Copart (CPRT) 16 May 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to the Copart, Inc.

Third 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. substantial uncertainties. involve statements forward-looking risks and These

Form For company's the business, on XXXX, the and report section July the year with reports the risks associated on on annual we company's subsequent Risk each in more for XX, Factors the ended detail titled the XX-K company's refer quarterly of you to XX-Q. Form

turn to statements. are and the Jeff the no now obligation today, I to made forward-looking company any of update call as statements revise company's forward-looking Liaw. Any or over the will has CEO,

Thank business and you. XXXX. We're fiscal thank us I handing Leah to before she the Good our pleased evening, questions. for evening. of the and quarter I'll and the results, call provide for welcome, this and review results then third you will to everyone, some to brief financial your our report take about joining comments

We Insurance year, in our our capital clients to concluded in and XXth and recently about turning in the gather service we York programs. U.S. Annual feedback New face, our tech to opportunities offerings, person insurance from First, turn, which they investment solicit deployments our meeting Board City. business. challenges Advisory inform Every

our itself addressed marketplace, we launch auction of online the its length a refined escalating levers range liquidity, XXXX. of to exclusively year Some priorities fueled been our which them cycle and best-in-class this We repeatedly advanced at particular. in discussed included times available by claims, address to has since charges in

billions correspond vehicles of and to the of the sold. tens auction of that literally from tools of and millions application machine the base buyer from sellers with learning members interactions with global intelligence uniquely Our that data results

success, as NASDAQ public we spirit to the the hosted rang clients, the anniversary And celebration opening And of event shared bell. of company. a together in our XXth our with this our coincide with we

We insurance our clients. continue to grow our business with

while days, have elevated, a decreased repair in vehicle strong driving recent somewhat recovery anticipated, and steeply in and prices used frequency. continued costs new As remain loss total

quarter, Manheim observed XX% a fiscal X.X% Fast severity XXXX. calendar when compared value third accident the Track a to years the our index. decline is in in two for still year-over-year of so softening fourth vehicle of During prior. severity slight we Accident up almost quarter or And though same reported ISS the used quarter X%

in these forces, and two of recovery driven elevated vehicle used to a has prepandemic levels. industry frequency combination values to total due in The challenges repair back vehicle the decreasing complexity and costs repair labor loss

for all Per attractive the CCC, same up first loss XX.X% time XXX continue loss long-run XXXX and frequency to year economically long-term will at to total points make quarter carriers that calendar steady We across economically insurance the approximately continue with ago. trends total basis the less a believe lost to more them, repairing attractive upwards. vehicles path totaling versus categories, and vehicles frequency

of year frequency somewhat effect ago. insurance the but rest modest Our [ in vehicles growth effects exclude reduction increasing of storms, X.X% year-over-year ] the units as lapped that trends year have the given from a growth we U.S. was normalized Ian increased the activity, storm-related provide sold it to hesitant a of magnitude Hurricane a Ian and year-over-year volumes ago. of we're

in year And the did then weather Houston States, including smaller to Ian, the catastrophic to across so floods the and not our We events theme they major events area Nonetheless, affected of comparatively outbreaks Harvey. catastrophic magnitude like in the multiple and more storms responded the tornado Plains. United and IDA Central approach smaller last, these communities hurricanes, aggregate generally response this to of events. far

we to allowed team our events customers' serve the underscore to needs face throughout our in catastrophic Our and contributions communities the into the infrastructure and evolving to climate trends. these change resilience efficiently our us have investments respond of for promoting

as groups storms We ahead, research that serious are of storm many as Predicting also season year-over-year. major in a named over XXXX, XX% XX predicting note an increase

our the fleet preparedness. of in remains reserved ground, to proactive our Investing technology, As events. of dedicated teams major our for on the logistics a peak result, our vehicles our with focus course, handling come capacity our needs on acreage and

the On Persian catastrophic Southern ongoing flooding. the historical a effects to leveraging Gulf, United to clients States, our in capabilities our in similar ]who note, [ and we're outside the Brazil response continue support experience of

a pause well. for our as minute business I'll noninsurance on

In observed and Copart our to and XX%. fleet unit third dealer business, growth sold grow continue Likewise, combination auction we segment And fiscal Dealer Services volumes almost XX% powersports XX%. bank partners. the quarter, a NPA, our our finance almost our of platform and sales rental year-over-year increased We Blue of business by Car our volume, which unit serves to

excluding our volume, value XX% dealer told, All noninsurance and U.S. year-over-year. units low automotive and wholesale increased

earn and we buyers, Our vehicle, right of sell, our of commitment auction our liquidity. benefit increase to each still our to growth sellers additional automotive auction is of members With more world's options all we the old. our the result the attractiveness service to drawing the to to new the customer and our of platform and

distinctive as most the reflection our is I'll conclude with on of a reflection a single today publicly our a Perhaps first brief traded characteristic years horizon. Copart -- investment XX company.

