CPRT - Earnings call transcript Q1 2018

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Operator

Good day, everyone, and welcome to the Copart, Incorporated First Quarter Fiscal 2018 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.

Jay Adair

Chantel. you, Thank and conference everyone, the quarter first Good for welcome XXXX. release call earnings morning, to With the Copart. Will Franklin, me CFO; Executive Liaw, in Vice room today President for Jeff is and to With will you color it and and that, commentary up Franklin, who over Will we'll turn over some to I then then will Jeff it for give Liaw, open questions.

introduce So it's my Jeff Liaw. pleasure to

Jeff Liaw

with I'll start the Jay. Safe Thanks, Harbor.

directly adjustments diluted to certain non-GAAP the measures, under these non-GAAP on reconciliation relevant measures share our in During which and currency call, accounting We the corresponding trends measures, together results per these above. release includes assets, certain on analyze GAAP and bases foreign comparable losses, we'll financial discuss financial Relations performance. of GAAP Investor foreign described to link income today's presentation measures the and provided tax and of non-GAAP measures believe non-GAAP limitations the for business related We and impairment assessing reverse payroll credit both our Copart's most long-lived net effect to including our our option gains of stock benefits, issued yesterday. We've income press related tax with GAAP non-GAAP factors income in of exercises. website is

actual are call by differ contain to implied which risks and this to comments. subject meaning projected could results laws forward-looking those may securities substantial cause addition, uncertainties of statements In statements within materially federal the our or and from that

reports forward-looking made behalf. that management's in update our could review of not SEC. complete our more that on to discussion our filed from business, statements analysis any We the the discussion time to do a and be For with undertake portions may time affect related periodic risks please these

the sales, in to and another first first gross Copart enjoyed revenue, -- income. quarter; unit record turning we profit Now quarter operating

million the for the strength global currency we in see beneficial June year-over-year by event factors XXXX. in last here are due on underlying year, operations, the slightly lapping revenue press to pound XX% first primarily can in of quarter. after Brexit release, foreign you year-over-year $X.X grew British The As of the effect relative

grew color front; effect revenue recognize A services. of revenue towing Hurricane on guidelines, XX.X%. certain we for by this we little recognition and under provide, cleanup Harvey, example, Excluding revenue for flood current pre-auction services including, the do

We growth, territory last wins, from growth unit As a booked new sales result, for well U.S. enjoyed market by unit customer for If the growth sold we and exclude events U.S. some this we growth periods, XX%, as growth sales year-over-year. catastrophic of driven not XX.X% auctions. X%. through the was U.S. primarily international cars and XX% revenue yet with by of acquisitions. of our and year global grew year, catastrophic wins, first quarter, as effects unit events both of

unit at X.X%. grew U.S. acquisitions, Excluding sales

Turning facilities. to these inventory inventory; this inventory Copart cars Global the is grew XX.X%. non-GAAP again are measure, by in literally the

the approximately have both inventory period, than growth for the less for CAT Excluding of inventory to inventory with would X% been periods, attributable acquisitions. growth X%

Our year-over-year service grew million XX.X%. $XX or revenue

arrangements. revenue car from growth continuing purchased in as we've quarters seen million or million -- to trend migrated the Our XX.X%, you've of principal $X recent agency $X.X business

for first mix our first of driver Our to margin profit gross few expound gross our this upon I'll In less gross to XX.X% profit insurance also grew selling margins which almost prices start $XXX.X experienced we is along U.S., in newer XX.X%, from factors. a increased totaled. an of which cars cars with increase from to of $XXX.X gross being note; are we're in favorable cars carrier-sourced But that selling an average totaled, combination offsetting seeing cars. a the a we the in million further million a call. severely increased with in the to damaged selling being average will decrease XX% due of is factors, for year-over-year due prices, observing Will largely things prices of and

auctions, growth excess year-over-year, growth, activity bids despite bidders we're more unit we in our substantial seeing For bidding listing. and seeing we that meaning unit heightened more car per have of are

