Earnings call transcript Q3 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Copart Incorporated Third Quarter Fiscal 2023 Earnings Call.

Just a reminder, today's conference is being recorded. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

to and will non-GAAP over on Copart’s call Harbor Safe financial turning management, share I statement Before measures.

together stock-based tax During discuss today's these comparable related non-GAAP p.m. income with most press its central in to reconciliation GAAP results Investor GAAP certain website will its company to benefits release these directly non-GAAP measures, issued financial non-GAAP approximately provided company's believes and call, relevant measures including today. time business adjustments of are the a compensation. X:XX The corresponding company The measures measures performance. the the in company Relations its at trends analyzing and has assessing measures to and on

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

XXXX, we the on details company's on more For the Factors Form in XX, XX-K titled as year has each annual today business, are XX-Q. statements the to Any the report the of made any on subsequent update the forward-looking reports and quarterly company or for to associated with no the Form section July Risk statements. obligation ended and company's revise of refer company's forward-looking risks you

to Co-CEO, Liaw. Jeff over company's the call the turn now I'll

Jeff Liaw

our in will call. quarterly pride our third with organization Thank on Leah orient pleased and quarter Great. our take most XXXX. everyone report earnings today fiscal introductory We our comments I'll the so thereafter in customer We're afternoon good you, Paul. results. around my for of Good clients. to industry, to details follow being financial results centric the welcome

event opportunities moved honor our they for concluded investment turn Board to our our Northern all with we clients. XXrd year, about which We our challenges headquarters from and ago, anniversary homecoming close we insurance programs. a a of company. something the capital of key service In our gather deployments recently Every XXth in-person in from face, which as and Annual hosted feedback about XX-years in solicit was meeting it tech us. of offerings, California this We informs clients our to Advisory

bottomed the I start this emerged continues board themes with that their I'd across thought, rising experience ratios. some a CCC, thereabouts year. the of multitude second including has apparent those dimensions, radical first of key to the insurance total discussions of loss from total an frequency inflation XX% They change XXXX. of observing to in the According are industry reversion at across in and increasing reflected as combined in The or XX% rebounded to to XXXX we frequency quarter the subsequently and loss trends. calendar quarter calendar

increase. quarterly sequential consecutive third The

repair long-term MSRP vehicle stabilize for below vehicles pre-COVID average unchanged. data particular the nearly course March of beyond. the two prices to retail We for Book new than anticipate indicator prices XXXX remain faster years. used Kelly transaction for or leading time were total We will, will levels Blue of drivers loss new in that and which softened total costs vehicle will drive as likely market. a frequency prices vehicle the see loss first indicates of in frequency The in

Eastern Africa and First, more economics severity, they rental accident attractive world in because are salvage the Central in complexity, mobility America, growing our damaged economies on are costs. to less lean vehicle the repairs South and expensive increasing two, vehicles more the due and time, attractive, And over to Europe need. and fastest car costs provide labor

in XXXX this volumes we frequency estimate total pre-COVID or remain the of norms. calendar X% total quarter had compared the increased the -- volumes when loss first their past Insurance at pardon In alone, levels. to quarter U.S. our total suppressed loss year-over-year, been me, frequency loss Although so historical alone

they insurance XX% than more been have volumes could Our were.

that is continue will heavily us hiring virtual workforce, more emerged clients to loan on services them trusted that provide title leaning have theme services, own partners our we to challenges insurance Another including which experience believe procurement for and their among others. like payoff, retention additional inspection,

client Our decision decision algorithms interest also strong recognition importantly engaging enable with machine faster image our and to making. better and expressed learning tools making

storage, a estimating companies appraiser much could that been often have costs thousands and dollars in vehicle insurance ultimately be incur totaled, labor, of tear decision with will For which literally of making. down mitigated streamlined towing,

global of salvage providing clients insurance our to our with also the meetings superior the underscore returns in Our marketplace importance industry.

