May 9, 2016 – During the first quarter of 2016, Ritchie Bros. Auctioneers generated $131.9 million USD of revenue, a 14 per cent increase compared to revenues of $115.6 million in the first quarter last year, and net income attributable to stockholders for the first quarter of $29.4 million, a 24 per cent increase compared to $23.8 million in the same period last year.
“I’m proud of the efforts of the entire Ritchie Bros. team during the first quarter, as we increased GAP by seven per cent and revenues by 14 per cent compared to the first quarter last year, a significant achievement. Most of our geographies contributed to this strong performance ‒ most notably Canada, Australia, the Middle East and Mexico. We also experienced growth in all of our key sectors including construction, transportation and agriculture,” said Ravi Saligram, CEO, Ritchie Bros.
GAP was $1,019.9 million for the first quarter of 2016, a seven per cent increase compared to the first quarter of 2015, and the first time more than $1 billion of assets were sold by Ritchie Bros. during the first quarter. EquipmentOne, the Company’s online equipment marketplace, contributed $23.7 million of gross transaction value (GTV) to GAP in the first quarter of 2016 compared to $21.8 million in the first quarter of 2015.
First quarter 2016 GAP would have been $21.5 million higher, resulting in a nine per cent increase over first quarter 2015, if foreign exchange rates had remained consistent with those in 2015. This adverse effect on GAP is primarily due to the declining value of the Canadian dollar and the Euro relative to the U.S. dollar.
Revenue increased 14 per cent during the first quarter of 2016 to $131.9 million, compared to $115.6 million in the first quarter of 2015, primarily due to higher GAP and Revenue Rate over the same comparative period. First quarter 2016 revenues would have been $3.0 million higher, resulting in a 17 per cent increase over first quarter 2015, if foreign exchange rates had remained consistent with those in the same period in 2015.
Operational Review
Online statistics
During the first quarter of 2016, the Company attracted record first quarter online bidder registrations and sold approximately $448.8 million of equipment, trucks and other assets to online auction bidders and EquipmentOne customers. This represents an 11 per cent increase compared to the $405.7 million of assets sold online during the first quarter of 2015.
Auction activity
During the first quarter of 2016, Ritchie Bros. conducted 42 unreserved industrial auctions in 14 countries throughout North America, Europe, the Middle East, Australia, New Zealand, and Asia. Auctions during the quarter included:
- On March 30, 2016, Ritchie Bros. held its largest-ever ‘on-the-farm’ offsite agricultural auction, selling more than CA$24 million (US$19+ million) of equipment and real estate from a consignor’s farm in Bonanza, Alberta.
- On March 17 – 18, 2016, Ritchie Bros. sold more than US$46 million of equipment and trucks at its largest-ever Denver, Colorado auction. The two-day auction also set new Denver site records for attendance (5,950+ bidders) and items sold (3,950+).
- On March 14 -15, 2016, Ritchie Bros. held its largest-ever Grande Prairie, Alberta auction, selling more than CA$62 million (US$46+ million) of equipment on behalf of 250+ consignors. The two-day auction attracted 7,150+ registered bidders, which was also a new site record.
- On March 2 – 3, 2016, the Company sold more than US$57 million of equipment and other assets at its auction in Fort Worth, Texas. More than 5,250 people registered for the auction, to bid on the 5,850+ items sold, both Texas auction records for Ritchie Bros.
- On March 1 – 2, 2016, Ritchie Bros. sold more than US$41 million worth of assets on behalf of consignors—a 54% increase in GAP compared to the March Dubai auction of 2015.
- On February 24 – 26, 2016, the Company sold CA$120+ million (US$89+ million) of equipment and other assets in Edmonton, Alberta. The three-day auction attracted 13,100+ registered bidders—a 50% increase compared to the same auction last year.
- On February 15 – 19, 2016, Ritchie Bros. held its massive Orlando auction, selling more than US$172 million of equipment, trucks and other assets to more than 9,850 registered bidders. This global auction attracted bidders from around the world, with US$137+ million (80 percent) of equipment purchased by out-of-state buyers.
There are currently 97 unreserved auctions on the Ritchie Bros. auction calendar, including auctions in North America, Central America, Europe, the Middle East, Australia and Asia.
EquipmentOne activity
During the first quarter of 2016, EquipmentOne sold more than $23.7 million of equipment and other assets on behalf of customers and saw a 12% increase in revenues compared to the first quarter of 2015.
EquipmentOne expanded its market reach during the first quarter, by providing Canadian equipment sellers and buyers with Canadian currency listings and transactions. In addition, sales training sessions for Ritchie Bros.’ Canadian sales team were launched for EquipmentOne, providing the sales team with another solution to offer Canadian equipment sellers.
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