Copart, Inc. (NASDAQ:CPRT) Q4 2024 Earnings Conference Call September 4, 2024 5:30 PM ET

Company Participants

Jeff Liaw - Chief Executive Officer
Leah Stearns - Chief Financial Officer

Conference Call Participants

Bob Labick - CJS Securities
John Healy - Northcoast Research
Craig Kennison - Robert W. Baird & Co.
Chris Bottiglieri - Exane BNP Paribas
Bret Jordan - Jefferies
Jash Patwa - JPMorgan

Operator

Good day, everyone, and welcome to the Copart Incorporated Fourth 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 securities 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 CEO, Jeff Liaw.

Jeff Liaw

Thank you, Owen and good evening. We're pleased to report our results for the fourth quarter of fiscal '24 and the conclusion of another successful fiscal year for our customers and for Copart. I'll begin with a few comments on our business before handing the call to Leah to review our financial results in greater detail. And then she and I will take your questions.

Turning first to the Insurance industry. We continue to grow our business with insurance sellers of 6% year-over-year, a reflection of our compelling and growing service offerings and industry-leading auction liquidity. The recent decline in used vehicle values, in particular, has driven total loss frequency upwards back in line with pre-pandemic historical norms.

During our fourth fiscal quarter 2024, we observed an 8.6% year-over-year decline in the Manheim Used Vehicle Value Index. As Leah will more fully describe later in her comments, our insurance company's selling prices significantly outpaced those of the broader used vehicle market. All indications are that the long-term trends in the repair industry towards increasing vehicle complexity, as measured, for example, by the average number of parts to repair a vehicle as well as rising labor rates continue to tip the scales in favor of totaling vehicles rather than repairing them.