Copart Reports 14.8% Revenue Growth to $1.15 Billion in Latest Quarter

Copart, Inc. reported significant financial growth in its latest quarterly filing for the period ending October 31, 2024. The company achieved total service revenues and vehicle sales of $1.15 billion, marking a 14.8% increase from $1.02 billion in the same period last year. Service revenues alone rose by 12.8% to $859.99 million, driven by increased volume and revenue per vehicle in the U.S. and international markets. Net income for the quarter was $362.09 million, up from $332.53 million a year earlier, resulting in a basic net income per share of $0.38, compared to $0.35 in the prior year.

The company’s operational expenses also saw a notable increase, with total operating expenses rising to $740.46 million from $625.04 million in the previous year. This increase was primarily attributed to higher facility operations costs, which surged by 21.2% to $496.55 million, largely due to increased labor and operational costs associated with handling a higher volume of vehicles, as well as one-time costs related to hurricane recovery efforts. General and administrative expenses also rose significantly, increasing by 54% to $105.74 million, reflecting higher costs for outside services and labor.

In terms of strategic developments, Copart completed the acquisition of an 80% controlling interest in Purple Wave, Inc., an online heavy equipment auction company, in October 2023. This acquisition is expected to enhance Copart's service offerings and expand its market reach. The company has also been actively expanding its operational footprint, opening several new facilities in both the U.S. and international markets, including locations in Vermont, Spain, and the U.K. This expansion is part of Copart's strategy to strengthen its coverage and service capabilities.

Operationally, Copart reported a total of 963.53 million shares outstanding as of October 31, 2024. The company’s cash, cash equivalents, and restricted cash increased significantly to $3.70 billion, up from $1.51 billion at the end of the previous fiscal year, reflecting strong cash generation from operations. The company also reported a consolidated total net leverage ratio of 1.94:1, indicating a solid financial position. Looking ahead, Copart remains optimistic about its growth prospects, driven by ongoing expansion efforts and the anticipated benefits from its recent acquisitions.