Copart Reports Third Quarter Fiscal 2021 Financial Results
Dallas, Texas. (May 19, 2021) - Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2021.
For the three months ended April 30, 2021, revenue, gross profit, and net income were $733.9 million, $381.3 million, and $286.8 million, respectively. These represent an increase in revenue of $183.6 million, or 33.4%; an increase in gross profit of $138.7 million, or 57.2%; and an increase in net income of $139.3 million, or 94.5%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $1.19 compared to $0.62 last year, an increase of 91.9%.
For the nine months ended April 30, 2021, revenue, gross profit, and net income were $1.9 billion, $985.6 million, and $680.5 million, respectively. These represent an increase in revenue of $264.0 million, or 15.7%; an increase in gross profit of $228.2 million, or 30.1%; and an increase in net income of $146.1 million, or 27.3%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $2.83 compared to $2.24 last year, an increase of 26.3%.
Excluding the impact of certain discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to stock-based compensation, non-GAAP fully diluted earnings per share for the three months ended April 30, 2021 and 2020, were $1.09, and $0.58, respectively, which was an increase of 87.9%. Excluding the impact of certain discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to stock-based compensation, non-GAAP fully diluted earnings per share for the nine months ended April 30, 2021 and 2020, were $2.67, and $1.87, respectively, which was an increase of 42.8%. 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, May 20, 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 August 2021 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 salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters, and in some jurisdictions, to the general public. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers and individuals. With operations at over 200 locations in 11 countries, Copart has more than 175,000 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, foreign currency-related gains and losses, certain income tax benefits and payroll taxes 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. From a financial planning and analysis perspective, Copart management analyzes its operating results with and without the impact of certain discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to stock-based compensation.
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
April 30,
Nine Months Ended
April 30,
2021
2020
2021
2020
Service revenues and vehicle sales:
Service revenues
$
623,846
$
491,582
$
1,671,819
$
1,489,472
Vehicle sales
110,064
58,778
272,062
190,452
Total service revenues and vehicle sales
733,910
550,360
1,943,881
1,679,924
Operating expenses:
Yard operations
230,794
231,985
646,690
692,547
Cost of vehicle sales
94,498
53,987
232,487
170,651
Yard depreciation and amortization
25,876
20,333
74,350
55,384
Yard stock-based compensation
1,401
1,442
4,746
3,971
Gross profit
381,341
242,613
985,608
757,371
General and administrative
39,174
37,017
110,326
115,102
General and administrative depreciation and amortization
6,090
6,382
17,957
18,627
General and administrative stock-based compensation
7,966
4,113
22,399
13,258
Total operating expenses
405,799
355,259
1,108,955
1,069,540
Operating income
328,111
195,101
834,926
610,384
Other expense:
Interest expense, net
(5,346)
(5,578)
(15,227)
(14,068)
Other income, net
770
2,277
3,103
2,640
Total other expense
(4,576)
(3,301)
(12,124)
(11,428)
Income before income taxes
323,535
191,800
822,802
598,956
Income tax expense
36,739
44,313
142,281
64,582
Net income
$
286,796
$
147,487
$
680,521
$
534,374
Basic net income per common share
$
1.21
$
0.63
$
2.88
$
2.30
Weighted average common shares outstanding
236,396
234,133
236,110
232,647
Diluted net income per common share
$
1.19
$
0.62
$
2.83
$
2.24
Diluted weighted average common shares outstanding
240,208
238,591
240,149
238,564
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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)
April 30, 2021
July 31, 2020
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash
$
911,890
$
477,718
Accounts receivable, net
434,873
350,207
Vehicle pooling costs
86,685
73,684
Inventories
39,229
20,080
Income taxes receivable
10,588
26,740
Prepaid expenses and other assets
16,106
