Copart, Inc. (NASDAQ:CPRT) today reported financial results for the quarter ended April 30, 2024.

For the three months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.13 billion, $525.5 million, and $382.3 million, respectively. These represent an increase in revenue of $105.4 million, or 10.3%; an increase in gross profit of $42.1 million, or 8.7%; and an increase in net income attributable to Copart, Inc. of $31.9 million, or 9.1%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.39 compared to $0.36 last year, an increase of 8.3%.

For the nine months ended April 30, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $3.17 billion, $1.5 billion, and $1.0 billion, respectively. These represent an increase in revenue of $295.9 million, or 10.3%; an increase in gross profit of $174.3 million, or 13.6%; and an increase in net income attributable to Copart, Inc. of $150.5 million, or 16.9%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $1.07 compared to $0.92 last year, an increase of 16.3%.

On Thursday, May 16, 2024, 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 September 2024 by visiting www.copart.com/investorrelations.

About Copart

Founded in 1982, Copart is a global leader in online vehicle auctions. Copart's innovative technology and online auction platforms connect vehicle consigners to approximately 1 million members in over 185 countries. Copart offers remarketing services to process and sell vehicles to insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals, and offers vehicles via auction to dealers, dismantlers, rebuilders, exporters, and the general public. With operations at over 250 locations in 11 countries, Copart sold more than 4 million units in the last year. 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 April 30,							Nine Months Ended April 30,
		2024			2023	% Change			2024			2023		% Change
Service revenues and vehicle sales:
Service revenues	$	946,630		$	847,249	11.7	%	$	2,667,911		$	2,363,886		12.9	%
Vehicle sales		180,629			174,582	3.5	%		499,913			508,041		(1.6	)%
Total service revenues and vehicle sales		1,127,259			1,021,831	10.3	%		3,167,824			2,871,927		10.3	%
Operating expenses:
Yard operations		391,256			343,617	13.9	%		1,125,440			1,020,674		10.3	%
Cost of vehicle sales		162,881			159,443	2.2	%		457,596			465,282		(1.7	)%
Yard depreciation and amortization		45,800			33,090	38.4	%		126,111			101,520		24.2	%
Yard stock-based compensation		1,817			2,251	(19.3	)%		5,001			5,038		(0.7	)%
Gross profit		525,505			483,430	8.7	%		1,453,676			1,279,413		13.6	%
General and administrative		76,169			52,395	45.4	%		206,457			144,772		42.6	%
General and administrative depreciation and amortization		4,932			4,281	15.2	%		13,047			13,323		(2.1	)%
General and administrative stock-based compensation		7,201			7,830	(8.0	)%		21,693			25,366		(14.5	)%
Total operating expenses		690,056			602,907	14.5	%		1,955,345			1,775,975		10.1	%
Operating income		437,203			418,924	4.4	%		1,212,479			1,095,952		10.6	%
Other income (expense):
Interest income, net		36,218			17,878	102.6	%		102,179			36,780		177.8	%
Other (expense) income, net		(1,309	)		3,628	(136.1	)%		(8,484	)		(2,096	)	304.8	%
Total other income		34,909			21,506	62.3	%		93,695			34,684		170.1	%
Income before income taxes		472,112			440,430	7.2	%		1,306,174			1,130,636		15.5	%
Income tax expense		90,002			89,999	—	%		266,005			240,680		10.5	%
Net income		382,110			350,431	9.0	%		1,040,169			889,956		16.9	%
Less: Net loss attributable to noncontrolling interest		(181	)		—	100.0	%		(284	)		—		100.0	%
Net income attributable to Copart, Inc.	$	382,291		$	350,431	9.1	%	$	1,040,453		$	889,956		16.9	%

Basic net income per common share	$	0.40		$	0.37	8.1	%	$	1.08		$	0.93		16.1	%
Weighted average common shares outstanding		961,813			953,574	0.9	%		960,143			952,834		0.8	%