ahead to well. as excellent anniversary, XXth work with XXth celebrate as our and to real We'll the quickly we of people, worldwide. ensure celebration clients results XXth and our as estate clients XXth always our have invest deliver to our to our our us to of prosperous in minds technology our we shipped continue Even our a

to that, our over I'll it turn CFO. Leah, And with

begin quarter our I'll third you, sales with Jeff. trends. Thank

benefit inventory sales the and share of global total growth over XX%, including This in of wave, the the from modest period. function unit the During increased a ago our year was partial X% quarter, of loss while a consolidation Purple recovery gains. increased frequency

fee consignment fee over continue units reflected over Focusing unit the constitute which unit volumes. of to business, unit U.S. our growth over unit vast of purchased U.S. X%, and of on or XX% our majority X% was growth growth

Insurance year-over-year. unit X% volume about increased

that to rental our the increased This from volume when in XX% outpace As cat growth which our over finance in Inventory excluding has XX%. nearly and and over which growth business. and came fleet of Jeff X% units, mentioned, increased U.S. units, X% dealer over substantially levels the noninsurance insurance continued units. increased unit volume value low in quarter

and unit over Turning over to increasing business. units saw with XX%, by of international We XX% XX%. units nearly increasing our fee purchase growth

ended over X% with levels ahead prior Our quarter international business year. the inventory of

used X% down from to ASPs by price X%. the in global international For XX% declined the U.S. less period, down ago vehicle our about and to ASPs the nearly show ASPs than X% the resilience index. about continue with Overall, year decrease insurance quarter, ASPs year-over-year Manheim compared

nearly financial revenue Global or XX% grew the to increased quarter. quarter. XX% increased service increased revenue Global grew primarily about revenue of for million third our for the results to or Turning $XXX third and million representing by almost XX% over XX%. to nearly the by volume. $X.XX U.S. for billion, service over $XXX growth revenue international due quarter, service

for vehicle over our profit $X profit increased million million and the towards quarter the a primarily gross purchased revenue vehicle XX%. over lower nearly trend sales was or increased $X purchased or X.X% mix units purchased by $X due in or vehicle million the up U.S. Global than less third shift In global gross almost This X%, while ASP million $X to was increased X%. or U.S.,

in results XX%. less vehicle $X These purchased Germany. than almost million Internationally, or margins decreased about units over by increased by while or by million higher driven X%, were revenue $X significantly gross purchased profit on primarily

profit XX.X% to $XX on U.S., $XXX infrastructure as XX gross XX.X%. the gross continue million, In the of our increased DNA gross million margin impactful our about profit most gross more with technology. Global points an to XX.X%. margin international of yard our margin driver increase profit X% to investments decreased margin than And focus or to basis and in decreased we to and increased approximately percentage being compression our over

depreciation, and of $XX more $X less general was an a compensation stock-based and than expenses, $XX administrative million reflecting increase million to in the basis. Turning excluding million, quarter sequential and on spend than

quarter, marketing, As sales, wave G&A over Purple consolidation well our functions, in an increase financial the as investments projects. we've of to our into past reflect results technology our the and as our year-over-year in related continues product highlighted increase third-party

implementations, kicked during we This relating which finance the and off X system our key function. increase to quarter includes HR

term. result more We investments greater long scalable expect leverage in us a with processes operating provide these the over and will systems and

