cprt-20200902
0000900075false00009000752020-09-022020-09-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
September 2, 2020
Date of Report (date of earliest event reported)
COPART, INC.
(Exact name of registrant as specified in its charter)
Delaware
000-23255
94-2867490
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
14185 Dallas ParkwaySuite 300
Dallas
Texas
75254
(Address of principal executive offices, including zip code)
(972) 391-5000
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001CPRTThe NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



INFORMATION INCLUDED IN THIS REPORT
Section 2 — Financial Information
Item 2.02 Results of Operations and Financial Condition
The following information and the exhibit attached hereto as Exhibit 99.1 are intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information and the exhibit attached hereto as Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing, except as shall be expressly set forth by specific reference in such filing.
On September 2, 2020, Copart, Inc. issued a press release announcing its financial results for the fourth quarter of fiscal year 2020, which ended July 31, 2020. The full text of the press release is furnished herewith as Exhibit 99.1.
Section 9 — Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are furnished herewith:
Exhibit
Number
Description
Press release, dated September 2, 2020 of Copart, Inc. announcing its financial results for the fourth quarter of fiscal year 2020, which ended July 31, 2020.
104Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL).




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated:  September 2, 2020     COPART, INC.
 
By: /s/ Jeffrey Liaw
Jeffrey Liaw
President and Chief Financial Officer




INDEX TO EXHIBITS
Exhibit
Number
Description
Press release, dated September 2, 2020 of Copart, Inc. announcing its financial results for the fourth quarter of fiscal year 2020, which ended July 31, 2020.
104Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL).


Document

Exhibit 99.1
Copart, Inc.
For Immediate Release
Copart Reports Fourth Quarter Fiscal 2020 Financial Results
Dallas, Texas. (September 2, 2020) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2020.
For the three months ended July 31, 2020, revenue, gross profit, and net income were $525.7 million, $250.4 million, and $165.5 million, respectively. These represent a decrease in revenue of $16.9 million, or 3.1%; an increase in gross profit of $7.8 million, or 3.2%; and an increase in net income of $12.0 million, or 7.8%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2020 were $0.69 compared to $0.64 last year, an increase of 7.8%.
For the year ended July 31, 2020, revenue, gross profit, and net income were $2.2 billion, $1.0 billion, and $699.9 million, respectively. These represent an increase in revenue of $163.6 million, or 8.0%; an increase in gross profit of $109.5 million, or 12.2%; and an increase in net income of $108.2 million, or 18.3%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2020 were $2.93 compared to $2.46 last year, an increase of 19.1%.
Excluding the impact of discrete income tax items, disposal of non-operating assets, reserve for legacy sales tax liabilities, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, and the effect on common equivalent shares from ASU 2016-09, non-GAAP fully diluted earnings per share for the three months and year ended July 31, 2020 and 2019, were $0.69, $0.60, $2.57 and $2.25, respectively. 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, September 3, 2020, at 11:00 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 at http://stream.conferenceamerica.com/copart090320. A replay of the call will be available through November 2, 2020 by calling (877) 919-4059. Use confirmation code: 38708517.
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 salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters, and in some cases, to end users. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators, dealers and also sells vehicles sourced from individual owners. With operations at over 200 locations in 11 countries, Copart has more than 150,000 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 discrete income tax items, disposal of non-operating assets, reserve for legacy sales tax liabilities, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, and the effect on common equivalent shares from ASU 2016-09. 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. From a financial planning and analysis perspective, Copart management analyzes its operating results with and without the impact of discrete income tax items, disposal of non-operating assets, reserve for legacy sales tax liabilities, foreign currency-related gains and losses, certain income tax benefits and payroll taxes related to accounting for stock option exercises, and the effect on common equivalent shares from ASU 2016-09.
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:Melissa Hunter, Executive Support Manager, Office of the Chief Financial Officer
972-391-5090 or melissa.hunter@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 
July 31,
Twelve Months Ended 
July 31,
2020201920202019
Service revenues and vehicle sales:
Service revenues$457,668 $470,399 $1,947,140 $1,755,694 
Vehicle sales67,991 72,176 258,443 286,263 
Total service revenues and vehicle sales
525,659 542,575 2,205,583 2,041,957 
Operating expenses:   
Yard operations197,186 217,089 889,733 819,753 
Cost of vehicle sales54,643 65,552 225,294 255,504 
Yard depreciation and amortization21,615 15,745 76,999 63,167 
Yard stock-based compensation1,784 1,570 5,755 5,191 
Gross profit
250,431 242,619 1,007,802 898,342 
General and administrative34,643 39,772 149,745 141,885 
General and administrative depreciation and amortization5,764 5,770 24,391 21,728 
General and administrative stock-based compensation4,309 4,275 17,567 18,254 
Total operating expenses
319,944 349,773 1,389,484 1,325,482 
Operating income
205,715 192,802 816,099 716,475 
Other expense:   
Interest expense, net(4,803)(4,255)(18,871)(17,585)
Other income (expense), net971 (1,477)3,611 6,061 
Total other expense(3,832)(5,732)(15,260)(11,524)
Income before income taxes201,883 187,070 800,839 704,951 
Income tax expense36,350 33,574 100,932 113,258 
Net income$165,533 $153,496 $699,907 $591,693 
Basic net income per common share$0.70 $0.67 $3.00 $2.57 
Weighted average common shares outstanding234,863 229,204 233,202 230,489 
Diluted net income per common share$0.69 $0.64 $2.93 $2.46 
Diluted weighted average common shares outstanding238,927 238,354 238,656 240,453 

