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CPRT · COPART INC

30 filings

10-K

CPRT 10-K Annual Reports

COPART INC - 30 annual reports

Filing record · 2016–202610-K1110-Q328-K93

2026
COPART INC Annual Report, Year Ended Jul 31, 2026
Copart's fiscal 2026 (year ended July 31, 2026) showed a modest top-line picture with margin compression and heavier capital return. Total service revenues and vehicle sales were $4.67 billion, up roughly 0.4% from $4.65 billion in fiscal 2025, while operating income fell to $1.65 billion from $1.70 billion and the operating margin slipped to about 35.4% from 36.5%. Net income attributable to Copart was $1.48 billion, down about 4.4%, and diluted EPS was $1.55 versus $1.59. Growth was concentrated internationally: International service revenues rose 12.4%, while U.S. service revenues declined 1.8%, largely because fiscal 2025 included one-time hurricane Helene and Milton revenue. Operating costs rose faster than revenue, with facility operations up 1.1%, G&A up 7.0%, and International facility costs up 11.2%. Cash generation and capital allocation were the major stories. Operating cash flow fell 10.8% to $1.60 billion. Copart repurchased 43.4 million shares for $1.6 billion, its first buybacks in several years, and cash, equivalents and restricted cash fell $872.6 million to $1.91 billion. Cash held in held-to-maturity Treasury bills rose to $2.58 billion, so total liquidity remains substantial. The company also refinanced into a $1.25 billion unsecured revolver maturing in 2031, with $1.23 billion unused. The most significant forward-looking item is the September 10, 2026 agreement to acquire ACV Auctions for $10.50 per share in cash, an implied equity value of about $1.9 billion, expected to close by calendar year-end 2026 subject to a tender of a majority of shares and HSR clearance. This would be a meaningful strategic move into whole-car remarketing and will consume most of the company's cash. Investors should also weigh the disclosed U.S. Department of Justice money-laundering investigation, which the company says it cannot yet size, along with ongoing tariff and cross-border trade risks.
Sep 29, 2026
2025
COPART INC Annual Report, Year Ended Jul 31, 2025
Copart (CPRT) closed fiscal 2025 (year ended July 31, 2025) with total service revenues and vehicle sales of $4.65 billion, up about 9.7% from $4.24 billion in fiscal 2024, and operating income of $1.70 billion, up 7.9%. Net income attributable to Copart rose to $1.55 billion from $1.36 billion, and diluted EPS increased to $1.59 from $1.40. Growth was broad-based: service revenues grew 11.4%, with the U.S. up 10.4% and International up 18.9%, driven mainly by higher revenue per car and volume. Operating margin edged down to 36% from 37% as facility operations costs rose 13.7%, partly due to roughly $56 million in one-time costs tied to Hurricanes Helene and Milton. Effective tax rate fell to 18.3% from 20.5%, helped by a $55.0 million FDII benefit and $36.7 million in excess stock option tax benefits. Balance sheet strength stands out. Cash, cash equivalents and restricted cash more than doubled to $2.78 billion, and held-to-maturity Treasury investments reached $2.01 billion. Operating cash flow rose 22% to $1.80 billion, against capital expenditures and acquisitions of $570 million. The company has no outstanding borrowings under its $1.25 billion revolver, and it repurchased no shares in fiscal 2025, 2024 or 2023, leaving $325.8 million of authorization available. It has never paid a cash dividend. Investors should weigh the strong cash generation and growth against concentration in insurance-company sellers (81% of vehicles), exposure to hurricane and weather volatility, and an ongoing U.S. Department of Justice investigation into anti-money-laundering practices. The company has not quantified any potential loss from that inquiry. Growth drivers include continued facility expansion (six U.S. and International openings in fiscal 2025), rising total-loss frequency and an aging vehicle fleet (average age 12.8 years in 2025 vs. 11.1 in 2012), and higher average selling prices. Management also flagged a new financial system rollout that will continue in stages and that will become a significant component of internal controls. Internal controls were assessed as effective by management and by Ernst & Young LLP.
Sep 26, 2025
2024
COPART INC Annual Report, Year Ended Jul 31, 2024
Copart (CPRT) reported fiscal 2024 (year ended July 31, 2024) results that reflect continued top-line growth and strong profitability. Total service revenues and vehicle sales rose to $4.24 billion, up about 9.5% from $3.87 billion in fiscal 2023, driven mainly by U.S. service revenue growth of 10.0% on higher volume and fee optimization. Operating income reached $1.57 billion (37% operating margin, versus 39% in the prior two years), and net income attributable to Copart was $1.36 billion, or $1.40 per diluted share, up from $1.28. Margin compression came from yard operations expense rising 12.7% and G&A rising 33.9%, which included Purple Wave consolidation and higher labor and legal costs. The balance sheet is conservative. Cash, cash equivalents and restricted cash were $1.51 billion, held-to-maturity Treasury bills were $1.91 billion, and the company had no outstanding borrowings under its $1.25 billion revolving facility at year end. Operating cash flow was $1.47 billion and capital spending was $511 million. Copart again paid no dividend and repurchased no shares during the year, retaining all capital for growth and an unused buyback authorization of about 326 million shares. Investors should weigh the strong cash generation and growth runway from new facilities and international expansion against several watch items. The most notable is an ongoing U.S. Department of Justice investigation into possible money laundering violations tied to auction platform members, for which the company cannot yet estimate a loss range. Other risks include dependence on insurance company sellers (81% of vehicles processed), weather-driven volume swings, and exposure to commodity, used-car and foreign exchange prices.
