Copart reports second quarter fiscal 2022 financial results
Dallas--(business wire)--copart, inc. (nasdaq: cprt) today reported financial results for the quarter ended january 31, 2022. for the three months ended january 31, 2022, revenue, gross profit, and net income were $867.5 million, $403.3 million, and $287.4 million, respectively. these represent an increase in revenue of $250.4 million, or 40.6%; an increase in gross profit of $95.8 million, or 31.2%; and an increase in net income of $94.0 million, or 48.6%, respectively, from the same period last year. fully diluted earnings per share for the three months were $1.19 compared to $0.81 last year, an increase of 46.9%. for the six months ended january 31, 2022, revenue, gross profit, and net income were $1,677.6 million, $788.4 million, and $547.8 million, respectively. these represent an increase in revenue of $467.6 million, or 38.6%; an increase in gross profit of $184.1 million, or 30.5%; and an increase in net income of $154.1 million, or 39.1%, respectively, from the same period last year. fully diluted earnings per share for the six months were $2.27 compared to $1.64 last year, an increase of 38.4%. excluding the impact of discrete income tax items, and certain income tax benefits related to stock-based compensation, non-gaap fully diluted earnings per share for the three months ended january 31, 2022 and 2021 were $1.10, and $0.80, respectively, which was an increase of 37.5%. excluding the impact of discrete income tax items, and certain income tax benefits related to stock-based compensation, , non-gaap fully diluted earnings per share for the six months ended january 31, 2022 and 2021, were $2.17, and $1.59, respectively, which was an increase of 36.5%. 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, february 17, 2022, at 11 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 via hyperlink at www.copart.com/investorrelations. a replay of the call will be available through may 2022 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. copart, inc. 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 discrete income tax items, and certain income tax benefits 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 january 31, six months ended january 31, 2022 2021 % change 2022 2021 % change service revenues and vehicle sales: service revenues $ 711,090 $ 532,601 33.5 % $ 1,378,908 $ 1,047,973 31.6 % vehicle sales 156,370 84,430 85.2 % 298,684 161,998 84.4 % total service revenues and vehicle sales 867,460 617,031 40.6 % 1,677,592 1,209,971 38.6 % operating expenses: yard operations 294,098 208,910 40.8 % 565,374 415,896 35.9 % cost of vehicle sales 140,304 73,629 90.6 % 266,712 137,989 93.3 % yard depreciation and amortization 28,301 25,180 12.4 % 54,738 48,474 12.9 % yard stock-based compensation 1,415 1,814 (22.0 ) % 2,396 3,345 (28.4 ) % gross profit 403,342 307,498 31.2 % 788,372 604,267 30.5 % general and administrative 42,754 36,014 18.7 % 83,869 71,152 17.9 % general and administrative depreciation and amortization 5,013 6,212 (19.3 ) % 10,336 11,867 (12.9 ) % general and administrative stock-based compensation 8,247 7,051 17.0 % 16,718 14,433 15.8 % total operating expenses 520,132 358,810 45.0 % 1,000,143 703,156 42.2 % operating income 347,328 258,221 34.5 % 677,449 506,815 33.7 % other expense: interest expense, net (4,433 ) (4,849 ) (8.6 ) % (9,540 ) (9,881 ) (3.5 ) % other income, net (840 ) (920 ) (8.7 ) % (28 ) 2,333 (101.2 ) % total other expense (5,273 ) (5,769 ) (8.6 ) % (9,568 ) (7,548 ) 26.8 % income before income taxes 342,055 252,452 35.5 % 667,881 499,267 33.8 % income tax expense 54,643 59,012 (7.4 ) % 120,106 105,542 13.8 % net income $ 287,412 $ 193,440 48.6 % $ 547,775 $ 393,725 39.1 % basic net income per common share $ 1.21 $ 0.82 47.6 % $ 2.31 $ 1.67 38.3 % weighted average common shares outstanding 237,186 236,152 0.4 % 237,167 235,971 0.5 % diluted net income per common share $ 1.19 $ 0.81 46.9 % $ 2.27 $ 1.64 38.4 % diluted weighted average common shares outstanding 241,187 240,280 0.4 % 241,244 240,124 0.5 % copart, inc. consolidated balance sheets (in thousands) (unaudited) january 31, 2022 july 31, 2021 assets current