Copart Inc (CPRT) 2024 Q4 法說會逐字稿

Please stand by. Good day, everyone, and welcome to the Copart Incorporated fourth quarter fiscal 2024 earnings call. Just as a reminder, today's conference is being recorded.

請稍候。大家好，歡迎參加 Copart Incorporated 2024 財年第四季財報電話會議。提醒一下，今天的會議正在錄音。

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.

在將電話轉給管理層之前，我將分享 Copart 的安全港聲明。該公司今天的評論包括聯邦證券法含義內的前瞻性陳述，包括管理層對公司市場趨勢、機會和不確定性的當前看法。

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.

這些前瞻性陳述涉及重大風險和不確定性。

Any forward looking statements are made as of today, and the company has no obligation to update or revise any forward looking statement.

任何前瞻性陳述均截至今日作出，本公司沒有義務更新或修改任何前瞻性陳述。

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

現在我將把電話轉給公司執行長 Jeff Liaw。

Thank you, Owen, and good evening. We're pleased to report our results for the fourth quarter of fiscal '24 and the conclusion of another successful fiscal year for our customers and for Copart.

謝謝你，歐文，晚上好。我們很高興地報告 24 財年第四季度的業績，並祝福我們的客戶和 Copart 度過另一個成功的財年。

I'll begin with a few comments on our business before handing the call to Leah to review our financial results in greater detail. And then she and I will take your questions.

我將首先對我們的業務發表一些評論，然後再將電話交給 Leah 更詳細地審查我們的財務結果。然後她和我會回答你們的問題。

Turning first to the insurance industry, we continue to grow our business with insurance sellers up 6% year over year, a reflection of our compelling and growing service offerings and industry leading auction liquidity. The recent decline in used vehicle values in particular has driven total loss frequency upwards back in line with pre-pandemic historical norms.

首先談到保險業，我們與保險銷售商的業務持續成長，年增 6％，這反映了我們引人注目且不斷增長的服務產品和行業領先的拍賣流動性。尤其是近期二手車價值的下跌，導致車輛總損失頻率上升至與疫情前的歷史標準相符的水平。

During our fourth fiscal quarter of 2024, we observed an 8.6% year over year decline in the Manheim Used Vehicle Value Index. As Leah will more fully describe later in her comments, our insurance companies selling prices significantly outpaced those of the broader used vehicle markets. All indications are that the long-term trends in the repair industry towards increasing vehicle complexity as measured, for example, by the average number of parts to repair a vehicle as well as brought -- rising labor rates continue to tip the scales in favor of totaling vehicles rather than repairing them.

在 2024 財年第四季度，我們發現曼海姆二手車價值指數年減了 8.6%。正如 Leah 在後面的評論中更詳細地描述的那樣，我們保險公司的銷售價格遠遠超過了更廣泛的二手車市場。所有跡像都表明，維修行業的長期趨勢是增加車輛的複雜性（例如，以修理一輛車所需的平均零件數量以及帶來的勞動力成本上升來衡量），這繼續傾向於報廢車輛而不是修理車輛。

In fact, at 21.4% for the second calendar quarter of 2024, total loss frequency is some 200 basis points higher than for the same three month period a year ago. This, of course, is itself a blended average. Some of our customers' total vehicles at rates significantly higher still.

事實上，2024 年第二季的總損失頻率為 21.4%，比去年同期高出約 200 個基點。當然，這本身就是一個混合平均值。我們一些客戶的總車輛費率仍然高得多。

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

我們持續觀察到，保險公司越來越傾向於報廢車輛而非修理車輛，我們堅信這一長期趨勢將會持續下去。今天。我們為保險客戶提供一系列先進的工具，幫助他們優化這些決策。

Another theme I'd like to highlight is the deepening of our relationships with our insurance company clients as reflected recently in the ongoing expansion of our title express service offering. Historically, auction houses like ours have obtained salvage certificates from the states in which we do business after the insurance companies have first obtained the original title either directly from policy holders, if they own their cars outright or from lenders, if the vehicles have liens outstanding.

我想強調的另一個主題是我們與保險公司客戶關係的不斷深化，這反映在我們最近不斷擴大的產權快遞服務上。從歷史上看，像我們這樣的拍賣行都是在保險公司首先從保單持有人那裡獲得原始所有權之後，從我們開展業務的州獲得報廢證書，如果保單持有人完全擁有汽車，則保險公司直接從保單持有人那裡獲得原始所有權，如果車輛有未償還的留置權，則從貸款人那裡獲得原始所有權。

Insurance companies have always reasoned that for a pivotal touch point with their own customers, typically after a claims event, it would be better to keep this function in house. Today however, our offer of an integrated one-stop solution for title procurement, which we call Title Express, has achieved substantial traction in the industry.

保險公司始終認為，對於與自己客戶的關鍵接觸點（通常是在索賠事件之後），最好將此功能保留在公司內部。然而今天，我們推出的一體化一站式產權採購解決方案（即「產權快車」）已在業界獲得了廣泛關注。

On behalf of our carrier clients, we obtain original titles from policy holders and from lenders. Each state has its specific nuances in what it requires is documentations, signatures, secured forms, powers of attorney, and so forth. And each lender too have its own requirements for the provision of pay off balances in per diems and the releasing of liens entitlements.

我們代表承運人客戶從保單持有人和貸款人處取得原始所有權。每個州對於文件、簽名、擔保表格、授權書等的要求都有其特定的細微差別。而每個貸方對於按日支付餘額和解除留置權也有自己的要求。

The lender universe in particular is an especially fragmented constituency. Between our online lender portal, AI-powered outbound calling systems and access to other intermediaries, we believe we offer a substantially more efficient title procurement process than our insurance customers can otherwise achieve. Today, we're pleased to note that we are approaching a run rate of 1 million titles obtained per year on behalf of our insurance clients, a testament to their trust in us to provide excellent service to them and importantly to their own customers as well.

貸款方群體是一個尤其分散的群體。透過我們的線上貸款人入口網站、人工智慧外撥呼叫系統以及其他中介機構的訪問，我們相信我們能夠提供比我們的保險客戶能夠實現的更有效率的產權採購流程。今天，我們很高興地註意到，我們每年為保險客戶獲得的合約數量已接近 100 萬份，這證明了他們信任我們，相信我們能為他們，尤其是他們自己的客戶提供優質的服務。

One additional note on the insurance industry regarding the storm season of 2024, as anticipated by many, the 2024 storm season is off to an active start relative to other seasons in recent years. Hurricane Beryl, the earliest CAT 5 Atlantic hurricane on record, caused widespread damage across Texas, Louisiana, and neighboring states. Though the storm's path fortuitously bypassed major population centers.

