CPRT - Earnings call transcript Q1 2021

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Operator

Please standby. Good day everyone, and welcome to the Copart Incorporated First Quarter Fiscal 2021 Earnings Call. [Operator Instructions] For opening remarks and introductions, I would like to turn the call over to Mr. John North, Chief Financial Officer of Copart Incorporated. Please go ahead, sir.

John North

morning. good and Thanks

payroll link website we'll equivalent the the non-GAAP to GAAP non-GAAP income directly in effect basis. under issued gains, provided the release most the of our benefits foreign Relations our measures, corresponding call, these stock our reconciliation measures accounting financial GAAP adjustments exercises a relevant from option tax measures yesterday. Investor which ASU non-GAAP to trends currency-related and business and tax results income measures We reverse of on comparable our and and certain with believe analyze non-GAAP press related discuss today's both our on to measures, for common are certain effect include and items, taxes on shares We During these assessing performance. certain in together We've GAAP discrete XXXX-XX.

forward-looking including respect of comments COVID-XX meaning statements pandemic. to In the today the opportunities trends, These including to current addition, management's our with and uncertainties respect statements and substantial include uncertainties. our risks markets, within involve in laws, views forward-looking securities federal with

are as we on quarterly Risk the Form or today turn detail of of of made statements call will and no forward-looking more year XX-K our that to Any refer forward-looking any to revise Report business, update the XX-Q. statements. obligation I Jay. risks has titled subsequent Form associated the the to section For XXst, on Factors And reports way, over out Copart you Annual with XXXX with July our ended in the on each our for and

Jay Adair

Thanks, John. Appreciate it.

the only quarter, talked the of year and and of of year across morning, years we was pandemic, unknowns, Jeff year Company. the became despite saw and XXXX through And a for I XX and and we not is this New we - what had terms Willis ago, last as happy a talking a was to accomplishments. about we this ahead. I to went course it of people indicative the of Copart on terms streets and of stepped as inner challenges, I York years New results, year York just public a the that really organization the say While but strong say first time, amazed I when but I workings met better. in Wall I proud and performed can't and not was we was I record amazed was Street, later, in it's Wall an year our went the fiscal record I'm daily, I I starting understand Street year and XX eventually amazing today, of And to QX and believe public corrected and in any was saw of And daily, I confused.

we reason see in We've best well to our that has saw technology look I probably systems, are the the a details the have future. And over good I no And when through What level, see results, do and prepared, returns grow till for done at we John think to guys it, is bodes customers. and the the a record prices delivering record service a quarter, I when Company today we that's saw the our in excellent highest Copart Copart at record Company. that's Jeff thing. and great you sale the we've the years. I best but great on change. know process give the saw people industry and we QX best for going that to why continued is going industry. that best being done technology,

over generated called of million, $XXX where ago, years Copart we started year knew the quarter, for four EBITDA campaign, in out and new entire ago and along the years nearly three we we that, for aggressively then additional X.X, to was EBITDA. going a XX/XX/XX and to up Eastern over went Houston. this was we the to million into the started went happen, for adding $XXX we out then sites And opened the Just land and to addition locations mega and our and and way all catastrophes existing this locations all Gulf seaboard across opening

and and acquisitions with that this we happy we've just cars, I our make. number pre-COVID we've you means quarter in to starting actually really future. to we'll of to be And like acquisitions XXXX, of some seen only we'll that that these traffic looking to a volume pipeline, we in so be in I'm have our to return is technology on zoning, a haven't we and for We as that big have continue assigned on not five four, capacity had the investment I store in and won't so prepared, a win us the the And view won't spend done to the new continued continue be available able to year. months. to make land we on did little record continued acres we the to six know fruition. of land take that of to growth. investment them say We be have morning come can able the to land. and we levels. way continue to grows this to deal to work market and work to but But get cars, as to continue on three, able would list continued we the continued as bit in in large all, believe we call, of but big won't as on many years the get as again of first And that to have we our not we do a now a to still business. it forward, that

to the were clearly, lot But it COVID, but volume back almost still frequently we prior have country. where though we we more selling there are getting assignment this was started., miles now everybody volume we're even were starting we not COVID. obvious, lag, is as as across see weren't COVID off selling driven don't before inventory large a volume, to when Sales to driving yet. big yet, and still inventory is back not off and getting assignment volume So quite they the

in I next about selling and some volume vehicles of in excited quarter six months. I'm senior the terms in or be back normal in volume new and So assignment we've the made team. to could we'll those suspect less off more of or be changes management two, our about sales

