Copart Inc (CPRT) 2022 Q3 法說會逐字稿

Good day, everyone, and welcome to the Copart, Inc. Third Quarter Fiscal 2022 Earnings Call. Just a reminder, today's conference is being recorded.

大家好，歡迎來到 Copart, Inc. 2022 財年第三季度財報電話會議。提醒一下，今天的會議正在錄製中。

For opening remarks, I would like to turn the call over to Mr. John North, Chief Financial Officer of Copart, Inc. Please go ahead, sir.

關於開場白，我想將電話轉給 Copart, Inc. 首席財務官 John North 先生。請繼續，先生。

Thanks. Good morning. During today's call, we'll discuss certain non-GAAP measures, which include adjustments to income tax benefits related to stock-based compensation, legal matters and discrete income tax items. We've provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures on our Investor Relations website and in our press release issued yesterday. We believe these non-GAAP measures, together with the corresponding GAAP measures, are relevant in analyzing our results and assessing our business trends and performance.

謝謝。早上好。在今天的電話會議中，我們將討論某些非 GAAP 措施，包括對與股票薪酬、法律事務和離散所得稅項目相關的所得稅福利的調整。我們在我們的投資者關係網站和昨天發布的新聞稿中提供了這些非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬。我們認為，這些非 GAAP 措施以及相應的 GAAP 措施與分析我們的結果和評估我們的業務趨勢和績效有關。

In addition, our 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 our markets. These forward-looking statements involve substantial risks and uncertainties. For more detail on the risks associated with our business, we'll refer you to the section titled Risk Factors in our annual report on Form 10-K for the year ended July 31, 2021, and each of our subsequent quarterly reports on Form 10-Q. Any forward-looking statements are made as of today, and we have no obligation to update or revise any forward-looking statements.

此外，我們今天的評論包括聯邦證券法含義內的前瞻性陳述，包括管理層當前對我們市場趨勢、機遇和不確定性的看法。這些前瞻性陳述涉及重大風險和不確定性。有關與我們業務相關的風險的更多詳細信息，請參閱我們截至 2021 年 7 月 31 日止年度的 10-K 表格年度報告以及我們隨後的 10 表格季度報告中標題為風險因素的部分-Q。任何前瞻性陳述都是截至今天作出的，我們沒有義務更新或修改任何前瞻性陳述。

And so with that out of the way, I'd like to turn the call over to our Co-CEO, Jeff Liaw.

因此，我想把電話轉給我們的聯席首席執行官 Jeff Liaw。

Great. Thank you. Good morning, everyone. We're pleased to report our results for the third quarter of fiscal 2022. As you are all, no doubt, well aware, our industry and the global economy in general are experiencing a number of variables at unusual levels. New and used vehicle shortages, evolving workplace practices and traffic patterns, volatile and elevated fuel and commodity prices and global instability. Against that backdrop, we continue to perform well for our customers, and therefore, by extension for our business as well.

偉大的。謝謝。大家，早安。我們很高興地報告我們 2022 財年第三季度的業績。毫無疑問，大家都很清楚，我們的行業和全球經濟總體上正在經歷一些異常水平的變數。新車和二手車短缺、不斷變化的工作場所做法和交通模式、波動和上漲的燃料和商品價格以及全球不穩定。在這種背景下，我們繼續為我們的客戶表現良好，因此，通過擴展我們的業務也是如此。

Our long-term core operating beliefs and principles remain unchanged. Above all else, we'll invest in our physical infrastructure, our technology platform, our people and our customer service offerings to improve auction liquidity and returns for our sellers in our more mature markets. We'll continue to collaboratively engage with our sellers both day-to-day and through catastrophic events, including what appears to be an active storm season ahead, to protect them and their policyholder relationships. We will actively expand our addressable markets by growing our volume of lesser damaged and whole cars from both insurance and noninsurance sellers. And we'll continue our expansion into international markets in Western Europe and beyond, including Germany and Spain.

我們的長期核心經營信念和原則保持不變。最重要的是，我們將投資於我們的實體基礎設施、我們的技術平台、我們的人員和我們的客戶服務產品，以提高我們更成熟市場中賣家的拍賣流動性和回報。我們將繼續與我們的賣家合作，無論是在日常工作中還是在災難性事件中，包括即將到來的風暴季節，以保護他們和他們的保單持有人關係。我們將通過增加來自保險和非保險銷售商的受損較小的汽車和整車的數量來積極擴大我們的潛在市場。我們將繼續向西歐及其他地區的國際市場擴張，包括德國和西班牙。

But turning to the events of the quarter. Our -- starting with unit volume trends and our auction performance. Our global unit sales increased 12% year-over-year for the quarter with a U.S. increase of 11% and an international increase of 18%. Our insurance business itself grew relative to the third quarters of both last year and the year prior on a 2-year basis due to a continued recovery in overall driving activity and accident frequency and severity. We'd also note, however, that record-high used vehicle prices have for the past few quarters negatively impacted total loss frequency and have tempered overall insurance volume growth relative to what it otherwise would have been.

但轉向本季度的事件。我們的 - 從單位數量趨勢和我們的拍賣表現開始。本季度我們的全球單位銷售額同比增長 12%，其中美國增長 11%，國際增長 18%。由於整體駕駛活動以及事故頻率和嚴重程度的持續復甦，我們的保險業務本身相對於去年第三季度和前一年都實現了兩年增長。然而，我們也注意到，過去幾個季度創歷史新高的二手車價格對總損失頻率產生了負面影響，並且相對於其他情況下的整體保險量增長有所緩和。

On the notion of driving activity, at least as measured in vehicle miles driven as tracked by the U.S. Department of Transportation, for example, we've seen a rebound in driving activity now to a level similar to pre-pandemic levels, including as measured by gasoline consumption and the like. The character of driving has evolved with less, of course, workplace commuting, more leisure travel as a substitute.

關於駕駛活動的概念，至少以美國交通部跟踪的車輛行駛里程來衡量，例如，我們已經看到駕駛活動現在反彈到與大流行前水平相似的水平，包括測量通過汽油消耗等。駕駛的特徵已經演變，當然，工作場所通勤更少，休閒旅行更多。

On the question of total loss frequency. Contrary to very consistent long-term trends, total loss frequency has declined sequentially over the past few quarters and year-over-year with a strong used car price environment and vehicle availability, reducing assignment volume relative to what it otherwise would be. While our auction returns themselves are at all-time highs and have kept pace with the used car market in general, higher pre-accident values do reduce volume relative to what it otherwise would be. In layman's terms, in a world in which replacement vehicles are hard to come by, total loss settlements are less compelling than they otherwise would be.

