Core Insights - Copart, Inc. reported adjusted earnings per share of 37 cents for the first quarter of fiscal 2025, matching the Zacks Consensus Estimate, with an 8.8% year-over-year increase [1] - The company generated revenues of $1.15 billion, exceeding the Zacks Consensus Estimate of $1.11 billion, and reflecting a 12.4% increase from the previous year [1] Revenue Breakdown - Service revenues for the quarter were $986.3 million, up from $859.5 million in the prior year, and surpassed the Zacks Consensus Estimate of $954 million, accounting for 86% of total revenues [3] - Vehicle sales totaled $160.5 million, slightly down from $160.9 million in the previous year and below the Zacks Consensus Estimate of $175 million [3] Expense Analysis - Facility operations expenses increased by 21.6% year over year to $447.2 million, while the cost of vehicle sales decreased by 6.6% to $138.2 million [4] - General and administrative expenses rose significantly by 57.9% to $90.99 million, contributing to total operating expenses increasing by 14.5% to $690 million [4] Profitability Metrics - Gross profit increased by 10.4% year over year to $512.1 million, with operating income rising to $740.5 million from $625 million in the prior year [4][5] - Net income grew by 8.6% year over year to $361.2 million [5] Cash Position - As of October 31, 2024, Copart had cash, cash equivalents, and restricted cash totaling $3.7 billion, a significant increase from $1.5 billion as of July 31, 2024 [5] - Net cash from operating activities for the quarter was $482.3 million, with capital expenditures amounting to $236.8 million [5]

Financial Data and Key Metrics - Global revenue increased to $1.15 billion, representing a growth of $126 million or 12% year-over-year [41] - Global service revenue grew by $127 million or 15%, driven by increased volume [41] - U.S. service revenue grew by 13%, with 2% attributable to catastrophic (cat) units, while international service revenue grew by 30% [41] - Global gross profit increased by $48 million or 10%, with gross margin decreasing by 82 basis points to 44.7% [46] - U.S. gross profit increased by $28 million or 7%, with gross margin decreasing by 260 basis points to 47.2% [47] - International gross profit increased by $20 million or 44%, with gross margin increasing by 740 basis points to 32.3% [47] - GAAP operating income increased by 3% to $406 million, and GAAP net income increased by 9% to $362 million or $0.37 per diluted share [50] Business Line Performance - U.S. insurance unit volume increased by 12% year-over-year, with 9% growth excluding cat units [36] - Blue car business, serving bank, finance fleet, and rental partners, grew over 20% year-over-year [37] - Dealer sales volume increased by over 2%, with National Powersports Auctions (NPA) growing nearly 14% and Copart Dealer Services (CDS) declining less than 1% [37] - Low-value units, including charities and municipalities, declined by 4% [37] - International unit growth was nearly 16%, with 6% from cat units due to severe floods in the UAE and Brazil [39] Market Performance - U.S. ASPs declined by only 1% year-over-year, outperforming the broader used vehicle market, which saw a 4% decline in the Mannheim Used Vehicle Price Index [40] - International ASPs increased by nearly 7% [40] - Three out of every four catastrophic units sold in Florida during October were sold on Copart's auction platform, reflecting strong market presence and execution speed [12] Strategic Direction and Industry Competition - The company is investing in physical, technological, and human capacity to serve insurance clients under any conditions, including severe weather events [33] - Copart is focusing on optimizing the mix of non-insurance units for profitability, pruning low-value unit volume [36] - The company is expanding its specialty equipment sales team, expecting meaningful growth in gross transaction value over the next 12-24 months [48] Management Commentary on Operating Environment and Future Outlook - Total loss frequency increased to 21.7%, up almost 2% year-over-year, driven by vehicle complexity and repair costs [16] - Long-term industry growth is expected due to population growth, vehicle miles traveled, and total loss frequency, offsetting declining accident rates from safety technologies [32] - The company anticipates more volatility from used car prices and severe weather events but remains confident in its ability to manage these challenges [33] Other Important Information - The company incurred $29 million in incremental costs related to Hurricanes Helene and Milton, with $18 million capitalized on the balance sheet to be recognized as remaining cat units are sold [44][45] - Copart ended the quarter with $4.9 billion in liquidity, including $3.7 billion in cash and capacity under a revolving credit facility [51] - Free cash flow for the quarter was $246 million, with operating cash flow of $482 million and capital investments of $237 million [51] Q&A Session Summary Question: Characteristics of insurance companies with higher or lower total loss frequency - Insurance companies vary in their total loss practices, with some adopting statutory thresholds (e.g., 75% of repair cost to intact value) and others using individual underwriting for each claim [59][60][61] - High-end luxury vehicles are more likely to be totaled due to customer service considerations [59] Question: Impact of off-lease vehicles on the blue car business - Off-lease volumes primarily impact the wholesale market, influencing pricing and unit availability, but have less direct impact on the blue car business, which focuses on damaged vehicles [65][66] Question: Impact of catastrophic events on uninsured motorists - Historical data does not show a clear correlation between catastrophic events and changes in uninsured motorist rates [71][72] Question: Impact of Trump tariffs on the business - The company did not observe a meaningful impact from the Trump tariffs on its business, as the affected countries are not significant importers or exporters of vehicles relevant to Copart [74][75] Question: G&A expenses and specialty sales team growth - G&A expenses increased due to investments in the specialty sales team, with expectations of partial receding over the next 12 months [48][80][81] Question: Market share in Florida and Title Express - Copart's ability to process cars quickly, including salvage title issuance, contributes to its competitive advantage in Florida [82][83][85] Question: Dealer services performance - Dealer services saw a slight decline of less than 1%, attributed to a soft wholesale market in September, but volumes rebounded in October [90] Question: Shift to consignment models in Germany - The company is gradually shifting insurance carriers in Germany to consignment models, similar to its approach in other markets [95][96][97] Question: Capital expenditure trends - Capital expenditures are primarily focused on land, development, and technology, with variations driven by immediate needs and growth expectations [100][101][102]