Sep 30, 2024
2023
COPART INC Annual Report, Year Ended Jul 31, 2023
Copart (CPRT) closed fiscal 2023 (year ended July 31, 2023) with record results: total service revenues and vehicle sales of $3.87 billion (up 10.5% from $3.50 billion), operating income of $1.49 billion (up 8.1%), and net income of $1.24 billion (up 13.5%). Diluted EPS was $1.28 versus $1.13 in fiscal 2022, though these figures are restated for the two-for-one stock splits effected in November 2022 and August 2023. Growth was driven mainly by higher average auction selling prices and volume in the U.S. (service revenues up 12.2%), while International service revenues rose 11.4%, helped by 37% growth in vehicle sales. Operating margin held at about 39%, though yard operations costs rose 15.9% on fuel, subhaul, labor and Hurricane Ian costs. Balance sheet strength stands out. Cash, cash equivalents and restricted cash were $957 million, plus $1.41 billion in newly purchased held-to-maturity Treasury bills, and the company carries only $11 million of revolver borrowings against a $1.25 billion facility. Working capital rose to $2.77 billion and stockholders' equity reached $5.99 billion. Capital expenditures roughly doubled to $517 million, reflecting facility expansion. Management opened 8 new U.S. facilities and other sites and, notably, did not repurchase any shares in fiscal 2023, retaining capital for flexibility. The company has never paid a cash dividend. Key risks include dependence on insurance-company sellers (83% of vehicles processed), weather-driven volume swings, pending U.K. CMA review of the Hills Motors acquisition (which was approved in July 2023 per the notes), international expansion and currency exposure, cybersecurity (a ransomware attack hit an immaterial subsidiary in March 2023), and pressure from fuel and commodity prices. Ernst & Young issued an unqualified opinion on both the financial statements and internal controls, with no critical audit matters.
Sep 28, 2023
2022
COPART INC Annual Report, Year Ended Jul 31, 2022
Copart (CPRT) reported fiscal 2022 (year ended July 31, 2022) total service revenues and vehicle sales of $3.50 billion, up 30% from $2.69 billion in fiscal 2021, with operating income of $1.37 billion (39% operating margin, versus 42% in fiscal 2021) and net income of $1.09 billion, up 16%. Diluted EPS was $4.52 versus $3.90. Growth was driven by a 25.6% rise in U.S. service revenue, supported by higher revenue per vehicle amid tight used-vehicle supply and higher miles driven after reopening. Vehicle sales, where Copart takes principal risk, grew 62% to $648 million, while cost of vehicle sales rose 69%, so this higher-risk principal business dilutes margins. Operating margin compression was driven by yard operations expense growth of 30.5%, partly from Hurricane Ida costs and subhauling and labor inflation. Balance sheet strength improved meaningfully. Cash, cash equivalents, and restricted cash reached $1.38 billion, up 32%, and the company had zero borrowings under its $1.25 billion revolving facility. Copart retired its $400 million senior notes in May 2022 at a cost of $420.6 million, including a $16.8 million make-whole payment, which produced a one-time loss on extinguishment of debt. Operating cash flow was $1.18 billion, while capital expenditures fell to $337 million from $463 million. The company repurchased no shares in fiscal 2022 and has $81.5 million of authorization remaining, and it has never paid a cash dividend. Management is considering buybacks, dividends, and acquisitions for excess cash. Key risks flagged include dependence on a limited number of large insurance sellers (80% of vehicles came from insurers), expansion into international markets (about 16% of revenue), a pending U.K. Competition and Markets Authority review of the Hills Motors acquisition, cybersecurity exposure, and the 1% excise tax on share repurchases enacted under the Inflation Reduction Act. Weather and total loss frequency remain key drivers of volume.
Sep 27, 2022
2021
COPART INC Annual Report, Year Ended Jul 31, 2021
Copart (CPRT) reported fiscal 2021 (year ended July 31, 2021) revenue of $2.69 billion, up 22% from $2.21 billion in fiscal 2020, with operating income of $1.14 billion, up 39% from $816 million. Net income reached $936.5 million, or $3.90 diluted EPS, versus $699.9 million and $2.93 in the prior year. Growth was driven mainly by higher revenue per car and rising average auction selling prices in the U.S., partly offset by lower unit volumes during the COVID-19 pandemic, which reduced accident volumes as miles driven fell. Operating margin expanded to 42% from 37%, reflecting operating leverage on higher pricing. U.S. operations generated 84.4% of revenue, while International contributed 15.6%. The company ended the year with $1.05 billion in cash, cash equivalents and restricted cash, up from $478 million, and no borrowings under its $1.05 billion revolving credit facility. Operating cash flow rose to $991 million, while capital expenditures of $463 million were directed toward new yards and facility expansion. Management opened ten new U.S. facilities and one each in Germany and Spain during the year, and it did not repurchase any shares in fiscal 2021 or 2020. About $81.5 million of shares remain authorized under the repurchase program. The company has never paid a cash dividend, and it intends to retain earnings for use in the business. Key risks flagged in the filing include continued COVID-19 disruption to accident and assignment volumes, dependence on a limited number of major insurance sellers, execution risk in international expansion (particularly Germany, where insurers have historically been less involved in vehicle disposition), exposure to foreign currency movements, cybersecurity threats, and possible regulatory or antitrust reviews of U.K. acquisitions. Several components of earnings were also lifted by one-time or discrete items, including $19.8 million of discrete tax benefits and $29.8 million of excess tax benefits from stock option exercises, so underlying growth may be somewhat lower than reported figures suggest.
Sep 27, 2021
2020
COPART INC Annual Report, Year Ended Jul 31, 2020
Copart (CPRT) closed fiscal 2020 (year ended July 31, 2020) with revenues of $2.21 billion, up 8.0% from $2.04 billion in fiscal 2019, and operating income of $816.1 million, up 13.9%. Net income rose to $699.9 million from $591.7 million, and diluted EPS increased to $2.93 from $2.46. Service revenues, the company's core auction fee business, grew 10.9% to $1.95 billion, driven mainly by U.S. volume growth tied to higher total loss frequency and higher average auction selling prices. Operating margin expanded to 37% from 35%, reflecting disciplined yard operations and G&A leverage, although the effective tax rate fell to 12.6% from 16.1% largely due to $92.5 million of excess tax benefits from stock option exercises. The filing also highlights the COVID-19 pandemic as the key near-term risk. Management reported substantial declines in vehicle assignments from March 2020 onward as miles driven fell under shelter-in-place orders. Because most transactional revenue is recognized only at auction completion, management expects the lower volumes to weigh on future quarters, even though the company was deemed an essential business and remained operational. Despite this, the balance sheet strengthened considerably: cash rose to $477.7 million, the revolver was undrawn, liquidity reached $1.5 billion, and the company extended and upsized its revolving credit facility to $1.05 billion with a July 2023 maturity. Capital expenditures of $592 million, up 58%, reflect an aggressive land and yard expansion program, which is the main driver of the large increase in property and equipment to $1.94 billion. For investors, the key tensions are strong underlying growth and profitability versus exposure to pandemic-related volume declines, rising capex intensity, and international expansion risks, including Brexit, currency exposure, and the principal-model businesses in the U.K. and Germany. The company paid no dividends and repurchased no shares in fiscal 2020, instead retaining capital to fund growth.