pretax catastrophic flood The we more mix strong for are us substantial as reasonably with was to year-over-year. flood because are effect The We such for scrap what environment, travel Harvey period, unfavorable our and incurred appears six of such of of environment, sound quarter costs X% in expenses net expenses as an services, cleanup events, And gross of of well year-over-year types course, $XX period, period, period as incurred up discussion up incurred incurred sub-haul expenses consecutive and towards first, period benefiting cleanup of the we margin we In rent, for ongoing Manheim the of related price travel. from prior shift our the fronts. the this Hurricane both including personnel record expenses million. our our also two almost experiencing this people on rents as Per and period will a approximately we catastrophic $XX majority temporary be expenses. profit expenses In future of is a approximately rate revenue, used is we loss. catastrophic unit-related excesses index in expenses, months. in including XX% facilities, costs, gross and million this and sub-haul driver car lastly, the

our net loss Over the serve Harvey, we Hurricane full lifetime incur of to expect customers. a to

administrative and This from a lapping payroll from ex-D&A. the stock largely Turning $X.X million in year in year, ago options executive with we taxes is this last connection million result exercises. to to million $XX of $XX.X year certain were down general expenses;

which increased $X organic. by and to G&A attributable change, approximately million, balanced of this acquisitions the Excluding half is

was payroll for year, incurred GAAP simply income Our income to If grew $XXX.X last million the operating expenses from operating XX%. we XX%. $XXX.X or normalize million up

so this million; and normalized $XX losses event grew payroll also our by As year-over-year. excluding of XX% operating quarter for expenses, some net income this noted previously, catastrophic

million from land, $X.X on $XX.X cash adjusting from largely debt acquired for non-GAAP ago P&L; for we the $X.X our $X million $XX.X ASU years After our XXXX-XX a is to income, One assets, interest a $XXX.X vehicles. increase -- from noting; $XX.X had combination grew split, price of a $XX.X certain certain flow, we diluted storage share increase and million a growth which this in the majority I'll earnings. loss adoption it Will. was booked disposal early to the almost excludes when treatment higher of flow This net net a the note due bottom benefit a stock because case, increased as option quarter based real net effect stock this funded to slightly of we to over Our year-over-year factors, a a we line year Operating non-operating we share. million including Last higher to a we and the quarter purchased improvements. per of In attributable earnings market income, $XXX.X on lower fully on tax is tidbit the balance. million, the note XX exercises. capacity demolished up here GAAP excludes also with cash expense cash of down for million for estate, of acquire non-GAAP count capacity regarding of million, better certain last due allocate stock that tax XX%. This to and of on million of for buildings buildings worth compared price. to to of use million XX% is on non-GAAP to values turn The ago

to XX% for theme quarter of you've about land and that, which Franklin. I'll turn the our $XX.X our serve With it XXXX our customers. us in approximately program for prior expenditures heard is EVP, the development, approximately capital grow to Our to Will calls, talk million were continuing capacity

William Franklin

you, Jeff. Thank

quarter. performance Let comments, some color what's few strong our as as some on delivered the another well industry. me with quarter on the color add going for Copart a on provide

and by million, grew worldwide $XX.X we and quarter, million revenue our This respectively. EBIT $XX.X

of impact in revenue was the in million NPA insurance respectively. the been XX.X% volume impact our unit growth North organic Harvey the would been X.X% up non-Harvey business In have Harvey, acquisition. have growth million, was $XX.X would the rate our America, in EBIT growth $XX.X $XX.X growth, recent XX.X%. respectively. And was EBIT excluding and or America, In North our the Hurricane and and by market continued our Excluding non-insurance wins XX.X%, driven revenue of revenue and million growth car and and and market,

the to and the grow. of its overall growth car of salvage for fiscal car market accident quarters We to been X.X%. frequency services, park, continues experience growth quarter the avoidance the last continue to growth accident [ph] independent And was the throughout quarterly claims in propagation average technology number despite in reported, solution the According last XX the introduction the in has paid X.X%.

