COPART INC

Results of Operations

The following table shows certain data from our consolidated statements of income expressed as a percentage of total service revenues and vehicle sales for the three and six months ended January 31, 2025 and 2024:

Comparison of the Three and Six Months Ended January 31, 2025 and 2024

The following table presents a comparison of service revenues for the three and six months ended January 31, 2025 and 2024:

Service Revenues. The increase in service revenues during the three months ended January 31, 2025 of $129.5 million, or 15.0%, as compared to the same period last year resulted from (i) an increase in the U.S. of $112.1 million and (ii) an increase in International of $17.4 million. The growth in the U.S. was driven primarily by an increase in volume and an increase in revenue per car. The growth in International, after excluding negative fluctuations in currency exchange rates of $3.5 million, was driven primarily by an increase in revenue per car and an increase in volume.

The increase in service revenues during the six months ended January 31, 2025 of $256.3 million, or 14.9%, as compared to the same period last year resulted from (i) an increase in the U.S. of $209.6 million and (ii) an increase in International of $46.8 million. The growth in the U.S. was driven primarily by an increase in volume and an increase in revenue per car. The growth in International, after excluding negative fluctuations in currency exchange rates of $1.5 million, was driven primarily by an increase in volume and an increase in revenue per car.

The following table presents a comparison of vehicle sales for the three and six months ended January 31, 2025 and 2024:

Vehicle Sales. The increase in vehicle sales for the three months ended January 31, 2025 of $13.6 million, or 8.6%, as compared to the same period last year, resulted from (i) an increase in the U.S. of $32.0 million and (ii) a decrease in International of $18.4 million. The increase in the U.S. was primarily driven by an increase in volume and an increase in revenue per car. The decrease in International, after excluding negative fluctuations in currency exchange rates of $1.2 million, was primarily driven by a decrease in revenue per car due to lower auction selling prices, which we believe was due to change in mix of vehicles sold, and a decrease in volume related to sellers switching to consignment model.

The increase in vehicle sales for the six months ended January 31, 2025 of $13.2 million, or 4.1%, as compared to the same period last year, resulted from (i) an increase in the U.S. of $41.2 million and (ii) a decrease in International of $27.9 million. The increase in the U.S. was primarily driven by an increase in volume and increase in revenue per car. The decrease in International, after excluding positive fluctuations in currency exchange rates of $1.4 million, was primarily driven by a decrease in revenue per car due to lower auction selling prices, which we believe was due to change in mix of vehicles sold, offset by an increase in volume.

The following table presents a comparison of facility operations expenses for the three and six months ended January 31, 2025 and 2024:

Facility Operations Expenses. The increase in facility operations expense for the three months ended January 31, 2025 of $80.9 million, or 19.8%, as compared to the same period last year resulted from (i) an increase in the U.S. of $75.1 million, and (ii) an increase in International of $5.7 million. The increase in the U.S. compared to the same period last year related to an increase in volume, and an increase in non-CAT subhaul, labor, employee benefits, facility costs, and auction related expenses combined with one time CAT costs of $27 million associated with hurricanes Helene and Milton. The increase in International, after excluding positive fluctuations in currency exchange rate of $1.9 million, was the result of an increase in volume and an increase in cost to process a car. Included in facility operations expenses were depreciation and amortization expenses. The increase in facility operations depreciation and amortization expenses during the three months ended January 31, 2025 as compared to the same period last year resulted primarily from depreciating new and expanded facilities placed into service in the U.S and International.

The increase in facility operations expense for the six months ended January 31, 2025 of $168.9 million, or 20.7%, as compared to the same period last year resulted from (i) an increase in the U.S. of $149.2 million, and (ii) an increase in International of $19.8 million. The increase in the U.S. compared to the same period last year related to an increase in volume, and an increase in non-CAT related subhaul, labor, facility costs, and employee benefits combined with one time CAT costs of $56 million associated with hurricanes Helene and Milton. These costs are related to subhaul, labor costs incurred from overtime, increase of security costs, and increased travel and lodging. The increase in International, after excluding positive fluctuations in currency exchange rate of $0.5 million, was the result of an increase in volume and an increase in cost to process a car. Included in facility operations expenses were depreciation and amortization expenses. The increase in facility operations depreciation and amortization expenses during the six months ended January 31, 2025 as compared to the same period last year resulted primarily from depreciating new and expanded facilities placed into service in the U.S and international.

