Copart Reports First Quarter Fiscal 2022 Financial Results
Dallas, Texas. (November 17, 2021) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2021.
For the three months ended October 31, 2021, revenue, gross profit, and net income were $810.1 million, $385.0 million, and $260.4 million, respectively. These represent an increase in revenue of $217.2 million, or 36.6%; an increase in gross profit of $88.3 million, or 29.7%; and an increase in net income of $60.1 million, or 30.0%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $1.08 compared to $0.83 last year, an increase of 30.1%.
Excluding the impact of certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the three months ended October 31, 2021 and 2020, were $1.07, and $0.79, respectively, which was an increase of 35.4%. 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, November 18, 2021, 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 February 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 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 October 31,
2021
2020
% Change
Service revenues and vehicle sales:
Service revenues
$
667,818
$
515,372
29.6
%
Vehicle sales
142,314
77,568
83.5
%
Total service revenues and vehicle sales
810,132
592,940
36.6
%
Operating expenses:
Yard operations
271,276
206,986
31.1
%
Cost of vehicle sales
126,408
64,360
96.4
%
Yard depreciation and amortization
26,437
23,294
13.5
%
Yard stock-based compensation
981
1,531
(35.9)
%
Gross profit
385,030
296,769
29.7
%
General and administrative
41,115
35,138
17.0
%
General and administrative depreciation and amortization
5,323
5,655
(5.9)
%
General and administrative stock-based compensation
8,471
7,382
14.8
%
Total operating expenses
480,011
344,346
39.4
%
Operating income
330,121
248,594
32.8
%
Other expense:
Interest expense, net
(5,107)
(5,032)
1.5
%
Other income, net
812
3,253
(75.0)
%
Total other expense
(4,295)
(1,779)
141.4
%
Income before income taxes
325,826
246,815
32.0
%
Income tax expense
65,463
46,530
40.7
%
Net income
$
260,363
$
200,285
30.0
%
Basic net income per common share
$
1.10
$
0.85
29.4
%
Weighted average common shares outstanding
237,068
235,791
0.5
%
Diluted net income per common share
$
1.08
$
0.83
30.1
%
Diluted weighted average common shares outstanding
241,221
239,968
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)
October 31, 2021
July 31, 2021
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash
$
1,298,373
$
1,048,260
Accounts receivable, net
562,637
480,628
Vehicle pooling costs
115,994
94,449
Inventories
48,194
44,968
Income taxes receivable
537
20,012
Prepaid expenses and other assets
14,045
14,294
Total current assets
2,039,780
1,702,611
Property and equipment, net
2,318,701
2,296,624
Operating lease right-of-use assets
123,254
119,487
Intangibles, net
43,914
45,873
Goodwill
354,062
355,717
Other assets
39,141
41,831
Total assets
$
4,918,852
$
4,562,143
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
411,249
$
369,826
Deferred revenue
19,951
20,973
Income taxes payable
37,175
7,760
Current portion of operating and finance lease liabilities
23,536
22,472
Total current liabilities
491,911
421,031
Deferred income taxes
72,166
63,969
Income taxes payable
51,094
52,345
Operating and finance lease liabilities, net of current portion
100,920
97,961
Long-term debt and other liabilities, net of discount
408,940
397,636
Total liabilities
1,125,031
1,032,942
Commitments and contingencies
Stockholders' equity:
Preferred stock
—
—
Common stock
24
24
Additional paid-in capital
776,858
761,834
Accumulated other comprehensive loss
(111,378)
(100,860)
Retained earnings
3,128,317
2,868,203
Total stockholders' equity
3,793,821
3,529,201
Total liabilities and stockholders' equity
$
4,918,852
$
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)
Three Months Ended October 31,
2021
2020
Cash flows from operating activities:
Net income
$
260,363
$
200,285
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost
32,049
29,227
Allowance for credit loss
295
(157)
Equity in losses (earnings) of unconsolidated affiliates
168
(1,741)
Stock-based compensation
9,452
8,913
Gain on sale of property and equipment
(440)
(1,230)
Deferred income taxes
8,319
6,239
Changes in operating assets and liabilities:
Accounts receivable
(82,676)
(57,860)
Vehicle pooling costs
(21,697)
(10,600)
Inventories
(3,463)
(8,259)
Prepaid expenses and other current and non-current assets
3,071
15,236
Operating lease right-of-use assets and lease liabilities
382
153
Accounts payable and accrued liabilities
62,013
42,880
Deferred revenue
(979)
1,251
Income taxes receivable
19,479
25,825
Income taxes payable
26,204
8,371
Net cash provided by operating activities
312,540
258,533
Cash flows from investing activities:
Purchases of property and equipment
(64,696)
(147,093)
Proceeds from sale of property and equipment
813
271
Net cash used in investing activities
(63,883)
(146,822)
Cash flows from financing activities:
Proceeds from the exercise of stock options
5,572
20,014
Payments for employee stock-based tax withholdings
(249)
(489)
Payments of finance lease obligations
(157)
(327)
Net cash provided by financing activities
5,166
19,198
Effect of foreign currency translation
(3,710)
(2,895)
Net increase in cash, cash equivalents, and restricted cash
250,113
128,014
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
$
1,298,373
$
605,732
Supplemental disclosure of cash flow information:
Interest paid
$
5,080
$
4,762
Income taxes paid, net of refunds
$
10,089
$
6,157
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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 October 31,
2021
2020
GAAP net income
$
260,363
$
200,285
Effect of recognizing tax benefit on exercise of stock-based compensation
(2,987)
(11,773)
Non-GAAP net income
$
257,376
$
188,512
GAAP net income per diluted common share
$
1.08
$
0.83
Non-GAAP net income per diluted common share
$
1.07
$
0.79
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
