Copart (CPRT) 4 Sep 242024 Q4 Earnings call transcript

Good day, everyone, and welcome to the Copart, Inc. 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. substantial uncertainties. involve statements forward-looking risks and These

Form call For today, company's the business, or reports has on XXXX, the the and report section July the year with the no company on risks associated forward-looking to on annual we company's Risk revise subsequent each in more now for XX, the Factors the ended forward-looking over detail XX-Q. quarterly titled will the XX-K company's refer statements of you are CEO, to update company's and Any Form made any statements. I as Jeff of the obligation turn Liaw. to

Thank you, evening. and Owen, good

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

to industry. insurance First, the

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

Value fiscal we our decline observed vehicle XXXX, Manheim quarter used Index. During in fourth an X.X% the year-over-year

selling rates to favor to prices repair long-term by the industry indications as tip those repair example, more the vehicles described number All a trends comments, rising than outpaced fully insurance of later significantly as them. will increasing the Leah company the her rather towards in totaling As parts the well vehicle in measured, broader in repairing of of complexity that for are vehicle market. scales used vehicle as our continue labor average

a of some than year XXX the same calendar loss basis for period In XXXX, second blended X-month for course, itself average. of quarter that's is fact, higher points XX.X% a total ago. the This, frequency is

still. Some of our customers, total higher vehicles rates significantly at

ever-increasing to clients them long-term We for we optimizing insurance Today, rather offer to observe tools carriers our assist incentive them, these sophisticated a decisions. continue. firmly than we believe of continue to an a insurance trend to range vehicles with economic total repair

do Another like is theme insurance to from of like deepening in companies the with recentl the offering. highlight the have clients. our insurance ours which I'd as salvage of obtained company our relationships after the have certificates service we auction states business title event, directly y claims from houses Insurance first expansion Historically, the a ongoing obtained best Express outstanding. our to reflected would their have from original the that reasoned in-house. customers, typically leans companies for a pivotal if or always cars their this touch title keep own with function point either have vehicles after be own policyholders they lenders if outright in it

and titles. signatures, from requirements Today, our one-stop own for requires, per however, state the titles we from our has too payoff and balances for specific the and in each of And secured as and it releasing what forth. of lender documentation, the its so and its diems powers of nuances provision attorney forms, behalf diems lenders. carrier in which has call Each substantial clients, obtained procurement, policyholders On industry. traction offer Express, of Title integrated we solution of achieved original title has an

their note more procurement that service efficient obtained approaching the than between of especially titles online own calling our title to lender are outbound portal pleased their customers in a intermediaries, insurance to clients, behalf Today, trust importantly, well. customers substantially we in our we we season testament to a is of X AI-powered year to excellent us additional regarding to XXXX. industry note of and access rate on insurance on particular, the million fragmented can The as process believe run provide storm offer a per constituency lender universe, we're our them One insurance an otherwise systems other and achieve. to

resources to the Other we part, happy which and XXXX seasons storm's season season, centers. As neighboring have by significant on earliest Debbie of Texas, start on though mobilization active path Cat-X insurance the to population Hurricanes is of fortuitously and behalf including damage years. widespread off the many, are recent [ to relative in undertake this major Atlanta ], to of caused named an record storms storm anticipated Louisiana Barrel states, on hurricane Hurricane required bypassed other our across clients. Ernesto, our

sellers turn I'll in logistics them, grow noninsurance via capabilities capacity a our leveraging having solutions strong a estate storage of our physical continued to We've well. with real core our as global base. network attention to our portfolio, liquid our fire volume and

the our of business, Car and segment of Copart In growth dealer combination Services volume business observed to by our as volumes our We our compared the a platform, X.X% volume, grow finance fourth increased to continue XX.X% NPA, we rental sold and auction quarter, year Blue Likewise, Powersports which partners. Dealer serves in sales and ago. year-over-year fleet well. bank year-over-year our

benefit and automotive attractive volume a and as provide units, these to year-over-year. noninsurance these the the view not our among auctions. XX.X% provide, as only our sellers advantage low-value economic our extending units in liquidity of for incremental U.S. business, customary Excluding that increased measure wholesale but factor critical growth our we our We also noninsurance

financial company then begin examples thereafter. rental abundant in pursuit or attending from of seen have auctions a We of Copart sell vehicles insurance we companies to purchasing first-time buyers only vehicle a a behalf institution of car on

length resources to of a at about total effect, the the drivable rises us flywheel crossover committed in total power evermore will our grow. cultivate the loss and time investing This to past. of this and nutshell We're business. of heard vehicles, companies frequency As aspect insurance our elect buyer in our you've only talk the to

for led our partner additional about year as what equipment the outpacing Purple their the Finally, for McKee serve. auction them. fiscal [ year, -- partnership our growth and Aaron holds team for growth Susan Wave drove full the future XX% markets excited ]and Kansas in Arena Manhattan, We're equipment an in with the note, based they the by in industry full year-over-year

it that, over for to I'll Leah With comments financials. her turn on the

Thanks, fiscal trends. Jeff. I'll begin with our quarter year sales 'XX fourth and

