Ritchie Bros. post strong second quarter
By Andrew Macklin
August 7, 2015 – Ritchie Bros. Auctioneers Inc. is reporting solid growth in its financial results for the second quarter of 2015.
During the quarter, the company generated $155.5 million of revenue, a 10 per cent increase compared to revenue of $141.8 million in the second quarter last year, and net earnings of $46.4 million, an increase of 20 per cent compared to net earnings of $38.6 million in the second quarter last year.
During the first half of 2015, for the six months ended June 30, 2015, Ritchie Bros. generated $271.1 million in revenue, a 13 per cent increase compared to $240.4 million during the first six months of 2014. Net earnings were $70.0 million during the first half of 2015, a 32 per cent increase compared to $52.9 million in the first half of 2014. Diluted EPS for the first half of 2015 was $0.65, a 33 per cent increase compared to the same period last year.
Gross Auction Proceeds (GAP) were $1.3 billion for the second quarter of 2015, a quarterly record and a three per cent increase compared to the second quarter of 2014. EquipmentOne, the company’s online equipment marketplace, contributed $31.7 million of gross transaction value (GTV) to GAP in the second quarter of 2015 compared to $29.6 million in the second quarter of 2014. GAP for the second quarter of 2015 would have been $98.7 million higher, or an additional 7.8 per cent increase, if foreign exchange rates had remained consistent with those in the same period last year. 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.
“The momentum we built during the first quarter continued into the second, with 10 percent revenue growth and 21 percent growth in diluted earnings per share compared to the second quarter last year. We also nearly doubled operating free cash flow compared to the same period a year ago,” said Ravi Saligram, chief executive officer. “Our focus on enhancing the performance of our underwritten business is clearly delivering results, and was demonstrated by the strong revenue rates we achieved at many of the auctions we held during the second quarter. Every business unit contributed positively to our results, including EquipmentOne and Ritchie Bros. Financial Services. In particular, our U.S. and Latin America business achieved a new second quarter revenue record. It’s an early indication that our teams are embracing the new strategy and are laser focused on execution. The strength of our performance has given us the confidence to provide our shareholders with a 14 per cent increase in our quarterly cash dividend, which raises our dividend to 16 cents per share.”