Copart Inc (CPRT) 2024 Q3 法說會逐字稿

Good day, everyone, and welcome to the Copart, Inc. Third Quarter Fiscal 2024 Earnings Call. Just a reminder, today's conference is being recorded.

大家好，歡迎參加 Copart 公司 2024 財年第三季財報電話會議。提醒各位，本次會議正在錄音。

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. These forward-looking statements involve substantial risks and uncertainties. For more detail on the risks associated with the company's business, we refer you to the section titled Risk Factors in the company's annual report on Form 10-K for the year ended July 31, 2023, and each of the company's subsequent quarterly reports on Form 10-Q. Any forward-looking statements are made as of today, and the company has no obligation to update or revise any forward-looking statements.

在將電話會議交給管理層之前，我將分享Copart公司的「安全港」聲明。公司今天的演講包含聯邦證券法意義上的前瞻性陳述，包括管理階層目前對公司市場趨勢、機會和不確定性的看法。這些前瞻性陳述涉及重大風險和不確定性。有關公司業務相關風險的更多詳情，請參閱本公司截至2023年7月31日止年度的10-K表格年度報告中題為「風險因素」的部分，以及本公司此後的每份10-Q表格季度報告。所有前瞻性陳述均截至今日，本公司沒有義務更新或修訂任何前瞻性陳述。

I will now turn the call over to the company's CEO, Jeff Liaw.

現在我將把電話轉交給公司執行長廖傑夫。

Thank you. Good evening, and welcome, everyone, and thank you for joining us this evening.

謝謝。晚上好，歡迎各位，感謝大家今晚的到來。

We're pleased to report our results for the third quarter of fiscal 2024. I'll provide some brief comments about the business before handing the call to Leah to review our financial results, and then she and I will take your questions.

我們很高興向大家報告2024財年第三季的業績。在將電話交給莉亞來回顧我們的財務表現之前，我將簡要介紹一下業務狀況，之後我和她將回答大家的問題。

First, turning to our insurance business. We recently concluded our 24th Annual U.S. Insurance Advisory Board meeting in New York City. Every year, we gather in person to solicit feedback from our clients about the opportunities and challenges they face, which in turn, inform our service offerings, tech deployments and capital investment programs. Some of the priorities we addressed this year included a range of levers available to them to address escalating claims, cycle times and advanced charges in particular. We discussed at length our best-in-class auction liquidity, fueled by our exclusively online marketplace, which itself has been refined repeatedly since its launch in 2003.

首先，我們來談談保險業務。我們最近在紐約市結束了第24屆美國保險諮詢委員會年度會議。每年，我們都會舉行線下會議，收集客戶對當前機會和挑戰的回饋，這些回饋將指導我們的服務、技術部署和資本投資計劃。今年，我們重點討論了客戶可用於應對不斷增長的理賠、週期時間和預付費用等問題的多種措施。我們也深入探討了我們一流的拍賣流動性，這得益於我們完全在線的交易平台，該平台自2003年推出以來，已不斷完善。

Our uniquely global buyer base and the auction intelligence that results from the application of machine learning tools to the data from literally billions of interactions with sellers and members that correspond with tens of millions of vehicles sold. And in the spirit of our shared success, we hosted this event to coincide with the celebration of our 30th anniversary as a public company, and together with our clients, we rang the NASDAQ opening bell.

我們擁有獨一無二的全球買家群體，並透過機器學習工具分析數十億次賣家和會員互動數據（涵蓋數千萬輛汽車的銷售），從而建立了強大的拍賣智慧。秉承著共同成功的精神，我們舉辦了這場活動，以慶祝公司上市30週年，並與客戶一起敲響了納斯達克的開市鐘。

We continue to grow our business with our insurance clients. As anticipated, new and used vehicle prices have decreased somewhat steeply in recent days, while repair costs remain elevated, driving a strong and continued recovery in total loss frequency.

我們與保險客戶的業務持續成長。如預期，近幾日新車和二手車價格均大幅下跌，而維修成本依然居高不下，導致全損率持續強勁回升。

During our third fiscal quarter, we observed a 14% year-over-year decline in the Manheim Used Vehicle Value Index. And though ISS Fast Track reported a slight softening in accident severity of 1.3% or so for the fourth calendar quarter of 2023, accident severity is still up almost 9% when compared to the same quarter two years prior. The combination of these two forces, decreasing used vehicle values and elevated repair costs due to vehicle complexity and labor challenges in the repair industry has driven a recovery in total loss frequency back to pre-pandemic levels.

在第三財季，我們觀察到曼海姆二手車價值指數年減了14%。儘管ISS Fast Track報告顯示，2023年第四季事故嚴重程度略有下降，降幅約1.3%，但與兩年前同期相比，事故嚴重程度仍上升了近9%。二手車價值下降以及由於車輛複雜性和維修行業勞動力挑戰導致的維修成本上升，這兩個因素共同推動了全損率回升至疫情前水準。

Per CCC, total loss frequency for the first calendar quarter 2024 was 21.1% across all loss categories, up approximately 150 basis points versus the same time a year ago. We believe that long-run trends continue to make repairing vehicles less economically attractive to insurance carriers and totaling vehicles more economically attractive to them, and the total loss frequency will continue at steady long-term path upwards.

根據CCC的數據，2024年第一季所有損失類別的全損率達21.1%，較去年同期上升約150個基點。我們認為，長期趨勢將持續降低保險公司維修車輛的經濟效益，並提高車輛報廢的經濟效益，因此全損率將持續維持長期穩定上升的趨勢。

Our U.S. insurance volumes increased 6.8% year-over-year as we have lapped the effects of units from Hurricane Ian a year ago. Given the increasing frequency and magnitude of storm-related activity, we're somewhat hesitant to provide normalized growth trends that exclude the effect of storms, but it was a modest reduction in year-over-year growth as a result of the Ian vehicles sold a year ago.

