For Immediate Release

Dallas, Texas February 22, 2024 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2024.

For the three months ended January 31, 2024, revenue, gross profit, and net income attributable to Copart Inc. were $1.02 billion, $464.2 million, and $325.6 million, respectively. These represent an increase in revenue of $63.4 million, or 6.6%; an increase in gross profit of $37.7 million, or 8.8%; and an increase in net income attributable to Copart Inc. of $32.0 million, or 10.9%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.33 compared to $0.30 last year, an increase of 10.0%.

For the six months ended January 31, 2024, revenue, gross profit, and net income attributable to Copart Inc. were $2.04 billion, $928.2 million, and $658.2 million, respectively. These represent an increase in revenue of $190.5 million, or 10.3%; an increase in gross profit of $132.2 million, or 16.6%; and an increase in net income attributable to Copart Inc. of $118.6 million, or 22.0%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $0.68 compared to $0.56 last year, an increase of 21.4%.

On Thursday, February 22, 2024, at 5:30 p.m. Eastern Time (4:30 p.m. Central 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 2024 by visiting www.copart.com/investorrelations.

Copart, Inc., founded in 1982, is a global leader in online vehicle auctions. Copart's innovative technology and online auction platforms link 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 250 locations in 11 countries, Copart has more than 265,000 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.

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.

(In thousands, except per share amounts)

(Unaudited)

						Three Months Ended  January 31,																		Six Months Ended  January 31,
						2024						2023						% Change						2024						2023						% Change
Service revenues and vehicle sales:
Service revenues						$	861,745					$	789,797					9.1		%				1,721,281						$	1,516,637					13.5		%
Vehicle sales						158,404						166,927						(5.1)		%				319,284						333,459						(4.3)		%
Total service revenues and vehicle sales						1,020,149						956,724						6.6		%				2,040,565						1,850,096						10.3		%
Operating expenses:
Yard operations						366,342						340,085						7.7		%				734,184						677,057						8.4		%
Cost of vehicle sales						146,819						154,727						(5.1)		%				294,715						305,839						(3.6)		%
Yard depreciation and amortization						41,208						34,070						21.0		%				80,311						68,430						17.4		%
Yard stock-based compensation						1,628						1,342						21.3		%				3,184						2,787						14.2		%
Gross profit						464,152						426,500						8.8		%				928,171						795,983						16.6		%
General and administrative						72,657						47,842						51.9		%				130,288						92,377						41.0		%
General and administrative depreciation and amortization						4,054						4,344						(6.7)		%				8,115						9,042						(10.3)		%
General and administrative stock-based compensation						7,541						8,789						(14.2)		%				14,492						17,536						(17.4)		%
Total operating expenses						640,249						591,199						8.3		%				1,265,289						1,173,068						7.9		%
Operating income						379,900						365,525						3.9		%				775,276						677,028						14.5		%
Other income (expense):
Interest income, net						33,956						14,480						134.5		%				65,961						18,902						249.0		%
Other expense, net						(3,103)						(2,902)						6.9		%				(7,175)						(5,724)						25.3		%
Total other income						30,853						11,578						166.5		%				58,786						13,178						346.1		%
Income before income taxes						410,753						377,103						8.9		%				834,062						690,206						20.8		%
Income tax expense						85,226						83,426						2.2		%				176,003						150,681						16.8		%
Net income						325,527						293,677						10.8		%				658,059						539,525						22.0		%
Less: Net income/(loss) attributable to noncontrolling interest						(108)						—						100.0		%				(103)						—						100.0		%
Net income attributable to Copart, Inc.						$	325,635					$	293,677					10.9		%				$	658,162					$	539,525					22.0		%
Basic net income per common share						$	0.34					$	0.31					9.7		%				$	0.69					$	0.57					21.1		%
Weighted average common shares outstanding						960,525						952,752						0.8		%				959,326						952,474						0.7		%
Diluted net income per common share						$	0.33					$	0.30					10.0		%				$	0.68					$	0.56					21.4		%
Diluted weighted average common shares outstanding						974,589						965,072						1.0		%				973,135						964,476						0.9		%