our I'll turn business. non-insurance to next

constrained customer segments several supply now, a finance to We and nearly of leverage infrastructure to customers of ongoing to our We non-insurance our call both which on and ability segments, bank particularly in in Blue progress our reported base. Likewise, mass we fleet the these despite as view still our we've additional grew Car. examples velocity as quarters flywheel of drove marketplace. quarter volume add collectively auction For our X% year-over-year, well. with dealer our approximately rental by growth we third the X% and existing year-over-year our

Last start follow of growing from and our proactively nuanced longstanding current and question thought more with a view. that balance comment, I'll with I'd our we've here. position analysts of a our and number cash questions investors address already some fielded I about

employee evergreen investments as and founder in in Johnson, in to core technology are Willis Our who ownership we our mindset, land, prioritize is position we business, particular. from near program. seriously owner's stewards take our investing because of to with and employees -- an our participate owners prospective that our evaluate We stock responsibility newest capital elect our

form generally share over done episodically, our code from generally leverage very we our extensions we the key capabilities as of to as the excess track these Secondly, conservative a evident And tax substantially flow that is we our return in to bar. consider subject investors ultimately years, the cash high have meet strategic opportunities but various M&A record, buybacks. must and how evolves

prioritize we comparison in participants to Regarding do I want our sheet do differentiates strength industry, the today, we of can other capital or stand balance where management our prosperity our dividends our to our to of and our massive emphasize the how initiatives. cost and interest bandwidth satisfaction payments, We not deploy Copart. clients. long-term empowers reduction and paydown, specifically prioritizing resources debt In specifically

Three simple examples.

provides ensures can the model investing real XX-years. environment also service in continue sustainability we next First, inflationary our our which estate portfolio, for owned against and durable of an protection the strong

superior in capital and the land in we marketing people. base. competitive resources short, advantage. a and In platform Second, events can catastrophic to and so even doing third, global our is itself create we tech in sustain that invest our technology, our long-term we orientation can investments substantial trucks, provide distinct clients requires and service believe when buyer And

over it Leah. turn I'll to

Leah Stearns

Thank you, Jeff.

Internationally, insurance to across purchase XX%. Turning quarter. the unit, unit came and mix XX% units increased and unit to over due purchased from Global declined respectively. XX% our which business [Technical and of a growth our growth sales Difficulty] our primarily fee

recovery the share activity, and our due year comps business continued relative to one severity, primarily driving accident Insurance gain. respectively. During the to and frequency total U.S. grew frequency of XX% its and quarter, was X% loss in This increasing and two

base growing Our auction recruitment, retention. to in invest and buyer returns global we remain driving our registration by member as continue strong

claims cost with and our As to by vehicles, loss. damaged effective best-in-class more returns, total liquidity manage more growing making to a providing a cost customers a deem result, way costs Copart's auctions ultimately provide insurance effective it

results. Turning financial to our

at quarter, currency. service the unit $XX For or due U.S. average primarily U.S. $XX Global and average million about down ASPs nearly X% due and X%, sale XX% headwind XX% year-over-year revenue to X% third increased XXX.X. index, and ended with per which in volumes. a for revenue X% international nearly the third the prices to grew million quarter, is nearly increased $XX or global quarter. million slightly compared over or higher X%, revenue the service revenue to Manheim including decline were for respectively down increased April

Purchase quarter. purchased quarter, for or nearly international U.S. $X vehicle and up with XX% quarter XX% increased X% million the vehicle sales the for revenue for the down third

activity the pricing our U.S. low unit quarter, managed softening purchased unit environment. our we the During vehicle remained principal in exposure a in as

future an adjacent our class an believe us new asset business to for of continue is in for important We enabler portion geographies. provides that our and this and growth opportunity

of sales than $X Purchase grew vehicle more or cost million quarter. third X.X% the in

percentage decreased quarter gross result, increased $X to million profit our or XXX while XX%, U.S. X% the to profit during purchased gross increased quarter. by XX.X%. increased Global by XX.X% margin third vehicle margin margins approximately a to decreased basis international XX.X%. by million and $XX the As approximately profit in or about points gross

offset the coming vehicle fuel vehicle margin revenue by U.S. from a consolidated basis on labor driven internationally increase to had and shifts was impacts units greater shifts partially a margin margin year-over-year units. costs mix where higher of consignment purchase percentage in towards primarily The we inflationary and mix lower and by was