關於全損頻率的問題。與非常一致的長期趨勢相反，由於二手車價格環境和車輛可用性強勁，總損失頻率在過去幾個季度和去年同期連續下降，相對於其他情況減少了分配量。雖然我們的拍賣回報率本身處於歷史最高水平，並且總體上與二手車市場保持同步，但較高的事故前價值確實會減少成交量。用外行的話來說，在一個很難獲得替代車輛的世界裡，全損賠償的吸引力不如其他方式。

While total loss frequency has declined over the course of the past 12 months or so, the 40-year trend is nonetheless clear. We believe the market will ultimately revert to the historical norm of steadily rising total loss frequency and, in fact, a number of other variables: increasing accident severity, repair duration, repair labor costs, rental car costs and the like should contribute to that reversion as well. The history of total loss frequency is quite clear. It was 4% or thereabouts in 1980 and is approximately 20% today. And it, in turn, has been the product of 2 key factors. Vehicle complexity and composition have made cars more expensive to repair over time, while our auction liquidity and global buyer base have made them ever more efficient to total instead. As used vehicle values eventually moderates and potentially trend back to lower levels in the future, we may see a moderation in our average selling prices as well. In that scenario, however, we believe we will benefit from volume increases, perhaps substantially so.

雖然在過去 12 個月左右的時間裡總損失頻率有所下降，但 40 年的趨勢仍然很明顯。我們相信市場最終將恢復到總損失頻率穩步上升的歷史常態，事實上，許多其他變量：事故嚴重程度的增加、維修持續時間、維修人工成本、租車成本等應該有助於這種逆轉以及。總損失頻率的歷史非常清楚。 1980 年為 4% 左右，如今約為 20%。反過來，它是兩個關鍵因素的產物。隨著時間的推移，車輛的複雜性和組成使得汽車的維修成本更高，而我們的拍賣流動性和全球買家基礎卻使它們的總計效率更高。隨著二手車價值最終緩和並可能在未來回落到較低水平，我們可能會看到我們的平均售價也有所緩和。然而，在那種情況下，我們相信我們將受益於交易量的增加，或許是大幅增加。

We continue to grow our business as well in noninsurance vehicles, including -- excluding, pardon me, cars and sources like wholesalers and charities. Our U.S. noninsurance business grew approximately 3% in unit volume year-over-year, driven in part by growth in our consumer-based Cash For Cars business as well as growth in non-salvaged sources of volumes, such as rental car fleets, corporate fleets and financial institutions. Overall, our growth across the full spectrum of vehicles generates improved auction liquidity, auction attendance and returns for our sellers as well. The greater number of noninsurance cars we sell, whether they're from dealers or rental car companies, fleet managers, lenders or from consumers ultimately contributes to auction liquidity and generating better returns for our insurance sellers in turn.

我們繼續發展我們的業務以及非保險車輛，包括 - 不包括，對不起，汽車和批發商和慈善機構等來源。我們的美國非保險業務單位銷量同比增長約 3%，部分原因是我們基於消費者的汽車現金業務的增長以及非打撈業務量的增長，例如租車車隊、企業車隊和金融機構。總體而言，我們在所有車輛領域的增長也為我們的賣家帶來了更好的拍賣流動性、拍賣出席率和回報。我們出售的更多非保險汽車，無論是來自經銷商、租車公司、車隊經理、貸方還是消費者，最終都有助於提高拍賣流動性，進而為我們的保險銷售商帶來更好的回報。

I wanted to provide a few comments on environmental sustainability and governance matters before turning it over to John. We play a meaningful role in the global circular economy. We sold more than 3 million vehicles in our last fiscal year and estimate that 40% to 50% of those vehicles are ultimately returned to drivable services somewhere on the planet. And of course, the balance are subsequently harvested for parts and raw materials. In both cases, we provide meaningful benefits to the world environmentally through the avoidance of manufacturing of vehicles and of replacement parts.

在將其交給 John 之前，我想就環境可持續性和治理問題發表一些評論。我們在全球循環經濟中發揮著重要作用。我們在上一財年售出了超過 300 萬輛汽車，估計其中 40% 到 50% 的汽車最終會在地球上的某個地方重新投入使用。當然，隨後收穫的餘額用於零件和原材料。在這兩種情況下，我們通過避免製造車輛和替換零件，為世界環境帶來了有意義的好處。

According to recent research from Argonne National Laboratory, a science and engineering research house operated by the University of Chicago on behalf of the U.S. Department of Energy, the vehicle manufacturing processes -- process produces nearly 2 metric tons of CO2 per new vehicle manufactured. We estimate, therefore, that our business facilitates the avoidance of literally millions of carbon dioxide -- millions of tons of carbon dioxide per year. Our business, especially given our emphasis on providing access to international buyers, also contributes to the advancement of other important societal objectives, including the reduction of global poverty with affordable transportation as a crucial lever; and improved outcomes for people around the world and commuting to work, advancing their education or accessing medical care and the like. In the weeks ahead, we intend to publish our inaugural ESG report in which we'll provide additional disclosure about our role and impact in the circular economy.

根據芝加哥大學代表美國能源部運營的科學與工程研究機構阿貢國家實驗室最近的研究，汽車製造過程 - 每製造一輛新車，該過程產生近 2 公噸的二氧化碳。因此，我們估計，我們的業務實際上促進了數百萬二氧化碳的避免——每年數百萬噸二氧化碳。我們的業務，特別是考慮到我們強調為國際買家提供渠道，也有助於推進其他重要的社會目標，包括以負擔得起的交通作為關鍵槓桿來減少全球貧困；改善世界各地人們的工作成果、通勤、提高教育水平或獲得醫療保健等。在接下來的幾週內，我們打算發布我們的首份 ESG 報告，我們將在其中進一步披露我們在循環經濟中的作用和影響。

And with that, I'll turn it over to John North, our CFO, to walk through the third quarter financial results.

有了這個，我將把它交給我們的首席財務官 John North，以了解第三季度的財務業績。

Thanks, Jeff, and good morning. I'll make a few comments on our results, and then we can open it up for some questions.

謝謝，傑夫，早上好。我將對我們的結果發表一些評論，然後我們可以打開它提出一些問題。

For the third quarter, global revenue increased $206 million or 28%, which included a $7.2 million headwind due to currency. Global service revenue increased $142.5 million or 23%, primarily due to higher average selling prices and increased volume. U.S. service revenue grew 23%, and international experienced an increase of 19% despite significant currency headwinds. We saw continued strength in average selling prices, which grew 13% year-over-year for the quarter. U.S. ASPs were up 14%. The Manheim Index is lower than January record levels but remained historically elevated, ending April at 221.2, which was an increase of 14% year-over-year. That trend has continued in May. The mid-month index, which was released a couple of days ago, is up sequentially 0.7% and 9.7% year-over-year.

第三季度，全球收入增長 2.06 億美元或 28%，其中包括 720 萬美元的匯率不利因素。全球服務收入增加了 1.425 億美元，增幅為 23%，這主要是由於平均售價上漲和銷量增加所致。美國服務收入增長了 23%，國際服務收入增長了 19%，儘管存在重大的貨幣逆風。我們看到平均售價持續走強，本季度同比增長 13%。美國平均售價上漲 14%。曼海姆指數低於 1 月份的創紀錄水平，但仍處於歷史高位，4 月份收於 221.2，同比增長 14%。這種趨勢在 5 月份仍在繼續。幾天前發布的月中指數同比分別上漲 0.7% 和 9.7%。

U.S. insurance pre-accident ACVs were up 29% or $3,700 roughly as they continue to catch up with the reality of current used car values. Purchased vehicles continue to comprise a larger percentage of our overall revenue mix, driven by both unprecedented used car values and growth in volume, particularly in our consumer-facing Cash For Cars business in the United States and from expansion in Germany. Purchased vehicle sales increased $64 million or 58%. U.S. purchased vehicle revenue was up 56% over the prior year, and international grew 62%. Purchased vehicle cost of sales grew $63 million or 66%, exceeding the growth in revenue. As a result, purchased vehicle gross profit increased modestly by $800,000 or 5.3% overall.