(Unaudited)

						January 31, 2024						July 31, 2023
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash						$	1,256,948					$	957,395
Investment in held to maturity securities						1,411,122						1,406,589
Accounts receivable, net						846,357						702,038
Vehicle pooling costs						137,907						123,725
Inventories						42,812						39,973
Income taxes receivable						17,030						6,574
Prepaid expenses and other assets						36,310						26,310
Total current assets						3,748,486						3,262,604
Property and equipment, net						3,042,711						2,844,339
Operating lease right-of-use assets						112,838						108,139
Intangibles, net						84,049						62,702
Goodwill						510,563						394,289
Other assets						99,873						65,806
Total assets						$	7,598,520					$	6,737,879
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities						$	473,856					$	440,810
Deferred revenue						26,204						26,117
Income taxes payable						4,740						4,374
Current portion of operating and finance lease liabilities						21,223						21,468
Total current liabilities						526,023						492,769
Deferred income taxes						94,140						89,492
Income taxes payable						71,314						69,193
Operating and finance lease liabilities, net of current portion						93,876						88,082
Long-term debt and other liabilities						453						10,903
Total liabilities						785,806						750,439
Commitments and contingencies
Redeemable non-controlling interest						25,114						—
Stockholders' equity:
Preferred stock						—						—
Common stock						96						96
Additional paid-in capital						1,087,345						938,910
Accumulated other comprehensive loss						(145,279)						(141,006)
Retained earnings						5,845,438						5,189,440
Total stockholders' equity						6,787,600						5,987,440
Total liabilities, redeemable noncontrolling interests and stockholders’ equity						$	7,598,520					$	6,737,879

(Unaudited)

						Six Months Ended January 31,
						2024						2023
Cash flows from operating activities:
Net income						$	658,059					$	539,525
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost						88,485						78,094
Allowance for credit loss						3,702						2,133
Equity in (earnings) losses of unconsolidated affiliates						(5,402)						4,030
Stock-based compensation						17,676						20,323
Gain on sale of property and equipment						(971)						(748)
Deferred income taxes						(2,103)						(3,309)
Changes in operating assets and liabilities:
Accounts receivable						(169,508)						(186,559)
Vehicle pooling costs						(14,387)						(21,268)
Inventories						(2,994)						8,001
Prepaid expenses, other current and non-current assets						(35,040)						(29,176)
Operating lease right-of-use assets and lease liabilities						865						414
Accounts payable, accrued liabilities and other liabilities						6,556						27,619
Deferred revenue						(13)						3,709
Income taxes receivable						(10,463)						49,430
Income taxes payable						2,577						7,615
Net cash provided by operating activities						537,039						499,833
Cash flows from investing activities:
Purchases of property and equipment						(285,289)						(256,719)
Cash acquired in connection with acquisition						17,662						—
Proceeds from sale of property and equipment						2,069						16,343
Investment in held to maturity securities						(1,411,122)						—
Proceeds from the sale of held to maturity securities						1,430,000						—
Investment in unconsolidated affiliate						(1,000)						(1,993)
Net cash used in investing activities						(247,680)						(242,369)
Cash flows from financing activities:
Proceeds from the exercise of stock options						13,482						10,815
Proceeds from the issuance of Employee Stock Purchase Plan shares						5,961						5,363
Payments for employee stock-based tax withholdings						(2,164)						(831)
Principal payments on revolver facility						(10,820)						—
Payments of finance lease obligations						(11)						(13)
Net cash provided by financing activities						6,448						15,334
Effect of foreign currency translation						3,746						3,918
Net increase in cash, cash equivalents, and restricted cash						299,553						276,716
Cash, cash equivalents, and restricted cash at beginning of period						957,395						1,384,236
Cash, cash equivalents, and restricted cash at end of period						$	1,256,948					$	1,660,952
Supplemental disclosure of cash flow information:
Interest paid						$	2,036					$	706
Income taxes paid, net of refunds						$	188,480					$	98,324