Copart FY 4Q15 Earnings Call Notes

Jay Adair – CEO

ASPs declining thanks to lower scrap metal prices and strong dollar

“We did start off the year with significantly higher ASPs, or average selling prices, of cars and we saw those average selling prices come down from Q1 to Q2 all the way to the end of the year. So there were some unanticipated headwinds that we faced in that because as vehicle sale price sells for less we end up generating less revenue on a per unit sold. We believe the primary driver of this was the decrease in scrap and the lower scrap prices basically caused buyers to pay less for the cars that we were auctioning off. In addition to that we would throw in the strengthening of the U.S. dollar that took place during the same time frame in the last fiscal year, again making it harder for international buyers to pay as much at auction for vehicles that we were selling.”

5 teslas were sold to buyers in Ukraine

“We had five Teslas that we sold this year to buyers in Ukraine. I thought that was interesting that they are buying those types of vehicles and it just really speaks to the power of VB3 and our technology and our ability to drive results even in the face of those headwinds that we talked about in the form of low scrap prices and the U.S. dollar.”

Average age of vehicles they are selling has been increasing

“the average age rather of vehicles that were selling in 2008 that average vehicle age was 8.6 years, in 2011 it’s grown to 9.7 and it is currently in 2015, 11.4. We believe that’s going to drive additional unit volume as it has in the past as vehicles are ageing”