Copart, Inc. (NASDAQ:CPRT) Q3 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 11:00 am ET

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Copart, Inc. (NASDAQ:CPRT) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Copart Conference Call. At this time, I would like to turn the conference over to Jeff Liaw, President of Copart. Please go ahead, sir.

Executive
Jeffrey Liaw

Thank you, Dan. I'll start today's call with the Safe Harbor, before turning it over to Jay for opening remarks.

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 non-operating assets, 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 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, our comments today include forward-looking statements within the meaning of applicable securities laws, including forward-looking statements concerning management's current views with respect to trends and uncertainties, including with respect to the COVID-19 pandemic. These forward-looking statements involve risks and uncertainties.

The current worldwide pandemic could adversely affect our financial results in future periods based on declines in accident volume and other pandemic-related factors. And our business and operating results are generally subject to additional uncertainties such as dependence on our major vehicles, sellers, business [Technical Issues] relating to our international expansion strategies, factors affecting average selling prices for auction vehicles, any additional risks identified under the caption Risk Factors in our Annual Report on Form 10-K for the years ended July 31, 2019 and each of our subsequent quarterly reports on our Form 10-Q.

Any forward-looking statements [Technical Issues] as of today and Copart [Technical Issues] obligation to update or revise any forward-looking statements.

With that, CEO, Jay Adair.

Executive
A. Jayson Adair

Thanks, Jeff. You're breaking up just a little bit on that. So, maybe we should dial in.

Executive
Jeffrey Liaw

Yeah [Speech Overlap].

Executive
A. Jayson Adair

I'll go ahead and kick off. Yeah. Perfect. Again, welcome everyone. Thanks for coming to the third quarter call. If I were to describe Copart at the beginning of the quarter, I would say full speed ahead. We were acquiring land, developing that property, winning business, selling record units, record number of units Company-wide. And if I were to fast forward a month later to the beginning of March, the best way I could describe us would be unpredicted, but prepared.

Clearly, looking at COVID and it was all day, every day, COVID in the first week of March. By the time we got to the second week of March, I had reached out to some friends of mine that are in the service industry, people that own hair salons, people that own restaurants, and the government has not yet told anyone to, specifically, not go to work or to specifically not open up their