During the and quarter, X% and our global inventory ago period. from increased the X%, unit year sales respectively, about

was 'XX, Global share a XX%. increased fiscal gains. This in of For year loss function frequency growth total sales increase an unit nearly and

unit which of on Focusing our business, fee reflected growth over X% and XX%. U.S. was over unit X%, growth of growth over unit purchase

growth of with Consignment units of fee X% or over X% U.S. and volumes. year constitute 'XX, continue purchase unit unit was units growing the fiscal growth unit majority our fee nearly to vast For almost XX%.

U.S. 'XX. U.S. our unit increased volume volume X% insurance increased unit fiscal year Our and X% -- year-over-year for about

mentioned, that the in growth nearly increased units, to units fiscal XX% volume outpace continued volume QX and came for rental our the substantially 'XX. and growth Jeff noninsurance and XX% unit quarter the business. over finance has insurance As year increased XX% for which of year This dealer XX% nearly for which over our from fleet and

low-value U.S. increased over X% and the X% in excluding levels cat when nearly units. Inventory and

over in nearly quarter. year. of saw Purchased XX% for almost the fiscal Turning XX% XX% quarter 'XX QX growth increased XX% by for the XX% to and the year. international and XX% our unit for in the units business. units year with fiscal for We and increasing almost fee

a relative Our levels for to international by declined inventory the and the X% year. X% quarter ended the business with prior ahead of year. quarter about for period year full approximately X% over ASPs the Global ago

show to the and continue ASPs resilience market more significantly outperforming broadly. used vehicle U.S. Our are

While and X% nearly from the the price declined index Manheim X% used vehicle ago sequentially. year quarter almost by

insurance and from ago increased a X% for X% than U.S. ASPs over quarter less year declined Our sequentially. the

X%. revenue Turning over our quarter the billion, financial $XX or $X.X representing of to nearly results. million about Global increased to in growth

For increased million the billion, over more for or X% and revenue Global nearly to $XX $XXX or the $XXX representing million fourth year, the fiscal million almost to year, increased over or due XX%. revenue volumes. over for growth XX% service of than primarily quarter nearly increased global $X.X

service revenue for profit increased purchased for than XX% fourth year. the was the million the the vehicle year. in by year, million revenue for the and over sales U.S. and over for vehicle XX% by over up XX% vehicle quarter. quarter service the U.S., vehicle or $X and while about $XX less over X% $X Global XX% quarter international or fiscal quarter gross purchased million decreased purchased grew X% in the increased for the grew fourth Our Global or about X% $XX for XX%, profit revenue the gross X% or year. nearly about for fourth and purchased million In the the and by fiscal quarter

and or by X% almost million profit And over or purchased quarter million Internationally, gross the decreased million and for $X decreased by million over $X about $XX or and revenue purchased about year, purchased increased or fiscal vehicle purchased XX% over XX%. year, XX%. gross increased $X increased vehicle X% over revenue vehicle and fourth profit full -- in profit revenue for decreased or gross the $X almost $X purchased about about million the vehicle X%, vehicle about million or almost

of as reflects nonrecurring about Global unit This $XX yard the well increased year taxes. depreciation growth the or from operations about cost, and primarily expenses, approximately in prior related XX% $XX operating compensation as million excluding volume million stock-based expense period. to increase

for addition, Jeff unit incurred positioning XXXX, costs volumes. resources storm not early In noted, storm produce to as preparing response season the in significant our seasonally active which higher and cat given start did teams and storms several the

