Copart Inc (CPRT) 2025 Q3 法說會逐字稿

Please stand by. Good day, everyone, and welcome to the Copart, Inc third quarter fiscal 2025 earnings call. Just a reminder, today's conference is being recorded. Before turning the call over to management, I will share Copart's Safe Harbor statement.

請稍候。大家好，歡迎參加 Copart, Inc 2025 財年第三季財報電話會議。提醒一下，今天的會議正在錄製中。在將電話轉給管理層之前，我將分享 Copart 的安全港聲明。

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.

該公司今天的評論包括聯邦證券法所定義的前瞻性陳述，包括管理層對公司市場趨勢、機會和不確定性的當前看法。這些前瞻性陳述涉及重大風險和不確定性。

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, 2024, and in 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.

有關公司業務相關風險的更多詳細信息，請參閱公司截至 2024 年 7 月 31 日的 10-K 表年度報告中的“風險因素”部分，以及公司隨後的每個 10-Q 表季度報告中的“風險因素”部分。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。

Welcome, and thank you for joining us. I'll begin with some remarks on our insurance business, including comments about our preparation for the 2025 CAT season before passing it to Leah to describe the results of our financial performance for the quarter.

歡迎您，感謝您的加入。我將首先介紹我們的保險業務，包括我們為 2025 年 CAT 季節所做的準備工作，然後再交給 Leah 描述我們本季的財務業績結果。

Starting with our insurance business, our global insurance volume remained relatively flat year-over-year with a nominal decline of 0.3% globally in unit sales and 0.9% in the United States. Accounting for the extra business day of leap year 2024, global insurance and US insurance units sold grew by 1.3% and 0.6%, respectively.

從我們的保險業務開始，我們的全球保險業務量比去年同期保持相對平穩，全球單位銷售額名義下降 0.3%，美國下降 0.9%。考慮到 2024 年閏年的額外工作日，全球保險和美國保險銷售單位分別成長了 1.3% 和 0.6%。

At the same time, total loss frequency continues to rise as it has throughout the vast majority of the history of our industry. In the United States, total loss frequency reached 22.8% in the first calendar quarter of 2025, up 100 basis points or thereabouts in comparison to last year. And while individual quarters can fluctuate and from time to time, we observed even seasonal effects, the underlying drivers of total loss frequency remain quite consistent over time.

同時，總損失頻率持續上升，就像我們行業歷史上的絕大部分時間一樣。在美國，2025年第一季的總損失頻率達22.8％，比去年同期上升了約100個基點。儘管個別季度可能會出現波動，而且我們有時甚至會觀察到季節性影響，但總損失頻率的潛在驅動因素在一段時間內仍然相當一致。

First, the economics of vehicle repairs become less economically attractive to our client base, the insurance industry, with increasing vehicle complexity, rising parts prices, rising labor rates, storage fees, rental car expenses as well. At the same time, on the other side of the ledger, the economics of total loss become more attractive over time.

首先，隨著車輛複雜性的增加、零件價格的上漲、人工費用的上漲、倉儲費的上漲、租車費用的上漲，車輛維修的經濟性對我們的客戶群（保險業）來說變得越來越沒有吸引力。同時，從另一方面來看，全損的經濟效益隨著時間的推移而變得越來越有吸引力。

For emerging economies around the world, our salvaged vehicles are an essential source of mobility for them. Copart's auction technology and our ecosystem of sellers and members is uniquely well suited to finding the highest and best use for every vehicle we touch.

對於世界各地的新興經濟體來說，我們的報廢車輛是他們重要的出行來源。Copart 的拍賣技術以及我們的賣家和會員生態系統非常適合為我們接觸的每輛汽車找到最高和最佳的用途。

In anticipating a question about why nominal insurance volumes haven't kept pace with what appears to be rising total loss frequency, we'd offer a couple of notes. First, the precision of total loss frequency measures do vary or does vary. The varying nature of the calculation is to assess what portion of the claims in any individual quarter are ultimately resolved to be a total loss in the end, meaning some figures are even revised after the fact for historical periods.

在預測為什麼名目保險量沒有跟上似乎不斷上升的總損失頻率這一問題時，我們會提供幾點說明。首先，總損失頻率測量的精度確實會有所不同。計算的不同性質是為了評估任何單一季度的索賠中有多少部分最終被解決為全部損失，這意味著一些數字甚至會在歷史時期後進行修訂。

And notably, we observe that there are cyclical forces at work as well, including an increase in the rate of uninsured and underinsured drivers. According to the Insurance Research Council, they observed meaningful increases in both over the course of the past four years.

值得注意的是，我們觀察到週期性因素也在起作用，包括無保險和保險不足的駕駛者比例的上升。據保險研究委員會稱，他們發現過去四年中這兩項指標都出現了顯著增長。

And we would note cyclical trends over the decades in terms of the rate of uninsured and underinsured drivers. What that means in practical -- in practice is that drivers with coverage of that type may never bring their vehicles into the traditional insurance claim settlement pathway in the first place. We would expect, over time, as has been proven over the decades, that these cyclical forces will reverse -- will revert at some point as well.

我們會注意到，幾十年來，無保險和保險不足的司機比例呈現週期性趨勢。實際上，這意味著擁有此類保險的駕駛者可能根本不會將他們的車輛帶入傳統的保險索賠解決途徑。我們預計，隨著時間的推移，正如幾十年來所證明的那樣，這些週期性力量將會逆轉——在某個時候也會恢復。

I wanted to turn my attention to the 2025 storm season. Meteorologists and experts have released a number of forecasts for how they expect 2025 storm season to unfold, noting that 2024 was an active season itself. Most would expect based on above-average oceanic temperatures that this form season could well be an active one as well, perhaps as active as 2024. In anticipation of these types of events, we continue to invest in real estate, infrastructure, technology, our people, and other aspects of operational readiness. Our preparation is not an ad hoc spring event, but in fact, a year-round exercise for us as a company.

我想把注意力轉向 2025 年的風暴季節。氣象學家和專家發布了一系列關於 2025 年風暴季節將如何發展的預測，並指出 2024 年本身就是一個活躍的季節。大多數人根據高於平均的海洋溫度預測，這個海冰形成季節也可能是個活躍的季節，也許和 2024 年一樣活躍。為了應對此類事件，我們將繼續投資於房地產、基礎設施、技術、人員以及其他營運準備方面。我們的準備並不是春季的臨時活動，事實上，這是我們公司全年的演習。

One tangible example is our acquisition of Hall Ranch, a property located in South Florida, which offers nearly 400 usable acres of vehicle storage for a storm. With this addition, we now have the physical footprint to handle a storm more than three times the size of the largest Florida storms on record in Copart history.