suggest We quarterly of the an totaled However, in used America, average fiscal XX% beginning terms even is which in since or that an see at loss insurance either values. over a It rather that is frequency near increasing the of percentage our North note to at than increase involved loss has absolute grown a important of time grown in the In rate restored. frequency in to frequency in the in has car impactful an frequency. total abatement quarters incurred total the loss more loss claims last in increase rate X.X%. has or total XXXX. is than the frequency environment the frequency in the the growth is of of seven average plane volume repaired in Total our an claim unit future growth nothing car

see almost higher our with charity was and include give a brokers. Revenue car independent and independent transaction. auction the and from the municipalities, and who repossession basis Overall grew higher and We pricing was volume beneficial was and higher NPA Harvey, charities, approximately cars. companies XX%. higher our added to dealer are equipment we shorter and volume a on growth a rental NPA off-lease increased which excluding change car the saw number decrease meaningful per up revenue motorcycles we a per the in quarter-over vehicles of impact sold revenue increase X.X% in saw a mix And to us to our dealers These used from a quarter-over franchise at up suppliers. ASP cars as volume profitability time. typically also of our dealers, by carry basis, in non-insurance significant franchise of yielding cars due mix continue vehicles, the On suppliers we primarily ASPs, cycle X%. These from North finance ASPs higher in America in excluding non-insurance in bearing dealers cars In drive growth and XX%.

We being are be what we damaged car severely companies. totaled also by seeing insurance to believe a less the

over an saw increased marketing efforts utilized for higher included, having quarter and our Total time to as buyers ASPs. to to from of for were year. last reflect We're Albania, from sellers we on sold the pricing buyers year from increase of the the same our same from than operations. the XX% products value XX.X% international bids the our North certain sellers of our adjusted we and to the buyers America, Finally, bids the Gibraltar. international the In impact in it's first benefit XX.X% seeing Turkmenistan land more and also quarter last value revenue accurately to international our in

as Turning to to [ph], to margin X.X% profitable programs. focus the the eliminate and marginal from saw more gross less markets. grew in expressed on in decision part grew Nevertheless, our we units profitable GVP resulting revenue decline X.X%, by in sold, continue by we U.K.;

hold through our U.S. for exceeding to the are network vehicles the significantly high exceed existing the Copart participation of major same continue our are subject the We Germany buyer to for days, of contingency the achieved the which auctions and our in expectation Germany; to suppliers convention Germany we growth Key progress bidder in metrics see seller and the rental biweekly achieved unique per board car in expansion withdraw number on which period in as bidders three higher two for insurance participants re-marketing companies. and a meaningful listing facilities. Returns placed Auction is period a two of auction XX-day may through auctions is of number those our is offer. those in than

the addition [ph] located sole and Northern purchased new operational Hanover, the facility near process of In Berlin near in we or have Leipzig. to which Germany, one other near developing the facilities is two in

at operations phasing-in locations to six expect We the these begin within months.

progress the on areas contribution We the Brazil, continue two up in facilities southern America our end remained open outside and an operations EBIT. At up North in other seeing meaningful where of Nevertheless, western least at immaterial We're XXX%. and one overall three U.K. North revenue to of also the while quarter, of was approximately American was the and basis, both country. the Germany, our was quarter, XX% EBIT efforts in up volume in the for profitable and our XX%. revenue in

growth. with North our car CATs, the quarter same G&A was its process more to Total Excluding expense Inventory a North remain $XX million relatively abnormal Harvey, associated We the with inventory with controlling America associated excluding year. expense with each of included leverage America quarter $X.X relatively flat. costs the focused cost limiting million to consolidated and than outside operating our was the our of remained up Hurricane and X%. consistent operations. G&A average basis pleased On remained last G&A for are additional NPA by efforts gain expense, we on and

very unit impactful extreme and volume weather the prior It the Excluding events, as events. yards. experienced number NPA XXXX, three industry remained number to should occurring consistent cost, noted cited CCC, extreme are additional the in be insurance more XXX by quarters increases XXX. with that despite both are weather XXXX, of G&A In volumes operations. In and and frequently the was our that

on was behalf events period customers our insurance XXX. in our average increasingly important offering. During them service becoming to are the per ability an our the address ending number XX-year of part of and CATs XXXX, year of