由於去年颶風伊恩的影響已經消除，我們在美國的業務量比去年同期成長了6.8%。鑑於風暴相關活動的頻率和強度都在增加，我們不太願意提供剔除風暴影響後的正常化增長趨勢，但由於去年伊恩颶風造成的車輛銷售，同比增速略有下降。

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

接下來，我們更廣泛地談談應對災難性事件的問題。今年和去年，我們應對了多起規模較小的天氣事件，這些事件的總規模遠不及伊恩、艾達和哈維等大型災難性事件。儘管如此，這些規模相對​​較小的風暴仍然影響了美國各地的社區，包括休士頓地區的洪水和中部平原的龍捲風爆發。

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

我們對災難應變團隊和基礎設施的投資使我們能夠在這些事件中有效地回應客戶的需求，並凸顯了我們為提高我們所服務社區在應對不斷變化的氣候變遷趨勢方面的韌性所做出的貢獻。

We note also that major research groups are predicting a serious storm season ahead, predicting as many as 31 named storms in 2024, an increase of over 50% year-over-year. As a result, our focus remains on our proactive preparedness. Investing in our teams on the ground, our logistics technology, our fleet of vehicles and of course, our dedicated acreage reserved for handling the peak capacity needs that come with major events.

我們也注意到，各大研究機構預測未來將迎來一個嚴重的風暴季，預計2024年將出現多達31個命名風暴，比前一年增加50%以上。因此，我們將繼續專注於積極主動的準備工作，增加對第一線團隊、物流技術、車隊以及專用場地（用於應對大型活動帶來的高峰容量需求）的投入。

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

同樣地，在美國以外，我們正在利用我們的災難應變能力來支持我們在巴西南部和波斯灣的客戶，他們仍在遭受持續的歷史性洪水的影響。

I'll pause for a minute on our noninsurance business as well. We continue to grow our Blue Car business, which serves our bank and finance fleet and rental segment partners. In the third fiscal quarter, we observed year-over-year growth of 23% to almost 24%. Likewise, our dealer sales volume, a combination of our Copart Dealer Services business unit and NPA, our powersports auction platform increased unit volumes sold by almost 18%.

我還要簡要介紹一下我們的非保險業務。我們的Blue Car業務持續成長，該業務服務於我們的銀行和金融機構車隊以及租賃合作夥伴。在第三財季，我們實現了23%至近24%的年成長。同樣，我們的經銷商銷量（包括Copart經銷商服務業務部門和我們的動力運動拍賣平台NPA）也成長了近18%。

All told, our U.S. noninsurance automotive and dealer volume, excluding low value and wholesale units increased 19% year-over-year. Our growth is the result of our commitment to customer service and our auction liquidity. With each additional vehicle we earn the right to sell, we increase the attractiveness of our auction platform to the world's automotive buyers, drawing still more members to our auctions and to the benefit of all of our sellers new and old.

整體而言，我們在美國的非保險汽車及經銷商交易量（不包括低價值和批發車輛）較去年同期成長19%。我們的成長源自於我們對客戶服務的承諾以及我們拍賣平台的流動性。每增加一輛獲得銷售權的車輛，我們拍賣平台對全球汽車買家的吸引力就會增強，吸引更多會員參與我們的拍賣，最終惠及所有新舊賣家。

I'll conclude with a reflection -- a brief reflection on our first 30 years as a publicly traded company. Perhaps the single most distinctive characteristic of Copart today is our investment horizon. Even as we celebrate our 30th anniversary, our minds quickly shift to the work ahead of us to ensure a prosperous celebration with our clients of our 40th 50th and 60th as well. We'll continue to invest as we always have in our people, our technology and our real estate to deliver excellent results to our clients worldwide.

最後，我想簡要回顧一下我們作為一家上市公司走過的最初30年。或許，Copart如今最顯著的特徵就是我們的投資視野。即便在我們慶祝成立30週年之際，我們的目光也已迅速轉向未來的工作，以確保在40週年、50週年乃至60週年之際，我們也能與客戶共同慶祝，共創輝煌。我們將一如既往地持續投資於人才、技術和房地產，為全球客戶帶來卓越的成果。

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

接下來，我將把麥克風交給我們的財務長莉亞。

Thank you, Jeff.

謝謝你，傑夫。

I'll begin with our third quarter sales trends. During the quarter, our global unit sales increased over 11%, including the modest benefit of the consolidation of Purple Wave, while inventory increased 4% from the year ago period. This growth was a function of a partial recovery in total loss frequency and share gains.

首先，我將介紹我們第三季的銷售趨勢。本季度，我們的全球銷量成長超過11%，其中包括Purple Wave併入公司帶來的適度成長，而庫存較去年同期成長4%。這一增長得益於總損耗頻率的部分回升和市場份額的提升。

Focusing on our U.S. business, unit growth was over 9%, which reflected fee unit growth of over 9% and purchased unit growth of over 17%. Consignment or fee units continue to constitute the vast majority of our U.S. unit volumes.

聚焦美國業務，銷量成長超過9%，其中寄售銷量成長超過9%，採購銷量成長超過17%。寄售或寄售銷量仍佔據我們美國銷量的絕大部分。

Insurance unit volume increased about 7% year-over-year. As Jeff mentioned, our noninsurance unit volume growth has continued to outpace that of our insurance business. This volume growth substantially came from dealer units, which increased nearly 18% and fleet rental and finance units, which increased over 23%. Inventory levels in the U.S. increased over 3% in the quarter and over 5% when excluding low value in cat units.