previously, years, decline transportation a to noted expenses, which these by last inflation around over we which labor seen the More As pressures cost of was partially the and from attenuation experienced costs. in have across observed we driven have particularly year-over-year. primarily some has XX% three recently, diesel, transportation, reductions

optimize across are and we and our mitigate pressures. we will longer efficiency term by expect help automation, seeking leveraging cost which addition, to operational organic constantly In processes the technology drive

investment focusing significant believe to technology positioned have last customers. Finally, margins employees our demand we We in and pursue appropriately costs discipline, to while a service investment the our capital estate, and meet an over scale increase to we direct of on can to our ensure as the experienced increases portion investment this we in support we of customers. time a our consistent our real labor for XX we best-in-class as months, on continue as are logistics over to assets and viewed return

spend million observed scale in QX expenses general quarter from to that that for be increases was an I'd term combination cost million. highlight infrastructure. and can show our and and expense in administrative revenue the $XXX of our million, impact can the The to of have from trends G&A this, year trend as operating G&A $X up depreciation. longer XX% quarter. moderate corporate would effect mentioned be excluding more non-recurring legal the increased percent GAAP last drove revenue, while excluding strong benefiting period-to-period. volatile to downward growth like a the by in increase G&A are X.X% a which compensation of the we of income G&A our The been on than in stock-based $X Turning of we Its QX.

Third million, quarter income tax rate. tax reflects which was effective expense $XX a XX%

XX% Finally, net $XXX third or income per diluted increased common million quarter share. to about GAAP $X.XX

X% X% charities, global and units wholesalers by per the comprised and U.S. excluding when of units excluding that like inventory. low inventory global and value X% last over of or inventory nearly from increase year is value increased international when inventory XX% Our at a April year-over-year increased of end low X%, for

liquidity our financial to and position. Turning

comprised quarter liquidity Our stood of is in billion equivalents cash $X.X capacity under of and end, at facility our billion billion. cash credit of $X.X and revolving $X.X as our over which

we XX% flow of increase period. of is an generated prior Year-to-date, cash $X the year have billion, which operating over from

addition, expansion. have to this ministers in million attributable nearly XX% infrastructure, $XXX In our capital over of capacity amount invested physical we with primarily

take CapEx, cash $XXX you our of we've generated if million year-to-date, Finally, flow. nearly free less flow cash operating

include Given growth technology new financial These logistics to continuing our our acquisition, platform. yard meet investments intend needs. expansion, position, our on to business customers' strong and invest our we and in for yard

a investments in we serve the necessary outlined as ensuring future Jeff detail, have to these as of historical our believe differentiated provider, that Copart growth. have And that types capacity industry's service we while

And some We'd remarks. be to questions. take that prepared our concludes happy

Operator

you. Thank

Instructions] be [Operator session. will question-and-answer you. conducting We Thank now a

Please with Our first from proceed CJS. question. question is Labick your with Bob

Bob Labick

Congratulations on great Good another afternoon. quarter.

Jeff Liaw

Thanks, Bob.

Bob Labick

thinking you've balance kind the successfully wanted there and car, Or -- just there organically you area and whole something adding? about generally about products chase then that rapidly you Are on start, that there an like generally it? build features you're then this as little of into? a out commercial is into touched are but things thinking things particularly blue or on given car, two the the And on this those M&A? for touched how via an a how new keep or cash opportunities M&A you new there you and expanding expanding new focused the I these to you're areas. are is bit, dealer Are opportunity

Jeff Liaw

Appreciate it. question, Got the Bob.

the separate for I'd balance, that question. cash As

in been unlevered -- the effectively we've I think our a haven't company constrained long we capital been for that se time. per sense an

