CPRT - Earnings call transcript Q4 2019

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Operator

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.

Jayson Adair

Jonathan. you, Thank and for everyone the quarter fourth Good welcome call Copart. earnings morning to

start, it Q&A. you Before Liaw will open for I I turn then and remarks it to we'll then an turn update for up over and I'll commentary, give for some it back Jeff opening Jeff to

With that to over turn Jeff. let me

Jeffrey Liaw

Perfect. Thanks, Harbor. Jay. I'll Safe start with our

related and of diluted to certain net charges, call, for measures, certain including of effect per we'll reverse of disposals income integration items, adjustments includes foreign income website and from currency payroll most release discuss GAAP repatriation non-GAAP these income to non-operating impact discrete the on taxes common common our in today's gains measures of reserves benefits income which long-lived equivalent link Investor our and directly financial assets, During comparable provided net share, deemed and and reconciliation measures effect sales issued fees charges, of on ASU to We've impairment press related legacy Relations for liabilities, the the the losses, under acquisition non-GAAP assets, of tax deferred accounting yesterday. shares the tax tax a earnings, on tax foreign related certain XXXX-XX. stock non-GAAP the exercises option of taxes

financial above. corresponding We these and measures analyze is We measures GAAP our non-GAAP in results believe basis relevant GAAP of Copart's on with and described presentation trends performance. the together both our assessing business non-GAAP the

results and undertake may We subject behalf. statements be our that that time-to-time and to our or from securities call of which any statements this could to are to comments. federal statements those materially uncertainties forward-looking forward-looking by contains projected meaning risks from not the differ made implied addition, on do update In cause actual within substantial laws,

related periodic of discussion the SEC. the analysis reports could our complete risks the management's filed affect more and please portions business, For review with in that a discussion our

I'll of the attention fourth turn Copart. for our quarter Now, to fiscal 'XX

our revenue, in a with and pleased in booking are operating fourth quarter record profit We results income. gross

Our primarily US quarter despite global operations, strength $X.X the worldwide unfavorable in due foreign million for currency versus of thereabouts to year-over-year or the from pound. the XX.X% revenue effects dollar fourth grew

Our XX.X%, revenue Global US growing XX%, revenue revenue at for quarter revenue car at with purchased international slightly global XX%. were revenue. service grew car at service purchased outpacing grew growing XX.X% the at revenue revenue service and and similar

international United grew both well On insurance X.X% year-over-year and States US growth [Technical unit X.X% growth with we Difficulty] is our growth customers. our non-insurance sales, customers unit worldwide driven as as of unit our by

and the a complexity more less of we while of organic favor damaged more totaling at within with these relatively as rising believe [indiscernible] Repairing relatively labor prices rising the from long-term vehicle vehicles cars attractive trends attractive with same buyers continues. is the growth rising On inflation, becoming total costs the selling repair time and minutes. becoming in insurance vehicles few is frequency loss matter world, result for

as business non-insurance well. our grow to continue also We

from or grew driven the the grew $XXX.X similar Inventory by with growth trends. growing year-over-year. for million quarter $XXX.X We course units returns and growth approximately non-insurance that I ago for Non-insurance charities, fleets, of leasing most and generally dealers represents and In sold. XX% sales franchise auction wholesalers. was volume to growing equipment include marketing, to global increase gross total US and inventory all. of described inventory million focus of and independent operational and companies, dealers, our inventory that our factors, international segments, XX.X% XX.X%, north We ones volume finance We liquidity US a non-insurance auto our X.X%. and profit XX% attribute to at increased of we moment in

ago Our vehicles. rate attributable elevated for from depreciation from partially to partially is a XX.X%, margins declined of basis attributable year This an International purchased increase also gross largely to gross slightly in from XX.X% prices to average XX.X%, to car points. lapping our selling XX.X% margin activity and increased to XXX attributable rising Germany.

turn efforts used digital all and bidders now in car The selling turn as of for fact And a the States such Used within Manheim continue mix the unit more the per liquidity This prices outcome of therefore the superior indices, customers improved bids International which VBX. Car outpace bidding the marketing as meaningfully of effectiveness Price activity bidders for auctions, damaged our prices I'll our reflection have United increasing as years, well. auction as in and to various more platform our buying trend rose business quarter. well has in for the our auction been newer selling proactive to more now reflection ASPs for our X.X% year-over-year of -- a are and Index. of as average cars. as well continuation Copart fourth international therefore a less is

of know, but with proceeds for total the relatively to cost drivers our cycles units loss repair loss total path becomes back more same growth compelling course at the rising rising, you ASPs As time, increasing unit then economically. well the as

