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CPRT · COPART INC

50 filings

10-Q

CPRT 10-Q Quarterly Reports

COPART INC - 50 quarterly reports

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

CPRT filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 93 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’16Jul ’16
  2. Leadership change8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Sep ’21Sep ’21
  4. FY2025 annual report10-K · Sep ’25Sep ’25
  1. 2026-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2026

    Copart's 10-Q for the third quarter of fiscal 2026 (ended April 30, 2026) shows a business that is still generating strong profits, but with flat top-line results and a sharp shift in how cash is being deployed. Total service revenues and vehicle sales were $1,237.1 million in the quarter, up 2.1% year over year, while nine-month revenue slipped 0.2% to $3,513.8 million. Net income attributable to Copart was $402.4 million for the quarter ($0.43 diluted EPS, versus $0.42 a year ago) and $1,156.8 million for nine months ($1.20 diluted EPS, versus $1.18). Operating margin held near 37-38%. The U.S. segment's service revenue fell 2.1% over nine months, largely because of one-time hurricane Helene and Milton revenue in fiscal 2025, while International grew 11.4% for the period, helped partly by currency tailwinds. The most notable development is capital allocation. Copart repurchased 43.4 million shares for $1,632.5 million during the nine months, versus no buybacks a year earlier. Shares outstanding fell from 967.5 million at July 31, 2025 to 925.8 million at April 30, 2026, and 282 million shares remain under the authorization. Cash, cash equivalents and restricted cash rose to $3.35 billion, but held-to-maturity Treasury investments fell to $0.85 billion from $2.01 billion, and working capital declined 10.6%. Operating cash flow was $1.25 billion, down 8.4%, mainly due to working capital changes. Capital expenditures fell to about $259 million from $481 million, reflecting a slowdown in facility spending after the prior year's heavy investment. The company also replaced its secured credit facility with a new unsecured $1.25 billion revolver maturing in 2031, with $1.228 billion currently available. The filing discloses an ongoing U.S. Department of Justice investigation into anti-money-laundering practices, for which Copart cannot estimate a possible loss, which remains the most significant open legal risk for investors.

    May 29, 2026
  2. 2026-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2026

    Copart's 10-Q for the quarter ended January 31, 2026 shows a company that remains highly profitable but with flat-to-slightly-down top-line trends. Total service revenues and vehicle sales for the three months were $1,121.7 million, down 3.6% from $1,163.3 million a year earlier, driven by a $48.7 million decline in U.S. service revenue that management attributes mainly to one-time revenue from Hurricanes Helene and Milton recognized in fiscal 2025. Operating income fell 8.8% to $388.7 million and the operating margin contracted to 35% from 37%, while net income attributable to Copart fell to $350.7 million ($0.36 per diluted share) from $387.4 million. Interest income rose to $50.0 million, cushioning the decline in earnings, as management shifted cash into U.S. Treasury Bills and cash equivalents. The balance sheet strengthened considerably. Cash, cash equivalents and restricted cash reached $5.10 billion, up from $2.78 billion at July 31, 2025, after the held-to-maturity Treasury bills matured and were not reinvested in that category. Working capital rose to $5.56 billion. Operating cash flow was $662.8 million for the six months, roughly flat year over year. Capital expenditures fell sharply to $177.7 million from $353.4 million, and the company repurchased 5.48 million shares for $218.2 million at a weighted average price of $39.82. Management also entered a new unsecured $1.25 billion revolving credit facility maturing in January 2031, replacing the prior facility that was due December 2026. The main investor watch items are the continued U.S. revenue softness, the pending U.S. Department of Justice money-laundering investigation for which the company cannot estimate a loss range, and the shift toward consignment models in international markets that is reducing volumes there. Given the strong liquidity position, investors may focus on how management deploys its cash between buybacks, acquisitions, capacity expansion and possible dividends.

    Mar 3, 2026
  3. 2026-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2025

    Copart's first-quarter fiscal 2026 results (three months ended October 31, 2025) show a business that continued to grow profitably while building a very large cash position. Total service revenues and vehicle sales rose 0.7% to $1,155.0 million, with service revenues up 0.6% to $991.8 million. The U.S. service revenue declined 0.5% as it lapped one-time revenue from Hurricanes Helene and Milton in the prior year, while International service revenue grew 7.9% (about 5.1% excluding currency tailwinds of $3.7 million). Operating income rose 6.0% to $430.7 million, and the operating margin expanded from 36% to 38%, largely because facility operations expenses fell 4.0%, mainly from lapping hurricane-related costs in the U.S. Net income attributable to Copart increased 11.5% to $403.7 million, and diluted EPS rose to $0.41 from $0.37. The effective tax rate fell to 17.4% from 20.0%, which supported earnings growth. The balance sheet and cash flow picture is the most striking feature of the quarter. Cash, cash equivalents, and restricted cash rose 88% to $5.23 billion, driven by $535 million of operating cash flow and the maturity of $2.03 billion of held-to-maturity Treasury bills. Working capital reached $5.42 billion. Capital expenditures fell sharply to $108 million from $237 million a year earlier, and no shares were repurchased during the quarter. The company has no borrowings under its $1.25 billion revolving facility, and management says its cash, along with operating cash flow, is sufficient for the foreseeable future. Management is also weighing additional buybacks, acquisitions, and dividends as uses for the cash, although Copart has never paid a cash dividend. The filing also flags a material open risk. The U.S. Department of Justice is investigating potential violations of money laundering laws related to auction platform members, and the company says it cannot predict the outcome or estimate a potential loss. Investors should also note that income tax payable rose to $125.5 million from $41.1 million, which contributed $61.5 million to operating cash flow in the quarter, so part of the cash build is timing-related. The company also continues a multi-year rollout of a new financial system, and the Form 10-Q does not disclose any change to the internal control environment beyond that rollout.

    Nov 24, 2025
  4. 2025-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2025

    Copart's 10-Q for the third quarter of fiscal 2025 (three and nine months ended April 30, 2025) shows continued top-line growth and strong cash generation. Service revenues rose 9.3% year over year to $1.035 billion in the quarter and 12.9% to $3.01 billion over nine months, led by the U.S. (up 8.2% and 11.8%, respectively) and International (up 17.5% and 21.0%). Operating income grew 3.3% to $451.5 million in the quarter, but operating margin slipped to 37% from 38% as facility operations and G&A expenses grew faster than revenue. Net income attributable to Copart rose 6.4% to $406.6 million, and diluted EPS was $0.42 versus $0.39. Nine-month diluted EPS was $1.18 versus $1.07, helped by higher interest income and a lower effective tax rate of 18.6% versus 20.4%. Cash flow and balance sheet strength stand out. Operating cash flow for the nine months rose 31.7% to $1.36 billion, and cash, cash equivalents, and restricted cash increased to $2.37 billion. Combined with $2.0 billion in held-to-maturity Treasury bills, Copart has roughly $4.4 billion of liquidity, and the company carries no borrowings under its $1.25 billion revolver. Capital expenditures of $482.6 million over nine months reflect continued investment in land, facilities, and software. The company did not repurchase any shares during the period and has not paid a cash dividend since 1994, though management says it is considering buybacks, acquisitions, and dividends. The main risk for investors is the U.S. Department of Justice investigation into potential money laundering violations related to auction platform members. Copart cannot estimate the range of possible loss or penalties. Management also disclosed roughly $56 million in one-time costs tied to Hurricanes Helene and Milton, which pressured U.S. facility operations expenses, and the company began implementing a new financial system in stages, which is a material internal control change to monitor.

    Jun 3, 2025
  5. 2025-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2025

    Copart's 10-Q for the quarter ended January 31, 2025 shows a strong second quarter (fiscal 2025 Q2). Total service revenues and vehicle sales rose 14.1% year over year to $1.163 billion, driven by a 15.0% increase in service revenues to $991.3 million, with U.S. service revenue up 14.8% and International up 16.5% (partly offset by currency). Operating income grew 12.2% to $426.2 million, and net income attributable to Copart rose 19.0% to $387.4 million, or $0.40 diluted EPS versus $0.33 a year earlier. Six-month results were similarly solid, with net income of $749.5 million and diluted EPS of $0.77. Margins were mixed. Facility operations expense grew faster than revenue (19.8% in the quarter), and management attributed about $27 million of one-time costs in the quarter (and $56 million for the six months) to Hurricanes Helene and Milton. General and administrative expense rose 17.9% in the quarter, mainly from U.S. outside services, labor, and travel. The effective tax rate fell to 16.5% from 20.8%, largely due to excess tax benefits from stock option exercises ($23.7 million in the quarter), which flattered EPS. The balance sheet strengthened considerably. Cash, cash equivalents and restricted cash reached $3.34 billion, up from $1.51 billion at fiscal year-end July 31, 2024, mainly because held-to-maturity Treasury bills of $1.9 billion matured. The company has no borrowings under its $1.25 billion revolver, a consolidated net leverage ratio of (1.92):1 (net cash), and no share repurchases during the period. Capital expenditures of $353 million continue to fund facility expansion. Investors should also note the ongoing U.S. Department of Justice investigation into potential anti-money laundering violations, for which the company cannot estimate a possible loss.

