10-KPeriod: FY2021

COPART INC Annual Report, Year Ended Jul 31, 2021

Filed September 27, 2021For Securities:CPRT

Summary

Copart, Inc. (CPRT) operates as a leading global provider of online vehicle auctions and remarketing services. The company's core business involves facilitating the sale of vehicles, primarily those deemed total losses by insurance companies, recovered stolen vehicles, or from other sellers like financial institutions and fleet operators. Copart leverages its proprietary Virtual Bidding Third Generation (VB3) internet auction platform to connect a broad base of registered buyers, including licensed dismantlers, rebuilders, dealers, exporters, and the general public, with sellers worldwide. Financially, for the fiscal year ending July 31, 2021, Copart reported revenues of $2.7 billion and operating income of $1.1 billion. The company has a consistent strategy of growth through acquisitions and the development of new vehicle storage facilities in key markets, both domestically and internationally. Copart emphasizes its technological advantages, global geographic coverage, and a comprehensive suite of value-added services to maintain its competitive edge in the vehicle remarketing industry. The company is committed to sustainable profits for its stockholders while also acknowledging its role in the environmental re-use and recycling of vehicles and parts.

Financial Highlights

49 data points
Beta

Revenue

$2.69B

Net Income

$936.50M

34.8% Net Margin

EPS (Diluted)

$0.97

Total Assets

$4.56B

Cash & Equivalents

$1.05B

Free Cash Flow

$527.89M

Financial Statements
Beta
Revenue$2.69B
Operating Expenses$1.56B
Operating Income$1.14B
Net Income$936.50M
EPS (Basic)$0.99
EPS (Diluted)$0.97
Shares Outstanding (Basic)945.01M
Shares Outstanding (Diluted)961.16M

Key Highlights

  • 1Copart is a global leader in online vehicle auctions and remarketing services, operating across the U.S., Canada, U.K., Brazil, Ireland, Germany, Finland, UAE, Oman, Bahrain, and Spain.
  • 2The company's proprietary VB3 internet auction platform facilitates a broad reach to a global buyer base, enhancing competition and sales prices.
  • 3For fiscal 2021, Copart reported revenues of $2.7 billion and operating income of $1.1 billion, demonstrating significant profitability.
  • 4Growth is driven by a strategy of acquiring and developing new facilities, expanding seller agreements, enhancing service offerings, and leveraging its VB3 platform in new markets.
  • 5Copart emphasizes its environmental stewardship by enabling the re-use and recycling of vehicles and parts, thus reducing the carbon footprint associated with new manufacturing.
  • 6The company generated 84.4% of its revenues from the U.S. and 15.6% from international operations in fiscal 2021.
  • 7No single customer accounted for more than 10% of consolidated revenues, indicating a diversified seller base, with insurance companies being the primary source (77% of total vehicles processed).

Frequently Asked Questions

Copart's primary business model is providing online auctions and vehicle remarketing services. They connect vehicle sellers (primarily insurance companies, but also banks, finance companies, and others) with a global network of buyers (dismantlers, rebuilders, dealers, exporters, and the public) through their proprietary VB3 internet auction platform.

Copart generates revenue primarily from auction and auction-related sales transaction fees charged for vehicle remarketing services. These can include fees for vehicle purchasing, listing, selling, transportation, title processing, storage, bidding, and loading. In some international markets (like the U.K., Germany, and Spain), Copart also operates on a principal basis, purchasing vehicles outright and reselling them for its own account.

Copart's growth strategy involves acquiring and developing additional vehicle storage facilities in key domestic and international markets, pursuing global, national, and regional vehicle seller agreements, expanding its service offerings to both sellers and members, and increasing the application of its VB3 technology into new markets.

Key risks identified by Copart include the potential adverse impacts of the COVID-19 pandemic on inventory and operations, dependence on a limited number of major vehicle sellers, risks associated with international expansion, cybersecurity and online commerce security, the competitive landscape, and the impact of weather patterns on vehicle supply.