Our our need land. insurance growth providing CAT, the business our insurance continuing a to more the capacity the is growth market for goal in our landing to immediate with customers driving during in non-insurance along and organic

new XX added During we acres XX we locations. yards opened In capacity. almost expanded existing the XXX last of we fiscal and total, year,

throughout Our continued the year. expansion quarter into activities this will and continue

yards, new During Rhode we and quarter, Island opened the one Texas. Exeter, in Andrews, two one in

In addition, acres added approximately subplot opened total, one of we and we expanded seven locations existing In [ph]. new capacity. XXX

yards the during Q&A will back Houston, With CAT could new Jersey this and we the remainder turn and to year. the another expansions Carolina, concludes That mega on of you including construction quarter. the New my North acres already fiscal new yards phase, over the Alabama, the in in call Chantel, comments add the X,XXX for session.

Jay Adair

Chantel?

Operator

question from first Labick, [Operator Securities. Instructions] Bob Our CJS will come

Robert Labick

going the looking the Powersports. National think since did how are had Wanted your you've the part or now learn about additional expectations? of opportunities? What fold? to you there NPA, on should start business? radar in with you adjacent it versus How the at Are growth is And that we it any

Jeff Liaw

Thanks, Bob.

question particularly to forward-looking to discussion, speculate your and I otherwise as and is be you expectations. wouldn't program. performed you it's activity. about to the you So the would that grow serve customers recent part the That prior well, the our as was completed -- and marketplace we thesis M&A know not we CrashedToys think is the a the National then us of se part strategically very family our positioned much the room our very And this there. was relevant help any no, with surprises believing, no that so performing well, also it other, it per Powersport as know in acquisition But not to both has us team a well Copart systemic intact; on of it think our ultimately on June that of focus attractive existing given year, according to remains excited Company well. We ahead with it an I company acquired recall powersports as from business excellent arena investment as stand-alone in it may

Robert Labick

Got it.

Okay, great. And the Germany. then congratulations on in progress

little what should hurricane? the think of behind that drivers there, Can of of was talk so the much positive really other up many prices I interesting shift? just how my insurance is a a cars perhaps being because result as about How bit call, answered the you questions think newer used other on on totaled? we which cars. being car I'll temporary You to, shift the much how is structural pricing news And shift about the U.S. of business,

Jay Adair

I event. think onetime a we're not that's what is seeing

and seeing driven the what's year predicted The XX% increase about costs repair factors. I exotic repair industry, by MSOs. seeing a complexities the We're also in is handled we're happening extensively. by we're trend, it's consolidation of think number think in talked the the the XXXX, all of of by repairs be cars, where different metals. I we seeing a very this And

internally an to salvage All of frequency in in complex more and increase are to which leading higher these the leading a newer costs, repair are cars.

Operator

will Craig Baird. Our from next come Kennison, question

Craig Kennison

ask of Wanted about to Harvey, first all.

vehicles. And you you assigned wondering, XX,XXX to think of have the how how those I be many remain last said you were in call, sold? sold? I'm actually many

Jeff Liaw

expenses So this the and some again said previously. majority XX,XXX the this the of associated of the up And it still storage, stragglers, in activity you quarter to from or to in these assignment. the the pickup completed process event, and just beginning place sales processing the why point in see loss occurs Jeff pickups this the that's thereabouts. with And And quarter. large, The of what by out of recovery the quarter. cars, units right generated the the approximately at very the

expect loss. the choppiness an of some of for overall next So we our you quarters. the the see But on storm a to basis, couple on impact in financial results have

Craig Kennison

all include take and beyond the abnormal process helpful up it. process cars a of maybe Will, does with the would following it million just cost normally to $XX the And vehicle? what frame Yes, cost reported as or cost you on that the of above that's that, Harvey, very associated to

William Franklin

and the the costs -- that's That's towing labor extra costs extra abnormal is due in primarily extra just costs. primarily storage, and to the