Sep 28, 2020
2019
COPART INC Annual Report, Year Ended Jul 31, 2019
Copart's fiscal 2019 (year ended July 31, 2019) showed strong top-line and profit growth. Total service revenues and vehicle sales rose to $2.04 billion, up 13.1% from $1.81 billion, while operating income climbed 22.6% to $716.5 million and operating margin expanded to 35% from 32%. Net income reached $591.7 million, or $2.46 per diluted share, versus $418.0 million ($1.73) in fiscal 2018. Part of the net income jump reflects a much lower effective tax rate of 16.1% (versus 25.7% in fiscal 2018, which absorbed the Tax Act's one-time effects), so investors should view the bottom-line gain as partly tax-driven. Growth was led by the U.S. (81.1% of revenue), where service revenue rose 11.0%, and by International, where service revenue grew 12.9% and vehicle sales (which are recognized gross because Copart acts as principal in some markets) rose 37.7%. Balance sheet and cash flow remain healthy. Operating cash flow rose 20.9% to $646.6 million, but capital expenditures of $373.9 million (up 30%) consumed most of it, and cash fell 32% to $186.3 million. Management returned capital through its first buyback in several years: 7.6 million shares for $365.0 million at a weighted average of $47.81. Total debt was stable at $401.2 million, with no borrowings on the $850 million revolver, and the consolidated net leverage ratio was 0.30:1, well inside covenant limits. The company has never paid a cash dividend and states it intends to retain earnings. Key risks flagged in the filing include dependence on insurance company sellers (80% of vehicles processed in fiscal 2019), exposure to international expansion (notably Germany, where insurers have historically been less involved in salvage disposition), a remediated material weakness in IT general controls, an ongoing sales-tax challenge from the Georgia Department of Revenue, and sensitivity to weather, used-car prices, and scrap commodity prices. Subsequent to year-end, CEO A. Jayson Adair exercised 4.0 million options in a cashless exercise.
Sep 30, 2019
2018
COPART INC Annual Report, Year Ended Jul 31, 2018
Copart's fiscal 2018 10-K (year ended July 31, 2018) shows a company operating at high profitability and expanding its footprint. Revenue rose 24.7% to $1.81 billion from $1.45 billion, driven mainly by U.S. volume growth (new insurance contracts, existing supplier growth, and Hurricane Harvey flood-damaged vehicles) and higher average selling prices tied to commodity prices and vehicle mix. Operating income climbed 26.6% to $584.3 million, with operating margin holding at roughly 32%. Net income rose 6.0% to $418.0 million, but the effective tax rate jumped to 25.7% from 10.4%, largely because the prior year benefited from $107.6 million of excess stock-option tax benefits versus $21.3 million this year, and the Tax Cuts and Jobs Act added a provisional transition tax charge. Diluted EPS was $1.73 versus $1.66. The balance sheet strengthened considerably. Cash rose to $274.5 million, the revolver was fully repaid (zero drawn at year-end versus $231.0 million a year earlier), and total debt fell to $399.9 million. Net leverage was 0.21x, and stockholders' equity increased to $1.58 billion. Operating cash flow was $535.1 million, while capital expenditures more than doubled... to $287.9 million, reflecting facility buildouts, land purchases, and technology investment. Management has not repurchased shares in fiscal 2018 or 2017 and has not paid a cash dividend since 1994, though it cites repurchases, debt repayment, dividends, and acquisitions as possible uses of cash. Key risks for investors include concentration in insurance company sellers (78% of vehicles processed), international expansion execution (Germany, Brazil, Middle East, Finland), a pending Georgia sales tax dispute ($2.6 million principal in dispute, after an original $73.8 million assessment), an ongoing KPIT litigation outcome, cybersecurity exposure, and the upcoming ASC 606 adoption, which is expected to reduce retained earnings by $10–15 million on August 1, 2018. Insider ownership of 15.9% and the anti-takeover provisions in the charter also merit attention.
Oct 1, 2018
2017
COPART INC Annual Report, Year Ended Jul 31, 2017
Copart (CPRT) closed fiscal 2017 (year ended July 31, 2017) with record results: revenue rose 14.2% to $1.45 billion and operating income rose 13.5% to $461.3 million. Net income climbed 45.8% to $394.3 million, but the jump was flattered by a one-time tax benefit. The effective tax rate fell to 10.4% (from 31.7%) because of $107.6 million of excess tax benefits from employee stock option exercises under ASU 2016-09. Diluted EPS was $1.66 versus $1.11 a year earlier, and the company generated $492.1 million of operating cash flow. Investors should view the bottom-line growth as stronger than the underlying operating trend, since the normalized tax rate is closer to 30–33%. Growth was driven primarily by the U.S. segment, where service revenues rose 17.8% on higher unit volume from insurance-company contracts and a higher salvage frequency. International service revenues grew 7.8% on a constant-currency basis of roughly 26%, but reported growth was dampened by about $16.4 million of British pound weakness. The company continued aggressive expansion, opening roughly 20 facilities and acquiring Cycle Express (National Powersport Auctions) for about $161 million, which added goodwill and intangibles. Yard operations costs rose 16.4%, and a $19.4 million impairment on capitalized business-operating software was recorded, which is a reminder that the company's ERP replacement effort carries execution risk. The balance sheet strengthened. Stockholders' equity rose to $1.10 billion from $774 million, and the consolidated net leverage ratio was a modest 0.83x. The company made no share repurchases during fiscal 2017 and paid no dividends, retaining cash for expansion. Long-term risks include concentration among insurance-company sellers, the unresolved Georgia sales tax assessment (remaining principal of $2.6 million plus interest), the KPIT litigation, Brexit-related currency exposure, and the cyclical link between salvage volume, used-car prices and accident frequency.