關於 2024 年風暴季節的保險業另外一點需要注意的是，正如許多人所預期的那樣，與近年來的其他季節相比，2024 年的風暴季節開始活躍。颶風貝裡爾是有史以來最早的 5 級大西洋颶風，對德州、路易斯安那州及其鄰近各州造成了廣泛破壞。儘管風暴路徑幸運地繞過了主要人口中心。

Other named storms of this season, including Hurricane Debby and Ernesto have required significant mobilization of resources on our part, which we are happy to undertake on behalf of our insurance clients.

本季的其他命名風暴，包括颶風黛比和埃內斯托，都需要我們調動大量資源，我們很樂意代表我們的保險客戶承擔這些任務。

I'll turn our attention to our noninsurance sellers as well. We've continued to grow our volume with them, leveraging our core capabilities in having physical storage capacity via our real estate portfolio, a strong network of logistics solutions, and a global liquid buyer base. We continue to grow our Blue Car business, which serves our bank and finance, fleet, and rental segment partners. In the fourth quarter, we observed year-over-year volume growth of 20.4% in comparison to a year ago.

我也會把注意力轉向我們的非保險銷售商。我們利用透過我們的房地產投資組合、強大的物流解決方案網路和全球流動買家群體所擁有的實體儲存容量的核心能力，繼續與他們一起擴大我們的業務量。我們繼續發展我們的藍色汽車業務，為我們的銀行和金融、車隊和租賃部門合作夥伴提供服務。在第四季度，我們發現銷量與去年同期相比成長了 20.4%。

Likewise, our dealer sales volume, the combination of our Copart Dealer Services business and NPA, our powersports auction platform increased volumes sold by 9.5% year over year as well. Excluding our low value and wholesale units, customary measure we provide. Our US noninsurance automotive volume increased 12.6% year over year.

同樣，我們的經銷商銷售量（Copart 經銷商服務業務和 NPA 的組合，我們的動力運動拍賣平台）也比去年同期成長了 9.5%。除低價值和批發單位外，我們提供的是慣例計量。我們的美國非保險汽車業務量年增12.6%。

We view our growth among these noninsurance sellers as attractive, not only for the economic benefit that these incremental units provide to our business, but also as a critical factor in sustaining and extending the liquidity advantage of our auctions. We have seen abundant examples of first time buyers attending Copart auctions in pursuit of a vehicle we sell on behalf of a rental car company or a financial institution, only to then begin purchasing vehicles from insurance companies thereafter.

我們認為我們在這些非保險賣家中的成長具有吸引力，不僅因為這些增量單位為我們的業務帶來了經濟利益，也是維持和擴大我們拍賣流動性優勢的關鍵因素。我們看到大量這樣的例子，首次購車者參加 Copart 拍賣會，購買我們代表租車公司或金融機構出售的車輛，但此後他們開始從保險公司購買車輛。

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

隨著全損頻率的上升以及保險公司選擇為更多可駕駛車輛提供全損服務，跨界車買家的影響力只會越來越大。我們致力於投入時間和資源來培育這一方面的業務。簡而言之，這就是您過去聽我們詳細討論過的飛輪效應。

Finally, as an additional note, our partner in the equipment arena, Purple Wave led by Aaron and Suzy McKee and their team based in Manhattan, Kansas, drove 17% year over year growth -- for the full year for the full fiscal year, outpacing industry growth in the equipment auction markets they serve. We're excited about what the future holds for our partnership with them.

最後，補充說明一下，我們在設備領域的合作夥伴 Purple Wave，由 Aaron 和 Suzy McKee 及其位於堪薩斯州曼哈頓的團隊領導，實現了全年 17% 的同比增長——整個財年，超過了他們所服務的設備拍賣市場的行業增長。我們對與他們的未來的合作充滿期待。

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

說完這些，我將把問題交給 Leah，請他發表對財務狀況的評論。

Thanks, Jeff. I'll begin with our fourth quarter and fiscal year '24 sales trends. During the quarter, our global unit sales and inventory increased 8% and about 7% respectively from the year ago period. For fiscal year '24, global unit sales increased nearly 10%. This growth was a function of an increase in total loss frequency and share gains.

謝謝，傑夫。我將從我們第四季和24財年的銷售趨勢開始。本季度，我們的全球單位銷售額和庫存分別比去年同期成長了 8% 和約 7%。24財年，全球單位銷售額成長了近10%。這種增長是由於總損失頻率和份額收益的增加而產生的。

Focusing on our US business, unit growth was over 6% which reflected fee unit growth of over 6% and purchase unit growth of over 13%. For fiscal year '24, unit growth was nearly 8% with fee units growing over 7% and purchase unit growth of almost 14%. Consignment or fee units continue to constitute the vast majority of our US unit volume.

專注於我們的美國業務，單位成長率超過 6%，其中費用單位成長率超過 6%，購買單位成長率超過 13%。24 財年，單位成長率接近 8%，其中費用單位成長率超過 7%，購買單位成長率接近 14%。托運或收費單位仍然構成我們美國單位數量的絕大部分。

Our US insurance unit volume increased 6% year over year and about 7% for fiscal year '24. As Jeff mentioned, our noninsurance unit volume growth has continued to outpace that of our insurance business. This volume growth substantially came from fleet, rental, and finance units, which increased over 20% in Q4 and nearly 28% for the year; and dealer units, which increased nearly 10% for the quarter and over 15% for the fiscal year 2014. Inventory levels in the US increased over 6% and nearly 9% when excluding low value and CAT units.

我們的美國保險部門業務量年增 6%，24 財年成長約 7%。正如傑夫所提到的，我們的非保險單位數量成長一直超過保險業務的成長。這一成長主要來自車隊、租賃和金融部門，這些部門第四季的增幅超過 20%，全年增幅接近 28%；及經銷商單位本季成長近 10%，2014 財年成長超過 15%。美國的庫存水準增加了6%以上，如果排除低價值和CAT單位，則增加了近9%。

Turning to our international business, we saw unit growth of almost 17% in the quarter and 21% for fiscal year '24. With [C] units increasing over 17% in Q4 and 22% for the year. Purchase units increased by nearly 13% for the quarter and almost 16% for the fiscal year. Our international business ended the quarter with inventory levels over 9% ahead of the prior year.