$XXX increased to income X% million operating quarter common GAAP GAAP by or diluted to over income $X.XX X% increased and million, by net over per Finally, $XXX share. third

a actively income lower invested from over $XX benefited of of we rate as we well tax securities as quarter, into the as cash treasury have our incremental During effective XX.X%. interest million

capital our structure. to Turning

We billion empowering April, that operate [ clients. both facility investments horizon of for industry us comprised with nearly our securities, prioritizes in billion. business of to the our liquidity, which revolving $X.X and in conservative that to our success under ] competitive of we over cash our is advantage maturity our As capacity held credit of end billion $X.X capitalization distinct is of a and in had ourselves $X.X a believe our long-term and

operating flow. of generated flow $XXX we cash of and million quarter, the cash free million $XXX For over

enhance our all of and simultaneously while capacity real about with reducing consumption. to transportation expenditures and quarter to nearly the capital attributable Our costs were in corresponding $XX infrastructure million, expanding investments fuel estate our physical our

enable of past, assets of than truly Today, allocation [ into have auction As fleet more $XXX differentiates technology. our Copart. our estate capital deployed this of a the outstanding we and entirely delivering the acres ] months, of will portfolio, what in outdoor virtual focus of further decades XX services. technology Copart we approximately foundation XX,XXX development vehicle To I've robust last are transportation storage, strategy portfolio on over X highlighted global expect and lease our products real objective, the and to over million

happy Jeff take And be to with that, I would questions. and

[Operator Instructions].

first of line Our Labick from question Securities. CJS Bob with comes the

the just want success talked calls up about on car value, and general. on have a going being total dropping the impact salvage loss is the incremental salvage fact lot car. I used total frequency ASPs We've start rising Obviously, as previous the higher-end little into but a Manheim because car Index the the that -- of held with dealer question the about context. cars in So to there, your and

So the dropping, values and what's if Copart used as question your the any? for ASPs dealer is, car car are relationship

a Bob, question. fair

I -- some effects. there the are think natural

auto current well, conditions, seller better every align very in as market auction will with implications to rising think price environments. encounter new expectations I high begin conversion business right, is conversion as

those, don't vehicle increases is rapid generally we very large, and a a saw long-term we trend. for except by speaking, in when generally experience that 'XX, but So used XXXX, prices not

in the think overwhelmed effects modest volume unit some the near term, implications. But but are there I by

But our the So the would less for frequency because are the a dealer has expand. softer somewhat same that loss cars, we they relevant the the we relevant the excellent total than dealers prices cars basket on sell effects window have natural selling cards that year certainly well it some ago. continues for can -- for effects total as of to loss cars for for aperture, in secondary frequency would well do deliver rises results same address reason. of a dealer have as That the

part. if words, just year-over-year In flat in trending general loss And -- just you -- other Manheim ASPs now. -- mentioned Okay. how guess, if frequently equal? right are that total I else Great. was so all then, The

level into have of time? your if been Copart ASPs the arbitration ASPs? Index -- added the points. guys to trends at dealer you have more Manheim going has you've what been certain set And pushed your over inspection Or and to have up You . kind were obviously dealer,

is Bob, down I year-over-year. think XX% So Manheim about

Our over a X%. down units are just dealer little

mix think that we're to Jeff's a shift units. point, within on population I higher-value adding as is that's there going

is We buckets. type of to same used into the aren't ASP we're broader vehicle exposed headwinds the the higher that because overall index naturally growing

it's used Copart I'd never you been at to has auctions. say linear vehicle a followed never us perfectly been the long outcomes of Manheim in -- predictor both know And Bob, directions, index enough

improving very our among the over of think rising, ASP noninsurance our segment sell right. frequency outpaced generally same, quality mix performance doing moment we the the total reasons you and I -- mentioned that the Manheim the long haul, has growth cars a for ago, loss

but has have -- metrics decreased less of has certainly we prices then, always true. that's the even have Manheim the comparable But been period, than over misalignment our that same X

Got it.

Okay. last And for the one me.

other share. on see any as numbers are that. Just dealer Where finishing car up strong -- as now. for are obviously you We don't taking

coming be actually Is so market, growth going weren't the the of auction dealer it cars is -- from? So speak, the to scenes coming you kind to auctioned the before. getting cars? from from? cars like behind from growing Or those you're where it wholesale your these wholesaler market, Or is physical how auctions? of They meaning and by were just the a growth do you're view most where

I we of the think the universe you accurately for that competitors captured sell. vehicles

vehicles. unique. think, also the or sell of lot of on have aware at and that wholesalers on behalf can So But sell talking are take channels you're her as those through auction can can to can the at parties. the positions the who his sell other we insurance dealer well I sell certainly They cars car who as you're is in physical principal sell online -- And many different outlets. depending world, other about, a there for