Sep 28, 2017
2016
COPART INC Annual Report, Year Ended Jul 31, 2016
Copart's fiscal 2016 10-K (year ended July 31, 2016) shows a company growing revenue and profit while leaning more heavily on debt and buybacks. Total service revenues and vehicle sales rose 10.7% to $1.27 billion, and operating income rose 18% to $406.5 million, or 32% of revenue versus 30% a year earlier. Net income increased 23% to $270.4 million, and diluted EPS was $2.21 versus $1.67. Growth was driven mainly by the U.S. business, where service revenues climbed 13% on higher volume, partly offset by lower average auction selling prices tied to weaker commodity prices. International service revenue grew 6.3% on a reported basis, though currency headwinds cut about $11.8 million from that figure. Capital allocation was aggressive. Copart spent roughly $458 million on share repurchases, including two Dutch Auction tender offers, and about $174 million on capital expenditures, funded in part by a $500 million increase in revolving credit commitments to $850 million. Cash fell from $456 million to $156 million, and stockholders' equity dropped to $774 million from $964 million. Subsequent to year-end, the company drew $135 million on the revolver and issued about 3.7 million net shares to executives upon option exercises, which is relevant to dilution and liquidity. Key risks for investors include customer concentration in insurance sellers (83% of vehicles processed), international expansion execution and Brexit-related currency exposure, a pending $96.1 million Georgia sales tax assessment and an ongoing KPIT litigation, and sensitivity to salvage frequency, used-car prices, and commodity prices. Management characterized internal controls as effective, and Ernst & Young issued an unqualified audit opinion.
Sep 28, 2016
2015
COPART INC Annual Report, Year Ended Jul 31, 2015
Copart's fiscal 2015 (year ended July 31, 2015) showed solid operating performance with total revenue of $1.146 billion, down 1.5% from $1.163 billion in fiscal 2014, while operating income rose 25% to $344.4 million from $274.9 million. The revenue decline was driven entirely by a 21.6% drop in vehicle sales (principal-basis purchases, largely in the U.K.), while service revenues grew 2.8% to $985.4 million on higher North American and U.K. volumes. Fiscal 2014 operating income was depressed by a $29.1 million software impairment tied to the terminated KPIT ERP project, so the year-over-year margin improvement is partly a comparison effect. Net income increased 23% to $219.8 million, and diluted EPS rose to $1.67 from $1.36. Balance sheet and capital allocation changed meaningfully. In December 2014 Copart raised $700 million of debt (a $300 million secured term loan and $400 million of senior notes due 2024-2029) and used the proceeds to repay the $275 million prior facility and fund a $225.1 million modified Dutch auction tender offer at $36.00 per share in July 2015. Total debt rose to $645.8 million from $302.9 million, and cash climbed to $456.0 million. Stockholders' equity declined to $964.5 million because of the buyback and a $68.5 million cumulative translation loss, reflecting the strengthening U.S. dollar against the British pound and other foreign currencies. Key risks for investors include a Georgia Department of Revenue sales tax assessment of $96.1 million (including penalties and interest) that the company is contesting and believes it has adequately provided for, ongoing litigation with KPIT, expansion into international markets with different operating models, and exposure to vehicle supply concentration, weather, and used-car and commodity price cycles. Management reports that its controls were effective as of July 31, 2015.
Sep 25, 2015
2014
COPART INC Annual Report, Year Ended Jul 31, 2014
Copart's fiscal 2014 10-K (year ended July 31, 2014) shows a company growing revenue and expanding internationally while absorbing a one-time technology write-off. Total service revenues and vehicle sales rose 11.2% to $1.163 billion, with service revenues up 12.8% to $958.4 million, driven mainly by North American volume and U.K. growth. Operating income was essentially flat at $274.9 million (down from $283.0 million), because a $29.1 million impairment from abandoning the KPIT/SAP-based enterprise system and higher G&A (up 19.3%) offset revenue gains. Net income declined slightly to $178.7 million, and diluted EPS fell to $1.36 from $1.39. Cash generation and balance sheet strengthened meaningfully. Operating cash flow rose 31.7% to $262.6 million, cash and equivalents more than doubled to $158.7 million, and total debt fell to $302.9 million from $372.5 million after $75 million of term loan repayments. Stockholders' equity increased to $1.0 billion. Management did not repurchase shares during fiscal 2014 and retained a $47.7 million buyback authorization, and it has never paid a cash dividend. Investors should weigh several risks: an unresolved Georgia sales tax assessment of $73.8 million including penalties and interest, a pending litigation dispute with KPIT, a goodwill base of $283.8 million that depends on acquisitions in new international markets, and a reliance on insurance-company sellers (81% of vehicles processed). The company is also replacing its enterprise operating system with an internally developed one, which carries execution risk.
Sep 29, 2014
2013-A
COPART INC Annual Report (Amendment), Year Ended Jul 31, 2013
Copart, Inc.'s (CPRT) fiscal year ended July 31, 2013, as detailed in their amended Form 10-K, indicates a company operating as a large accelerated filer. The company's core business involves the online auction of used, wholesale, salvage, and insurance damaged vehicles. This filing is an amendment to correct a minor omission in the original filing, specifically regarding the electronic signature for the Consent of Independent Registered Public Accounting Firm. For investors, Copart's business model, focused on remarketing vehicles for insurance companies, auto dealers, and rental car agencies, is a key aspect. The company leverages its proprietary internet auction technology to facilitate these sales. While this specific filing amendment does not provide updated financial performance figures, it confirms the company's robust reporting status and its adherence to SEC regulations, which is crucial for maintaining investor confidence.
Oct 2, 2013
2013
COPART INC Annual Report, Year Ended Jul 31, 2013
Copart's FY2013 10-K (fiscal year ended July 31, 2013) shows a company growing revenue and expanding internationally, while funding growth largely from operations and debt paydown. Revenue rose 13.2% to $1,046.4 million and operating income fell slightly to $283.0 million from $286.4 million, as yard operation and G&A costs grew faster than revenue. Net income declined to $180.0 million from $182.1 million, and diluted EPS was flat at $1.39, supported by a lower share count after heavy buybacks in prior years. The year was defined by expansion: Copart acquired 43 North American facilities (including Salvage Parent, Inc.), plus new sites in Brazil, the UAE, Germany and Spain, and added roughly $267.5 million of goodwill. Capital expenditures rose to $130.3 million and acquisition spending to $84.0 million, which, together with $96.7 million of debt repayments, drove cash down $76.5 million to $63.6 million. Total debt fell to $372.5 million, and stockholders' equity increased to $762.4 million. Management reported that Hurricane Sandy boosted volumes but also added abnormal costs, and that the company is mid-way through an ERP conversion expected to run through fiscal 2015. Key investor watch items include a pending Georgia sales tax assessment of $73.8 million, which management says it has adequately provided for, the risks of entering principal-based markets with inventory exposure, goodwill impairment exposure across new acquisitions, and concentration of revenue in insurance-company sellers (82% of vehicles processed). Share repurchases slowed sharply to $15.0 million in FY2013 from $203.3 million in FY2012, with 47.7 million shares remaining under the authorization.
