease obligations | (23) | (530) | ||||||||||||
Net cash provided by (used in) financing activities | 66,615 | (382,693) | ||||||||||||
Effect of foreign currency translation | 34,383 | (15,704) | ||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (426,841) | 335,976 | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 1,384,236 | 1,048,260 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 957,395 | $ | 1,384,236 | ||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Interest paid | $ | 2,614 | $ | 18,539 | ||||||||||
Income taxes paid, net of refunds | $ | 257,514 | $ | 263,226 |
Three Months Ended July 31, | Twelve Months Ended July 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
GAAP net income | $ | 347,785 | $ | 263,735 | $ | 1,237,741 | $ | 1,090,130 | ||||||||||||||||||
Effect of certain discrete income tax items | (1,448) | — | (1,448) | (17,490) | ||||||||||||||||||||||
Effect of certain legal matters, net of tax | — | — | — | 5,092 | ||||||||||||||||||||||
Effect of extinguishment of debt, net of tax | — | 12,929 | — | 12,929 | ||||||||||||||||||||||
Effect of recognizing tax benefit on exercise of stock-based compensation | (15,911) | (5,077) | (21,021) | (14,274) | ||||||||||||||||||||||
Non-GAAP net income | $ | 330,426 | $ | 271,587 | $ | 1,215,272 | $ | 1,076,387 | ||||||||||||||||||
GAAP net income per diluted common share | $ | 0.36 | $ | 0.27 | $ | 1.28 | $ | 1.13 | ||||||||||||||||||
Non-GAAP net income per diluted common share | $ | 0.34 | $ | 0.28 | $ | 1.26 | $ | 1.12 | ||||||||||||||||||