The following table presents a comparison of cost of vehicle sales for the three and six months ended January 31, 2025 and 2024:

Cost of Vehicle Sales. The increase in cost of vehicle sales for the three months ended January 31, 2025 of $0.9 million, or 0.6%, as compared to the same period last year resulted from (i) an increase in the U.S. of $22.7 million and (ii) a decrease in International of $21.8 million. The increase in the U.S. was primarily the result of an increase in volume. The decrease in International after excluding the positive fluctuations of currency exchange rates of $1.1 million, was primarily due to a lower average purchase price due to a change in the mix of vehicles sold, combined with a decrease in volume related to sellers switching to consignment model.

The decrease in cost of vehicle sales for the six months ended January 31, 2025 of $8.8 million, or 3.0%, as compared to the same period last year resulted from (i) an increase in the U.S. of $26.9 million and (ii) a decrease in International of $35.8 million. The increase in the U.S.was primarily the result of an increase in volume, offset by a lower average purchase price due to change in the mix of vehicles sold. The decrease in International after excluding the negative fluctuations of currency exchange rates of $1.0 million, was primarily due to a lower average purchase price due to a change in the mix of vehicles sold, offset by an increase in volume.

The following table presents a comparison of general and administrative expenses for the three and six months ended January 31, 2025 and 2024:

General and Administrative Expenses. The increase in general and administrative expenses for the three months ended January 31, 2025 of $15.1 million, or 17.9%, as compared to the same period last year resulted from (i) an increase in the U.S of $17.8 million and (ii) a decrease in International of $2.7 million. Excluding depreciation and amortization, the increase in the U.S. of $16.6 million resulted primarily from increases in third party outside services (including legal, compliance, and system implementations), labor costs (as a result of investment in the business and the expansion of our sales force), and travel. The decrease in International of $2.7 million after excluding the positive fluctuations in currency exchange rates of $0.4 million, resulted primarily from decrease in legal expenses, offset by an increase in bank charges. Depreciation and amortization expenses for the three months ended January 31, 2025 as compared to the same period last year slightly increased as result of the addition of new technology assets being placed in service in the U.S.

The increase in general and administrative expenses for the six months ended January 31, 2025 of $52.2 million, or 34.1%, as compared to the same period last year resulted from (i) an increase in the U.S of $53.3 million and (ii) a decrease in International of $1.1 million. Excluding depreciation and amortization, the increase in the U.S. of $50.1 million resulted primarily from increases in third party outside services (including legal, compliance, and system implementations), labor costs (as a result of investment in the business and the expansion of our sales force), and travel. The decrease in International of $1.1 million, after excluding the positive fluctuations in currency exchange rates of $0.2 million, resulted primarily from decrease in legal costs offset by increase in labor costs, advertising, computer software and bank charges. Depreciation and amortization expenses for the six months ended January 31, 2025 as compared to the same period last year slightly increased as result of the addition of new intangible assets and technology assets being placed in service in the U.S. and Internationally.

The following table summarizes total other income (expense) for the three and six months ended January 31, 2025 and 2024:

Other Income (Expense). The increase in total other income for the three months ended January 31, 2025 of $6.0 million, or 19.4%, as compared to the same period last year was primarily due to higher interest income earned from U.S. Treasury Bills.

The increase in total other income for the six months ended January 31, 2025 of $23.0 million, or 39.1%, as compared to the same period last year was primarily due to higher interest income earned from U.S. Treasury Bills.

The following table summarizes income taxes for the three and six months ended January 31, 2025 and 2024:

Income Taxes. Our effective income tax rates were 16.5% and 20.8% for the three months ended January 31, 2025 and 2024, respectively, and 18.2% and 21.1% for the six months ended January 31, 2025 and 2024, respectively. The effective tax rates in the current and prior year were impacted by the recognition of excess tax benefits from stock-based compensation. The recognition of excess tax benefits from the exercise of employee stock options was $23.7 million and $4.6 million for the three months ended January 31, 2025 and 2024, respectively, and $28.3 million and $5.7 million for the six months ended January 31, 2025 and 2024, respectively.