    Feb 26, 2025
  6. 2025-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2024

    Copart's first-quarter fiscal 2025 10-Q (quarter ended October 31, 2024) shows a company growing revenue and profit while building a large cash position. Total service revenues and vehicle sales rose 12.4% to $1,146.8 million from $1,020.4 million, driven by service revenue growth of 14.8% (U.S. up 12.8%, International up 30.2%). Operating income grew modestly to $406.4 million from $395.4 million, a 2.8% increase, and operating margin compressed to 35.4% from 38.8% as facility operations expenses rose 21.6% and G&A rose 54.0%. Management attributed part of the cost increase to roughly $29 million in one-time costs tied to Hurricanes Helene and Milton, along with higher third-party legal, compliance, and system implementation spending. Net income attributable to Copart increased 8.9% to $362.1 million, and diluted EPS rose to $0.37 from $0.34. The balance sheet and cash flow picture is strong. Cash, cash equivalents, and restricted cash more than doubled to $3.70 billion from $1.51 billion, mainly because $1.94 billion of held-to-maturity Treasury bills matured and were not reinvested in that category. Operating cash flow rose 28.5% to $482.3 million, while capital expenditures were $236.8 million, up from $162.3 million, reflecting continued facility expansion. The company has no borrowings under its $1.25 billion revolver, reports a net leverage ratio of (1.94):1, and says minimum liquidity of $4.9 billion comfortably exceeds covenant requirements. Interest income rose to $45.5 million, which is a meaningful share of pre-tax income. Investors should note several open items. The Department of Justice is investigating potential money laundering violations related to the platform's member practices, and the company says it cannot estimate the range of possible loss. Management also began implementing a new financial system in stages, which the filing identifies as a significant internal control component. No share repurchases were made during the quarter, leaving 326 million shares available under the existing authorization, and the company has not paid a cash dividend since its 1994 IPO.

    Nov 26, 2024
  7. 2024-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2024

    Copart's third-quarter fiscal 2024 10-Q (quarter ended April 30, 2024) shows a business still growing revenue and profit at a healthy clip. Total service revenues and vehicle sales rose 10.3% year over year to $1.127 billion for the quarter, and service revenues grew 11.7% to $946.6 million, driven by volume growth and fee optimization in the U.S. and higher volumes internationally. Net income attributable to Copart rose 9.1% to $382.3 million, and diluted EPS reached $0.39 versus $0.36 a year earlier. For the nine months, revenue was $3.17 billion (up 10.3%) and net income was $1.04 billion (up 16.9%). Operating margin for the quarter was 38.8% (operating income of $437.2 million), compared with 41.0% a year ago, as yard operations and general and administrative costs grew faster than revenue. Margin pressure is the main watch item. Yard operations expense rose 15.8% in the quarter, and G&A jumped 36.9%, which management attributes to labor, legal, software, and the consolidation of the Purple Wave acquisition. Other income more than doubled to $34.9 million, supported by interest on U.S. Treasury bills, so pre-tax income grew faster than operating income. Vehicle sales were flat-to-up in the quarter but down 1.6% for the nine months, reflecting lower auction selling prices in the U.S. Balance sheet strength is a clear positive. Cash, cash equivalents, and restricted cash rose to $1.09 billion, and held-to-maturity Treasury bills reached $2.0 billion, for roughly $3.1 billion in liquid assets. The company carries no funded debt, having repaid its $11 million revolver balance, and has $1.25 billion of revolver capacity. The company repurchased no shares during the nine months and has not paid a cash dividend since its 1994 IPO, although management says it is considering buybacks, acquisitions, and dividends. The most significant new risk is an ongoing U.S. Department of Justice investigation into potential anti-money-laundering violations; the company received a letter in October 2023 and says it cannot yet estimate the range of possible loss.

    May 23, 2024
  8. 2024-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2024

    Copart's 10-Q for the fiscal second quarter ended January 31, 2024 shows a business that kept growing on both revenue and profit. Total service revenues and vehicle sales rose 6.5% to $1.02 billion for the quarter, and for the six months they rose 10.3% to $2.04 billion. Service revenues grew 9.1% in the quarter, led by a 7.1% rise in the U.S. (fee optimization and volume) and a 25.7% rise internationally, though part of the international gain came from currency. Vehicle sales fell 5.1%, reflecting lower auction selling prices in the U.S. Operating income rose 3.9% to $379.9 million, and diluted EPS was $0.33 versus $0.30 a year earlier. The quarter's headline profit improvement was helped by interest income, which nearly tripled to $34.0 million as cash was invested in U.S. Treasury Bills. Operating margin, however, eased slightly, as yard operations and G&A expenses grew faster than revenue. G&A rose 38.2%, driven by labor, legal, software, marketing, and the consolidation of the Purple Wave acquisition. Cash, cash equivalents, and restricted cash increased to $1.26 billion, and the company carries no revolver borrowings after repaying $11.0 million. Operating cash flow was $537.0 million for the six months, up 7.4%, and capital expenditures and acquisitions reached $379.7 million, up 48%. The main investor overhang is a U.S. Department of Justice investigation into potential money-laundering violations related to the company's member-screening practices. The company received a DOJ letter in October 2023, is cooperating, and says it cannot predict the range of possible loss. The 10-Q adds no accrual for this matter. Management describes the company as having sufficient liquidity for the foreseeable future, and it states that the credit agreement does not meaningfully restrict dividends. The company has not paid a cash dividend since becoming public in 1994.

    Feb 27, 2024
  9. 2024-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2023

    Copart's first-quarter fiscal 2024 10-Q (quarter ended October 31, 2023) shows a strong operating quarter. Service revenues rose 18.3% to $859.5 million, driven by a 17.0% increase in U.S. service revenue on higher volume and revenue per car. Operating income grew 27% to $395.4 million, and the operating margin expanded from 35% to 39% of total revenues. Net income attributable to Copart rose 35% to $332.5 million, and diluted EPS was $0.34 versus $0.25 a year earlier (both figures reflect the August 2023 two-for-one stock split). Vehicle sales declined 3.4%, with U.S. vehicle sales down 19.4% as the company deliberately reduced principal-unit exposure. The balance sheet and cash flow picture changed meaningfully. Cash, cash equivalents and restricted cash climbed to $2.58 billion from $957 million, mainly because $1.38 billion of held-to-maturity Treasury bills matured or were sold. Operating cash flow was $375.2 million, up 20%, while capital expenditures and acquisitions totaled $256.7 million. The company held $10.6 million of revolver borrowings and reported a net leverage ratio of (1.37):1, indicating a net cash position. Management described minimum liquidity of $3.8 billion and said no material restriction on dividends exists, though Copart has not paid a cash dividend since 1994. The main items to monitor are the 80% acquisition of Purple Wave, Inc. (October 2023, consideration of about $112 million in shares), the DOJ Consumer Protection Branch money-laundering investigation disclosed in the risk factors and Note 13, and the heavy reliance on a limited number of insurance sellers. Results also benefited from a $25 million Hurricane Ian cost in the prior-year comparison period, which is why yard operations expense per car appears lower. Effective tax rate was stable at 21.4%.

    Nov 21, 2023
  10. 2023-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2023

    Copart reported strong third-quarter fiscal 2023 results (quarter ended April 30, 2023). Total service revenues and vehicle sales rose 8.7% year over year to $1,021.8 million, and operating income grew 12.4% to $418.9 million, lifting the operating margin to about 41% from about 40%. Net income increased 25.8% to $350.4 million, and diluted EPS rose to $0.72 from $0.58. Service revenue growth of 10.6% was driven mainly by higher U.S. revenue per car, reflecting higher auction selling prices tied to global supply chain constraints, along with volume gains. The nine-month picture is more moderate: revenue grew 9.7%, operating income grew 4.4%, and net income grew 7.7%. Nine-month yard operations expense rose 16.3%, outpacing revenue, due to subhaul and fuel costs, labor, and Hurricane Ian response costs, which pushed yard operations to 39% of revenue from 37% a year earlier. The balance sheet and cash generation remain a clear strength. Cash, cash equivalents, and restricted cash reached $2.11 billion, up from $1.38 billion at July 31, 2022. Nine-month operating cash flow rose 16.4% to $1.01 billion, while purchases of property and equipment increased to $346.5 million from $234.8 million as the company continued its yard expansion. Copart had $22.6 million drawn on its $1.25 billion revolver, and its net leverage ratio was (1.21):1, indicating a net cash position. Management said it is considering additional buybacks, acquisitions, and dividends, but it repurchased no shares during the nine months and has not paid a cash dividend since its 1994 IPO. Key risks to monitor include the sharp decline in U.S. vehicle sales volume (down 26.7% in the quarter), which management attributed to a deliberate effort to limit principal unit exposure. Other items include the ongoing UK CMA review of the Hills Motors acquisition, a March 2023 ransomware attack at an immaterial subsidiary, dependence on a limited number of major vehicle sellers, and exposure to fuel, commodity, and used car price swings.

    May 25, 2023
  11. 2023-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2023

    Copart's fiscal Q2 2023 10-Q (quarter ended January 31, 2023) shows a strong quarter driven by higher service revenues and continued margin pressure from yard operations. Total service revenues and vehicle sales rose 10.3% to $956.7 million for the three months, and net income was $293.7 million, up 2.2% year over year. Diluted EPS was $0.61 versus $0.60, though this is after the two-for-one stock split effected November 3, 2022, so per-share figures are comparable. Service revenues grew 11.1%, led by the U.S. (+11.9%) on higher auction selling prices and volume, while operating margin fell to 39% from 41% as yard operations expenses rose 16.0%, citing fuel-related subhaul costs, labor, and Hurricane Ian response costs. The balance sheet strengthened materially. Cash, cash equivalents, and restricted cash reached $1.66 billion, up from $1.38 billion at July 31, 2022, and the company carries no borrowings under its $1.25 billion revolving facility. Operating cash flow for the six months was $499.8 million, up 11.9%, while capital expenditures rose to $256.7 million, a 64% increase, reflecting continued investment in new yards and facilities. Working capital increased to $2.15 billion, and management reports a consolidated net leverage ratio of (1.05):1. The company did not repurchase shares during the period, leaving $162.9 million of authorization available. Investors should note the relative softness in the International segment's profitability and the U.S. vehicle sales decline (down 15% in the quarter) driven by a deliberate reduction in principal-basis unit exposure. Management also flagged elevated legal costs, the pending UK CMA review of the Hills Motors acquisition, and the effects of catastrophic weather, all of which bear watching in future quarters.

