Ritchie Bros. Auctioneers Announces Annual Results
Ritchie Bros. Auctioneers Incorporated announced net earnings for the year ended Dec. 31, 2012, of $79.5 million, or $0.74 per diluted share, and adjusted net earnings of $82.6 million, or $0.77 per diluted share. This compares to net earnings of $76.6 million, or $0.72 per diluted share, and adjusted net earnings of $73.6 million, or $0.69 per diluted share, for the year ended Dec. 31, 2011, representing a 12 percent increase in adjusted net earnings. Adjusted net earnings is a non-IFRS financial measure.
Excluding the acquisition and operational costs related to AssetNation, the growth in the company’s adjusted net earnings would have been 17 percent in 2012. The company’s auction revenues for the year ended Dec. 31, 2012, grew 11 percent to $438.0 million compared to $396.1 million for the same period in 2011.
For the three months ended Dec. 31, 2012, net earnings were $22.1 million or $0.21 per diluted share and adjusted net earnings were $22.4 million or $0.21 per diluted share compared to net earnings and adjusted net earnings of $26.8 million or $0.25 per diluted share for the same period in 2011, representing a 16 percent decrease in adjusted net earnings.
Gross Auction Proceeds and Auction Revenues
For the year ended Dec. 31, 2012, gross auction proceeds were a record $3.9 billion, 5 percent higher than in 2011. Gross auction proceeds is a non-IFRS financial measure. The company’s auction revenue rate (auction revenues as a percentage of gross auction proceeds) was 11.
21 percent during the year ended Dec. 31, 2012, compared to 10.66 percent in 2011. The company’s at risk business, which is comprised of guarantee and purchase contracts, represented 32 percent of gross auction proceeds in 2012 (2011: 36 percent).
For the three months ended Dec. 31, 2012, gross auction proceeds were $1.0 billion, 4 percent lower than the same period in 2011. The company’s auction revenue rate was 11.71 percent during the three months ended Dec. 31, 2012, compared to 10.91 percent in the same period in 2011.
“2012 was another year of volatility in the used equipment market. During the year, we saw competition remain strong, used equipment prices rise then flatten, and ultimately the supply and demand for used equipment became more balanced,” said Peter Blake, Ritchie Bros. CEO. “Our at-risk business experienced wide variations in performance but, for the year, it performed within our expectations. We reached some great milestones during the year, beyond achieving the highest ever gross auction proceeds of $3.9 billion, which included significant gains in our online presence with over 5 million unique visitors to our Web site, $1.3 billion in sales to internet bidders at our auctions and over $1 billion of volume at our Canada auctions. These all contributed to another growth year in gross auction proceeds. We felt 2012, even with adjusted net earnings growth of 17 percent excluding costs associated with AssetNation, was not an optimal year. If we had executed we would have had an even stronger year. This has focused us on executing specific strategies in 2013.
“Looking forward to 2013, we remain committed to our strategic pillars Grow-Add-Perform which will help us focus on executing our 2013 plan. We believe the used equipment marketplace has evolved into a more familiar environment with improving prospects for growth over the long term. We have made significant strategic investments in our infrastructure, people and processes and now it is about execution to ensure we continue to be the trusted source for the world’s builders to easily and confidently exchange equipment.”
On Jan. 22, 2013, the company launched a new online equipment marketplace called Richie Bros. EquipmentOne. Complementary to the company’s flagship unreserved auction business, Ritchie Bros. EquipmentOne is a secure online marketplace for equipment and materials. Buyers and sellers can use Ritchie Bros. EquipmentOne to negotiate, complete and settle their transactions in a safe and transparent environment. Core marketplace functionality has now been released and enhancements are being made on an ongoing basis; the next major release and full commercial launch is scheduled for the second quarter of 2013.
The company also announced on Jan. 21, 2013, the declaration of a quarterly dividend of $0.1225 per common share payable on March 8, 2013, to shareholders of record on Feb. 15, 2013. In 2012, the company paid approximately $50 million in regular cash dividends, an 8 percent increase over 2011.
Online Bidding Statistics
Ritchie Bros. sold more than $1.3 billion of equipment, trucks and other assets to online buyers during 2012, representing an 18 percent increase from 2011. Internet bidders continued to comprise over 60 percent of the total bidder registrations at Ritchie Bros. industrial auctions in 2012.
Web Site Statistics
The Ritchie Bros. Web site attracted roughly 5.6 million unique visitors in 2012, a 40 percent increase compared to 2011.
For more information, visit www.rbauction.com.