- $4.3 billion of equipment was
sold by Ritchie Bros. in 2016
- $2.1 billion of equipment sold to
online buyers, 49% of total sales
- 17%+ growth in equipment sold through EquipmentOne – Ritchie
Bros.' online marketplace
- $107.2 million returned to
shareholders through dividends and share repurchases during
2016
(All figures are presented in U.S. dollars, unless otherwise
noted)
VANCOUVER, Dec. 23, 2016 /CNW/ - Ritchie Bros. Auctioneers
Incorporated (NYSE and TSX: RBA, "the Company"), the world's
largest industrial auctioneer, sold approximately $4.33 billion of equipment through 356 unreserved
auctions and its online equipment marketplace during 2016. This is
a new annual record for the Company, and represents a 2% increase
in gross auction proceeds (GAP) compared to 2015.
"During 2016 we made strategic investments and acquisitions to
better position our business for future growth, including the
addition of an equipment sales listing offering, obtaining full
ownership of Ritchie Bros. Financial Services, key bolt-on
acquisitions to bolster our strength in certain regions and
sectors, and the announcement of our impending acquisition of
IronPlanet. All of these initiatives have built a stronger
platform for our customers and shareholders as we expand our
service offering and the solutions we provide equipment
sellers.
"Mr. Saligram continued: "The two percent GAP growth we recorded
this year was negatively affected by lower equipment values
relative to last year, though lot volume, buyers, consignors and
registered bidders all grew substantially from 2015, indicating
strong operational growth. Lot volumes grew nearly 13%, the
number of buyers and consignors grew by 12%, and the number of
registered bidders grew by 8%. Regionally, our Canadian
business led growth, and achieved yet another record year."
During the fourth quarter of 2016, the Company generated gross
auction proceeds of $1.0 billion, a
decrease of 9% compared to the fourth quarter GAP achieved last
year. On a constant currency¹ basis, GAP declined 8.5% during
the fourth quarter of 2016 compared to the fourth quarter of
2015. As previously discussed on Ritchie Bros.' Q3 2016
earnings call, auction timing differences did affect the quarter,
with both the fall Montreal and
Columbus auctions of 2016
occurring in the third quarter this year, rather than in the fourth
quarter as they did in 2015.
Ritchie Bros. conducted its final unreserved auction of 2016 on
Wednesday, December 21 in
St. Louis, Missouri. The
Company plans to release its full audited financial results for
2016 before market open on February
20, 2017.
Gross Auction Proceeds:
(in U.S. $ billions)
|
|
2016
|
2015
|
Growth /
(Decline)
|
Constant currency
growth1
(using the same foreign exchange rates as 2015 period)
|
First quarter (3
months ended March 31)
|
$
|
1.020
|
$
|
0.955
|
7%
|
9%
|
Second quarter (3
months ended June 30)
|
$
|
1.276
|
$
|
1.262
|
1%
|
3%
|
Third quarter (3
months ended September 30)
|
$
|
0.998
|
$
|
0.895
|
12%
|
12%
|
Fourth quarter (3
months ended December 31)
|
$
|
1.033
|
$
|
1.135
|
(9%)
|
(9%)
|
Full Year
|
$
|
4.328
|
$
|
4.247
|
2%
|
3%
|
|
|
|
|
|
|
|
|
|
|
1 To provide investors with a better understanding of
organic growth, which removes the impact of foreign exchange rate
changes relative to the prior year, we have broken out both
reported (FX impacted) GAP growth and organic (FX normalized) GAP
growth results. Ritchie Bros. defines constant currency growth as
an improvement in current year performance compared to prior year
performance, where current year performance is measured using
foreign exchange Rates consistent with those of the comparative
year ago period. The Company believes that using organic growth
information is important in evaluating the operational health of
the business.
Industrial Auction Metrics:
|
|
|
|
|
|
|
|
(in U.S. $
billions)
|
|
2016
|
|
2015
|
|
Better/
(Worse)
|
Number of industrial
auctions
|
|
233
|
|
|
229
|
|
2%
|
Registered
Bidders
|
|
549,000
|
|
|
507,500
|
|
8%
|
Buyers
|
|
138,500
|
|
|
123,700
|
|
12%
|
Consignors
|
|
53,500
|
|
|
47,600
|
|
12%
|
Lots
|
|
399,000
|
|
|
354,500
|
|
13%
|
Average Industrial Auction Metrics:
|
|
|
|
|
|
|
|
(in U.S. $
billions)
|
|
2016
|
|
2015
|
|
Better/
(Worse)
|
Gross Auction
Proceeds (US$ millions)
|
|
$ 16.8
|
|
$
|
16.8
|
|
n.c.