    Feb 24, 2023
  12. 2023-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2022

    Copart's first-quarter fiscal 2023 results (three months ended October 31, 2022) show top-line growth alongside margin compression. Total service revenues and vehicle sales rose 10.3% year over year to $893.4 million, driven by 10.3% U.S. service revenue growth, 27.0% international vehicle sales growth, and higher average selling prices. However, operating income fell 5.6% to $311.5 million, and the operating margin contracted from 40.7% to 34.9%. Net income declined 5.6% to $245.8 million, and diluted EPS was $0.51 versus $0.54, both adjusted for the two-for-one stock split. The main driver of the margin decline was yard operations expense, which rose 24.8%. Management attributed about $25 million of the increase to Hurricane Ian, along with higher subhaul and labor costs. The balance sheet remains very strong. Cash, cash equivalents, and restricted cash increased to $1.54 billion, and the company had no borrowings under its $1.25 billion revolving credit facility. Total stockholders' equity rose to $4.85 billion, and the reported net leverage ratio was (0.91):1, indicating a net cash position. Operating cash flow was essentially flat at $311.6 million, while capital expenditures more than doubled to $152.7 million, reflecting continued investment in land, yards, and facilities. Management stated that current liquidity is sufficient for operations and planned expansion. From an investor perspective, the key questions are whether Copart can restore margins as storm-related and cost-inflation pressures normalize, and how it will deploy its large cash balance. The company has not paid a cash dividend since 1994, made no share repurchases during the quarter, and retains roughly 162.9 million shares of repurchase authorization. Management also disclosed a pending UK Competition and Markets Authority review of the Hills Motors acquisition, which could require divestitures if the regulator finds a substantial lessening of competition.

    Nov 18, 2022
  13. 2022-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2022

    Copart's 10-Q for the quarter ended April 30, 2022 shows a strong quarter driven by top-line growth. Total service revenues and vehicle sales rose 28.1% year over year to $939.9 million for the three months, and operating income increased 13.6% to $372.8 million. Net income for the quarter was $278.6 million, down from $286.8 million a year earlier, because income tax expense jumped to $91.0 million (effective rate 24.6% versus 11.4%). That tax increase, partly offset by a $17.5 million benefit from amended returns, is the main reason earnings declined despite higher revenue. Diluted EPS was $1.16 versus $1.19. For the nine months, revenue grew 34.7% to $2.62 billion and net income rose 21.4% to $826.4 million, reflecting revenue-per-car gains from tight vehicle supply and a rise in vehicle sales volume. Balance sheet and liquidity remain very strong. Cash, cash equivalents, and restricted cash reached $1.45 billion, up from $1.05 billion at fiscal year-end July 2021, and operating cash flow for the nine months was $864 million. The company had no borrowings under its $1.25 billion revolving facility and reported a net leverage ratio of (0.65):1. Capital expenditures fell to $235 million from $364 million. Subsequent to quarter-end, Copart retired its $400 million Senior Notes on May 24, 2022, paying $420.6 million including a $16.8 million make-whole payment, which reduces long-term debt and lowers future interest expense. Key risks flagged in the filing include COVID-19 effects on vehicle assignment volumes, dependence on a limited number of major sellers, international expansion and foreign currency exposure (foreign currency translation losses of $51.7 million year to date weighed on comprehensive income), and cyber security. The company did not repurchase shares during the period and has not paid a cash dividend since becoming public in 1994. Management indicates the company is considering alternative uses of its cash, including repurchases, debt repayment, dividends, and acquisitions.

    May 25, 2022
  14. 2022-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2022

    Copart's 10-Q for the quarter ended January 31, 2022 shows a strong second quarter of fiscal 2022. Total service revenues and vehicle sales rose 40.6% year over year to $867.5 million, and net income increased 48.6% to $287.4 million, or $1.19 per diluted share. Operating margin was 40.0% for the six months, roughly flat with the prior year, as yard operations and cost of vehicle sales grew faster than revenue. Growth was driven mainly by higher miles driven after reopening, higher revenue per car, and sharply higher vehicle sales, which rose 85% as average selling prices increased. Hurricane Ida added abnormal costs, mostly in the U.S. yard operations line. The balance sheet remains very strong. Total assets reached $5.14 billion, stockholders' equity was $4.09 billion, and the company had no borrowings under its $1.25 billion revolver, which was extended to December 2026 and upsized in December 2021. Cash, cash equivalents, and restricted cash totaled $971.7 million, down $76.6 million for the six months because of heavy capital expenditures of $156.2 million, with $374.9 million of Treasury bills purchased as held-to-maturity securities. Operating cash flow was $446.5 million, up 13.6%. Management says cash and operations are sufficient for the foreseeable future and does not view the credit agreement as a meaningful constraint on dividends. Key risks flagged include pandemic-related volatility in vehicle assignments, dependence on a limited number of major insurance sellers, execution risk in international expansion (including Germany, where the company is focused), and cybersecurity exposure. Accounts receivable grew to $630.6 million, mostly advance charges receivable, which warrants monitoring. The company has not repurchased shares under its program during the period, and it has 81.5 million shares still available for repurchase.

    Mar 3, 2022
  15. 2022-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2021

    Copart's first-quarter fiscal 2022 10-Q (quarter ended October 31, 2021) shows a strong top-line and profit rebound as U.S. and international auction volumes recovered from COVID-era lows. Total service revenues and vehicle sales rose 36.6% year over year to $810.1 million, driven by service revenues up 29.6% to $667.8 million and vehicle sales up 83.5% to $142.3 million. Operating income climbed 32.8% to $330.1 million, with the operating margin at roughly 40%, and net income rose 30% to $260.4 million. Diluted EPS was $1.08 versus $0.83 a year earlier. Balance sheet and cash generation were strong. Cash, cash equivalents, and restricted cash rose 23.9% to $1.30 billion, and operating cash flow was $312.5 million, up 20.9%. Capital expenditures fell sharply to $64.7 million from $147.1 million, reflecting a shift away from the heavy yard build-out of the prior year. The company carries no borrowings under its $1.05 billion revolving facility, and its $400 million senior notes remain outstanding. Working capital increased to $1.55 billion. Management did not repurchase any shares during the quarter, leaving $81.5 million of authorization available. Investors should weigh several watch items. Vehicle sales mix is growing, and cost of vehicle sales rose 96% as the company purchased more vehicles for its own account, particularly in the U.K. and Germany, where it operates on a principal basis that carries inventory risk. Yard operations expenses grew 29%, partly from higher subhauling and labor costs and from Hurricane Ida. The filing also flags continued COVID-19 uncertainty, reliance on a limited number of large insurance sellers, and ongoing international expansion risks.

    Nov 19, 2021
  16. 2021-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2021

    Copart's 10-Q for the third quarter of fiscal 2021 (quarter ended April 30, 2021) shows a strong rebound in profitability. Total service revenues and vehicle sales rose 33.4% year over year to $733.9 million for the quarter, while operating income climbed 68.1% to $328.1 million, lifting the operating margin to 44.7% from 35.4%. Net income more than doubled to $286.8 million, and diluted EPS rose to $1.19 from $0.62. Much of the improvement reflects higher average vehicle selling prices and the lapping of COVID-19 volume declines that hit the prior-year period. Service revenues grew 26.9%, driven mainly by U.S. revenue per car, while vehicle sales jumped 87.3%. The balance sheet and cash flow profile also strengthened materially. Cash, cash equivalents and restricted cash nearly doubled to $911.9 million from $477.7 million at fiscal year-end July 2020, and operating cash flow rose 17.1% to $762.2 million for the nine months. Management continued heavy investment, with nine-month capital expenditures of $364.4 million, primarily for new yards and facility expansion in the U.S. and internationally. The company has no borrowings under its $1.05 billion revolving facility and reports compliance with its debt covenants, leaving substantial liquidity. Key caveats for investors include continued COVID-19 exposure through shelter-in-place-driven volume swings, reliance on a limited number of major vehicle sellers, the effective tax rate of 17.3% for the nine months (boosted by discrete items and stock option tax benefits, versus 10.8% a year earlier), and growing international execution risk, particularly the German market. The filing reports no material pending legal proceedings and no share repurchases during the period.

    May 24, 2021
  17. 2021-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2021

    Copart's fiscal Q2 2021 10-Q (quarter ended January 31, 2021) shows a business that grew through the COVID-19 disruption. Total service revenues and vehicle sales rose 7.3% to $617.0 million for the quarter, and six-month revenues rose 7.1% to $1.21 billion. Management attributes the top line to higher revenue per car and higher average vehicle selling prices, which more than offset lower processed volume caused by reduced accident activity as miles driven fell. Operating income climbed 23% to $258.2 million for the quarter, and the operating margin expanded from 36% to 42%, largely because yard operations expense fell 8.3% while volume declined. Net income was $193.4 million for the quarter, up 14.7%, and diluted EPS was $0.81 versus $0.71 a year earlier. The six-month comparison is distorted by a sharp drop in the tax line: the effective tax rate rose to 21.1% from 5.0% a year ago, when excess tax benefits from a large CEO option exercise were much larger. Consequently, six-month net income of $393.7 million was roughly flat versus $386.9 million, even though pre-tax income grew about 23%. The balance sheet strengthened meaningfully. Cash, cash equivalents, and restricted cash reached $616.4 million, up from $477.7 million at fiscal year-end, and the company had no borrowings under its $1.05 billion revolving facility. Operating cash flow was $393.0 million for the six months, while capital expenditures of $283.2 million were directed mainly to new and expanded yards, primarily in the U.S. Management reports the company is in compliance with its debt covenants, with a net leverage ratio of (0.15):1, and it did not repurchase any stock during the period. The company also continued to expand internationally and to open new facilities in the U.S., Germany, and Brazil.

