Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2023. For the three months ended January 31, 2023, revenue, gross profit, and net income were $956.7 million, $426.5 million, and $293.7 million, respectively. These represent an increase in revenue of $89.3 million, or 10.3%; an increase in gross profit of $23.2 million, or 5.7%; and an increase in net income of $6.3 million, or 2.2%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.61 compared to $0.60 last year, an increase of 1.7%. For the six months ended January 31, 2023, revenue, gross profit, and net income were $1,850.1 million, $796.0 million, and $539.5 million, respectively. These represent an increase in revenue of $172.5 million, or 10.3%; an increase in gross profit of $7.6 million, or 1.0%; and a decrease in net income of $8.3 million, or (1.5)%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $1.12 compared to $1.14 last year, a decrease of (1.8)%. Excluding the impact of certain discrete income tax items and certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the three months ended January 31, 2023 and 2022 were $0.61, and $0.55, respectively, which was an increase of 10.9%. Excluding the impact of certain discrete income tax items and certain income tax benefits related to stock-based compensation, non-GAAP fully diluted earnings per share for the six months ended January 31, 2023 and 2022, were $1.12, and $1.08, respectively, which was an increase of 3.7%. 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 Tuesday, February 21, 2023, 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 May 2023 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 190 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. 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 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. 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 January 31,   Six Months Ended January 31,       2023       2022     % Change     2023       2022     % Change Service revenues and vehicle sales:                         Service revenues   $ 789,797     $ 711,090     11.1 %   $ 1,516,637     $ 1,378,908     10.0 % Vehicle sales     166,927       156,370     6.8 %     333,459       298,684     11.6 % Total service revenues and vehicle sales     956,724       867,460     10.3 %     1,850,096       1,677,592     10.3 % Operating expenses:                         Yard operations     340,085       294,098     15.6 %     677,057       565,374     19.8 % Cost of vehicle sales     154,727       140,304     10.3 %     305,839       266,712     14.7 % Yard depreciation and amortization     34,070       28,301     20.4 %     68,430       54,738     25.0 % Yard stock-based compensation     1,342       1,415     (5.2 )%     2,787       2,396     16.3 % Gross profit     426,500       403,342     5.7 %     795,983       788,372     1.0 % General and administrative     47,842       42,754     11.9 %     92,377       83,869     10.1 % General and administrative depreciation and amortization     4,344       5,013     (13.3 )%     9,042       10,336     (12.5 )% General and administrative stock-based compensation     8,789       8,247     6.6 %     17,536       16,718     4.9 % Total operating expenses     591,199       520,132     13.7 %     1,173,068       1,000,143     17.3 % Operating income     365,525       347,328     5.2 %     677,028       677,449     (0.1 )% Other expense:                         Interest income (expense), net     14,480       (4,433 )   (426.6 )%     18,902       (9,540 )   (298.1 )% Other expense, net     (2,902 )     (840 )   245.5 %     (5,724 )     (28 )   20342.9 % Total other income (expense)     11,578       (5,273 )   (319.6 )%     13,178       (9,568 )   237.7 % Income before income taxes     377,103       342,055     10.2 %     690,206       667,881     3.3 % Income tax expense     83,426       54,643     52.7 %     150,681       120,106     25.5 % Net income   $ 293,677     $ 287,412     2.2 %   $ 539,525     $ 547,775     (1.5 )%                           Basic net income per common share   $ 0.62     $ 0.61     1.6 %   $ 1.13     $ 1.15     (1.7 )% Weighted average common shares outstanding     476,376       474,372     0.4 %     476,237       474,334     0.4 %                           Diluted net income per common share   $ 0.61     $ 0.60     1.7 %   $ 1.12     $ 1.14     (1.8 )% Diluted weighted average common shares outstanding     482,536       482,374     — %     482,238       482,488     (0.1 )% Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)     January 31, 2023   July 31, 2022 ASSETS         Current assets:         Cash, cash equivalents, and restricted cash   $ 1,660,952     $ 1,384,236   Accounts receivable, net     765,192       578,573   Vehicle pooling costs     133,598       112,242   Inventories     52,071       58,791   Income taxes receivable     436       49,882   Prepaid expenses and other assets     26,532       18,731   Total current assets     