Sep 30, 2013
2012
COPART INC Annual Report, Year Ended Jul 31, 2012
Copart's fiscal 2012 10-K (year ended July 31, 2012) shows a company growing steadily while returning substantial capital to shareholders. Revenue rose 6.0% to $924.2 million from $872.2 million, and operating income grew 8.0% to $286.4 million. Net income increased 9.5% to $182.1 million, and diluted EPS reached $1.39, up from $1.08. Service revenues, which drive the core insurance-salvage model, grew 6.2% on higher unit volume and higher average selling prices, helped by commodity and used-car price strength. Vehicle sales, mostly from the U.K. principal-model business, rose 4.8%. Capital allocation was a major theme. Copart repurchased 8.9 million shares for $203.3 million during the year, and the board added 40 million shares to the buyback authorization, bringing the total to 98 million. Share count fell from 132.0 million to 124.4 million, which lifted per-share results. The company funded its 2011 tender offer and buybacks with a $500 million term loan, which stood at $443.8 million at year-end. Total debt rose to $444.1 million from $375.8 million, and the company has paid no dividends since its 1994 IPO. Liquidity is adequate, with $140.1 million in cash and $134.9 million in working capital. Key risks for investors include a pending $73.8 million Georgia sales tax assessment that the company has not reserved for, U.K. principal-model exposure that pressures gross margins, a planned ERP system conversion through fiscal 2014, and goodwill of $196.4 million tied largely to U.K. acquisitions. Growth continues through acquisitions and greenfield yards, with 155 facilities at year-end and a first Middle East acquisition in Dubai announced in August 2012.
Oct 1, 2012
2011-A
COPART INC Annual Report (Amendment), Year Ended Jul 31, 2011
Copart, Inc. (CPRT) filed an amendment to its 2011 10-K report primarily to include XBRL-formatted financial data. This filing pertains to the fiscal year ended July 31, 2011. As a well-known seasoned issuer and a large accelerated filer, Copart's core business remains the online auction of used, salvaged, and wholesale vehicles. The amendment itself does not introduce new business or financial information but rather makes the previously filed financial statements (Statements of Earnings, Balance Sheets, Statements of Shareholders' Equity, and Statements of Cash Flows) available in an electronic, machine-readable format as required by the SEC. Investors reviewing this filing should focus on the underlying financial performance reported in the original 10-K, which this amendment supports. The inclusion of XBRL data aims to enhance transparency and ease of analysis for financial data users. Copart's operations, focused on salvaging and reselling vehicles, position it within the automotive aftermarket and insurance services sectors. The company's continued emphasis on its online auction platform is a key operational driver to monitor.
Oct 28, 2011
2011
COPART INC Annual Report, Year Ended Jul 31, 2011
Copart (CPRT) closed fiscal 2011 (year ended July 31, 2011) with revenues of $872.2 million, up 12.9% from $772.9 million in fiscal 2010, and operating income of $265.3 million, up 11% from $239.1 million. Net income rose to $166.4 million, or $2.17 per diluted share, versus $151.6 million, or $1.78, a year earlier. Growth was driven by higher service revenue (up 12.7% to $723.6 million) on increased unit volume, stronger used car and scrap metal pricing, and UK expansion. Part of the revenue increase reflects an accounting change (ASU 2009-13) that accelerated $14.4 million of service revenue and $13.5 million of yard expenses, so underlying growth was somewhat lower than reported. The most significant change in the balance sheet was a capital structure shift. Copart repurchased $739.6 million of stock in fiscal 2011, including a January 2011 tender offer for 12.2 million shares at $38.00, funded by a $400 million term loan. Shares outstanding fell from 84.4 million to 66.0 million, and shareholders' equity dropped from $1.09 billion to $555 million. Total debt rose to about $376 million, and cash fell to $74 million from $268 million. Management states current cash and operating cash flow are sufficient for the next 12 months, and it notes an additional 20 million share buyback authorization approved after year end. Key risks for investors include a $73.8 million Georgia sales tax assessment that management contests and has not accrued, a pending EEOC investigation of its criminal background check policy, dependence on insurance company sellers (about 82% of vehicles), and UK operations that partly run on a principal basis, which weighs on gross margin. The company is also relocating its headquarters from Fairfield, CA to Dallas, TX over the next two years and converting to a new ERP system through fiscal 2013.
Sep 28, 2011
2010
COPART INC Annual Report, Year Ended Jul 31, 2010
Copart (CPRT) closed fiscal 2010 (year ended July 31, 2010) with revenues of $772.9 million, up 4.0% from $743.1 million in fiscal 2009, and operating income of $239.1 million, up 6.1% from $225.3 million. Net income rose 7.5% to $151.6 million, and diluted EPS was $1.78 versus $1.66 a year earlier. Growth was driven mainly by higher average selling prices per vehicle (tied to commodity prices and used car prices) and modest unit volume growth of just over 1%, partly offset by a $25.0 million revenue reduction from the migration of UK contracts from a principal to an agency model. Operating leverage was limited by a 25.3% jump in general and administrative expenses, which reflected increased advertising, non-cash executive compensation tied to the Chairman and CEO grants, and higher headcount. The balance sheet strengthened considerably. Cash and cash equivalents reached $268.2 million, up from $162.7 million, and total debt was negligible at under $1 million. Shareholders' equity grew to $1.09 billion. Operating cash flow was $199.4 million, roughly flat versus prior year, while capital expenditures were $75.8 million. The company used $21.4 million for the D Hales acquisition in the UK and repurchased only 121,251 shares in fiscal 2010, a sharp slowdown from the 6.6 million shares repurchased in fiscal 2008. Management stated that it has no cash dividend history and is considering stock repurchases, dividends, or acquisitions for excess cash. Key risks for investors include reliance on insurance company sellers (about 80% of vehicles processed), the seasonal and weather-driven nature of vehicle supply, growing exposure to the UK principal-model business with inventory and margin risk, goodwill of $175.9 million subject to impairment testing, and a shift to an Internet-only sales model that depends on proprietary VB2 technology. Macroeconomic sensitivity to used car and scrap commodity prices is also significant, since more than 50% of service revenue is tied to the ultimate selling price of vehicles.