    Feb 24, 2021
  18. 2021-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2020

    Copart's first-quarter fiscal 2021 results (three months ended October 31, 2020) show a strong top-line and profitability picture, with total service revenues and vehicle sales rising 7.0% to $592.9 million from $554.4 million. Service revenues grew 5.6% to $515.4 million, with U.S. up 4.5% and International up 14.2%, driven mainly by higher revenue per car that more than offset lower vehicle volumes tied to COVID-19 reduced accident activity. Operating income increased 21.0% to $248.6 million, and the operating margin expanded to 42% from 37%, as yard operations expense fell 3.7% despite the volume decline. Management attributes the improvement to higher average selling prices offsetting lower processed volume. Net income declined 8.2% to $200.3 million, and diluted EPS fell to $0.83 from $0.91. The decline is entirely attributable to income tax expense of $46.5 million (18.9% effective rate) versus a $16.1 million tax benefit in the prior year, which had been boosted by $62.4 million of excess tax benefits from stock option exercises. Excess tax benefits this quarter were $11.8 million, so the year-over-year comparison is distorted by the prior-year CEO option exercise. Excluding that item, underlying profitability appears considerably stronger. The balance sheet and liquidity position strengthened meaningfully. Cash, cash equivalents, and restricted cash rose 26.8% to $605.7 million, operating cash flow increased 21.7% to $258.5 million, and capital expenditures reached $147.1 million, up 11.6%, reflecting continued yard expansion. The company had no borrowings under its $1.05 billion revolving facility, which was amended in July 2020 and now matures in July 2023, and it reported a net leverage ratio of (0.15):1. Management stated that current liquidity is sufficient for at least the next 12 months, and it continues to disclose COVID-19 as a key risk to near-term vehicle volumes.

    Nov 20, 2020
  19. 2020-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2020

    Copart's 10-Q for the quarter ended April 30, 2020 shows a mixed picture: nine-month results were strong, but the March–April 2020 COVID-19 disruption sharply cut the most recent quarter. Net income for the three months fell 23.5% to $147.5 million ($0.62 diluted EPS) from $192.7 million ($0.81), while revenue was roughly flat at $550.4 million versus $553.1 million. Management attributes the weakness to fewer vehicle assignments from reduced accident volume during shelter-in-place orders, and says a substantial portion of those declines will flow into future quarters because most transactional revenue is recognized only at auction completion. Income tax expense rose sharply to $44.3 million (23.1% effective rate) mainly because excess tax benefits from option exercises were smaller than the prior year. Over the nine months, revenue rose 12.1% to $1.68 billion and operating income rose 16.6% to $610.4 million, driven by U.S. service revenue growth of 16.7%. Yard operations and G&A costs grew faster than revenue, reflecting expansion of new yards and the European business. Capital expenditures roughly doubled to $488 million, mostly for land and facilities, pushing investing outflows higher even as operating cash flow rose 43.5% to $651 million. Balance-sheet liquidity strengthened materially. Cash rose to $306.4 million after management drew and then repaid its credit facilities in March as a precaution, and total liquidity stood at about $1.1 billion. Total debt is modest, with a consolidated net leverage ratio of 0.15:1 against covenant limits of 3.25:1, and the company remains in compliance with all covenants. Management expects the pandemic to weigh on revenue in coming quarters, with the magnitude depending on the duration of economic shutdowns, and states that current liquidity is sufficient for at least the next twelve months.

    May 28, 2020
  20. 2020-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2020

    Copart's fiscal Q2 2020 10-Q (quarter ended January 31, 2020) shows a strong operating quarter. Service revenues rose 22.4% year over year to $510.0 million, driven mainly by U.S. volume growth from insurance contracts and higher total-loss frequency, while total revenues grew 18.6% to $575.1 million. Operating income climbed 27.4% to $209.9 million, and the operating margin expanded to 36% from 34%. Net income rose 28.5% to $168.7 million, and diluted EPS was $0.71 versus $0.55. Results were flattered by excess tax benefits from stock option exercises, which pushed the six-month effective tax rate down to 5.0% from 21.8%, so the net income growth overstates underlying operating momentum. The balance sheet and cash flow show a heavy investment cycle. Capital expenditures for the six months reached $400.4 million, nearly triple the prior-year pace, largely for land, yard buildouts, and facility lease buyouts in the U.S. Cash fell to $93.5 million from $186.3 million, though operating cash flow of $356.9 million was up 66%. Financing outflows included $101.4 million of employee stock-based tax withholding on a cashless CEO option exercise. Property and equipment grew to $1.79 billion, and operating lease liabilities of about $105 million were added under the new lease standard. Total debt is modest, with a $13.6 million revolver draw and roughly $400 million of senior notes, and the consolidated net leverage ratio is 0.38:1 against minimum liquidity of $895 million. International results were mixed. Service revenues grew 14.4% in the quarter, but International vehicle sales fell 25.8% as a contractual shift from purchase contracts to fee-based service contracts reduced principal-basis volume, and G&A rose 49% on European expansion. The company continues to open new yards in the U.S., Germany, and Brazil. Management states that current cash and operations are sufficient for at least the next 12 months. Investors should watch the sustainability of volume growth, the payoff from heavy capex, and the Brexit and international expansion risks flagged in the risk factors.

    Feb 27, 2020
  21. 2020-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2019

    Copart's first-quarter fiscal 2020 results (three months ended October 31, 2019) show strong top-line and profit growth. Total service revenues and vehicle sales rose 20.2% to $554.4 million from $461.4 million, driven mainly by U.S. service revenue growth of 25.4% on higher volume from insurance-company contracts and higher average auction selling prices. Operating income climbed 35.6% to $205.4 million, and the operating margin expanded to 37% from 33%. Net income more than doubled to $218.2 million, but this was inflated by a $16.1 million income tax benefit (effective tax rate of -8.0%), which reflects $62.4 million of excess tax benefits from employee stock option exercises. Investors should therefore treat the reported EPS of $0.91 diluted as flattered by a non-recurring-type tax item rather than purely operational improvement. The balance sheet and cash flow picture is more mixed. Total assets grew to $2.86 billion from $2.55 billion, largely due to a $218 million increase in property and equipment as capital expenditures roughly doubled to $131.8 million, and the adoption of ASC 842 added $136.4 million of operating lease right-of-use assets and $140.3 million of lease liabilities. Operating cash flow was strong at $212.5 million (up 97%), but free cash flow after capex was about $80.7 million. Cash fell slightly to $181.1 million, as $101.3 million was paid for employee stock-based tax withholdings tied to the CEO's cashless option exercise. The company had no borrowings outstanding under its $850 million revolving facility, and its net leverage ratio was 0.29:1, indicating a conservative capital structure with ample liquidity. Operational risks remain noteworthy. Management highlights continued international expansion, particularly in Germany, where insurers have historically been less involved in salvage disposition, and notes that acquisitions in new markets may operate at a loss for extended periods. The company also disclosed no single customer above 10% of revenue but acknowledged reliance on a limited number of major insurance sellers. Insiders hold 14.3% of common stock, and the company's results remain sensitive to total loss frequency, used car prices, and commodity prices for scrap metal. Management expects existing cash and operating cash flow to fund operations for at least the next 12 months.

    Nov 25, 2019
  22. 2019-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2019

    Copart's Q3 fiscal 2019 10-Q (quarter ended April 30, 2019) shows a strong operating quarter. Service revenues rose 15.3% year over year to $473.7 million, and total revenue and vehicle sales reached $553.1 million, up 15.7%. Operating income climbed 18.8% to $207.5 million, and operating margin expanded to 37.5% from 36.5%. Net income attributable to Copart grew 51.3% to $192.7 million, and diluted EPS rose to $0.81 from $0.52. Much of the earnings lift came from a sharply lower effective tax rate of 5.6% (versus 25.6% a year earlier), aided by $29.1 million of excess stock option tax benefits and $10.2 million of discrete tax items. Investors should therefore treat the quarter's net income growth as partly non-recurring and look more closely at operating income for underlying trends. Growth was driven primarily by the U.S. business, where service revenue increased 17.0% on higher volume from insurance contracts and higher average selling prices, while the company also benefited from the total loss frequency trend. International service revenue grew 4.2% in the quarter, held back by a $4.2 million foreign currency headwind. Yard operations expenses rose 14.4%, faster than revenue, reflecting higher per-unit processing costs and new facility depreciation. The company has been opening many new yards, including seven in Germany and several in the U.S., which supports future capacity but pressures near-term margins. Balance sheet and cash flow reflect heavy capital deployment. Cash fell to $102.8 million from $274.5 million at July 31, 2018, as Copart repurchased $365.0 million of stock (7.6 million shares) and paid $45.6 million in employee tax withholdings on option exercises, while capital expenditures reached $259.3 million. Operating cash flow still rose 20.2% to $453.5 million. Leverage remains modest, with a net leverage ratio of 0.43:1 and $7.0 million drawn on a $850 million revolver. The company adopted ASC 606 on August 1, 2018, which reduced opening retained earnings by $23.0 million but had no material impact on the quarter's earnings. The 10-Q also discloses an ongoing legal matter with KPIT, in which Copart holds a favorable post-trial order but the court has not yet issued its written ruling on prejudgment interest and related motions.