Copart, Inc. (CPRT) came out with quarterly earnings of $0.37 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.33, delivering a surprise of -10.81%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Copart, which belongs to the Zack ...

Exhibit 99.1 Copart, Inc. For Immediate Release Copart Reports First Quarter Fiscal 2025 Financial Results Dallas, Texas November 21, 2024 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2024. For the three months ended October 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.15 billion, $512.1 million, and $362.1 million, respectively. These represent an increase in revenue of $126.4 million, or 12.4%; an increase in gross ...

The latest trading session saw Copart, Inc. (CPRT) ending at $52.45, denoting a +1.85% adjustment from its last day's close. This change outpaced the S&P 500's 0.28% loss on the day. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.33%. The the stock of company has fallen by 2.67% in the past month, lagging the Business Services sector's gain of 1.14% and the S&P 500's gain of 0.41%. The upcoming earnings release of Copart, Inc. will be of great interest to investors ...

Investors in Copart, Inc. (CPRT) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $80 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...

The auto/tires/trucks sector has been in a slump, as evidenced by weaker results and forecasts from manufacturers like Ford Motor Co. NYSE: F and Stellantis NYSE: STLA. High financing costs and an uncertain macroeconomic climate have caused consumers to tighten their spending, especially on big-ticket items like cars. However, not every part of the automobile industry is in a slump. The auto aftermarket of used cars and car parts is still thriving, and some companies are capitalizing on the action. Here are ...

It has been about a month since the last earnings report for Copart, Inc. (CPRT) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Copart due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Copart Q4 Earnings Miss ExpectationsCopart report ...

My name is Brad, a passionate investor who, like many other millennials, embarked on my financial journey in 2020 during the pandemic. My initial curiosity and desire for knowledge pushed me beyond chasing 'moon' stocks like my many fellow beginners, and I dedicated myself to understanding the intricacies of fundamental analysis and business evaluation. I come from a scientific background with a B.S. in Biology, and while my formal education may not be directly related to finance, it has provided me with a ...