Automotive You heard industry, two-decade in John plus in working experience a this morning, the automotive companies. John has

six have I'm five never upgraded years. about our and about quarter part the team we him on next about it don't to to before, the we're so, been excited you I ten I'm systems I've of and very future as in of And our know, as think this our a know And stronger. we team next excited to in last think team. months. be or have we about the have Copart leadership Copart excited that in CFO to year, the our And built he's in people have in excited and and him our said Copart.

very about COO our Officer, feel Marketing Chief future our good our team, I executive and next leadership and Jeff CFO, the for XX-year leading our the Our horizon. team

more Jeff, our for quarter, now turn President. So it details on like I'd to the over to

Jeff Liaw

have earnings our just It's years' short Jay. been last since since transpired you, two call, world months feels events multiple like of then. Thank it sometimes but worth

Jay and be our our adapting how the and a am for the procedures world. essential have to safe First, at seriously very communities able disruption work our The been customers to in members and profoundly taken commitment an of do We've done. we're I importance proud people part around as and our been provide like Copart to an well the to wanted It's grateful did, to adaptation the express team. of organization as gratifying employees, keep job service immensely time. substantial same the I we to the continuous to of

have smoothly industry about and two many We've past other we our and to many operating online been loan therefore features over been estimation continuation for a both aspiration We've do much our ProQuote, facing new pandemic. had the on Copart internal we've to we XXXX I the the we've last in and and businesses of other and offense the for as long-term tool deployed We've future of improving many among build the partners. to processes investing digital Under and adapted few who pandemic. wanted Willis and updated business so. throughout product. way electronic really applications. foresight We've course products deployed business themes been predate the the over price carrier or out payoff me, communications business We've since has stabilization the technology to enhanced natively playing J to crisis first to past our to usual. themes auctions powered a the deliver market our leaders achievements customer we machine We quarters, draw digital one. to and insurance learning quarter, done than workflow committed observed the call. a our Our grown exclusively more John our talked signature our best-in-class senior we've

We the on miles generally Google, with that retail of observe - relative data indicates sequential from baselines, COVID-XX international the driving on traffic U.S. much others. source. still a meaningful we but the lower continue noisy recreation-related commuting data the with Nonetheless, markets. the more pre-pandemic driving. trough trough. some Apple and We less Most to seeing quickly improvement than steady the recovering depending among are sources and of activity, track from from you and they're a to of many do, baseline Rick's our pandemic is The driven increase than

Information year As minus note ago. U.S. we has the Energy guidepost, or XX% recently a plus versus that down, published gas another indicating Administration is data consumption that

transportation activity ride other driving transit some down also increases XX%. we've and have seen including relative We where in forms seen sharing relative mass activity to of

As of to miles accident conventional correlated accident our wisdom frequency. contributes driven frequency, congestion the that is for positively important because with other business, drivers held accident frequency has

industry increased in source and is scenarios the double-digit during roads accident And total driver continued due driving per much very One indicated indications contributing The continue the to During in during less returns in phone on both as has the long-term of loss our and of substantial the pandemic, some braking. high distracted severity, which pandemic, of miles hard trend pandemic. increases increased frequency auction. With have to see we then the opposite usage that frequency crowded, speeding, most have important long-term our course evidence are are we generating have accident and has some true. that speeding loss business. anyway, rising it may frequency the we accelerated part to emphasized at total There driven.

Turning we to decrease by absolute the driven unit the of XX% COVID-XX total sales trends, decline of quarter, impact vehicles. unit driven has of our XX%. international with and experienced a the for U.S. of of and miles The been number unit and decline therefore accidents an unit the XX% global unit sales decrease course on

business, affected within wholesalers and the business, that charities COVID-XX. most non-insurance by have Our non-insurance been significantly

year-over-year XX% those two volume non-insurance our up whole dealers, significant were has business dealer down auction in group, for to XX%. for our units car a those categories, two validation model. year-over-year, other believe grown particular business that Excluding a in continuing platforms Within declines sold we of what was we were including our compared categories, non-insurance

