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 months ended October 31, 2024 and 2023:

Comparison of the Three Months Ended October 31, 2024 and 2023

The following table presents a comparison of service revenues for the three months ended October 31, 2024 and 2023:

Service Revenues. The increase in service revenues during the three months ended October 31, 2024 of $126.8 million, or 14.8%, as compared to the same period last year resulted from (i) an increase in the U.S. of $97.5 million and (ii) an increase in International of $29.3 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 positive fluctuations in currency exchange rates of $2.1 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 months ended October 31, 2024 and 2023:

Vehicle Sales. The decrease in vehicle sales for the three months ended October 31, 2024 of $0.4 million, or 0.2%, as compared to the same period last year, resulted from (i) an increase in the U.S. of $9.2 million and (ii) a decrease in International of $9.6 million. The increase in the U.S. was primarily driven by an increase in volume. The decrease in international, after excluding positive fluctuations in currency exchange rates of $2.6 million, was primarily driven by a decrease in revenue per car due to lower auction selling prices, which we believe is 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 months ended October 31, 2024 and 2023:

Facility Operations Expenses. The increase in facility operations expense for the three months ended October 31, 2024 of $88.0 million, or 21.6%, as compared to the same period last year resulted from (i) an increase in the U.S. of $74.0 million, and (ii) an increase in International of $14.0 million. The increase in the U.S. compared to the same period last year relates 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 $29 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 negative fluctuations in currency exchange rate of $1.7 million, is 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 October 31, 2024 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 months ended October 31, 2024 and 2023:

Cost of Vehicle Sales. The decrease in cost of vehicle sales for the three months ended October 31, 2024 of $9.7 million, or 6.6%, as compared to the same period last year resulted from (i) an increase in the U.S. of $4.3 million and (ii) a decrease in International of $14.0 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 $2.1 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 months ended October 31, 2024 and 2023:

General and Administrative Expenses. The increase in general and administrative expenses for the three months ended October 31, 2024 of $37.1 million, or 54.0%, as compared to the same period last year resulted from (i) an increase in the U.S of $35.6 million and (ii) an increase in International of $1.5 million. Excluding depreciation and amortization, the increase in the U.S. of $33.5 million resulted primarily from increases in third party outside services including legal, compliance, and system implementations, labor costs, advertising, and travel. The increase in International of $1.5 million after excluding the negative fluctuations in currency exchange rates of $0.3 million, resulted primarily from increase in labor costs, advertising, and bank charges. Depreciation and amortization expenses for the three months ended October 31, 2024 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 expense for the three months ended October 31, 2024 and 2023:

Other Income (Expense). The increase in total other income for the three months ended October 31, 2024 of $17.0 million 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 months ended October 31, 2024 and 2023:

Income Taxes. Our effective income tax rates were 20.0% and 21.4% for the three months ended October 31, 2024 and 2023, 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 is $4.6 million and $0.8 million for the three months ended October 31, 2024 and 2023, respectively.