Ritchie Bros. Q1 net earnings at $18 million

| Published on May 3, 2012

Ritchie Bros. Auctioneers announces net earnings and adjusted net earnings for the three months ended March 31, 2012 of $18.0 million, or $0.17 per diluted share. This compares to adjusted net earnings of $13.6 million, or $0.13 per diluted share, for the three months ended March 31, 2011, representing a 32-percent increase in adjusted net earnings.

Adjusted net earnings is a non-GAAP financial measure and is defined below. The company’s auction revenues for the first quarter of 2012 grew 14 percent to $101.3 million compared to $88.5 million for the same period in 2011. The company conducted 38 unreserved industrial auctions in nine countries throughout North America, Europe, the Middle East, Central America, and Australia during the first quarter of 2012. All dollar amounts are in U.S. dollars.

Gross auction proceeds and auction revenues
For the three months ended March 31, 2012, gross auction proceeds were $865 million, 2-percent higher than the same period in 2011.Gross auction proceeds is a non-GAAP financial measure and is defined below. The company’s auction revenue rate (auction revenues as a percentage of gross auction proceeds) was 11.71 percent during the three months ended March 31, 2012 compared to 10.39 percent in the same period in 2011. The Company’s revised fee structure, which came into effect on July 1, 2011, contributed $10.8 million to auction revenues for the first quarter of 2012. The company’s at-risk business, comprised of guarantee and purchase contracts, represented 29 percent of gross auction proceeds in the first quarter of 2012 (2011: 32 percent).

Net earnings for the quarter

 

Three months ended
March 31, 2012

Three months ended
March 31, 2011

Net Earnings

$ 18.0 million

$ 16.6 million

Earnings per diluted share

$ 0.17

$ 0.16

Adjusted net earnings

$ 18.0 million

$ 13.6 million

Adjusted earnings per diluted share

$ 0.17

$ 0.13

Summary comments
“We are pleased to have achieved record first quarter gross auction proceeds and auction revenues during the first quarter; our performance was in line with our plans,” said Peter Blake, Ritchie Bros. CEO, in a press release. “During the quarter, we saw strong equipment pricing at our auctions, and competition remained intense for good quality, low hour used equipment. This was reflected in our at-risk business, which remained above historic levels. We saw improving optimism among our customers, and ongoing original equipment manufacturer backlogs have created pent-up demand for new and near-new equipment, driving strength in the used equipment market. We remain confident that our performance for 2012 is on track with our plans.”

Blake continued: “Our strategic initiatives are also progressing well as we continue our efforts to develop innovative solutions to enable the world’s builders to exchange equipment easily and confidently. In the first quarter, we completed a key strategic initiative, our organizational realignment, and we are already seeing the positive results of this.”

Quarterly dividend
The company also announces the declaration of a quarterly cash dividend of $0.1125 per common share payable on June 8, 2012 to shareholders of record on May 18, 2012.

Online bidding statistics
Ritchie Bros. sold over $275 million of equipment, trucks, and other assets to online bidders during the first quarter of 2012, representing a 23-percent increase compared to the same period in 2011 (first quarter of 2011: approximately $223 million). Internet bidders continued to comprise more than 50 percent of the total bidder registrations at Ritchie Bros. industrial auctions during the first quarter of 2012. Since launching its real-time online bidding service in 2002, the company has now sold more than $5.5 billion worth of trucks, equipment, and other assets to online bidders, confirming Ritchie Bros.’ position as the world’s largest seller of used equipment and trucks to online buyers.

Website statistics
The Ritchie Bros. website
attracted roughly 1.3 million unique visitors in the first quarter of 2012, a 30-percent increase compared to the same period last year. Unique non-English speaking visitors increased 30-percent in the first quarter of 2012 compared to the first quarter of 2011.

 

 

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