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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)
July 31, 2020July 31, 2019
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash$477,718 $186,319 
Accounts receivable, net350,207 367,265 
Vehicle pooling costs73,684 76,548 
Inventories20,080 20,941 
Income taxes receivable26,740 19,526 
Prepaid expenses and other assets15,330 16,568 
Total current assets963,759 687,167 
Property and equipment, net1,941,719 1,427,726 
Operating lease right-of-use assets118,455  
Intangibles, net47,772 55,156 
Goodwill343,622 333,321 
Deferred income taxes213 411 
Other assets39,721 43,836 
Total assets$3,455,261 $2,547,617 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$318,530 $270,918 
Deferred revenue8,233 6,466 
Income taxes payable3,709 3,482 
Current portion of operating lease liabilities24,821  
Current portion of finance lease obligations751 1,138 
Total current liabilities356,044 282,004 
Deferred income taxes71,686 48,683 
Income taxes payable44,965 35,116 
Operating lease liabilities, net of current portion95,584  
Long-term debt and finance lease obligations, net of discount397,036 400,091 
Other liabilities430 3,342 
Total liabilities965,745 769,236 
Commitments and contingencies
Stockholders’ equity:
Preferred stock  
Common stock24 23 
Additional paid-in capital672,727 572,559 
Accumulated other comprehensive loss(121,088)(132,529)
Retained earnings1,937,853 1,338,328 
Total stockholders’ equity2,489,516 1,778,381 
Total liabilities and stockholders’ equity$3,455,261 $2,547,617 

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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)
Year Ended July 31,
20202019
Cash flows from operating activities:
Net income$699,907 $591,693 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization, including debt cost104,257 85,334 
Allowance for doubtful accounts1,670 (429)
Impairment of long-lived assets  
Equity in losses of unconsolidated affiliates1,401 419 
Stock-based compensation23,322 23,445 
Gain on sale of property and equipment(1,913)(3,073)
Deferred income taxes23,082 23,167 
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable15,993 (60,808)
Vehicle pooling costs2,590 (16,418)
Inventories1,348 (4,719)
Prepaid expenses and other current and non-current assets141 (12,265)
Operating lease right-of-use assets and lease liabilities(572) 
Accounts payable and accrued liabilities41,648 11,126 
Deferred revenue1,615 2,056 
Income taxes receivable(7,216)(4,215)
Income taxes payable10,114 10,669 
Other liabilities498 664 
Net cash provided by operating activities917,885 646,646 
Cash flows from investing activities:
Purchases of property and equipment, including acquisitions(603,674)(374,628)
Proceeds from sale of property and equipment2,466 18,361 
Net cash used in investing activities(601,208)(356,267)
Cash flows from financing activities:
Proceeds from the exercise of stock options71,640 34,398 
Proceeds from the issuance of Employee Stock Purchase Plan shares8,276 7,183 
Repurchases of common stock (364,997)
Payments for employee stock-based tax withholdings(103,451)(46,888)
Debt offering costs(2,814) 
Payments of finance lease obligations(1,065) 
Net cash used in financing activities(27,414)(370,304)
Effect of foreign currency translation2,136 (8,276)
Net increase (decrease) in cash, cash equivalents, and restricted cash291,399 (88,201)
Cash, cash equivalents, and restricted cash at beginning of period186,319 274,520 
Cash, cash equivalents, and restricted cash at end of period$477,718 $186,319 
Supplemental disclosure of cash flow information:
Interest paid$19,728 $19,289 
Income taxes paid, net of refunds$83,770 $82,448 

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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 
July 31,
Twelve Months Ended 
July 31,
2020201920202019
GAAP net income$165,533 $153,496 $699,907 $591,693 
Effect of discrete income tax items4,740  1,732 (10,170)
Effect of disposal of non-operating assets, net of tax   (1,598)
Effect of reserve for legacy sales tax liabilities, net of tax 978  978 
Effect of foreign currency-related (gains) losses, net of tax(268)48 (1,436)(256)
Effect of recognizing tax benefit on exercise of employee stock options(6,586)(12,007)(92,548)(46,103)
Effect of payroll taxes on certain executive stock compensation, net of tax  2,867 1,295 
Non-GAAP net income$163,419 $142,515 $610,522 $535,839 
GAAP net income per diluted common share$0.69 $0.64 $2.93 $2.46 
Non-GAAP net income per diluted common share$0.69 $0.60 $2.57 $2.25 
GAAP diluted weighted average common shares outstanding238,927 238,354 238,656 240,453 
Effect on common equivalent shares from ASU 2016-09(656)(1,633)(911)(1,870)
Non-GAAP diluted weighted average common shares outstanding238,271 236,721 237,745 238,583 

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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
v3.20.2
Document and Entity Information Document
Sep. 02, 2020
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Sep. 02, 2020
Entity Registrant Name COPART, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 000-23255
Entity Tax Identification Number 94-2867490
Entity Address, Address Line One 14185 Dallas Parkway
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Dallas
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75254
City Area Code 972
Local Phone Number 391-5000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.0001
Trading Symbol CPRT
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000900075