Wiki source code of Copart Inc

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5 = Summary =
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7 * Copart is a leading global provider of online auctions and vehicle remarketing services
8 * The company has operations in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain.
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11 [[image:CPRT0.png]]
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14 Copart (Nasdaq: CPRT) is a leading global provider of online auctions and vehicle remarketing services with operations in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain.
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18 [[image:CPRT1.jpg]]
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21 = Financial Highlights =
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23 **First Quarter Fiscal 2023 Results**
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25 November 16, 2022; Copart Reports First Quarter Fiscal 2023 Financial Results{{footnote}}https://www.copart.com/content/us/en/press-releases/copart-reports-first-quarter-2023-results{{/footnote}}
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28 For the three months ended October 31, 2022, revenue, gross profit, and net income were $893.4 million, $369.5 million, and $245.8 million, respectively. These represent an increase in revenue of $83.2 million, or 10.3%; a decrease in gross profit of $15.5 million, or 4.0%; and a decrease in net income of $14.5 million, or 5.6%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.51 compared to $0.54 last year, a decrease of 5.6%.
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31 On September 28th, 2022, Hurricane Ian, a Category 4 hurricane, came ashore in Florida, with sustained winds of 150mph, the first such Category 4 storm to impact Southwest Florida since Hurricane Charley in 2004. Hurricane Ian adversely impacted the operating results for the three months ended October 31, 2022 resulting in additional costs of approximately $25 million. These costs included premiums for subhaulers; labor costs incurred from overtime, and travel and lodging due to the reassignment of employees to the affected region.
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34 **Fiscal Years 2022 Results**
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36 For the year ended July 31, 2022, revenue, gross profit, and net income were $3.5 billion, $1.6 billion, and $1.1 billion, respectively. These represent an increase in revenue of $808.4 million, or 30.0%; an increase in gross profit of $263.1 million, or 19.6%; and an increase in net income of $153.6 million, or 16.4%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2022, were $4.52 compared to $3.90 last year, an increase of 15.9%.
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39 = Industry Overview =
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41 The auction and vehicle remarketing services industry provides a venue for sellers to dispose of or liquidate vehicles to a broad domestic and international buyer pool. Sellers generally auction or sell their vehicles on a consignment basis either for a fixed fee or a percentage of the sales price. Occasionally, companies in its industry purchase vehicles from the largest segment of sellers, insurance companies, and resell the vehicles for their own account. The vehicles are usually purchased at a price based on the vehicles’ estimated pre-accident value ("PAV”) and the extent of damage. Vehicle remarketers typically operate from multiple facilities where vehicles are processed, viewed, stored and released to the buyer. While companies in this industry remarket vehicles through a physical auction or a hybrid internet and physical auction, the company sell virtually all its vehicles on its internet selling platformVB3, thus eliminating the requirement for buyers to travel to an auction location to participate in the sales process.{{footnote}}https://fintel.io/doc/sec-copart-inc-900075-10k-2022-september-27-19262-8880{{/footnote}}
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44 Although there are other sellers of vehicles, such as banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals, its primary sellers of vehicles are insurance companies.
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47 Most of its vehicles are sold on behalf of insurance companies and are usually vehicles involved in an accident ora natural disaster. Typically, the damaged vehicle is towed to a storage facility or a vehicle repair facility for temporary storage pending insurance company examination. The vehicle is inspected by the insurance company’s adjuster, who estimates the costs of repairing the vehicle and gathers information regarding the damaged vehicle’s mileage, options, and condition in order to estimate its PAV. The adjuster determines whether to pay for repairs or to classify the vehicle as a total loss based upon the adjuster’s estimate of repair costs, vehicle’s salvage value, and the PAV, as well as customer service considerations. If the cost of repair is greater than the PAV less the estimated salvage value, the insurance company generally will classify the vehicle as a total loss. The insurance company will there after assign the vehicle to a vehicle auction and remarketing services company, settle with the insured and receive title to the vehicle.
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50 [[image:CPRT2.jpg]]
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53 = Company Overview =
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55 Founded in 1982 with a single salvage yard in California, Copart has grown into a global leader and the premier source for online vehicle auctions. Copart’s innovative technology and online auction platform link Buyers and Sellers around the world. Headquartered in Dallas, Texas, Copart currently operates more than 200 locations in 11 countries and has more than 175,000 vehicles up for auction every day.
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58 The company provide vehicle sellers with a full range of services to process and sell vehicles primarily over the internet through its Virtual Bidding Third Generation internet auction style sales technology, which the company refer to as VB3. Vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. The company sell the vehicles principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and to the general public. The majority of the vehicles sold on behalf of insurance companies are either damaged vehicles deemed a total loss; not economically repairable by the insurance companies; or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The company offer vehicle sellers a full range of services that help expedite each stage of the vehicle sales process, minimize administrative and processing costs, and maximize the ultimate sales price through the online auction process.
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61 In the U.S., Canada, Brazil, the Republic of Ireland, Finland, the U.A.E., Oman, and Bahrain, the company sell vehicles primarily as an agent and derive revenue primarily from auction and auction related sales transaction fees charged for vehicle remarketing services as well as fees for services subsequent to the auction, such as delivery and storage. In the U.K., Germany, and Spain the company operate both as an agent and on a principal basis, in some cases purchasing salvage vehicles outright and reselling the vehicles for its own account. In Germany and Spain, the company also derive revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured.
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64 For fiscal 2022, sales of U.S. vehicles, on a unit basis, to members registered outside the state where the vehicle was located accounted for 66.1% of total vehicles sold; of which 29.7% of vehicles were sold to out of state members within the U.S. and 36.4% were sold to International members, based on the IP address utilized during the auction process.
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67 In fiscal 2020, the company opened two new operational facilities in Germany, one new operational facility in Brazil, and three new operational facilities in the U.S. In fiscal 2021, the company opened one new operational facility in Germany, one new operational facility in Spain, ten new operational facilities in the U.S., and acquired an operational facility in Des Moines, Iowa.
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70 In fiscal 2022, the company opened one new operational facility in Canada, one new operational facility in Spain, and five new operational facilities in the U.S. As for strategic acquisitions of complementary businesses, the company acquired a parts recycler in the U.K. that has four operating facilities.
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73 = References =
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75 {{putFootnotes/}}
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