談到我們的國際業務，本季我們的單位成長率接近 17%，24 財年的單位成長率為 21%。[C] 單位在第四季度增長了 17% 以上，全年增長了 22%。本季購買量成長了近 13%，全年購買量成長了近 16%。本季結束時，我們國際業務的庫存水準比去年同期高出 9% 以上。

Global ASPs declined by approximately 5% for the quarter relative to a year ago period and about 3% for the full year. Our US ASPs continue to show resilience and are significantly outperforming the used vehicle market more broadly. While the Manheim Used Vehicle price index declined by nearly 9% from the year ago quarter and almost 2% sequentially, our US insurance ASPs declined less than 4% from a year ago, and for the quarter, an increased over 2% sequentially.

本季全球平均售價與去年同期相比下降了約 5%，全年下降了約 3%。我們的美國平均銷售價格繼續表現出韌性，並且表現明顯優於更廣泛的二手車市場。儘管曼海姆二手車價格指數較去年同期下降近 9%，較上一季下降近 2%，但我們的美國保險平均售價較去年同期下降不到 4%，本季較上一季增加超過 2%。

Turning to our financial results, global revenue in the quarter increased to nearly $1.1 billion, representing growth of over $71 million or about 7%. For the year, global revenue increased to more than $4.2 billion, representing growth of over $367 million or nearly 10%. Global Service revenue increased nearly $59 million or over 7% for the fourth quarter and almost $363 million or over 11% for the fiscal year, primarily due to increased volumes. Our US service revenue grew by over 6% for the quarter and 10% for the year. And international service revenue grew by nearly 14% for the fourth quarter and 22% for the year.

談到我們的財務業績，本季全球營收增加至近 11 億美元，成長超過 7,100 萬美元，增幅約 7%。今年，全球營收增至 42 億美元以上，成長超過 3.67 億美元，增幅接近 10%。第四季全球服務收入增加近 5,900 萬美元，增幅超過 7%，本財年增加近 3.63 億美元，增幅超過 11%，主要得益於業務量的增加。我們的美國服務收入本季成長了 6% 以上，全年成長了 10%。第四季國際服務營收成長近14%，全年成長22%。

Global purchased vehicle sales for the fourth quarter increased over $12 million or 8% and over $4 million or about 1% for the fiscal year. Global purchase vehicle gross profit decreased by about 1% in the fourth quarter and for the fiscal year.

第四季全球購買汽車銷售額成長超過 1,200 萬美元，增幅 8%，全年成長超過 400 萬美元，增幅約 1%。全球購車毛利潤在第四季及本財年均下降約1%。

In the US, purchased vehicle revenue was up over $10 million or 12%, while purchased vehicle gross profit increased less than $1 million or about 11% in the quarter. And for the fiscal year, purchased vehicle revenue decreased about $9 million or almost 3%, and purchased vehicle gross profit increased about $4 million or over 18%.

在美國，本季購買汽車收入成長超過 1,000 萬美元，增幅為 12%，而購買汽車毛利成長不到 100 萬美元，增幅約 11%。本財年，購買汽車收入減少約 900 萬美元，降幅近 3%，而購買汽車毛利增加約 400 萬美元，增幅超過 18%。

Internationally, purchased vehicle revenue increased by over $2 million or about 3%, and gross profit decreased by almost $1 million or about 11% in the fourth quarter. And for the full year, purchased vehicle revenue increased almost $14 million or over 4%, and purchased vehicle gross profit decreased about $4 million or over 12%.

在國際上，第四季購買汽車收入增加了 200 多萬美元，增幅約 3%，毛利減少了近 100 萬美元，降幅約 11%。全年來看，購買車輛收入增加近 1,400 萬美元，增幅超過 4%，而購買車輛毛利減少約 400 萬美元，減幅超過 12%。

Global yard operations cost, excluding stock-based compensation and depreciation expense increased about $59 million or about 17% from the prior year period. This growth reflects the increase in unit volume as well as approximately $16 million of non-recurring expenses primarily related to operating taxes.

全球船廠營運成本（不含股票薪資和折舊費用）較去年同期增加約 5,900 萬美元，約 17%。這一增長反映了單位產量的增加以及主要與營業稅相關的約 1600 萬美元的非經常性支出。

In addition, as Jeff noted, given the active and early start to the storm season in 2024, our CAT storm response teams incurred seasonally higher costs preparing and positioning resources for several storms which did not produce significant unit volumes. Given the unpredictable nature of catastrophic events during storm season, we absorbed these costs as part of our normal course of serving our customers and their policyholders.

此外，正如 Jeff 所指出的，鑑於 2024 年風暴季節來得早且活躍，我們的 CAT 風暴響應團隊在為幾場未產生大量單位數量的風暴準備和部署資源時產生了季節性更高的成本。鑑於風暴季節災難事件的不可預測性，我們將這些成本作為向客戶及其保單持有人提供服務的正常程序的一部分來承擔。

During the quarter, global growth profit was over $453 million, a decrease of $4 million or about 1%, and our gross margin percentage decreased by approximately 340 basis points to 42.4% in the fourth quarter. For the fiscal year, global gross profit was over $1.9 billion, an increase of over $170 million or about 10%, and gross margin percentage was 45%, an increase of about 10 basis points.

本季度，全球成長利潤超過 4.53 億美元，減少 400 萬美元，降幅約 1%，我們的毛利率百分比在第四季度下降約 340 個基點至 42.4%。本財年，全球毛利超過19億美元，增加1.7億多美元，成長約10%，毛利率為45%，增加約10個基點。

In the US, our gross profit margin decreased to 46.5% for the quarter and increased to 49.4% for the year. The key drivers of margin compression during the quarter included the impact of nearly $12 million of out-of-period expenses as well as increased salary and benefits expense associated with our yard operations personnel. Our international gross profit margin increased to 24.2% in the quarter and 25.5% for the year.

在美國，我們的毛利率本季下降至46.5％，全年上升至49.4％。本季利潤率壓縮的主要驅動因素包括近 1,200 萬美元的期外費用以及與我們的堆場營運人員相關的工資和福利費用的增加的影響。我們的國際毛利率本季上升至 24.2%，全年上升至 25.5%。

Turning to general and administrative expenses. Excluding stock-based compensation and depreciation expense, spend in the quarter was about $81 million, reflecting an increase of $26 million over the prior year and about $5 million on a sequential basis. For the year, spend was about $288 million, an increase of about $88 million.