is ex-stock to down quarter. year million administrative our to and expenditures, $XX.X $XX.X depreciation, ago general from the for million a now turn G&A I'll comp and

we almost will top growth operating we've the say believe we quarter, they grow achieve given our but time, we can experienced. generally G&A expenditures will line leverage, every continue and over to As fluctuate

longer-dated accurate view you etc., with metrics As trended inventory margins, our for to the of a G&A we data business single gross encourage rather more all quarter in changes than review lines business. trend sales unit

ago. This $X.X $XXX.X to year a part the is grew levels increase XXXX. to $XXX.X, or of this effect a Our despite comparison year-over-year. quarter again from XX% GAAP million in fourth operating the depreciation Well operating in income that reflects negative note currency of income elevated from million in

to cash was balances product up share lower expense from $X.X the interest interest year-end, share non-recurring of buybacks attributable parts was to of losses our an our to course of method largely of investment. nearly Other the at net the $X.X million year. million less expense primarily in Our from income from equity over due $X flat, million,

Then a our tax fourth tax lower US of quarter on reflection rate income a is federal XX.X% of rate. taxes,

approximately included is million our to year this which $XXX.X release. GAAP $XXX.X then net As fourth increased tax on of reconciliation, an or exercises those we've a reflected option option earnings prior non-GAAP benefit quarter our calls discussed in stock from year benefits of thereabouts, the The or as XX% million from onetime income income well onetime been in stock ago and has in XX%. from discrete as exercises items. increase

option non-GAAP and of as Our tax related well again adjusted legacy taxes, as XX% from tax for payroll [indiscernible] income increased net excess for sales liability or stock certain deductions certain growth reserves. exercises is

the before for million buyouts. XX% cash and We We books quarter turn flow, million, operating of with cash of lease to $XXX finished capex little million million Finally, to on in $XXX sheet was expansion flow in debt. back of and the the it net with capacity attributable on our I balance than Jay. of quarter generated $XXX.X $XXX.X cash and a north which more

invest to prospective current to in meet We our services. and for continue demand efforts both land, purchase develop our and to lands

I'll that, to Jay. it With back turn

Jayson Adair

out of but public. not the In Thank a decade first must I'd know it ever lot, have two XX the emotional for going the we that times Copart do I they on been being and it floor, a was in only one quarter the and felt fourth life. went since we most New is last XXXX, lot like and it were pretty XXXX ever quarter time. and the life things you, the my I time. you is Trade been know on a it up changed building, highest We in other was of bidding and for years of that the and about building, forth was incredible later quarter, pitching and in went name weeks were highest fiscal my yesterday were milestone yelling I've I March And York in I Jeff. into experiences with is it public World XX, had people the Center Copart memorable the City but the Good morning XXX. literally quarter a the wouldn't crisscrossed again. screening back this remember is ever a today, Copart investors, have screaming

at debt. We off Copart were I now how it. is set. That's paid look We public. our

at We we was that $X.XX a buy companies IPO'ed XX% day pop closed day share. memory, which based on We up to stock. in the my quite about that have a currency go and

we of one it we $XX.X ago, this was, And pretty the thing yes, of what the and it's for demand So year bought a we've in we network and $X.X million XX we up, because don't the and Company it built thing companies revenues XXXX we a that's to a we've for was copart.com really million. the sure of We Internet set bit called grew year we the remember. reserve year had as off weren't and but and thought look and with cool. I years closed closed Company. I quite operating income And

people auction. couldn't case, buyer's saw a at really in kind. with with were the brand Butterfield we things I why Internet of then bids actual had been And the live hadn't whole this the called the it raising those we, came thought there. In Internet on buyers, idea was from Copart bidding. and concept. where at really that Francisco we world, San we auction at done bids on was the And and and desk we we world. It done on, sitting that the do business contract been new auction allow and Butterfield, end phone bidding that's people the the in It car can its all from salvage the hadn't launched but It and our wrap XXXX, point a in people will hand submit in phone, focused and to and we over we these at their an in against the Copart.com. and on were first Willis seen

we've rolled has of of In our our we really has of tripled success and we XXX% We in seen of Company of was are from in those and proud to change terms to in in XXXX growth cars XXXX August it what were stock days, of wanted way March pretty and wanted the August the but of the price, innovate. live in the auction. terms done We it terms what 'XX, out to stock sold.