of decreased a inventory year-over-year X.X% comprised of decline international X.X% year of ago, U.S. a versus inventory global that decline and Our an X.X%. inventory is

in XX.X% selling that for no vehicle and that's ASPs Turning of we've efforts. member some at XX% reflection up thereabouts and recruitment disruption only as exceeding doubt for at quarter crisis, all selling prices U.S. have vehicles of of are industry used meaningfully high reflection however contribute economic of then ASPs and both prices auctions, natural we time recruitment. track. as helped ASPs the XX%. us. for prices to year-over-year dynamics our They indices environment, grew the the to a the our efforts retention up believe for the Used market our we on worldwide pandemic highs, based well headwinds with car car a despite member experienced ASP our to marketing our environment With price part some year-over-year or own

CAT theme, of to our an in closed unusually teams. Turning we very proud season are last the busy we've out hurricane and

with most events on land, respond As season always, and ready to industry. equipment This XX the grateful in was we team and however was and people XX in Copart some named second record but communities year their respect active experienced hurricanes. Atlantic to are seasons, with effect none for in season. stand to storm catastrophic that customers we've damage storms prior this support the CAT in severe multiple The mobilizations less property than and of we're nonetheless the our

hand it my financial one highlights, feels change the through our to certainly own windows to most ahead. I like walk in career no Before of uncertainty with doubt, more still and off John tumultuous it

conviction far XXXX that Our in great experience we're anything. ready given so for has us

turn first empower it long-term few the we're grateful our North days customers prosperity short financial a Just investing with our grateful to walk And our John to for to Thanksgiving, results. people, quarter and own. for new who CFO, over their of in through I'll our us that, continue

John North

Thanks, Great. Jeff.

to $XX.X $X.X to partially of all the of international more open thanks Global business to particularly our benefit to rising our that yard warm points declines, ASPs. And am due here. to It's rate U.S. operating it million higher from operational to business, and the trended U.S. due profit by encourage $XX from welcome, increased want driven higher International $XX.X to reiterate G&A sales but then ASPs, changes. - million contract. a in time, million G&A of improved remarks vehicle the increased business, by increased increase margins, a margins team offset XXX approximately to I provide just Purchased a sales Purchased revenue as negative discussion that to international a up as for X.X% to some grew if million said, I as as from a million said, our XX.X% underlying we to a costs cost decrease or U.S. believe primarily our move Copart. around increased expenditures partially headlines expenses. million by by in metric the view XX.X% growth and were G&A, primarily margin COVID-XX a we reflection vehicle and including and driven more expenditures vehicle by excluding I'll review $X.X a were on proud of With impact processed. make recent margin leverage declines XX.X% our improved gross affected down for just comments Global First, organization ASPs, of million the and fluctuate the $X.X ago unit impact. and U.S. G&A inventory was XX.X%. volume the an by XX% Jay quarter than phenomenal to I'll business sure absorption over results activity stock operating a to over rather general, color ASPs. basis reduced sold single additional unit earlier by vehicle brief due year XX.X% compensation service data gross to happy COVID but modest offset similar was primarily and be $XX.X obviously more can U.K. term continue across questions. a cost depreciation long $XX.X sales now X.X%, in currency. and In to profits we'll predominantly few million at XXXX. Gross and a for due to sold. or offset by achieve increased volume cost slightly, to $XX.X sales XX.X% XX.X%. million or I grow be accurate pure X.X%, or more and and am revenue how accurate vehicle higher defined to to fee-based you sales experienced will customer less by leverage shift more longer-dated given increased we in than With the say increased of per

X.X% reduced $X to revolver year option XXXX an collected reduction an the the million on income earnings or prior-year amendment. million million. As from at XX.X% would XX% vehicles. million rate adjusted XX.X%. to options, by on XX% QX cash basis, benefit interest million costs volume last year-over-year delivered due due ASPs, revenue decreased tax basis operating release. these $XXX.X million non-GAAP stock Net GAAP from income to $XXX.X of on line $XXX.X income $XX.X points XX.X% exercises. balances and our a tax interest expense a to the offset to increased absolute upsizing quarter margin to our On operating year items, approximately included improvement employee increase strong million $XX.X $XXX.X to in fees out In which million due stock growth We effective income effective a income exercise unused $XXX.X the Adjusted of $XXX.X for of purposes negative given earnings of tax current million operating for credit debt by of from from and the rate rate the this a been rate GAAP year reflecting of summary, in leverage from due an to last XXXX. non-GAAP been expense was non-GAAP increased increased issuance tax July remove result, has lower net tax interest first XXX environment have partially net and