保險業務銷量較去年同期成長約7%。正如傑夫所提到的，我們的非保險業務銷售成長持續超過保險業務。此銷售成長主要來自經銷商業務（成長近18%）及車隊租賃及融資業務（成長超過23%）。本季美國庫存水準成長超過3%，若剔除低價值的災害車輛，則成長超過5%。

Turning to our international business. We saw unit growth of over 21%, with fee units increasing nearly 21% and purchase units increasing by over 24%. Our international business ended the quarter with inventory levels over 7% ahead of prior year. For the quarter, global ASPs declined by about 3% from the year ago period, with U.S. insurance ASPs down less than 2% and international ASPs down about 5%. Overall, our ASPs continue to show resilience compared to the nearly 14% year-over-year decrease in the Manheim Used Vehicle Price Index.

接下來談談我們的國際業務。我們的銷量成長超過21%，其中收費銷量成長近21%，購買銷量成長超過24%。本季末，我們的國際業務庫存水準比上年同期高出7%以上。本季度，全球平均售價年減約3%，其中美國保險平均售價下降不到2%，國際平均售價下降約5%。整體而言，與曼海姆二手車價格指數較去年同期的降幅相比，我們的平均售價仍保持韌性。

Turning to our financial results for the third quarter. Global revenue increased to $1.13 billion, representing growth of over $105 million or about 10%. Global service revenue increased nearly $100 million or almost 12% for the third quarter, primarily due to increased volume. U.S. service revenue grew by over 10% and international service revenue grew by nearly 22% for the quarter. Global purchased vehicle sales for the third quarter increased $6 million or 3.5% and global purchased vehicle gross profit increased by over $2 million or over 17%. In the U.S., our purchased vehicle revenue was up nearly $7 million or 8%, while gross profit increased less than $1 million or almost 3%. This trend was primarily due to a mix shift towards lower ASP units in the U.S.

接下來來看看我們第三季的財務表現。全球營收成長至11.3億美元，成長超過1.05億美元，成長約10%。全球服務收入在第三季成長近1億美元，成長近12%，主要得益於銷售成長。美國服務收入成長超過10%，國際服務收入成長近22%。全球購車銷售額在第三季成長600萬美元，成長3.5%；全球購車毛利成長超過200萬美元，成長超過17%。在美國，我們的購車收入成長近700萬美元，成長8%，而毛利成長不到100萬美元，成長近3%。這一趨勢主要是由於美國市場銷售的產品組合轉向了平均售價較低的車型。

Internationally, purchased vehicle revenue decreased by less than $1 million or almost 1%, while gross profit increased by over $2 million or about 29%. These results were primarily driven by significantly higher margins on purchased units in Germany.

國際市場方面，購置車輛收入下降不到100萬美元，降幅近1%，毛利則成長超過200萬美元，成長約29%。這些成長主要得益於德國市場購置車輛利潤率的顯著提高。

Global gross profit increased to more than $525 million, an increase of over $42 million or about 9%, and our gross margin percentage decreased approximately 70 basis points to 46.6%. In the U.S., our gross profit margin decreased to 50.9% with D&A being the most impactful driver of margin compression as we continue to focus on investments in our yard infrastructure and technology. And our international gross profit margin increased to 27.6%.

全球毛利成長至超過5.25億美元，成長超過4,200萬美元，約9%，但毛利率下降約70個基點至46.6%。在美國，毛利率下降至50.9%，折舊和攤提是導致毛利率下降的主要因素，因為我們將繼續專注於對堆場基礎設施​​和技術的投資。國際毛利率則成長至27.6%。

Turning to general and administrative expenses excluding stock-based compensation and depreciation, spend in the quarter was $76 million, reflecting an increase of more than $23 million and less than $4 million on a sequential basis. As we've highlighted over the past quarter, our year-over-year G&A increase continues to reflect our investments in our sales, marketing, product and technology functions, the financial consolidation of Purple Wave into our results as well as an increase in third-party related projects. This increase includes 2 key system implementations, which we kicked off during the quarter relating to our finance and HR function. We expect these investments will result in more scalable processes and systems and provide us with a greater operating leverage over the long term.

剔除股權激勵及折舊後，本季一般及行政費用為7,600萬美元，季增超過2,300萬美元，但季增不到400萬美元。正如我們上個季度所強調的，我們同比一般及行政費用的成長持續反映了我們對銷售、行銷、產品和技術職能的投資，以及將Purple Wave的財務數據併入我們的業績，還有第三方相關項目的增加。此次成長包括我們在本季啟動的兩項關鍵系統實施項目，分別涉及我們的財務和人力資源職能。我們預計這些投資將帶來更具可擴展性的流程和系統，並在長期內為我們提供更大的營運槓桿。

Finally, GAAP operating income increased by over 4% to $437 million, and third quarter GAAP net income increased by over 9% to $382 million or $0.39 per diluted common share. During the quarter, we benefited from over $18 million of incremental interest income as we have actively invested our cash into treasury securities as well as a lower effective tax rate of 19.1%.

最後，GAAP營業收入成長超過4%，達4.37億美元；第三季GAAP淨收入成長超過9%，達到3.82億美元，即每股攤薄收益0.39美元。本季度，我們受惠於超過1,800萬美元的新增利息收入，這得益於我們積極將現金投資於國債，以及19.1%的較低實際稅率。

Turning to our capital structure. As of the end of April, we had $4.3 billion of liquidity, which is comprised of nearly $3.1 billion in cash and investments in held to maturity securities, and our capacity under our revolving credit facility of over $1.2 billion. We believe that our conservative capitalization is a distinct competitive advantage in our industry empowering us to operate our business with a horizon that prioritizes long-term success for both ourselves and our clients.

接下來談談我們的資本結構。截至4月底，我們擁有43億美元的流動資金，其中包括近31億美元的現金和持有至到期證券投資，以及超過12億美元的循環信貸額度。我們相信，穩健的資本結構是我們產業中顯著的競爭優勢，使我們能夠以優先考慮自身和客戶長期成功的視角來開展業務。

For the quarter, we generated operating cash flow of over $496 million and $408 million of free cash flow. Our capital expenditures in the quarter were about $88 million, with nearly all of our investments attributable to expanding our real estate and physical infrastructure to enhance capacity while simultaneously reducing our transportation costs and corresponding fuel consumption.