Craig Kennison

looked it? then margin based how mean, how And sustainable trend? gears, I I driving mean, math. our to be What your you really profitability? on EBIT incremental that the on And shifting that a be again, in the up is is quarter is XXX fantastic. margin appear incremental almost -- basis sustainable points basis to core do what

Jeff Liaw

I'd We're normalize know, There's you not the size of quarter, distorting CAT, we Craig. you. as the providing forward-looking which help obviously, particularly nothing say, meaning the guidance, for

in benefit, leverage. facilities So some our you're and some leveraging operating cases, of unit existing the seeing growth infrastructure. Strong

growing course, profit near and rate the revenue of G&A not that that's seeing, anywhere our You're gross is.

it's G&A leverage the course, about. I think you phenomenon So heard me both on largely operating selling of the And level. talk then, Will price and

Operator

Research. next Northcoast will come Our question Healy, John from

John Healy

I a being you data or years mix to than about terms bit X-year the any a maybe car today to of Is I about yards to older a Is age way old follow-up wanted and cars know guys younger. there years or seeing less you're X to cars through way of think of in lot think X vehicles? old X about population? of than come that of and at by made maybe you're there the that your what X old. the X on comment X kind to years seeing to old the little X sometimes looks bucketing kind industry that

Jeff Liaw

just John, the what to described. don't logic I provide data think we you further is publicly, any intend but

etcetera, year. quarter that's the X mix that and histogram as So cars yielded first are quarter last many we which X, X seeing to basis, in what the cars is XX, this compared a commentary to how to we you newer first the year heard on of it to X a look are of X, today, at

William Franklin

to car. hope we I cars look add ACV you estimated the that repair being at and we're is a we lower another at, another of value the think the there's -- trend And what comment towed ratio. a that's repair-to-ACV that seeing might of metric

John Healy

I associated then wanted Okay. about Harvey event. the And costs with to ask

and line you much How much would absolutely variable should item would stay in XQ sold? the kind expense processing of of in XQ think costs the do processing say how do see we you what vehicles think? of until On of those kind side, that are I

Jeff Liaw

you not to then front, us costs prepared specific chunk a you for good are of as towing think be the the that, facilities, also expense the expenses to costs, including I largely that for on ongoing quarter. there including personnel. and period rent them, from John, temporary costs, the cleanup. more except say heard Will, in call might That the incurred flood are first Those processing as said,

are the have So we extra corresponding managing comes and from there a as having ground still deployed travel who in well expenses lot on personnel we've that folks as of extra volume the person got there. the

will expenses continue those in subsequent So quarters.

Operator

Our Bret next from question come Jefferies. will Jordan,

Bret Jordan

is on product XX-odd to [indiscernible] you What seeing seems is it clear? the quickly? -- Is Harvey? the thousand time you've that And title pretty transfer are it moving like cars left got

Jay Adair

what XX,XXX of And No, clear. And to we've doing with expect process left But seen we operations. on more our we that it's have consistent times we have that everything we But state the slowdown. end. the can slowdown. capacity normal yes, recently, would don't just We're to were seen to initially, a we the titles. saw these

Bret Jordan

okay. you you first said and had on the the said Okay, last thought XX,XXX conference XX,XXX call, on done quarter quarter. assignments you've you I

than fewer there XX,XXX are So remaining?

Jay Adair

now, is last in more cars Brett, in what more. got already No, sold we're with the November sold we've we've right quarter. dealing But we than

we're majority be the things two So such trying sold to at questions. when vehicles say Q. to math will in a of The from I rate. the do listening majority The this fast selling the

QX, So vehicles. unload we're QX we're and the a selling We'll going of QX. majority in majority in those be remainder quarter but the QX, the now, to of in

expense? The second incurred thing would is $XX it, we've million I Jeff, say was what of because

Jeff Liaw

$XX revenues loss. in expense of to million million net $XX

Jay Adair

in will But going QX to profitable benefit earlier. last explained and Will we million meaning overall, net to going it going They're as will be they're QX. benefit forward, benefit quarter, lose, the $XX QX.