back $XXX.X million on million, October as cash billion to XXXX, million in liquidity and we increase primarily $X.X over Sequentially, equivalents, and decreased for flow cash working our XXXX $XXX.X of capital quarter us assignments quarter and million attributable October $X.X $XXX.X flow facility, cash buyouts. long-term of ramped Operating invested to Diego? update consuming million XXXX our and capitalization in of up for some benefits. lease the concludes XXst, We credit expenditures $X.XX the amount both make briefly remarks, driven in billion year-over-year strong to to revolving working a quarter of undrawn. capacity income interest customers and fourth and as capital our over questions. our had from In of $XXX.X to comprised effects. enable Now the due That happy shareholders. by cash conservative liquidity, have highlights, our our decisions the flow flow of XXst, this to expansion tax was conclusion, cash which to an and of capital increased take XX% and million is we're $XX.X operating continue capacity cash

Operator

Labick Instructions] Bob Our from CJS [Operator question. Securities. question first your Please state with comes

Bob Labick

So terrific And maybe obviously were say but than costs. and July faster quarter both volumes this another I and rose service like yard ASPs from it quarter, grew sequentially ASPs faster. the looks up revenue because

etc, understand brought dynamic buyers, other ASPs is pandemic how demand to been question. you ASPs what - that recover, of in trying pre-pandemic between outstrip an see faring increase here do I from so to supply volumes at supply could to you as volumes so, even continue you factors so as may in And do new do demand and there's think I'm or people, new the demand levels return guess the when even kind see be and And and play. the

Jeff Liaw

question - and - and a fair complex answer certain in complex Yes, it's answer. very

the the we're absolute dollars are Copart, and right, supply then in Bob, on many, so And prices actual short, if ASPs XX%, more that assuredly dollars. there at with not demand. cars volumes are high, many fewer literally I I down but and some more is many, are conviction units purchasing seeing say just XX%, because up think were it

to that that think grow me the in demand we are leads to the continuing part, least I at base vehicles. for So conclude

efforts, You a marketing may lounges. we SVP had we recall new grown, we opened of new expanded our hired Marketing,

So the decades to But certainly invest pandemic, in we continue and frankly, theme, will that's borne multiple been going an that's Bob. ongoing in forward. that fruit

of it. increase today's of sure I'm is and function it's ASP hard say. how a supply it's is certainly much not it, part of to but all demand of So

and ASPs equally think, as closer loss base, totals well of frequency Those and buyer loss important further are the recruit more drivable. more totaled, growth and the of total cars new marginal perhaps they upward, I to total frankly the drive increases is are buyers interrelated frequency. course immediately further and those also because are as those

certainly flywheel is is a think virtuous which as So favorable, effect there the we're pandemic we seeing well. a in

Bob Labick

those Germany, so they about basis, your were an going. to question And then Then and an you Germany impacted to see about sell how on in affected next overall three on so and a COVID, talked much has it's the years now where emerging maybe do international, it agency how I update starting international too past five didn't on talk the plans? by you COVID the think opportunities years? over yet,

Jeff Liaw

countries much think I affected been very So your is have question to answer the short the that COVID-XX. by

I two brief think varying a passing, are the general, in U.S. more comment in and there degrees, the severely I made than in

I and don't pandemic. our execution, and of Our our plans think varied as a result had intentions

in called key investing continues specifically to a out you for be which theme So us. Germany,

far process to heard - the to selling challenges agency in remains invest both changing doing the today, the with then continue but the Germany and way and carriers the so cars an the prior same in of so. industry and the The on us general the the for talk are of demonstrating the in total calls, noted people. about the opportunities loss all technology on benefit you total excellent And in and We carriers results including path you've and as growth insurance manages basis we policyholders. land

certainly it changed. longer course So our but is no, on much that of hasn't a discussion, perspective

Bob Labick

last me. And from one

to and a congratulations other new hires. the John Just

hires expanded you the and how your maybe the executive of and for kind roles new Jay, team? with now Jeff do but - So change