一個明顯的例子是我們收購了位於南佛羅裡達州的霍爾牧場 (Hall Ranch)，該牧場有近 400 英畝的可用面積可用於風暴天氣的車輛存放。有了這項新增工作，我們現在擁有了應對風暴的物理空間，該風暴的規模是 Copart 歷史上有史以來佛羅裡達州最大風暴的三倍多。

In closing, we are excited to continue to invest our time and resources in growing and enhancing our capabilities, both for storms and for our day-to-day business. We'll invest in our physical storage capacity, our technology platform, our people, and our seller member ecosystem, each of which is essential to delivering superior auction outcomes to our sellers and a superior purchasing experience for our members.

最後，我們很高興繼續投入時間和資源來發展和增強我們應對風暴和日常業務的能力。我們將投資於我們的實體儲存容量、我們的技術平台、我們的員工以及我們的賣家會員生態系統，這些對於為我們的賣家提供卓越的拍賣結果和為我們的會員提供卓越的購買體驗都至關重要。

With that, I'll turn it over to our CFO, Leah Stearns, and we'll both take your questions thereafter.

接下來，我將把問題交給我們的財務長 Leah Stearns，然後我們會回答你們的問題。

Thank you, Jeff. I'll begin with our third quarter sales trends. During the quarter, our global unit sales increased 1%, which reflects the modest headwind from the prior period being leap year. On a per business day basis, our global unit sales increased over 2%. Consignment or fee units continue to constitute most of our global unit volume.

謝謝你，傑夫。我將從我們第三季的銷售趨勢開始。本季度，我們的全球單位銷售額成長了 1%，這反映了上一季是閏年所帶來的適度阻力。以每個工作日計算，我們的全球單位銷售額增加了 2% 以上。寄售或收費單位繼續構成我們全球單位數量的大部分。

In our US segment, unit sales were flat, reflecting flat fee unit growth and purchase unit growth of nearly 7%. Our US insurance unit volume decreased close to 1% year-over-year and decreased approximately 2%, excluding CAT units. We continue to see noninsurance US unit volume growth outpace that of our US insurance business.

在我們的美國分部，單位銷售量持平，反映固定費用單位成長和購買單位成長近 7%。我們的美國保險單位數量較去年同期下降近 1%，不包括 CAT 單位則下降約 2%。我們繼續看到美國非保險業務單位銷售成長速度超過美國保險業務的成長速度。

Blue Car, which services our bank, rental, and fleet partners, continued its strong trend with year-over-year growth of almost 14%. Dealer sales volume consisting of Copart Dealer Services and National Powersports auctions grew over 3% year-over-year. Low-value units increased just over 4%.

為我們的銀行、租賃和車隊合作夥伴提供服務的 Blue Car 繼續保持強勁增長勢頭，同比增長近 14%。包括 Copart 經銷商服務和 National Powersports 拍賣在內的經銷商銷售量年增超過 3%。低價值單位增幅略高於 4%。

Turning to our International segment. We saw unit sales growth of 6% in the quarter and about 5% excluding CAT units, with fee units increasing 9% and purchase units decreasing 13% for the quarter. Our purchase units continued to decline as certain insurance customers shift from purchase contracts to consigning units.

轉向我們的國際部分。我們發現本季單位銷售額成長了 6%，不包括 CAT 單位則增加了約 5%，其中費用單位增加了 9%，而購買單位則在本季減少了 13%。由於某些保險客戶從購買合約轉向寄售單位，我們的購買單位繼續下降。

On a final note, we have observed softness in the heavy equipment auction space, due in part to widespread uncertainty regarding infrastructure spending and tariffs. Our partner in the equipment space Purple Ways was nevertheless maintained flat GTV year-over-year for the trailing 12 months ending April 30.

最後要指出的是，我們觀察到重型設備拍賣領域表現疲軟，部分原因是基礎設施支出和關稅方面存在普遍的不確定性。儘管如此，我們在設備領域的合作夥伴 Purple Ways 在截至 4 月 30 日的 12 個月內 GTV 仍與去年同期持平。

Our global ASPs increased by approximately 3% for the quarter compared to the year ago period. Our US insurance ASPs increased over 2% over the same period and our International segment insurance ASPs increased approximately 5%. We believe our actions are outperforming other platforms on delivered ASPs to our sellers, attributable to the active participation of our global member base as well as our unique digital auction platform.

與去年同期相比，本季我們的全球平均銷售價格上漲了約 3%。同期，我們美國保險的平均銷售價格上漲了 2% 以上，國際保險平均銷售價格上漲了約 5%。我們相信，由於我們全球會員群體的積極參與以及我們獨特的數位拍賣平台，我們在向賣家提供平均銷售價格方面的表現優於其他平台。

We have not observed any hesitation from our buyers, which we would attribute to proposed or enacted tariffs. Our global inventory decreased nearly 10% from the year ago period. Overall inventory levels in the US decreased approximately 11%. There are three main drivers of the inventory decline: lower assignments, faster cycle times and the reduction in low-value unit aged inventory.

我們沒有觀察到買家有任何猶豫，我們將其歸因於提議或頒布的關稅。我們的全球庫存比去年同期減少了近 10%。美國整體庫存水準下降了約11%。庫存下降主要有三個原因：任務減少、週期時間縮短、低價值單位陳舊庫存減少。

As we've noted previously, year-over-year changes in inventory levels can be a directional indicator of prospective unit sales trends. The trends we are observing in our inventory levels reflect the cyclical impacts associated with an increasing share of under and non-insured motorists and varying growth trajectories amongst insurance carriers. We continue to believe that the secular trends in favor of rising total loss frequency will drive our long-term growth.

正如我們之前所指出的，庫存水準的年比變化可以作為未來單位銷售趨勢的方向指標。我們在庫存水準中觀察到的趨勢反映了保險不足和無保險駕駛者比例增加以及保險公司不同成長軌跡所帶來的週期性影響。我們仍然相信，總損失頻率上升的長期趨勢將推動我們的長期成長。

In addition, our continuous focus on reducing our operational cycle times had reduced inventory levels. For example, deploying our Title Express solution to a number of new carriers has reduced in-yard cycle times and physical inventory. Our International business ended the quarter with inventory levels flat from the prior year.

