Copart, Inc. Fourth Quarter Fiscal 2023 Earnings Call Summary

Participants: Jeffrey Liaw, Co-CEO of Copart, Inc.; Leah C. Stearns, CFO of Copart, Inc.; Bret David Jordan, MD & Equity Analyst at Jefferies LLC, Research Division; Craig R. Kennison, Director of Research Operations and Senior Research Analyst at Robert W. Baird & Co. Incorporated, Research Division; Daniel Robert Imbro, MD & Research Analyst at Stephens Inc., Research Division; Robert James Labick, President of CJS Securities, Inc.; Ryan Joseph Brinkman, Senior Equity Research Analyst at JPMorgan Chase & Co, Research Division.

Copart, Inc. held their Fourth Quarter Fiscal 2023 Earnings Call to discuss their financial results and business outlook. The company talked about certain non-GAAP financial measures and provided a reconciliation of these measures to GAAP measures. They also made forward-looking statements, acknowledging the risks and uncertainties associated with their business.

Co-CEO Jeffrey Liaw expressed his satisfaction with the company’s results for the fourth quarter and the fiscal year. He highlighted their focus on sustainability, including environmental sustainability, financial sustainability, operational sustainability, and global socioeconomic sustainability.

Liaw then discussed Copart’s proactive role in assisting communities in recovering from catastrophic weather events. With an above-normal hurricane season forecasted for 2023, Copart recognizes the need to be prepared. They have already experienced 12 named storms this year, and they understand the potential impact on their insurance clients and their policyholders. Copart has invested in resources and infrastructure to optimize their readiness for severe weather events.

Liaw also touched on the trends in the insurance and noninsurance businesses. Total loss frequency has rebounded to 18.8% in the second calendar quarter of 2023, with a slight reduction from the previous quarter due to seasonality. However, Copart expects total loss frequency to recover and surpass pre-COVID levels, as they anticipate stabilization or decrease in vehicle prices compared to repair costs.

The call provided insights into Copart’s financial performance, their commitment to sustainability, and their efforts in assisting communities during weather-related disasters.