Bret Jordan

insurance you and Okay, there great. wins. think And mentioned meaningful anything the account I side? your remarks, a in on shifting times Is prepared couple

Jeff Liaw

such We're But always in specifically. our always good that. competitive service prove doing in offerings to I job a market. competing and products, for also identify trying would we're we we're our business think and a doing that Nothing

Bret Jordan

balance Okay, get to X,XXX possible we great. a to or from where of of growing real looking that -- acres to 'XX. that estate -- the 'XX standpoint Is real estate fiscal And get us then you would need in you beyond is are that level? this said sort

Jeff Liaw

If to keep No. have in seeing addition salvage -- the the acres that, we've continue or employed trends a pace. we're new in to approach large-CAT land. that insurance to that market, CATs bank we'd And to to land need the to where also is we just want And capacity a adding to be our able to XX% means have areas. high-risk year XXX for growth XXX in

the don't see for the next of So abating for need years. couple I land

Operator

next will from Stephens come question Bienvenu, Ben Inc. Our

Benjamin Bienvenu

to on G&A. Wanted start

So Jeff, driver think was step-up out we in you lapping called payroll G&A And down a that big I year-over-year. from over was a auctions. actually were taxes

need there percentage basis Going as that And get revenue certain leverage leverage? to a forward, of that expect dollar is you you grow sales? on guys a it but a to growth still

Jeff Liaw

To answer that to also grow. grow increase to expect and and products land don't your don't think it as question, yes, there's way revenue. I of capacity. as And fast to volume with avoid our the But and we any it technology we expect

leverageable. think that's we So [ph] still

Benjamin Bienvenu

are Are improvement these driving you is that Or lot there what's Okay. driving Can in margin? any doing? guys things of you efficiencies? talk are call-outs about that it smaller big the maybe a

Jeff Liaw

our question, leverage. an volume think For by unit margins driven I are earlier

as to that of fixed units will our so through grows additional facility, been over The benefits selling speak. well. the selling obviously strong. prices of have time vehicles So

grows commentary question you which your of anywhere is the growth as at of on typically point experiencing And the we're the heard to at not rates revenue that You raised close kind today then here, well. I which outset G&A, today. lastly, think rates but

Benjamin Bienvenu

commented Okay. over market I And is to representative of the guys German moving have you Europe; really EU. that the know then

term? about in expand countries Germany, the or the are but specific guys to progress near into in are You there intermediate looking you European any guys talked

Jay Adair

Spain, we the in in we're currently Well, think Spain. we opportunity have and same

We existing of have Barcelona into Magala. areas currently in looking one expanding and at Madrid, facility and we're the

next our So I that be probably that be we think the focusing would area efforts.

Operator

Paige, Our will Gabelli. next from come question Matthew

Matthew Paige

I question to you car for as portion the me Just frequency totaling today. do have their electric how vehicles but any one a color very on traditional park, of of counterparts? they compares to claim know or small make

Jeff Liaw

safety on front. to loss come to with could perimeter, cameras and to more repair. costs further is conclusion size made difficult most They also are I your sample those The complex so it's often But that that right are additional of in repair technologies higher. rates here too or or so lead small, are panels remains -- of the definitive substrates, escalate combination the it's which again, respects, is think on also your the which electric factors premise one, the often -- early it's more being should question but total early out too these -- a tell. to render cables

Operator

Our from Research. question Instructions] come will next [Operator Prestopino, Barrington Gary

Gary Prestopino

that some off assigned. of you've us small lift you are price the you've at that been there a you getting because couple of -- you're these -- give cars lot amount me Or they're freshwater here. been questions hurricanes Can to in doesn't maybe just idea But a to relative can auctioned XX,XXX Are saltwater, where give about matter know only saltwater a cars freshwater damaged? versus of really you you relative cars other damage? seeing all? what Harvey I Couple said because Hurricane in

Jay Adair

nature goes I beyond damage. the of Gary. the are, think We it And

cars and the you getting environment. I the think better than think might the I by interest are and we're in areas repair that monstrous completely shops companies overwhelmed a different those volume in

are and cars higher on ASPs Harvey the the in So overall averages. in CATs company than other