此外，我們持續致力於縮短營運週期，從而降低了庫存水準。例如，將我們的 Title Express 解決方案部署到許多新的承運商，減少了場內週期時間和實體庫存。本季末，我們的國際業務庫存水準與上年持平。

Turning to our financial performance. Global revenue increased to $1.2 billion. Global service revenue increased nearly $88 million or over 9% from the third quarter of '24 due to increased international volume and overall higher revenue per unit. US service revenue grew by 8% for the quarter and 7% when excluding CAT units and international service revenue grew by about 18%.

談到我們的財務表現。全球收入增至12億美元。由於國際業務量增加和單位總收入增加，全球服務收入較 2024 年第三季增加了近 8,800 萬美元，增幅超過 9%。本季美國服務收入成長了 8%，不包括 CAT 部門則成長了 7%，國際服務收入成長了約 18%。

Global purchased vehicle sales for the third quarter decreased approximately 2%, while global purchased vehicle gross profit decreased in the third quarter. In the US, purchased vehicle revenue was up about $20 million or 22%, while purchased vehicle gross profit decreased $13 million or about 187% in the quarter. This includes the impact of a $12 million out-of-period adjustment, which was related to the cost of vehicles sold in Q1 and Q2 of this year.

第三季全球採購汽車銷量下降約2%，第三季全球採購汽車毛利則下降。在美國，本季購買汽車收入成長約 2,000 萬美元，增幅 22%，而購買汽車毛利下降 1,300 萬美元，減幅約 187%。這包括 1,200 萬美元的非期調整的影響，該調整與今年第一季和第二季銷售的汽車成本有關。

Year-to-date, our US purchase unit margins were just over 6%. Internationally, purchased vehicle revenue decreased by over $23 million or 25% and gross profit increased by over $2 million or about 22% in the third quarter. The reduction in international purchased vehicle revenue accompanied by an increase in gross margin to be driven by higher ASP insurance vehicles in Germany, which have transitioned from a purchase contract to a consignment model as well as stronger purchase unit margins in the UK.

年初至今，我們的美國採購單位利潤率略高於 6%。在國際上，第三季購買車輛收入減少了 2,300 多萬美元，降幅為 25%，毛利增加了 200 多萬美元，降幅約為 22%。國際購買車輛收入的減少伴隨著毛利率的增加，這得益於德國保險車輛平均售價的提高，這些車輛已從購買合約轉變為寄售模式，以及英國購買單位利潤率的提高。

Global facility-related costs, which include facility operations, depreciation and amortization and stock-based compensation increased $51 million or about 12% and about 10% pro forma if you reflect cap costs. In the US, facility-related costs increased $43 million or nearly 12%. During the quarter, we recognized $6 million in incremental costs associated with Hurricane Selene and Milton. This reflects the recognition of deferred expenses associated with CAT units sold during the period.

全球設施相關成本（包括設施運營、折舊和攤銷以及股票薪酬）增加了 5,100 萬美元，增幅約為 12%，如果反映上限成本，則預計增加約 10%。在美國，設施相關成本增加了 4,300 萬美元，增幅接近 12%。本季度，我們確認了與颶風塞勒涅和米爾頓相關的 600 萬美元增量成本。這反映了與該期間出售的 CAT 單位相關的遞延費用的確認。

Excluding the costs associated with the hurricanes, facility-related costs per unit increased about 10% from the prior year. This increase on a per unit basis reflects our ongoing investments in expanded operational capacity to support our continued growth.

不計颶風相關的成本，每單位設施相關成本比前一年增加了約 10%。每單位成本的成長反映了我們對擴大營運能力的持續投資，以支持我們的持續成長。

International facility-related costs were up almost $8 million, an increase of nearly 11% or less than 5% on a per unit basis. During the quarter, global gross profit was approximately $552 million, an increase of $27 million or about 5%, and our gross profit -- our gross margin percentage was 46% for the quarter. In the US, our gross profit was approximately $480 million, an increase of about 3% and gross margin was about 48% for the quarter. Our international gross profit was approximately $73 million, an increase of about 26% and our gross margin was about 35% in the quarter.

國際設施相關成本上漲了近 800 萬美元，增幅接近 11%，以單位計算增幅不到 5%。本季度，全球毛利約 5.52 億美元，增加 2,700 萬美元，增幅約 5%，本季我們的毛利－毛利率百分比為 46%。在美國，本季我們的毛利約為 4.8 億美元，成長約 3%，毛利率約 48%。本季我們的國際毛利約 7,300 萬美元，成長約 26%，毛利率約 35%。

Third quarter GAAP operating income increased over 3% to approximately $452 million, which reflects the growth in gross profit and our general and administrative expenditures of $101 million, which are up about $12 million year-over-year.

第三季 GAAP 營業收入成長超過 3% 至約 4.52 億美元，這反映了毛利的成長以及我們的一般和行政支出 1.01 億美元，較去年同期增加約 1,200 萬美元。

Finally, third quarter GAAP net income increased by over 6% to $407 million or $0.42 per diluted common share. During the quarter, we benefited from an increase of nearly $7 million from interest income as we have actively invested our cash in the treasury securities. For the quarter, our tax rate was a little over 19%.

最後，第三季 GAAP 淨收入成長超過 6%，達到 4.07 億美元或每股稀釋普通股 0.42 美元。本季度，由於我們積極將現金投資於國庫證券，我們的利息收入增加了近 700 萬美元。本季度，我們的稅率略高於 19%。

Turning to our capital structure. As of the end of April, we had over $5.6 billion of liquidity, which is comprised of nearly $4.4 billion in cash and our capacity under our revolving credit facility of approximately $1.3 billion. With that, Jeff and I would be happy to take some questions.

轉向我們的資本結構。截至 4 月底，我們擁有超過 56 億美元的流動資金，其中包括近 44 億美元的現金和約 13 億美元的循環信貸額度。有了這些，傑夫和我很樂意回答一些問題。

(Operator Instructions) Bob Labick, CJS Securities.

（操作員指示）Bob Labick，CJS 證券。

So obviously, you guys have a tremendous asset in your land and you keep purchasing more, and it's a clear benefit to your insurance salvage customers, which is why you keep buying it. I was hoping you could talk about how do you think about this land asset. Are there any current or future benefits from this land for your growing Blue Car or Whole Car customers, particularly with the shift of -- to digital for whole car auctions going on?