There power six So years prospects MPA it And our sports financial we've to into form arena. had some clients. what of almost are products sure. does our organic done wherewithal institutions the have in insurance compelling nuance financial part our ago. a we have That's and require different take companies. bank so, expand acquire have We fact, the growth does five, that To nuance acquisition now do including on distinctions. are approaches with technology serving to the and investments from for of we think for are

benefit liquidity grows both though, is and a Ultimately the as just apparent, parties result. both the to base is buyer for enhanced because the

capabilities So we've to I valuation very are we that front meet acquisition the to think we'd at our itself accelerates it. that a the on we always growth applied. consider and organically opportunity if I bar enhances investing were have compelling those think right that evaluate present high But same

Bob Labick

buyers finding I Are to car are whole base marketing to base, And you? core everyone but great. you obviously and Are then you getting of benefits with they are kind they them they the how you blue you sticking are is are buyer whatnot. kind go, or buyer coming, same as these or buyers How particular the the into you? expansion just growing it your Okay, is organic? And or new different? as coming know are car it of this which

Jeff Liaw

both. much Very

we think liquid I a this marketplace. So are point at well-known

So Copart. of us proactively available and be us, informed may we and newer folks approach specific portfolio who certainly, But come folks but aware of of now emerging the context that in think at to vehicles we one us.

So it both. much is very

Bob Labick

Got Super. it.

back jump queue. in Thanks. I'll Okay.

Jeff Liaw

Thanks, Bob.

Operator

you. Thank

Dan from proceed Please is your Stephens. Our with with next Imbro question. question

Dan Imbro

the into you've how here, been Yes. of SEO new from talking you acquisition, are inning Maybe kind Hey, of start, then kind deeper at the customers you I of markets deep captured? couple in, around these Bob's and follow-up on fruit has when on question coming of long-term in and question. customer to like risk Thanks. A some low brought that everybody. how the you've I the look to growing little years, much on And keep those what platform on taking to moats is morning, Maybe want international buyer, mean, good focused bit there Copart's competition versus maybe we markets, the new built in? in them guess of are customers? these hanging base. new growing been these for of buyer Curious I this about more international a Jeff,

Jeff Liaw

specifically. think you the of And vehicles, our mean platforms. other well-known course, there I and to to them, other are, buyers Daniel, members buy places of including some auction

has which compelling the noninsurance grown comments your -- buyer years Our loss time, were modification we've international evolving not the frequency, cars means we the That's or years. by pursuit think, one correction in endeavor. less naturally total is grown a arena happens ago. just them past The sellers liquidity, I'd become been vehicles part and to are has expansion that better as than pursue our vehicles in I and the into for over driven platform damaged couple it's of more total enroll XX to well make of the been in a from mix has as that base. so rising It decade-long of cars to

in by say first that high of older, fastest-growing they the and buy will our or those to neither them. Cars Western people population more increasingly established we in have I'd in remains the in the second remains U.S., Japan, that where perhaps to outpace are in countries will growth cetera, mobility. the the where a the economies the because damage provide vehicles low continue baseball inning et terms analogy, destination perhaps vehicles the Canada, -- still -- economies very auctions we're in very operate economies countries demand origin perhaps divided Europe,

Daniel Imbro

capital is this And maybe the early is countries, if a one new done in on That's growth cost you capital-intensive some on this? doing about guess, big to continue investment we're country? I is there helpful. of to lounges. a I like follow-up think innings? Or How as that. still what you've know Copart enter it I journey

Jeffrey Liaw

between sense expanding we new a there are draw a internationally in I country. auctions operating in distinction the Yes. that

loaders build so systems and and is hire forth That well people ago, and trucks if has intensive date the there to and capital-intensive, acquire we've we had our entered I now ultimately outset. have and been capital land that sense acquire So that at my investment straight, serve in market. the rewarding its nature, very capital XX-years as U.K. and intensive the to by the

As far new our it. it on is but and third-party the also the that of and resources of SEM in you're spending internal describing as and capital-intensive. in se expenditures capital sort, It does attracting SEO investment per that buyers sense not requires form not meaningful from buyers require in countries, bandwidth, new that

Daniel Imbro

one super I helpful. Leah. Great. in That's just for more And squeeze

the mentioned falling You at the there, end transportation cost.