we physically online. bid auction but you to the now so are introducing be see submit Internet really had to at the then the car And this experience, and

tell to started it. we industry like the behind kind that images online process you XXXX, and car that there was for corners and some in there we've thought but shot first and the an So it, putting is five. and chose was of four another on was interior I'd

put we continued of vehicle experience online about and thinking images ways five customers. to our every improve for So the

of really clearly, to it's or in Bakersfield, towards smallest out and and a test out in platform digital our what and We is auction. California. it Company and going that in environment we chose does it Bakersfield sale time an in the XXXX how tested out, biweekly we it we because by and online By ahead test year, saw terms small technology pushing see was it it was and XXXX, June in the towards [ph] rolled a a of the it, and store we virtual But a were XXXX but strongest our had returns whole bidding of platform. said XX, we're

was XX the so XX we've probably auctions Company that about and ever a highest or in it far that it's location. seen So return, as year

we in technology and to continue Syracuse, site we would another to Company It also second generation world our different sight, roll the the and the And increase six returns other was hence just what business from XXXX. a bidding we name. it the XXXX to So increase New country, of they the bidding because had on would because see exact results. -- it's VBX. And completely increase knows there to virtual who lived happened and was same we they months whole York anybody experience to all side of technology, and next. the would was virtual it through chose Within way roll the saw would small Copart

we we international, do double And had chose so and Copart want double financial down. What the down after do we We decision. crisis, expanding our into on a expansions to -- the UK to going internationally. Germany the locations and and and went opened of East, up another that Canada other Spain Brazil into or eventually a we and and number Middle that

we was the dominate our buying to but million it's and down NASCAR, Channel massive where Copart followers that really Copart that television today, also and about with taken sell cars the NHRA And number a cars buying Copart Facebook, and a There from on at fixing aggressive cars, an over YouTube. cars and with channels time would them. this their stance. talk then evolve other people SPEED had X business That number into marketing [ph] We with how social marketing love they have nothing, whether Twitter, do Copart, we are first doubled and channel, bill and they and of started point and to work efforts with methods. we of ESPNX platform a on media on

go The to technology expect lane thing everything about at the part adaptive into is Mercedes-Benz, none today, of on that is a cruise, While existed the interesting buy Mercedes-Benz. you'd has started this single assist, things Kia from XXXX on those back XXXX headlights, rapid every except you rate. in was cars thing adaptive happening, can interesting

average selling, be Company more prepared years bunch starting network, last start buy back trend that type to doubled Many us in get a called but what's about ago a we and business. also of network you coming our that of for five car we expand efforts stock have on and XX all how locations demand volume American knew for going the locations. you had to a the room we none expand the standard that to where Company the to of car build kicked off in. is expansive with through doing ultimate to over the was So important XXXX. we time that that know marketing by we're of followed the operated saw saw allowed We is the the is focused This top what vehicles of America We technology. could me in and we years repurchases, program long acquiring the for down to that our technology product for our really

ASPs, And achieve if achieve you combine two, those you record volumes, you record successes. record achieve achieve --

I'm not So has about be. How in last could I happened excited the very what XX years.

I really and today couldn't I I what York the For believe first City believe it impressive. that it in that that looking incredible number, a just -- experience damn over but went was a not New could has kid just I to saw, $XX couldn't billion for $X have Company be emotional, time here -- in this and to to was a up, looked believe $XX it. to a sitting revenue really, revenue revenue incredible. at Company, it's a never been from gone million year billion year the broke and has

on That's people built what amazing. they in XX last we've a The by we that for years. They seen going best of speak have to to to the the seen Jeff the a what never seen. team kind We over I'm make first, why can't of was was about as XXXX, Copart. seen I X,XXX world next the but With to at better rest enormously are team better opportunity years Liaw, I'm led results up the excited enormously with say our the the side that and Jeff roll. we're do. in in have about Franklin enormously going Copart my in up over people President we've a but and that never I've people all I'm what that make Copart, XX X,XXX -- were we're I do my do seize at Copart the going position, the future. in in excited Will excited. years

I over new So, But our turn to to it was turn to questions. it over going I'll President. now,

for questions you'd it if open would that great. be Jonathan, with up So that

Operator

Instructions] Securities. first of from CJS Labick We'll [Operator Bob our take question

Robert Labick

Good from of Bob Labick morning CJS.

to on their then on to roles to Jeff and you congratulations Will as and Jay new to congratulations First to years XX and Copart great well.

Jayson Adair

Bob. you, Thank

Jeffrey Liaw

Thank you, Bob.

