Copart, Inc. (NASDAQ:CPRT) Q2 2020 Earnings Conference Call - Final Transcript
Feb 20, 2020 • 11:00 am ET
Good day, everyone, and welcome to the Copart, Inc. Second Quarter Fiscal 2020 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, Inc. Please go ahead, sir.
A. Jayson Adair
Thank you, Samantha. Good morning, everyone, and it's a pleasure to welcome you all to the second quarter call. I'm going to turn it over to Jeff Liaw, our President, for safe Harbor, and then we'll give you I'll give you a quick update on the company, and he will give you an update on financial performance.
So with that, Jeff?
Thanks, Jay. During today's call, we'll discuss certain non-GAAP measures, which include adjustments to reverse the effect of certain discrete income tax items, disposal of nonoperating assets, foreign currency-related gains, 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 these non-GAAP measures, together with our corresponding GAAP measures, are relevant in assessing our business trends and performance. We analyze our results on both GAAP and non-GAAP basis. In addition, this call may contain forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied by our statements. We do not undertake to update any forward-looking statements. 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.
A. Jayson Adair
Thank you, Jeff. For starters, I'd like to state that we have never been better prepared for the future. When we think about capacity, we think about it globally. And whether it's in Europe or the U.S., we have more capacity today than we have ever had. This is an effort that has been ongoing for the last five years to build out a network of locations that are closer to the car and then have more room, so that we can continue to handle vehicles that come in due to continued total loss rates, again, due to technology in cars and due to market share gains that we have seen over the last five years. We expect that both those trends will continue and I'm happy to say we have the capacity to handle that. When it comes to catastrophes, whether they be small catastrophes or super storm events, there is no match for the way that Copart handles a CAT. Our preparedness has never been better through equipment that we utilize in the field, through locations where we have large facilities that can store 20,000, 30,000, 40,000 vehicles in a super storm event, through the process we've developed over the last five