year, I last headwind was maybe industry. that the a think about big on

prices know how should become those through. less come your I'm transportation, that. some look you've the to that a the past As gross own gross gross you Does service But think I when owned maybe we we flowing expansion? tailwind margin margins guys' margin? view down, directly curious it's how that about during of at quarter impacting so

Leah Stearns

the Yes, was margin sequential benefit that a definitely improvement. on

that and a around cost beginning to to come a towing other the transportation down, ago, the Certainly, would of transportation from capabilities see continue big nice then that low our would diesel around flow which inflationary some we as year through availability. we're of was margin remain is prices expect logistics and should elements pressures so to the that see, the our perspective. benefit. be I of that So to see labor of and labor costs investments That a on benefit continue pressure get we and a about

Jeff Liaw

opposed having as reverted pre-COVID cost Daniel, to resembling stabilized characterize norms. I'd transportation broadly, anything to as

And the abating it pressure, but has is certainly inflationary not I so stabilizing, think, or reverted.

Dan Imbro

guys luck best Appreciate all [Indiscernible]. color. the And of

Jeff Liaw

thank Yes, you.

Operator

you. Thank

Kennison question Please from Craig Baird. your next with question. is Our proceed with

Craig Kennison

you new call wanted good what Thank call taking Hey, the to what appreciate Leah. the appreciate worth. new worth. conference dig my ASP, it’s for time question. conference time afternoon. to into it's I I And I for

the was said if down closed, ASP down Last Manheim that another you ASP maybe mix down recall, wondering was or I flat on were gap you Manheim versus the in I'm little if environment a think of dynamic? it quarter, X%. bit I why that XX%. a function Index

Leah Stearns

Yes. No.

board of drivers about quarter-to-quarter, down hard In that is that X.X%. driven to what's ASPs And through U.S., units exact we Manheim that there's coming down the an important that to by I static that the It's pinpoint are obviously have again, across it. and mix. compared at So on X% And Index. certainly measured our But through the was of the that saw appreciate think Index. is are most of was X.X%. mix decline Manheim we auctions set a vehicles to of fairly being that evolving a

there I less those correlation is of you've than observed today think a So historically what between two. do

Craig Kennison

a That's then marketplaces your powersports Harley-Davidson And extent on opportunity? call from what or helpful. repossessions Are then our business? it, Polaris impacting NPA. you volume I'll Powersports from new, uptick Auction or question in And National that you. Thank in volume captive an seeing to from

Jeff Liaw

in I'd not function repo that say yet of question, a terms in changes think step modest I the regard. increase,

general, and values in light vehicles, softened. powersports have think vehicle in though I

that us. can the well. se time question over trend think the is captive I the affected most change Harley not remain for What The marketplace in as your money, next though was per -- having part, question. loans

the and perform related the I of and well, bikes sources other continues. continues think powersports business to

Craig Kennison

you. thank Alright,

Jeff Liaw

Thanks, Craig.

Operator

you. Thank

your from is Please Paribas. with with question BNP Chris next question. Our Bottiglieri proceed

Chris Bottiglieri

thanks for questions. taking Hey, the

your your show kind with with -- comment insurers. might from I on the one, of that follow-up did you First trade the

that nearly not the was time dollars So like I proceeds. of of want half think percentage sounds that's there anyway, the but the it this are spent cars what to being application on several are thousand happens, totaled that sure

getting rates use I on So advanced what to the revenue, your that the relative XX% kind total what's be? loss elasticity of Like of Like quicker. the lower companies cost data would impact make decisions what guess insurance did mean? on that would to

Jeff Liaw

touch I Chris. of So strong Yes, I of many dollars are the is say think and companies repair touched the dollars Copart to that it's been charges that arguably insurance employees That that range, behalf otherwise. majority and advanced serious Copart a of money paying to sold directly shops is in any title been of require question, right? an intervention. hundreds fair could have and having their insurance that anyone companies the was sells multiple frankly, cars towed vehicles own and it on that it the of The did on have the not have to cars towing would companies, illustration. as see ever them without processed thousands well

insurance So opportunity is our for the economic massive. there companies

view long-standing And even varying of they there line and think think now the over with the cars think terms to possible, there's as their a of I a grow cars, say take their I engaged we is very when it so them on changed in industry vehicles, I business has past degrees the that and ability the eight I handle to which their policyholders would that thinking back. repair will to attached of XX a lot course over evolving people various seriously grow well. change next own change And we is are to think initiatives bias, them and that and flexibility to way attached years, their want right? processes. long-held

