Profile: Copart Inc (CPRT.OQ)
10 Mar 2014
Copart, Inc. (Copart), incorporated in 1982, is a provider of online auctions and vehicle remarketing services in the United States, Canada and the United Kingdom. The Company provides vehicle sellers with a range of services to process and sells vehicles over the Internet through its Virtual Bidding Second Generation (VB2) Internet auction-style sales technology. Vehicle sellers consist primarily of insurance companies, but also include banks and financial institutions, charities, car dealerships, fleet operators and vehicle rental companies. Copart then sells the vehicles to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers and exporters and, at certain locations, to the general public. In the United States and Canada (North America), the Company sells vehicles primarily as an agent and derives revenue primarily from fees paid by vehicle sellers and vehicle buyers, as well as related fees for services, such as towing and storage. In the United Kingdom, the Company operates both on a principal basis, purchasing the salvage vehicle outright from the insurance companies and reselling the vehicle for its own account, and as an agent. In May 2013, Copart Inc acquired Salvage Parent, Inc. In June 2013, Copart Inc acquired Autoresiduos SLU. In November 2013, Copart, Inc acquired Berpa Auto Auction, Inc.
In August 2012, the Company acquired Ride Safely Middle East Auction, LLC. In May 2012, the Company acquired Diamond Auto Bids and Disposals. In May 2012, the Company acquired two facilities located in Calgary and Edmonton, Canada. As of July 31, 2012, the Company had a total of 155 facilities, which consisted of 136 in the United States, four in Canada and 15 in the United Kingdom.
The Company provides coverage, which facilitates seller access to buyers around the world. The Company provides a range of customer services that include merchandising services, title processing, pick-up and delivery of vehicles, and Internet sales. The Company provides the venue for insurance customers through its Virtual Insured Exchange (VIX) product to contingently sell a vehicle through the auction process. The Company's service offerings include Online Seller Access, Salvage Estimation Services, Estimating Services, End-of-Life Vehicle Processing, Virtual Insured Exchange (VIX), DMV Processing, Flexible Vehicle Processing Programs, Buy It Now, Member Network, Sales Process, CoPartfinder, Copart Dealer Services, CopartDirect and U-Pull-It.
Through Copart Access, the Company's Internet-based service for vehicle sellers, the Company enables sellers to assign vehicles for sale, check sales calendars, views vehicle images and history, view and reprint body shop invoices and towing receipts and view the historical performance of the vehicles sold at its sales. The Company offers Copart ProQuote, a service that assists sellers in the vehicle claims evaluation process by providing online salvage value estimates. The Company offers vehicle sellers in the United Kingdom estimating services for vehicles taken to its facilities. Estimating services provide the Company's insurance company sellers repair estimates, which allow the insurance company to determine if the vehicle is a total loss vehicle. In the United Kingdom, the Company is an authorized treatment facility (ATF) for the disposal of End-of-Life vehicles (ELVs).
The Company maintains contracts with third-party vehicle transport companies, which enable the Company to pick up its sellers' vehicles within 24 hours. In the United Kingdom, the Company performs transportation services through a combination of its fleet of over 100 vehicles and third-party vehicle transport companies. The Company offers some of its insurance company seller’s office and yard space to house vehicle inspection stations on-site at its facilities. The Company has 77 vehicle inspection stations at its facilities. The Company provides vehicle sellers with data for vehicles that the Company processes for the particular seller. The Company is engaged in motor vehicle regulatory agency (DMV) document and title processing for salvages vehicles. The Company has developed a computer system, which provides a direct link to the DMV computer systems of several states.
At the election of the seller, the Company sells vehicles pursuant to its Percentage Incentive Program (PIP), Consignment Program or Purchase Program. The Company offers an option to its members to purchase specific pre-qualified vehicles immediately at a set price before the live auction process. The Company maintains a database of thousands of members in the vehicle dismantling, rebuilding, repair licensee, used vehicle dealer and export industries, as well as the general public as the Company sells directly to the general public at certain locations. The Company's database includes each member's vehicle preference and purchasing history.
CoPartfinder is the Company's Internet search engine that enables users to locate used vehicle parts. CoPartfinder is accessible by the public through a Copart-sponsored Website. CoPartfinder lists vehicles recently sold through VB2 and identifies certain purchasers. The Company provides franchise and independent dealers with a method to sells their trade-ins through any of its facilities. The Company has engaged agents in North America that target these dealers and work with them throughout the sales process. The Company provides the general public with a method to sells their vehicles to any of its North American facilities. Anyone can call 1-888-Sell-it-1 and arrange to obtain a offer to purchase their vehicle. In the United Kingdom, the Company has two facilities from which the public can purchase parts from salvaged and end-of-life vehicles.
The Company competes with KAR Auction Services, Inc., Auction Broadcasting Company, LLC, Manheim, Inc, LKQ Corporation, Inc, American Recycling Association and the United Recyclers Group, LLC.
Suite 300, 14185 Dallas Parkway
DALLAS TX 75254-1327