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Copart Inc (CPRT) SEC Filing 8-K Material Event for the period ending Wednesday, May 18, 2022

Copart Inc

CIK: 900075 Ticker: CPRT

Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports Third Quarter Fiscal 2022 Financial Results
Dallas, Texas May 18, 2022 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended April 30, 2022.
For the three months ended April 30, 2022, revenue, gross profit, and net income were $939.9 million, $436.3 million, and $278.6 million, respectively. These represent an increase in revenue of $206.0 million, or 28.1%; an increase in gross profit of $54.9 million, or 14.4%; and a decrease in net income of $(8.2) million, or (2.9)%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $1.16 compared to $1.19 last year, a decrease of (2.5)%.
For the nine months ended April 30, 2022, revenue, gross profit, and net income were $2,617.5 million, $1,224.6 million, and $826.4 million, respectively. These represent an increase in revenue of $673.7 million, or 34.7%; an increase in gross profit of $239.0 million, or 24.3%; and an increase in net income of $145.9 million, or 21.4%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $3.42 compared to $2.83 last year, an increase of 20.8%.
Excluding the impact of certain income tax benefits related to stock-based compensation and certain legal matters, non-GAAP fully diluted earnings per share for the three months ended April 30, 2022 and 2021 were $1.17, and $1.09, respectively, which was an increase of 7.3%. Excluding the impact of certain income tax benefits related to stock-based compensation, certain legal matters and discrete income tax items, non-GAAP fully diluted earnings per share for the nine months ended April 30, 2022 and 2021, were $3.34, and $2.68, respectively, which was an increase of 24.6%. 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 19, 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 August 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.
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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 income tax benefits related to stock-based compensation, certain legal matters and discrete income tax items. 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.
Contact:Brooke Boston, Executive Assistant, Office of the Chief Financial Officer
brooke.boston@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,
20222021% Change20222021% Change
Service revenues and vehicle sales:
Service revenues$766,316 $623,846 22.8 %$2,145,224 $1,671,819 28.3 %
Vehicle sales173,625 110,064 57.7 %472,309 272,062 73.6 %
Total service revenues and vehicle sales
939,941 733,910 28.1 %2,617,533 1,943,881 34.7 %
Operating expenses:   
Yard operations313,365 230,794 35.8 %878,740 646,690 35.9 %
Cost of vehicle sales157,236 94,498 66.4 %423,948 232,487 82.4 %
Yard depreciation and amortization31,646 25,876 22.3 %86,383 74,350 16.2 %
Yard stock-based compensation1,417 1,401 1.1 %3,813 4,746 (19.7)%
Gross profit
436,277 381,341 14.4 %1,224,649 985,608 24.3 %
General and administrative50,188 39,174 28.1 %134,057 110,326 21.5 %
General and administrative depreciation and amortization4,933 6,090 (19.0)%15,269 17,957 (15.0)%
General and administrative stock-based compensation8,401 7,966 5.5 %25,119 22,399 12.1 %
Total operating expenses
567,186 405,799 39.8 %1,567,329 1,108,955 41.3 %
Operating income
372,755 328,111 13.6 %1,050,204 834,926 25.8 %
Other expense:   
Interest expense, net(4,492)(5,346)(16.0)%(14,032)(15,227)(7.8)%
Other income, net1,342 770 74.3 %1,314 3,103 (57.7)%
Total other expense(3,150)(4,576)(31.2)%(12,718)(12,124)4.9 %
Income before income taxes369,605 323,535 14.2 %1,037,486 822,802 26.1 %
Income tax expense90,985 36,739 147.7 %211,091 142,281 48.4 %
Net income$278,620 $286,796 (2.9)%$826,395 $680,521 21.4 %
Basic net income per common share$1.17 $1.21 (3.3)%$3.48 $2.88 20.8 %
Weighted average common shares outstanding237,505 236,396 0.5 %237,277 236,110 0.5 %
Diluted net income per common share$1.16 $1.19 (2.5)%$3.42 $2.83 20.8 %
Diluted weighted average common shares outstanding240,724 240,208 0.2 %241,288 240,149 0.5 %

