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Copart Reports Fourth Quarter Fiscal 2021 Financial Results

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DALLAS, September 08, 2021--(BUSINESS WIRE)--Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2021.

For the three months ended July 31, 2021, revenue, gross profit, and net income were $748.6 million, $357.5 million, and $256.0 million, respectively. These represent an increase in revenue of $223.0 million, or 42.4%; an increase in gross profit of $107.1 million, or 42.7%; and an increase in net income of $90.4 million, or 54.6%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2021 were $1.06 compared to $0.69 last year, an increase of 53.6%.

For the year ended July 31, 2021, revenue, gross profit, and net income were $2.7 billion, $1.3 billion, and $936.5 million, respectively. These represent an increase in revenue of $486.9 million, or 22.1%; an increase in gross profit of $335.3 million, or 33.3%; and an increase in net income of $236.6 million, or 33.8%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2021 were $3.90 compared to $2.93 last year, an increase of 33.1%.

Excluding the impact of certain discrete income tax items, acquisition related integration charges, foreign currency-related gains and losses, and certain income tax benefits, non-GAAP fully diluted earnings per share for the three months ended July 31, 2021 and 2020, were $1.03 and $0.68, respectively, which was an increase of 51.5%. Excluding the impact of certain discrete income tax items, acquisition related integration charges, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to stock-based compensation, non-GAAP fully diluted earnings per share for the year ended July 31, 2021 and 2020, were $3.70 and $2.56, respectively, which was an increase of 44.5%. A reconciliation of non-GAAP financial measures to the most directly comparable financial measures computed in accordance with U.S. generally accepted accounting principles (GAAP) can be found in the tables attached to this press release.

On Thursday, September 9, 2021, at 11:00 a.m. Eastern Time, Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live and can be accessed at www.copart.com/investorrelations. A replay of the call will be available through December 2021 by visiting www.copart.com/investorrelations.

About Copart

Copart, Inc., founded in 1982, is a global leader in online vehicle auctions. Copart’s innovative technology and online auction platform links sellers to more than 750,000 Members in over 170 countries. Copart offers services to process and sell vehicles to dealers, dismantlers, rebuilders, exporters, and to the general public. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. With operations at over 200 locations in 11 countries, Copart has more than 250,000 vehicles available online every day. Copart currently operates in the United States (Copart.com), Canada (Copart.ca), the United Kingdom (Copart.co.uk), Brazil (Copart.com.br), the Republic of Ireland (Copart.ie), Germany (Copart.de), Finland (Copart.fi), the United Arab Emirates, Oman and Bahrain (Copartmea.com), and Spain (Copart.es). For more information, or to become a member, visit Copart.com/Register.

Use of Non-GAAP Financial Measures

Included in this release are certain non-GAAP financial measures, including non-GAAP net income per diluted share, which exclude the impact of certain discrete income tax items, acquisition related integration charges, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to stock-based compensation. These non-GAAP financial measures do not represent alternative financial measures under GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Furthermore, these non-GAAP financial measures do not reflect a comprehensive view of Copart’s operations in accordance with GAAP and should only be read in conjunction with the corresponding GAAP financial measures. This information constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission. Accordingly, Copart has presented herein, and will present in other information it publishes that contains these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Copart believes the presentation of non-GAAP net income per diluted share included in this release in conjunction with the corresponding GAAP financial measures provides meaningful information for investors, analysts and management in assessing Copart’s business trends and financial performance.

Cautionary Note About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning the potential impact of the COVID-19 pandemic on our business, operations, and operating results. These forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the "Management’s Discussion and Analysis" and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.

Copart, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
July 31,

Twelve Months Ended
July 31,

2021

2020

% Change

2021

2020

% Change

Service revenues and vehicle sales:

Service revenues

$

620,048

$

457,668

35.5

%

$

2,291,867

$

1,947,140

17.7

%

Vehicle sales

128,582

67,991

89.1

%

400,644

258,443

55.0

%

Total service revenues and vehicle sales

748,630

525,659

42.4

%

2,692,511

2,205,583

22.1

%

Operating expenses:

Yard operations

250,396

197,186

27.0

%

897,086

889,733

0.8

%

Cost of vehicle sales

113,641

54,643

108.0

%

346,128

225,294

53.6

%

Yard depreciation and amortization

26,567

21,615

22.9

%

100,917

76,999

31.1

%

Yard stock-based compensation

543

1,784

(69.6

)%

5,289

5,755

(8.1

)%

Gross profit

357,483

250,431

42.7

%

1,343,091

1,007,802

33.3

%

General and administrative

39,652

34,643

14.5

%

149,978

149,745

0.2

%

General and administrative depreciation and amortization

3,097

5,764

(46.3

)%

21,054

24,391

(13.7

)%

General and administrative stock-based compensation

13,234

4,309

207.1

%

35,633

17,567

102.8

%

Total operating expenses

447,130

319,944

39.8

%

1,556,085

1,389,484

12.0

%

Operating income

301,500

205,715

46.6

%

1,136,426

816,099

39.3

%

Other expense:

Interest expense, net

(5,020

)

(4,803

)

4.5

%

(20,247

)

(18,871

)

7.3

%

Other income, net

2,564

971

164.1

%

5,667

3,611

56.9

%

Total other expense

(2,456

)

(3,832

)

(35.9

)%

(14,580

)

(15,260

)