    May 29, 2019
  23. 2019-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2019

    Copart's fiscal Q2 2019 10-Q (quarter ended January 31, 2019) shows a business that kept growing revenue while earnings per share rose sharply, helped by a large share buyback. Total service revenues and vehicle sales rose 7.7% to $484.9 million for the quarter (6-month total: $946.3 million, up 7.8%). Operating income rose 9.1% to $164.7 million, and operating margin widened to 34% from 33%. Net income climbed 27% to $131.4 million, and diluted EPS reached $0.55 versus $0.43 a year earlier. Six-month diluted EPS was $1.01 versus $0.75. Part of the earnings lift came from a lower effective tax rate (20.4% versus 28.5%) following the Tax Cuts and Jobs Act, and from one-time gains on disposals of non-operating assets, so the quality of the EPS jump is partly non-recurring. The balance sheet shifted meaningfully. The company repurchased 7.6 million shares for $365.0 million in the first half, and cash fell to $108.2 million from $274.5 million. The revolving loan facility balance rose to $93.3 million from zero, and total debt including capital leases is roughly $492 million. Net leverage remains low at 0.53x, and management says liquidity of $0.8 billion is sufficient for at least the next 12 months. Operating cash flow grew 15.5% to $215.2 million, while capital expenditures of $136.7 million (up 23%) went into new yards and expansion. Working capital dropped to $256.4 million from $431.9 million. Growth drivers were mixed by region. U.S. service revenue grew 1.8% in the quarter and was hurt by the prior-year comparison against Hurricane Harvey. International revenue grew 18.0%, reflecting new German and Brazilian yards, the Finland acquisitions, and higher auction prices, although the U.S. vehicle sales business declined. Adoption of ASC 606 reduced opening retained earnings by $23.0 million but did not materially affect current-period earnings. Management also flagged an ongoing Georgia sales tax dispute that has been settled and a KPIT litigation award still pending a court ruling.

    Feb 28, 2019
  24. 2019-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2018

    Copart's first-quarter fiscal 2019 10-Q (quarter ended October 31, 2018) shows a strong operating quarter. Total service revenues and vehicle sales rose 10.1% to $461.4 million from $419.2 million, driven by 5.5% growth in service revenues (U.S. up 3.7%, International up 19.9%) and a 47.8% jump in vehicle sales, which is largely a function of the company's principal-basis activity in the U.K. and Germany. Operating income grew 22.2% to $151.4 million, and operating margin expanded from 30% to 33%, helped by a $15.2 million decline in U.S. yard operations expense that reflects the absence of abnormal Hurricane Harvey costs in the prior-year period. Net income rose 47% to $114.1 million, and diluted EPS increased to $0.47 from $0.32, though the effective tax rate fell to 23.3% from 32.0% largely because of the Tax Cuts and Jobs Act. The balance sheet and cash flow profile remain conservative. Cash and equivalents increased to $320.3 million, operating cash flow rose to $107.7 million, and the company reported no borrowings under its $850 million revolving facility. The consolidated total net leverage ratio was 0.13:1, and management says current liquidity is sufficient for at least the next 12 months. Capital expenditures of $62.3 million were up sharply as Copart continues to build new yards. The company also adopted ASC 606 on August 1, 2018, which reduced opening retained earnings by $23.0 million and shifted the timing of certain revenue and cost recognition to the vehicle auction date, with no material impact on current-quarter earnings. Key risks flagged in the filing include a pending Georgia sales and use tax dispute (the original $73.8 million assessment has been narrowed to $2.6 million in principal, but a trial is expected in 2019), ongoing litigation with KPIT, international expansion risks including Brexit, and continued dependence on insurance-company seller relationships. The company also disclosed that the U.K. Competition and Markets Authority could review certain acquisitions. Stock repurchases were paused during the quarter, with 89.1 million shares still authorized.

    Nov 29, 2018
  25. 2018-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2018

    Copart's Q3 fiscal 2018 10-Q (quarter ended April 30, 2018) shows a strong operating quarter. Total service revenues and vehicle sales rose 27.9% to $478.2 million, driven by U.S. volume growth, higher average auction selling prices, and the Hurricane Harvey flood-vehicle surge. Operating income climbed 27.6% to $174.6 million, and net income attributable to Copart rose 40.7% to $127.3 million, or $0.52 diluted EPS. Note that the quarter's results include a $6.2 million abnormal Harvey-related cost in the U.S. yard operations line, and the nine-month period carries $68.6 million in such costs. The nine-month net income of $308.1 million was lower than the prior year's $323.9 million, but that comparison is distorted by a $106.7 million excess tax benefit from stock option exercises in the prior-year period. Adjusted for the 2017 tax benefit, underlying profitability improved meaningfully. Balance sheet strength improved materially. Copart repaid its $231.0 million revolver balance in full during the nine months, leaving zero outstanding borrowings at April 30, 2018, versus $231.0 million at July 31, 2017. Total debt fell to roughly $400 million, and the consolidated total net leverage ratio stood at 0.33:1, far below the 3.25:1 covenant threshold. Working capital rose to $360.3 million, and operating cash flow of $377.2 million funded $179.7 million in property and equipment purchases. Capital expenditures, including acquisitions, were $188.5 million for the nine months, reflecting continued yard expansion in the U.S. and internationally. Key risks flagged in the filing include a pending Georgia sales and use tax dispute with a remaining $2.6 million in principal at issue (plus interest) and the broader $96.1 million original assessment, and an ongoing Tax Cuts and Jobs Act accounting measurement period, with a $11.0 million net provisional tax charge recorded. The filing also discloses a favorable May 22, 2018 jury verdict against KPIT, with awards of $4.7 million (fraud) and $16.3 million (professional negligence), offset by a $4.9 million counterclaim; these are gain contingencies not yet recognized. Management expects the Tax Act accounting to be finalized by January 2019.

    May 25, 2018
  26. 2018-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2018

    Copart's fiscal Q2 2018 10-Q (quarter ended January 31, 2018) shows a strong operating quarter driven by U.S. volume and pricing, partly offset by elevated Hurricane Harvey costs. Total service revenues and vehicle sales rose 31.4% year over year to $459.1 million, and service revenues grew 29.6% to $402.0 million, with U.S. service revenue up 30.7%. Operating income rose 38.6% to $150.9 million and the operating margin expanded to 33% from 31%. Management attributed the U.S. growth to increased volume from insurance contracts, growth from existing suppliers, higher total loss frequency, and Hurricane Harvey's flood-damaged vehicle volume, along with higher average selling prices. Yard operations costs were pressured by $62.4 million of abnormal Harvey-related expenses for the six-month period, which were expensed rather than capitalized into vehicle pooling costs. Net income attributable to Copart was $103.3 million for the quarter ($0.43 diluted EPS), up from $66.1 million ($0.28) a year earlier. Results were materially helped by a lower effective tax rate of 28.5% versus 34.0%, but the six-month period carried a $10.6 million net expense from the one-time Tax Cuts and Jobs Act transition tax, which remains provisional. Six-month net income of $180.9 million was well below the prior-year figure of $233.3 million, which was inflated by $102.7 million of excess stock-option tax benefits. The balance sheet strengthened meaningfully. Total debt and capital lease obligations fell to roughly $512.5 million (from about $633 million at July 31, 2017), driven by $120.3 million of net revolver repayments, and the net leverage ratio was 0.56:1 against covenant limits of 3.25:1. Cash of $195.3 million, operating cash flow of $186.4 million for six months (up 19.8%), and capital expenditures of $110.9 million indicate continued investment in yards. Key risks disclosed include a KPIT litigation trial scheduled for April 2018, a Georgia sales-tax dispute with $2.6 million principal still in dispute after reductions from an original $96.1 million assessment, international expansion and Brexit exposure, and the suspension of salvage operations in India.

    Feb 27, 2018
  27. 2018-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2017

    Copart's first-quarter fiscal 2018 results (three months ended October 31, 2017) show strong top-line and operating growth. Total service revenues and vehicle sales rose 21.2% to $419.2 million from $346.0 million, driven by U.S. service revenue growth of 22.6% on higher average auction selling prices, mix shift, increased volume from existing and new insurance contracts, and Hurricane Harvey-related flood-damaged vehicle volume. Operating income increased 18.2% to $123.9 million, though operating margin was flat at roughly 30% because yard operations expense rose faster than revenue. Management attributed about $35.8 million of abnormal Hurricane Harvey costs (temporary storage, subhauler premiums, overtime, and equipment leases) to yard operations, and those costs were expensed rather than capitalized into vehicle pooling costs. Net income attributable to Copart fell sharply to $77.5 million ($0.32 diluted EPS) from $167.3 million ($0.70 diluted EPS). The decline is almost entirely due to the income tax line: the prior-year quarter included a $64.7 million tax benefit driven by $101.4 million of excess tax benefits from stock option exercises, whereas this quarter's effective tax rate was 32.0% with only $3.8 million of excess tax benefits. The year-over-year comparison of earnings therefore materially overstates the deterioration in underlying operating performance. The balance sheet and liquidity position strengthened. Cash rose to $224.2 million, working capital increased to $365.2 million, and the company repaid $49.0 million on its revolver, reducing borrowings to $182.0 million from $231.0 million. Operating cash flow grew 25.7% to $93.4 million. The consolidated total net leverage ratio was 0.69:1, and minimum liquidity was $859.2 million, well above covenant thresholds. Accounts receivable rose $54.8 million to $366.6 million, reflecting seasonal and volume-driven growth. Pending matters include the Georgia sales tax dispute, now reduced to $2.6 million of principal plus interest after a consent order, and the KPIT ERP litigation, where the court's September 2017 summary judgment ruling narrowed the claims.

    Nov 28, 2017
  28. 2017-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2017

    Copart's Q3 fiscal 2017 10-Q (quarter ended April 30, 2017) shows a strong operating quarter. Total service revenues and vehicle sales rose 7.7% year over year to $373.9 million, and service revenues grew 9.5% to $332.3 million, driven mainly by U.S. volume growth from insurance-company contracts and higher average selling prices. Operating income increased 12.2% to $136.8 million, and operating margin expanded to 36% from 35%. Diluted EPS was $0.38 versus $0.32 a year earlier, but this comparison is distorted by the two-for-one stock split effected in April 2017 and by the timing of tax benefits. The nine-month results are more distorted by the tax line. The effective tax rate fell to 2.9% from 35.8%, because the adoption of ASU 2016-09 let the company recognize $106.7 million of excess tax benefits from stock option exercises as discrete income tax benefits. Net income for the nine months therefore rose to $323.9 million from $186.2 million, but underlying operating income grew a more modest 16.7% to $350.5 million. Investors should treat the tax-driven profit jump as non-recurring in nature, even though option-exercise activity may continue to produce similar benefits. The balance sheet strengthened. Cash rose to $189.6 million, working capital increased to $372.1 million, and the company repaid $73 million of its revolver, leaving $165 million drawn on an $850 million facility. The net leverage ratio is a low 0.74:1, and management says current cash and operations are sufficient for at least 12 months. Ongoing risks include the Georgia sales tax dispute (now reduced to $2.6 million in principal plus interest after a May 2017 consent order), the KPIT litigation, and Brexit-related exposure in the U.K., where about $155 million of the $189.6 million in cash is held by foreign subsidiaries.

