HomeMy WebLinkAboutCopart Statement of Operation 090722Co art Statement of Operation
Copart, Inc., ("Copart"), and its subsidiaries, provide cutting edge asset liquidation services
("Copart Asset Services") to institutional, commercial, and private owners (collectively "Sellers") of
used undamaged or damaged, operable and inoperable, vehicles, trailers, watercraft, and powersports,
industrial and construction machinery and equipment (collectively, "Assets"). Most Sellers are insurance
companies, licensed dealers, financial institutions, charities, municipalities, and fleet operators. Copart
Asset Services include short-term storage and sale of Assets, and ancillary receiving, shipping, lien sale
and administrative activities. All Assets are liquidated intact, meaning no dismantling, draining of fluids,
crushing, or sale of parts occurs at a Copart facility ("Facility").
A typical Facility will consist of an office building, customer parking, a shipping and receiving
area, and a short-term storage area for Assets. After being received at a Facility, Assets are inspected,
photographed, catalogued, and placed in ground -level short-term storage designed for quick retrieval.
Assets are never stacked, and remain in short-term storage for an average of only 50 to 60 days.
After being placed in short-term storage, Assets are listed for sale through Copart's proprietary
online auction -style website and mobile apps for purchase only by Copart registered members
(collectively, "Members"). Members are primarily licensed dealers, dismantlers, rebuilders, and
exporters, and in some cases are end users. All offers are submitted and accepted electronically, without
the use of a live auctioneer. Members are provided the opportunity to inspect Assets at a Facility,
although most Asset inspections are limited to viewing images and information made available online.
Members may electronically submit preliminary offers from (a) anywhere in the world via a personal
computer or mobile device with internet access (each, a "Remote Online Device"), or (b) a limited
number of computer kiosks located at the Facility. The high preliminary offer is carried over to the online
virtual sale, during which Members may submit offers electronically only from a Remote Online Device.
Assets are sold to the Member with the highest offer ("Buyer"), who then arranges for pickup
and transportation of their Assets from a Facility. Payment for sold Assets may be made electronically,
via wire -transfer, or in person at a Facility. Titles to sold Assets are either picked up by the Buyer along
with the sold Assets, or mailed by Copart to the Buyer.
4812-1280-2098,v. 2
Version Date 12/14/18