Ritchie Bros. shows strong second quarter results
Ritchie Bros. Auctioneers Incorporated reported the following results for the three months ended June 30, 2018 (All figures are presented in U.S. dollars): Net income attributable to stockholders of $45.7 million improved 159% compared to $17.6 million for the same quarter in 2017. Diluted earnings per share ("EPS") attributable to stockholders increased 163% to $0.42 versus $0.16 in the second quarter of 2017, while diluted adjusted EPS attributable to stockholders1 (non-GAAP measure) increased 27% to $0.42 from $0.33 in the same respective period.
Other key second quarter highlights included:
- Total revenues of $308.5 million increased 22% over the second quarter of 2017
- Total Company agency proceeds (non-GAAP measure) of $206.8 million increased 24% from $166.2 million in the second quarter of 2017
- Cash provided by operating activities of $107.9 million for the six-month period ended June 30, 2018
- Repayment of $27.3 million of long-term debt in the second quarter of 2018, and $56.6 million for the six months ended June 30, 2018
- Increased quarterly cash dividend by 6% to $0.18 per share
Auctions & Marketplaces ("A&M") segment:
- Gross Transaction Value ("GTV") of $1.4 billion increased 14% from $1.3 billion in the second quarter of 2017
- Total revenues of $274.3 million increased 21% from $226.4 million in the second quarter of 2017
- A&M agency proceeds4 (non-GAAP measure) of $192.5 million increased 25% from $154.6 million in the second quarter of 2017
- A&M revenue rate5 and A&M agency proceeds rate6 (non-GAAP measure), each improved 120 basis points ("bps") over the second quarter of 2017
"In the second quarter, we delivered strong double-digit revenue and agency proceeds growth on a combined company basis versus prior year through improved execution, positive price realization for our customers and increased A&M revenue rate. We had excellent performance in the US where we delivered strong live auction comps and achieved record quarterly online performance. Also, our US Strategic Accounts team drove strong growth through new customer acquisition. We also generated strong Services revenue growth with RB Financial Services up 42% and Mascus up 43% continuing their strong growth trajectory," said Ravi Saligram, Chief Executive Officer.
Saligram continued, "We were pleased with our earnings growth and our strong operating cash flows in the quarter. This allowed us to pay down $27 million of long-term debt in the quarter and increase the dividend. As we enter the second half, we are encouraged to see our sales teams gaining traction on leveraging our multi-channel solutions and offering the appropriate channel that best meets individual customer needs."