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Published: 2022-09-07 00:00:00 ET
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Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports Fourth Quarter Fiscal 2022 Financial Results
Dallas, Texas. (September 7, 2022) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2022.
For the three months ended July 31, 2022, revenue, gross profit, and net income were $883.4 million, $381.6 million, and $263.7 million, respectively. These represent an increase in revenue of $134.8 million, or 18.0%; an increase in gross profit of $24.1 million, or 6.7%; and an increase in net income of $7.8 million, or 3.0%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2022 were $1.10 compared to $1.06 last year, an increase of 3.8%.
For the year ended July 31, 2022, revenue, gross profit, and net income were $3.5 billion, $1.6 billion, and $1.1 billion, respectively. These represent an increase in revenue of $808.4 million, or 30.0%; an increase in gross profit of $263.1 million, or 19.6%; and an increase in net income of $153.6 million, or 16.4%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2022 were $4.52 compared to $3.90 last year, an increase of 15.9%.
Excluding the impact of acquisition related integration charges, extinguishment of debt, and certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the three months ended July 31, 2022 and 2021, were $1.13 and $1.03, respectively, which was an increase of 9.7%. Excluding the impact of certain discrete income tax items, acquisition related integration charges, extinguishment of debt, certain legal matters, and certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the year ended July 31, 2022 and 2021, were $4.46 and $3.70, respectively, which was an increase of 20.5%. 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, September 8, 2022, at 11:00 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 at www.copart.com/investorrelations. A replay of the call will be available through November 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 discrete income tax items, acquisition related integration charges, extinguishment of debt, certain legal matters, 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:Brooke Boston, Executive Assistant, Office of the Chief Financial Officer
brooke.boston@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 
July 31,		Twelve Months Ended 
July 31,
20222021% Change20222021% Change
Service revenues and vehicle sales:
Service revenues$707,816 $620,048 14.2 %$2,853,040 $2,291,867 24.5 %
Vehicle sales175,572 128,582 36.5 %647,881 400,644 61.7 %
Total service revenues and vehicle sales883,388 748,630 18.0 %3,500,921 2,692,511 30.0 %
Operating expenses:   
Yard operations307,717 250,396 22.9 %1,186,457 897,086 32.3 %
Cost of vehicle sales161,255 113,641 41.9 %585,203 346,128 69.1 %
Yard depreciation and amortization31,530 26,567 18.7 %117,913 100,917 16.8 %
Yard stock-based compensation1,314 543 142.0 %5,127 5,289 (3.1)%
Gross profit381,572 357,483 6.7 %1,606,221 1,343,091 19.6 %
General and administrative43,257 39,652 9.1 %177,314 149,978 18.2 %
General and administrative depreciation and amortization4,803 3,097 55.1 %20,072 21,054 (4.7)%
General and administrative stock-based compensation8,719 13,234 (34.1)%33,838 35,633 (5.0)%
Total operating expenses558,595 447,130 24.9 %2,125,924 1,556,085 36.6 %
Operating income324,793 301,500 7.7 %1,374,997 1,136,426 21.0 %
Other expense:   
Interest expense, net(2,656)(5,020)(47.1)%(16,688)(20,247)(17.6)%
Loss on extinguishment of debt(16,759)— 100.0 %(16,759)— 100.0 %
Other income, net(1,910)2,564 (174.5)%(596)5,667 (110.5)%
Total other expense(21,325)(2,456)768.3 %(34,043)(14,580)133.5 %
Income before income taxes303,468 299,044 1.5 %1,340,954 1,121,846 19.5 %
Income tax expense39,733 43,070 (7.7)%250,824 185,351 35.3 %
Net income$263,735 $255,974 3.0 %$1,090,130 $936,495 16.4 %
Basic net income per common share$1.11 $1.08 2.8 %$4.59 $3.96 15.9 %
Weighted average common shares outstanding237,841 236,679 0.5 %237,419 236,252 0.5 %
Diluted net income per common share$1.10 $1.06 3.8 %$4.52 $3.90 15.9 %
Diluted weighted average common shares outstanding240,736 240,714 — %241,151 240,290 0.4 %