Given of policyholders. customers costs during the events of as course serving unpredictable season, our nature absorbed their part and of our we catastrophic these storm normal

million, gross a XXX our X% by over of the profit quarter. decreased fourth in gross million was During the about basis margin global and percentage points or to $XXX XX.X% approximately $X quarter, decrease

for was impact as $XXX associated as during was quarter key nearly margin global XX.X% personnel. billion, and an our of gross year, of percentage for margin yard XX%, $XX million and with decreased XX basis included about to fiscal the In the profit U.S., benefits and expense of compression the or about out-of-period For The XX% increase quarter to increase well the salary expenses our margin the gross million operations increased points. XX.X% year. of drivers increased gross over over of profit the an $X.X

XX.X% margin profit and increased XX.X% year. in quarter gross the to the international for Our

excluding Turning of spend million, compensation million $XX increase to general and about reflecting and and sequential year. prior $X the was on about quarter a expenses, over in $XX expense, basis. depreciation stock-based an administrative the million

about $XXX million, spend of For $XX an increase year, the million. was about

with associated organic Purple of an Wave our consolidation implementations. the highlighted into year-over-year continues product in we financial results third-party project-related development, increase quarter, our costs well investments in reflect increase G&A our As system as our to platform functions, as last

are equipment Across our we sales whole our business our deploying processes emerging teams functions, to our systems leverage the are and organization, and pursuit card as term. on heavy in investing in and of operating enhance scalability technologies focused expanding over long simultaneously

decreased income decreased million. the operating quarter for $XX to GAAP by over -- or increased or operating income over operating fiscal income And nearly by the for GAAP million GAAP X%. $XXX year, X% sorry,

or quarter by income common decreased to GAAP over diluted $X.XX per fourth share. net Finally, million X% over $XXX

fiscal For by net XX% billion. to increased year, over the GAAP over $X.X income

for quarter, fiscal have for our we securities. was was of million income And rate the tax our And over treasury quarter, benefited cash year, XX.X%. $XX invested as into it the actively incremental During from XX.X%. interest we the

structure. capital our Turning to

advantage us We over conservative compromised and in that investments our credit $X.X As facility of our our to $X.X end billion business is our in distinct ours and success. billion. our securities maturity cash billion of and long-term held our the horizon enabling with revolving had to believe we competitive under is a nearly and capitalization July, industry, liquidity, of of prioritizes of over clients' capacity $X.X which operate a that

For free billion we $XXX about of million, reflecting cash generation $XXX flow cash generated the and year, our $X.XXX million. flow capital operating of of investments

than more land capital as with into being remains our physical assets for well assets acres customers, acquired infrastructure. which outcomes XXXX steadfast deployed drives for focus all as nearly of X,XXX investment our transportation best-in-class and XXX enhanced of including Our

to With a to capital unwavering. approach I long-standing wanted that new horizon our us, allocation multi-decade reiterate year is upon investment and

our which differentiated and continue term. prioritize our This that customers' investments ensuring to service yard including to to the are our capabilities. investments, positioned and existing infrastructure includes that for businesses serve We grow marketplace we critical approach products are needs to diversify long

us clear. disciplined fail and long-term our on has outcomes to to and/or with hurdle focused remain deliver shareholders. and This while strategic through strategic typically transactions creation capital deploying We being fit that outstanding opportunistic a generating approach valuation M&A positioned consistent major value for partnerships business

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

of with comes CGS the Our first Securities. Bob line question [Operator from Instructions] Labick

the rates, the So different with of parts don't financial and I moving to all the wanted start all your growing know, and with business stuff. model I subcategories various growth

Car, that as impact we So build and there's Dealer less particularly to from customer on some but model. that a on get infrastructure our the point I fees you financial or hiring the higher at out also to want sales can seller see Blue maybe whole concentration sheet, and upfront discuss you in And There's there's lot maybe get and more investment. ready. those, car,

are should investing the where think up in on And of it? So those those is about that we initiatives? margins and maybe Or we front mature how think way growth You're investing for to that? will process the about over correct businesses And now? time, the then grow?

Yes, long economics traditional sold. term, well. better to those or be cars I'd of question, unit Copart selling I the think average vehicles that's at say higher than as Bob. prices should a tend be parity The fair the

And upfront some some to growth infrastructure-like the to is build that's investments the platform of more place. the course, long-term in answer. spending the think so first Near there I term, there, support

I That So think observation question fair. is that is fair.