    May 25, 2017
  29. 2017-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2017

    Copart's fiscal Q2 2017 10-Q (quarter ended January 31, 2017) shows a strong operating quarter. Total service revenues and vehicle sales rose 16.7% to $349.5 million, with service revenues up 19.1% to $310.0 million, driven mainly by U.S. volume growth from insurance contracts and existing suppliers, which management attributes to higher total loss frequency. Operating income grew 18.2% to $108.9 million, and operating margin held at about 31%. Net income rose to $66.1 million, or $0.56 diluted EPS, from $59.0 million, or $0.47, a year earlier. Six-month results were inflated by a $102.7 million excess tax benefit from employee stock option exercises, which pushed the six-month effective tax rate to (15.2)% and net income to $233.3 million. Excluding that item, underlying earnings growth was much more modest, so investors should not extrapolate the reported six-month figures. The balance sheet and cash flow picture is solid but has some watch items. Operating cash flow rose to $155.5 million for the six months from $83.3 million, while capital expenditures of $92.4 million supported new yard openings in the U.S., Ireland, Spain and Germany. Revolving loan borrowings increased to $310.0 million from $238.0 million, and the company's consolidated net leverage ratio was 1.06:1, well inside its covenant limits. Management states that current cash and operating cash flow are sufficient for at least 12 months. Cash of $174.9 million is largely held by foreign subsidiaries, and $134.8 million of stock-based withholding payments was a significant use of cash. The most important open risk is the Georgia Department of Revenue sales and use tax assessment of $96.1 million, which the company is contesting before the Georgia Tax Tribunal. The company believes it has adequately provided for any assessment, but a resolution adverse to the company could have a material effect on results and financial position. Additional risks include reliance on a limited number of major insurance sellers, the ongoing KPIT litigation, currency exposure to the British pound and Brexit-related uncertainty, and the company's continued shift toward international expansion.

    Feb 28, 2017
  30. 2017-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2016

    Copart's first-quarter fiscal 2017 results (three months ended October 31, 2016) were driven by strong top-line growth, but reported net income was inflated by a one-time tax benefit. Total service revenues and vehicle sales rose 19.8% to $346.0 million from $288.8 million, led by a 22.4% increase in service revenues, with the U.S. contributing $52.8 million of the $56.1 million service revenue gain. Operating income grew 21.5% to $104.8 million, and the operating margin held at roughly 30%. Yard operations expenses rose 23.3%, outpacing revenue growth, and G&A rose 16.9%, partly due to payroll taxes on employee stock option exercises. Net income of $167.3 million (diluted EPS of $1.41) was far above the prior year's $52.6 million ($0.41), but this was almost entirely due to an income tax benefit of $64.7 million. That benefit reflects $101.4 million of excess tax benefits from employee stock option exercises, which are now recognized in the income statement under ASU 2016-09. Investors should therefore treat the quarter's earnings as non-recurring at the reported level; pre-tax income rose only 25.4% to $102.5 million. The tax-driven figure also depends on the timing and volume of option exercises, which are not predictable. The balance sheet and liquidity picture shifted notably. Total assets rose to $1.77 billion and total debt increased, mainly through $341.9 million of revolver borrowings after the July 2016 credit amendment expanded the facility to $850 million. The company paid $134.6 million in employee tax withholdings tied to net-settled option exercises, which drove a $16.7 million net cash outflow from financing activities. Operating cash flow was $74.3 million, slightly down year over year, and the company is working through a $96.1 million Georgia sales tax assessment it is contesting, which it has accrued for and believes it can defend.

    Nov 30, 2016
  31. 2016-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2016

    Copart's 10-Q for the quarter ended April 30, 2016 shows strong top-line and profit growth, offset by a sharp decline in cash and a large shift toward debt-funded capital allocation. Total service revenues and vehicle sales rose 16.9% year over year to $347.2 million in the third quarter, driven mainly by North American volume. Operating income grew 28.7% to $121.9 million, and operating margin expanded from 31% to 35%. Net income rose 28.6% to $74.0 million, and diluted EPS increased to $0.64 from $0.44. Nine-month results were also solid, with revenue up 8.3% and net income up 14.2%. The balance sheet and cash flow profile changed meaningfully. Cash and equivalents fell from $456.0 million to $137.7 million, and working capital dropped by roughly half. Management spent $442.9 million on share repurchases in the nine months, including a $325.0 million Dutch Auction tender offer completed in December 2015 at $39.00 per share. Capital expenditures more than tripled to $143.8 million, and total debt rose to about $700 million after a March 2016 amendment added $93.8 million of incremental term loan and raised the revolver to $350 million. Stockholders' equity declined to $716.5 million from $964.5 million, and shares outstanding fell to 109.2 million from 120.2 million. The main risk flagged for investors is the Georgia Department of Revenue's $96.1 million sales tax assessment, which Copart is contesting before the Georgia Tax Tribunal. Management says it has adequately provided for any assessment and believes it has strong defenses, but an adverse outcome could materially affect results. Other items include the KPIT litigation, international expansion risks, and the transition to an internally developed operating system.

    May 26, 2016
  32. 2016-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2016

    Copart, Inc. (CPRT) reported fiscal Q2 2016 results (quarter ended January 31, 2016) showing continued top-line growth and solid profitability, but a sharply weaker balance sheet following a $325.0 million Dutch Auction tender offer completed December 30, 2015. Total service revenues and vehicle sales rose 8.5% year over year to $299.7 million for the three months, driven mainly by North American volume growth, while six-month revenue grew 3.9% to $588.5 million. Operating income increased 14.4% to $92.1 million for the quarter, with operating margin expanding to 31% from 29%. Net income rose 13.0% to $59.0 million, and diluted EPS increased to $0.48 from $0.40, helped by a lower share count. The balance sheet and liquidity picture changed materially. Cash and cash equivalents fell 69% to $141.4 million from $456.0 million at July 31, 2015, as the company funded the tender offer, $77.8 million of capital expenditures, and $37.5 million of term loan principal payments, partly offset by a $68.0 million revolver draw. Working capital dropped to $241.7 million from $521.5 million, and stockholders' equity declined to $731.4 million from $964.5 million. Shares outstanding fell to roughly 112.0 million from 120.2 million. Accumulated other comprehensive loss widened to $103.1 million, largely from foreign currency translation, which is a meaningful headwind given the company's growing international footprint. The key investor watch items are the $96.1 million Georgia sales and use tax assessment, which management believes it has adequately provided for but is contesting before the Georgia Tax Tribunal; the KPIT litigation over the terminated ERP implementation; and the company's ongoing international expansion, including its shift to a proprietary operating system and the migration of U.K. principal-basis contracts to an agency model. Management stated that current cash and operations are sufficient for at least the next 12 months, and that $100.4 million of the $141.4 million in cash is held by foreign subsidiaries that management intends to reinvest outside the U.S.

    Feb 25, 2016
  33. 2016-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2015

    Copart's first-quarter fiscal 2016 results (quarter ended October 31, 2015) show modest top-line growth with flat profitability. Total service revenues and vehicle sales were $288.8 million, down 0.5% year over year, as service revenues grew 1.8% to $251.0 million while vehicle sales fell 13.5% to $37.9 million, mainly from the U.K. principal-based business. Operating income rose 4.7% to $86.2 million and net income was essentially flat at $52.4 million, though diluted EPS rose to $0.42 from $0.40 on a 4.6% lower diluted share count. Higher interest expense from the December 2014 debt refinancing ($5.7 million versus $1.9 million) offset operating gains, and the effective tax rate was steady at about 36%. The balance sheet strengthened. Cash and equivalents rose to $472.9 million, the company bought $21.9 million of marketable equity securities, and working capital increased to $561.7 million. Operating cash flow fell 8.1% to $76.6 million, mainly because of working capital changes, while capital expenditures declined to $20.2 million. Total debt was about $609 million, and the company made its scheduled $18.8 million term loan amortization payment. The most important subsequent event is a modified Dutch auction tender offer, launched November 24, 2015, to repurchase up to 7,317,073 shares at $38.00 to $41.00 per share, which would total up to $300.0 million if completed at the maximum price. This is a large use of the existing cash balance and a significant capital return, and investors will watch whether it is funded from cash on hand or additional borrowing. Separately, the Georgia Department of Revenue issued a $96.1 million sales tax assessment, which management believes is adequately reserved and is contesting in the Georgia Tax Tribunal. An adverse outcome could be material.

    Nov 24, 2015
  34. 2015-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2015

    Copart, Inc. reported its financial results for the quarterly period ended April 30, 2015. The company demonstrated revenue growth in its core service offerings, with service revenues increasing year-over-year, although total service revenues and vehicle sales saw a slight decline due to a significant drop in vehicle sales. This decline in vehicle sales was largely attributed to lower average auction selling prices in the UK and North America, influenced by factors like commodity prices and insurance volume. Operationally, the company managed its expenses effectively. While yard operations costs increased due to higher volumes, general and administrative expenses decreased, partly due to reduced technology development spending and lower stock-based compensation. A significant event was the impairment charge of $29.1 million in the prior year related to previously capitalized software development costs, which did not recur in the current period, leading to a substantial improvement in operating income. The company also significantly increased its cash and cash equivalents and working capital, primarily driven by new long-term debt issuance. Looking ahead, Copart continues its expansion strategy, with no acquisitions in the current nine-month period but finalized purchase price allocations for prior acquisitions. The company faces ongoing risks related to international expansion, competition, and regulatory environments, including a significant pending sales tax audit in Georgia. Despite these challenges, management believes current liquidity is sufficient for the next 12 months.