Sep 23, 2010
2009-A
COPART INC Annual Report (Amendment), Year Ended Jul 31, 2009
This filing is an amendment to Copart Inc.'s (CPRT) 2009 10-K, specifically addressing corrections to Item 12, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The amendment clarifies the number of shares beneficially owned by director Thomas W. Smith and the total shares owned by all directors and officers as a group. It does not amend or update any other information from the original filing, which was filed on September 29, 2009. Investors should note that this is a technical amendment and does not provide new operational or financial performance data, but rather refines ownership disclosures for key personnel and entities as of October 5, 2009.
Dec 30, 2009
2009
COPART INC Annual Report, Year Ended Jul 31, 2009
Copart (CPRT) closed fiscal 2009 (year ended July 31, 2009) with revenues of $743.1 million, down 5.3% from $784.8 million in fiscal 2008, and operating income of $225.3 million, down 5.3% from $237.9 million. Net income fell about 10% to $141.1 million, or $1.66 per diluted share, from $156.9 million, or $1.75 per diluted share. The decline was driven mainly by a weaker British pound, which reduced reported UK revenue and costs, and by lower used car and scrap metal prices that pressured the selling prices of vehicles. Underlying North American service revenue was resilient: unit volume grew, aided by higher salvage frequency tied to lower used car prices, and insurance company sellers still supplied about 83% of vehicles processed. The balance sheet strengthened meaningfully. Cash and cash equivalents rose to $162.7 million from $39.0 million, operating cash flow was $203.3 million, and the company carries essentially no debt ($1.5 million total, with an undrawn $175 million Bank of America revolver). Shareholders' equity increased to $921.5 million. Management did not repurchase any shares in fiscal 2009, leaving 15.4 million shares available under the program, and it has never paid a cash dividend, though the board is considering dividends, buybacks, and acquisitions for excess cash. Key risks for investors include dependence on insurance company sellers (contracts are cancellable on 30 to 90 days notice), goodwill of about $166 million tied largely to UK acquisitions that could be impaired if conditions deteriorate, the UK principal-basis business model that pressures gross margins, rising execution risk from international expansion and new buyer programs (CopartDirect, Market Maker), and sensitivity to fuel prices, commodity prices, and used car values. The company also faces two lawsuits (CARS, Liberty Mutual) that management believes will not be material. Stock performance was mixed: the share price closed the year at $35.31, and the five-year total return of 158.7 (index 100 base) trailed the NASDAQ Q-50 and the peer group in some periods.
Sep 29, 2009
2008
COPART INC Annual Report, Year Ended Jul 31, 2008
Copart, Inc. (CPRT) closed fiscal 2008 (year ended July 31, 2008) with revenue of $784.8 million, up 40% from $560.7 million in fiscal 2007, and operating income of $237.9 million, up about 17%. Net income rose to $156.9 million ($1.75 diluted EPS) from $136.3 million. Growth was driven largely by the UK, which contributed $187.9 million of revenue after the June 2007 Universal Salvage acquisition and three further UK acquisitions. However, the UK operates on a principal basis (buying vehicles outright), which sharply lowers gross margin: consolidated gross margin fell to 41.1% from 47.6%, with the UK earning only 9.4%. Management has said this mix will continue to weigh on consolidated margins. The balance sheet shifted meaningfully toward capital return and expansion. Cash and short-term investments fell to about $39 million from $210 million, as the company spent $269 million on share repurchases (6.6 million shares at an average of $40.70), $38 million on acquisitions and $113 million on capital expenditures. Shares outstanding fell to 83.3 million from 88.3 million. Shareholders' equity declined to $799 million. The company remains debt-free apart from minor UK facilities and has a new undrawn $200 million Bank of America revolving credit facility, and management believes liquidity is sufficient for at least 12 months. Key risks for investors include dependence on insurance-company sellers (State Farm was 10% of revenue), UK integration and foreign currency exposure, goodwill of about $177 million, an unresolved UK environmental matter in Dallas, several pending lawsuits (including a $4.7 million CARS claim and an antitrust suit Copart filed against AASC and its co-conspirators), and a VB2 internet-auction model that management no longer expects to deliver the same rate of improvement as in prior years.
Sep 29, 2008
2007
COPART INC Annual Report, Year Ended Jul 31, 2007
Copart, Inc. (CPRT) closed fiscal 2007 (year ended July 31, 2007) with revenue of $560.7 million, up 6% from $528.6 million in fiscal 2006, and operating income of $203.1 million, up 18% from $171.6 million. Net income rose to $136.3 million, or $1.46 per diluted share, compared with $96.9 million, or $1.04 per diluted share, in fiscal 2006. Fiscal 2006 was depressed by about $14.1 million of hurricane Katrina and Rita costs and a $17.7 million after-tax loss from discontinued MAG auction operations, so the year-over-year comparison flatters underlying growth somewhat, though same-store North American revenue growth was still a solid $15.1 million. Gross margin in North America improved to 48.1% from 43.6%, reflecting the absence of hurricane costs and efficiency from the Internet-based VB2 sales model. The most important strategic development is the entry into the United Kingdom. Copart acquired Universal Salvage plc on June 14, 2007 for about $120.0 million in cash, and Century Salvage Sales Limited for about $9.1 million on August 1, 2007. The UK business operates largely on a principal basis, buying vehicles outright, which lowers gross margin (29.6% in the UK versus 48.1% in North America) and adds inventory and foreign currency risk. Management has also warned that UK results will complicate period-to-period comparisons. Balance sheet strength remains a key feature: the company holds $201.0 million in cash and short-term investments against total debt of only $2.8 million, and it repurchased about 3.0 million shares for $89.6 million during the year, leaving 1.97 million shares authorized under the buyback. Investors should weigh the strong profitability and cash generation (operating cash flow of $182.1 million) against several risks disclosed in the filing: concentration among suppliers (State Farm alone was 11% of revenue), dependence on Internet sales technology (VB2), the unproven international expansion, and a 20% insider ownership stake that could influence corporate transactions alongside a shareholder rights plan. Pending environmental questions at the Dallas, Texas facility and several storage-lien and antitrust suits are not expected to be material, according to management.