顯然，你們的土地是一筆巨大的資產，而且你們還在不斷購買更多，這對你們的保險救助客戶來說顯然是有利的，這就是你們不斷購買的原因。我希望您能談談您對這項土地資產的看法。這片土地是否會為您日益增長的藍色汽車或整車客戶帶來任何當前或未來的利益，特別是隨著整車拍賣向數位化的轉變？

Thanks, Bob. Great question. We think that physical storage and logistics are essential to our value proposition for many sellers, insurance companies as well as the Blue Car, the finance companies, rental car companies, corporate fleets, and the like. In many instances, physical storage is a necessity. We, of course, as you know, in the past, have also developed products for purely virtual sales.

謝謝，鮑伯。好問題。我們認為，對於許多賣家、保險公司以及 Blue Car、金融公司、汽車租賃公司、企業車隊等而言，實體儲存和物流對於我們的價值主張至關重要。在許多情況下，實體儲存是必需的。當然，正如您所知，我們過去也開發過純虛擬銷售的產品。

But as it turns out, physical storage, certainly in the case of insurance, when salvage titles and processing through state DMVs is a necessary step as well, proves essential there, but also in many cases for the other types of sellers you described. So we view it as an essential portion of our service offering. Certainly, the digital product platform you described as well as equally so, but it is a two-pronged approach to serving that universe.

但事實證明，實物存儲，當然在保險的情況下，當報廢所有權和通過州 DMV 處理也是必要的步驟時，在那裡被證明是必不可少的，但在許多情況下，對於您描述的其他類型的賣家也是如此。因此，我們將其視為我們服務的重要組成部分。當然，您所描述的數位產品平台也是如此，但它是一種服務於該領域的雙管齊下的方法。

I'd also to perhaps add some further context would say that storage is increasingly difficult to procure anywhere in the United States, anywhere in any of the countries we serve, frankly. So we view it also as -- we view it as our responsibility in being stewards of the industry as well to make sure that we can continue to support insurance companies and the other companies you described as well to make sure that we can continue to offer the service that we do for decades and for generations to come.

坦白說，我或許還想補充一些背景訊息，那就是在美國任何地方、在我們服務的任何國家，採購儲存都越來越困難。因此，我們也認為，作為行業的管理者，我們也有責任確保我們能夠繼續支持保險公司和您所描述的其他公司，以確保我們能夠在未來幾十年乃至幾代人中繼續提供我們所提供的服務。

Okay. Great. And then you touched on this in your opening remarks a little bit and last call. But could you just maybe elaborate a little further on the shift of insured, less collision insurance, insured motorists and how that's typically played out over previous cycles and where you see it impacting volumes in the near or medium term?

好的。偉大的。然後您在開場白和最後發言中稍微談到了這一點。但是，您能否進一步詳細說明投保人（不包括碰撞險）和投保機動車的轉變情況，以及這種轉變在之前的周期中通常如何表現，以及您認為這會對短期或中期的保量產生什麼影響？

Yes. I think, Bob, it's -- unfortunately, this exercise is necessarily imprecise. So we have pieced together a number of different sources, including the insurance council we described in the prepared remarks as well as other sources for registered vehicles for the types of coverage folks have. So whether it's collision liability comprehensive and so forth, we can derive then the portion of the registered vehicle fleet that has or doesn't have insurance and to what extent they are underinsured as well.

是的。我認為，鮑勃，不幸的是，這個練習必然是不精確的。因此，我們匯集了許多不同的來源，包括我們在準備好的評論中描述的保險委員會以及其他有關註冊車輛的來源，以了解人們所擁有的保險類型。因此，無論是碰撞責任綜合險還是其他險種，我們都可以得出註冊車隊中擁有或未擁有保險的比例，以及它們的保險不足程度。

So we see cyclicality in it. It won't surprise you that around the time of the global financial crisis in '08 and 2009, there was a local trough in insurance coverage. I think it's not a surprise that we're experiencing that again now. As I think you know, Bob, from following the insurance industry as well, though the rest of the world experienced very meaningful inflation in 2021, 2022, in many cases, insurance rates lagged that inflation because the insurance carriers in turn had to obtain regulatory approval to make modifications to their books of business.

因此我們看到了其中的周期性。在2008年和2009年全球金融危機期間，保險覆蓋率一度跌至低谷，這並不令人意外。我認為我們現在再次經歷這種情況並不奇怪。鮑勃，我想您也知道，從關注保險行業的角度來看，儘管世界其他地區在 2021 年、2022 年經歷了非常嚴重的通貨膨脹，但在許多情況下，保險費率落後於通貨膨脹，因為保險公司反過來必須獲得監管部門的批准才能修改其業務賬簿。

And so on the tail end of inflation with an already stressed consumer, in some cases, I think we are seeing and they are seeing folks with higher deductibles or opting for liability only coverage or in some cases, despite statutory requirements going without insurance altogether.

因此，在通貨膨脹的尾聲，消費者已經面臨壓力，在某些情況下，我認為我們看到人們有更高的免賠額或選擇只投保責任險，或者在某些情況下，不顧法定要求，完全不投保。

So we think that's a cyclical phenomenon, at least it has been for the past 20, 30 years for as long as we can see the data. It does go up and down over time.

因此我們認為這是一個週期性現象，至少從我們看到的數據來看，過去 20 到 30 年間一直是如此。隨著時間的推移，它確實會上下波動。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

Wanted to ask about Purple Wave. I think you're about a year into that partnership. And I'm curious what you've learned so far and how you expect to invest in that business going forward, understanding that at this moment, it's not growing.

想詢問有關 Purple Wave 的情況。我認為你們的合作關係已經持續了大約一年。我很好奇您到目前為止了解到了什麼，以及您預計未來將如何投資該業務，因為目前該業務還沒有成長。

Yes. Craig, I think it's a very fair question. I think we were -- as you know, the original thesis here is that Purple Wave, really for any kind of M&A activity we pursue, NPA now seven years ago, eight years ago or so when we made that investment as well.

是的。克雷格，我認為這是一個非常公平的問題。我認為我們——如你所知，這裡最初的論點是紫色浪潮，實際上適用於我們所追求的任何類型的併購活動，NPA 現在是七年前，大約八年前我們也進行了那項投資。

The two-pronged test that we always subject any investment like this to is, one, do we like it fundamentally as an investment in and of itself, meaning if this were simply a growth equity or a control equity acquisition, would we like the nature of the risk-adjusted expected returns from the business itself; and then secondarily, we ask the question, to what extent does this help Copart's core business. And then you start to evaluate the strategic overlap to what extent Copart's capabilities can help the business, to what extent can the business capabilities help Copart as it stands now.