美國保險事故前 ACV 上漲了 29% 或大約 3,700 美元，因為它們繼續趕上當前二手車價值的現實。在前所未有的二手車價值和銷量增長的推動下，購買的車輛繼續在我們的整體收入組合中佔據更大的比例，特別是在我們面向消費者的美國汽車現金業務和德國的擴張中。購車銷售額增加了 6400 萬美元或 58%。美國購車收入比上年增長 56%，國際增長 62%。購買車輛的銷售成本增長了 6300 萬美元或 66%，超過了收入的增長。因此，購車毛利小幅增長 800,000 美元或總體增長 5.3%。

Global gross profit in the third quarter increased by $55 million or 14%, and our gross margin percentage decreased by approximately 550 basis points to 46.4%. U.S. margins decreased from 55% to 50%, and international margins decreased from 37% to 29%. As was true last quarter, this margin decline was primarily attributable to 2 factors: approximately 250 basis points of decline was due to purchased vehicles from both a mix shift to more of them and from the decline in gross margin rate on the vehicles relative to their absolute values increase. The balance of the margin contraction was attributable to cost inflation in both towing and labor, offset partially by higher revenue per unit and volume growth. We believe we can continue to increase margin and returns on capital over time, however, as we benefit from scale and find further operational efficiencies through technology and innovation.

第三季度全球毛利增加 5500 萬美元或 14%，我們的毛利率下降約 550 個基點至 46.4%。美國利潤率從 55% 下降到 50%，國際利潤率從 37% 下降到 29%。與上一季度一樣，這一利潤率下降主要歸因於兩個因素：大約 250 個基點的下降是由於購買的車輛從混合轉向更多，以及車輛的毛利率相對於它們的下降絕對值增加。利潤率收縮的平衡歸因於拖車和人工成本的上漲，部分被較高的單位收入和銷量增長所抵消。然而，我們相信隨著時間的推移，我們可以繼續提高利潤率和資本回報率，因為我們從規模中受益，並通過技術和創新進一步提高運營效率。

I will now move to a discussion of G&A expenditures, excluding stock compensation and depreciation. G&A spend in the quarter increased $11.1 million. Approximately $6.6 million of the increase was attributable to certain (inaudible) legal items, and we have presented this adjustment net of tax in our non-GAAP reconciliation. Adjusting for this, our G&A increased $4.5 million or 11.5% from $39.1 million to $43.6 million. While G&A can be volatile from period to period, over the longer term, we anticipate G&A leverage to improve as we grow our business and create additional opportunities for efficiency.

我現在將討論 G&A 支出，不包括股票補償和折舊。本季度的 G&A 支出增加了 1110 萬美元。大約 660 萬美元的增長歸因於某些（聽不清）法律項目，我們在我們的非 GAAP 對賬中提出了這一調整淨稅額。對此進行調整後，我們的 G&A 增加了 450 萬美元或 11.5%，從 3910 萬美元增加到 4360 萬美元。雖然 G&A 可能會在不同時期波動，但從長遠來看，我們預計 G&A 的槓桿作用會隨著我們業務的增長而提高，並創造更多提高效率的機會。

Our GAAP operating income increased by 14% from $328 million to $373 million. And adjusting for the G&A item I mentioned a moment ago, it increased 16% to $379 million. Third quarter income tax expense was $91 million at a roughly 25% effective tax rate. Adjusting for the tax benefit associated with the exercise of stock options as well as certain legal matters and other discrete tax items, the effective tax rate would have been 25.2%. Third quarter GAAP net income decreased 3% from $287 million last year to 278 -- $279 million, excuse me, this year. Adjusted to remove the items detailed in our pro forma reconciliation included in the press release, non-GAAP net income increased 7.4% from $262 million last year to $282 million in the third quarter of this year.

我們的 GAAP 營業收入增長了 14%，從 3.28 億美元增至 3.73 億美元。調整我剛才提到的 G&A 項目後，它增長了 16%，達到 3.79 億美元。第三季度所得稅費用為 9100 萬美元，有效稅率約為 25%。調整與行使股票期權以及某些法律事項和其他離散稅項相關的稅收優惠後，實際稅率為 25.2%。第三季度 GAAP 淨收入從去年的 2.87 億美元下降 3% 至 278 - 2.79 億美元，對不起，今年。調整以刪除我們在新聞稿中包含的備考對賬中詳述的項目，非 GAAP 淨收入從去年的 2.62 億美元增長 7.4% 至今年第三季度的 2.82 億美元。

Our global inventory at the end of April increased 5.3% from last year and 7% excluding low-value units from wholesalers and charities, for example. This is comprised of a year-over-year increase of 1.9% for the U.S. and 31% for international. The increase in inventory is largely a function of accident frequency and miles driven returning to normal, offset by a decline in total loss frequency, as Jeff commented on a few moments ago.

例如，我們 4 月底的全球庫存比去年增加了 5.3%，不包括來自批發商和慈善機構的低價值產品則增加了 7%。其中美國同比增長 1.9%，國際同比增長 31%。正如傑夫剛才評論的那樣，庫存的增加主要是事故頻率和行駛里程恢復正常的函數，被總損失頻率的下降所抵消。

Now to briefly highlight our liquidity and cash flow. As of April 30, 2022, we had $2.9 billion of liquidity comprised of $1.7 billion of cash and cash equivalents and an undrawn revolving credit facility with capacity of over $1.2 billion. Given the recent increase in interest rates, we have elected to call the $400 million of private placement notes due in $100 million tranches between now and 2029. We will incur a modest prepayment penalty but believe this to be the superior choice given cash on hand and associated interest savings over the next 7 years. We have notified the note holders and anticipate retiring the debt early next week. Operating cash flow for the quarter increased by $48 million year-over-year to $417 million, driven by stronger earnings. We invested $79 million in capital expenditures in the quarter, and over 80% of this amount was attributable to capacity expansion as we continue to prioritize the investments Jeff spoke of a moment ago.

現在簡要強調我們的流動性和現金流量。截至 2022 年 4 月 30 日，我們擁有 29 億美元的流動資金，包括 17 億美元的現金和現金等價物以及容量超過 12 億美元的未提取循環信貸額度。鑑於近期利率上升，我們選擇從現在到 2029 年分批贖回 4 億美元的私募票據，分 1 億美元到期。我們將承擔適度的提前還款罰金，但相信這是更好的選擇，因為手頭有現金和未來 7 年的相關利息節省。我們已通知票據持有人並預計在下周初償還債務。在強勁收益的推動下，本季度運營現金流同比增長 4800 萬美元至 4.17 億美元。我們在本季度投資了 7900 萬美元的資本支出，其中超過 80% 用於產能擴張，因為我們繼續優先考慮 Jeff 剛才提到的投資。

And with that, we'll conclude our prepared remarks. We're happy to take some questions.

至此，我們將結束我們準備好的發言。我們很樂意回答一些問題。

(Operator Instructions) Our first question comes from Bob Labick with CJS.