    May 28, 2015
  35. 2015-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2015

    Copart, Inc. reported its financial results for the second quarter and first six months ended January 31, 2015. Total service revenues and vehicle sales saw a slight increase of 0.1% for the six-month period, reaching $566.6 million, driven by a 5.0% rise in service revenues ($485.1 million) which was partially offset by a significant 21.8% decrease in vehicle sales ($81.5 million). The company demonstrated improved operational efficiency, with total operating expenses decreasing by 6.1% for the six-month period to $403.8 million. This led to a notable increase in operating income by 19.5% to $162.9 million. Net income for the six-month period grew by 20.8% to $104.8 million, with diluted earnings per share increasing to $0.80 from $0.66 in the prior year. The company also reported a substantial increase in its cash and cash equivalents, up 272.1% to $590.4 million at the end of the period, primarily due to significant long-term debt issuance.

    Mar 4, 2015
  36. 2015-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2014

    Copart, Inc. (CPRT) reported solid financial performance for the third quarter ended October 31, 2014. The company demonstrated robust revenue growth, driven primarily by an 8.9% increase in service revenues, largely attributable to strong performance in North America and the UK. This growth was fueled by an increase in salvage frequency and an improved revenue per car. While vehicle sales revenue saw a decline of 18.2%, the overall service and vehicle sales revenue increased by 3.8% to $290.4 million. Operationally, Copart effectively managed its expenses, with total operating expenses decreasing by 3.2%. This resulted in a significant improvement in operating income, which grew by 26.3% to $82.4 million. Net income also saw a substantial increase of 27.0% to $52.6 million, translating to a diluted EPS of $0.40. The company's liquidity remains strong, with cash and cash equivalents increasing by 25.1% to $198.5 million, and a healthy working capital position. The company also reported compliance with all debt covenants.

    Nov 26, 2014
  37. 2014-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2014

    Copart, Inc. reported its financial results for the quarter ended April 30, 2014. The company demonstrated revenue growth driven by increases in service revenues and a slight uptick in vehicle sales. Operating expenses also rose, notably due to a significant impairment charge related to software development and increased yard operations costs. Despite these challenges, the company managed its liquidity effectively and maintained compliance with its debt covenants. Key financial highlights include a substantial increase in cash and cash equivalents, bolstered by strong operating cash flows. While service revenues saw a healthy increase, driven by both domestic and international expansion, the company recorded a significant $29.1 million impairment charge for software development that impacted profitability. Management highlighted the ongoing expansion efforts in international markets and the strategic benefits of acquisitions, while also acknowledging the associated integration costs and operational complexities. Investors should note the continued growth in service revenues, a strong cash position, and ongoing international expansion, balanced against the impact of the software impairment and rising operational costs.

    Jun 9, 2014
  38. 2014-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2014

    Copart's fiscal Q2 2014 10-Q (quarter ended January 31, 2014) shows continued top-line growth and solid profitability. Six-month service revenues rose 12.1% to $462.1 million and total service revenues and vehicle sales rose to $566.3 million, while operating income was roughly flat at $136.4 million versus $137.1 million, and net income rose 1.5% to $86.8 million. Second-quarter net income was $45.3 million ($0.35 diluted EPS), up from $39.6 million ($0.31) a year earlier. Growth was driven mainly by North American volume, including the Salvage Parent acquisition, plus European and Brazilian expansion. Margin pressure came from higher yard operation and G&A costs, which were partly tied to integration and relocation charges. The comparison is also flattered by Hurricane Sandy's $20.1 million of abnormal yard costs in the prior-year period. Balance sheet and cash flow picture: operating cash flow improved to $75.8 million, up $22.7 million, mainly from lower receivables growth. Capital spending fell sharply to $51.8 million from $85.7 million. Cash declined to $46.2 million, and total debt, including the current portion, fell to about $338 million as scheduled Term Loan amortization of $18.8 million per quarter continued. Stockholders' equity grew to $880.7 million. The company repurchased no shares during the six months, versus $14.5 million a year earlier. Key risks flagged by management include a $73.8 million Georgia sales tax assessment that the company contests, a pre-acquisition contingency of $7.0 million to $28.0 million tied to Salvage Parent (with $14.0 million accrued), goodwill of $291.2 million exposed to impairment in international markets, an ongoing ERP conversion through 2015, and the company's reliance on a limited number of insurance-company sellers.

    Mar 5, 2014
  39. 2014-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2013

    Copart's first-quarter fiscal 2014 10-Q (quarter ended October 31, 2013) shows a business that grew revenue strongly while earnings growth lagged. Total service revenues and vehicle sales rose 17.2% year over year to $279.9 million, driven by service revenue growth of 16.0% (including the Salvage Parent acquisition, international expansion, and North American volume growth) and vehicle sales growth of 22.4%. However, operating income fell 12.6% to $65.0 million, as yard operations expense rose 29.6% and G&A rose 38.0%, reflecting integration costs, restructuring, ERP and IT transition expenses, and new acquisitions. Net income declined 9.6% to $41.4 million, and diluted EPS fell to $0.32 from $0.36. Management attributes the volume growth to a general increase in salvage frequency, driven by declining used car values relative to repair costs. The balance sheet strengthened, with total assets rising to $1.40 billion and stockholders' equity to $822.6 million, while goodwill increased to $281.4 million following acquisitions in Brazil, the UAE, Germany, Spain, and North America. Cash rose to $77.1 million and operating cash flow was $67.7 million, though this was down $7.6 million year over year, largely due to prepayments and working capital changes. Capital expenditures fell sharply to $21.3 million from $47.6 million, which helped free-cash-flow conversion. Debt continued to amortize, with the $350.0 million term loan reduced by $18.8 million per quarter, and the company repurchased no shares during the quarter. Investors should monitor several contingent items. Management recorded a $14.0 million estimate for a pre-acquisition contingency tied to undocumented historical sales at Salvage Parent, with a potential range of $7.0 million to $28.0 million. A Georgia sales and use tax assessment totaling $73.8 million is being contested, and the company states it has adequately provided for it. Management also expects integration costs to continue for two more quarters, $2.8 million in accelerated depreciation is expected in fiscal 2014, and the ERP conversion runs through 2015. Taken together, the quarter reflects robust top-line momentum offset by rising operating costs and integration-related pressure on margins and earnings.

    Dec 10, 2013
  40. 2013-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2013

    Copart's Q3 fiscal 2013 10-Q (quarter ended April 30, 2013) shows continued top-line growth and profitability, tempered by margin pressure and heavy capital spending. Total service revenues and vehicle sales rose 13.8% to $277.6 million for the quarter and 12.2% to $782.7 million for the nine months. Net income for the quarter was $53.2 million, down 4.0% from $55.5 million, and diluted EPS was $0.41 versus $0.43. Operating income declined 5.8% to $82.8 million. Management attributed the margin pressure largely to Hurricane Sandy, which drove $5.6 million of abnormal yard costs in the quarter (and $25.7 million year to date), along with rising international costs, a decline in used car and commodity pricing that reduced average revenue per vehicle, and accelerated depreciation tied to a data center transition. The balance sheet expanded meaningfully. Total assets grew to $1.30 billion from $1.16 billion at July 31, 2012, driven by property and equipment (up to $677 million, reflecting land purchases) and goodwill from acquisitions in Brazil and Germany. Cash was roughly flat at $139.3 million, while nine-month operating cash flow fell 7% to $183.0 million as receivables rose on Hurricane Sandy volumes. Capital expenditures more than quadrupled to $114.3 million, and the company repaid $56.3 million of term debt, leaving $387.5 million outstanding under its credit facility. Stockholders' equity increased to $724.4 million, and the company repurchased only 500,000 shares during the period. Subsequent to quarter-end, Copart committed roughly $77.0 million to three acquisitions, including Salvage Parent (Quad City Salvage Auction and related businesses, 39 locations across 14 states). Investors should watch the Georgia sales tax assessment of $73.8 million, which management has not reserved for, and the company's ongoing transition to principal-based sales in the U.K., which weighs on gross margins.

    Jun 5, 2013
  41. 2013-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2013

    Copart's fiscal Q2 2013 10-Q (quarter ended January 31, 2013) shows a company growing revenue and earnings while absorbing unusual costs and heavy investment. Total service revenues and vehicle sales rose 11.2% to $266.2 million for the quarter, and operating income was roughly flat at $62.8 million versus $63.5 million a year earlier. Net income declined slightly to $39.6 million from $40.6 million, and diluted EPS held at $0.31, helped by a meaningfully lower share count after buybacks. Results were materially affected by Hurricane Sandy, which generated about $20.1 million of abnormal yard operation costs and an estimated net loss of $11.9 million in the quarter (roughly $0.06 of diluted EPS). Without that impact, the business would have shown considerably stronger profitability. The balance sheet and cash flow picture is more mixed. Cash fell from $140.1 million to $49.5 million, and operating cash flow dropped to $53.1 million from $90.3 million, driven largely by a $59.8 million increase in accounts receivable tied to Hurricane Sandy volumes and unsold salvage inventory. Capital expenditures surged to $85.7 million, including land purchases, and the company spent $31.2 million on acquisitions in Brazil and Germany. Total debt decreased with scheduled term loan amortization, leaving $406.3 million outstanding under the Term Loan, with interest rate swaps covering the full balance. Investors should weigh several risk items: a pending Georgia sales tax assessment of $73.8 million that management has not reserved for, the ongoing ERP system rollout through 2014, accelerated depreciation tied to shorter data center asset lives, and international expansion that carries margin pressure from the UK principal-based model. Management states current cash and operations are sufficient for at least the next 12 months.