談到一般及行政開支。不包括股票薪酬和折舊費用，本季支出約 8,100 萬美元，比上年增加 2,600 萬美元，比上一季增加約 500 萬美元。全年支出約 2.88 億美元，增加約 8,800 萬美元。

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

正如我們上個季度所強調的那樣，我們同比的 G&A 成長繼續反映了我們對有機產品開發、我們的平台功能、Purple Wave 的財務合併到我們的業績中的投資，以及與系統實施相關的第三方專案相關成本的增加。

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

在我們的組織中，當我們投資擴大我們的整個汽車和重型設備銷售功能時，我們的團隊同時專注於部署新興技術，以增強我們的業務流程和系統，以追求長期的可擴展性和營運槓桿。

GAAP operating income for the quarter decreased by 8% to over $359 million and for the fiscal year GAAP operating income decreased -- sorry, GAAP operating income increased by over $85 million or nearly 6%. Finally, fourth quarter GAAP net income decreased by over 7% to over $322 million or $0.33 per diluted common share.

本季的 GAAP 營業收入下降 8% 至 3.59 億美元以上，而整個財年 GAAP 營業收入則下降——抱歉，GAAP 營業收入增加了 8,500 多萬美元，增幅接近 6%。最後，第四季 GAAP 淨收入下降超過 7% 至超過 3.22 億美元或每股稀釋普通股 0.33 美元。

For the fiscal year, GAAP net income increased by over 10% to over $1.4 billion. During the quarter, we benefited from over $14 million of incremental interest income as we have actively invested our cash into treasury securities. And for the quarter, our tax rate was 21.1%, and for the fiscal year, it was 20.5%.

本財年，GAAP 淨收入成長超過 10%，達到超過 14 億美元。本季度，由於我們積極將現金投資於國庫證券，我們獲得了超過 1,400 萬美元的增量利息收入。本季度，我們的稅率為 21.1%，財政年度的稅率為 20.5%。

Turning to our capital structure, as of the end of July, we had over $4.6 billion of liquidity, which is a compromise of nearly $3.4 billion in cash and investments in held to maturity securities and our capacity under a revolving credit facility of over $1.2 billion. We believe that our conservative capitalization is a distinct competitive advantage in our industry, enabling us to operate our business with a horizon that prioritizes ours and our clients' long-term success.

談到我們的資本結構，截至 7 月底，我們擁有超過 46 億美元的流動資金，其中包括近 34 億美元的現金和持有至到期證券的投資以及超過 12 億美元的循環信貸額度。我們相信，我們保守的資本化是我們行業的獨特競爭優勢，使我們能夠以優先考慮我們和客戶的長期成功的眼光來經營我們的業務。

For the year, we generated free cash flow of $962 million reflecting our operating cash flow generation of $1,473 million and capital investments of about $511 million. Our investment focus in 2024 remains steadfast, with nearly all of our capital being deployed into assets which drive best-in-class outcomes for our customers, including more than 1,100 acres of land acquired and 370 transportation assets, as well as enhanced physical infrastructure.

今年，我們產生的自由現金流為 9.62 億美元，其中，營運現金流為 14.73 億美元，資本投資約 5.11 億美元。我們對 2024 年的投資重點依然堅定，幾乎所有的資本都將部署到為客戶帶來一流成果的資產中，包括收購的 1,100 多英畝土地和 370 項運輸資產，以及增強的實體基礎設施。

With a new year upon us, I wanted to reiterate that our multi-decade investment horizon and longstanding approach to capital allocation is unwavering. We continue to prioritize investments that grows and diversify our existing marketplace businesses, including differentiated products and service capabilities. This includes our approach to yard infrastructure investments, which are critical to ensuring that we are positioned to serve our customers' needs for the long-term.

新的一年即將到來，我想重申，我們數十年的投資期限和長期的資本配置方針是堅定不移的。我們將繼續優先投資於能夠發展和多樣化我們現有的市場業務，包括差異化的產品和服務能力。這包括我們對船廠基礎設施投資的方法，這對於確保我們能夠長期滿足客戶需求至關重要。

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

我們繼續專注於並嚴格遵守透過併購和策略合作夥伴關係部署資本的原則，而估值和/或策略契合度是機會主義交易通常無法清除的主要障礙。這種一致的方法使我們能夠提供出色的業務成果，同時為股東創造長期價值。

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

因此，傑夫和我很樂意回答一些問題。

(Operator Instructions)

（操作員指令）

Bob Labick, CJS Securities.

拉比克（Bob Labick），CJS 證券公司。

Good afternoon. Thanks for taking our questions.

午安.感謝您回答我們的問題。

So I wanted to start with the business financial model with all the moving parts and the various growth rates, all growing of your different subcategories and stuff. So as you build out whole car, particularly dealer in Blue Car, I want to maybe discuss the impact on the financial model.

所以我想從商業財務模型開始，其中包含所有的活動部分和各種成長率，以及不同子類別等等的成長。因此，當您建立整輛車時，特別是藍色汽車經銷商，我可能想討論一下對財務模型的影響。

From our seat, we can see that there's less customer or seller concentration and maybe you get higher fees at some point on those, but there's also a lot more upfront investment, there's hiring in sales, and infrastructure to get that ready. So is that the correct way to think about it? You're investing upfront now and then maybe over time the margins on those businesses will mature and grow? Or how should we think about that? And where are we in the process of investment for those growth initiatives?

從我們的角度來看，客戶或賣家的集中度較低，也許在某些時候你會收取更高的費用，但還需要更多的前期投資、銷售人員的招聘以及為此做好準備的基礎設施。那麼這是正確的思考方式嗎？您現在正在進行前期投資，也許隨著時間的推移，這些業務的利潤率會成熟並成長？或者說我們該如何思考這個問題？我們在這些成長計畫的投資過程中處於什麼階段？

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

是的，鮑勃，我認為這是一個公平的問題，我想說從長遠來看，這些車輛的單位經濟效益應該與 Copart 銷售的傳統汽車持平或更好。平均售價也趨於上漲。所以我認為這是長期的答案。

Near term, of course, there is some upfront investments to support the growth there, some more infrastructure like spending to build the platform in the first place. So I think that question is fair, that observation is fair.

當然，短期內需要一些前期投資來支持那裡的成長，首先需要一些基礎設施投資來建立平台。所以我認為這個問題是公平的，這個觀察也是公平的。

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

好的，太棒了。然後，就紫色浪潮而言，顯然他們和您今年都實現了良好的成長。就全國範圍的建設而言，您處於什麼位置？我們應該如何為他們考慮這個時間表？

I think they would describe themselves as still being in the transitional stage. They started as a more regional company focused in particular on the central time zone and are expanding their footprint from there.

我認為他們會形容自己仍處於過渡階段。他們最初是一家更區域性的公司，尤其專注於中央時區，並從那裡擴大其業務範圍。

As you know, it is primarily a virtual business or historically was exclusively a virtual business. So they built an incredible pure auction platform in their arena. And have built the Purple Wave brand to become a meaningful presence in that space. So they are expanding geographically as we speak.