Financial large, in hand sell, from know. Rental of sites them, you institutions set possibilities different own by sell cases, quasi operate don't they a retail companies, car afforded to have vehicles as and directly. which their they some

use will of. houses major the Some other you're aware auction

competitive we for are sellers. different types effectively, think the competing sure. against landscape different our And multidimensional noninsurance of is for cars I So for folks but

next comes Chris the of line Bottiglieri BNP. from question Our with

questions high-level one. for the start Perfect. X you. with I'll first

in be access how rates if loss about data. you've much access total talked So Jeff, higher insurers could full to to had the end-to-end past,

closer the ] you the given want and you monetize driving recent Like spoke the hires. So that are AI, I'm data conference some curious and how just executive loss-rate much path the better advancements of I on to to in some think [ better that of more decisions?

Yes, great question. a

XXXX provide total long assuredly increasing the on continue perhaps, will a to this time think front. right? So haul I think we're XX long haul. years on over the monotonic was frequency in X% I context commentary there's the of historical loss and We -- XXXX trend later, frequency was X%. still frequency in, to loss is loss some think we in the additional there it on over continue clear increase total over of it's XX%, today, that observe. Total pretty historical

loss for very total practices for even we a today, snapshot even note vehicles. As different across like insurance companies

And repairing are paying and extended In as the practices table rentals certainly so cars, they of who that the arguably repairs shouldn't. supplements money indicates there are they're form insurance well for the the the dispersion car by and leaving today delayed themselves. of companies as on rental

thumb, exceeds in intact And you insurance don't. right? say have if for a loss than you better to those individual loss as opposed any as them decisions. the of for if allow individual integration repair it them decisions you're But value, But practice, total true full off make general you to of vehicle their total of is total noted, making estimate loss It's decision-making total better. expedite less we faster the rules percent car offer company to offered of range tools it as actually make to and decisions easier truly that, and continue to to to x tools to decisions

for enlightened the But data-informed decision potential I front. that remains overall, early, that industry think more tremendous there on as

to make were So would besides and historical substantial decisions remains never trend, insurance overall loss change. today are lifting abundant there faster markets snapshot the change, If still for to total opportunities circumstances never of even better companies. frequency

recall, picture I is last here face the I supply been in it international vehicle just think big buyers probably emerging question U.S. think that you that given think, couple of second even -- years I face global think my I a tighter the then it's XX%. to since was we with And commented international production XX% markets, of mix, since on lack I would

So demand just seen at international, that's curious you've towards business in if your that caused shift all? any at

Yes.

and our them our insurance I with buyer and clients, with for So member were. for we year prominent buyer the and they of just important quantify ] meeting how base at each underscored a during more our [ important portion international the them more -- base. think becomes passing

But or the to America. lowest-value to that for the at instrumental of value those But bidders sold being say to Copart. I think car for of very safe towed to in say are international South brought vehicles vehicles, models aren't even it's overseas nothing to every Europe XXX that. driving Eastern

So they selling participate the which for cars they buy those today the they further calls the cars more value of of some itself auction But speak that for and -- high years from are activity, we'll the international activity of literally are time better we today. cars sell. for than . And as car which point a a important intellectual for buyers. and of as by majority instrumental they the or bidding the respect bidding subsequent the U.S. incorporate the really buyer second auctions, highlight on bid, dictates at than that's price well. push driving in be important years international bid, approaching incredibly will meaning or is more they X to it are were the XX% ago, now make X you they But and they today important

from Our with comes next line Alice question of Baird. the

more inflation of do about Curious think everyone. Maybe is on are any I How what materially your I loss services. insurance you implications need high Maybe total to trends? it's those rates up for the the additional take you're uninsured thinking downstream any for provide motorist in be potential level it good pressure, about mean industry. rate.