Robert Labick

for guys. Excited you

US, with do how and customers what's I this to several Jeff. mentioned one So you it could been show I just was for discuss saying wanted share -- I hoping you've for what with, What mentioned points and doing continue What I'm you've been you you gain today key selling said going differently quarters you the to are winning not quarters several share XXX% to on? in your gain? share? it start it that strong question are sure, growth in and think you've the

Jeffrey Liaw

customers about service also and drag with in calls of you in wins favor. ordinary details the well, and which from we talk unit through, well. performance want ourselves service pride of good A marketing don't as here, returns, overall think think folds. if individual Bob. volumes that economic you about we prior what the I describe it with forth, proposition generally we means, superlative you years that course is quarters, industry on first we and number of both platform, really, so experience drives in our grown fold business. equivalent events than but And A security ultimately recruitment we talk multiple many course But reasons on faster technology look is we the question, are our are I superior We, think Copart There our becomes the both that member heard self-evident pride accounts. account and you at as to offer have think in handful catastrophic drives and as multiple comment us which foremost, I in that take results, and I'll know operational a but when certainly many auction I then auction our

So depending you different those we certainly, where have and dimensions. but cycles, to different excellent deliver on results work customers etc., storm economic are on all priorities, day cycles, in night

Robert Labick

a great. in terrific And terms non-insurance? And of then could within any are Just towards have if growth, year, would this maybe had mix car results. little if on XX-year-old ASP break both a like-for-like great? a you or like the growth it, it year than you meaning it, bit. Got ASP are miles, insurance with XXX,XXX is a it's just you and the down growing did higher it the ago? side ASP getting a obviously insurance both growing, be it was I you color you've hoping ASPs on is non-insurance Is

Jeffrey Liaw

To of answer is right, and question thought the change. -- But, car there is meaning is a it not a insurance difficult because we're technically selling and no not one increases that's today a prices from vehicles. is ago what is just XX-year-old like for like your to as car describing the the same is like year of mix It like shift insurance non-insurance. drivers for also not yes XX-year-old

the So the mix as cars an car increases answer your the XX-year-old newer both of as within increasing question are insurance well. I well to world in is they think yes, as

Robert Labick

flipping you it. Great, building Got thank out about before Germany kind thoughts of Copart within think that latest style? distribution last talked the I your last country you. about getting and insurance and And companies. quickly, network hurdles to to Can we talk then market one the quarter

Jeffrey Liaw

Copart continued traditional growth Copart in service our experienced in have that model as well Certainly, strong running We've style invest we as both in listing Germany. -- the auctions to we're Germany. I think business,

to so member forth. We invest and efforts sales land in recruitment, seller continue

there. continues progress the So

[Technical I into Difficulty] the is from holds there. proposition much continue We retail, is Bob, compelling the believe very story economic got think we still where to

Robert Labick

we've all just Congratulations and discussed things on thank you. again of the

Jayson Adair

Bob. Thanks,

Jeffrey Liaw

Bob. Thanks,

Operator

from We'll of Craig Kennison question you. next take Baird. Thank our

Craig Kennison

to the those track states? And hurricane as you're taking evolved? this Good hurricane How and coast my congratulations response fronts. and has and Dorian all season. I towards in maybe Dorian that again wanted morning. for done doesn't other What but Thanks about you for moves on to up your ask questions. threatens general, Florida, preparation have prepare

Jeffrey Liaw

prior storms is in really Craig. would I we to say getting back Thanks, XXXX super XXXX. Copart Sure, opener. that, dealt but the on in with started storms experience. eye

got dedicated be and that an and amazing got dedicated Following to today, And to equipment Sandy would just cat we've cat. to dedicated Harvey. got that cat. team land We is we've

the prepared we're Eastern all So I when say that's can the we ready get and details seaboard. into just we're across

go So whether place impact going to got customers. hurricane the and our New it's to the or in whether was people, Miami York, going serve land to impact we've the the to equipment and ready

good. So we're

Craig Kennison

you. to Good, no you And exposure assuming and the thank I'm have Bahamas?

Jeffrey Liaw

none. No,

Craig Kennison

your maybe You've a Copart? could the the based of just you in sharing long-term Okay. what means spirit And that Jay, potentially thinking, that big then, shift to trends comments, talk for car fleets. on ownership that economy for next a major got about in look big think Are century? you towards the other you individuals you and out as from How looking at do quarter trend? plays Copart was and

Jayson Adair

volumes time or a with increase. or BMW practical was I that sharing in Copart time -- back The just actually on Well, could didn't I Mercedes-Benz if get bit of fact, and a it it buying a the we we because, driving I belief down go years to at that acquiring call, stock earnings on days. And back calls. car. shrink all luxury comment going bunch a of is level maybe into the a sum I quite doubled those general It's making the that and remember, was we I about belief examples choice. said was I not -- started could believe a nothing that our a at there these up on economy would of be everybody five-ish predicting any personal and autonomous analogies. opening But as think in over

much Cars larger practical home, and living of home America in nice. home a way. and smaller today, it's chooses a a could because live most nothing in large that's about the There's are while convenient same

car, that. the some in it's always think will car, New a it's for convenient, sharing own York convenient there a America Uber you'll part personal to just like involved, your own some most City think there not convenient see while is to be think and but when I most what's in of I involved, I

the aside, because I'm market the Copart going an just So to to to into share put that continue just is written that's see cars vehicles volume to regardless to technology increased that's most People XX and cars, going more going had, that belief to will from industry technology, you're and market of the be grow stop. cause to love going because we're wins, putting going now additional see volume, the a being the not that be as in of will important and increased trend years those love cars total technology they likely be off tougher to repaired. repair as and loss has