如您所知，它主要是虛擬業務，或從歷史上看完全是虛擬業務。所以他們在自己的領域建立了一個令人難以置信的純拍賣平台。並打造了 Purple Wave 品牌，使其成為該領域具有重要意義的存在。正如我們所說，他們正在地理上擴張。

Okay, great. And last one for me on Purple Wave too. If we are indeed moving into a lower interest rate environment like I think everyone believes, just given that Purple Wave obviously new to you and to us, how does lower rates impact the Purple Wave business model as we look out the next 1, 3, 5 years?

好的，太好了。這也是我關於 Purple Wave 的最後一篇。如果我們確實像每個人都相信的那樣進入一個低利率環境，考慮到 Purple Wave 對您和我們來說顯然是一個新事物，那麼在未來 1、3、5 年內，較低的利率將如何影響 Purple Wave 商業模式？

Probably the candid answer is we don't know. This is just conjecture. But I think lower interest rates generally propagate more business activity period. The more purchase of new equipment, perhaps the trading in of old equipment. So I think lower interest rates will just lead to more -- just higher velocity activity period in the various spaces they serve.

也許坦率的回答是「我們不知道」。這只是猜測。但我認為較低的利率通常會延長商業活動期。購買新設備越多，或許舊設備的交易就越多。因此，我認為較低的利率只會導致其所服務的各個領域的活動速度加快。

But as you know well, Bob, even to characterize their customers, their sellers, a single monolithic notion is not quite accurate. There's construction and agriculture and commercial construction versus residential. There's many, many nuances to all of the above. But in general, I think of low interest rates as being a catalyst for activity. And activity, generally speaking, being a good thing for intermediaries like Purple Wave.

但是鮑勃，你也很清楚，即使要描述他們的客戶、他們的賣家，單一的整體概念也不太準確。有建築業、農業及商業建築與住宅建築。以上內容都有許多細微差別。但總的來說，我認為低利率是活動的催化劑。總體而言，活動對於 Purple Wave 這樣的中介機構來說是一件好事。

Super. All right. Thanks so much above.

極好的。好的。非常感謝以上內容。

John Healy, Northcoast Research.

約翰希利 (John Healy)，Northcoast Research。

Thank you. Jeff and Leah, I just wanted to ask a little bit about the top of the business on the accident side. Kind of a variety of data points here today, just how miles driven is trending, how repairable claims are trending. And you guys talked, I believe, that 6% volume growth on the insurance business. And I believe you said that total loss rates are up about 200 basis points.

謝謝。傑夫和利亞，我只想問一下有關事故方面的業務情況。今天這裡有各種各樣的數據點，行駛里程的趨勢如何，可修復索賠的趨勢如何。我相信，你們談到了保險業務量成長 6% 的情況。我相信您說過總損失率上升了約 200 個基點。

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

這只是粗略的計算，我的意思是，我認為這意味著事故頻率有所下降。我很好奇您是否同意這一點？這是否是一種新趨勢？您是否認為，我們剛開始看到事故發生及其對模型的影響呈現不同的節奏？我們只是想了解您對頻率的具體想法。我知道人們有時會使用可修復索賠，但我認為頻率是許多投資者更希望關注的領域。謝謝。

Got it and a good question and a very nuanced one. What I would offer first is I think if you're simply doing the arithmetic of saying it's 200 basis points of divided by starting point of 20%, a 10% growth. I think for better or for worse those measures just aren't precise enough. You'll see the third parties that report them will even sometimes adjust those numbers in arrears. So they move around a fair bit and they don't match perfectly with the total loss volumes either, if you just went back and did this exercise for 10 years.

我明白了，這是一個好問題，而且非常微妙。我首先要說的是，如果你簡單地做算術，也就是 200 個基點除以 20% 的起點，那麼成長率就是 10%。我認為，無論好壞，這些措施都不夠精確。您會看到，報告這些情況的第三方有時甚至會拖欠調整這些數字。因此，如果您回頭做 10 年的練習，它們會進行相當大的變動，並且與總損失量也不完全匹配。

As to your observation about accident frequency perhaps declining, I think I would characterize that as having broadly been true for the past 50 years period. Accident frequency has always declined, certainly if you adjust for miles driven, a reflection of an ever safer car park, so you can imagine the big waves of innovation in the automotive space.

至於您關於事故發生頻率可能下降的觀察，我認為我會將其描述為過去 50 年來大體上的情況。事故發生率一直在下降，當然如果你根據行駛里程進行調整，這反映出停車場越來越安全，所以你可以想像汽車領域的創新浪潮。

In the mid-1970s, you saw anti-lock brakes arrive for the first time, which reduced crashes, in particular in winter time and with high precipitation conditions. Then the arrival of traction control and so forth in the years thereafter. Nowadays, autonomous braking, lane departure warning sensors are also reducing accident frequency. That's a longstanding trend. It has always been dwarfed on the other side by total loss frequency. So if accidents are down a little bit, total loss frequency is almost always outpaced that over any reasonable historical period.

1970 年代中期，防鎖死煞車系統首次出現，它減少了碰撞事故，尤其是在冬季和降水量大的情況下。隨後幾年，牽引力控制等技術相繼問世。如今，自動煞車、車道偏離警示感知器也正在降低事故發生率。這是一個長期的趨勢。與總損失頻率相比，它總是顯得微不足道。因此，如果事故略有減少，總損失頻率幾乎總是會超過任何合理的歷史時期。

The one anomaly to that, that I can remember, because I remember studying this a couple of years ago when we were talking about this topic then, was I want to say from memory 2013, '14, there was a 2, 3, 4-year period in which accident frequency per miles driven actually increased. And that, I think, was the adoption of smartphones and social media from while folks were driving, God forbid, but I think that was a catalyst then. That has now been absorbed into the numbers. So I think we now see gradually declining accident frequency, but not a precipitous change, not a disruptive change of any kind, we would note.

我記得有一個異常現象，因為我記得幾年前我們討論這個主題時研究過這個問題，我記得在 2013、2014 年有 2、3、4 年的時間裡，每行駛英里的事故發生率實際上有所增加。我認為，那是因為人們在開車時開始使用智慧型手機和社群媒體，但願不會如此，但我認為那是一個催化劑。這一數字現已被吸收。因此，我認為我們現在看到事故發生頻率正在逐漸下降，但並不是急劇的變化，也不是任何形式的破壞性變化，我們注意到。

Got it. Makes sense. And then I just wanted to hear more about the Express Titling product. You guys went into great detail on that. So, I would just try to make sure I understand kind of what the takeaway is there. My observation was that is something that insurance companies can alleviate internal functions, costs, headcount, you take that responsibility on. Are we interpreting it the right way? Is that this is Copart taking service levels to a higher degree, and it's something that allows you to drive the relationship further beyond just what the seller fee is and the turn time. Is that the right way to think about it?