Okay. line the you. to that should growth year kind nice relates terms How Super. Purple you them? think obviously, it as And Wave, for for out and building we nationally? in of Where them time then about for of are just

a Central or in They historically as stage. started the would their they expanding the Zone in company regional footprint as themselves is transitional being know, you was describe focused a primarily in more the as exclusively and virtual still their Time think from are particular virtual business I it business.

an built Wave auction built the space. in they've meaningful platform Purple presence arena that pure and to their become a So incredible in brand have

geographically expanding we speak. as are they So

lower last like and indeed the impact years? believes moving environment, model are Okay. how the new to X next does into Purple us, obviously on interest Wave, out Purple you Great. And Wave everyone we Purple I think X rates as Wave that me lower to given a for look X, we If too. rate just business is then X,

more business equipment. of the we answer is period, lower know. rates right, activity conjecture, but interest equipment, the Probably trading I get new candid just is don't think This probably the more generally old purchase perhaps in

But generally and general, activity agriculture the activity many a a for for Save. construction So I many, just will customers, interest their they There's higher quite of characterize notion lead and rates Bob, -- just not velocity think well, low accurate. catalyst intermediaries thing even monolithic think to versus know as to interest the residential. period more a in nuances their commercial as and serve. rates construction above. activity lower in speaking, a There's Purple good being spaces various like all being But single as sellers to is you I

line next with John Coast North of question Our Healy comes Research. from the

trending, top year-to-date, of ask Kind wanted variety the the of about Jeff a kind bit how a accident kind and of the are about talked, points. I And I the said repairable up X% is XXX And insurance rates volume claims loss trending. total business. the guys how are that growth basis believe believe, on you little just on business side. of to I miles data of Leah, points driven you just

level rhythm at side, frequency of that model? accident do just curious map, I think more I on how accidents to crude specifically, think of implies thoughts seeing like is repairable Would investors new you mean, agree use with I would And you would that I of sometimes a lot the a get if the to play and that think area a declines. I if your beginning people the get was impact that, just and but claims, frequency is know we're think on? love different Just the out a to I frequency trend,

of question nuanced divided What good a the I'd growth. to first And XXX think keep I you're one. that's starting saying simply points rhythm doing point if it's XX%, is, XX% a by offer basis and very

for better for think those I measures aren't enough. just precise work,

even see them to third well You'll those adjust parties sometimes the report numbers.

don't the around did just with for move back fair a perfectly exercise went either they total they XX match if loss So you and bit, this volumes and years.

about if observation miles for declining you frequency frequency an reflection having your I of for I years perhaps always the to park. accident a characterize driven think As as past that Certainly, been XX true declined. accident has safer car would ever adjust broadly period.

So the innovation in waves space the imagine of automotive can you in the mid-XXXXs. big

in time, accident total forth the the arrival It particular on braking, reducing loss traction autonomous antilock always with time first then control long-standing sensors conditions, crashes nowadays high other saw by of the a thereafter for in arrived so which trend. are years reduced been That's You brakes frequency. frequency. and also lane warning and precipitation side departure the has worked

down base period. bit always reasonable historical over loss outpace any a frequency So almost that has total little

forbit, been which then one I I that we social remember adoption the but folks think frequency driven years of memory, about to period from increased. and in was anomaly think, actually if numbers. when say, topic I a that, studying talking X-, ago XXXX, there I media to were the remember into per in it a are this of X-, has smartphones was, was then The a X-year I that, was can because accident absorbed 'XX, couple And while driving. miles now God this want catalyst

not gradually now know. declining any we frequency, but a kind, accident precipitous a not I of disruptive change change, So we think would see

want titling the just hear would Makes express sense. more then Got product. I to it. And about

on great that. went You guys detail into

is higher levels that something degree taking My just and what it's that make the interpreting is the kind alleviate what to to the that take I companies insurance understand this time? sure drive it about Are of can turn internal right to a observation we way seller functions, you there. something and allows right takeaway you responsibility service Is is fee I was the So that is is headcount costs, think relationship it? to the just further Copart that on. that beyond would way try the

for know the sell them. well. as so assure we touch had scale to by millions they was think I historically integrating, this very But have us that summarized they case us more you a customers could because software of kept with of own their forward functions software the matter. led any efficient It's industry. points that their to the individually. bespoke of and vehicles business we're policyholders, viewed They that into the critical with we it trust the of own speak, the insurance handle processing that and it millions And narrow business processes them titles have than for and we enough