Jeff Liaw

at the Copart - I say, always the leadership think approach fluid, been senior right. I'd has quite

observe stature. would size lower in of at our than Copart and are between quite walls you I a public generally the and So what bit functions think companies countries

to fluid, certainly to - of evaluating accounting, but Relations including considered take for So John us Copart of our various ROIC we it's and the leadership forth. navigate day help and and for But also will functions in evaluating return on on more approach much undertake. strategic initiatives finance the day to the what so are future investments help I traditionally accounting think Investor including

Our new Scott Marketing, universe. is SVP comes sure of industry, from competitive online more and online it arenas comes the Booker travel know of difficult one marketplace well you the when to challenging, the I'm which

he continuing that will so, that And spearhead buyer supply demand the bring our market. efforts base in grow for we continuing to to the build and to

So day, answer roles to leadership I day very think they functions. certainly think but other, looks because like day hard to specific take meaningful in it's will no individual I their the

Operator

Our question. your with next Stephanie Securities. state Benjamin from Truist question Please comes

Stephanie Benjamin

you bit saw the side a of to pretty, touch wholesale out, in of a Jeff. I excluding called as side that business. growth It business some particularly on pretty non-insurance wanted strong charity as your well the dealer

despite the platform interesting traditional quarter. it digital really outperformance we that opening You made of into for more. know, think I given the quarter, just clearly this last sense, strong auction But other continued up non-insurance some in providers your saw

would these pretty bit segment. continue If that you color going wasn't pandemic driven. you're maybe actually helpful. And really can Thanks. been some and sticky, gains there be sticky, seeing some gains little share or about Any what kind have where opportunity speak in of it's forward. So there a just

Jeff Liaw

Yes.

a it's question, fair think I Stephanie.

but and the following if I the individual now, this quarter-by-quarter think trends years many Dealer long Services, been years. by track for you you us for back pandemic think I predated you've could trajectory see Copart growth go

for we've marketplace grown achieving matters. to the nearly So doing we what grown sure - charming, excellent other And and distinguished returns, the we not product priority an quickly. dealer's our may auction the many in of very That's auction platforms to is while return like auction shrunk. I'd think is I'm the liquidity in key ultimately is the it our years it's but we we're at of cases - pandemic, have a us. the generate over a likable are steadily we've people sellers today what and what's business extent, grown online largely think and think same have so ultimately I what wholesale

real auction purely we to haven't having invent instead. haven't accustomed after We to had physical digital auctions had to adapt time, a become

relative broadly, profit I more So digital is more our well. do there has And still. good during that perhaps the us our and dealers to which returns important achieving for being performance driver natively is important aspire growth are and important to revenue an But us, for as think enhance for driver pandemic. better helped - something we about long-term

Stephanie Benjamin

some Has even internationally, so other you'd wondering international you bit was and I plans little of there. And expand new little Germany a bit any know further touch kind your maybe the in business. markets? spoke efforts a I to on the side there some been of on internal of investments or

Jeff Liaw

yes. short, In

Germany and have characteristics, economic is proposition and such total to mobility well Western time so U.S. where regulatory and compelling viewed high shares forth and macroeconomic drivable the always high been as that burdens of in and cars a the as intrinsic cars the good costs, over and characteristics Europe Canada repairable more elsewhere emerging that elsewhere a in U.K. expand cars and broadly. demand many in markets repair those value and in and the well. native for that have markets both continues as Spain make the many a I think to we footprint Western have where loss of social in and Europe gateway

So - that certainly in expectation Germany eventually is a our elsewhere Western there. it's Europe success our and extend Spain will

horizon, for that but today, Spain core long and I'd Europe. well, Germany international on our say where will certainly as emerge Western business other markets Now there priorities us term already do emphasis are relevant and we our as is for markets the X-year

Operator

Craig Kennison your Baird. comes Please question with question. from Our next state

Craig Kennison

lock geographies you different a pandemic. portion with in that manner, different start wondering you seen I'm more Wanted early see you're know if spike approaching through in and are geographies lock if various of I are that early down here, the or government just government risk across options the now learned the scenarios, at cases - to considering you've we've in globe have what the the down