|
Registered
Bidders
|
|
2,350
|
|
|
2,200
|
|
7%
|
Buyers
|
|
590
|
|
|
540
|
|
9%
|
Consignors
|
|
225
|
|
|
200
|
|
13%
|
Lots
|
|
1,710
|
|
|
1,540
|
|
11%
|
US performance
Ritchie Bros. sold approximately US$2.1
billion of equipment and trucks in the United States during 2016 – unchanged from
US$2.1 billion in 2015. Certain
regions of the US generated strong performance, including:
- A 58% increase in GAP sold in Ohio
- A 50% increase in GAP sold in Las
Vegas
- A 34% increase in GAP sold in Minnesota
- A 23% increase in GAP sold in Arizona
A number of Company records were broken in the US this year,
including:
- On March 17 – 18, 2016, Ritchie
Bros. sold more than US$46 million of
equipment and trucks at its largest-ever Denver, Colorado auction. The two-day auction
also set new Denver site records
for attendance (5,950+ bidders) and items sold (3,950+).
- On August 17, 2016, Ritchie Bros.
sold US$21 million of assets at its
Tipton, California auction. This
was the largest-ever auction held at the Tipton auction site.
- On September 28-29, 2016, the
Company held its largest ever two-day auction in the United States, at its Columbus, Ohio auction site. More than
US$76 million of assets were sold at
this auction, including US$61 million
on the auction's first day – the largest single day Ritchie Bros.
has ever achieved at an auction in the U.S.
Largest year ever in Canada
Ritchie Bros. sold more than
CA$1.7 billion (US$1.3+ billion) of equipment and trucks in
Canada during 2016 – a 6% increase
from 2015, and a new record for the Company's Canadian
operations. A number of other Company records were broken in
Canada this year, including:
- On March 14 -15, 2016, Ritchie
Bros. held its largest-ever Grande
Prairie, Alberta auction, selling more than CA$62 million
(US$46+ million) of equipment on behalf of 250+ consignors. The
two-day auction attracted 7,150+ registered bidders, which was also
a new site record.
- On March 30, 2016, Ritchie Bros.
held its largest-ever 'on-the-farm' offsite agricultural auction,
selling more than CA$24 million (US$19+ million) of equipment and
real estate from a consignor's farm in Bonanza, Alberta.
- The first ever 5-day auction in Canada, held in Edmonton, AB, April
26 – 30, 2016. This massive CA$240+ million (US$191+
million) auction was Ritchie Bros.' largest auction ever held in
Canada, and the second largest in
the Company's history. The sale attracted more than 16,700 bidders
from 55 countries, and sold over 10,200+ lots. 84% of the assets
sold in this auction went to Canadian buyers, including 46% sold to
buyers within the province of Alberta.
- On July 21-22, 2016, Ritchie
Bros. held its first two-day Lethbridge,
AB auction, selling CA$24+ million (US$18+ million) of
equipment and other assets – a new record for the site.
- On September 28-29, 2016, Ritchie
Bros. sold more than CA$39 million (US$30+ million) of equipment
and other assets at its auction in Toronto, ON. This was largest auction ever
held at the Toronto auction site,
and the second time in 2016 the site set new sales records.
International participation at auctions
International
bidders are an important element of Ritchie Bros. auctions, as they
generate global market pricing. During 2016, approximately 16% of
GAP was generated by international buyers (successful bidders
located outside the country of the sale), consistent with 16% in
2015. Approximately 9% of GAP generated in the United States was sold to international
buyers, consistent again with 9% in 2015.
Online sales
Ritchie Bros. attracted record online
bidder registrations and sold approximately $2.1 billion of equipment, trucks and other
assets to online buyers at Ritchie Bros. auctions and EquipmentOne
customers in 2016, a 10% increase over 2015 and the highest amount
ever sold online by the Company in one year.
EquipmentOne sells approx. $137+ million in Gross Transaction
Value in 2016
EquipmentOne, the Company's online equipment
marketplace, has generated more than US$137
million in Gross Transaction Value (GTV) so far this year,
representing 17%+ growth over last year.
Ritchie Bros. Financial Services finances over
$285 million in 2016
Ritchie
Bros. Financial Services (RBFS) provided over US$285 million of financing to equipment buyers
so far this year, a new record for this growing business and a
28.6% increase in financing activity compared to 2015. RBFS
works with select lending partners to find financing solutions for
customers purchasing equipment, including loans and lease-to-own
programs. RBFS does not utilize Company capital in its financing
activities. During 2016, Ritchie Bros. purchased the minority
interest of RBFS, and now owns 100% of the business.