2,638,781       2,202,455   Property and equipment, net     2,656,273       2,485,764   Operating lease right-of-use assets     106,656       116,303   Intangibles, net     51,186       54,680   Goodwill     404,046       401,954   Other assets     75,466       47,708   Total assets   $ 5,932,408     $ 5,308,864             LIABILITIES AND STOCKHOLDERS’ EQUITY         Current liabilities:         Accounts payable and accrued liabilities   $ 439,271     $ 399,034   Deferred revenue     23,796       20,061   Income taxes payable     3,820       —   Current portion of operating and finance lease liabilities     20,736       21,794   Total current liabilities     487,623       440,889   Deferred income taxes     76,471       80,060   Income taxes payable     65,322       64,637   Operating and finance lease liabilities, net of current portion     87,394       95,683   Long-term debt and other liabilities     1,946       1,996   Total liabilities     718,756       683,265   Commitments and contingencies         Stockholders' equity:         Preferred stock     —       —   Common stock     48       48   Additional paid-in capital     875,009       838,508   Accumulated other comprehensive loss     (156,507 )     (169,365 ) Retained earnings     4,495,102       3,956,408   Total stockholders' equity     5,213,652       4,625,599   Total liabilities and stockholders' equity   $ 5,932,408     $ 5,308,864   Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)     Six Months Ended January 31,       2023       2022   Cash flows from operating activities:         Net income   $ 539,525     $ 547,775   Adjustments to reconcile net income to net cash provided by operating activities:         Depreciation and amortization, including debt cost     78,094       65,627   Allowance for credit loss     2,133       1,695   Equity in losses of unconsolidated affiliates     4,030       685   Stock-based compensation     20,323       19,114   Gain on sale of property and equipment     (748 )     (755 ) Deferred income taxes     (3,309 )     6,003   Changes in operating assets and liabilities:         Accounts receivable     (186,559 )     (152,763 ) Vehicle pooling costs     (21,268 )     (29,623 ) Inventories     8,001       (8,589 ) Prepaid expenses, other current and non-current assets     (29,176 )     (19,889 ) Operating lease right-of-use assets and lease liabilities     414       657   Accounts payable, accrued liabilities and other liabilities     27,619       10,741   Deferred revenue     3,709       (309 ) Income taxes receivable     49,430       4,577   Income taxes payable     7,615       1,655   Other liabilities     —       (53 ) Net cash provided by operating activities     499,833       446,548             Cash flows from investing activities:         Purchases of property and equipment     (256,719 )     (156,200 ) Purchase of assets in connection with acquisitions     —       (469 ) Proceeds from sale of property and equipment     16,343       1,252   Purchase of held to maturity securities     —       (374,866 ) Investment in unconsolidated affiliate     (1,993 )     —   Net cash used in investing activities     (242,369 )     (530,283 )           Cash flows from financing activities:         Proceeds from the exercise of stock options     10,815       11,985   Proceeds from the issuance of Employee Stock Purchase Plan shares     5,363       5,022   Payments for employee stock-based tax withholdings     (831 )     (599 ) Payments of finance lease obligations     (13 )     (314 ) Net cash provided by financing activities     15,334       16,094   Effect of foreign currency translation     3,918       (8,968 ) Net increase (decrease) in cash, cash equivalents, and restricted cash     276,716       (76,609 ) Cash, cash equivalents, and restricted cash at beginning of period     1,384,236       1,048,260   Cash, cash equivalents, and restricted cash at end of period   $ 1,660,952     $ 971,651   Supplemental disclosure of cash flow information:         Interest paid   $ 706     $ 9,311   Income taxes paid, net of refunds   $ 98,324     $ 128,972   Copart, Inc. Additional Financial Information Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited)     Three Months Ended January 31,   Six Months Ended January 31,       2023       2022       2023       2022   GAAP net income   $ 293,677     $ 287,412     $ 539,525     $ 547,775   Effect of certain discrete income tax items     —       (17,490 )     —       (17,490 ) Effect of recognizing tax benefit on exercise of stock-based compensation     (115 )     (3,965 )     (740 )     (6,952 ) Non-GAAP net income   $ 293,562     $ 265,957     $ 538,785     $ 523,333                     GAAP net income per diluted common share   $ 0.61     $ 0.60     $ 1.12     $ 1.14   Non-GAAP net income per diluted common share   $ 0.61     $ 0.55     $ 1.12     $ 1.08     View source version on businesswire.com: https://www.businesswire.com/news/home/20230220005276/en/