10-QPeriod: Q1 FY2022

COPART INC Quarterly Report for Q1 Ended Oct 31, 2021

Filed November 19, 2021For Securities:CPRT

Summary

Copart, Inc. reported robust performance for the three months ended October 31, 2021, demonstrating significant year-over-year growth. Total service revenues and vehicle sales saw a substantial increase, driven primarily by strong performance in the United States. This growth was fueled by higher revenue per car and increased volume, attributed to the reopening of the U.S. economy and ongoing supply chain disruptions in the automotive sector. The company's operational expenses also increased, largely in line with revenue growth, particularly in yard operations and the cost of vehicle sales. Despite these increased costs, Copart maintained strong profitability. The company's liquidity position remains solid, with a notable increase in cash, cash equivalents, and working capital. Copart continues its strategic expansion, opening new facilities both domestically and internationally, positioning itself for sustained growth.

Financial Highlights

46 data points
Beta

Revenue

$810.13M

Net Income

$260.36M

32.1% Net Margin

EPS (Diluted)

$0.27

Total Assets

$4.92B

Cash & Equivalents

$1.30B

Free Cash Flow

$247.84M

Financial Statements
Beta
Revenue$810.13M
Operating Expenses$480.01M
Operating Income$330.12M
Net Income$260.36M
EPS (Basic)$0.28
EPS (Diluted)$0.27
Shares Outstanding (Basic)948.27M
Shares Outstanding (Diluted)964.88M

Key Highlights

  • 1Total service revenues and vehicle sales increased by a significant 29.6% and 83.5% respectively for the three months ended October 31, 2021, compared to the same period last year.
  • 2U.S. service revenues saw a substantial increase of 31.2%, while international service revenues grew by 18.3%.
  • 3Vehicle sales experienced a dramatic increase of 83.5% overall, with the U.S. market showing an 86.5% rise and international markets up 78.8%.
  • 4Yard operations expenses increased by 28.9% year-over-year, driven by higher volume and increased processing costs per car, partly due to recovery efforts from Hurricane Ida.
  • 5Cost of vehicle sales more than doubled, increasing by 96.4%, reflecting higher volumes and average purchase prices.
  • 6General and administrative expenses increased by 14.0%, primarily due to higher stock compensation and legal costs in the U.S.
  • 7Cash, cash equivalents, and restricted cash increased by 23.9% from July 31, 2021, to October 31, 2021, indicating strong cash generation and liquidity.
  • 8Copart expanded its operational footprint with the opening of several new domestic and international facilities during the reporting period.

Frequently Asked Questions

Copart's revenue growth was primarily driven by an increase in revenue per car and higher vehicle volume. This was largely attributed to the reopening of the U.S. economy and continued restrictions within the global automobile supply chain, which boosted demand for used and salvage vehicles.

While revenues saw substantial increases, operating expenses also rose. Yard operations and cost of vehicle sales increased significantly, reflecting higher volumes and increased costs per car due to factors like recovery efforts from Hurricane Ida and higher average purchase prices. General and administrative expenses also saw an increase, mainly due to stock compensation and legal costs.

Copart's liquidity remains strong. Cash, cash equivalents, and restricted cash increased by 23.9% from July 31, 2021, to October 31, 2021. Working capital also saw a significant increase of 20.8%. This indicates robust cash generation from operations and effective management of financial resources.

Yes, Copart continues to execute its expansion strategy. The company opened several new operational facilities in the U.S. and internationally during the period, demonstrating its commitment to increasing its market coverage and service offerings.