Copart, Inc. (NASDAQ:CPRT) today reported financial results for the quarter ended October 31, 2023.

For the three months ended October 31, 2023, revenue, gross profit, and net income were $1,020.4 million, $464.0 million, and $332.5 million, respectively. These represent an increase in revenue of $127.0 million, or 14.2%; an increase in gross profit of $94.5 million, or 25.6%; and an increase in net income of $86.7 million, or 35.3%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.34 compared to $0.25 last year, an increase of 36.0%.

On Thursday, November 16, 2023, 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 February 2024 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 190 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 250 locations in 11 countries, Copart has more than 265,000 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.

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 October 31,
		2023			2022		% Change
Service revenues and vehicle sales:
Service revenues		859,536		$	726,840		18.3	%
Vehicle sales		160,880			166,532		(3.4	)%
Total service revenues and vehicle sales		1,020,416			893,372		14.2	%
Operating expenses:
Yard operations		367,842			336,972		9.2	%
Cost of vehicle sales		147,896			151,112		(2.1	)%
Yard depreciation and amortization		39,103			34,360		13.8	%
Yard stock-based compensation		1,556			1,445		7.7	%
Gross profit		464,019			369,483		25.6	%
General and administrative		57,631			44,535		29.4	%
General and administrative depreciation and amortization		4,061			4,698		(13.6	)%
General and administrative stock-based compensation		6,951			8,747		(20.5	)%
Total operating expenses		625,040			581,869		7.4	%
Operating income		395,376			311,503		26.9	%
Other income (expense):
Interest income, net		32,005			4,422		623.8	%
Other expense, net		(4,072	)		(2,822	)	44.3	%
Total other income		27,933			1,600		1645.8	%
Income before income taxes		423,309			313,103		35.2	%
Income tax expense		90,777			67,255		35.0	%
Net income	$	332,532		$	245,848		35.3	%
Less: Net income attributable to noncontrolling interest		5			—		100.0	%
Net income attributable to Copart, Inc.	$	332,527		$	245,848		35.3	%

Basic net income per common share	$	0.35		$	0.26		34.6	%
Weighted average common shares outstanding		958,127			952,198		0.6	%

Diluted net income per common share	$	0.34		$	0.25		36.0	%
Diluted weighted average common shares outstanding		971,682			964,336		0.8	%

Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

	October 31, 2023			July 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	2,581,567		$	957,395
Investment in held to maturity securities		48,982			1,406,589
Accounts receivable, net		755,635			702,038
Vehicle pooling costs		127,512			123,725
Inventories		42,631			39,973
Income taxes receivable		418			6,574
Prepaid expenses and other assets		28,145			26,310
Total current assets		3,584,890			3,262,604
Property and equipment, net		2,943,537			2,844,339
Operating lease right-of-use assets		121,690			108,139
Intangibles, net		81,832			62,702
Goodwill		500,926			394,289
Other assets		100,911			65,806
Total assets	$	7,333,786		$	6,737,879

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	495,201		$	440,810
Deferred revenue		27,174			26,117
Income taxes payable		80,106			4,374
Current portion of operating and finance lease liabilities		21,936			21,468
Total current liabilities		624,417			492,769
Deferred income taxes		91,821			89,492
Income taxes payable		69,982			69,193
Operating and finance lease liabilities, net of current portion		101,465			88,082
Long-term debt and other liabilities		9,462			10,903
Total liabilities		897,147			750,439
Commitments and contingencies
Redeemable non-controlling interest		25,222			—
Stockholders' equity:
Preferred stock		—			—
Common stock		96			96
Additional paid-in capital		1,067,424			938,910
Accumulated other comprehensive loss		(177,359	)		(141,006	)
Retained earnings		5,521,256			5,189,440
Total stockholders' equity		6,411,417			5,987,440
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$	7,333,786		$	6,737,879

Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Three Months Ended October 31,
		2023			2022
Cash flows from operating activities:
Net income	$	332,532		$	245,848
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost		43,350			39,327
Allowance for credit loss		1,049			1,396
Equity in (earnings) losses of unconsolidated affiliates		(4,764	)		2,122
Stock-based compensation		8,317			10,192
Gain on sale of property and equipment		(1,050	)		(113	)
Deferred income taxes		(988	)		(1,780	)
Changes in operating assets and liabilities:
Accounts receivable		(77,086	)		(53,837	)
Vehicle pooling costs		(4,377	)		(4,643	)
Inventories		(3,669	)		4,020
Prepaid expenses, other current and non-current assets		(40,543	)		(35,303	)
Operating lease right-of-use assets and lease liabilities		366			52
Accounts payable, accrued liabilities and other liabilities		38,153			40,372
Deferred revenue		1,101			(588	)
Income taxes receivable		6,135			44,595
Income taxes payable		76,720			19,899
Net cash provided by operating activities		375,246			311,559

Cash flows from investing activities:
Purchases of property and equipment		(162,260	)		(152,655	)
Cash acquired in connection with acquisition		17,662			—
Proceeds from sale of property and equipment		924			185
Proceeds from the sale of held to maturity securities		1,380,000			—
Investment in unconsolidated affiliate		(1,001	)		—
Net cash provided by (used in) investing activities		1,235,325			(152,470	)

Cash flows from financing activities:
Proceeds from the exercise of stock options		8,123			1,061
Payments for employee stock-based tax withholdings		(711	)		(295	)
Payments of finance lease obligations		(5	)		(7	)
Net cash provided by financing activities		7,407			759
Effect of foreign currency translation		6,194			(4,693	)
Net increase in cash, cash equivalents, and restricted cash		1,624,172			155,155
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	$	2,581,567		$	1,539,391
Supplemental disclosure of cash flow information:
Interest paid	$	96		$	64
Income taxes paid, net of refunds	$	9,066		$	5,700

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