Copart reports fourth quarter fiscal 2021 financial results
Dallas--(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 ) (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