（操作員說明）我們的第一個問題來自 CJS 的 Bob Labick。

It's Pete Lukas for Bob. You're showing nice unit growth. And despite what we think are suppressed industry volumes due to lower total loss frequency and lower whole car auction volumes, do you think you have sufficient capacity for expected volume growth when used car prices do recede? And what's the pipeline like for additional land purchases?

鮑勃是皮特·盧卡斯。你表現出不錯的單位增長。儘管我們認為由於較低的總損失頻率和較低的整車拍賣量而抑制了行業銷量，但您認為當二手車價格確實回落時，您是否有足夠的能力來實現預期的銷量增長？購買額外土地的渠道如何？

In short, the capacity efforts -- I appreciate the question, Pete. Our capacity expansion efforts are -- have been ongoing for years. You first heard about the 20/20/20 initiative in the spring of 2016. So that's 6 years ago. And our land acquisition, as you know, during that period of time has been elevated even relative to our history, during which we bought land almost as much as we could find.

簡而言之，能力方面的努力——皮特，我很欣賞這個問題。我們的產能擴張努力已經持續多年。您第一次聽說 20/20/20 計劃是在 2016 年春天。那是 6 年前的事了。正如你所知，我們的土地收購在那段時間甚至相對於我們的歷史來說已經有所提高，在此期間我們幾乎盡可能多地購買土地。

Nowadays, those land purchases continue. And we do believe we're well equipped to handle a cyclical rebound as used car prices decline. So we can handle that volume as it comes, but we are still purchasing land in anticipation of future growth as well, both in the day-to-day business as well as our catastrophic readiness in light of increased volatility. It's not just the need for more land overall, it's also to accommodate greater volume. It's also an increased ability to handle spikes that are attributable to storm activity as well.

如今，這些土地購買仍在繼續。而且我們確實相信，隨著二手車價格下跌，我們有能力應對周期性反彈。因此，我們可以處理這個數量，但我們仍在購買土地，以期未來增長，無論是在日常業務中，還是在波動性增加的情況下，我們都做好了災難性的準備。這不僅需要總體上更多的土地，還需要容納更大的體積。它還提高了處理由風暴活動引起的尖峰的能力。

Great. And one more for me, just in terms of yard costs. Revenue unit and yard costs, the cost to process a unit are both rising rapidly. Can you talk about the outlook and drivers for cost to process a unit? And if inflation does abate, how much might yard costs pull back? And have there been any structural changes to the cost to process a unit?

偉大的。對我來說還有一個，就庭院成本而言。收入單位和場地成本，加工單位的成本都在迅速上升。你能談談處理單位成本的前景和驅動因素嗎？如果通貨膨脹確實減弱，堆場成本會回落多少？處理一個單位的成本是否有任何結構性變化？

Appreciate the question. No structural changes per se. I think like many businesses, or perhaps most businesses in this global economy, the inflationary forces -- and we've always faced inflation in past quarters and past years. Perhaps we'll be talking more about health care expenditures in some instances. In some cases, we talk about fuel and the like. Today, those key drivers, of course, are fuel to the extent that we use our own fleet to pickup trucks, certainly, there are increased costs for vehicles and loaders and the like. And to the extent that we use third parties to manage our logistics or to retrieve vehicles for us, they in turn are facing elevated fuel, labor, vehicle costs and the like. So nothing unusual. So I wouldn't characterize it as a structural change or a structural shift, just the same underlying variables that most businesses are facing today.

感謝這個問題。本身沒有結構變化。我認為像許多企業，或者也許是全球經濟中的大多數企業一樣，通貨膨脹的力量——我們在過去幾個季度和過去幾年一直面臨通貨膨脹。也許在某些情況下我們會更多地談論醫療保健支出。在某些情況下，我們會談論燃料等。今天，這些關鍵驅動因素當然是我們使用自己的車隊來皮卡車的燃料，當然，車輛和裝載機等的成本增加了。在某種程度上，我們使用第三方來管理我們的物流或為我們取回車輛，他們反過來又面臨著燃料、勞動力、車輛成本等的增加。所以沒有什麼不尋常的。所以我不會將其描述為結構性變化或結構性轉變，只是大多數企業今天面臨的相同潛在變量。

Our next question comes from Daniel Imbro with Stephens Inc.

我們的下一個問題來自 Stephens Inc. 的 Daniel Imbro。

Congrats on the quarter. Jeff, I had a question on the total loss rate dynamics. I think it makes a lot of sense, obviously, with prices high, what's going on there. But for that to revert and for total loss rates start increasing, do we need prices to move absolutely lower? Or do they just need to stop increasing at these elevated rates? Or said another way, if prices were to stay higher for longer or maybe just slowly moderate from here, would that be enough to call a total loss rate to start increasing? Or do we really need to see a pretty steep move lower in pricing, you think, before that reverts to the long-term trend?

祝賀這個季度。傑夫，我有一個關於總損失率動態的問題。我認為這很有意義，顯然，在價格高的情況下，那裡發生了什麼。但要恢復這種情況並且總損失率開始上升，我們是否需要價格絕對走低？還是他們只需要停止以這些高速率增長？或者換句話說，如果價格保持在較高水平更長的時間，或者可能只是從這裡開始緩慢放緩，這是否足以讓總損失率開始上升？或者我們真的需要看到價格大幅下跌，你認為，在恢復長期趨勢之前？

A fair question. I think this is an unusual enough moment in history that it's tough to forecast from this as the baseline in the sense that this is the first time I can remember that I could sell my truck which is 2 years old for well north of what I paid for 2 years ago, having put 20,000 miles on it, right? So it's tough to extrapolate too much from today's trends. I don't think that's the -- so I think a reversion to anything resembling historical norms, I think, would drive total loss frequency up. I don't think that necessarily means a very radical change in used car prices, but I think it does mean that used cars that are 2 years old can't sell for meaningfully more than new ones.

一個公平的問題。我認為這是歷史上一個非常不尋常的時刻，很難以此為基准進行預測，因為這是我第一次記得我可以賣掉我已經使用了 2 年的卡車，價格遠高於我支付的價格2 年前，已經行駛了 20,000 英里，對嗎？所以很難從今天的趨勢中推斷太多。我不認為那是 - 所以我認為回歸任何類似於歷史規範的東西，我認為，會提高總損失頻率。我認為這不一定意味著二手車價格會發生非常根本的變化，但我認為這確實意味著使用了 2 年的二手車的售價不能比新車高出很多。

Got it. That's helpful. And then just moving to the noninsurance piece. Obviously, a lot of change in the wholesale market now. I'm curious with the sale of ADESA, how do you think that creates opportunities for Copart's noninsurance business, specifically thinking about things like repossessed vehicles, which need to be stored on land? And obviously, you guys have a huge advantage there. Just curious how you view the wholesale market as a potentially growth opportunity and how that changes with what's going on with the sale of ADESA.

