Copart, Inc. (NASDAQ:CPRT) Q4 2019 Earnings Conference Call - Final Transcript

Sep 05, 2019 • 11:00 am ET


Copart, Inc. (NASDAQ:CPRT) Q4 2019 Earnings Conference Call - Final Transcript


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Good day everyone and welcome to the Copart Incorporated Fourth Quarter Fiscal 2019 Earnings Call. Just a reminder, today's conference is being recorded. For opening remarks and introductions, I would like to turn the call over to Mr. Jay Adair, Chief Executive Officer of Copart Incorporated. Please go ahead, sir.

A. Jayson Adair

Thank you, Jonathan. Good morning everyone and welcome to the fourth quarter earnings call for Copart. Before I start, I will turn it over to Jeff Liaw for opening remarks and then I'll give you some commentary, turn it back to Jeff for an update and then we'll open it up for Q&A. With that let me turn over to Jeff.

Jeffrey Liaw

Perfect. Thanks, Jay. I'll start with our Safe Harbor. During today's call, we'll discuss certain non-GAAP measures, including non-GAAP net income per diluted common share, which includes adjustments to reverse the effect of the impact of income taxes on the deemed repatriation of foreign earnings, net of deferred tax charges, certain discrete income tax items, disposals of non-operating assets, impairment of long-lived assets, acquisition related fees and integration charges, reserves 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. We've provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures on our website under the Investor Relations link and in our press release issued yesterday.

We believe the presentation of these non-GAAP measures together with our corresponding GAAP measures is relevant in assessing Copart's business trends and financial performance. We analyze our results on both the GAAP and non-GAAP basis described above. In addition, this call contains forward-looking statements within the meaning of federal securities laws, which are subject to substantial risks and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. We do not undertake to update any forward-looking statements that may be made from time-to-time on our behalf. For a more complete discussion of the risks that could affect our business, please review the management's discussion and analysis portions in our related periodic reports filed with the SEC.

Now, I'll turn our attention to the fourth quarter of fiscal '19 for Copart. We are pleased with our results in booking a record fourth quarter in revenue, gross profit and operating income. Our global worldwide revenue grew 20.8% year-over-year for the fourth quarter despite unfavorable currency effects of $3.9 million or thereabouts from foreign operations, primarily due to strength in the US dollar versus the pound. Our US revenue grew at 21%, international revenue grew at 20%. Global service revenue and purchased car revenue were similar for the quarter with global service revenue growing at 20.1% and purchased car revenue growing at 25.4%, slightly outpacing service revenue.

On unit sales, we grew worldwide 7.1% year-over-year with US unit growth of 7.3% and international unit growth [Technical Issues] United