Our Kennison next of question Craig with line comes Baird. from the

wanted had this insurance you time cycle through the Jeff, of in there. and for John it really Express. the a the saying, good form some to ones will time time? follow will And actually that takes that it Are money terms of up in to on save I Title save full sale companies

that the time fully this full them knows own. larger the for but they're the -- certainly living a a well increasingly Copart here do do function settle in any individual and burdened on dysfunction ones, Time scale Yes. their capable, specialized Copart. about, just smaller folks cost long-standing very well insurance be at group easier for department carriers, Imagine for to And by leader as It's also is of and we very it then do, it that a performing cold. to as themselves. does led just that and that this has we Correct. talked department as for we to at

functions consumer underwriting if best marketing the company, are any management of top insurance to. Those company. answers XX the If insurance to core to an you Copart, more -- you ask and ranging you. float customers advertising an do investing what or frankly, Those have are you do you'll of ask from get what as

the down ourselves. where I think and you but before said they butter, procurement total our is can list be with pretty far distinguish bread we that's

think I you that hear very rarely.

transfers share your X a To So book? you've pitch I'm page make that title what market this to million your long year. gains overall? had to enough extent driver generate this Does the is of this curious, front

perceived. in It is book, is certainly pitch it the

And again, companies -- good insurance so are function there it for has keep to this been want in-house. reasons to

with at catalyst I think increasingly cetera, deploying realized call and centers, when for folks et part the squeeze. increasingly remotely and started insurance and laptops worth change COVID-XX was and remote years not managing in recent hiring problematic them companies retaining complex, in the

product trusted us, the they'll over again. and So they with us they over trial

reflection a regard. in it's think in I of us trust their that

mentioned Leah, that shed could the And normally million and period expense. Great. $XX out-of-period if more on did which Can I you you expense, occur? light ask, it

And related had little In U.S. $XX really for to to vendors in Sure. a was accruals our consider of out-of-period was total, of a our be related it segment. in our the in our quarter. it and some fourth property million to to yard other to of that U.S. related here International taxes also invoicing we the segment, for forward. grossing items to expect related portion that ops, nonrecurring prior fourth to for expense we are nonrecurring would related received over was $X up then the quarter of we I are And to related of million the levels some go periods that

expansion Okay. did Wave. that how And feel metric? many by trying for XX% driven that's right whether matters driven managers I'm your the I'm on by if get just is Purple external plans? or territory a really add one to curious, you

drivers in virtual say growth, territory speak. growth territory like also territory, expansion this is business. so to both both but a remember, I'd is our And

support to out the so opening the quite on force, course, team speak, it's It's to more sales place. like and the a Of street agents pursue the corner. But new and do the clients adding sellers potential Starbucks the business sales like. in first customers it's the reach go force institutional versatile to have to the they not so to of

BNP next [Operator Chris line Paribas. Our of with Instructions] question Bottiglieri comes the from

Guys. I'll skyrocket Bottiglieri, There's consumers that auto a canceling that insurance coverage. and been reducing Christ volume home the bit ask I auto suggest one. little that are for want Question press you. rates reports fix question differently. insurance would

where Just curious the we cycles, hear that, your how insurance if with insurers, drivers climate normalizes. cycles just of affecting seen true, this people penetration? hopefully And from lower past there's you've happened cash change obviously, you But you've In business? are does all cut this auto is that historically now different insurance and impact us this can rate matter? Is for tell seen what's before? dropping even like that

have total. I it the and their history perhaps sense be to would think pass have collision Got may on it. either I say together previously insurance would -- margin Copart would claims -- leave trying folks the And they negative liability have that totaled have save trying liability-only question. that it been the that abandoned fix them would drive they it uninsured only to car a that otherwise and if and carrier or trying comprehensive are there to to cart then handled therefore, to may in Fair guide, is money is they have or modestly altogether any if coverage

speaking, has the directionally I but think this one, think of shown very if modest the I research, this or 'XX, and in is financial since that's measurable from what almost downturn from in 'XX memory effect frankly, the would happen. crisis in but

Yes.

think is we XX. fleet finance sounded Okay. gave a here, of finance dealer but And batches, like have sorry, I then X%. XX plus so of up X%, rental dealer then ton XX metrics fleet up it U.S. but U.S. I was insurance might

So cars it drag segment? like rationale it in that just a there's there an is somewhere. something being systemic? low-value more charity competitive a that's Or Is there causing that seems is upset then and a

that No, it's continues value low to just shrink. bucket

that causing it is something shrink? competition? market Or that changing? Is What's just that the is to

our we're terms in focus allocating efforts. our just really of where It's

think that out. I tension most the a It's are have right, and we is are the institutional Yes, of those competitive resources, as work combination as it's to always units -- X. well that scarce that willing prioritization,