知道了。這很有幫助。然後轉到非保險部分。顯然，現在的批發市場變化很大。我對出售 ADESA 很好奇，您認為這會如何為 Copart 的非保險業務創造機會，特別是考慮需要存放在土地上的收回車輛之類的事情？顯然，你們在那裡有巨大的優勢。只是好奇您如何將批發市場視為潛在的增長機會，以及它如何隨著 ADESA 的出售而發生變化。

Yes. It's a fair question. I think we perceive that and acted upon that kind of business as an opportunity for years and have pursued that business and built the capabilities to service those types of customers and have made good progress in that regard. Industry changes, like the one you mentioned, I think cause disruption to the status quo. So I think it's a potentially favorable catalyst for us. But ultimately, we still have to prove our value proposition, deliver excellent returns to our sellers, provide excellent service to them as well. So it's a helpful fact perhaps on the margin, but ultimately, the challenge is ours, and we think we'll rise to meet it.

是的。這是一個公平的問題。我認為我們多年來一直將這種業務視為一個機會，並以此為契機採取行動，並一直致力於該業務並建立了為這些類型的客戶提供服務的能力，並在這方面取得了良好的進展。行業變化，就像你提到的那樣，我認為會破壞現狀。所以我認為這對我們來說是一個潛在的有利催化劑。但最終，我們仍然必須證明我們的價值主張，為我們的賣家提供豐厚的回報，並為他們提供優質的服務。所以這也許是一個有用的事實，但最終，挑戰是我們的，我們認為我們會奮起迎接它。

Perfect. And then last one, just kind of a modeling question, John, just following up. We've seen another step-up in the mix of vehicle sales for service. It looks like it's happening both in the U.S. and internationally. Is there any change on what insurance carriers provide there? Or can you provide some color maybe on why that step-up keeps continuing on the purchased vehicle side other than just used vehicle prices?

完美的。然後是最後一個，只是一個建模問題，約翰，只是跟進。我們已經看到汽車銷售服務組合的又一次升級。看起來它在美國和國際上都在發生。那裡提供的保險公司有什麼變化嗎？或者您能否提供一些顏色來說明為什麼除了二手車價格之外，購買的車輛價格繼續上漲？

Yes. I mean it's a combination of vehicle prices and also units. And as we mentioned, we've seen significant growth in the U.S. in our consumer-facing business, our Cash For Cars business, where we buy lower-value vehicles directly from consumers. That's been growing rapidly. We made great progress there. And it's incremental liquidity in the marketplace. So we're happy to have it. It doesn't displace other business in the U.S. per se. So we're happy to have those cars as well.

是的。我的意思是它是車輛價格和單位的組合。正如我們所提到的，我們在美國看到了面向消費者的業務、我們的汽車現金業務的顯著增長，我們直接從消費者那裡購買價值較低的汽車。這一直在迅速增長。我們在那裡取得了很大進展。這是市場上的增量流動性。所以我們很高興擁有它。它本身不會取代美國的其他業務。所以我們也很高興擁有這些汽車。

Internationally, I think really is a testament to the success we're having in Germany. We've seen great growth there in terms of assignment volume. And like many nascent markets, oftentimes, you're starting providing insurance carriers with more certainty, which requires a greater mix of purchased vehicle contracts. That business evolved exactly the way it did in the U.S. and in the U.K., whereas we build trust and relationships and demonstrate tangible returns to insurance carriers, we can align and move to a more consignment-based model. And so you've seen both of those.

在國際上，我認為這確實證明了我們在德國取得的成功。我們在任務量方面看到了巨大的增長。和許多新興市場一樣，通常情況下，您開始為保險公司提供更多確定性，這需要更多的購買車輛合同組合。該業務的發展方式與它在美國和英國的發展方式完全相同，雖然我們建立了信任和關係並向保險公司展示了切實的回報，但我們可以調整併轉向更加基於寄售的模式。所以你已經看到了這兩個。

Our next question comes from Craig Kennison with Baird.

我們的下一個問題來自 Craig Kennison 和 Baird。

Jeff, congratulations on your promotion to co-CEO. I guess, what should investors clients or employees expect from that change?

傑夫，祝賀你晉升為聯席首席執行官。我想，投資者客戶或員工應該對這種變化有什麼期望？

I think -- Copart, as you know, I think, has long been -- has long had a very collaborative culture to begin with. So we make decisions based on the data and debating the merits of (inaudible) XYZ. So I think in many respects, business continued as it did before. I was President of the business before and worked closely with our international teams and our U.S. functions and our customers to drive excellent outcomes for them. So I think from your perspective and for most of the outside world, not a radical change from the day before.

我認為 - Copart，正如你所知，我認為，長期以來 - 長期以來一直擁有非常協作的文化。因此，我們根據數據做出決策並討論（聽不清）XYZ 的優點。所以我認為在很多方面，業務都像以前一樣繼續進行。我之前擔任業務總裁，與我們的國際團隊和我們的美國職能部門以及我們的客戶密切合作，為他們帶來出色的成果。所以我認為從你的角度和大多數外部世界來看，與前一天相比並沒有發生根本性的變化。

Got it. And your business is not overly cyclical, but to the extent the broader economy is headed for a recession, what can you do to prepare for that outcome?

知道了。您的業務並不過分週期性，但就更廣泛的經濟走向衰退而言，您可以做些什麼來為這種結果做準備？

A recession, which, of course, is top of mind for everyone, I think the -- historically, I would have told you that it can lead to higher unemployment. We're, of course, today at nearly all-time low employment levels, but it can lead to elevated unemployment, and therefore, reduction in commuting for work and otherwise. And of course, over the course of the past 2 years, we've seen a decline in that commuting traffic anyway even as the economies -- the global economy has boomed.

經濟衰退當然是每個人最關心的問題，我認為——從歷史上看，我會告訴你它可能導致更高的失業率。當然，我們今天的就業水平幾乎處於歷史最低水平，但這可能會導致失業率上升，從而減少上班和其他方面的通勤。當然，在過去 2 年的過程中，我們已經看到通勤交通量有所下降，即使經濟 - 全球經濟蓬勃發展。

So I think it's difficult to prepare for it. I think our assumption is that we will have to continue growing our capacity and serving our customers with greater volumes tomorrow than today. And so I think preparation, we're ready for it if it comes. But I don't know that it changes the trajectory of how we manage the business day to day.

所以我認為很難為此做好準備。我認為我們的假設是，明天我們將不得不繼續提高我們的產能，並以比今天更大的數量為我們的客戶提供服務。所以我認為準備工作，如果它來了，我們已經準備好了。但我不知道它是否會改變我們日常管理業務的軌跡。

And I guess just as a follow-up related to National Powersport Auctions, are you seeing any rise in repossessions as the economy slows in that particular category?

我想就像與 National Powersport Auctions 相關的後續行動一樣，隨著該特定類別的經濟放緩，您是否看到收回數量有所增加？

If so, modestly. I think it's -- we've been on a many-year run of very low repossessions and certainly over the course of the past few years because there's so much equity value in any loan outstanding that wasn't issued very, very recently. Those are almost always in the money. So the repo volumes remain low. Even if you're struggling to make your payments, you can likely cash in your asset, whether that's a car or a bike for that matter, for positive equity not negative.

如果是這樣，謙虛。我認為這是 - 我們多年來一直處於非常低的收回率，當然在過去幾年中也是如此，因為最近沒有發行的任何未償還貸款的股權價值都很高。這些幾乎總是在金錢中。因此，回購交易量仍然很低。即使您正在努力支付您的付款，您也可以兌現您的資產，無論是汽車還是自行車，因為資產是正資產而不是負資產。

Our next question comes from John Healy with Northcoast Research.

