10-KPeriod: FY2018

COPART INC Annual Report, Year Ended Jul 31, 2018

Filed October 1, 2018For Securities:CPRT

Summary

Copart, Inc. (CPRT) is a leading provider of online vehicle auctions and remarketing services. For the fiscal year ended July 31, 2018, the company reported revenues of $1.8 billion and operating income of $584.3 million. Copart operates an extensive global network of facilities and utilizes its proprietary Virtual Bidding Third Generation (VB3) auction platform to facilitate sales. The company's primary revenue streams are service fees from vehicle sellers and buyers, as well as fees for related services such as towing and storage. The majority of vehicles sold are sourced from insurance companies, typically total loss or recovered stolen vehicles. Copart's growth strategy focuses on acquiring and developing new facilities, pursuing supply agreements, and expanding its service offerings, leveraging its technology and global reach. The company has demonstrated a strong track record of successful acquisitions and integrations, further solidifying its market position.

Financial Highlights

54 data points
Beta

Revenue

$1.81B

89.1% Gross Margin

Net Income

$417.87M

23.1% Net Margin

EPS (Diluted)

$0.43

Total Assets

$2.31B

Cash & Equivalents

$274.52M

Free Cash Flow

$247.16M

Financial Statements
Beta
Revenue$1.81B
Cost of Revenue$196.46M
Gross Profit$1.61B
Operating Income$584.35M
Interest Expense$20.37M
Net Income$417.87M
EPS (Basic)$0.45
EPS (Diluted)$0.43
Shares Outstanding (Basic)927.17M
Shares Outstanding (Diluted)967.51M

Key Highlights

  • 1Copart generated $1.8 billion in revenue and $584.3 million in operating income for fiscal year 2018.
  • 2The company operates a global remarketing service network across the United States, Canada, the UK, Brazil, Ireland, Germany, Finland, the UAE, Oman, Bahrain, and Spain.
  • 3Copart's proprietary VB3 (Virtual Bidding Third Generation) internet auction platform is central to its business model, enabling global buyer participation.
  • 4Insurance companies are the primary source of vehicles, accounting for approximately 80-84% of processed units in recent years.
  • 5The company has a strategic focus on expansion through acquisitions and the development of new facilities in key domestic and international markets.
  • 6Copart's competitive advantages include extensive geographic coverage, value-added services, and a proven ability to acquire and integrate businesses.
  • 7As of July 31, 2018, the company had 6,026 full-time employees.

Frequently Asked Questions

Copart is a leading provider of online auctions and vehicle remarketing services. They facilitate the sale of vehicles, primarily those deemed total loss by insurance companies or recovered stolen vehicles, through their proprietary VB3 internet auction platform. They generate revenue from fees paid by both vehicle sellers and buyers, along with additional fees for services like towing and storage.

Copart's primary vehicle sellers are insurance companies, which provide the majority of the vehicles sold. Other sellers include banks, finance companies, charities, fleet operators, and dealers. The principal buyers are licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and in some locations, the general public.

Copart's growth strategy involves acquiring and developing new facilities in key domestic and international markets, pursuing national and regional vehicle supply agreements with sellers, and expanding its service offerings to both sellers and buyers. The company has a strong history of successfully acquiring and integrating other businesses into its network.

For the fiscal year ended July 31, 2018, Copart reported revenues of $1.8 billion and operating income of $584.3 million. The company also saw significant increases in service revenues and vehicle sales, driven by growth in volume and higher average auction selling prices.