我們對任何此類投資總是會進行雙重測試：第一，我們是否從根本上喜歡它本身作為一項投資，也就是說，如果這只是一項增長型股權或控制性股權收購，我們是否喜歡該業務本身的風險調整預期回報的性質；其次，我們要問的是，這對 Copart 的核心業務有多大幫助。然後，您開始評估策略重疊，Copart 的能力能在多大程度上幫助業務，業務能力能在多大程度上幫助 Copart 目前的發展。

And Purple Wave, I think the logic for the Purple Wave transaction was very much on both fronts. It was that we affirmatively liked the investment on its own merits, and we also thought it was beneficial to Copart. We are even just day-to-day, a huge purveyor of equipment of construction, agricultural equipment, heavy-duty trucks and the like the expertise that they brought was meaningful to us. And certainly, the expertise that we bring in the form of managing large physical storage facilities, large liquid digital auctions and so forth made for a very good fit.

至於 Purple Wave，我認為 Purple Wave 交易的邏輯在很大程度上是雙向的。我們非常看好這項投資，因為它本身的優點，而且我們也認為它對 Copart 有利。我們甚至只是日常的建築設備、農業設備、重型卡車等的大型供應商，他們帶來的專業知識對我們來說意義重大。當然，我們在管理大型實體儲存設施、大型流動數位拍賣等方面的專業知識使得這兩者非常契合。

So I think it's probably not quite fair to say that it's flat. I think they're operating in a very uncertain environment, courtesy of the tariffs, as you know. So there are a lot of folks in a lot of these businesses who are awaiting more certainty on both infrastructure spending as well as tariffs to decide what to do with their equipment, whether to buy, to sell, et cetera. So I think they're facing some inertia, which other public companies, I think, have certainly seen as well in their results in terms of the volume of activity in the heavy equipment arena.

所以我認為說它是平的可能不太公平。我認為，由於關稅的原因，他們的營運環境非常不確定，這一點你也知道。因此，許多企業中的許多人都在等待基礎設施支出和關稅方面的更多確定性，以決定如何處理他們的設備，是購買還是出售等等。因此，我認為他們面臨一些惰性，我認為其他上市公司在重型設備領域的活動量方面也肯定也看到了同樣的情況。

And you mentioned tariffs. How are you thinking about the very broad implications of trade policy as it relates to your business as it currently stands, knowing that it's been changing a little bit?

您提到了關稅。您知道貿易政策一直在發生一些變化，您如何看待貿易政策對您的業務的廣泛影響？

Yes. I think that's an understatement, Craig. It is certainly a very dynamic picture. And I'd say that is probably, first and foremost, the most important observation here is that it has created meaningful uncertainty for our clients, the insurance industry and otherwise. We now are facing or the industry broadly is facing tariffs on parts -- the parts industry.

是的。克雷格，我認為這是輕描淡寫的說法。這確實是一幅非常動態的畫面。我想說，首先，這裡最重要的觀察是，它為我們的客戶、保險業和其他行業帶來了重大的不確定性。我們現在正面臨或整個產業正面臨零件關稅——零件產業。

I think 2024 day, would say, the $220 billion industry or thereabouts for both new and replacement parts the vast majority of which come from half a dozen countries. Canada, Mexico, China, South Korea, Japan, Germany, I think, account for the vast majority of those parts. Virtually all of those parts as it stands now, we're facing tariffs to some extent, which increases the cost of the repair for the insurance industry.

我認為到 2024 年，新零件和替換零件的產業規模將達到 2,200 億美元左右，其中絕大多數來自六個國家。我認為，加拿大、墨西哥、中國、韓國、日本、德國佔據了其中的絕大部分。目前，幾乎所有這些零件都面臨一定程度的關稅，這增加了保險業的維修成本。

So for any given claim, they're evaluating their choices, considering their choices, which can be to repair the car or to total it. It assuredly has made the repair path less attractive because the parts are more expensive. In some cases, the parts will be delayed and delayed parts, of course, compromises the policyholder experience and likely extends the duration of the rental as well. That's that side of the ledger.

因此，對於任何給定的索賠，他們都在評估自己的選擇，考慮自己的選擇，可以是修理汽車，也可以是將其報廢。由於零件價格更昂貴，這無疑使得維修途徑變得不那麼有吸引力。在某些情況下，零件會被延遲，而零件延遲當然會影響保單持有人的體驗，也可能會延長租賃時間。這就是帳簿的那一面。

On Copart side of the ledger, when you consider the total loss, I think there are offsetting considerations there. On the one hand, if used car prices should rise and ACVs should rise because new cars become more scarce, then the cost of a total loss indemnity may be higher but by the same token, our salvage returns will be higher as well.

在 Copart 帳簿方面，當你考慮總損失時，我認為那裡有抵消的考慮。一方面，如果因為新車變得更加稀缺，二手車價格上漲，平均價值也上漲，那麼全損賠償的成本可能會更高，但同樣，我們的殘值回報也會更高。

So I think the best analogy we can draw is to the 2021 or thereabout to the semiconductor crisis you may certainly recall. That was less about parts per se. So it wasn't all repair parts. It was a very narrow subset of the parts that go into the production of a vehicle. And in that moment, I would say we experienced higher ASPs for the cars that we sell.

因此，我認為我們可以得出的最好類比就是 2021 年左右的半導體危機，你們肯定還記得。這與零件本身關係不大。所以並不是所有零件都是修理零件。它是汽車生產中非常狹窄的零件子集。在那一刻，我想說我們銷售的汽車的平均售價更高了。

Probably all else equal, we experienced a mild suppression of demand relative to where it otherwise would have been. I think today's catalyst is probably marginally more favorable to us than the semiconductor shortage because it is repair parts, the vast majority of which comes from places outside of the United States.

在其他條件相同的情況下，我們可能經歷了相對於原本應有的程度的輕微需求抑制。我認為今天的催化劑對我們來說可能比半導體短缺更有利，因為它是維修零件，其中絕大多數來自美國以外的地方。

So we think the repair path will become relatively less attractive in comparison to the total loss path by virtue of the tariffs. That said, overwhelmingly, the conclusion is for now that there's tremendous uncertainty, right? The federal government, I think, is intending to provide guidance as to what constitutes exceptions under USMCA, what counts as USMCA content for parts. So there's still much of this picture that's still left to be painted.