我們的下一個問題來自 Northcoast Research 的 John Healy。

I wanted to ask a big-picture question. Obviously, land has been the right move for you guys for a long period of time. But Jeff, you made a comment about investing in the infrastructure at Copart. As I think about the needs of the business going forward and you talk about more volumes coming to you guys at some point with the total loss rate getting back on that long-term trajectory, how do you think about the towing capacity in the business? And if volumes do pick up from here, are the pressures in towing only going to get worse? And is there any thought to potentially internalizing the logistics or towing side of the business? Obviously, the balance sheet is a fortress. And it would seem like you'd have the ability to maybe pivot to making towing an internal competency rather than an outsourced item. And I would love to kind of hear your thoughts on the pluses and minuses of that.

我想問一個大問題。很明顯，很長一段時間以來，土地一直是你們的正確選擇。但是 Jeff，你對投資 Copart 的基礎設施發表了評論。當我考慮業務發展的需求時，你談到在某個時候會有更多的交易量，總損失率回到長期軌道上，你如何看待業務的牽引能力？如果貨量確實從這裡回升，牽引的壓力是否只會變得更糟？是否有可能將業務的物流或牽引方面內部化？顯然，資產負債表是一座堡壘。看起來你有能力將牽引作為一項內部能力而不是外包項目。我很想听聽您對此的優缺點的看法。

Yes. Great question and one we or constantly reevaluating. I think first -- on the first half of your question, what happens when volumes pick up to our demand for towing capacity. I think there's so many confounding variables. The real question is what's caused that volume to go up, right? Is the used car prices have softened somewhat and so total loss frequency reverts to its historical trends? And we see many more cars being towed instead of repaired. That's one scenario. If you tell me there were a dramatic global economic downturn, leading to very high unemployment and suddenly heightened availability of drivers, that would be a different question altogether.

是的。很好的問題，我們或不斷重新評估。我認為首先 - 關於你問題的前半部分，當數量增加到我們對牽引能力的需求時會發生什麼。我認為有很多混淆變量。真正的問題是是什麼導致了音量上升，對吧？二手車價格是否有所回軟，因此全損頻率恢復到歷史趨勢？我們看到更多的汽車被拖走而不是被修理。那是一種情況。如果你告訴我全球經濟急劇下滑，導致失業率非常高，司機的可用性突然增加，那將是一個完全不同的問題。

But as to your more general question, we have long had a mix, certainly very heavily in favor of third-party contractors now for many, many years to retrieve vehicles for us, but we've also operated our own fleet. Historically, the logic there was we wanted to have some capacity to serve, in particular, in storms because that's when drivers are, of course, in the shortest supply. When we certainly have elevated 5x, 10x ordinary day-to-day volume in a major metro area, having drivers migrate there from elsewhere in the U.S. is challenging. So we have built our own capacity, our catastrophic fleet, so to speak, to serve our customers in their times of need and ours.

但關於你更籠統的問題，我們長期以來一直在混合，當然現在非常支持第三方承包商，多年來為我們取回車輛，但我們也經營自己的車隊。從歷史上看，我們的邏輯是希望有一定的服務能力，尤其是在暴風雨中，因為那是司機供應最短缺的時候。當我們在一個主要都市區的日常交通量確實增加了 5 倍、10 倍時，讓司機從美國其他地方遷移到那裡是一項挑戰。因此，我們已經建立了自己的能力，可以說是我們災難性的艦隊，可以在我們和我們的客戶有需要的時候為他們提供服務。

We are also evaluating doing more of that on a day-to-day basis as well, not per se because of the fortress balance sheet, but because it may allow us to better serve our customers. And so we have purchased certainly meaningfully more trucks in the past couple of years than we had previously for that expressed purpose.

我們也在評估在日常基礎上做更多的事情，這本身並不是因為堡壘資產負債表，而是因為它可以讓我們更好地為客戶服務。因此，在過去幾年中，我們購買的卡車數量肯定比我們之前出於該明確目的購買的卡車數量多得多。

Long term, we continue to think there are technology solutions that can help increase efficiencies for our logistics, including, by the way, expansion of footprint. Every new yard we add reduces, to some extent, the miles that any given car has to be towed to get to a Copart facility but as well as our technology, our location-based driver apps, which help to better dispatch, better deploy our drivers, whether they are in-house employees or third parties.

從長遠來看，我們仍然認為有一些技術解決方案可以幫助提高我們的物流效率，順便說一句，包括擴大足跡。我們添加的每個新院子都在某種程度上減少了任何給定汽車必須被拖到 Copart 設施的英里數，但我們的技術，我們基於位置的驅動程序應用程序，有助於更好地調度，更好地部署我們的司機，無論他們是內部員工還是第三方。

Our next question comes from Chris Bottiglieri with BNP Paribas Exane.

我們的下一個問題來自法國巴黎銀行 Exane 的 Chris Bottiglieri。

Want to follow up on the purchased vehicle business a little bit. Is most of the growth in the U.S., is that coming from Copart Direct? Or are there other factors at work? And then can you tell us more about that Copart Direct car? Is the average selling price materially different than your overall? And then I have like a related GM question for this business.

想跟進一下購車業務。美國的大部分增長是否來自 Copart Direct？還是有其他因素在起作用？然後你能告訴我們更多關於那輛 Copart Direct 汽車的信息嗎？平均售價是否與您的整體售價存在重大差異？然後我有一個與此業務相關的通用汽車問題。

Yes. I think we called it out specifically in the U.S., Chris, because that's been a significant driver of the purchased vehicle volume in the U.S. market. And certainly, it's -- we've seen just overall vehicle inflation, which has driven the number higher as well, as I'm sure you can appreciate. So whatever business we had a year ago is certainly up dramatically when you just think about the change in the Manheim Index year-over-year. So those are the 2 big factors there.

是的。我認為我們特別在美國提出了這個問題，克里斯，因為這是美國市場購買車輛數量的重要驅動力。當然，它是——我們只看到了整體車輛通貨膨脹，這也推動了這一數字的上升，我相信你會理解的。因此，只要考慮曼海姆指數的同比變化，我們一年前的任何業務肯定都會大幅增長。所以這些是那裡的兩大因素。

In terms of the specific vehicle, I mean, go check out the website, it's cashforcars.com. Historically, we used to call it Copart Direct internally, but we have been branding it as Cash For Cars, and we put pretty dramatic resources into that business over the last couple of years and have seen pretty significant growth. So the average car is obviously significantly lower than our overall ASP. Think of these as the cars that would be a direct-to-wholesale piece. If you look into a CarMax or a Carvana, never a car that they're going to retail is to the tune of $1,500 or $1,000 or something like that.

就具體車輛而言，我的意思是，去網站上查一下，它是 cashforcars.com。從歷史上看，我們曾在內部將其稱為 Copart Direct，但我們一直將其命名為 Cash For Cars，並且在過去幾年中我們向該業務投入了大量資源，並取得了相當顯著的增長。所以平均汽車明顯低於我們的整體平均售價。將這些視為直接批發的汽車。如果你研究 CarMax 或 Carvana，你會發現他們要零售的汽車從來沒有達到 1,500 美元或 1,000 美元或類似的價格。

And then the growth otherwise in noninsurance also was driven by some of those other nonsalvaged sources that we mentioned in the opening comments including from rental car fleets corporate fleets, financial institutions and the like, so both.