assets: cash, cash equivalents, and restricted cash $ 1,346,517 $ 1,048,260 accounts receivable, net 630,629 480,628 vehicle pooling costs 123,896 94,449 inventories 52,979 44,968 income taxes receivable 15,426 20,012 prepaid expenses and other assets 19,926 14,294 total current assets 2,189,373 1,702,611 property and equipment, net 2,376,013 2,296,624 operating lease right-of-use assets 120,309 119,487 intangibles, net 42,731 45,873 goodwill 352,908 355,717 other assets 55,622 41,831 total assets $ 5,136,956 $ 4,562,143 liabilities and stockholders’ equity current liabilities: accounts payable and accrued liabilities $ 367,699 $ 369,826 deferred revenue 20,577 20,973 income taxes payable 6,458 7,760 current portion of operating and finance lease liabilities 23,126 22,472 total current liabilities 417,860 421,031 deferred income taxes 69,759 63,969 income taxes payable 57,193 52,345 operating and finance lease liabilities, net of current portion 98,459 97,961 long-term debt and other liabilities, net of discount 403,829 397,636 total liabilities 1,047,100 1,032,942 commitments and contingencies stockholders' equity: preferred stock — — common stock 24 24 additional paid-in capital 797,955 761,834 accumulated other comprehensive loss (123,502 ) (100,860 ) retained earnings 3,415,379 2,868,203 total stockholders' equity 4,089,856 3,529,201 total liabilities and stockholders' equity $ 5,136,956 $ 4,562,143 copart, inc. consolidated statements of cash flows (in thousands) (unaudited) six months ended january 31, 2022 2021 cash flows from operating activities: net income $ 547,775 $ 393,725 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization, including debt cost 65,627 60,898 allowance for credit loss 1,695 213 equity in losses (earnings) of unconsolidated affiliates 685 (1,343 ) stock-based compensation 19,114 17,778 gain on sale of property and equipment (755 ) (1,145 ) deferred income taxes 6,003 9,442 changes in operating assets and liabilities: accounts receivable (152,763 ) (111,148 ) vehicle pooling costs (29,623 ) (19,099 ) inventories (8,589 ) (9,772 ) prepaid expenses and other current and non-current assets (19,889 ) 5,802 operating lease right-of-use assets and lease liabilities 657 470 accounts payable and accrued liabilities 10,741 10,041 deferred revenue (309 ) 6,098 income taxes receivable 4,577 20,243 income taxes payable 1,655 10,838 other liabilities (53 ) — net cash provided by operating activities 446,548 393,041 cash flows from investing activities: purchases of property and equipment (156,200 ) (283,214 ) purchase of assets in connection with acquisitions (469 ) — proceeds from sale of property and equipment 1,252 129 net cash used in investing activities (155,417 ) (283,085 ) cash flows from financing activities: proceeds from the exercise of stock options 11,986 23,112 proceeds from the issuance of employee stock purchase plan shares 5,022 4,880 payments for employee stock-based tax withholdings (599 ) (787 ) payments of finance lease obligations (314 ) (622 ) net cash provided by financing activities 16,095 26,583 effect of foreign currency translation (8,969 ) 2,146 net increase in cash, cash equivalents, and restricted cash 298,257 138,685 cash, cash equivalents, and restricted cash at beginning of period 1,048,260 477,718 cash, cash equivalents, and restricted cash at end of period $ 1,346,517 $ 616,403 supplemental disclosure of cash flow information: interest paid $ 9,311 $ 7,614 income taxes paid, net of refunds $ 128,972 $ 64,860 copart, inc. additional financial information reconciliation of gaap to non-gaap financial measures (in thousands, except per share amounts) (unaudited) three months ended january 31, six months ended january 31, 2022 2021 2022 2021 gaap net income $ 287,412 $ 193,440 $ 547,775 $ 393,725 effect of certain discrete income tax items (17,490 ) — (17,490 ) — effect of recognizing tax benefit on exercise of stock-based compensation (3,965 ) (2,167 ) (6,952 ) (13,939 ) non-gaap net income $ 265,957 $ 191,273 $ 523,333 $ 379,786 gaap net income per diluted common share $ 1.19 $ 0.81 $ 2.27 $ 1.64 non-gaap net income per diluted common share $ 1.10 $ 0.80 $ 2.17 $ 1.59