本季度，我們實現了超過4.96億美元的營運現金流和4.08億美元的自由現金流。本季資本支出約8,800萬美元，幾乎全部投資都用於擴大房地產和基礎設施，以提高產能，同時降低運輸成本和相應的燃料消耗。

As I've highlighted in the past, we expect our capital allocation strategy will enable Copart to focus entirely on delivering outstanding products and services. To further this objective, over the last 12 months, we have deployed over $540 million into our real estate portfolio, lease and technology. Today, our global portfolio of approximately 19,000 acres of outdoor vehicle storage, a robust fleet of transportation assets and more than 2 decades of virtual auction technology development are the foundation of what truly differentiates Copart.

正如我之前強調的，我們期望透過資本配置策略，使Copart能夠專注於提供卓越的產品和服務。為了進一步實現這一目標，在過去的12個月裡，我們已在房地產投資組合、租賃和技術方面投入了超過5.4億美元。如今，我們擁有約19,000英畝的全球戶外車輛儲存場地、強大的運輸資產車隊以及超過20年的虛擬拍賣技術研發經驗，這些構成了Copart真正與眾不同的基石。

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

那麼，傑夫和我將很樂意回答你們的問題。

(Operator Instructions). Our first question comes from the line of Bob Labick with CJS Securities.

（操作說明）我們的第一個問題來自CJS Securities的Bob Labick。

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

所以我想先問一個關於經銷商車輛銷售的問題。顯然，你們在這方面取得了很大的成功，但這裡先簡單介紹一下背景。我們先前的電話會議討論過二手車價格下跌、曼海姆指數以及由此導致的全損率上升，以及你們的殘值車平均售價之所以能保持穩定，是因為新增的殘值車往往是高端車型。所以問題是，隨著二手車價格的下跌，Copart和你們的經銷商車輛平均售價之間是否存在某種關係？

Bob, a fair question. I think there are some -- the natural effects. I think every auto auction business will encounter conversion implications as well, right, as seller expectations begin to align better with current market conditions, new conversion is very high in rising price environments. So by and large, we don't generally experience those, except but for 2021, '22, when we saw a very rapid increases in used vehicle prices that generally speaking, is not a long-term trend.

鮑勃，問得好。我認為會有一些影響——一些自然因素。我認為每個汽車拍賣行都會遇到轉換率波動，對吧？隨著賣家的預期與當前市場狀況更加吻合，在價格上漲的環境下，新的轉換率會非常高。所以總的來說，我們通常不會遇到這些問題，除了2021年和2022年，那段時間二手車價格出現了非常快速的上漲，但一般來說，這並非長期趨勢。

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

但短期內確實存在一些輕微的影響，但我認為這些影響會被銷售成長帶來的影響所掩蓋。因此，經銷商車輛的售價會略有下降，因為同樣的車型組合，其售價肯定低於一年前。但隨著我們取得卓越的業績，相關範圍內的總損失率有所上升，我們能夠有效服務經銷商的車型範圍也不斷擴大。同樣的原因，總損失率的上升也會對經銷商車輛產生一些次要影響。

Okay. Great. And then, I guess, just in general -- so you just mentioned that part. The -- how are ASPs trending all else equal? In other words, if total loss frequently -- if Manheim was flat year-over-year right now, you guys have obviously pushed more into dealer, you've added arbitration and inspection at certain points. And has your -- have your ASPs been going up over time? Or what have been the trends if you were to level set kind of the Manheim Index to Copart dealer ASPs?

好的，太好了。然後，我想，總的來說——您剛才提到了這一點。在其他條件相同的情況下，平均售價（ASP）的趨勢如何？換句話說，如果全損率很高——如果曼海姆（Manheim）目前的年均水準持平，而你們顯然加大了對經銷商的投入，並且在某些環節增加了仲裁和檢驗服務。那麼，你們的平均售價是否一直在上漲？或者說，如果將曼海姆指數與Copart經銷商的平均售價進行比較，趨勢如何？

So Bob, I think Manheim is down about 14% year-over-year. Our dealer units are down just a little over 5%. I think that's to Jeff's point, there is a mix shift going on within that population as we're adding higher-value units. We aren't exposed to the same type of overall headwinds that the broader used vehicle index is because we're naturally growing into the higher ASP buckets.

所以鮑勃，我認為曼海姆的銷量比去年同期下降了約14%。我們的經銷商銷量下降了略高於5%。我認為這印證了傑夫的觀點，隨著我們增加高價值車型，產品組合正在改變。我們不像整體二手車指數那樣面臨同樣的逆風，因為我們自然而然地向高平均售價區間發展。

And Bob, I'd say in both directions, the Manheim Used Vehicle Index, you followed us long enough to know has never been -- it's never been a perfectly linear predictor of outcomes at Copart auctions. I think over the very long haul, ASP performance has generally outpaced Manheim for the reasons you mentioned a moment ago, total loss frequency rising, improving the quality of cars that we sell and our mix, our growth among the noninsurance segment doing the same, right.

鮑勃，我想說，無論從哪個方面來看，曼海姆二手車指數（Manheim Used Vehicle Index）——你關注我們這麼久應該知道——從來都不是Copart拍賣結果的完美線性預測指標。我認為從長遠來看，平均售價（ASP）的表現總體上優於曼海姆，原因正如你剛才提到的：全損率上升、我們銷售的車輛品質和組合不斷提高，以及我們在非保險領域的成長，對吧？

But even then, we have -- our prices have certainly decreased less than Manheim has over the same comparable period, but that's -- that misalignment of the 2 metrics has always been true.