然後，非保險業務的增長也受到我們在開場評論中提到的其他一些非挽救來源的推動，包括來自租車車隊、公司車隊、金融機構等，兩者都是。

Got you. Okay. So then just a related question, as the gross margins have been, I guess, under pressure for like 6, 7 quarters now, can you kind of speak what's causing that? Like what has the gross profit per purchased vehicle done over that same period? And [one of it] may be more stable in that metric. Can you just give us a sense for kind of how to think about the gross margins, the gross profit per vehicle one the purchased side?

明白了好的。那麼只是一個相關的問題，因為我猜毛利率已經承受了 6、7 個季度的壓力，你能說說是什麼原因造成的嗎？比如同期每輛購買車輛的毛利潤是多少？ [其中之一] 在該指標上可能更穩定。您能否讓我們了解一下如何考慮購買方的毛利率，每輛車的毛利潤？

Yes. I think there's a little bit of splitting, the difference. So gross margin, when you say that, I think, mathematically, you literally mean the percentage, right? And so that phenomenon is, as you know, in part a shift to purchased vehicles. And in practice, these are not -- we manage the duration of these assets very aggressively. We don't want to own purchased cars speculatively or purchased by speculatively. We want to buy them when it makes sense to and when necessary, and we want to sell them very quickly.

是的。我認為有一點分裂，不同之處。所以毛利率，當你這麼說時，我認為，從數學上講，你的意思是百分比，對吧？因此，如您所知，這種現像在一定程度上是向購買車輛的轉變。實際上，這些並不是——我們非常積極地管理這些資產的持續時間。我們不想投機地擁有購買的汽車或投機地購買。我們想在有意義和必要的時候購買它們，我們想很快賣掉它們。

So they're not long-duration assets, and therefore, we manage them to absolute dollar profit. And just by its nature, you will make a higher percentage return on a $1,000 car than you will at $5,000 car. You'll make more on a $5,000 car in absolute dollars but far less on a percentage basis. So as we've seen an increase in purchased car mix, that drives gross car margin rate down. As we've seen an increase in the value of the average purchased car, you'll also observe a decline in the percentage rate as a result as well.

所以它們不是長期資產，因此，我們管理它們以獲得絕對的美元利潤。就其本質而言，與 5,000 美元的汽車相比，1,000 美元的汽車的回報率更高。以絕對美元計算，你會在一輛價值 5,000 美元的汽車上賺更多，但按百分比計算則少得多。因此，正如我們看到購買的汽車組合有所增加，這導致汽車毛利率下降。正如我們看到的平均購買汽車價值的增加，您也會因此觀察到百分比率的下降。

(Operator Instructions) And our next question comes from Bret Jordan with Jefferies.

（操作員說明）我們的下一個問題來自 Jefferies 的 Bret Jordan。

On the noninsurance business, I mean, you called out Cash For Cars and fleet. You didn't mention dealer at all. Is that something that is really no longer a focus? Or maybe give us an update on how the lower-value dealer volumes look?

在非保險業務中，我的意思是，你呼籲為汽車和車隊提供現金。你根本沒有提到經銷商。那真的不再是重點了嗎？或者也許可以向我們提供有關低價值經銷商數量的最新信息？

Yes. Dealer volume is incredibly important to us and has been for years. In this environment, as you're well aware about the dealers, in particular, used car dealers are struggling for volume themselves. That remains a meaningful and profitable business for us and a huge long-term priority for us as well. We didn't call it out. Specifically, in this quarter, it was not a meaningful driver of growth for us for the quarter year-over-year.

是的。經銷商數量對我們來說非常重要，多年來一直如此。在這種環境下，正如您對經銷商的了解，特別是二手車經銷商正在為自己的銷量而苦苦掙扎。這對我們來說仍然是一項有意義且有利可圖的業務，也是我們的一項重要的長期優先事項。我們沒有叫出來。具體來說，在本季度，它並不是我們本季度同比增長的重要推動力。

Okay. And then I guess as you've shifted to some of these higher-value cars, purchased vehicles outside of the insurance space, could you update us maybe what percentage of your unit volume is Run and Drive? As we think about this as a cheap source of transportation globally, maybe how big a piece of your business is that?

好的。然後我猜你已經轉向其中一些高價值的汽車，在保險領域之外購買車輛，你能告訴我們你的單位體積中有多少百分比是運行和驅動？當我們將其視為全球廉價的運輸來源時，也許您的業務有多大？

So Run and Drive is kind of a specific technical term. But if -- to the -- I made the comment actually in the ESG section. If you wanted to guess how many of our cars are ultimately driven as cars again as opposed to harvested for parts, metals and the like, we think it's approximately half. Between 40% and 50% of the cars ultimately are used as cars, either in the U.S. or in the native market from which it originates or elsewhere in a developing economy where the cars, wrecked cars, are incredibly desirable, drivable cars to them.

所以 Run and Drive 是一種特定的技術術語。但如果 - 對於 - 我實際上在 ESG 部分發表了評論。如果你想猜猜我們有多少汽車最終被重新用作汽車，而不是用於零件、金屬等，我們認為大約有一半。 40% 到 50% 的汽車最終被用作汽車，無論是在美國還是在它的起源地本土市場，或者在發展中經濟體的其他地方，在這些地方，汽車，報廢的汽車，對他們來說是令人難以置信的、可駕駛的汽車。

Okay. Great. And one last question. I think you called out Germany doing well now. Could you talk about the cadence of that business? Is there anything -- I guess talk about the economy in the U.S., but obviously, a lot of instability. And in Eastern Europe, if you talk about the sort of the trajectory there in the last couple of quarters, is it improving? Any color would be helpful.

好的。偉大的。最後一個問題。我想你說德國現在做得很好。你能談談這項業務的節奏嗎？有什麼——我想是在談論美國的經濟，但很明顯，有很多不穩定因素。在東歐，如果你談論過去幾個季度的軌跡，它是否有所改善？任何顏色都會有幫助。

The unit volume trends in Germany are very encouraging. I think I mentioned on the last call, we are selling cars on a consignment basis for the majority of the top 10 carriers in Germany, none yet with the nationwide all-in deal, but certainly doing so at volume for a good number of insurance carriers today. They are, as you noted, affected more so even in the U.S. by the instability -- regional instability, let's call it, as a good number of their buyers come from countries affected by the recent conflict. So they will feel that to some extent. But nevertheless, earning good consignment volume on behalf of insurance carriers are making good forward progress there.

德國的單位體積趨勢非常令人鼓舞。我想我在上次電話會議上提到過，我們正在為德國前 10 大承運人中的大多數以寄售的方式銷售汽車，還沒有一家在全國范圍內進行全面交易，但肯定會大量購買保險今天的運營商。正如您所指出的，他們甚至在美國也受到不穩定的影響——我們稱之為區域不穩定，因為他們的許多買家來自受最近衝突影響的國家。所以他們會在某種程度上感受到這一點。但是，儘管如此，代表保險公司獲得良好的寄售量正在取得良好的進展。

Our next question comes from Ryan Brinkman with JPMorgan.

