Copart reports first quarter fiscal 2023 financial results
Dallas--(business wire)--copart, inc. (nasdaq: cprt) today reported financial results for the quarter ended october 31, 2022. for the three months ended october 31, 2022, revenue, gross profit, and net income were $893.4 million, $369.5 million, and $245.8 million, respectively. these represent an increase in revenue of $83.2 million, or 10.3%; a decrease in gross profit of $15.5 million, or 4.0%; and a decrease in net income of $14.5 million, or 5.6%, respectively, from the same period last year. fully diluted earnings per share for the three months were $0.51 compared to $0.54 last year, a decrease of 5.6%. on september 28th, 2022, hurricane ian, a category 4 hurricane, came ashore in florida, with sustained winds of 150mph, the first such category 4 storm to impact southwest florida since hurricane charley in 2004. hurricane ian adversely impacted the operating results for the three months ended october 31, 2022 resulting in additional costs of approximately $25 million. these costs included premiums for subhaulers, labor costs incurred from overtime, and travel and lodging due to the reassignment of employees to the affected region. excluding the impact of certain income tax benefits related to stock-based compensation, non-gaap fully diluted earnings per share for the three months ended october 31, 2022 and 2021 were $0.51, and $0.53, respectively, which was a decrease of 3.8%. 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, november 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 february 2023 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 190 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 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 october 31, 2022 2021 % change service revenues and vehicle sales: service revenues $ 726,840 $ 667,818 8.8 % vehicle sales 166,532 142,314 17.0 % total service revenues and vehicle sales 893,372 810,132 10.3 % operating expenses: yard operations 336,972 271,276 24.2 % cost of vehicle sales 151,112 126,408 19.5 % yard depreciation and amortization 34,360 26,437 30.0 % yard stock-based compensation 1,445 981 47.3 % gross profit 369,483 385,030 (4.0 ) % general and administrative 44,535 41,115 8.3 % general and administrative depreciation and amortization 4,698 5,323 (11.7 ) % general and administrative stock-based compensation 8,747 8,471 3.3 % total operating expenses 581,869 480,011 21.2 % operating income 311,503 330,121 (5.6 ) % other expense: interest income (expense), net 4,422 (5,107 ) 186.6 % other (expense) income, net (2,822 ) 812 (447.5 ) % total other income (expense) 1,600 (4,295 ) 137.3 % income before income taxes 313,103 325,826 (3.9 ) % income tax expense 67,255 65,463 2.7 % net income $ 245,848 $ 260,363 (5.6 ) % basic net income per common share $ 0.52 $ 0.55 (5.5 ) % weighted average common shares outstanding 476,099 474,136 0.4 % diluted net income per common share $ 0.51 $ 0.54 (5.6 ) % diluted weighted average common shares outstanding 482,168 482,442 (0.1 ) % copart, inc. consolidated balance sheets (in thousands) (unaudited) october 31, 2022 july 31, 2022 assets current assets: cash, cash equivalents, and restricted cash $ 1,539,391 $ 1,384,236 accounts receivable, net 628,964 578,573 vehicle pooling costs 116,526 112,242 inventories 53,866 58,791 income taxes receivable 5,261 49,882 prepaid expenses and other assets 20,597 18,731 total current assets 2,364,605 2,202,455 property and equipment, net 2,582,481 2,485,764 operating lease right-of-use assets 112,530 116,303 intangibles, net 51,847 54,680 goodwill 394,844 401,954 other assets 87,370 47,708 total assets $ 5,593,677 $ 5,308,864 liabilities and stockholders’ equity current liabilities: accounts payable and accrued liabilities $ 446,974 $ 399,034 deferred revenue 19,319 20,061 income taxes payable 16,101 — current portion of operating and finance lease liabilities 22,083 21,794 total current liabilities 504,477 440,889 deferred income taxes 77,452 80,060 income taxes payable 65,275 64,637 operating and finance lease liabilities, net of current portion 91,670 95,683 long-term debt and other liabilities, net of discount 1,969 1,996 total liabilities 740,843 683,265 commitments and contingencies stockholders' equity: preferred stock — — common stock 48 48 additional paid-in capital 849,761 838,508 accumulated other comprehensive loss (198,936 ) (169,365 ) retained earnings 4,201,961 3,956,408 total stockholders' equity 4,852,834 4,625,599 total liabilities and stockholders' equity $ 5,593,677 $ 5,308,864 copart, inc. consolidated statements of cash flows (in thousands) (unaudited) three months ended october 31, 2022 2021 cash flows from operating activities: net income $ 245,848 $ 260,363 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization, including debt cost 39,327 32,049 allowance for credit loss 1,396 295 equity in losses of unconsolidated affiliates 2,122 168 stock-based compensation 10,192 9,452 gain on sale of property and equipment (113 ) (440 ) deferred income taxes (1,780 ) 8,319 changes in operating assets and liabilities: accounts receivable (53,837 ) (82,676 ) vehicle pooling costs (4,643 ) (21,697 ) inventories 4,020 (3,463 ) prepaid expenses, other current and non-current assets (35,303 ) 3,071 operating lease right-of-use assets and lease liabilities 52 382 accounts payable, accrued liabilities and other liabilities 40,372 62,013 deferred revenue (588 ) (979 ) income taxes receivable 44,595 19,479 income taxes payable 19,899 26,204 net cash provided by operating activities 311,559 312,540 cash flows from investing activities: purchases of property and equipment (152,655 ) (64,696 ) proceeds from sale of property and equipment 185 813 net cash used in investing activities (152,470 ) (63,883 ) cash flows from financing activities: proceeds from the exercise of stock options 1,061 5,572 payments for employee stock-based tax withholdings (295 ) (249 ) payments of finance lease obligations (7 ) (157 ) net cash provided by financing activities 759 5,166 effect of foreign currency translation (4,693 ) (3,710 ) net increase in cash, cash equivalents, and restricted cash 155,155 250,113 cash, cash equivalents, and restricted cash at beginning of period 1,384,236 1,048,260 cash, cash equivalents, and restricted cash at end of period $ 1,539,391 $ 1,298,373 supplemental disclosure of cash flow information: interest paid $ 64 $ 5,080 income taxes paid, net of refunds $ 5,700 $ 10,089 copart, inc. additional financial information reconciliation of gaap to non-gaap financial measures (in thousands, except per share amounts) (unaudited) three months ended october 31, 2022 2021 gaap net income $ 245,848 $ 260,363 effect of recognizing tax benefit on exercise of stock-based compensation (625 ) (2,987 ) non-gaap net income $ 245,223 $ 257,376 gaap net income per diluted common share $ 0.51 $ 0.54 non-gaap net income per diluted common share $ 0.51 $ 0.53
