Copart(US:CPRT)2023-11-20 16:00Financial Performance - Total service revenues and vehicle sales for the three months ended October 31, 2023, reached $1,020,416, an increase of 14.3% compared to $893,372 for the same period in 2022[10]. - Net income attributable to Copart, Inc. for the three months ended October 31, 2023, was $332,527, representing a 35.2% increase from $245,848 in the same period last year[10]. - Operating income for the three months ended October 31, 2023, was $395,376, up 26.9% from $311,503 for the same period in 2022[10]. - Comprehensive income attributable to Copart, Inc. for the three months ended October 31, 2023, was $296,174, compared to $216,277 for the same period in 2022[12]. - Net income for the three months ended October 31, 2023, was $332,532, an increase of 35% compared to $245,848 for the same period in 2022[19]. - Operating income increased to 39% of total revenues for the three months ended October 31, 2023, up from 35% in the same period last year[85]. - Net income rose to 33% of total revenues for the three months ended October 31, 2023, compared to 27% in the same period last year[85]. Revenue Breakdown - Total service revenues reached $859,536, up 18% from $726,840 in the prior year, with U.S. service revenues at $762,524 and international service revenues at $97,012[28]. - Vehicle sales totaled $160,880, a decrease of 3% from $166,532 in the same quarter last year, with U.S. vehicle sales at $78,382 and international vehicle sales at $82,498[29]. - Service revenues in the U.S. increased by $110.9 million, or 17.0%, while international service revenues increased by $21.8 million, or 29.0%[87]. Cash and Liquidity - Cash, cash equivalents, and restricted cash increased to $2,581,567 as of October 31, 2023, compared to $957,395 as of July 31, 2023[6]. - Cash and cash equivalents at the end of the period were $2,581,567, compared to $1,539,391 at the end of the same period last year, reflecting a significant increase[19]. - Cash, cash equivalents, and restricted cash increased by $1,624.2 million (169.6%) to $2,581.6 million as of October 31, 2023, compared to July 31, 2023[98]. - Working capital rose by $190.6 million (6.9%) to $2,960.5 million as of October 31, 2023, driven by cash generated from operations[98]. - Operating cash flows increased by $63.7 million (20.4%) to $375.2 million for the three months ended October 31, 2023, compared to the same period in 2022[98]. Assets and Liabilities - Total assets grew to $7,333,786 as of October 31, 2023, up from $6,737,879 as of July 31, 2023[7]. - Total stockholders' equity increased to $6,411,417 as of October 31, 2023, compared to $5,987,440 as of July 31, 2023[7]. - The company’s total liabilities as of October 31, 2023, were $897,147, an increase from $750,439 as of July 31, 2023[7]. - Total current assets increased to $3,584,890 as of October 31, 2023, up from $3,262,604 as of July 31, 2023, reflecting a growth of 9.9%[6]. Expenses - Operating expenses for the three months ended October 31, 2023, totaled $625,040, an increase of 7.4% from $581,869 in the same period last year[10]. - General and administrative expenses rose by $10.7 million, or 18.4%, for the three months ended October 31, 2023, primarily due to a $9.5 million increase in the U.S. and a $1.2 million increase internationally[94]. - Yard operations expenses increased by $35.7 million, or 9.6%, for the three months ended October 31, 2023, compared to the same period last year, driven by a $23.4 million increase in the U.S. and a $12.4 million increase internationally[91]. - Total operating expenses decreased to 61% of total revenues for the three months ended October 31, 2023, down from 65% in the same period last year[85]. Acquisitions and Investments - The Company acquired an 80% controlling ownership in Purple Wave, Inc. for $108.0 million, issuing 2.5 million shares of common stock, with a fair value of the merger consideration at $112.1 million[41]. - The company opened new operational facilities in various locations, including Corby, England, in October 2023, as part of its expansion strategy[82]. - The company plans to pursue global, national, and regional vehicle seller agreements to increase revenues and profitability[82]. Taxation - The effective income tax rates were 21.4% for the three months ended October 31, 2023, slightly down from 21.5% in the same period of 2022[71]. - Income taxes for the three months ended October 31, 2023, were $90.8 million, reflecting an increase of $23.5 million, or 35.0%, compared to the same period last year[96]. Stock and Dividends - As of October 31, 2023, the total number of shares repurchased under the stock repurchase program was 458 million, with 326 million shares still available for repurchase[70]. - The Company has not paid a cash dividend since becoming public in 1994, maintaining compliance with all covenants related to its credit agreement[56]. Other Notable Points - The company is currently under investigation by the U.S. Department of Justice regarding potential violations of money laundering laws, which may impact future operations[74]. - The average age of cars on the road increased from 9.7 years in 2003 to 12.5 years in 2023, impacting total loss frequency and vehicle auction selling prices[1].