因此，我們認為，由於關稅的影響，修復路徑與總損失路徑相比將變得相對缺乏吸引力。話雖如此，但目前的結論絕大多數是存在巨大的不確定性，對嗎？我認為，聯邦政府打算就 USMCA 下的例外情況、以及 USMCA 的零件內容提供指導。因此，這幅圖景還有許多部分尚未描繪。

Chris Bottiglieri, BNP Paras.

克里斯‧波蒂格里耶 (Chris Bottiglieri)，法國國家銀行副總裁。

So the first one, Jeff, Copart has taken a lot of share over the last five years you've been CEO and the 10 years before that. What are you currently seeing from a market share perspective? And is there any reason why your peer could be putting higher reported growth numbers? Like how would you think about that?

第一個問題，傑夫，在您擔任執行長的過去五年以及之前的十年裡，Copart 已經佔據了大量的股份。從市場佔有率角度來看，您目前看到了什麼？您的同行報告的成長數字更高，這有什麼原因嗎？您會怎麼想？

Chris, a very fair question. I think market share, as you might imagine, is a very complicated, very downstream metric. So it is affected by things like the relative growth of individual insurance carriers that we serve. And so if on any given day, we happen to be serving an insurance carrier who is growing faster or slower, that can affect the overall volume trends for us relative to the rest of the industry. I think we've gained share, frankly, for many years and decades before I arrived even at the company at all.

克里斯，這是一個非常公平的問題。我認為，正如你可能想像的那樣，市佔率是一個非常複雜、非常下游的指標。因此，它受到我們所服務的個人保險公司相對成長等因素的影響。因此，如果在某一天，我們恰好為一家成長更快或更慢的保險公司提供服務，這可能會影響我們相對於其他行業的整體業務量趨勢。坦白說，我認為，在我加入公司之前，我們已經在許多年甚至幾十年的時間裡贏得了市場份額。

So that's a long-standing trend. And I think the drivers there won't surprise you. We are committed to delivering the very best possible net returns to our clients by investing in the land we've already talked about, by investing in the digital auction platform and by making our partners, our clients faster, more accurate, more efficient at what they do.

這是一個長期趨勢。我認為那裡的司機不會讓你感到驚訝。我們致力於透過投資我們已經討論過的土地、投資數位拍賣平台以及讓我們的合作夥伴和客戶更快、更準確、更有效率地完成工作，為我們的客戶提供盡可能最好的淨回報。

We've talked in previous calls, I won't drag you through all of it here, about advanced charges and how important they are to our insurance companies and the suite of tools. In some cases, computer vision, artificial intelligence enabled that empower them to address those opportunity sets as well.

我們在之前的通話中已經討論過，我不會在這裡拖延你們討論所有關於預付費用以及它們對我們的保險公司和工具套件的重要性。在某些情況下，電腦視覺和人工智慧使他們能夠抓住這些機會。

We know that if we take care of those particular objectives, if we are exceptional along those dimensions, like our stock price, the stock price and market share will take care of itself. We know what the input variables are. We know where to invest our time, attention, and resources, and we have high confidence that if we execute on those fronts that the market share dynamic will take care of itself.

我們知道，如果我們專注於這些特定的目標，如果我們在這些方面表現出色，例如我們的股價，那麼股價和市佔率就會自然而然地上漲。我們知道輸入變數是什麼。我們知道在哪裡投入我們的時間、注意力和資源，我們非常有信心，如果我們在這些方面執行，市場份額的動態將會自行解決。

But I think the short answer to your question is that it is more of the random fluctuations in the misalignment of reporting periods and so forth, we don't line up precisely. It's underlying insurance carrier growth trends, all of which I think are generally cyclical by nature, right? All of those kinds of variables will move in both directions over time.

但我認為對你的問題的簡短回答是，這更多的是報告期錯位等的隨機波動，我們並沒有精確地對齊。這是保險公司成長趨勢的根本原因，我認為這些趨勢本質上都是週期性的，對嗎？隨著時間的推移，所有這些變數都會朝兩個方向變化。

Got you. Okay. And then a bigger picture question. What sets prices in your end markets? Like is it somehow derived off of US vehicle prices? Or is it derived by the local economies of your buyers? Just trying to think if like the tariffs primarily affect the US vehicle prices, like how does that affect with the international buyers, which may not see new car prices rising in their local markets? What does that do? Just kind of curious what your thoughts.

明白了。好的。然後是一個更大的問題。是什麼決定了你們的終端市場價格？就像它是否以某種方式源自美國汽車價格？還是它是由買家所在地的經濟決定的？只是想想想，如果關稅主要影響美國汽車價格，那麼這會對國際買家產生什麼影響，他們可能不會看到當地市場的新車價格上漲？那有什麼作用？只是有點好奇你的想法。

Chris, I'll take a portion of that, and I'll let Jeff jump in if there's anything he wants to add. But I think what we've seen historically is that the arbitrage that's available for our global buyer base because the affordability of mobility solutions locally is so out of reach that they have a significant amount of ability to maximize the value of that vehicle in an emerging market relative to what a domestic buyer would be able to monetize that vehicle for.

克里斯，我會負責一部分，如果傑夫還有什麼要補充的話，我就讓他加入。但我認為，從歷史上看，我們的全球買家群體可以獲得套利，因為當地行動解決方案的承受能力太高，以至於他們有很大能力在新興市場最大化該車輛的價值，相對於國內買家能夠將該車輛貨幣化的價格而言。

And so if you look at simply just the relative price of a newer used vehicle in some of the markets like in Eastern Europe or in Latin America and the affordability index, if you index that to what a consumer in the US would be able to achieve, is drastically more expensive. And as a result, they default to seeking out repairable vehicles, and Copart is a key source for them to go to find them.

因此，如果你只看東歐或拉丁美洲等一些市場中較新的二手車的相對價格和可負擔性指數，如果你將其與美國消費者能夠獲得的價格進行比較，就會發現價格要高得多。因此，他們預設尋找可修復的車輛，而 Copart 是他們尋找可修復車輛的主要來源。

So the -- I would say the sensitivity of price, we don't have a perfect answer to, but we do think that the spread between the alternative is quite dramatic. And therefore, we have not seen any significant impact to buyer activity and bidding activity as a result of the pending or enacted tariffs so far.