知道了。有道理。然後我只是想聽到更多有關 Express Titling 產品的資訊。你們對此進行了非常詳細的說明。因此，我只是想確保我理解那裡的要點。我的觀察是，保險公司可以減輕內部職能、成本、員工人數，你承擔這些責任。我們的解讀正確嗎？這是 Copart 將服務水準提升到更高水準的做法，它可以讓您與客戶的關係更進一步，而不僅僅是賣家費用和周轉時間。這是正確的思考方式嗎？

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

我認為你總結得很好。可以說，我們正在向前整合，融入歷史上由保險業主導的功能。他們之所以保留它，是因為與自己的保單持有人、自己的客戶的接觸點被視為一個關鍵問題，但他們足夠信任我們，可以為他們處理這個問題。他們知道，憑藉我們銷售的數百萬輛汽車和處理的數百萬個所有權的規模，我們（正式）擁有比他們任何一家單獨擁有的都更高效的業務流程和軟體以及針對這一非常狹窄的業務案例的定制軟體。

Got it. Thank you.

知道了。謝謝。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

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

嘿，下午好。感謝您回答我的問題。約翰那裡有一些非常好的東西。我想跟進 Title Express。傑夫，你的意思是——這實際上會節省完成整個銷售過程所需的時間，並且會為保險公司節省時間方面的資金嗎？

Correct. Yes, time as well as fully burdened costs for their performing the function themselves. Imagine that Copart has a specialized department, and we do, led by a very capable, very longstanding leader here at Copart. And we do this -- that group of folks does this full-time for a living and knows it cold. It's just easier to do that at the scale that we just talked about than it is for any individual insurance carrier, certainly the smaller ones, but also increasingly larger carriers as well. Than for them to staff the [people departments] will leave this function on their own.

正確的。是的，他們需要花費時間以及承擔自己履行職責的全部費用。想像一下，Copart 有一個專門的部門，事實也確實如此，由 Copart 一位非常有能力、任職時間很長的領導者領導。我們這樣做──那群人全職以此為生，並且對此瞭如指掌。在我們剛才談到的規模上做到這一點比對於任何單一保險公司來說都更容易，當然對於較小的保險公司來說也是如此，但對於越來越大的保險公司來說也是如此。而由他們來配備人員的[人力部門]則會自行離開這項職能。

If you ask any -- if you ask the top 20 customers of Copart, what do you do best as an insurance company? You'll get answers ranging from underwriting to claims management to consumer advertising and marketing or what have you. Those are -- or more frankly, investing the flow too. Those are the core functions of an insurance company. I think you'd be pretty far down the list with any of them where they said title procurement is our bread and butter. That's where we distinguish ourselves. I think you hear that very rarely.

如果您詢問 Copart 的前 20 名客戶，作為保險公司，您最擅長做什麼？您將獲得有關承保、索賠管理、消費者廣告和行銷等方面的答案。或者更坦白說，這些也是投資流量。這些都是保險公司的核心職能。我想，在他們當中，你的位置肯定排得很靠後，因為他們都說產權採購是我們賴以生存的根本。這就是我們與眾不同的地方。我想你很少聽到這種話。

So I'm curious. You've had that long enough to generate [1 million] title transfers this year. To what extent is this a driver to your market share gains overall? Does this make the front page of your pitch book?

所以我很好奇。您已經有足夠長的時間在今年實現 [100 萬] 筆所有權轉移。這在多大程度上推動了你們整體市場佔有率的成長？這會成為你的宣傳手冊的頭版嗎？

It is certainly in the pitch book. It is perceived as --. And -- so it had been -- again, there are good reasons for insurance companies to want to keep this function in-house. I think the catalyst for change in recent years started with COVID-19 in part when insurance companies realized that hiring and retaining folks and managing them remotely and deploying laptops and remote call centers, et cetera, was increasingly complex, increasingly problematic, and not worth the squeeze. So they trusted us, they trialed the project with us, and I think we've delivered over and over again. I think it's a reflection of their trust in us in that regard.

它肯定在宣傳冊裡。它被認為是--.而且 — — 事實也是如此 — — 保險公司有充分的理由希望將這項功能保留在公司內部。我認為近年來變革的催化劑始於新冠肺炎，部分原因是保險公司意識到僱用和留住員工並進行遠端管理、部署筆記型電腦和遠端呼叫中心等變得越來越複雜，越來越成問題，不值得付出努力。所以他們信任我們，與我們一起試驗了這個項目，而且我認為我們已經一次又一次地實現了目標。我認為這反映了他們對我們的信任。

Great. Thanks. And, Leah, if I could ask you, you mentioned the $12 million out of period expense. Can you shed more light on that expense? In which period did it normally occur?

偉大的。謝謝。而且，利亞，如果我可以問你的話，你提到了 1200 萬美元的期間費用。您能否進一步說明一下這筆費用？一般發生在哪個時期？

Sure. In total for yard ops, we had $16 million in the fourth quarter of nonrecurring expense. $12 million of that was related to our US segment. A little over $4 million was related to our international segment. And so I would consider it to be really non-recurring. A portion of it was related in the US to property taxes that are related to prior periods and also grossing up our accruals to levels we expect for here to go forward. And then some of the other related items are related to out-of-period invoicing for some of our vendors that we received in the fourth quarter.

當然。就場址營運而言，我們第四季的非經常性支出總計為 1,600 萬美元。其中 1200 萬美元與我們的美國分部有關。我們的國際部門相關資金略多於 400 萬美元。所以我認為它確實是非經常性的。其中一部分與美國的前期財產稅有關，也將我們的應計費用增加到了我們預期的未來水準。然後，其他一些相關項目與我們在第四季度收到的一些供應商的期外發票有關。

Okay, thanks. And just one on Purple Wave. I'm curious, how many territory managers did you add, if that's the right metric? I'm trying to get a feel for whether that 17% is driven by, external matters or really driven by your expansion plan.

好的，謝謝。而 Purple Wave 上只有一個。我很好奇，如果這是正確的衡量標準，您增加了多少位區域經理？我想了解這 17% 是由外部因素推動的，還是真正由你的擴張計劃推動的。

I'd say both our drivers is both expansion of territory but also like territory growth, in territory growth, so to speak. And remember, this is a virtual business. Of course, they do have the team and the sales force, so to speak, to reach out to potential sellers of the business and customer support agents and the like. But it's virtual, so it's not quite like opening a new Starbucks on the street corner. It's more adding the institutional sales force to go to pursue the clients in the first place.

