Copart reports fourth quarter fiscal 2022 financial results
Dallas--(business wire)--copart, inc. (nasdaq: cprt) today reported financial results for the quarter and year ended july 31, 2022. for the three months ended july 31, 2022, revenue, gross profit, and net income were $883.4 million, $381.6 million, and $263.7 million, respectively. these represent an increase in revenue of $134.8 million, or 18.0%; an increase in gross profit of $24.1 million, or 6.7%; and an increase in net income of $7.8 million, or 3.0%, respectively, from the same period last year. fully diluted earnings per share for the three months ended july 31, 2022 were $1.10 compared to $1.06 last year, an increase of 3.8%. for the year ended july 31, 2022, revenue, gross profit, and net income were $3.5 billion, $1.6 billion, and $1.1 billion, respectively. these represent an increase in revenue of $808.4 million, or 30.0%; an increase in gross profit of $263.1 million, or 19.6%; and an increase in net income of $153.6 million, or 16.4%, respectively, from the same period last year. fully diluted earnings per share for the year ended july 31, 2022 were $4.52 compared to $3.90 last year, an increase of 15.9%. excluding the impact of acquisition related integration charges, extinguishment of debt, and certain income tax benefits related to stock-based compensation, non-gaap fully diluted earnings per share for the three months ended july 31, 2022 and 2021, were $1.13 and $1.03, respectively, which was an increase of 9.7%. excluding the impact of certain discrete income tax items, acquisition related integration charges, extinguishment of debt, certain legal matters, and certain income tax benefits related to stock-based compensation, non-gaap fully diluted earnings per share for the year ended july 31, 2022 and 2021, were $4.46 and $3.70, respectively, which was an increase of 20.5%. 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 8, 2022, 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 november 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. 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, extinguishment of debt, certain legal matters, 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 july 31, twelve months ended july 31, 2022 2021 % change 2022 2021 % change service revenues and vehicle sales: service revenues $ 707,816 $ 620,048 14.2 % $ 2,853,040 $ 2,291,867 24.5 % vehicle sales 175,572 128,582 36.5 % 647,881 400,644 61.7 % total service revenues and vehicle sales 883,388 748,630 18.0 % 3,500,921 2,692,511 30.0 % operating expenses: yard operations 307,717 250,396 22.9 % 1,186,457 897,086 32.3 % cost of vehicle sales 161,255 113,641 41.9 % 585,203 346,128 69.1 % yard depreciation and amortization 31,530 26,567 18.7 % 117,913 100,917 16.8 % yard stock-based compensation 1,314 543 142.0 % 5,127 5,289 (3.1 ) % gross profit 381,572 357,483 6.7 % 1,606,221 1,343,091 19.6 % general and administrative 43,257 39,652 9.1 % 177,314 149,978 18.2 % general and administrative depreciation and amortization 4,803 3,097 55.1 % 20,072 21,054 (4.7 ) % general and administrative stock-based compensation 8,719 13,234 (34.1 ) % 33,838 35,633 (5.0 ) % total operating expenses 558,595 447,130 24.9 % 2,125,924 1,556,085 36.6 % operating income 324,793 301,500 7.7 % 1,374,997 1,136,426 21.0 % other expense: interest expense, net (2,656 ) (5,020 ) (47.1 ) % (16,688 ) (20,247 ) (17.6 ) % loss on extinguishment of debt (16,759 ) — 100.0 % (16,759 ) — 100.0 % other income, net (1,910 ) 2,564 (174.5 ) % (596 ) 5,667 (110.5 ) % total other expense (21,325 ) (2,456 ) 768.3 % (34,043 ) (14,580 ) 133.5 % income before income taxes 303,468 299,044 1.5 % 1,340,954 1,121,846 19.5 % income tax expense 39,733 43,070 (7.7 ) % 250,824 185,351 35.3 % net income $ 263,735 $ 255,974 3.0 % $ 1,090,130 $ 936,495 16.4 % basic net income per common share $ 1.11 $ 1.08 2.8 % $ 4.59 $ 3.96 15.9 % weighted average common shares outstanding 237,841 236,679 0.5 % 237,419 236,252 0.5 % diluted net income per common share $ 1.10 $ 1.06 3.8 % $ 4.52 $ 3.90 15.9 % diluted weighted average common shares outstanding 240,736 240,714 — % 241,151 240,290 0.4 % copart, inc. consolidated balance sheets (in thousands) (unaudited) july 31, 2022 july 31, 2021 assets current assets: cash, cash equivalents, and restricted cash $ 1,384,236 $ 1,048,260 accounts receivable, net 578,573 480,628 