我們的下一個問題來自摩根大通的 Ryan Brinkman。

I appreciate the comments on ADESA and agree there's a clear market share opportunity for you in the physical or on-premise whole car auctions market, including as ADESA's physical auctions business is sold to Carvana, which dealers regard as of their competitor. Beyond ADESA losing market share, though, another potential outcome of that transaction is, I think, an acceleration toward the app-based, online-only, dealer-to-dealer business or even the online off-premise commercial consignor business. I believe that you don't participate in these parts of the whole car market today because you take possession of all the vehicles you sell, I think. So I just wanted to check in on that with you if you have any updated thoughts on the online-only portion of the whole car market as you increasingly expand into whole cars. Would it be relatively difficult or easy do you think for you to transition your whole car offering to online only, which I think there's been some speculation could over time have attractively high margins and returns when at scale?

我感謝對 ADESA 的評論，並同意您在實體或本地整車拍賣市場中有明顯的市場份額機會，包括 ADESA 的實體拍賣業務出售給 Carvana，經銷商認為 Carvana 是他們的競爭對手。不過，除了 ADESA 失去市場份額外，我認為該交易的另一個潛在結果是，加速向基於應用程序、僅在線、經銷商對經銷商業務甚至在線場外商業發貨業務的發展。我相信你今天不參與整個汽車市場的這些部分，因為你擁有你出售的所有車輛，我想。所以我只是想和你一起檢查一下，如果你對整個汽車市場的在線部分有任何更新的想法，因為你越來越多地擴展到整車。您認為將整個汽車產品轉變為僅在線銷售會相對困難還是容易，我認為有人猜測隨著時間的推移，大規模銷售可能會帶來極具吸引力的高利潤和回報？

Yes. It's a fair question and many nested questions therein. As for whether that economic model is ultimately compelling, I think time will tell. And there, as you know, are a number of participants in that space, some publicly traded and others not.

是的。這是一個公平的問題，其中有許多嵌套的問題。至於這種經濟模式最終是否具有說服力，我認為時間會證明一切。如您所知，該領域有許多參與者，有些是公開交易的，有些則不是。

We do follow that business model carefully. We do experiment with offerings like that and, in fact, have done so in our own business. We do continue to believe that liquidity is paramount. And so bringing the buyers and sellers together in an auction, online, yes, but bringing them together in an online auction in which we achieve price discovery and maximum returns for our sellers is ultimately the way we deliver value to them. Now whether that will someday be achieved virtually versus in our physical facilities, I think, remains to be seen. But I don't think that's a structurally challenging pivot for us per se. But today, the strong majority of our cars, as you noted, are still -- we are still physically touching them.

我們確實仔細遵循該商業模式。我們確實嘗試過這樣的產品，事實上，我們已經在我們自己的業務中這樣做了。我們仍然相信流動性是最重要的。因此，將買家和賣家聚集在在線拍賣中，是的，但將他們聚集在在線拍賣中，我們為賣家實現價格發現和最大回報，這最終是我們為他們提供價值的方式。現在，我認為，與在我們的物理設施中相比，這是否會在某一天以虛擬方式實現，還有待觀察。但我認為這對我們本身來說並不是一個結構性的挑戰。但是今天，正如您所指出的，我們絕大多數的汽車仍然——我們仍然在物理上接觸它們。

Okay. That's helpful. And then I think that there's obviously a number of macro factors helping you, including the rebound of miles driven, some of the increase in commodity prices since the conflict in Ukraine. But also isn't a lower dollar generally better for Copart given a greater translation of EBITDA and pounds back into dollars and because of the greater purchasing power of overseas customers in dollar terms? So the dollar has been arguably surprisingly stronger. And so I'm just curious if you could maybe dimension that stronger dollar headwind. If you see that, how large or forceful is that relative to some of these other macro tailwinds? And have you seen any impact yet on overseas demand from a stronger dollar?

好的。這很有幫助。然後我認為顯然有許多宏觀因素在幫助你，包括行駛里程的反彈，以及自烏克蘭衝突以來商品價格的部分上漲。但考慮到 EBITDA 和英鎊換回美元的可能性更大，並且海外客戶以美元計算的購買力更強，美元貶值對 Copart 來說不是更好嗎？因此，美元可以說出人意料地走強。所以我很好奇你是否可以衡量美元走強的逆風。如果你看到這一點，那麼相對於其他一些宏觀順風來說，它有多大或有多強大？您是否看到美元走強對海外需求的影響？

Yes. In short, we have. I think the -- let's say, not even the pound certainly, but also just the basket of international currencies period have certainly weakened relative to the dollar. And for the reasons you noted, we "prefer" a weaker dollar for our business both for the translation of earnings that we generate in other countries as well as for international participants at our U.S. auctions.

是的。簡而言之，我們有。我認為 - 比方說，即使是英鎊，也只是一籃子國際貨幣相對於美元而言肯定已經走弱。出於您提到的原因，我們“更喜歡”美元走弱，因為我們的業務既是為了我們在其他國家產生的收益的轉化，也是為了我們美國拍賣的國際參與者。

So that has had an effect. It's no doubt been a headwind in the business. I think the good news in our business today is that the auction liquidity is robust enough that there are always a very healthy number of countries looking at and bidding on vehicles, certainly many buyers in the U.S., across the U.S. and Canada, Mexico and Central and South America and the like that are bidding. So there's enough cumulative liquidity to mitigate those effects to some extent. But yes, if we woke up with a dollar at 2019 levels, we would see auction returns, all else equal, be meaningfully higher.

所以這產生了影響。這無疑是該行業的逆風。我認為今天我們業務的好消息是拍賣流動性足夠強勁，總是有非常多的國家在看車和競標車輛，當然還有美國、美國和加拿大、墨西哥和中部的許多買家以及正在競標的南美等地。因此，有足夠的累積流動性在一定程度上減輕這些影響。但是，是的，如果我們以 2019 年的水平醒來，我們會看到拍賣回報率在其他條件相同的情況下顯著提高。

Okay. And then just lastly, could you -- did you say or could you say what percentage of your buyers have historically been in Russia or Ukraine or what percent of your U.S. volume those countries might represent?

好的。然後最後，你能不能——你說或者你能說出你的買家中有多少百分比在歷史上是在俄羅斯或烏克蘭，或者你的美國銷量中這些國家可能代表的百分比是多少？

We haven't disclosed that, but it's -- they are meaningful in the sense that there were years in which many high-value cars would be sold, for example, to Ukraine and to Russia. It is -- it matters, but it's not a large percentage overall.

我們還沒有透露這一點，但它是——從某種意義上說，它們是有意義的，因為在過去的幾年裡，許多高價值的汽車將被出售給烏克蘭和俄羅斯。它是——它很重要，但總體上所佔比例並不大。

This concludes our question-and-answer session. I would like to turn the call back to Jeff Liaw for any closing remarks.

我們的問答環節到此結束。我想將電話轉回 Jeff Liaw 以聽取任何結束語。

Great. Thank you, everybody. We'll talk to you again after the fourth quarter in September.

偉大的。謝謝大家。我們將在 9 月的第四季度後再次與您交談。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。