我想說，我們的驅動力既是領土擴張，也是領土成長，可以這麼說。請記住，這是一項虛擬業務。當然，他們確實有團隊和銷售人員，可以接觸潛在的業務賣家和客戶支援代理商等。但它是虛擬的，所以不太像在街角開一家新的星巴克。這首先意味著增加機構銷售人員去爭取客戶。

Got it. Thank you.

知道了。謝謝。

Thanks, Craig.

謝謝，克雷格。

Chris Bottiglieri, BNP Paribas.

法國巴黎銀行的克里斯·波蒂格里耶 (Chris Bottiglieri)。

Hey, guys. Chris Bottiglieri. I'll fix that one. Question for you. I'm going to cut the volume question a little bit differently. There's been press reports that would suggest that auto and home insurance rates seen a skyrocket. Consumers are canceling auto insurance, reducing coverage. Just curious if you're hearing this from insurers, how does a lower insurance rate impact your business?

嘿，大家好。克里斯·波蒂格里耶。我會修復它。我問你一個問題。我將以稍微不同的方式闡述音量問題。有新聞報導汽車和家庭保險費率飆升。消費者正在取消汽車保險，減少保險範圍。只是好奇，如果您從保險公司那裡聽說這個，較低的保險費率會對您的業務產生什麼影響？

In past cycles, obviously there's different drivers now at climate change and theft and all of that, hopefully normalizes but [as I went] past cycles, we've seen people cut auto insurance and drop the penetration and could you just like tell us what's happening? Historically, have you seen this before? This is even [true for] that matter?

在過去的周期中，顯然現在氣候變遷和盜竊等因素有不同的驅動因素，希望這些因素能夠正常化，但正如我所經歷的]過去的周期一樣，我們看到人們削減汽車保險並降低保險滲透率，您能告訴我們發生了什麼嗎？從歷史上看，你以前見過這種情況嗎？這對於那件事來說甚至是真的嗎？

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

知道了。公平地問一下。如果歷史可以作為借鑒的話，我認為它有一定的負面影響，如果人們要么根本沒有投保，要么為了省錢只投保責任險，而他們放棄了碰撞險和綜合險，那麼他們可能會遇到之前由他們的保險公司處理的索賠，因此會通過 Copart 將汽車報廢，這可能會導致他們試圖修理它、試圖修補它，或者試圖駕駛一輛本來報廢的汽車。

I think if the financial crisis in '09, this is from memory or from research, frankly, but the downturn in '09 and since has shown very modest effect of this, almost an immeasurable one, but I think directionally speaking, that's what would happen.

我認為，如果2009年的金融危機，坦白說，這是從記憶或研究中獲得的，但2009年及以後的經濟衰退顯示出非常溫和的影響，幾乎是無法估量的，但我認為從方向上講，這就是將要發生的事情。

Yes. Okay. And then I think we gave a ton of metrics here, so I might have botched these, but it sounded like US is up 6%, US insurance is up 6%, but then dealer fleet, rental, finance of 20% and dealer plus 10%. So it seems like there's an offset somewhere. Is that just low value charity cars? And then is there a competitor that's being irrational there that's causing a drag in that segment or is it something more systemic?

是的。好的。然後我認為我們在這裡給出了大量的指標，所以我可能搞砸了這些，但聽起來美國上漲了 6%，美國保險上漲了 6%，但經銷商車隊、租賃、融資上漲了 20%，經銷商上漲了 10%。因此看起來好像某處有偏移。那隻是低價值的慈善車嗎？那麼，是否存在競爭對手的不理會性行為，導致該領域出現拖累，還是有更系統性的問題？

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

不，只是低價值桶不斷縮小。

And what's causing that to shrink? Is that competition or is it just something like a market that's changing?

那麼是什麼原因造成它的縮小呢？這是競爭嗎？

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

這其實只是我們分配努力的重點。

Yeah, I think it's a combination of the [four stages of product]. It's competitive tension as well as institutional prioritization, right? That we will always have scarce resources and that is -- those are the units that we are most willing to work on.

是的，我認為這是【產品的四個階段】這既是競爭緊張，也是機構優先，對嗎？我們永遠擁有稀缺的資源，那就是──那些是我們最願意努力的單位。

Makes sense. Okay. Thank you.

有道理。好的。謝謝。

Thanks, Chris.

謝謝，克里斯。

Bret Jordan, Jefferies.

布雷特·喬丹，傑富瑞。

Hey, good afternoon, guys. On the 6% insurance units, I think you guys were still taking share in the fourth quarter from a peer in the space. Could you sort of carve out what was organic growth versus share gain year-over-year in that quarter?

嘿，大家下午好。就 6% 的保險部門而言，我認為你們在第四季度仍然從該領域的同行手中奪取市場份額。您能否具體說明一下該季度的有機成長和年比份額成長情況？

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

布雷特，我們還沒有完全理解這一點，但你是對的。這既是有機成長，也是份額獲取。

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

好的。然後我想問的是類似的問題，以同比上限計算，顯然你花了錢為暴風雨做準備，但並沒有導致大量汽車受損。與去年同期相比，第四季因災難性事件而受損的汽車數量是否有同比變化？

Very modest. So in the grand scheme of Copart's, relatively speaking, a rounding error. That said, the mobilizations weren't trivial. So this year with multiple storms -- multiple named storms, we do mobilize trucks and people. And such in anticipation of those storms, we don't have the luxury of waiting to see if it's real. We mobilize in advance because that's what we owe our customers. So we did have multiple mobilizations this year with trivial volume to show for it.

很謙虛。因此，從 Copart 的整體方案來看，相對而言，這是一個捨入誤差。儘管如此，動員行動並非小事。因此，今年面對多場風暴——多場命名風暴，我們確實調動了卡車和人員。在預見這些風暴之後，我們並沒有時間等待看看它是否真實發生。我們提前動員，因為這是我們對客戶的責任。因此，我們今年確實進行了多次動員，但動員量並不大。

Okay. And then I guess, final question, on the yard operation expense growth, is part of that the investment you've been making in recent years in expanding the real estate portfolio? Do you have to staff yards that aren't at full capacity yet? So is that are deleveraging around some of this capital investment or is it really just sort of a spike in labor and some of these non-recurring costs? Is there something more structural as you've expanded so much acreage recently that builds in a higher yard operating expense?