Oct 1, 2007
2006
COPART INC Annual Report, Year Ended Jul 31, 2006
Copart, Inc. (CPRT) reported fiscal 2006 (year ended July 31, 2006) revenue of $528.6 million, up 18.1% from $447.7 million in fiscal 2005, and income from continuing operations before taxes of $174.5 million. Growth came from higher unit volume, including vehicles displaced by Hurricanes Katrina and Rita, from new and acquired yards, and from higher auction proceeds per vehicle, which raise buyer and certain seller fees. Net income fell to $96.9 million (diluted EPS $1.04) from $102.1 million (diluted EPS $1.10), because of a $17.9 million pre-tax loss from discontinuing the Motors Auction Group (MAG) public auction business, which was driven mainly by a $21.8 million goodwill write-down. Operating margin declined to 32.4% from 34.9%, reflecting $14.1 million of abnormal hurricane-related costs, higher yard expenses, and a 29% increase in G&A tied to VB2 technology and Sarbanes-Oxley compliance. The company ended the year with 122 facilities across the U.S. and Canada, no debt, $275.3 million in cash and short-term investments, and $809.97 million in shareholders' equity. Operating cash flow was $141.9 million. Management reported that its internal controls over financial reporting were effective and that its liquidity is sufficient for at least the next 12 months. Investors should weigh the strong cash generation and balance sheet against concentration risk, since the two largest suppliers accounted for about 21% of revenue, and against the pending litigation. That litigation includes a patent dispute with Manheim, which was dismissed in June 2006, and several class actions that management considers without merit.
Oct 31, 2006
2005
COPART INC Annual Report, Year Ended Jul 31, 2005
Copart, Inc. (CPRT) closed fiscal 2005 (year ended July 31, 2005) with revenue of $457.1 million, up 14% from $400.8 million, and operating income of $156.9 million, up roughly 26%. Net income rose to $102.1 million from $79.2 million, and diluted EPS reached $1.10 versus $0.87. Operating margin expanded to 34.3% from 31.1%, driven mainly by higher sales volume and higher proceeds per vehicle, which the company attributes to its proprietary VB2 Internet auction platform. Yard and fleet costs fell to 55.4% of revenue from 58.9%, reflecting operating leverage on a largely fixed cost base. The balance sheet strengthened considerably. Cash and cash equivalents reached $252.5 million with no short-term investments outstanding (versus $172.6 million of auction rate securities a year earlier), total debt is effectively zero, and shareholders' equity grew to $709.4 million. Operating cash flow was $136.0 million, and capital expenditures were $66.3 million. The company did not repurchase shares in fiscal 2005, though roughly 5.3 million shares remain under its authorization, and management is weighing buybacks, dividends, and acquisitions as uses for its cash. Key risks for investors center on the VB2 platform. Manheim Services filed a patent infringement suit in June 2005 seeking an injunction that would cover VB2, which Copart is contesting with antitrust counterclaims. Customer concentration is significant, with two customers (including State Farm) generating about 20% of revenue, and the company warns that the shift to an all-Internet model makes its results harder to model. Management also states that it does not expect the same rate of improvement from VB2 going forward, and it disclosed an immaterial revenue-recognition correction that reduced fourth-quarter revenue by $4.4 million.
Oct 14, 2005
2004
COPART INC Annual Report, Year Ended Jul 31, 2004
Copart, Inc. (CPRT) reported strong fiscal 2004 results (fiscal year ended July 31, 2004). Revenues rose 15% to approximately $400.8 million from $347.4 million, operating income climbed 38% to $124.8 million, and net income increased 38% to $79.2 million, or $0.87 per diluted share. Operating margin expanded to 31.1% from 26.1% the prior year, driven largely by lower yard and fleet expenses as a percentage of revenue (52.1% versus 58.3%), partly offset by higher general and administrative costs tied to the development and deployment of the company's VB2 Internet auction platform. A $4.4 million favorable adjustment to self-insurance reserves also helped the year's results, so part of the margin improvement is not repeatable. The defining event of the year was the conversion of all salvage auction facilities to VB2, an Internet-based auction model that management believes widened the buyer pool and lifted per-vehicle proceeds. The company also expanded its footprint to 107 facilities across the U.S. and Canada through acquisitions and new openings, and exited the trucking business in favor of independent subhaulers. The filing is candid that this technology shift introduces meaningful risk, including dependence on internally developed systems with limited large-scale history and difficulty for investors to model results until more history accumulates. Balance sheet strength is notable: cash and equivalents reached $178.3 million, working capital was $229.9 million, and the company carries virtually no debt. Customer concentration is a key watch item, as State Farm and one other supplier accounted for 12% and 8% of revenue, and the company is subject to 30-to-90-day cancellation terms. Investors should also note that the company has not paid dividends since its 1994 IPO, has a 9 million share repurchase program with about 5.3 million shares still available, and that Section 404 internal control compliance begins in fiscal 2005.