And so will mindset the default repair change.

total forgo about frequency specific the your question could it, loss still frequency, waste you if loss of system. that for would better in total therefore, total be yes. economics And drive the affects loss all up, As could how it

for the the company. good for of substantial. are here say portion about robust It a of a except insurance claims elasticity, portion economics the I to totaled we're quarter comment an is the that to of a is think very cost terms -- on, ultimate car talking In

Chris Bottiglieri

ask recently. about point the volatile used up back pricing inflection it to like you hit just been car to this want mean softened. rates has pick seems where you. I loss prices then starting more got as were total Got And to I car again

I think net the do like corner through multi-month appreciate sequentially of total to depreciating. risk started again, trunk kind went period Or small there just of rates we car a of that? loss think all we've saw? a with we're But given keep prices that now what's where you Like a actually appreciation building? as kind the now hit like is pocket any see air we just you just

Jeff Liaw

I management think to be like fair, Chris, think blips month-to-month quarter-to-quarter make we don't we know or that. I don't on decisions don't operational

think the lot bet money meaningfully loss higher. I trend, the in what I will or quarter But that year in the be five a three. two that's of years, rate or five next frequency happens total

volatility in career your we terms think cite over mine is the and past what in three I the years. unprecedented of observed you

generally So certainly loss derivative expect but forecasting think where from over effects total we it's we rise forever, horizon. and to assignment the But been that on appreciable sit. over frequency volume, to our I any next do tough

Chris Bottiglieri

Got it, okay. Thank you.

Operator

you. Thank

Our from with is next Bret question. Jefferies. Jordan with your proceed Please question

Bret Jordan

afternoon, good guys. Hey,

Jeff Liaw

Bret. Hey,

Bret Jordan

question. Quick

that something you're interaction. called including of that peer just payoff some that's human is Is involve automated? product, automated same services, the that you systems something payoff. the your having think insurance that bank as something the is sort developing and and your was on I I didn't integrated that's into offering? guys Or what And loan you're think out of loan

Jeff Liaw

institution is think a the very In appreciate, as And I you think fragmented. financial I yes, universe, Bret. word,

claims. are So so auto do, you require there are of are calls lending, who which that phone credit settle technologically no which faxes advanced forth in some of literally tiny of thousands and some and what matter and lenders participate to unions

of integration. digital I forefront think we are at the the

fact, to although their certain integrators, I months example. partnerships with in with or the Dealertrack, others nine in actually think, engagement for industry even six started may with announced prior have And them, we'd

letters guarantee the forefront and are of obtaining in been loan of and services So and the the servicing balance we and that paying forefront the it. loan the come other of have offerings at we balance, that payoff at with ancillary

much the given of the in So at that. forefront as financial of degrees among highly we're I'd nature institutions. I as be, think can sophistication you technological varying say fragmented

Bret Jordan

Great. And then a quick question international. on

gaining takes saw unit Could think you I what it us you the and on about talk is traction? of Maybe addition give the Germany Spain? Is international markets and XX% some growth. Finland puts volumes.

Jeff Liaw

into nitty-gritty, capture including the the we're U.K. And the without for say both as I'd growth consistently as example, the experiencing across long-time and growth to where our market markets countries, share incumbent getting trends like. experiencing Yes. and like Brazil, due overall we're in like enough and much. then newly are the they more new -- so don't by emerging their Finland, are our to speak, nature, or and markets, our They markets Germany -- growth. entered small Spain equation affect we growth experiencing that still that well

Bret Jordan

Okay, great. Thank you.