Jeff Liaw

question, Craig. I'm sure have Hi, not enlightened we more and A than a you one good do. perspective

us So then eight of them. themselves in and social government unfolds. the months it's all experience, a expected I function virus of think six trends - how And the or understanding both that of to we've how of now response understanding months, have and do

downs, more timeframe really among scenario, that service to the operations, communities So able to we lock severe are our the business operations we I'd prepared very able was we're extreme including we in. essential May, our that June adapt prove adapt, windows to any could April, an for are and argue the do

So to to volume The our serve customers I remains be our and able to I seen. effects, to communities. think be continue expect

don't I we it's know. fair think to say

Craig Kennison

have second with picture volume your And my with Copart. your know question more your to relationships their just big has insurance of to XXX% exclusive you some relationships consignors. that do We partner where consigns insurance

volume. have it are there to an Is those priority curious exclusive there be an a able that might a Is exclusive you deals. see can an you're just cost, access? commits but is that You why what - vendor you have how to agreement want benefits insurer more that service, would others relationship? when one is insurer the fraction win data of where I I guess unique with to I'm get for that exclusive for have an Copart? than there

Jeff Liaw

the front returns that deals with think a we of nuts we It's se. not the status warm we are It's excellent per strong customers. have more plane, those of a reflection a reflection relationship them. service platinum exclusive to of with Airlines' generate, American excellent the the the provide just at per se I

serve work se, auction our a, and per in in and the from ring vehicles the and hell on that catastrophic returns is those Craig. responsive, for no them. certainly So there it the earn secret technology But them hell we And at that make management the to we towing that and day to generate and we are the We day we to like pickup process events most trust have of earn the do customers. entire sure moments. work we critical most the like work we on ground people to

not So for to get the with Y, processing having whom dated work a providers there's like many whom the or carriers, that hell experience reduce to them in across inventory forth. complexity one for trends them to and benefit integrate certainly to of manage end. one in as counterparty counterparty those agreements there for with older honor technologically, own and exclusive we X, does Z their It Copart earn, so and is to platforms, units badge discuss markets the that end the are they us to so is

reflection I So But a good and the as worthwhile makers of simplicity I is in - well. returns. a think of it's think general, for good service

Craig Kennison

Street, out let you Jay, Great, please if thanks. And Wall me figure know.

Jay Adair

when it you the it's love you to I Yes. direction, moves move. think off knock the opposite going and cover ball the the market

let So it's out. I'm something yet figure know. to you I'll

Operator

question. your state with Bret from Jordan Please next Our Jefferies. comes question

Bret Jordan

going explanation you of have On I the guess, an of units, are many I Europe are about guess to Are dealer when cars more a now, Africa declining a units you the export? that against that's you? backdrop, North incremental you go maybe you export feeling your to the And for that exporting do the than are is ago? volumes you driving getting in across were volumes, year how board think to direction you're cars more higher that and the there selling bid in a there non-insurance Eastern and or growth

Jeff Liaw

some if a weakened dollar currency So throughout, the of harder the afterwards behalf our question it's it's a to been portion relevant is The part say. of of been had currencies of with helped dealers noise, for you precise tracking first countries the in horizon, even buyer question time versus buyer auction of answer we the lot differential your a more whether higher on the others exported is that part may lot therefore in that because the to us it I to depreciated And are there's flat, to and have think ultimately expansive those buyer international a more of drive meaningful returns. over Currencies, down and cars it's your the lot. - yes, cars probably universe asked access about pandemic. you've that been slightly year-over-year, mix the be the depreciated

weakened. their have generally currencies For buying countries, the

So their their grown. demand terms international and they But more paying way local way, then are our more in absolute in advantage is own actually has currencies, in relative purchasing term near impaired.

XX-year today. kind much ten in horizon, XX-year today year-over-year, you're of important important terms changes years ten closer ago than So is the international in much it's it volume but buyer more they are horizon more a over certainly years be to over and and time breakeven of will the than was the describing,

Bret Jordan

Was the volume you And then cost that to about a in catastrophic damage. in catastrophic, you the them? but mobilizations, of a but storms, created negative the question sense up enough multiple showing had limited talked property on not by quarter

Jeff Liaw

lot to we've but in to storm seasons in to always and whole EBITDA, it's I'm sure not a I storm there's there no not and there's storms - see no that in for right, don't not of are I it to call whatsoever. which I'm enough in seen adjust trying It because be out scenario operating because think enough value know trying always going part profit, is, to any are - some there noise no sure report

as it, we it meaningful various you'll to would Hurricane bad are and storm us and in the such. activity but as P&L, in there hear effect good say year's business they comes suffice try net describe I a Harvey, accept So when noise severe that events characterize to the like call it generally that this our

Operator

JPMorgan. state next Ryan with comes Our Brinkman Instructions] your from Please question [Operator question.