    Mar 12, 2013
  42. 2013-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2012

    Copart's first-quarter fiscal 2013 10-Q (quarter ended October 31, 2012) shows solid top-line and profit growth. Total service revenues and vehicle sales rose 5.9% to $238.9 million, operating income increased 13.8% to $74.4 million, and net income grew 11.4% to $45.8 million, with diluted EPS of $0.36 versus $0.31 a year earlier. Service revenue growth of 6.8% was driven mainly by unit volume, while vehicle sales growth was modest at 2.1%. Yard operations expense was flat year over year despite higher volume, which helped margins. Cash flow from operations rose to $75.3 million, but capital spending jumped to $47.6 million, largely for land and the first Brazil facility, leaving cash down to $131.4 million. The balance sheet strengthened on equity (total stockholders' equity up to $608.9 million from $561.1 million) and debt reduction, with $18.8 million of scheduled term loan amortization paid and $425.0 million still outstanding under the Term Loan. Share repurchases were light at $13.9 million (500,000 shares), versus $44.0 million a year earlier, and the company has 47.7 million shares remaining under its authorization. Management indicates current cash and operations are sufficient for at least 12 months. Key risks flagged include a $73.8 million Georgia sales tax assessment that the company has not reserved for, a pending EEOC-related matter that was closed, and post-quarter acquisitions in Brazil and Germany totaling roughly $46.0 million plus additional land purchases. Management also warned that Hurricane Sandy will drive abnormal, unquantified costs in fiscal 2013 as volumes exceed regional capacity, and noted a change in data-center asset useful lives that adds $6.6 million of depreciation in fiscal 2013.

    Dec 7, 2012
  43. 2012-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2012

    Copart, Inc. reported its financial results for the quarterly period ended April 30, 2012. The company demonstrated revenue growth, primarily driven by an increase in service revenues due to higher revenue per vehicle. This was supported by factors such as improved commodity and used car pricing, and a favorable shift in the mix of vehicles sold. Despite a slight decrease in unit volume, the company managed to grow its top line through these pricing and mix dynamics. Financially, Copart saw an increase in net income, reflecting improved operational efficiencies and revenue growth. The company's liquidity position strengthened with a significant increase in cash and cash equivalents. Management expressed confidence in the company's ability to meet its operating and working capital requirements for the next 12 months, supported by operational cash flow and existing cash reserves. The company also continues to execute its expansion strategy, including facility acquisitions and development.

    Jun 11, 2012
  44. 2012-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2012

    Copart's fiscal Q2 2012 10-Q (quarter ended January 31, 2012) shows a company delivering solid top-line and earnings growth while reshaping its balance sheet. Total service revenues and vehicle sales rose 9.0% to $227.9 million for the quarter, and six-month revenue grew 8.0% to $453.5 million. Net income increased 7.1% to $40.6 million for the quarter ($0.62 diluted EPS vs. $0.46 a year earlier), and six-month net income rose to $81.8 million. Management attributes much of the service revenue growth to unit volume gains from new insurance contracts and the UK shift to an agency model, plus higher average selling prices tied to commodity and used-car pricing. Results were partly offset by an $8.8 million impairment of long-lived assets (real estate, computer hardware, and a private aircraft fleet) and higher interest expense following the $500 million term loan. Balance sheet activity was dominated by capital allocation. Management repurchased $135.4 million of stock in the first half (3.04 million shares at an average of $44.36), reducing shares outstanding to 63.3 million from 66.0 million at fiscal year-end. Funding came from the $125 million term loan draw, and total debt including current portion reached roughly $481 million. Cash rose to $127.6 million, and working capital was $142.0 million. Operating cash flow was $90.3 million for the six months, down $3.0 million year over year, and capex fell sharply to $14.9 million from $42.3 million. The key risk for investors is a Georgia Department of Revenue sales tax assessment totaling $73.8 million, which management believes it can defend and has not accrued. Other items to monitor include a relocation of corporate headquarters to Dallas in 2012, an EEOC investigation over background-check policies, several California wage-and-hour class actions, and the planned multi-year ERP conversion through 2013. Management states it has sufficient liquidity for at least the next 12 months.

    Mar 9, 2012
  45. 2012-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2011

    Copart, Inc.'s (CPRT) quarterly report for the period ended October 31, 2011, indicates a solid performance with a notable increase in net income and revenue compared to the prior year. Service revenues grew by 3.4%, and vehicle sales saw a significant jump of 20.8%, contributing to overall revenue growth. The company's strategic initiatives, including the adoption of new revenue recognition standards and expansion of its facility network, appear to be driving positive results. Despite increased interest expenses due to new debt financing, Copart managed to improve its profitability, demonstrating operational efficiency and effective cost management in key areas.

    Dec 12, 2011
  46. 2011-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2011

    Copart, Inc. (CPRT) reported its quarterly results for the period ending April 30, 2011. The company demonstrated solid top-line growth, with total service revenues and vehicle sales increasing by 7.4% year-over-year for the three-month period, reaching $236.8 million. This growth was primarily driven by an increase in unit volume across various seller segments and the strategic shift towards an agency model in the UK. Net income for the quarter rose to $50.1 million, a 13.0% increase compared to the prior year's quarter, reflecting improved operational efficiency and revenue growth. Operationally, the company saw an increase in yard operation expenses, which was partially attributable to the adoption of a new accounting standard (ASU 2009-13) that accelerated revenue and expense recognition. Despite this, Copart managed to control general and administrative expenses, which decreased slightly year-over-year. A significant event during the quarter was the funding of a $400 million term loan, which was used in part for a substantial share repurchase, signaling confidence from management and a commitment to returning value to shareholders. The company ended the quarter with a strong liquidity position, reinforcing its ability to meet its financial obligations and fund ongoing operations and strategic initiatives.

    Jun 9, 2011
  47. 2011-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2011

    Copart, Inc. reported solid financial performance for the quarter and six months ended January 31, 2011, demonstrating continued revenue growth and profitability. The company saw an increase in both service revenues and vehicle sales, driven by higher unit volumes and an improved average selling price of vehicles. This growth was supported by strategic initiatives including the expansion of facilities and the ongoing impact of their VB2 internet auction technology. Significant financial events during the period included a substantial debt issuance to fund a large share repurchase tender offer, indicating a focus on capital structure optimization and shareholder returns. Operationally, Copart continues to expand its physical footprint and refine its service offerings. The adoption of new accounting standards for revenue recognition had a notable impact on the timing of revenue and expense recognition, accelerating a portion of future revenues. While the company faces various risks, including competition, regulatory changes, and macroeconomic factors, management expressed confidence in its ability to meet operating and working capital requirements for the foreseeable future.

    Mar 7, 2011
  48. 2011-Q1

    COPART INC Quarterly Report for Q1 Ended Oct 31, 2010

    Copart, Inc. reported solid financial performance for the three months ended October 31, 2010, with total service revenues and vehicle sales increasing to $212.7 million, up from $185.5 million in the prior year period. This growth was driven by a 16.8% increase in service revenues, bolstered by the adoption of new accounting standards (ASU 2009-13) which recognized previously deferred revenue, alongside organic growth from increased unit volume and rising average vehicle selling prices. The company demonstrated effective cost management, with operating costs increasing at a slightly lower rate than revenue, leading to an increase in operating income to $59.6 million from $56.5 million. Net income rose to $37.8 million, or $0.45 per diluted share, compared to $35.3 million, or $0.42 per diluted share, in the same period last year. Copart also actively managed its capital through a significant stock repurchase program, spending $75.7 million to buy back shares, while maintaining a strong liquidity position with over $260 million in cash and cash equivalents.

    Dec 3, 2010
  49. 2010-Q3

    COPART INC Quarterly Report for Q3 Ended Apr 30, 2010

    Copart, Inc. reported solid financial performance for the nine months ended April 30, 2010, with net income increasing to $115.4 million from $106.5 million in the prior year period. This growth was driven by an increase in both service revenues and vehicle sales, reflecting higher average selling prices for vehicles, partly influenced by rising commodity and used car prices, as well as the beneficial impact of their VB2 internet auction platform. The company also saw improved operational efficiencies leading to a decrease in yard operation expenses on a year-over-year basis for the nine-month period. The company's liquidity remains strong, with cash and cash equivalents increasing significantly to $264.3 million as of April 30, 2010. Copart continues to expand its physical footprint, adding new facilities in North America and the UK, and remains committed to its strategic growth initiatives. While international expansion, particularly in the UK, presents certain risks and has led to operational shifts (e.g., from principal to agency model), the overall financial health appears robust, supported by healthy operating cash flow and an undrawn credit facility.

    Jun 9, 2010
  50. 2010-Q2

    COPART INC Quarterly Report for Q2 Ended Jan 31, 2010

    Copart, Inc. reported solid financial performance for the quarter and six months ended January 31, 2010. Revenue saw a modest increase, driven primarily by higher service revenues, which benefited from increased average revenue per car due to rising commodity prices, a weaker US dollar, and generally higher used car prices. The company also reported improved net income, demonstrating effective cost management, particularly in yard operations. Despite some challenges like the migration of UK contracts from a principal to an agency model which impacted vehicle sales revenue, Copart showcased resilience and operational efficiency. Financially, the company strengthened its balance sheet with an increase in cash and cash equivalents. Capital expenditures remained significant as Copart continued its expansion strategy by acquiring and developing new facilities. Management expressed confidence in the company's ability to meet its operating and working capital requirements for the next 12 months, supported by strong operational cash flow and existing cash reserves. The report also highlighted the strategic importance of the VB2 internet auction technology in driving growth and enhancing buyer reach.

    Mar 12, 2010