Copart, Inc. (NASDAQ:CPRT) Q1 2024 Earnings Conference Call November 16, 2023 5:30 PM ET
Company Participants
Jeff Liaw - Co-Chief Executive Officer
Leah Stearns - Chief Financial Officer
Conference Call Participants
Bob Labick - CJS Securities
Craig Kennison - Baird
Daniel Imbro - Stephens
Bret Jordan - Jefferies
John Healy - Northcoast Research
Chris Bottiglieri - BNP Paribas
Ryan Brinkman - JP Morgan
Operator
Good day, everyone, and welcome to the Copart Incorporated First Quarter Fiscal 2024 Earnings Call. Just a reminder, today's conference is being recorded.
Before turning the call over to management, I will share Copart's Safe Harbor Statement. The company's comments today include forward-looking statements within the meaning of Federal Security Laws, including management's current views with respect to trends, opportunities, and uncertainties in the company's markets.
These forward-looking statements involve substantial risks and uncertainties. For more detail on the risks associated with the company's business, we refer you to the section titled Risk Factors in the company's annual report on Form 10-K for the year ended July 31, 2023, and each of the company's subsequent quarterly reports on Form 10-Q. Any forward-looking statements are made as of today, and the company has no obligation to update or revise any forward-looking statements.
I'll now turn the call over to the company's Co-CEO, Jeff Liaw. Please go ahead, Jeff.
Jeff Liaw
Good evening. Welcome to the first quarter earnings call. Let me hand it to Leah briefly for the Safe Harbor.
Leah Stearns
Oh no, they already did that.
Jeff Liaw
Oh, they already did it, pardon. Well, let's dive in. I'll keep my comments brief. We'll highlight a few recurring themes that you've heard about – that you've heard previously before handing the call to Leah for a more in-depth look at the first quarter, and then we'll take your questions as well.
First, as for our insurance business, we continue to observe a rebound in total loss frequency in the quarter. As you may recall, total loss frequency troughed at just north of 17% in the second calendar quarter of 2022, and it is now 19.3%, according to CCC, in the third calendar quarter of 2023.
You'll note though, that today's total loss frequency remains substantially below pre-COVID highs of 21.7% in the fourth calendar quarter of 2020. We continue to believe the total loss frequency will revert in time to historical levels and eventually well beyond in keeping with all recorded history on this statistic.