I the to of trend volumes increase. So to going think continue

Jeffrey Liaw

to multiple technology, and we make -- like, as and further, spent and a because a in the support you investments sharing just lot ride add a in imagine, and jump behavior, Craig, do changes might little land business. etcetera, long-term energy I'm decades we tracking going to little of in technologies our

is I vehicle total myself algebra for ride miles what them. to then much each and loss I'd this I frequency volume So it. what that pedantic, need traveled, to very we unit and think is being And drag and understand sharing risk ask accident of of for the Copart back at drives of the need then frequency basic

younger indicate to self-driving miles the easier bullish, every friction driving. X.X miles of I by now I front drive of be may don't I've the the It's that frequency, rise. for in neutral. today. couple are almost studies for that car the all am. than or on almost will sharing we but that for and instead think I [indiscernible] likely rest is replaced that consulting mile you a of of drinks, superior will seen to Ride after equal, on that point Uber us, miles as think is drivers think drivers of miles road think it's the ride up well. that certainly miles sharing systematically number bullish people Accident be I certainly the reduced than get drive more may have Vehicle older easier traveled I else

I In [ph]. loss loss total in then thereabouts, today the than the loss for the it's tailwind Ride was here. has think sharing XXXX effect frequency And total years past been frequency no more frequency Total lastly, one business. I've X% X% XX or way

of are vehicle miles to continue our drivers, favor, that So point you'll your is the to -- certainly loss traveled almost accident frequency will as But I other sharing the ride two in by accident view aggregate, much move me, our calculus how for growth the to those and don't individual changes of business. the the is the in frequency, form think in frequency. offset own

Craig Kennison

well to Thank everybody. Great, you. congratulations

Jayson Adair

Thanks, Craig.

Operator

Thank next take our from Jefferies. question Bret We'll you. Jordan of

Bret Jordan

guys. morning good Hey,

Jeffrey Liaw

Bret. Hey,

Jayson Adair

Good morning.

Bret Jordan

longer the -- maybe, see And on the companies there what feel that insurance scrap congratulations. do total that rate; bound an percentage no Jeff, the question I is upper on the of point is crash five is that is we're at I high-teens years? and the repair now cost a to there to number the three higher? even next getting in the see if benefit totaling, of think you

Jeffrey Liaw

no. Bret in short,

a a clearly One, comment to that than year. mixed are piece about have which in XX% lower literally We every rates, I down made few you think include in I will you apart. that more try didn't this year-over-year. to even our scrap script used and quarter. things there We

our it's So think increasingly business. I irrelevant for

sold for business. many sold and and content the relevant are fundamental our Our both less is be go rebuilt cars to in you parts, are less the overseas some metal for car actual and therefore for many purposes as know, repaired,

Bret Jordan

said option to question; second repair? should total that have opposed opposed my as rates I to to as Jeff, scrap, car the total

Jeffrey Liaw

so, to make any I may anymore. which to five-fold. crash other I by words, a get be cars the those think multiply vehicles the I in if is total demand then if where point economic I to answer and finite -- reasonable, that supply a five-fold, to you to yes. a while I were vacuum grow else say, there if in were prices doesn't for the is I problem total But -- you, selling substantially total loss have yes. demand, cars sense loss answer by keep hypothetically total told right. if for fixed the solved, think been, to Will can total you vehicles think is question think what it what cars that were If say might rising All equal, of

that proven growing. and very over cars think is is and of rest much we past With base UK have and Canadian three especially buyer not etc., demand US for robust the that years I finite. global

Bret Jordan

the land great. then of on Okay, a And follow-up purchase.

Could then talk or Germany. expectations in see average commented an acreage you commented You 'XX acreage go-forward what on in of add what in 'XX the also and remarks basis? about prepared sort your you maybe I'm for you was and maybe

Jeffrey Liaw

for not the gross don't not informative, acres actually all provide generally of the because and a including reasons number but We that -- is fungible. of is that land Brett multitude that

So in what you you what to have have in and and Texas Florida is California so relevant forth. not

details, meaningfully fiscal So think we punch it's in We very almost soon. that abating don't in of is, it's we level land I in line see But anytime provide think trend don't misleading XXXX. I the precision. that invested

Bret Jordan

great. Okay, Thank you.