Operator

your Please [Operator Instructions] Our Research. proceed next Northcoast question. question is from with John Healy with

John Healy

my Thanks taking question. for

bit about Car opportunity. little the Just talk wanted a Blue to

business, actual running that standpoint, about thought of Just Or of the engaging? the with Thanks. thinking kind in terms business? auction is standpoint kind of the with one by from you any do there at about process you over a run from And just the are years? next As we technology side you sort kind you technology legacy of day of spend of like that it side few business? do complementary it look see about incremental auction dealers a how just or as might event insurance or what think platforming

Jeff Liaw

test do specific those you And John. imagine, appreciate question, we it. Got those as notions. I AD questions. are good And might to the

cars facilities. increasingly twice in each appended weekly or the stand-alone off are or a are products So in better at to existing region own auctions Copart certain their country auctions or certain virtually the across of that our

So question do superior best is what would returns. test we'll sellers. economic for we those outcomes ultimately, our be we how things. drive the for And The

have X be a I have be auction giant examples that rule that we highly or we of think both. must it definitive must it don't I of So thumb specialized. would say

continue So our stand-alone basis. to operate on NPA a auctions

big types weekly, to Grand for that, out of actions the big product that Dallas twice products continue our that sell in think, auctions Prairie might we Our Yard of run, facility. that example, include most I

well both, function and we the just That's see outcomes. I and we So a very could time. observe of think observed evolve behavior over

John Healy

platforms sense. deal thought just you're the auction one XX it repo since seeing big makes kind might real estate, And months the mousetrap about on the high any, as be house Because a or Curious that think No, in Sure. front? seems We're there? guys opportunities know, to I where well. of like those I guys upticks that with to you on closed don't as have then always that a be roughly know I whole if could value-added of ADESA when in with question everyone going their world. RFP out in Carvana position sizable car is

Jeff Liaw

pretty question. good No,

see ADESA think sell I ones of other right we institutions, handled behalf win to by as folks on by financial well. including cars and cars to the opportunity including handled

perhaps noise but conversations circumstance not to prospective given some in course, with uniquely and that that So sellers. discussions so, press, is there rise obviously some of specific has

John Healy

you. thank Okay,

Jeff Liaw

John. Thanks,

Operator

you. Thank

is Barrington Prestopino your proceed question. Gary Research. with Please Our with from next question

Gary Prestopino

up and X% enough, you doing. write Hey, were but Hey you Leah, couldn't U.S. the this did XX% Leah. internationally? in Hey, Jeff. I How say are units down fast

Leah Stearns

XX% X% and X%, believe, internationally. excluding and up I were Units value, up were or they -- they up Yes. XX% low were

Sorry, XX% internationally.

Gary Prestopino

were Okay. What on basis, a -- what XX% internationally. up? combined units the

Leah Stearns

repeat Gary? can that, you Sorry,

Gary Prestopino

were up combined a units basis the international, and between year-over-year? U.S. what On

Leah Stearns

X%. was up Combined

Gary Prestopino

just salvage start your with kind of meetings there decreased then, it thinking. a is they're Or you really Jeff, for you had companies times, addressing? that insurance And insurance that feel new cycle up cropped customers, the maybe returns? what get to want was still want any I issues really Okay. to increased that in

Jeff Liaw

not in than talk to evolutionary the every more we our sense, day. it's customers that literally think Gary, I

going aren't to be an thinking any opportunity the event new consensus what But that. dropped that bombs it's there I more views So a think to on priorities gather some to like nice are. of and crystallize

That's times, perform for on the past probably Copart the lay so them I we've on of sure, more in of sure, introductory to remarks, work I services years. leads think noted couple And over biggest to returns. have to the as for their more seen them. want front pressure salvage us theme emerging the And people cycle for that

a virtual customers. we've inspection have across very we many services in dramatic our adoption the uptick of that So seen

Gary Prestopino

you. Thank

Operator

time. you. Jeff to no close. hand to back the to at further I'd are Thank like this Liaw There over questions floor

Jeff Liaw

and you, Great. quarter. us, for joining everyone, to next we'll you Well, talk thank

Leah Stearns

you. Thank

Operator

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

Copart (CPRT) 17 May 232023 Q3 Earnings call transcript