Oct 14, 2004
2003
COPART INC Annual Report, Year Ended Jul 31, 2003
Copart, Inc. (CPRT) reported fiscal 2003 (year ended July 31, 2003) results that show a leading salvage vehicle auction operator still growing, but at a slower pace. Revenue rose 10% to $347.4 million from $316.5 million, while operating income was essentially flat at $90.8 million versus $89.9 million, as yard and fleet costs were held to 58.3% of revenue and depreciation jumped 57% to $25.5 million. Net income was $57.2 million, or $0.62 per diluted share, roughly flat versus $57.4 million ($0.63) in fiscal 2002. Management attributed the slower revenue growth to slower growth in units sold, and noted that revenue growth had fallen from 25% in fiscal 2002. The company operated 102 facilities in 40 states at year-end, adding six new salvage sites and one acquisition during the year, and it remains in an early stage of building a public automobile auction business whose revenues are not yet material. The balance sheet is conservative. Cash and equivalents were $116.7 million, shareholders' equity was $525.6 million, and total debt was only about $0.1 million, against a $95 million undrawn revolving credit facility with $88.5 million available. Operating cash flow was $79.1 million, and capital expenditures were $70.7 million. The board authorized repurchase of up to 9 million shares in February 2003; about 2.7 million shares were bought back by July 31, 2003 (and 3.7 million more by October 16, 2003), and the company adopted a shareholder rights plan in March 2003. Investors should weigh several governance and operating risks. Executive officers and directors own roughly 26% of the stock, the poison pill could deter acquirers, and key executives are at-will with no non-compete agreements. The company depends on a few large insurance suppliers (State Farm accounted for 13% of revenue), its growth has relied heavily on acquisitions, and unionization efforts by the Teamsters are ongoing at several facilities. Stock traded between $6.99 and $14.89 during fiscal 2003, well below the $23.67 to $25.83 quarterly highs of fiscal 2002, reflecting the earnings slowdown.
Oct 17, 2003
2002
COPART INC Annual Report, Year Ended Jul 31, 2002
Copart, Inc. (CPRT) reported fiscal 2002 (year ended July 31, 2002) results that marked strong growth in the salvage vehicle auction business. Revenues rose 25% to $316.5 million from $253.9 million, driven by a 15% increase in gross proceeds to about $1.2 billion and higher buyer fees. Operating income grew 32% to $89.9 million, with operating margin expanding to 28.4% from 26.8%, as yard and fleet expenses fell to 59.1% of revenue. Net income increased 34% to $57.4 million, or $0.63 per diluted share, compared with $42.7 million, or $0.50, in fiscal 2001. Figures are as filed and reflect a three-for-two forward stock split effected during fiscal 2002. The balance sheet strengthened considerably. Following a November 2001 follow-on offering of 6.9 million shares that raised about $126 million, cash and short-term investments reached $132.7 million, and shareholders' equity nearly doubled to $486.2 million. Total debt is negligible at $0.4 million, and the company has a $100 million unsecured revolving credit facility with $96.3 million available. Operating cash flow was $82.0 million, while capital expenditures were $85.9 million, reflecting continued investment in facilities and land. Investors should weigh several risks. Management reduced its fiscal 2003 revenue and earnings projections in September 2002 because mild weather reduced vehicle supply, and weather is a recurring sensitivity. The company depends on a few large insurance suppliers, with State Farm at about 14% of revenue and a second supplier at 9%. Other risks include competition from ADESA, Insurance Auto Auctions and Manheim, growth through acquisitions, expansion into public auctions, and pending class actions in California over rental car titling. Executive officers and affiliates hold about 24% of the stock, and the company disclosed that its disclosure controls evaluation would appear in the next quarterly report.
Oct 29, 2002
1997
COPART INC Annual Report, Year Ended Jul 31, 1997
Copart, Inc. (CPRT) reported fiscal 1997 (year ended July 31, 1997) results that show a company growing steadily through acquisitions and new facility openings. Revenues rose 7% to $126.3 million from $118.2 million, driven by 410,000 vehicles processed (up from 391,100). Operating income grew 6% to $18.9 million, and net income increased 7% to $12.0 million, or $0.90 per share. Operating margin was relatively stable at about 14.9%, though yard and fleet expenses rose slightly as a share of revenue, and growth in revenue per unit (about 10%) was offset by a decline in Purchase Program volume. The balance sheet strengthened meaningfully. Cash rose to $27.7 million, with no borrowings under the $50 million unsecured credit facility, and shareholders' equity increased to $142.8 million. Operating cash flow more than doubled to $24.6 million. Management states that current resources are sufficient for working capital and facility openings over the next 12 months. However, growth pace slowed: only four facilities were opened or acquired in fiscal 1997, versus an average of eight per year from 1992 to 1996, and the company's largest supplier accounted for about 16% of revenue. Investors should weigh several risks. The company's Chief Financial Officer, Joseph Whelan, resigned on October 6, 1997, and no successor had been named at filing. The company also faces environmental remediation obligations, including a $3.0 million Dallas commitment, and a lawsuit by Bill Woltz was dismissed after trial in favor of Copart. The company's principal competitor, Insurance Auto Auctions, Inc., is significant in certain regions. Share price trading ranged from about $10 to $21 during fiscal 1997, and the company does not pay cash dividends.
Oct 28, 1997
1996
COPART INC Annual Report, Year Ended Jul 31, 1996
Copart, Inc. (Nasdaq: CPRT) reported fiscal 1996 (year ended July 31, 1996) results that showed strong top-line and earnings growth driven largely by acquisitions. Revenues rose 103% to $118.2 million from $58.1 million, and net income climbed 62% to $11.2 million, or $0.85 per share, on 391,100 salvage vehicles processed (up from 223,300). Growth came from the May 1995 NER Auction Group acquisition and a series of facility acquisitions and openings, which brought the network to 49 auction facilities in 24 states. Operating margin, however, compressed to 15.1% from 19.4% as yard and fleet expenses rose to 70.6% of revenue, driven by the shift toward lower-margin eastern operations and purchase-program vehicles where gross proceeds are booked as revenue. The balance sheet strengthened, with shareholders' equity of $126.2 million and total assets of $158.1 million, but the company took on more debt during the year. Total debt rose to $11.3 million, mainly from a $7.5 million note issued for the Van Nuys land purchase, and goodwill and intangibles ($74.6 million) make up nearly half of total assets. Cash from operations was $11.3 million, while capital expenditures of $8.4 million and acquisitions consumed additional cash. Management says existing liquidity, the undrawn $18.5 million term loan and revolver, and equipment leasing lines are sufficient for the next 12 months. Investors should weigh several risks: a single insurance supplier provided 16% of revenue, most supplier contracts are cancellable on 30 to 90 days' notice, and the company's growth depends on continued acquisitions that management concedes are harder to integrate at larger scale. Willis J. Johnson and one other shareholder control about 30% of the stock, and a pending lawsuit by a former consultant (Woltz) seeks unspecified damages. Environmental exposure at the Dallas facility is capped by a cost-sharing arrangement but could still be material. The company has not paid a cash dividend since 1984.
Oct 28, 1996