Operator

Imbro next from Thank of question you. We'll Daniel Stephens. take our

Daniel Imbro

And your business? that winning approach becoming strategic business? is getting on but or Thanks. today that about mean XX% going to it volume the non-insurance to the of Jeff, about I are you've us Good you're was quarters, are you questions. my do be portion taking And talk Where recent seems larger up morning, you my much units? the of where this there margin, you thanks a talked units update going forward? and guys. these I your the congratulations language foresee I to you the think Could on they from? What volume. know for add taking in list positive. I mentioned to your more on

Jeffrey Liaw

grow. universe your bit I short, for we business. want fair customers dealer grow Thanks non-insurance In we the think overall running that you what grow of think really about as whether, it business And question, grow want we question the will as Dan. to fundamentally, to entire think our our equipment how of mix that's and I not business, get tell a wholesalers dealers, We I'm to business. I'd I the to road want our that a when on insurance

or whether [indiscernible] business there. to relevant quote we the that grow pursue So fact outgrowing us a the other is and want period and continue less even to one year given our X-year is to

the heard non-insurance I proposition, to we these briefly sellers the offer allude me and value in economic the think proposition you universe.

I think is values and hard a the liquid far. fair thing stuff by most full them, that that yield foremost platform and again, is digital first massive will auction important to

and win customers. is have and Beyond and the the to that marketing we sales efforts course of those pursue service the that underway force

apps some to care we think digital modern and business multitude -- others places. From newer, vehicles. to of to look cars whole those folks which a and the win well the that dealer of the to large directly themselves and BXB different CXC, world, I look BXC, sell floor from may option, dispose otherwise, the

doubt, competitive So it's universe. no there is a

but our, ultimately our think both in the our that the marketing growth success platform reflection yield. and efforts, in itself our I the price auction years few a of past is

Daniel Imbro

quarter to That's was on led really last kind a you I that I XX% a but comparison accelerate or than that up think then that issue the due And quarter, higher a led build quarter your quarter-to-quarter than to move issue the think can the or view. helpful, know inventory thanks. inventory of remarks, it did anything just and big that timing during see strong to mentioned that we number? was such the less touching timing, that's over during much I

Jeffrey Liaw

still is that a versus of quarters interpret business. you XXXX. inventory growth know next is both at the a reflection unit for in any growing how in day these of point July rate again of a quarter that's and an is XX, XX the strong as indication it XXXX the but think would from looking literally multiple indicator market is growth, growth an or measures, for our in certainly also two account that's not But business at or we time, us and growth followed not I that one individual accidental, volumes, while three, look data would it. volume is wins of at July best, nonetheless, I reiterate imperfect the having I

Daniel Imbro

last me. Perfect. And for then one

international on Just growth. touching

row quarters it any unit again, but about on it you was any market noisy -- is I did or Thanks. there? mentioned Is it it quarter, think double-digit soften side, step of can Any -- a know be in down four anything weaken X% the the I growth. guys a that markets from, there there quarter? changed call specific through

Jeffrey Liaw

sustained no is -- change that that -- is reflected There particular to number. no in

indicator tell business. and the is reliable and both in a most single quarter consistent internally indicator directions you best not for the be that I'll So

Daniel Imbro

guys. much best Perfect. Thanks so luck of

Jeffrey Liaw

Dan. Thanks,

Operator

JPMorgan. Thank Brinkman from you. We'll of question our next take Ryan

Ryan Brinkman

question. taking thanks Hi, my for

Just curious the that but entering if not entirely portion about of market car you've whole software dealer-to-dealer the related. is physical, thought

an Auction KAR has similar think or to I and industry on question for know you wondering you're market car I non-insurance been highly parts the addressable of strong your technology way not and you. elaborate in on ACV earlier following whole a So the do is the Auctions. maybe more in asset you platform TradeRev then for light way market? be is that focus there you business example, leverage if consider a perhaps Services, could generally, just if to know Well, to regarded which

Jeffrey Liaw

Got it.

better serve consider sellers ongoing First, exploring paths and for think ways certainly I evaluate our an that's that the on of buyers all-digital we're we always and us on the and question; one basis. to

on cash literally are very spending I folks quite pathways. in are money investing think and note, I would there losing who heavily those

platform. we While positive auction generate returns to on very our continue

faster very the of than overall. So venture-backed the in some -- market businesses so for Copart forth, well, to meaningfully backdrop continues proposition the used car overall value and grow against cases

that universe. your that a question the think reflection, addressable least in part auction anyone. don't I it's we'd second to it succeeding at about know I platform that as Copart world in is is, the So exclude