所以——我想說，對於價格的敏感性，我們沒有一個完美的答案，但我們確實認為替代品之間的差距相當大。因此，到目前為止，我們尚未看到待決或已頒布的關稅對買家活動和競標活動造成任何重大影響。

Chris, I'd add to that. An illustration with two just -- consider this a stylized illustration or two extremes. In one case, you have a very old car that is entirely destroyed for which the value is entirely the metal, maybe a few parts, maybe some precious metals from the catalytic converter or otherwise. The value of that car is largely domestic. In fact, it's largely local, right? It's unlikely this car for a few hundred dollars will move more than 10, 20, 30 miles even from the side of the Copart facility.

克里斯，我想補充一點。一幅插圖有兩個——可以將其視為一種風格化的插圖或兩個極端。在一種情況下，你有一輛非常舊的汽車，它完全被毀了，它的價值完全在於金屬，也許是一些零件，也許是催化轉換器或其他部件中的一些貴金屬。那輛車的價值主要體現在國內。事實上，它主要是本地的，對吧？這輛價值幾百美元的汽車不太可能從 Copart 工廠附近行駛超過 10、20、30 英里。

That is nearly entirely domestic, even quasi-local asset. That is also a very, very tiny fragment of the value of Copart's auction overall and of our business overall. At the other extreme, consider a lively damaged hail car or a vehicle we have consigned to us from a rental car company that is in -- that is at the end of its rental fleet life. That vehicle then is valuable to a host of different places, including locals, including folks in other states and including folks in Poland and Lithuania and otherwise. That vehicle then is subject to the specific substitutes available to each of those buyers.

這幾乎完全是國內資產，甚至是準國內資產。這也是 Copart 拍賣總價值和我們整體業務價值中非常非常小的一部分。另一個極端是，想像一輛被冰雹損壞的汽車，或者一輛我們從租車公司委託給我們的、已經到了租賃車隊壽命末期的車輛。該車輛對於許多不同的地方來說都很有價值，包括當地人、其他州的人們、波蘭、立陶宛等國的人們。該車輛將根據每位買家可獲得的特定替代品而定。

So in the US, assuredly, those buyers are now facing cars that will cost more on the new market courtesy of tariffs, at least on a portion of the parts. For our international buyers, they, of course, will have to bid against those domestic buyers as well. So they have to compete for that vehicle.

因此，在美國，這些買家現在肯定會面臨汽車在新市場上因關稅而價格更高的問題，至少部分零件的價格更高。對我們的國際買家來說，他們當然也必須與國內買家競價。所以他們必須爭奪那輛車。

The individual circumstances any given country. I think we tend to find that the biggest purchasing countries for Copart vehicles our fast-growing economies that don't have local domestic auto production. So their alternatives aren't fantastic, right? They can buy vehicles from other salvage markets. They can buy cars from the UK, subject to the right-hand, left-hand drive problem. They can buy cars from Copart Germany and Spain, and there are certainly other sources of vehicles like it.

任何特定國家的個別情況。我認為我們傾向於發現 Copart 汽車的最大購買國是那些沒有本地汽車生產的快速成長的經濟體。那麼他們的替代方案並不好，對嗎？他們可以從其他廢品市場購買車輛。他們可以從英國購買汽車，但會遇到右側駕駛和左側駕駛的問題。他們可以從德國和西班牙的 Copart 購買汽車，當然還有其他類似的車輛來源。

But it's a long-winded way of saying that it varies very much by car, but it's ultimately an auction. So whatever your highest and best use is, whatever the highest and best uses for that given vehicle, anywhere in the world, we'll generally find it.

但這是一種冗長的說法，它因汽車而異，但最終還是一場拍賣。因此，無論您的最高和最佳用途是什麼，無論該車輛的最高和最佳用途是什麼，在世界任何地方，我們通常都能找到它。

(Operator Instructions) Jash Patwad, JPMorgan Chase.

（操作員指示） Jash Patwad，摩根大通。

I was just curious about the trends in G&A spend. Typically, we've seen a seasonal sequential uptick in the third quarter. But this time around, the trends appear flat, was the stability driven by the reduction of some onetime expenses related to projects you've alluded to previously. And is the 3Q run rate a new baseline or other additional onetime expenses that are yet to roll off? Thanks and I have a follow-up.

我只是對 G&A 支出的趨勢感到好奇。通常，我們會看到第三季出現季節性連續上升。但這一次，趨勢似乎持平，這種穩定性是由於您之前提到的與專案相關的一些一次性費用的減少所推動的。第三季的運行率是新的基準還是其他尚未發生的額外一次性費用？謝謝，我會跟進。

Sure, Josh. I'll take that. With respect to G&A, I would say year-over-year, the main driver of the increase was attributable to our continued investment in the sales force within Purple Wave. The rest was really just some minor investments across our platform services to support our global organization. We don't necessarily look to that or provide guidance in terms of whether or not that is a steady-state number.

當然，喬希。我會接受的。關於一般及行政費用，我想說，與去年同期相比，成長的主要驅動力歸因於我們對 Purple Wave 銷售隊伍的持續投資。其餘的實際上只是我們平台服務上的一些小額投資，以支持我們的全球組織。我們不一定會關注這一點，也不一定會就這是否是一個穩定數字提供指導。

We make investments from time to time in projects and solutions that we think and believe will drive greater operating leverage for the business in the future. And so I wouldn't point you to that as being a run rate, but each individual investments that we do make into G&A, we do take an investment mindset approach to it and ensure that there are tangible returns that we will achieve, whether it's through cost reduction efficiency or other opportunities for the business more generally.

我們會不時對我們認為並相信將在未來為企業帶來更大經營槓桿的專案和解決方案進行投資。因此，我不會將其作為運行率，但是，對於我們對一般和行政費用進行的每一項投資，我們都會採取投資心態，並確保我們將獲得切實的回報，無論是通過降低成本提高效率還是更廣泛的業務機會。

Understood. That's helpful. And just as a follow-up, reflecting on a few quarters back, based on Jeff's commentary, I was under the impression that despite the increasing number of underinsured and uninsured motorists on the road, these vehicles would eventually end up at Copart auctions as it seemed to be the most economically efficient outcome.

明白了。這很有幫助。作為後續，回顧幾個季度前的情況，根據傑夫的評論，我的印像是，儘管道路上未投保和未投保的駕駛者數量不斷增加，但這些車輛最終都會在 Copart 拍賣會上進行拍賣，因為這似乎是最經濟有效的結果。

However, based on your comments today, it appears that's not the case. Could you provide some insight into the channels that are effectively facilitating the scrappage or potentially the remarketing of these vehicles?

