Ritchie Bros. Auctioneers Incorporated is reporting results for the three months and year ended December 31, 2014. During the quarter, the Company generated $138.5 million of revenue and adjusted net earnings1 of $33.5 million, an increase of 10% compared to adjusted net earnings of $30.3 million in the fourth quarter last year. Diluted adjusted earnings per share were $0.31, a 10% increase compared to $0.28 in the same quarter last year. Adjusting items in the fourth quarter of 2014 are comprised of $5.5 million ($4.2 million after-tax) of costs related to the Company’s previously announced management reorganization.
Net earnings for the fourth quarter of 2014 were $29.3 million2, a 13% decrease from $33.7 million in the fourth quarter of 2013. Diluted earnings per share ("EPS") were $0.27, compared to $0.31 in the same quarter of 2013.
In the year ended December 31, 2014, the Company generated $481.1 million of revenue and adjusted net earnings3 of $100.8 million, or $0.94 per diluted share. This represents a 12% increase in adjusted net earnings and diluted EPS from 2013. Net earnings for 2014 were $91.5 million, or $0.85 per diluted share, a 2% decrease from net earnings of $93.8 million, or $0.88 per diluted share, in 2013.
"The 10% increase in gross auction proceeds we achieved in 2014 reflects a continuation of a five year growth trend in our Canadian operations and positive momentum building in the U.S. business," said Ravi Saligram, Chief Executive Officer. "Our organization is excited by our new strategic direction and is committed to driving shareholder value."
"While we are encouraged by our double-digit adjusted earnings per share growth in 2014, which was partially driven by a lower tax rate, our focus for 2015 is on growing revenues and operating income. We are laser focused on improving our revenue rate, with particular emphasis on reducing the volatility of our underwritten contracts, to increase the conversion of GAP to revenue."