August 5, 2014, Vancouver, B.C. – Ritchie Bros. announced a
significant jump in quarterly earnings in the second quarter of 2014 as
worldwide used equipment sales continue to rise.
August 5, 2014, Vancouver, B.C. – Ritchie Bros. announced a
significant jump in quarterly earnings in the second quarter of 2014 as
worldwide used equipment sales continue to rise.
Ritchie Bros. saw net earnings of $38.6 million USD for the
three months ended June 30, 2014. This is a 30% increase compared to net
earnings of $29.8 million generated in the same quarter last year. The
Company's revenues for the second quarter of 2014 increased 11% to $141.8
million compared to $128.3 million for the same period in 2013, primarily as a
result of an increase in gross auction proceeds. Selling, general and administrative
expenses, excluding depreciation and amortization, for the second quarter of
2014 increased 2% compared to the same period in 2013. Net earnings for the
quarter also benefited from the effects of a favorable tax rate.
For the six months ended June 30, 2014, net earnings were
$52.9 million. This compares to net earnings of $43.8 million for the six
months ended June 30, 2013, representing a 21% increase in net earnings. The
Company's revenues during the first half of 2014 grew 4% to $240.4 million
compared to $230.4 million in the first half of 2013.
"Revenue and earnings growth was strong in the quarter
and we fully demonstrated the leverage in the business model with our continued
expense control," said Rob McLeod, Chief Financial Officer. "Our record second quarter revenue was
bolstered by strong auction activity across North America – especially in
Canada. The mix and age of equipment
sold at our auctions also continued to improve, enhancing the average price per
lot."
Ravi Saligram, Chief Executive Officer, added: "We're pleased to see the level of
growth in our auction business, which we believe continues to have significant
growth prospects. Over the next several
quarters, I look forward to focusing on how we can grow the Ritchie Bros.
business and expand our market share by further penetrating our existing
markets, with particular focus on the U.S. and Europe. I am also excited by our newly developed
EquipmentOne solution, and plan to put a significant focus on evolving our
strategy to achieve its full potential."
During the second quarter of 2014, the Company conducted 68
unreserved industrial auctions in 14 countries throughout North America,
Central America, Europe, the Middle East, Australia and Asia.
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