I think who there are companies, independent fleets, more than others, but are these franchise. dealers, leasing folks are rich target

game sell, So fair with we I vehicle anyone to the think for Copart. consider

Ryan Brinkman

don't question, there was that you if now has investing standalone thought areas, to the US, might primary that know internationally. IAA thanks. your That's speculation in curious last with strategy. my more environment that then closely competitive including There I regard is to been in some And Copart emulate the to Okay, very different I competitor wish great. helpful, they just might be business. change any

on thoughts that? any have you if curious Just

Jeffrey Liaw

I them. for certainly think a almost better question

Ryan Brinkman

Got it.

much. very you thank Okay,

Jeffrey Liaw

you. Thank

Operator

Wolfe take Thank next Chris you. of We'll from Research. our question Bottiglieri

Chris Bottiglieri

the in inflictive, inventory this business Thanks from or there very Jay, frankly best up you. for as the earnings looking [indiscernible] fundamentals, in something Thank Is what's the is rate, was significant in more I we've heard last mostly curious like seen milestones some call. promotions cash impassioned taking night were hitting question. I growth. but that you of is the don't in quite ever think enthusiasm? is behind insurance the the just I've exit at is of that and of this terms time volume unit this some a

Jayson Adair

We're internally, in Willis the appreciate sometimes to to that no But this really my community when as There this doing achieved public felt [indiscernible] I a Company and the talk something talk very about New across humble head story weeks to tell and beginnings the a of the being promise, screamed thought well may and take last but the day to time, XX to back that. it yelled I then process story coffee I I now. Company feel look first the you up make has how this think they the least incredible But investment Copart should Company and about It's that does. had sworn investment at company community is watching was the -- not two think right just people gives for I be the and years question and going to and and on of we floor. seeing his times the some for how woman not the about I of get what are. hear and XX the told. York and that

the be the try So there Copart times back is a guys get happens is stock up now. you Oh, Willy have emotional that, a know -- so Jezz, [indiscernible] for stock you it's stock what doing but we're and share, open and getting X Willis bottle and to in sometimes, and as ready know a in future you at that once us Oh, a happened. bucks Street stock And the trading was memory I it's the just the you [ph] great right on if now, it's my but at at years next it's lifetime case champagne just that brighter. such I over never it know the the the now. I in And mind, we've sip don't floor, six guys a been today, in yes, viewed well Jezz, tripled just opens may I XX morning, screening times o'clock that the has think. with a to up, just hell reflecting and the XXX -- in that but -- conversation thing the guess was $X.XX have having but Copart whenever o'clock taking a morning the of Weinstein not or and everybody's they're it me

in history we cars never that on the terms service. seeing the win kind Company, seen I've and and of seen a in of never high the the seen I've right growth never technology market share now share I've that's of never are market of in from the coming volume gains us such kind I've operate delivering and a the organic seen of because at the and level

So the that's in it nutshell.

Chris Bottiglieri

in industry, at impact the looked think over it for some of ask at I -- is really near that you prone awesome, fears that's to Do likely picture, that all left this had? specifically have at And long-term question. is that so is totaled, you more I like blown wanted helpful. in bigger has wonder out more like term to least frequency avoidance Like your maybe figuring accident No, that's accident anyway. terms accidents then if be like accident actually what's low-speed of to technology

Jayson Adair

me this two Let make parts.

Will that to literally Franklin This itself precise me the got response the or in just I to are more on you the your drives assist lane breaking the think if after sense it. technologies you've Jeff got I road, more coined you a lot homeostasis. turn will down hands or cruise I or keep that term to this is Hence a you car that of homeostasis. -- the to answer allow risk the term or you've wheel, adaptive auto it you've those got risk. think And I keeping and over lane, risk Let a and [ph] makes think it got give make comment. take

I causes think in no people the it safe. and more car makes ways, some distracted more to be

but recipient see the a cars, to on and would at drive don't like most would people well. damaged people day the cars of when is less end important, that safely I be multitask you engaged, as technology allow I of that you to have

in in You're front either issue. not of the car fully car got focus good idea. the But think and the passenger. best because driving the don't good that's this to next at being line driving you, not a on the you're and I to it's car at car car you've year on drive technology the the

want my the go don't in buttons. hit I all I any that any working of don't want I cars. and me when I For drive. I keep that to stuff shuttle to my in stuff have trying of I don't personally, that. lane, off me

all side, flip the replaced, does that technology the total has when get repair, raise the cost wreck, increases of in that to losses. a car On

take. to I'll my that's So turn Jeff.