(4.5

)%

Income before income taxes

299,044

201,883

48.1

%

1,121,846

800,839

40.1

%

Income tax expense

43,070

36,350

18.5

%

185,351

100,932

83.6

%

Net income

$

255,974

$

165,533

54.6

%

$

936,495

$

699,907

33.8

%

Basic net income per common share

$

1.08

$

0.70

54.3

%

$

3.96

$

3.00

32.0

%

Weighted average common shares outstanding

236,679

234,863

0.8

%

236,252

233,202

1.3

%

Diluted net income per common share

$

1.06

$

0.69

53.6

%

$

3.90

$

2.93

33.1

%

Diluted weighted average common shares outstanding

240,714

238,927

0.7

%

240,290

238,656

0.7

%

Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

July 31, 2021

July 31, 2020

ASSETS

Current assets:

Cash, cash equivalents, and restricted cash

$

1,048,260

$

477,718

Accounts receivable, net

480,628

350,207

Vehicle pooling costs

94,449

73,684

Inventories

44,968

20,080

Income taxes receivable

20,012

26,740

Prepaid expenses and other assets

14,294

15,330

Total current assets

1,702,611

963,759

Property and equipment, net

2,296,624

1,941,719

Operating lease right-of-use assets

119,487

118,455

Intangibles, net

45,873

47,772

Goodwill

355,717

343,622

Other assets

41,831

39,934

Total assets

$

4,562,143

$

3,455,261

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

369,826

$

318,530

Deferred revenue

20,973

8,233

Income taxes payable

7,760

3,709

Current portion of operating and finance lease liabilities

22,472

25,572

Total current liabilities

421,031

356,044

Deferred income taxes

63,969

71,686

Income taxes payable

52,345

44,965

Operating and finance lease liabilities, net of current portion

97,961

96,150

Long-term debt and other liabilities, net of discount

397,636

396,900

Total liabilities

1,032,942

965,745

Commitments and contingencies

Stockholders’ equity:

Preferred stock

Common stock

24

24

Additional paid-in capital

761,834

672,727

Accumulated other comprehensive loss

(100,860)

(121,088)

Retained earnings

2,868,203

1,937,853

Total stockholders’ equity

3,529,201

2,489,516

Total liabilities and stockholders’ equity

$

4,562,143

$

3,455,261

Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Year Ended July 31,

2021

2020

Cash flows from operating activities:

Net income

$

936,495

$

699,907

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization, including debt cost

123,084

104,257

Allowance for credit loss

(1,121

)

1,670

Equity in (earnings) losses of unconsolidated affiliates

(3,240

)

1,401

Stock-based compensation

40,922

23,322

Gain on sale of property and equipment

(1,480

)

(1,913

)

Deferred income taxes

(7,951

)

23,082

Changes in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable

(127,513

)

15,993

Vehicle pooling costs

(20,476

)

2,590

Inventories

(24,602

)

1,348

Prepaid expenses and other current and non-current assets

7,025

141

Operating lease right-of-use assets and lease liabilities

570

(572

)

Accounts payable and accrued liabilities

44,613

41,648

Deferred revenue

8,781

1,615

Income taxes receivable

6,739

(7,216

)

Income taxes payable

9,045

10,114

Other liabilities

498

Net cash provided by operating activities

990,891

917,885

Cash flows from investing activities:

Purchases of property and equipment

(462,996

)

(591,972

)

Purchases of assets and liabilities in connection with acquisitions, net of cash acquired

(5,000

)

(11,702

)

Proceeds from sale of property and equipment

2,530

2,466

Net cash used in investing activities

(465,466

)

(601,208

)

Cash flows from financing activities:

Proceeds from the exercise of stock options

39,049

71,640

Proceeds from the issuance of Employee Stock Purchase Plan shares

9,136

8,276

Payments for employee stock-based tax withholdings

(6,145

)

(103,451

)

Debt offering costs

(2,814

)

Payments of finance lease obligations

(1,118

)

(1,065

)

Net cash provided by (used in) financing activities

40,922

(27,414

)

Effect of foreign currency translation

4,195

2,136

Net increase in cash, cash equivalents, and restricted cash

570,542

291,399

Cash, cash equivalents, and restricted cash at beginning of period

477,718

186,319

Cash, cash equivalents, and restricted cash at end of period

$

1,048,260

$

477,718

Supplemental disclosure of cash flow information:

Interest paid

$

19,723

$

19,728

Income taxes paid, net of refunds

$

178,241

$

83,770

Copart, Inc.
Additional Financial Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
July 31,

Twelve Months Ended
July 31,

2021

2020

2021

2020

GAAP net income

$

255,974

$

165,533

$

936,495

$

699,907

Effect of certain discrete income tax items

4,740

(19,764

)

1,732

Effect of acquisition related integration charges, net of tax

2,713

2,713

Effect of foreign currency-related losses (gains), net of tax

(422

)

(268

)

73

(1,436

)

Effect of recognizing tax benefit on exercise of stock-based compensation

(10,962

)

(6,586

)

(29,812

)

(92,548

)

Effect of payroll taxes on certain executive stock-based compensation, net of tax

2,867

Non-GAAP net income

$

247,303

$

163,419

$

889,705

$

610,522

GAAP net income per diluted common share

$

1.06

$

0.69

$

3.90

$

2.93

Non-GAAP net income per diluted common share

$

1.03

$

0.68

$

3.70

$

2.56

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908006091/en/

Contacts

Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer
972-391-5090 or melissa.hunter@copart.com