Diluted net income per common share	$	0.39		$	0.36	8.3	%	$	1.07		$	0.92		16.3	%
Diluted weighted average common shares outstanding		976,445			967,380	0.9	%		974,226			965,436		0.9	%

Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)
	April 30, 2024			July 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	1,089,995		$	957,395
Investment in held to maturity securities		2,000,334			1,406,589
Accounts receivable, net		822,650			702,038
Vehicle pooling costs		125,001			123,725
Inventories		46,764			39,973
Income taxes receivable		23,402			6,574
Prepaid expenses and other assets		40,983			26,310
Total current assets		4,149,129			3,262,604
Property and equipment, net		3,073,090			2,844,339
Operating lease right-of-use assets		108,859			108,139
Intangibles, net		76,786			62,702
Goodwill		511,372			394,289
Other assets		91,396			65,806
Total assets	$	8,010,632		$	6,737,879

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	506,795		$	440,810
Deferred revenue		28,761			26,117
Income taxes payable		7,388			4,374
Current portion of operating and finance lease liabilities		20,475			21,468
Total current liabilities		563,419			492,769
Deferred income taxes		92,014			89,492
Income taxes payable		67,455			69,193
Operating and finance lease liabilities, net of current portion		91,131			88,082
Long-term debt and other liabilities		427			10,903
Total liabilities		814,446			750,439
Commitments and contingencies
Redeemable non-controlling interest		24,933			—
Stockholders' equity:
Preferred stock		—			—
Common stock		96			96
Additional paid-in capital		1,102,684			938,910
Accumulated other comprehensive loss		(156,807	)		(141,006	)
Retained earnings		6,225,280			5,189,440
Total stockholders' equity		7,171,253			5,987,440
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$	8,010,632		$	6,737,879

Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Nine Months Ended April 30,
		2024			2023
Cash flows from operating activities:
Net income	$	1,040,169		$	889,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost		139,178			115,320
Allowance for credit loss		2,513			1,480
Equity in losses of unconsolidated affiliates		2,580			5,446
Stock-based compensation		26,694			30,404
Gain on sale of property and equipment		(2,169	)		(965	)
Deferred income taxes		(3,093	)		(3,236	)
Changes in operating assets and liabilities:
Accounts receivable		(152,564	)		(115,098	)
Vehicle pooling costs		(1,784	)		(7,300	)
Inventories		(7,316	)		14,870
Prepaid expenses, other current and non-current assets		(39,815	)		(33,830	)
Operating lease right-of-use assets and lease liabilities		1,377			595
Accounts payable, accrued liabilities and other liabilities		40,305			30,314
Deferred revenue		2,660			5,516
Income taxes receivable		(16,846	)		49,430
Income taxes payable		1,454			22,731
Net cash provided by operating activities		1,033,343			1,005,633

Cash flows from investing activities:
Purchases of property and equipment		(373,104	)		(346,524	)
Cash acquired in connection with acquisition		17,662			—
Proceeds from sale of property and equipment		3,453			20,509
Investment in held to maturity securities		(2,478,505	)		—
Proceeds from the sale of held to maturity securities		1,915,000			—
Investment in unconsolidated affiliate		(1,000	)		(2,744	)
Net cash used in investing activities		(916,494	)		(328,759	)

Cash flows from financing activities:
Proceeds from the exercise of stock options		20,377			27,220
Proceeds from the issuance of Employee Stock Purchase Plan shares		5,957			5,363
Payments for employee stock-based tax withholdings		(4,613	)		(3,026	)
Issuance of principal on revolver facility		—			21,481
Principal payments on revolver facility		(10,818	)		—
Payments of finance lease obligations		(14	)		(18	)
Net cash provided by financing activities		10,889			51,020
Effect of foreign currency translation		4,862			2,053
Net increase in cash, cash equivalents, and restricted cash		132,600			729,947
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	$	1,089,995		$	2,114,183
Supplemental disclosure of cash flow information:
Interest paid	$	1,946		$	1,586
Income taxes paid, net of refunds	$	255,268		$	171,438

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