15,330
Total current assets
1,499,371
963,759
Property and equipment, net
2,227,531
1,941,719
Operating lease right-of-use assets
125,709
118,455
Intangibles, net
42,535
47,772
Goodwill
347,515
343,622
Other assets
39,285
39,934
Total assets
$
4,281,946
$
3,455,261
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
359,239
$
318,530
Deferred revenue
20,660
8,233
Income taxes payable
9,140
3,709
Current portion of operating and finance lease liabilities
24,006
25,572
Total current liabilities
413,045
356,044
Deferred income taxes
57,767
71,686
Income taxes payable
55,637
44,965
Operating and finance lease liabilities, net of current portion
108,487
96,150
Long-term debt and other liabilities, net of discount
397,633
396,900
Total liabilities
1,032,569
965,745
Commitments and contingencies
Stockholders' equity:
Preferred stock
-
-
Common stock
24
24
Additional paid-in capital
733,581
672,727
Accumulated other comprehensive loss
(101,664)
(121,088)
Retained earnings
2,617,436
1,937,853
Total stockholders' equity
3,249,377
2,489,516
Total liabilities and stockholders' equity
$
4,281,946
$
3,455,261
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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)
Nine Months Ended April 30,
2021
2020
Cash flows from operating activities:
Net income
$
680,521
$
534,374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost
93,141
76,756
Allowance for credit loss
(1,429)
1,332
Equity in (earnings) losses of unconsolidated affiliates
(2,121)
1,918
Stock-based compensation
27,145
17,229
Gain on sale of property and equipment
(1,257)
(1,745)
Deferred income taxes
(14,130)
9,265
Changes in operating assets and liabilities:
Accounts receivable
(81,593)
19,102
Vehicle pooling costs
(12,777)
661
Inventories
(18,788)
1,209
Prepaid expenses and other current and non-current assets
6,879
6,268
Operating lease right-of-use assets and lease liabilities
389
(221)
Accounts payable and accrued liabilities
47,914
(15,636)
Deferred revenue
8,467
1,365
Income taxes receivable
16,152
(12,076)
Income taxes payable
13,692
9,168
Other liabilities
-
1,999
Net cash provided by operating activities
762,205
650,968
Cash flows from investing activities:
Purchases of property and equipment, including acquisitions
(364,395)
(490,998)
Proceeds from sale of property and equipment
599
2,153
Net cash used in investing activities
(363,796)
(488,845)
Cash flows from financing activities:
Proceeds from the exercise of stock options
28,829
55,656
Proceeds from the issuance of Employee Stock Purchase Plan shares
4,880
3,955
Payments for employee stock-based tax withholdings
(938)
(102,191)
Payments of finance lease obligations
(962)
-
Net cash provided by (used in) financing activities
31,809
(42,580)
Effect of foreign currency translation
3,954
525
Net increase in cash, cash equivalents, and restricted cash
434,172
120,068
Cash, cash equivalents, and restricted cash at beginning of period
477,718
186,319
Cash, cash equivalents, and restricted cash at end of period
$
911,890
$
306,387
Supplemental disclosure of cash flow information:
Interest paid
$
14,736
$
14,514
Income taxes paid, net of refunds
$
126,303
$
59,302
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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
April 30,
Nine Months Ended
April 30,
2021
2020
2021
2020
GAAP net income
$
286,796
$
147,487
$
680,521
$
534,374
Effect of certain discrete income tax items
(19,764)
-
(19,764)
(3,008)
Effect of foreign currency-related losses (gains), net of tax
303
(490)
351
(1,169)
Effect of recognizing tax benefit on exercise of stock-based compensation
(4,910)
(8,768)
(18,850)
(85,965)
Effect of payroll taxes on certain executive stock-based compensation, net of tax
-
-
-
2,867
Non-GAAP net income
$
262,425
$
138,229
$
642,258
$
447,099
GAAP net income per diluted common share
$
1.19
$
0.62
$
2.83
$
2.24
Non-GAAP net income per diluted common share
$
1.09
$
0.58
$
2.67
$
1.87
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
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Copart Inc. published this content on 19 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2021 20:43:01 UTC.
Copart, Inc. is one of the world's leading providers of online auction and vehicle resale services. Net sales break down by activity as follows:
- services (82.6%);
- vehicle sales (17.4%).
The United States account for 82.4% of net sales.