Presuming ratio by your uninsured very right? question market. is tremendously The is principally motorist U.S.-centric,

given for U.K., yes, it in higher are a surprise in the byproduct motorist think is turn they ratio, lagged a for than any they're considerably of U.S. example, the uninsured Brazil example. inflation. in For function, But us rates, which the you, market, of I won't for or are

So think, a with now noted which you in clients, -- on many that moment that just relief then of turn observed in insurance they and repairs the to changes wanted so recent state-level inflated that our ago. approvals are forth you achieving make, I the costs with comes for and rate personnel correspond

been So I of car to anemic once have meaningful on it don't think expedite function coverage has been a margin. some an car. collision the if those to company helps of insurance impaired the end, to will there's sense see But certainly has that eventually -- comprehensive, and the a matters effects Perhaps But have U.S. it accident. meaningfully insurance have you. an it -- think trends Whether an be I in what total liability-only would the impaired instead meaningfully regardless. effect total, economic will be you'll in the it mediating In makes decision resolution appreciable

high And consider just catalyst side, then Makes variety level, the of insurance over talk with about shifts the level gained carriers a I sense. maybe Maybe, again, on sticky you've again, those be? for reasons, to years. mean, wins and a business share how share insurance high for those the you

it. to appreciate address And described question, so that. do be we again. I that but No, Got happy

protect drive better that combined clients are economically our learning-enabled to Ultimately, They advantages best that platform, are, accordingly. can motivated. option insurance drive outcomes. liquidity, turn in our with ratios allow think that they our of returns businesses base, outcomes better on the technology at are, achieve us grow competitive and clients auction. machine to their the to tools rates our I auction best possible possible to that they first, I've ensure the buyer ensure cost have course, international to can mentioned the they the and

persuasive returns our many has superior generate we been auction and that that that, at believe we of to clients. insurance So

with times very what or we in insurance of cars correlated companies, element their end. particular, for front do to second is costs Cycle positively manage the by on nature, The quickly.

subject of. ability of repairs charges, many Copart how to before total advanced retrieve or like for their you, advanced are ultimately what disposed $X,XXX, clearly would cars teardowns the quickly auction our ] car is reduces that charges, loss to partial very [ $X,XXX So are it balance vehicles estimates have surprise you and nonetheless eventually and a

times is as them ability well. very So economically to reduce to insurance companies help our meaningful front-end to those cycle

about Harvey, importantly, Memories, we and storms well. before talked We've cases, of Ida like short, events events more distinguish some in catastrophic companies a but for moment policyholder acute crisis. Ian long, and perhaps The cost as the events. ourselves service are are acute sometimes insurance in

stands we've be ability to to So that that's acquired moment's our communications Florida Copart them, idle them a the communities ambassadors of Northeast. of hundreds catastrophic ground of capacity on turn, places storm serve vehicles, the distinctive to effectively ] fleet as in our our in like a and In own upon to that well. by well response equipped the support the support technology, folks team, notice, as as deploy land the acres literally their [ we the ready

I'll So about few ones. those those elements, other are are X but -- meaningful talk a

As general, long the walls over to in when are of to preserve that earn through haul. clients, our trust we durability, to the able we run

morning have We did those this take So up proven we for better year to wake committed in durable, we than before. did it year we each yesterday, than general, the relationships today but never delivering granted.

forever. year. it been past, to durable them serve we with the the make -- earn never for So assume be passing each but We'll it that has sure we will in right

I if then more. may, And one

maybe Maybe there are with observing of have more couple of on What detail to wave. what far? quarters market that update progressed so of biggest that some that trends just Purple opportunity switching you're in a partnership gears key Just how the seeing? us you're little the And are of with underway. areas now things

Purple, Sure. team and board. have on delighted and the to Susie we're Aaron

principally opportunities growth at Purple in they noted to were oriented, -- footprint geographic their way, them that I Zone our well they GMV but year-over-year. there. continue expansion. quarter think to as last Certainly, the expand Central time They from well. well Time both grow of include for very continue The we investment

continue and what extraordinary there. to at of they Aaron would and Susie call wave, done sellers they building invest community have Purple buyers job and an capabilities the

bring they're within opportunities to additional remain growth new markets participating, for in currently there on to bring equipment sellers which even existing the sellers. on So

Susie board. I So enough are They it's early in There across still across journey them. enough and among growth with challenge, them. leadership of those our very in for the Aaron early dimensions. levers are have management And we key remain how growth is the figure frankly, trends But to think challenge the the out promising their journey, been prioritize key to and all there.