vehicle pooling costs 112,242 94,449 inventories 58,791 44,968 income taxes receivable 49,882 20,012 prepaid expenses and other assets 18,731 14,294 total current assets 2,202,455 1,702,611 property and equipment, net 2,485,764 2,296,624 operating lease right-of-use assets 116,303 119,487 intangibles, net 54,680 45,873 goodwill 401,954 355,717 other assets 47,708 41,831 total assets $ 5,308,864 $ 4,562,143 liabilities and stockholders’ equity current liabilities: accounts payable and accrued liabilities $ 399,034 $ 369,826 deferred revenue 20,061 20,973 income taxes payable — 7,760 current portion of operating and finance lease liabilities 21,794 22,472 total current liabilities 440,889 421,031 deferred income taxes 80,060 63,969 income taxes payable 64,637 52,345 operating and finance lease liabilities, net of current portion 95,683 97,961 long-term debt and other liabilities, net of discount 1,996 397,636 total liabilities 683,265 1,032,942 commitments and contingencies stockholders’ equity: preferred stock — — common stock 24 24 additional paid-in capital 838,532 761,834 accumulated other comprehensive loss (169,365 ) (100,860 ) retained earnings 3,956,408 2,868,203 total stockholders’ equity 4,625,599 3,529,201 total liabilities and stockholders’ equity $ 5,308,864 $ 4,562,143 copart, inc. consolidated statements of cash flows (in thousands) (unaudited) year ended july 31, 2022 2021 cash flows from operating activities: net income $ 1,090,130 $ 936,495 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization, including debt cost 138,605 123,084 allowance for credit loss 1,349 (1,121 ) equity in (earnings) losses of unconsolidated affiliates 284 (3,240 ) stock-based compensation 38,965 40,922 gain on sale of property and equipment (939 ) (1,480 ) loss on extinguishment of debt 16,759 — deferred income taxes 17,017 (7,951 ) changes in operating assets and liabilities, net of effects from acquisitions: accounts receivable (97,750 ) (127,513 ) vehicle pooling costs (18,342 ) (20,476 ) inventories (10,851 ) (24,602 ) prepaid expenses and other current and non-current assets (5,156 ) 7,025 operating lease right-of-use assets and lease liabilities 715 570 accounts payable and accrued liabilities 36,306 44,613 deferred revenue (574 ) 8,781 income taxes receivable (29,884 ) 6,739 income taxes payable 49 9,045 net cash provided by operating activities 1,176,683 990,891 cash flows from investing activities: purchases of property and equipment (337,448 ) (462,996 ) purchases of assets and liabilities in connection with acquisitions, net of cash acquired (106,604 ) (5,000 ) proceeds from sale of property and equipment 4,333 2,530 purchase of held to maturity securities (374,866 ) — proceeds from the sale of held to maturity securities 374,866 — investment in unconsolidated affiliate (2,591 ) — net cash used in investing activities (442,310 ) (465,466 ) cash flows from financing activities: proceeds from the exercise of stock options 28,108 39,049 proceeds from the issuance of employee stock purchase plan shares 9,625 9,136 payments for employee stock-based tax withholdings (1,925 ) (6,145 ) debt offering costs (1,212 ) — principal payments on long-term debt (416,759 ) — payments of finance lease obligations (530 ) (1,118 ) net cash (used in) provided by financing activities (382,693 ) 40,922 effect of foreign currency translation (15,704 ) 4,195 net increase in cash, cash equivalents, and restricted cash 335,976 570,542 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 $ 1,384,236 $ 1,048,260 supplemental disclosure of cash flow information: interest paid $ 18,539 $ 19,723 income taxes paid, net of refunds $ 263,226 $ 178,241 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, 2022 2021 2022 2021 gaap net income $ 263,735 $ 255,974 $ 1,090,130 $ 936,495 effect of certain discrete income tax items — — (17,490 ) (19,764 ) effect of certain legal matters, net of tax — — 5,092 — effect of extinguishment of debt, net of tax 12,929 — 12,929 — effect of acquisition related integration charges, net of tax — 2,713 — 2,713 effect of recognizing tax benefit on exercise of stock-based compensation (5,077 ) (10,962 ) (14,274 ) (29,812 ) non-gaap net income $ 271,587 $ 247,725 $ 1,076,387 $ 889,632 gaap net income per diluted common share $ 1.10 $ 1.06 $ 4.52 $ 3.90 non-gaap net income per diluted common share $ 1.13 $ 1.03 $ 4.46 $ 3.70
