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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Copart Reports First Quarter Fiscal 2022 Financial Results

November 17, 2021 GMT

DALLAS--(BUSINESS WIRE)--Nov 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.

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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

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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.

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.

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

%

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

 

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

 

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

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211117006342/en/

CONTACT: Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer

972-391-5090 ormelissa.hunter@copart.com

KEYWORD: TEXAS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: GENERAL AUTOMOTIVE OTHER AUTOMOTIVE PERFORMANCE & SPECIAL INTEREST AUTOMOTIVE

SOURCE: Copart, Inc.

Copyright Business Wire 2021.

PUB: 11/17/2021 04:45 PM/DISC: 11/17/2021 04:46 PM

http://www.businesswire.com/news/home/20211117006342/en