但即便如此，我們的價格在同一時期內的下降幅度肯定小於曼海姆，但這——這兩個指標之間的這種不一致一直存在。

Got it. Okay. And the last one for me. Just finishing up on dealer car for now. Where are -- you're obviously taking share. We don't see any other numbers as strong as that. So where is the growth coming from? Is it from physical auctions? Or is it from like the wholesale market, meaning you're actually growing the auction market, so to speak, these cars weren't going to be auctioned before. They were just kind of by a wholesaler behind the scenes and you're getting those cars? Or how -- where do you view the growth of your dealer cars mostly coming from?

明白了。好的。最後一個問題。我先說說經銷商車輛的狀況。你們的市佔率顯然成長很快。我們沒看到其他任何數據能與之匹敵。那麼，成長主要來自哪裡呢？是實體拍賣嗎？還是來自批發市場？也就是說，你們其實是在拓展拍賣市場，這些車以前是不會拍賣的，而是透過批發商私下交易，現在你們也開始銷售這些車了。或者說，你們認為經銷商車輛的成長主要來自哪裡？

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

我認為你準確地概括了我們所售車輛的競爭對手。保險業的情況比較特殊。但對於我們代表其他方銷售的車輛，銷售管道也多種多樣。具體來說，經銷商可以在自己的展廳銷售，也可以透過你所了解的其他線上管道銷售，還可以參加實體拍賣，甚至可以賣給持有這些車輛主要股份的批發商。

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

金融機構擁有不同的經營模式，而且如您所知，它們通常不會直接銷售車輛。租車公司有時會經營自己的準零售網站，直接銷售車輛。有些公司還會利用您所熟知的其他大型拍賣行。

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

所以，對於我們這些非保險用車市場來說，競爭格局無疑是多方面的。我認為我們確實在有效地競爭，但我們面對的是不同的競爭對手，目標客戶也是不同類型的銷售商。

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

我們的下一個問題來自法國巴黎銀行的克里斯·博蒂格列裡。

Perfect. Two high-level questions for you. I'll start with the first one. So Jeff, in the past, you've talked about how much higher total loss rates could be if insurers had full access to -- end-to-end access to data. So I'm curious just given some of the advancements in AI, I think you spoke to the conference and some of the more recent executive hires. Like how much closer are you want on that path to better monetizing that data and driving the better total loss-rate decisions?

好的。我有兩個比較高層次的問題想問您。我先問第一個。傑夫，您之前說過，如果保險公司能夠完全存取——也就是端到端地存取——數據，那麼全損率可能會高出多少。鑑於人工智慧領域的一些進展（我想您在會議上也提到過），以及最近一些高管的任命，我很好奇，您希望在更好地利用這些數據並製定更合理的全損率決策方面，取得多大的進展？

Yes, a great question. I think we're still in, perhaps, to provide some additional context on the -- on historical commentary on this front. We think there is -- the historical trend of total loss frequency increasing over time will assuredly continue over the long haul. Total loss frequency in 1980 was 4%. 10 years later, it was 5% in 1990 and today, it's 21%, right? So I think there's a pretty clear monotonic increase of total loss frequency over the long haul that we continue to observe.

是的，問得好。我想我們或許還有必要就此提供一些背景資訊──一些相​​關的歷史背景。我們認為，隨著時間的推移，全損率持續上升的歷史趨勢肯定會持續下去。 1980 年的全損率為 4%。 10 年後，1990 年為 5%，而如今已達到 21%，對吧？所以我認為，我們觀察到的全損率長期單調上升的趨勢非常明顯。

As for a snapshot today, we note very different total loss practices across even insurance companies even for like vehicles. And so the dispersion of practices today indicates that there are insurance companies who are leaving money on the table by repairing cars they arguably shouldn't. In the form of certainly delayed and extended rental car -- rentals they're paying for as well as the repairs and the supplements themselves.

就目前的情況來看，即使是同類型的車輛，不同保險公司在全損理賠方面的處理方式也有很大差異。這種做法的差異表明，有些保險公司為了省錢，不惜維修一些不該維修的車輛。這導致保險公司必須支付額外的租車費用，包括維修費和附加費，而這些費用無疑會延誤或延長租車時間。

And as you noted, we have offered and continue to offer a range of tools to them to allow them to expedite their decision-making to make total loss decisions faster and to make total loss decisions better. But as for true full integration of those tools truly individual car total loss decisions as opposed to general rules of thumb, right? It's easier for any insurance company to say if the repair estimate exceeds x percent of the intact value, you total it. If it is less than that, you don't. But in practice, you're actually better off making individual vehicle decisions. But as for the industry overall, that more enlightened data-informed decision early, I think there remains tremendous potential on that front. So besides the historical trend, lifting total loss frequency overall, even snapshot today of circumstances would never change. If markets circumstances were never to change, there still remains abundant opportunities to make decisions better and faster for insurance companies.

正如您所指出的，我們已經並將繼續向他們提供一系列工具，以幫助他們加快決策速度，更快、更好地做出全損賠償決定。但是，要真正全面整合這些工具，真正實現針對每輛車的全損賠償決策，而不是僅僅依靠一般的經驗法則，對嗎？對任何保險公司來說，如果維修估價超過車輛完好價值的 x%，就認定為全損；如果低於 x%，則不認定。這很容易做到。但實際上，針對每輛車做出決策才是更好的選擇。就整個行業而言，我認為在更早做出基於數據的明智決策方面，仍然存在巨大的潛力。因此，除了歷史趨勢（即全損事故發生率整體上升）之外，即使僅從當前情況來看，也不會發生根本性的改變。即使市場環境始終不變，保險公司仍有許多機會可以更快、更好地做出決策。

And then my second big picture question is on international mix, I think it's been a couple of years since you commented with that since -- I think last I recall, it was 50% to 55%. I just think given the lack of global vehicle production I would think, emerging markets, international buyers probably face even tighter supply that we face here in the U.S. So just curious if that's caused any shift in demand towards international that you've seen at your business at all?

