Copart, Inc. (CPRT) Q2 2023 Earnings Call Transcript

For the period ending January 31, 2023

February 21, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to the Copart, Incorporated Second Quarter Fiscal 2023 Earnings Call. Just a reminder, today's conference is being recorded.

For opening remarks, I would like to turn the call over to Jeff Liaw, Co-CEO of Copart Incorporated. Please go ahead, sir.

Jeff Liaw - Co-CEO

Thank you, Maria. Good morning, everyone, and welcome to our second quarter call and thanks for joining us. I’ll actually start briefly with the Safe Harbor.

Good morning. During today's call, we'll discuss certain non-GAAP measures, including adjustments to income tax benefits related to stock-based compensation. We provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures on our Investor Relations Web site and in our press release issued yesterday. We believe these non-GAAP measures, together with the corresponding GAAP measures, are relevant in analyzing our results and assessing our business trends and performance.

In addition, our comments today include forward-looking statements within the meaning of federal securities laws, including management's current views with respect to trends, opportunities and uncertainties in our markets. These forward-looking statements involve substantial risks and uncertainties. For more detail on the risks associated with our business, we refer you to the section titled Risk Factors in our annual report on Form 10-K for the year ended July 31, 2022, and each of our subsequent quarterly reports on Form 10-Q. Any forward-looking statements are made as of today, and we have no obligation to update or revise any forward-looking statements.

With that, I wanted to start today by introducing our new Chief Financial Officer, Leah Stearns, who will provide additional data and context in a few minutes as well. We're very excited to have her join the leadership team here at Copart after an expansive search. We hired Leah for the richness and relevance of her prior experience, both at CBRE and American Tower, two industry leaders and public companies in their own right. She has experience with institutional customers, complex regulatory environments, real estate certainly as well, and brings exceptional analytical capabilities and leadership skills as well. So we're very quite excited to have her on board.

I'll start my comments today starting with our customers. We aspire to be a customer-centric organization first and foremost. And I'll start with our insurance business. Our insurance customers certainly have experienced the rapidly changing industry environment now for three years with remote work volatility and driving patterns and across the board cost inflation. They've made a number of business process and personnel adaptations that in many cases have proven more durable than they’ve initially expected and now we think may persist forever. We have likewise adapted our business processes to help them navigate this environment, including providing more virtual inspection, loan payoff and title services and the like.