Financial Performance - Service revenues for fiscal 2024 increased by $362.9 million, or 11.3%, compared to fiscal 2023, driven by a $284.5 million increase in the U.S. and a $78.4 million increase internationally[165]. - Total vehicle sales for fiscal 2024 increased by $4.4 million, or 0.7%, compared to fiscal 2023, with a decrease of $9.4 million in the U.S. offset by an increase of $13.8 million internationally[166]. - Operating income for fiscal 2024 was 37% of total revenues, down from 39% in fiscal 2023[163]. - Total operating expenses for fiscal 2024 increased to 63% of total revenues, compared to 61% in both fiscal 2023 and 2022[163]. - Net income for fiscal 2024 was 32% of total revenues, a decrease from 34% in fiscal 2023[163]. - International service revenues grew by 22.0% in fiscal 2024 compared to fiscal 2023, reaching $434.9 million[164]. - U.S. service revenues increased by 10.0% in fiscal 2024 compared to fiscal 2023, totaling $3,126.1 million[164]. - Vehicle sales totaled $675.8 million in fiscal 2024, slightly up from $671.4 million in fiscal 2023, indicating a growth of 0.6%[198]. Operational Developments - The company processed 81%, 83%, and 80% of total vehicles from insurance company sellers in fiscal years 2024, 2023, and 2022 respectively[147]. - The average age of cars on the road increased from 11.1 years in 2012 to 12.6 years in 2024, indicating a growing market for salvage vehicles[151]. - The company acquired a controlling interest in Purple Wave, an online offsite heavy equipment auction company, in October 2023[161]. - The company plans to expand its operations by acquiring and developing additional vehicle storage facilities in key markets, including foreign markets[162]. - The company aims to increase service offerings and pursue global, national, and regional vehicle seller agreements to boost revenues and profitability[162]. - The company operates in multiple countries including the U.S., U.K., Germany, Brazil, and Canada, providing a wide geographic service area[144]. Revenue and Cost Analysis - The company’s revenue is influenced by factors such as total loss frequency, average vehicle auction selling price, and used car pricing[151]. - The company’s auction and auction-related service revenues are recognized at the time of auction based on fees charged, not the gross vehicle selling price[150]. - Yard operations expenses for fiscal 2024 increased by $192.1 million, or 12.7%, compared to fiscal 2023, with a significant increase in the U.S. of $148.2 million[167]. - Cost of vehicle sales for fiscal 2024 increased by $5.0 million, or 0.8%, compared to fiscal 2023, with a decrease of $13.3 million in the U.S. and an increase of $18.3 million internationally[169]. - General and administrative expenses increased by $84.8 million, or 33.9%, in fiscal 2024 compared to fiscal 2023, primarily due to a $80.3 million increase in the U.S. and a $4.5 million increase internationally[170]. Cash Flow and Liquidity - The company’s liquidity is primarily derived from cash operating results and revolving credit commitments under its credit agreement[153]. - Cash, cash equivalents, and restricted cash increased by $556.7 million to $1.5 billion as of July 31, 2024, primarily due to cash generated from operations and stock option exercises[176]. - Working capital rose by $1,019.8 million, or 36.8%, to $3.79 billion as of July 31, 2024, reflecting improved cash generation and timing of cash receipts[176]. - Operating cash flows increased by $108.4 million, or 7.9%, to $1.47 billion in fiscal 2024 compared to fiscal 2023, driven by higher service and vehicle sales revenues[176]. - Net cash used in investing activities decreased by $951.9 million, or 50.3%, in fiscal 2024 compared to fiscal 2023, primarily due to proceeds from the sale of held-to-maturity securities[182]. - The company plans to continue using cash flows from operations to finance working capital needs and business growth, with potential for additional cash through a Revolving Loan Facility or equity issuance[177]. - As of July 31, 2024, $180.5 million of the $1.5 billion in cash and equivalents was held by foreign subsidiaries, with no immediate plans for repatriation[180]. - The company did not repurchase any shares under its stock repurchase program in fiscal 2024, maintaining a total of 325,803,208 shares available for future repurchase[184]. - As of July 31, 2024, the company had $0.0 million outstanding borrowings under the Revolving Loan Facility, down from $11.0 million in the previous year[187]. Tax and Other Income - Total other income for fiscal 2024 rose by $74.8 million, or 110.4%, compared to fiscal 2023, mainly driven by higher interest income from U.S. Treasury Bills and gains on the sale of fixed assets[172]. - The effective income tax rate for fiscal 2024 was 20.5%, slightly up from 20.4% in fiscal 2023, influenced by tax adjustments and excess tax benefits from employee stock options[173]. Internal Controls and Compliance - The company's disclosure controls were effective at the reasonable assurance level as of July 31, 2024[211]. - Management assessed the effectiveness of internal control over financial reporting as of July 31, 2024, concluding that effective controls were maintained[213]. - Ernst & Young LLP issued an unqualified opinion on the company's internal control over financial reporting as of July 31, 2024[217]. - There were no changes in internal control over financial reporting during the quarter ended July 31, 2024, that materially affected the controls[214]. - The internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[220]. - The company maintained effective internal control over financial reporting based on the COSO criteria[217]. - The evaluation of internal control effectiveness is subject to inherent limitations and may not prevent or detect misstatements[221]. Future Plans and Governance - The company plans to file a definitive proxy statement for the 2024 Annual Meeting of Stockholders within 120 days after the fiscal year-end[225]. - No directors or officers adopted or terminated any trading arrangements during the three months ended July 31, 2024[223].