Ryan Brinkman

you about Thanks Congrats straight another in XX% prices. quarter. my average this which - taking on quarter is know, year-over-year question, of XX% second selling the strong growth or for

of another quarter lap do could two maybe record the these whole as some outlook done mix, sort rate are been like different you the precious And just selling has car what we don't recall or metals, such prices, for increases and Firstly, if moderation or can to price these about increase factors the I you're talk your vehicles, you sustainability, you quality or increases? driving I the these that? fast. then higher factors see biggest think about impact of as, are start on such maybe should beforehand that the previously for whole we Thanks. maybe difficult before those more example, growing drivable compares this also, think for also cannot them And of of know. maybe something types newer car metals or prices

Jay Adair

make just and ASPs sure our our - First to but point didn't clarifying up were were I misspeak, a I last this year-over-year quarter quarter think XX% up XX%.

Yes, it this as is quarter in we time I all all believe time selling prices. changes than the these So increases year-over-year last quarter. and at more was highs, are yes, well are meaningful

been have may for we not. selling earlier business comment moment, little think what up price I it to and And absolute we demand and Copart durable supply on the there that the when away conclude decline of but characteristics quote is volumes auctions You a meaningfully portion trends and in seen selling did a some flowing overall year-over-year. average the are XX%, likely dollars have here. XX%, But increase prices we is

To auction. dollars as it's form frequency demand, pursuing fair probably and more fixed that just multiple totals it selling year seen of number a that. units, marginal much that's also increase because a we've your a generate about of number it's to I loss X%, XX%. prices north would that, supply is just loss higher question XXXX think that benefits Total not I at than it's total today of was frequency note trend. certain in that say not us it's in been So of ASPs mix, the

XXXX accelerated the for pandemic, efforts it's is third quarter quarters total until one which true it's a but ASP been XX like. we our recruitment has reflection But something that the reason right memory happened phenomenon loss until many is pandemic that's why So it Which the was until for serves hit, during to when straight experienced had not pandemic, of the of arguably then And during and years. marketing the a frequency if se. per or some extent increases thereabouts. by

secular are - will some the increase very To that extent of ASPs of it. all So long related portion haul. so - XX% there then, doubt, pandemic what say. of difficult phenomenon? to Very certainly over It's drivers some purely a up no lead is not today's the

Ryan Brinkman

going supply potentially part is positioned benefit a is of And of - inflation? or that seeing whole Company in in higher may run part long was all question because that of in real transaction areas deflation commercial that of own one inflation lot inflation and as if then to the or is that that estate, but could view higher the the compensated the from prices. debate of land, that like I you a the your cetera. car is, what's And other et appreciates happening of whatnot, to Reserve thesis inflation percentage taking face last versus materially the is just mean, you with prices, so get weigh deflation just I and sort in we're Federal thinking rent there was there that's money in, not prices, won't - of if here? of used How on you investment be place is over come value,

Jeff Liaw

so. indirectly only say I'd

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and expression, a to fraught automobiles you goods general, or inflation certainly certain some like is to estate in So exclude risk fuel. the indices and described. When we the include are not it like, inflation real subject and durable potential exclude comes

harder when the frequently inflation calculus comes enter doesn't it in not say it comment would on general, it's strategic in to So, I make. to isolation. decisions very it we does our operational decision and -

think when it for have know, So will. a make. to comes than not the hard you Street and this mind decisions - I - hard me we But it's will certainly - top perspective we on Wall the of and to for better

Operator

I'll Thank this it you. at Thank no turn time, further questions Liaw you. There for are Jeff remarks. back closing to

Jeff Liaw

Well, Have to the next and we you on good talking forward thoughtful questions a to call. day. the everyone for thank look

Operator

Ladies you. Thank great does for participation. rest thank Have you This conclude today's and you. of conference. a your gentlemen, Thank day. your

Copart (CPRT) 19 Nov 202021 Q1 Earnings call transcript