Integration with IronPlanet gains momentum for Ritchie Bros. during second quarter
Ritchie Bros. Auctioneers Incorporated reports results for the three and six months ended June 30, 2017. During the second quarter, the Company generated $166.2 million of revenue and $17.6 million of net income attributable to stockholders. Diluted EPS attributable to stockholders was $0.16. Non-recurring charges of $4.8 million of stock option compensation expense related to the accelerated vesting of IronPlanet stock options assumed as part of the Merger, $9.1 million of acquisition and finance structure advisory costs, $1.4 million of severance and retention costs that followed the Merger in the resulting corporate reorganization, and an $8.9 million impairment loss recognized on various technology assets were recorded during the quarter. Removing the impact of these charges, diluted adjusted EPS attributable to stockholders (non-GAAP measure) was $0.33.
"We are pleased that integration efforts with IronPlanet are gaining momentum and our unified sales teams have begun proactively selling multi-channel solutions to customers. We are also confident of delivering run rate synergies in excess of $10 million by the end of 2017 and $20 million by the end of 2018" said Ravi Saligram, CEO, Ritchie Bros; He added: "Our results in the second quarter of 2017 were unfavorably affected by a severe shortage in supply of used construction equipment especially in the U.S. as end users achieved high levels of equipment utilization in state and local infrastructure projects. We expect supply to remain constrained in the second half of 2017. Bright spots for Ritchie Bros. in the first half of 2017 were a return to growth in Europe, excellent growth in Equipment One and Mascus, strong pricing in North America, a high Revenue Rate and strong operating cash flow. We are optimistic that our transformative combination with IronPlanet will help us accelerate growth in 2018 as macro conditions improve."Second quarter highlights:
- Q2 2017 revenues increased 5% to $166.2 million compared to Q2 2016, primarily due to the acquisition of IronPlanet Holdings Inc.
- Record second quarter 2017 Revenue Rate1 of 13.22% achieved during Q2 2017
- Diluted earnings per share attributable to stockholders of $0.16 including acquisition-related costs, the impairment loss, and interest expense; diluted adjusted EPS attributable to stockholders (non-GAAP measure) of $0.33 excluding certain acquisition-related costs and the impairment loss
- $114.7 million of net cash provided by operating activities during the first half of 2017
- Declared quarterly dividend of $0.17 per common share
- IronPlanet integration off to a great start with a smooth day 1 and significant progress in first 60 days; sales force unified and are proactively selling multi-channel solutions