然而，根據您今天的評論，情況似乎並非如此。您能否提供一些關於有效促進這些車輛報廢或潛在再行銷的管道的見解？

Yes, I think that's a fair question. I think the vehicles, in many cases, could or should still end up back at Copart via our Cash for Cars business, which purchases vehicles directly from consumers; our Copart Dealer Services business. I think in some cases, the policyholders will ultimately monetize their vehicles by trading and even a damaged car to a local dealer, independent franchise or otherwise. So we do have multiple shots on goal, so to speak, to earn the right to sell that car.

是的，我認為這是一個公平的問題。我認為，在許多情況下，這些車輛可能或應該最終透過我們的「Cash for Cars」業務回到 Copart，該業務直接從消費者那裡購買車輛；我們的 Copart 經銷商服務業務。我認為在某些情況下，保單持有人最終會透過將他們的車輛甚至損壞的汽車交易給當地經銷商、獨立特許經營店或其他地方來將他們的車輛貨幣化。因此，可以說，我們確實有多次機會來贏得銷售該車的權利。

I do, and we continue to argue that we are the right liquid marketplace to dispose of that vehicle wherever it ends up, but it's certainly most efficient, right? It wouldn't be an immediate consignment. If you, Jash, God forbid, were in a car accident tomorrow and notified your carrier right away, we might be selling that car two weeks from now, depending on the state in which you live.

我確實如此，而且我們繼續爭辯說，無論車輛最終流向何處，我們都是處理該車輛的正確流動市場，但這肯定是最有效的，對嗎？這不會是立即發貨。如果您，賈什，但願不會發生，明天遭遇車禍並立即通知您的承運人，我們可能會在兩週後出售那輛車，具體取決於您所居住的州。

In some cases, other states take far longer than that. But the point is that there's an immediacy to that consignment that simply won't exist if that vehicle does not enter the traditional insurance company funnel, so to speak.

在某些情況下，其他州所需的時間要長得多。但關鍵在於，如果車輛不進入傳統的保險公司管道，這種托運根本不存在即時性。

Appreciate it. If I could just sneak one more in. There are several potential legislative actions being considered in various states that could potentially cap storage fees, which I believe would be beneficial for Copart. And on the other hand, there's also legislative actions being considered that could raise the threshold for total losses, which might be a downside. Could you walk us through how these changes, if applied on a broader basis, could impact Copart's business model?

非常感謝。如果我能再偷偷溜進去一個就好了。各州正在考慮採取幾項潛在的立法行動，可能會限制倉儲費用，我認為這對 Copart 有利。另一方面，正在考慮的立法行動可能會提高總損失的門檻，這可能是一個不利的方面。您能否向我們介紹一下，如果這些變化得到更廣泛的應用，將如何影響 Copart 的商業模式？

Yes, I think your observation about storage is likely accurate that the -- I think the legislation you have in mind would cap what inbound facilities probably unaffiliated repair shops can charge insurance companies for storing vehicles. In that case, I think that benefits the insurance industry more broadly. I know naturally, we -- in some sense, we compete against all alternatives for a car. We compete against it being sold elsewhere. We compete against the car being repaired.

是的，我認為您對存儲的觀察可能是正確的——我認為您所考慮的立法將限制入站設施（可能是非附屬修理廠）可以向保險公司收取的車輛存儲費用。在這種情況下，我認為這將為保險業帶來更廣泛的利益。我自然知道，從某種意義上說，我們與所有汽車替代品競爭。我們與其他地方銷售的產品競爭。我們與正在修理的汽車競爭。

But in this case, reducing the cost of storage, I think, would affirmatively benefit the insurance companies. We likely would equip them with the tools to still move quickly to resolve those claims as fast as possible. There's a lot of value in shortening the intervals by which insurance companies manage their claims.

但在這種情況下，我認為降低儲存成本肯定會為保險公司帶來好處。我們可能會為他們提供工具，以便他們能夠迅速採取行動，盡快解決這些索賠。縮短保險公司管理理賠的間隔具有很大的價值。

To your second question about the total loss thresholds, in general, I think our belief is that our principled approach to this that the insurance companies shouldn't make the best total loss decisions for their business. In many cases, we think they aren't totaling enough vehicles, right, for a host of reasons that we've talked about on prior calls.

對於您關於總損失門檻的第二個問題，總的來說，我認為我們的原則是，保險公司不應該為其業務做出最佳的總損失決策。在很多情況下，我們認為他們沒有將足夠的車輛報廢，對吧，原因有很多，我們在之前的電話會議中已經討論過了。

Legislation in the past has generally been such that the insurance companies are required to total a car above a certain repair threshold. That's, I think, what you're referring to in this case. In most cases, insurance companies should economically total cars at lower thresholds than the statutorily required thresholds. So we think that left to its own devices, that should not have a huge distortion on the decisions that an insurance company may make.

過去的立法一般都是這樣的，要求保險公司賠償超過一定維修限額的汽車。我想，這就是您在本案中所指的。在大多數情況下，保險公司應該以低於法定要求的門檻來經濟地計算汽車總損毀金額。因此我們認為，如果任其發展，這應該不會對保險公司所做的決策造成巨大的扭曲。

If on the other hand, you had mandatory repair legislation, which, by and large, did not exist in the United States, such that the insurance companies were required to repair a vehicle for a certain percentage threshold that could alter the picture somewhat. We think the insurance industry is certainly motivated enough to want to preserve the discretion to make that decision on their own as opposed to allowing the states to dictate that decision for them. So we don't think that's a meaningful distortion, but we certainly do track that aspect of our business.

另一方面，如果有強制維修立法（這在美國基本上不存在），即要求保險公司以一定比例的門檻來維修車輛，這可能會在一定程度上改變情況。我們認為，保險業肯定有足夠的動力來保留自行做出決定的自由裁量權，而不是讓各州為他們做出決定。因此，我們不認為這是一種有意義的扭曲，但我們確實會追蹤我們業務的這一方面。

And with that, there are no further questions at this time. I'd like to pass the call back to Jeff Liaw for closing remarks.

至此，目前沒有其他問題了。我想將電話轉回給 Jeff Liaw 來做最後一次演講。

Great. Thank you, everybody. We'll talk to you next quarter.

偉大的。謝謝大家。我們將在下個季度與您交談。

Thank you. And with that, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.

謝謝。今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路。