10-KPeriod: FY2024

COPART INC Annual Report, Year Ended Jul 31, 2024

Filed September 30, 2024For Securities:CPRT

Summary

Copart, Inc. operates as a leading global provider of online vehicle auctions and remarketing services. The company primarily sources vehicles from insurance companies, handling a significant portion of total loss and recovered stolen vehicles. Copart's core business model revolves around its proprietary Virtual Bidding Third Generation (VB3) internet auction platform, which offers a global reach to buyers and streamlines the sales process for sellers. The company has demonstrated consistent revenue growth, with service revenues increasing by 11.3% in fiscal year 2024. This growth is attributed to an increase in volume and optimized fees in the U.S., alongside volume growth internationally. While vehicle sales revenue saw a modest increase of 0.7%, this was driven by international growth offsetting a slight decline in the U.S. Copart continues to strategically expand its physical footprint by acquiring and developing new facilities across its operating regions, further solidifying its global presence.

Financial Highlights

46 data points
Beta

Revenue

$4.24B

Net Income

$1.36B

32.2% Net Margin

EPS (Diluted)

$1.40

Total Assets

$8.43B

Cash & Equivalents

$1.51B

Free Cash Flow

$961.57M

Financial Statements
Beta
Revenue$4.24B
Operating Expenses$2.66B
Operating Income$1.57B
Net Income$1.36B
EPS (Basic)$1.42
EPS (Diluted)$1.40
Shares Outstanding (Basic)960.74M
Shares Outstanding (Diluted)974.80M

Key Highlights

  • 1Copart, Inc. is a leading global provider of online auctions and vehicle remarketing services, serving multiple countries including the U.S., U.K., Germany, Brazil, and others.
  • 2The company's primary revenue source is service revenue, derived from auction and auction-related fees, which grew by 11.3% in fiscal year 2024 to $3.56 billion.
  • 381% of vehicles processed in fiscal year 2024 were from insurance company sellers, highlighting a key supplier relationship.
  • 4Copart utilizes its proprietary VB3 internet auction platform, enabling a broad international buyer base and efficient online sales.
  • 5The company is actively expanding its global operations, opening new facilities in the U.S., U.K., Canada, and Spain during fiscal year 2024.
  • 6Despite a repurchase program, Copart did not repurchase any shares of its common stock in fiscal years 2024, 2023, or 2022, indicating a focus on reinvesting capital into business growth.

Frequently Asked Questions

Copart's primary business is providing online auctions and vehicle remarketing services. Its main revenue driver is service revenue, which comes from auction and auction-related sales transaction fees charged to sellers for remarketing vehicles. The company also generates revenue from selling vehicles it purchases on its own account.

The vast majority of Copart's vehicles come from insurance companies, accounting for 81% of the total vehicles processed in fiscal year 2024. Other suppliers include dealers, individuals, charities, rental companies, banks, and fleet operators.

Copart heavily relies on its proprietary VB3 (Virtual Bidding Third Generation) internet auction platform. This technology allows for global online bidding, increasing the buyer pool and optimizing selling prices. The company also invests in technology for operational efficiency, such as web-based order processing, vehicle imaging, and data analytics tools for sellers.

Copart's growth strategy focuses on acquiring and developing new vehicle storage facilities in key markets, both domestically and internationally, pursuing global vehicle seller agreements, expanding its service offerings to sellers and buyers, and further applying its VB3 platform into new markets. Strategic acquisitions are also a key component of its expansion.