我的第二個大問題是關於國際市場佔比的。我記得您上次談到這個話題已經是幾年前的事了——我記得當時的比例是50%到55%。考慮到全球汽車產量不足，我認為新興市場和國際買家可能面臨比美國更緊張的供應情況。所以我想知道，這種情況是否導致貴公司業務中出現任何轉移到國際市場的需求？

Yes. So I think the international buyer with each passing year becomes a more prominent and more important portion of our member base and buyer base. During our meeting with our insurance clients, we underscored for them and quantify for them just how important they were. I think it's safe to say that but for the very lowest-value vehicles that aren't even towed 100 miles to say nothing of being brought to overseas to Eastern Europe or to South America. But for those vehicles, international bidders are instrumental in driving the value of every car sold at Copart. So they today speak for a majority of the value of U.S. auctions, literally as buyers.

是的。我認為，隨著時間的推移，國際買家在我們會員和買家群體中所佔的比例越來越高，也越來越重要。在與保險客戶的會議上，我們向他們強調並量化了國際買家的重要性。當然，對於那些價值極低、甚至連100英里都不到的車輛來說，國際買家的重要性就顯得不那麼突出了，更不用說那些被運送到東歐或南美等海外地區的車輛了。但對於這些車輛而言，國際競標者在推動Copart每輛車的成交價值方面發揮著至關重要的作用。因此，如今他們作為買家，實際上代表了美國拍賣會價值的絕大部分。

And by the time you incorporate those international bidding activity for cars they buy or for cars for which they are the push bid, meaning the second high bid, which in some intellectual respect really dictates the selling price of the car or participate at the auction itself driving further bidding activity, that's approaching 90% of the cars we sell. But the international buyer is instrumental, and we'll make it a point to better highlight that on subsequent calls as well. But they are incredibly important and more important today than they were 5 years ago, and they will be more important 5 years from now than they are today.

算上他們參與的國際競標活動，無論是購買的車輛，還是他們參與的第二高出價（在某種程度上，這種出價實際上決定了車輛的最終售價），或者他們參與拍賣本身並帶動後續競價，這些都占我們售出車輛的近90%。國際買家至關重要，我們會在後續的電話會議中強調這一點。他們現在非常重要，比五年前更重要，五年後也必將更重要。

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

我們的下一個問題來自 Alice Wycklendt 與 Baird 的對話。

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

或許您是從宏觀層面思考保險業的通膨問題。我的意思是，所有人的保費都大幅上漲了。我很好奇您對後續影響有何看法，例如無保險駕駛人的壓力增加，或者我需要提供更多服務。也許這對降低全損率有好處。您如何看待這些潛在趨勢？

Presuming your question is principally U.S.-centric, right? The uninsured motorist ratios vary tremendously by market. For example, it won't surprise you, they're considerably higher for us in Brazil than they are in the U.S. or the U.K., for example. But for any given market, the uninsured motorist ratio, I think is a function, yes, of rates, which in turn are a lagged byproduct of inflation. So many of our insurance clients, I think, are just now in recent quarter achieving the rate relief that comes with state-level approvals for the changes they wanted to make, which then in turn correspond with inflated costs on repairs and personnel and so forth that you noted -- that you observed a moment ago.

假設您的問題主要針對美國，對嗎？不同市場的無保險駕駛人比例差異巨大。例如，您可能不會感到驚訝，巴西的無保險駕駛人比例遠高於美國或英國。但就任何特定市場而言，我認為無保險駕駛人比例確實與保費有關，而保費又是通貨膨脹落後的結果。我認為，我們許多保險客戶最近幾季才剛獲得州政府批准的保費調整，而這些調整又導致了您剛才提到的維修、人員等方面成本的上漲。

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

所以我認為這在美國不會產生實質的影響。或許你會看到一些趨勢，像是只買責任險而不是碰撞險和綜合險之類的。但我認為這些影響微乎其微。最終，一旦車輛在事故中嚴重受損——功能嚴重受損——無論是否有保險，保險公司介入處理當然有助於加快車輛報廢的進程。但如果報廢在經濟上比較划算，那麼最終車輛還是會被報廢。

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

有道理。再從保險業務的角度來說，我的意思是，由於各種原因，你們這些年來在保險公司中獲得了更多市場份額。或許，同樣從宏觀層面來說，能否談談促成這些市佔率變化的催化劑，以及你們認為這些業務成果的穩定性如何？

Got it. No, I appreciate that. And we described -- addressed that question, but be happy to do so again. I think our advantages with our clients are, first, to drive better auction outcomes. I've mentioned that the auction liquidity, our international buyer base, the technology platform, the machine learning-enabled tools that allow us to drive better returns at auction. Ultimately, our insurance clients are, of course, economically motivated. They have to achieve the best possible cost outcomes they can to ensure the best possible combined ratios to ensure that they are competitive in turn on rates and that they can protect and grow their businesses accordingly. So we believe that we generate superior returns at auction and that that has been persuasive to many of our insurance clients.

明白了。謝謝。我們之前已經解釋過這個問題，不過我很樂意再次解答。我認為我們為客戶帶來的優勢首先在於能夠帶來更好的拍賣結果。我之前提到過，拍賣的流動性、我們的國際買家群體、技術平台以及機器學習工具都使我們能夠在拍賣中獲得更高的回報。當然，我們的保險客戶最終都是出於經濟利益的考量。他們必須盡可能降低成本，以確保最佳的綜合成本率，從而在費率方面保持競爭力，並以此來保護和發展他們的業務。因此，我們相信我們能夠在拍賣中創造卓越的回報，而這一點也說服了許多保險客戶。

The second element of what we do is to manage cars quickly. Cycle times are by their nature very positively correlated with costs for insurance companies, in particular, on the front end. So our ability to retrieve vehicles quickly reduces their advanced charges. It would surprise you how many cars that are very clearly eventually balanced for a total loss auction like Copart are nonetheless subject to $2,000, $3,000 of advanced charges, teardowns and estimates and partial repairs or what have you, before the car is ultimately disposed of. So our ability to help insurance companies to reduce those front-end cycle times is very economically meaningful to them as well.