Executive and Board changes during 2016
Several
important executive and board changes were announced during the
year, including the appointment of Marianne
Marck as Chief Information Officer, and Becky Alseth as Chief Marketing Officer.
The Company also welcomed Sarah
Raiss as a director on the board.
US$107.2 million return
to shareholders
Ritchie Bros. increased its quarterly cash
dividend by 6% in August 2016 to
$0.17 per share, and paid
shareholders $70.5 million in total
dividends during 2016. During the year, Ritchie Bros. also
repurchased and cancelled 1.46 million shares, for a total cost of
$36.7 million.
Corporate development activities
During 2016, Ritchie
Bros. completed and announced several important acquisitions, to
reach new customer segments and cater to a broader set of customer
needs.
- On February 19, 2016, the Company
announced its acquisition of Mascus – one of the world's leading
online equipment listing services, adding to Ritchie Bros. menu of
sales solutions for equipment sellers.
- On July 12, 2016, Ritchie Bros.
acquired the minority interest of Ritchie Bros. Financial Services,
providing the Company with 100% ownership of its equipment finance
brokerage business.
- Also on July 12, 2016, Ritchie
Bros. announced that it has made a strategic minority investment in
Machinio – a global search engine for finding, buying and selling
equipment.
- On August 2, 2016, the Company
acquired Petrowsky Auctioneers, an industrial auctioneer with a
strong presence in the New England region of the U.S.
- On August 29, 2016, Ritchie Bros.
announced its impending acquisition of IronPlanet – a leading
online marketplace for used heavy equipment, for $758.5 million.
- On November 15, 2016, the Company
acquired Kramer Auctions, a boutique agricultural auctioneer that
caters to the needs of farming communities in Canada's prairie provinces.
Upcoming auctions
There are currently 78 unreserved
auctions already scheduled for the 2017 Ritchie Bros. auction
calendar at www.rbauction.com, including:
- North Franklin, Connecticut on
January 26, 2017 (a Petrowsky
Auctioneers event)
- Phoenix, Arizona on
February 9, 2017
- Donington Park, U.K. on February
14 – 15, 2017
- Houston, Texas on February 15 – 16, 2017
- Tipton, California on
February 17, 2017
- Orlando, Florida (a five-day
auction) on February 20 – 24,
2017
- Moerdijk, The Netherlands on
February 22 – 23, 2017
- Narita, Japan on February 26, 2017 (a Japan Super Auction
event)
- Toronto, Ontario on
February 27 – 28, 2017
- Dubai, UAE on February 27 – 28, 2017
All annual and fourth quarter figures contained in this news
release are preliminary, and are subject to adjustment as final
results are processed.
About Ritchie Bros.
Established in 1958, Ritchie
Bros. (NYSE and TSX: RBA) is the world's largest industrial
auctioneer, and one of the world's largest sellers of used
equipment for the construction, transportation, agriculture,
energy, mining, forestry and other industries. Ritchie
Bros.TM asset management and disposition solutions
include live unreserved public auctions with on-site and online
bidding; EquipmentOneTM, an online
auction marketplace; Mascus, a global online equipment
listing service; private negotiated sales through Ritchie Bros.
Private Treaty; and a range of ancillary services, including
financing and leasing through Ritchie Bros. Financial Services.
Ritchie Bros. has operations in 18 countries, including 45 auction
sites worldwide.
Forward looking statements
This press release may
contain forward-looking information. Such forward looking
information involves material assumptions, risks and uncertainties,
certain of which are beyond the control of Ritchie Bros. Such
assumptions, risks and uncertainties include, without limitation,
factors influencing the supply of and demand for used equipment,
fluctuations in market conditions and values of used equipment,
seasonal and periodic variations in operating results, actions of
competitors, the success of the Company's new initiatives, economic
and other conditions in local, regional and global markets, and
other risks and uncertainties as detailed from time to time in the
Company's securities filings. Ritchie Bros.' actual achievements
could differ materially from those expressed in, or implied by,
this forward-looking information and, accordingly, no assurances
can be given that any of the events anticipated by the
forward-looking information will transpire or occur. Any
forward-looking information is made as at the date of this press
release and Ritchie Bros. does not undertake any obligation to
update publicly or to revise any of the included forward-looking
information, except as may be required by applicable securities
laws.
SOURCE Ritchie Bros. Auctioneers