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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, 2022July 31, 2021
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash$1,454,818 $1,048,260 
Investment in held to maturity securities 224,889 — 
Accounts receivable, net585,914 480,628 
Vehicle pooling costs114,028 94,449 
Inventories56,988 44,968 
Income taxes receivable1,581 20,012 
Prepaid expenses and other assets19,208 14,294 
Total current assets2,457,426 1,702,611 
Property and equipment, net2,402,809 2,296,624 
Operating lease right-of-use assets121,006 119,487 
Intangibles, net40,854 45,873 
Goodwill348,000 355,717 
Other assets73,779 41,831 
Total assets$5,443,874 $4,562,143 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$398,414 $369,826 
Deferred revenue21,087 20,973 
Income taxes payable6,907 7,760 
Current portion of operating and finance lease liabilities22,687 22,472 
Total current liabilities449,095 421,031 
Deferred income taxes78,023 63,969 
Income taxes payable61,359 52,345 
Operating and finance lease liabilities, net of current portion99,610 97,961 
Long-term debt and other liabilities, net of discount402,733 397,636 
Total liabilities1,090,820 1,032,942 
Commitments and contingencies
Stockholders' equity:
Preferred stock— — 
Common stock24 24 
Additional paid-in capital811,900 761,834 
Accumulated other comprehensive loss(152,596)(100,860)
Retained earnings3,693,726 2,868,203 
Total stockholders' equity4,353,054 3,529,201 
Total liabilities and stockholders' equity$5,443,874 $4,562,143 


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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,
20222021
Cash flows from operating activities:
Net income$826,395 $680,521 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost102,333 93,141 
Allowance for credit loss1,456 (1,429)
Equity in losses (earnings) of unconsolidated affiliates794 (2,121)
Stock-based compensation28,932 27,145 
Gain on sale of property and equipment(1,280)(1,257)
Deferred income taxes14,582 (14,130)
Changes in operating assets and liabilities:
Accounts receivable(109,636)(81,593)
Vehicle pooling costs(20,029)(12,777)
Inventories(13,367)(18,788)
Prepaid expenses, other current and non-current assets(37,842)6,879 
Operating lease right-of-use assets and lease liabilities436 389 
Accounts payable, accrued liabilities and other liabilities45,745 47,914 
Deferred revenue388 8,467 
Income taxes receivable18,416 16,152 
Income taxes payable6,531 13,692 
Net cash provided by operating activities863,854 762,205 
Cash flows from investing activities:
Purchases of property and equipment(234,810)(364,395)
Purchase of assets in connection with acquisitions(493)— 
Proceeds from sale of property and equipment2,622 599 
Purchase of held to maturity securities(374,866)— 
Proceeds from the sale of held to maturity securities149,977 — 
Net cash used in investing activities(457,570)(363,796)
Cash flows from financing activities:
Proceeds from the exercise of stock options16,108 28,829 
Proceeds from the issuance of Employee Stock Purchase Plan shares5,026 4,880 
Payments for employee stock-based tax withholdings(872)(938)
Debt offering costs(1,212)— 
Payments of finance lease obligations(472)(962)
Net cash provided by financing activities18,578 31,809 
Effect of foreign currency translation(18,304)3,954 
Net increase in cash, cash equivalents, and restricted cash406,558 434,172 
Cash, cash equivalents, and restricted cash at beginning of period1,048,260 477,718 
Cash, cash equivalents, and restricted cash at end of period$1,454,818 $911,890 
Supplemental disclosure of cash flow information:
Interest paid$14,485 $14,736 
Income taxes paid, net of refunds$195,521 $126,303 



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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,
2022202120222021
GAAP net income$278,620 $286,796 $826,395 $680,521 
Effect of certain discrete income tax items— (19,764)(17,490)(19,764)
Effect of certain legal matters, net of tax5,092 — 5,092 — 
Effect of recognizing tax benefit on exercise of stock-based compensation(2,244)(4,910)(9,197)(18,850)
Non-GAAP net income$281,468 $262,122 $804,800 $641,907 
GAAP net income per diluted common share$1.16 $1.19 $3.42 $2.83 
Non-GAAP net income per diluted common share$1.17 $1.09 $3.34 $2.68 


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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: 0000900075-22-000026
Submitted to the SEC: Wed May 18 2022 6:18:47 PM EST
Accepted by the SEC: Thu May 19 2022
Period: Wednesday, May 18, 2022
Industry: Retail Auto Dealers And Gasoline Stations
Events:
  1. Earnings Release
  2. Financial Exhibit

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