Chris Battipaglia

Chris Battipaglia asked for clarification on the 38% disparity between international and US bidders, specifically if international bidders bid 38% more on the same vehicle, and later inquired about Copart's capacity investment strategy given the 155% increase in gross PPE in land since 2019 versus 30% volume growth.

Answer

CFO Leah Stearns clarified that the 38% disparity refers to the average selling price of vehicles purchased by international buyers being 38% higher than those purchased by US buyers, as international buyers favor lighter damage, higher value vehicles. CEO Jeff Liaw added that international buyers drive value upwards. Leah Stearns then explained that some capacity investments were for CAT events, and while the list of future capacity needs is smaller, Copart will continue disciplined capital allocation for strategic areas and logistics cost reduction.

Chris Battipaglia sought clarification on the 38% disparity between international and U.S. bidders, asking if international bidders bid 38% more on the same vehicle or if it refers to the average selling price (ASP) of vehicles they purchase. He also questioned Copart's capacity investment strategy, noting a 155% increase in gross PPE in land since 2019 against a 30% volume increase, and asked about future plans for capacity expansion.

Answer

CFO Leah Stearns clarified that the 38% refers to the average selling price of vehicles purchased by international buyers being higher, as they tend to favor lighter damage, higher-value vehicles. CEO Jeff Liaw added that international buyers significantly drive up auction values. Ms. Stearns explained that some PPE investments were for catastrophic events, and while capacity needs still exist in certain regions for the next 5-10 years, the list of such areas is much smaller now, with continued focus on disciplined capital allocation and logistics cost reduction.