Jeffrey Liaw

can Chris, true. think to add is it what I I was going that be

not as that is to I potentially frequency, reduce is severity And answer think, which metric the alluding measure think to accident you're the the of one yes. but simply I well. also

the You lot recognizable years. from go ago, years that But could borderline XX if you you XX changed salvaged the is loss mildly back the the last a lane of obliterated. speak. of avoidance a that or by be and available effectively totaled departure car. if think in them. car way, by has systems high for and the detection car, front the front, skill a sensors to on rear perimeter a sensors well was the in XX-year themselves vehicle. car severity car less It hit went virtue can the with technologies are are mirrors, an and no technology and in as the barely the just of take calibrate the so so There hammered that total car, the rear cameras is back repair, a increments [indiscernible] physical as expensive value, those install and generic parts you in picture I easily literally described. the Accident bumpers, required to accident, looked, a are to see and Today in

severity decrease. So may while physical the

is I worth severity cost of of it think the think don't we think there repair, going economic I unlikely anytime is is And to decades down be. to that's soon. The evidence suggest true.

Chris Bottiglieri

you. Got

So, type that's thoughts. for helpful. And of really the thanks

Jeffrey Liaw

you. Thank

Operator

question take [Operator Edge from of you. our Consumer We'll next Thank Research. Derek Glynn Instructions]

Derek Glynn

up to number, a ASPs, and is Are in my I taking be of change up periods? strong also questions. causing prior to lower just there or factors follow that decelerating Good wanted quarters. US, particular in prior that rate from cause any little than thanks morning but bit for the a still on X%

Jeffrey Liaw

No, not particularly.

are growing meaningfully is through more still than is more ACV, general, I the to than speak value, so the car market that meaningfully pre-accident think cars being number consigned meaningfully used that in the ASP the of or us.

of it's So I change. any reflection a don't think particular

Derek Glynn

the marketing Company the about lot a talked historically. you Jay, then, And understood. I Okay, efforts of

you in how you international markets? see future, program marketing particularly into and the further curious evolving as or expand Just message unfolding that

Jayson Adair

me start with let Well, this.

single single years, bid the we've bid, bid a through We've every what on high high goes in single that every push else because vehicle. the we call industry every data got Internet. bid, XX For single has bid, every had second nobody that

see analogous to are So we looking customers can for, that what it's Amazon.

other looking, on something actually they it, the you're some looking buy They iPhone or that you you iPods interested. features. an nature you are If know know or may you at know, cords of that were they don't [ph] want and site

yard and they it because In single towards at technology So same tailor to we we used the the to ability every online, days, allows have to look us the them. bid vehicle old pushing vehicles the it online car to travel We has looks the taken and can it. find put buyer we've it, buyers the and say but online, to friction. find go down and comes at

But we of taken for it we you. finding haven't and the find now down friction

very be online, quickly So able to that going and what you vehicles of looking if you're the types tailor for we're you're to want.

So component. that's massive one

talked and other amazing product really buzz been about a Copart able we've as around The a create component the social piece, technology the already to has. the I media

was demand much Will not together, vehicles you allows on about cars you different vehicles it about Jeff you XX said, scrap And put enormous an it -- think than prices to the years so -- that the and the for much demand create like we're thinking those today, different is are of ago. both when that like

-- that it's markets Then Germany, in. think standpoint. we internationally, change in when and big that So happening we're in are these from really trends active the that UK other

then And so has we're Walmart different leveraging knowledge across is in UK. and multiple markets, in which is the Walmart ASDA wonderful and a US thing, maybe the

then and U.S. who go know ASDA the then in a it. at if that in With base, on product don't online bid cross-pollination may buyers is Harley, looking is UK find buys U.S. where buyer are at in they going the UK and of for someone were buy in something the Copart -- that looking I the and there to

I the give fair aware of the the that Polish amount example, in UK, kind of a exists thing. of -- So start a that that of buyers fair to buying there that there's bid exist across in become amount is U.S. Copart, it across but that

Jeff why the international ago -- and bidding different you it when so much that's game see talking was scrap XX a it's about very So on years mattered. it's from than because prices focus rest,

Derek Glynn

all Got the commentary.

Jeffrey Liaw

right, All you. thank

Operator

I are Thank over remarks. the time back the would questions closing further there this Mr. Jay you. floor like in to turn no for to At queue. Adair

Jayson Adair

everybody talk to and call. the look bye. I Okay. We we'll forward to Thank you to you, Bye, reporting for much. Jonathan. QX, so then. coming appreciate on Thanks

Operator

of Ladies your and your participation, today's you conference. Have concludes thank day. a great gentlemen, rest for this

Copart (CPRT) 5 Sep 192019 Q4 Earnings call transcript