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Copart Inc (CPRT) SEC Filing 8-K Material Event for the period ending Wednesday, May 19, 2021

Copart Inc

CIK: 900075 Ticker: CPRT

Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports Third Quarter Fiscal 2021 Financial Results
Dallas, Texas. (May 19, 2021) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2021.
For the three months ended April 30, 2021, revenue, gross profit, and net income were $733.9 million, $381.3 million, and $286.8 million, respectively. These represent an increase in revenue of $183.6 million, or 33.4%; an increase in gross profit of $138.7 million, or 57.2%; and an increase in net income of $139.3 million, or 94.5%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $1.19 compared to $0.62 last year, an increase of 91.9%.
For the nine months ended April 30, 2021, revenue, gross profit, and net income were $1.9 billion, $985.6 million, and $680.5 million, respectively. These represent an increase in revenue of $264.0 million, or 15.7%; an increase in gross profit of $228.2 million, or 30.1%; and an increase in net income of $146.1 million, or 27.3%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $2.83 compared to $2.24 last year, an increase of 26.3%.
Excluding the impact of certain discrete income tax items, 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 three months ended April 30, 2021 and 2020, were $1.09, and $0.58, respectively, which was an increase of 87.9%. Excluding the impact of certain discrete income tax items, 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 nine months ended April 30, 2021 and 2020, were $2.67, and $1.87, respectively, which was an increase of 42.8%. 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, May 20, 2021, 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 August 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 salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters, and in some jurisdictions, to the general public. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers and individuals. With operations at over 200 locations in 11 countries, Copart has more than 175,000 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.
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000


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 certain discrete income tax items, 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. From a financial planning and analysis perspective, Copart management analyzes its operating results with and without the impact of certain discrete income tax items, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to stock-based compensation.
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.
Contact:Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer
972-391-5090 or melissa.hunter@copart.com


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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000


Copart, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended 
April 30,
Nine Months Ended 
April 30,
2021202020212020
Service revenues and vehicle sales:
Service revenues$623,846 $491,582 $1,671,819 $1,489,472 
Vehicle sales110,064 58,778 272,062 190,452 
Total service revenues and vehicle sales
733,910 550,360 1,943,881 1,679,924 
Operating expenses:   
Yard operations230,794 231,985 646,690 692,547 
Cost of vehicle sales94,498 53,987 232,487 170,651 
Yard depreciation and amortization25,876 20,333 74,350 55,384 
Yard stock-based compensation1,401 1,442 4,746 3,971 
Gross profit
381,341 242,613 985,608 757,371 
General and administrative39,174 37,017 110,326 115,102 
General and administrative depreciation and amortization6,090 6,382 17,957 18,627 
General and administrative stock-based compensation7,966 4,113 22,399 13,258 
Total operating expenses
405,799 355,259 1,108,955 1,069,540 
Operating income
328,111 195,101 834,926 610,384 
Other expense:   
Interest expense, net(5,346)(5,578)(15,227)(14,068)
Other income, net770 2,277 3,103 2,640 
Total other expense(4,576)(3,301)(12,124)(11,428)
Income before income taxes323,535 191,800 822,802 598,956 
Income tax expense36,739 44,313 142,281 64,582 
Net income$286,796 $147,487 $680,521 $534,374 
Basic net income per common share$1.21 $0.63 $2.88 $2.30 
Weighted average common shares outstanding236,396 234,133 236,110 232,647 
Diluted net income per common share$1.19 $0.62 $2.83 $2.24 
Diluted weighted average common shares outstanding240,208 238,591 240,149 238,564 

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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000


Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
April 30, 2021July 31, 2020
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash$911,890 $477,718 
Accounts receivable, net434,873 350,207 
Vehicle pooling costs86,685 73,684 
Inventories39,229 20,080 
Income taxes receivable10,588 26,740 
Prepaid expenses and other assets16,106 15,330 
Total current assets1,499,371 963,759 
Property and equipment, net2,227,531 1,941,719 
Operating lease right-of-use assets125,709 118,455 
Intangibles, net42,535 47,772 
Goodwill347,515 343,622 
Other assets39,285 39,934 
Total assets$4,281,946 $3,455,261 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$359,239 $318,530 
Deferred revenue20,660 8,233 
Income taxes payable9,140 3,709 
Current portion of operating and finance lease liabilities24,006 25,572 
Total current liabilities413,045 356,044 
Deferred income taxes57,767 71,686 
Income taxes payable55,637 44,965 
Operating and finance lease liabilities, net of current portion108,487 96,150 
Long-term debt and other liabilities, net of discount397,633 396,900 
Total liabilities1,032,569 965,745 
Commitments and contingencies
Stockholders' equity:
Preferred stock— — 
Common stock24 24 
Additional paid-in capital733,581 672,727 
Accumulated other comprehensive loss(101,664)(121,088)
Retained earnings2,617,436 1,937,853 
Total stockholders' equity3,249,377 2,489,516 
Total liabilities and stockholders' equity$4,281,946 $3,455,261 


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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000


Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended April 30,
20212020
Cash flows from operating activities:
Net income$680,521 $534,374 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost93,141 76,756 
Allowance for credit loss(1,429)1,332 
Equity in (earnings) losses of unconsolidated affiliates(2,121)1,918 
Stock-based compensation27,145 17,229 
Gain on sale of property and equipment(1,257)(1,745)
Deferred income taxes(14,130)9,265 
Changes in operating assets and liabilities:
Accounts receivable(81,593)19,102 
Vehicle pooling costs(12,777)661 
Inventories(18,788)1,209 
Prepaid expenses and other current and non-current assets6,879 6,268 
Operating lease right-of-use assets and lease liabilities389 (221)
Accounts payable and accrued liabilities47,914 (15,636)
Deferred revenue8,467 1,365 
Income taxes receivable16,152 (12,076)
Income taxes payable13,692 9,168 
Other liabilities— 1,999 
Net cash provided by operating activities762,205 650,968 
Cash flows from investing activities:
Purchases of property and equipment, including acquisitions(364,395)(490,998)
Proceeds from sale of property and equipment599 2,153 
Net cash used in investing activities(363,796)(488,845)
Cash flows from financing activities:
Proceeds from the exercise of stock options28,829 55,656 
Proceeds from the issuance of Employee Stock Purchase Plan shares4,880 3,955 
Payments for employee stock-based tax withholdings(938)(102,191)
Payments of finance lease obligations(962)— 
Net cash provided by (used in) financing activities31,809 (42,580)
Effect of foreign currency translation3,954 525 
Net increase in cash, cash equivalents, and restricted cash434,172 120,068 
Cash, cash equivalents, and restricted cash at beginning of period477,718 186,319 
Cash, cash equivalents, and restricted cash at end of period$911,890 $306,387 
Supplemental disclosure of cash flow information:
Interest paid$14,736 $14,514 
Income taxes paid, net of refunds$126,303 $59,302 



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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000


Copart, Inc.
Additional Financial Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended 
April 30,
Nine Months Ended 
April 30,
2021202020212020
GAAP net income$286,796 $147,487 $680,521 $534,374 
Effect of certain discrete income tax items(19,764)— (19,764)(3,008)
Effect of foreign currency-related losses (gains), net of tax303 (490)351 (1,169)
Effect of recognizing tax benefit on exercise of stock-based compensation(4,910)(8,768)(18,850)(85,965)
Effect of payroll taxes on certain executive stock-based compensation, net of tax— — — 2,867 
Non-GAAP net income$262,425 $138,229 $642,258 $447,099 
GAAP net income per diluted common share$1.19 $0.62 $2.83 $2.24 
Non-GAAP net income per diluted common share$1.09 $0.58 $2.67 $1.87 


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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000

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Ticker: CPRT
CIK: 900075
Form Type: 8-K Corporate News
Accession Number: 0000900075-21-000011
Submitted to the SEC: Wed May 19 2021 4:39:48 PM EST
Accepted by the SEC: Wed May 19 2021
Period: Wednesday, May 19, 2021
Industry: Retail Auto Dealers And Gasoline Stations
Events:
  1. Earnings Release
  2. Financial Exhibit

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