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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)
July 31, 2022July 31, 2021
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash$1,384,236 $1,048,260 
Accounts receivable, net578,573 480,628 
Vehicle pooling costs112,242 94,449 
Inventories58,791 44,968 
Income taxes receivable49,882 20,012 
Prepaid expenses and other assets18,731 14,294 
Total current assets2,202,455 1,702,611 
Property and equipment, net2,485,764 2,296,624 
Operating lease right-of-use assets116,303 119,487 
Intangibles, net54,680 45,873 
Goodwill401,954 355,717 
Other assets47,708 41,831 
Total assets$5,308,864 $4,562,143 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$399,034 $369,826 
Deferred revenue20,061 20,973 
Income taxes payable— 7,760 
Current portion of operating and finance lease liabilities21,794 22,472 
Total current liabilities440,889 421,031 
Deferred income taxes80,060 63,969 
Income taxes payable64,637 52,345 
Operating and finance lease liabilities, net of current portion95,683 97,961 
Long-term debt and other liabilities, net of discount1,996 397,636 
Total liabilities683,265 1,032,942 
Commitments and contingencies
Stockholders’ equity:
Preferred stock— — 
Common stock24 24 
Additional paid-in capital838,532 761,834 
Accumulated other comprehensive loss(169,365)(100,860)
Retained earnings3,956,408 2,868,203 
Total stockholders’ equity4,625,599 3,529,201 
Total liabilities and stockholders’ equity$5,308,864 $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)
Year Ended July 31,
20222021
Cash flows from operating activities:
Net income$1,090,130 $936,495 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization, including debt cost138,605 123,084 
Allowance for credit loss1,349 (1,121)
Equity in (earnings) losses of unconsolidated affiliates284 (3,240)
Stock-based compensation38,965 40,922 
Gain on sale of property and equipment(939)(1,480)
Loss on extinguishment of debt16,759 — 
Deferred income taxes17,017 (7,951)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable(97,750)(127,513)
Vehicle pooling costs(18,342)(20,476)
Inventories(10,851)(24,602)
Prepaid expenses and other current and non-current assets(5,156)7,025 
Operating lease right-of-use assets and lease liabilities715 570 
Accounts payable and accrued liabilities36,306 44,613 
Deferred revenue(574)8,781 
Income taxes receivable(29,884)6,739 
Income taxes payable49 9,045 
Net cash provided by operating activities1,176,683 990,891 
Cash flows from investing activities:
Purchases of property and equipment(337,448)(462,996)
Purchases of assets and liabilities in connection with acquisitions, net of cash acquired(106,604)(5,000)
Proceeds from sale of property and equipment4,333 2,530 
Purchase of held to maturity securities(374,866)— 
Proceeds from the sale of held to maturity securities374,866 — 
Investment in unconsolidated affiliate(2,591)— 
Net cash used in investing activities(442,310)(465,466)
Cash flows from financing activities:
Proceeds from the exercise of stock options28,108 39,049 
Proceeds from the issuance of Employee Stock Purchase Plan shares9,625 9,136 
Payments for employee stock-based tax withholdings(1,925)(6,145)
Debt offering costs(1,212)— 
Principal payments on long-term debt(416,759)— 
Payments of finance lease obligations(530)(1,118)
Net cash (used in) provided by financing activities(382,693)40,922 
Effect of foreign currency translation(15,704)4,195 
Net increase in cash, cash equivalents, and restricted cash335,976 570,542 
Cash, cash equivalents, and restricted cash at beginning of period1,048,260 477,718 
Cash, cash equivalents, and restricted cash at end of period$1,384,236 $1,048,260 
Supplemental disclosure of cash flow information:
Interest paid$18,539 $19,723 
Income taxes paid, net of refunds$263,226 $178,241 

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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 
July 31,		Twelve Months Ended 
July 31,
2022202120222021
GAAP net income$263,735 $255,974 $1,090,130 $936,495 
Effect of certain discrete income tax items— — (17,490)(19,764)
Effect of certain legal matters, net of tax— — 5,092 — 
Effect of extinguishment of debt, net of tax12,929 — 12,929 — 
Effect of acquisition related integration charges, net of tax— 2,713 — 2,713 
Effect of recognizing tax benefit on exercise of stock-based compensation(5,077)(10,962)(14,274)(29,812)
Non-GAAP net income$271,587 $247,725 $1,076,387 $889,632 
GAAP net income per diluted common share$1.10 $1.06 $4.52 $3.90 
Non-GAAP net income per diluted common share$1.13 $1.03 $4.46 $3.70 

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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000