Our comes with the Bret line next question from Jordan of Jefferies.

up that sell -- on Purple purple is Wave base? foreign commercial it that your is the buyer does on Wave, Is what Following last equipment? question buyers differentiate to of your ability they selling? Are

question. And distinction from agricultural A equipment, would commercial trucks, Yes. of lot equipment. sell -- do still probably because insurance a good draw the have, constraint of Box their equipment serving number commercial I proper between the by as and a our we of that Copart which a companies large, book of of and like result the type. part assets portfolio, is, of their that

buyer And international them, behalf. deeply many their is for the certainly, on So relevant. we assets sell

because Purple their have Wave sold platform large, by historically has been place been a historically. assets in principally domestic-oriented and

business they sell become have haul, as international more historical oriented of in been concern more long on approach. would and So past looking been a large, over one or sell they in that's agricultural industrial a And an well, that but can they the the that company, an rental behalf domestically forward, place. by the would

Brazil international? -- in you called the the flooding those [ the seeing vehicle some events markets sequential Europe, that you and improvement. EU? in out Are of And driver cat bigger And I Okay. that ] on growth. are East. looks then like in big getting of it Middle what's But you in question traction like traction XX% a Is international. mean

A question. fair

well. growth Spain such a grown bit in it's from experiencing than major a of notion all in that. in our I think in East But the more or know, you as Germany and Canada, Middle quite we're the memory It's have we U.K. Brazil, countries in in certainly that Bret, all-inclusive as for matter in life. in international, complicated

of countries as though, arena the you across But these it ago, and reasons, example, function So change activity for different U.K., total step -- early I it's for a penetration, a in total well. combination ]. some market loss noted think for in growing the growth is, flood There's but moment that Brazil, there. like frequency, the as international not [ loss meaningful a frequency

[Operator Instructions].

comes from the Our Jash Patwa question of line JPMorgan. next with

in if could units far pass share wondering an how and initiatives experience condition wondering . within underway you previously. dealer were have -- And of some so developing there I'm the car you higher can on update your has moving I value you biobase, reporting, inspection whole insights and so some arbitration procedures the a the follow-up. that segment. if on towards for believe Just progressed the segment. the far? just highlighted I

Yes. Great.

tailwind, dealer bringing cars time turn so for expanding of cars with we more to total Copart dealer network So relevant emphasis over is serve from to portfolio that been begin that as you insurance of as our as frequency, the in course, of their buyers discussed by the are well. national auctions. noted, it has of network an area an better loss better Copart today cars are of earlier for There us which into addressable years, companies, for the brings

You the different provided vehicles salvage asked to well, salvage them dealer procurement range cars and of a a range cases, like. robust good that relevant more services title title in provide for like of frankly, cars companies is in things many is It range extensive and settlement sellers, issuance, financial loan in cases, as to more of question The need some about different. the to frankly. those to institution comparison but rental cars, provided different, they're services certainly we insurance are which, to

very So that's services expand we Continue to provide. continue of these a yes, of Yes, can serve range better test them. so to things much a range we that priority. evaluate to the

of then color. months? Got trying to And over OpEx very as wanted next should if just thinking bulk should about Or we -- in we it. investments quarters? to follow-up, see I expenses the meaningful the base somewhat your to should are a the whether uptick to sense just the a in operating see we of continue helpful today? get Just start cadence maybe few -- of That's if get to be XX coming around the XX in a how thoughts the

do clarify general or Yes. mean administrator And you mean you operating by expenses, mean -- both? level you gross or to

to referring administrative general was and expenses, primarily. the I

Yes.

long think think for us I haul, probably followed while. you a over the that -- I

OpEx, as that growth make described . But for are You'll given make very year, given that Leah any do. sure as we grow not few the described income almost the of short-term quarter, right G&A -- even the operating operating -- last G&A to a in gross profits us. The leverage G&A we requires priority that we on to necessarily quarters month moment achieve know happy achieved or that's happen if ago. We have of grow relative we long-term quarter, any to frankly, outcomes. long-term long-term it. at we to investments, We But you want the of to to investments are in for rate meaningful have growth more excess year-over-year always horizon, OpEx expect growth. experienced

will and responsibility makes very guidance, don't, spend as we seriously. prudently. right we but they know, the those long-term Copart won't. generate a very steward We to continue for our you we to these of dollars it as forward-looking when provide we returns capital And take So resources to don't rule, when sense invest

further over the Liaw to comments. to at no Jeff this questions turn Thank you. I'd time. back for closing floor are There like

good to night. We'll next everybody. talk you Have . Thanks, a quarter.

today's concludes This teleconference.

disconnect lines your you may time. for You Thank participation. at this your