好的。然後我想，最後一個問題，關於船廠營運費用的成長，是否是您近年來在擴大房地產投資組合方面所做的投資的一部分？您是否需要為尚未滿載運轉的船廠配備人員？那麼，這是否是針對部分資本投資的去槓桿化，還是實際上只是勞動力和部分非經常性成本的激增？由於你們最近擴大了這麼多的土地面積，從而增加了船廠的營運費用，是否存在一些結構性因素？

One very narrow example, Bret, is the increased footprint that also has brought higher property tax bills, both literally with more acreage as well as rising property values around the country. So that's definitely in the P&L as well.

布雷特，一個非常狹義的例子是，佔地面積的增加也帶來了更高的房產稅，這不僅因為土地面積的增加，還因為全國各地的房產價值上漲。所以這也肯定包含在損益表中。

As for the deleveraging, I think that largely is smoothed out over time. We don't have a huge bolus of yards opening at one moment in time. So as we encounter those facilities that have new management, new staff for which we don't yet have a volume to fully absorb that, we also have volume coming into yards that are more fully matured for which we are getting the operating leverage. So if that the distortion, it's a small.

至於去槓桿，我認為隨著時間的推移，這個過程基本上會逐漸平穩。我們不會在某一時刻同時開放大量的場地。因此，當我們遇到一些設施擁有新的管理人員和新員工時，我們目前還沒有足夠的數量來完全吸收他們，而我們也有一些數量進入更成熟的工廠，我們正在獲得經營槓桿。如果存在扭曲，那麼扭曲程度很小。

Great. Thank you.

偉大的。謝謝。

Thanks, Brett.

謝謝，布雷特。

Jash Patwa, JPMorgan.

摩根大通的賈什·帕特瓦 (Jash Patwa)。

Hi, good evening and thanks for taking my question. Just one on the non-insurance business, if you could give us an update on the business mix in terms of the proportion of revenue and any color around the demographics of the non-insurance customers. I believe you have been investing towards building out a dedicated buyer base on the whole car side for a few quarters now. It would be great if you could share some early inning results on this front. Thanks, and I will follow up.

大家好，晚上好，感謝您回答我的問題。關於非保險業務，您能否向我們介紹一下業務組合的最新情況，包括收入佔比，以及非保險客戶的人口統計資料。我相信您已經投資了幾個季度，致力於在整個汽車領域建立專門的買家群體。如果您能分享這方面的一些早期結果，那就太好了。謝謝，我會跟進。

Great. So as for those non-insurance sellers, the key dimensions would be our Blue Car volume. We think of that as institutional sellers like banks and rental car companies, corporate fleets, and dealers. So that's Copart dealer services at number two. Number three, cash for cars. So this is our consumer-facing business at Copart through which we buy cars from consumers. For example, those liability coverage-only consumers who end up with a wrecked car looking for ways to dispose of them. All three are meaningful. We don't think we've disclosed precisely how much is each, but all three are substantial in the scheme of our non-insurance business.

偉大的。因此，對於那些非保險銷售商來說，關鍵維度是我們的藍色汽車銷售。我們認為這些是機構賣家，例如銀行、汽車租賃公司、企業車隊和經銷商。Copart 經銷商服務排名第二。第三，用現金換汽車。這是 Copart 面向消費者的業務，我們透過該業務從消費者那裡購買汽車。例如，那些只購買責任險的消費者在車子報廢後，總是想辦法處理它們。這三者都是有意義的。我們認為我們還沒有透露每項業務的具體金額，但這三項業務在我們的非保險業務中都佔有很大比重。

The one correction or one clarification I'd make to your inquiry about the buyer base is that we definitely don't think of it as a dedicated buyer base. We think of the buyer base as being very much an integrated one, and the importance of the crossover buyer underscores that point. So we often will have buyers arrive for the first time to look at a rental car that's six years old, a perfectly drivable vehicle, who then discovers that insurance cars nearby or perhaps not nearby fit the bill as well because they were hail cars or they're otherwise drivable or they have damage that doesn't affect at all, the fundamentals of the vehicle as is.

對於您關於買家群體的詢問，我要做的一個更正或澄清是，我們絕對不認為這是一個專門的買家群體。我們認為買家群體是一個非常全面的群體，跨界買家的重要性凸顯了這一點。因此，我們經常會遇到這樣的情況：買家第一次來查看一輛使用了六年、可以完全駕駛的租賃汽車，然後發現附近或可能不在附近的保險車輛也符合要求，因為它們是冰雹車，或者它們可以駕駛，或者它們有損壞，但根本不影響車輛的基本結構。

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

因此這些買家最終會從雙方購買汽車。我們發現這種情況比您所描述的專門買家的情況要多得多。我想說所有這些賣家的共同特點是，Copart 的國際買家都非常相關。您可能已經關注了我們有一段時間了，因此您可能知道，國際買家通常會購買更有價值的汽車，事實上，比在 Copart 上出售的普通汽車價值高得多。對於非保險車輛來說，情況也是如此。他們既是買家，又是競標者，都是積極的參與者，這當然推動了流動性，也推動了 Copart 的銷售價格。

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

明白了。那是非常有用的顏色。關於費用方面，我只需要再說一項。我認為你們已經有好幾年沒有對買方實施任何大幅費用上漲了。我很好奇您是否可以分享一下費用上漲的歷史框架，其中報廢車輛方面以及整車方面的定價都有所緩和。您是否想知道近年來競爭環境的變化是否改變了您對費用上漲的態度？

Yes, I'll acknowledge that's a good and reasonable substantive question. It's one we don't address on -- in forums like this one. We view ourselves as responsible long-term stewards of this business. We focus first and foremost on delivering value to our sellers, to our buyers. And we trust that in the long run. We'll also capture our appropriate share thereof. So we don't talk about fee schedules, with would encourage you to pursue that research through third parties.

是的，我承認這是一個好的、合理的實質問題。我們在類似這樣的論壇上不會討論這個問題。我們視自己為這項業務負責任的長期管理者。我們首先註重的是為我們的賣家和買家提供價值。從長遠來看，我們相信這一點。我們也會取得其中適當的份額。因此，我們不談論費用表，而是鼓勵您透過第三方進行研究。

Appreciate it. Thank you.

非常感謝。謝謝。

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

謝謝。目前沒有其他問題。我想將電話轉回給傑夫，請他發表最後評論。

Thanks, thank you for joining us, and we'll talk to you in a couple of months.

謝謝您加入我們，我們將在幾個月後與您交談。

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。現在您可以斷開您的線路。感謝您的參與。