Ritchie Bros. Reports First Quarter 2017 Results

Ritchie Bros. Auctioneers Inc. reports results for the three months ending March 31, 2017.

📅   Fri May 05, 2017 - National Edition



Highlights

  • Q1 2017 revenues decreased 6% to $124.5 million compared to Q1 2016, primarily due to lower auction volumes in Western Canada and fewer large dispersals
  • Record first quarter Revenue Rate 1 of 13.8 % achieved during Q1 2017
  • $2.3 million of current income tax expense recognized in Q1 2017 related to an increase in uncertain tax positions
  • Q1 2017 net income attributable to stockholders decreased 65% compared to Q1 2016; adjusted net income attributable to stockholders2 (non-GAAP measure) decreased 57% compared to Q1 2016.
  • Still included in adjusted performance were $8.6 million of acquisition-related costs booked during the quarter, primarily related to the pending acquisition of IronPlanet Holdings, Inc. ("IronPlanet"), and $6.7 million of interest on the $500.0 million of senior unsecured notes (the "Notes") that the Company issued in December 2016, which are being held in escrow
  • $134.5 million of net cash provided by operating activities during Q1 2017

Ritchie Bros. Auctioneers Incorporated (NYSE & TSX: RBA, the "Company" or "Ritchie Bros.") reports results for the three months ended March 31, 2017. During the first quarter, the Company generated $124.5 million of revenue, a 6% decrease compared to revenues of $131.9 million in the first quarter last year, and net income attributable to stockholders for the first quarter of $10.4 million, a 65% decrease compared to $29.4 million in the same period last year. Diluted earnings per share ("EPS") attributable to stockholders were $0.10, a 63% decrease compared to $0.27 in the same quarter last year. A non-recurring charge of $2.3 million of current income tax expense was recognized during the quarter related to an increase in uncertain tax positions. Removing the impact of this income tax charge, diluted adjusted EPS attributable to stockholders3 (non-GAAP measure) during the first quarter of 2017 was $0.12, a 56% decrease compared to $0.27 in the year ago quarter. $8.6 million of before-tax acquisition-related costs are included in both GAAP and adjusted (non-GAAP) first quarter 2017 results.

"Gross Auction Proceeds were challenged during the first quarter of 2017 primarily due to the oil and gas dislocation surge receding in Western Canada, and fewer large dispersals – such as the Grande Prairie auction that occurred in the first quarter last year. Our U.S. team generated solid performance, where revenue grew modestly even with a difficult comp from a very robust Q1 2016. On a positive note, we achieved a record first quarter revenue rate driven by strong pricing, good execution and good rate performance from our underwritten transactions. Our team demonstrated strong operational agility and did a disciplined job of controlling variable operational expenses. Also, EquipmentOne, Ritchie Bros. Financial Services, Mascus and Private Treaty achieved meaningful revenue growth, reinforcing that our diversification strategy is taking hold," said Ravi Saligram, CEO of Ritchie Bros.

Mr. Saligram added, "Our team is also excited about the acquisition of IronPlanet and is systematically completing various work streams of integration planning to be ready for Day One of the combined business. Our discussions with U.S. regulatory authorities are well underway, and we continue to target closing the transaction by the end of the second quarter."