我們工作的第二個要素是快速管理車輛。車輛處理週期與保險公司的成本，尤其是前期成本，本質上呈現正相關。因此，我們快速回收車輛的能力可以降低他們的預付費用。您或許會驚訝地發現，許多明明最終可以像在Copart這樣的全損拍賣會上那樣進行全面拍賣的車輛，在最終處置之前，仍然需要支付2000美元、3000美元的預付費用，用於拆解、估價、部分維修等等。所以，我們幫助保險公司縮短前期處理週期的能力，對他們來說也具有非常重要的經濟意義。

We've talked before about catastrophic events. Memories, in some cases, are short, sometimes long, but we distinguish ourselves in a moment of crisis. The storms like Harvey, Ian and Ida are acute cost events and perhaps more importantly, acute policyholder service events for the insurance companies as well. So our ability to support them, to support the communities to be their ambassadors effectively on the ground in places like Florida and the Northeast in turn, equipped by the land we've acquired literally hundreds of acres of idle capacity that stands ready to serve them in a storm as well as the communications technology, our own fleet of vehicles, our Copart catastrophic response team, the folks that we deploy upon a moment's notice, that's distinctive as well. So those are -- I'll talk about a few other elements, but those are 3 meaningful ones.

我們之前討論過災難性事件。人們的記憶有時短暫，有時長久，但在危機時刻，我們卻能脫穎而出。像哈維、伊恩和艾達這樣的風暴，不僅會造成巨大的經濟損失，更重要的是，對保險公司而言，也會對投保人造成巨大的服務壓力。因此，我們能夠有效地支持他們，並支持當地社區成為他們的“一線大使”，例如在佛羅裡達州和東北部等地。我們擁有數百英畝閒置土地，隨時準備在風暴中為他們提供服務；此外，我們還配備了先進的通訊技術、自有車隊、Copart災難應變團隊，以及隨時待命的救援人員。這些都是我們的獨特優勢。我還會談到其他一些因素，但這三點尤其重要。

As to durability, in general, when we are able to earn the trust of our clients, we run through walls to preserve that over the long haul. So in general, those relationships have proven durable, but we never take it for granted. We wake up each morning committed to delivering better today than we did yesterday, this year than we did the year before. So it has been durable in the past, but we never assume it will be forever. We'll make sure that we earn the right to serve them for -- with each passing year.

至於持久性，一般來說，一旦我們贏得了客戶的信任，我們就會竭盡全力去維護這份信任。因此，這些合作關係通常都很穩固，但我們從不掉以輕心。我們每天醒來都致力於做得比昨天更好，比去年更好。所以，過去的合作關係一直很穩固，但我們從不認為它會永遠持續下去。我們會確保每年都努力贏得為他們服務的資格。

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

如果可以的話，我再問一個問題。我們來聊聊Purple Wave。能否請您詳細介紹一下目前合作進度如何？合作已經進行了幾個季度了。您認為最大的機會是什麼？您觀察到的市場主要趨勢有哪些？

Sure. Purple Wave, we're delighted to have Aaron and Suzy and the team on board. I think we noted that last quarter as well. They continue to grow GMV well, very well year-over-year. The growth opportunities for them include both geographic expansion. Certainly, they were at the time of our investment in Purple Wave, principally Central Time Zone oriented, but they continue to expand their footprint from there.

當然。我們很高興Aaron、Suzy和他們的團隊加入Purple Wave。我想我們在上個季度也提到這一點。他們的GMV持續成長，而且年成長非常顯著。他們的成長機會包括地理擴張。當然，當我們投資Purple Wave時，他們的業務主要集中在中部時區，但他們正在不斷拓展商業版圖。

Aaron and Suzy have done an extraordinary job building what they would call the community of buyers and sellers at Purple Wave, and they continue to invest in their capabilities there. So even within the markets in which they're currently participating, there remain growth opportunities to bring on new sellers, to bring on additional equipment for existing sellers. So I think it's across the board. They are still early enough in their journey, and we are early enough in our journey with them. There remain growth levers across all of those dimensions. And frankly, the key management challenge, the key leadership challenge for Aaron and Suzy is to figure out how to prioritize among them. But the growth trends have been very promising there.

Aaron 和 Suzy 在 Purple Wave 打造他們所謂的買家和賣家社群方面做得非常出色，他們也持續投資提升社區能力。因此，即使在他們目前參與的市場中，仍然存在著發展機遇，例如吸引新賣家，以及為現有賣家增加設備。我認為各方面都存在成長空間。他們和我們與他們合作的初期階段都還處於起步階段。在所有這些方面都存在著增長點。坦白說，Aaron 和 Suzy 面臨的關鍵管理挑戰和領導挑戰是如何在這些挑戰之間進行優先排序。但目前來看，成長趨勢非常令人鼓舞。

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

我們的下一個問題來自 Bret Jordan 與 Jefferies 的合作。

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

接著剛才關於Purple Wave的問題，你們的海外買家群體──這是否會影響你們銷售商用設備的能力？他們是否是Purple Wave所售產品的買家？

Yes. That's a good question. And I probably would draw a distinction still between the commercial -- because we do sell a lot of commercial equipment. Box trucks, construction equipment, agricultural equipment and the like from Copart proper which is, by and large, the result of our serving insurance companies that have, as part of their book of -- their portfolio, a number of assets of that type. So we sell many assets on their behalf. And certainly, for them, the international buyer is deeply relevant.