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

On X% in you think share was that organic you from a units, peer quarter? fourth carve insurance year-over-year the still were the sort guys out share taking growth of versus the in in space. quarter gain I Could what

of have it we the but capture. share is top as right, off -- Bret, you're head, organic it our is don't both as that growth well

Okay. you And you for of result didn't in basis, on quarter guess, similar obviously, prepping the catastrophic cap cars. a number lot I of question a a storms in sort year? have money came then, fourth year-over-year spent that versus events cars on Do many from a prior year-over-year how the

modest. Very

do won't of mobilize year, of the have don't real. storms. that's relatively and We mobilize luxury such scheme people and name to grand we the in this error. if right? because So customers. multiple waiting see those So storms, multiple in mobilization We a in speaking, trucks Copart storms, rounding anticipation That said, our the is it's of weren't advance trivial,

it. year So did multiple show with to mobilization for volume have trivial we this

guess, I then, final And Okay. question.

of On a staff making operating just that expense? part yet, investment labor expanding the around is is you've so in that operation yard sort the is growth, higher a investment? real costs? recently acreage estate recent spike portfolio? or full in of yards that expense you capacity Do you've been at deleveraging the in yard that have years aren't to of in some a expanded of really more these this as it much there structural builds something nonrecurring some capital Is Or and

around as that higher property well tax has very acreage as bills, also rising increased the narrow brought with Bret, is both more country. One the footprint example, property literally values

P&L So that's in well. as the definitely

at in As the has have smoothed moment a X think that we time. huge of don't bolus yards time, but I opening for over largely out deleveraging,

we those So volume have that -- also the get the but yards coming the we don't more as absorb, which more in new facilities fully have that management, which mature, staff encountered we matured as are we have leverage. new fully those for to operating yet volume

So small that It's a not it's -- a one. distortion.

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

noninsurance the on one Just business.

the be car buyer some mix the give revenue. customers. it around out front. on great few demographics dedicated now. proportion a the could of you a us building noninsurance an a I If of And for this share whole business the of would base I results mining towards have the And if update have any more And you side in investing could on follow-up. been you on color terms believe quarters

Great.

Blue for think be sellers Dealer Services those fleets as Car banks that's and and about corporate dealers, #X, cars. like the we So and for volume, noninsurance at #X. car as Copart sellers, our dimensions key institutional cash rental would companies,

this our through liability All of think business. don't which of from but with them. substantial scheme for coverage We we've looking all on up each, a disclosed for who X the dispose at consumers is precisely meaningful. consumer-facing our to much of ways example, how Copart record So cars end is buy noninsurance we are X those the in consumers, are

inquiry acquired right? and don't I'd one point. is base very integrated underscores the think The importance of buyer it buyer that of think as much as an We the correction dedicated definitely base make the that of to or about buyer crossover the clarification base, your being one we a X

nearby vehicle then have vehicle, because the will insurance they X years they for that first look often as have they all that at who that's fundamentals otherwise old cars well perfectly we were a at So the damage than the as or would is. bill perhaps the buyers or car arrive rental drive discovers cars drivable fit affect doesn't hail nearby not to or of time

drives buy the say as in valuable sold are both end liquidity the is across for characteristics noninsurance as sellers buyers, is would more be for participants, They more vehicle. cars We case having farm the than know, the while, dedicated as I find the active that which, followed all So of that relevant. that us both probably as true very those drives from are international as buyers buyers valuable, the and a much from for buying to of bidders, at cars Copart course, shared to Copart car is in and that you prices buyer, selling well. you fact, are international up average Copart generally The of described. and the case sides. these buyers

color. helpful very That's Understood.

Just one on more the me side. fee for

implemented I pricing buy the your you hikes you think moderating whole historical the Curious the car fee altered share around years the to side it's years? side. with hikes major couple on well have changes approach on the wondering salvage for any competitive any fee side? car in been if And any fee if environment color recent in on since could as a have as of framework increases

sellers, business. we first Yes. to our acknowledge this we'll on and foremost the ourselves question. trust value don't appropriate delivering of one. focus in good capture responsible long-term we a as this reasonable substantive one We also address view I'll And our that share buyers. stewards to like that's thereof. our long on It's informs But and run, we

parties. pursue research So that we through would don't you third schedules. I talk encourage to fee about

pass to questions further over no the time. to comments. I'd are at closing There like for Jeff call back this

Thank talk you in joining couple for of you to We'll months. a us.

today's teleconference. concludes This

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