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Show Notes

(00:02:32) - (First question) - An overview of Copart

(00:04:16) - The size and scope of the market

(00:04:52) - The process of a vehicle entering into Copart’s system

(00:06:36) - The other side of the marketplace, who buys from Copart

(00:08:16) - Selling cars whole or dismantling and how this has changed from the early days of the business

(00:09:55) - An overview of Willis Johnson’s career, forming Copart and his involvement today

(00:13:26) - The financial structure of the business in the early days

(00:14:59) - Copart’s differences from the competition

(00:18:42) - Biggest drivers of supply. Accidents, natural disasters, wear and tear

(00:22:12) - Cashflow flow through, the economics for Copart

(00:24:08) - Associated costs with regards to the sale and movement of vehicles

(00:26:12) - Average inventory numbers throughout the year

(00:27:32) - The margin profile of the business on a normalized basis

(00:29:29) - A breakdown of the CapEx budget on a yearly basis

(00:33:42) - The major drivers of growth for Copart

(00:37:16) - The buyback history, stated goal and philosophy on dividends

(00:38:38) - Historical and potential future risks to the business

(00:42:00) - The insurance companies’ opinion of the business, net positive or net negative

(00:43:37) - The framework investors use when valuing this business

(00:47:17) - Lessons learned from the research and analysis of Copart