Gary Prestopino

And you do cycle or did can then express out this that quarter helpful. for revenues that's added us? call in guys what Okay, you

Jeff Liaw

that color excluding X.X%, NPA. the the unit provided U.S. just been have would We didn't. We sales

Gary Prestopino

right. all Okay,

amount Couple So then on higher as the you're total dealer the of growth vehicles, cars -- percentage questions has that's not independent lastly, shift here. believe And of of non-insurance side. seeing that non-insurance? What kind particularly the hovered strong and that shift any it's that fine. you XX%. is of Are a a calling franchise on I mentioned out, in now there you you're been around seeing are of...

Jay Adair

Yes. Non-insurance by been cars segments there's been have that independent cars growing well. driven but And other is course. as that's franchise excluding growing as Harvey, dealerships percentage, a of and from primarily

Gary Prestopino

if mean, to is the XX%, has shift been now something shift you the don't call been mean, XX% I I out? that XX%, has just was -- or it

Jay Adair

talked We've about XX% Something quarter. we out. which haven't was called growth market the last itself, in that

Gary Prestopino

then vehicles, in terms your average maybe are car an they trade-ins, vehicle... that do an still selling $X,XXX that's basis, these you average Getting looking cumulative lifting they, of to Or price? going especially are -- auction? to younger at are your okay. XX-year-old get on XX the at Right, ones And non-insurance the overall

Jay Adair

of was case. It the Six quarters our in to our cars longer lift actually much charity. ago, where from that's no average detrimental ASPs. non-insurance But came

expanded the So approach efforts the that dealerships. in we've to we've same franchise coming some of we've our At from made adjustment time, the and to the significantly cars our charities, areas number reduced market. and

We have new programs in place.

a that's uplift these than returns the probably on Those types resources higher But ASPs. ASP overall have volume. leading we of focused we're And We all have past to have and an more getting new more cars. cars importantly, been on our in it. create to higher

Operator

Morgan. question next will Brinkman, Ryan come from JP Our

Samik Chatterjee

pricing. your first for to Brian want on is outlook just on Samik I Brinkman. This get

go enough Do momentum is the the more I you going the of think strong quarter. comes the the depressing here in volumes sort -- you'll or it of But offset to strong given vehicles ASPs pressure when forward through you processing mix Or had that? a hurricanes pricing of a on quarters. bit processing? be to have just this having it just do see coming You

Jeff Liaw

effect hurricane supply offset mix The more factors of described. would the than the you just

So the typical car our standard for more insurance-sourced hurricane sales than vehicle.

Samik Chatterjee

in roughly Then is but look closest the visibility if rate it. of And gone you the of you I driving I you nature abnormal that any headwinds closest difference cost got know the wondering million -- when and have there cost. $XX of you compare between when thoughts I exact I your competitor have at to any quarter, hurricanes? and what's you've Okay, had of was had competitor, cars, cars. in the million to that the sort cost big had $X the their you they don't

Jeff Liaw

have, for so have as we provide for We that me time for how million course, any us the connection quarter took events. of does, same comment I a $XX it service to catastrophic that doesn't noted, that As visibility catastrophic to don't theirs account course, look, precisely you the in know events. at internal is our on they end of to to customers may our these with just Hard be excellent theirs. what that driver.

a of Let storage at insurance. $XX I I capacity of me those expectations generate of cost actually be I We one excess acres situations. obtained area, cost expensive think think, the which our efforts we and extra exceeded, what just And in about otherwise think an of XXX types million. would of

Operator

questions further no in have we queue. time, the this At

Jay Adair

first the Happy and attending for everyone, we on you, Thank year. next Thanksgiving, to Chantel. forward quarter for you, call QX Thank look reporting Copart.

Operator

Thank you concluded. has at Ladies time, much. now this gentlemen, and conference this very

and disconnect a You lines, of rest have great the Thank phone may you. your week.

Copart (CPRT) 22 Nov 172018 Q1 Earnings call transcript