是的，問得好。我可能還會進一步區分商業用途和個人用途——因為我們確實銷售很多商業設備，例如廂型車、建築設備、農業設備等等，這些設備都來自Copart平台。這主要是因為我們服務保險公司，他們的資產組合中包含許多這類資產。所以我們代表他們出售很多資產。當然，對他們來說，國際買家至關重要。

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

Purple Wave歷來主要是一個面向國內市場的平台，因為他們的資產大多是在原地出售的。也就是說，他們會代表租賃公司、農業企業或工業企業進行原地出售。總的來說，從長遠來看，他們過去一直更注重國內市場。展望未來，他們也可能發展成為更國際化的企業，但這始終是他們以往的經營模式。

Okay. And then a question on international. I mean that 21% growth. Are you seeing -- it looks like sequential improvement. Is that traction in Europe, you called out flooding in Brazil and cat events in the Middle East. But what's the big driver of international? And are you getting traction in some of those bigger vehicle markets like the EU?

好的。接下來是關於國際市場的問題。我是指21%的成長。您認為——看起來像是持續成長——這是否意味著歐洲市場也出現了成長？您提到了巴西的洪水和中東的災害。那麼，國際市場成長的主要驅動力是什麼？您在歐盟等一些大型汽車市場是否取得了進展？

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

問得好。我認為我們在國際業務方面正在成長，正如你所知，布雷特，國際業務是一個包羅萬象的概念，遠比這複雜得多。但我們在所有主要國家都實現了成長，至少就我記憶所及，在加拿大、巴西、英國、中東以及德國和西班牙都是如此。

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

所以，出於不同的原因，例如在英國，我認為主要是由於全損頻率等因素；在巴西，情況也是如此。那裡有一些早期洪災活動。但正如您剛才提到的，國際市場的成長是由於全損頻率和市場滲透率等因素的綜合影響，並非突變式成長，而是這些國家普遍出現的顯著成長。

(Operator Instructions) Our next question comes from the line of Jash Patwa with JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的 Jash Patwa。

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

我想請您分享您目前的經驗，以及您之前提到的經銷商領域中更高價值車輛的發展。我知道貴公司正在推行一些舉措，例如拓展買家群體、完善車輛狀況報告、檢驗和仲裁流程，以涵蓋整個汽車市場。請問您能否介紹一下這些舉措目前的進展？另外，我還有一個後續問題。

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

太好了。是的。正如您所說，多年來，我們一直致力於更好地服務 Copart 經銷商網絡，以便讓他們的更多車輛能夠透過 Copart 拍賣進行交易。正如我們今天早些時候討論的那樣，全國範圍內全損率的上升也帶來了利好因素，保險公司因此向我們的網絡輸送了更多優質車輛，進而也吸引了更多潛在買家，從而擴大了經銷商車輛的供應範圍。

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

您問了一個很好的問題，即我們需要為這些賣家提供哪些相關服務。在某些情況下，這些服務範圍更廣——坦白說，它們確實有所不同。我們為保險公司提供的報廢車輛服務範圍也很廣泛，但在許多情況下，也有所不同。這更像是貸款結算、產權取得、報廢車輛產權證簽發等等，與經銷商車輛、租賃車輛、金融機構車輛等相比，我們提供的服務範圍要大不相同。

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

是的，我們會繼續評估我們提供的服務範圍，並持續測試各種服務項目以擴大服務範圍，以便更好地服務客戶。這的確是我們的首要任務。

Got it. That's very helpful color. And then -- maybe just as a follow-up, I just wanted to get your thoughts around how we should be thinking about the OpEx cadence over the next 12 to 18 months? Just trying to get a sense of whether the bulk of the investments are in the base today? Or if we should start to see -- if we should continue to see somewhat of a meaningful uptick in operating expenses in the coming few quarters?

明白了。這個顏色很有幫助。然後——也許可以作為後續問題——我想了解您對未來12到18個月營運支出節奏的看法？我只是想了解一下，目前大部分投資是否都集中在基礎建設？或者我們應該開始看到——或者我們是否應該在未來幾季看到營運支出出現一定程度的顯著增長？

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

是的。另外，我想澄清一下──您說的營運費用是指總額，還是指一般管理費用，還是兩者都指？

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

我主要指的是一般及行政費用。

Yes. I think that -- over the long haul, I think you probably followed us for a while. You'll know we have almost always achieved operating leverage relative to G&A growth. We happen to -- in the last few quarters have experienced more meaningful year-over-year growth for the reasons that Leah described a moment ago. The very long-term horizon, we expect to grow operating income, to grow gross profits in excess of the rate of growth of OpEx or G&A -- OpEx, as you described the G&A as we do.

是的。我認為——從長遠來看，我想您可能已經關注我們一段時間了。您應該知道，我們幾乎一直都能實現相對於一般及行政費用成長的營運槓桿效應。恰好，在過去的幾個季度裡，由於莉亞剛才提到的原因，我們實現了更顯著的同比增長。從長遠來看，我們預計營業收入和毛利的成長速度將超過營運支出或一般及行政費用（正如您剛才提到的，我們這裡所說的一般及行政費用）的成長速度。

But on any given quarter, any given month quarter, frankly, even year, that's not necessarily the priority for us. We want to make sure we achieve the right long-term outcomes. But if that requires short-term investments -- that requires long-term investments, we are happy to make it. So as you know, as a rule, we don't provide forward-looking guidance, but we continue to spend these resources very prudently. We take our responsibility as the stewards of capital very seriously. And we will invest those dollars when it makes sense to, to generate the right long-term returns for Copart and when they don't, we won't.

但坦白說，在任何一個季度、任何一個月，甚至每年，這不一定是我們的首要任務。我們希望確保實現正確的長期目標。但如果這需要短期投資——或者說，需要長期投資——我們也樂於進行。如您所知，通常情況下，我們不提供前瞻性指引，但我們會繼續非常謹慎地使用這些資源。我們非常重視身為資本管理者的責任。我們會根據實際情況進行投資，以期為Copart帶來合適的長期回報；反之，則不會。

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

謝謝。目前沒有其他問題了。現在請Jeff Liaw做總結發言。

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

謝謝大家。我們下個季度再見。祝大家晚安。

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

今天的電話會議到此結束。您可以斷開線路了。感謝您的參與。