$56.3MM Operating Income for Ritchie Bros. in Q4/2018



Ritchie Bros. Auctioneers reported its fourth quarter results for 2018, which included an operating income of $56.3 million – an increase of 41% compared to $40 million in the fourth quarter of 2017

Net income attributable to stockholders of $35.5 million decreased 3% compared to $36.8 million in the fourth quarter of 2017, mainly due to the non-repeating tax benefit resulting from the U.S. tax reform in the prior year. Diluted earnings per share (“EPS”) attributable to stockholders decreased 6% to $0.32 in the fourth quarter of 2018, versus $0.34 in the fourth quarter of 2017, while diluted adjusted EPS attributable to stockholders (non-GAAP measure) increased 23% to $0.32versus $0.26 in the fourth quarter of 2017.

Other key fourth quarter highlights included:

  • Total revenues of $356.0 million, an increase of 22% over the fourth quarter of 2017
  • Total company agency proceeds (non-GAAP measure) of $193.1 million, an increase of 8% from $178.8 million in the fourth quarter of 2017
  • Total selling, general and administrative expenses of $95.6 million, an increase of 3% from $93.0 million in the fourth quarter of 2017
  • Auctions & Marketplaces total revenues of $321.1 million, an increase of 22% compared to $262.6 million in the fourth quarter of 2017
  • A&M agency proceeds (non-GAAP measure) of $178.6 million, an increase of 9% from $163.7 million in 2017

For the full fiscal year in 2018, net income attributable to stockholders of $121.5 million increased 62% compared to $75 million in 2017. Diluted earnings per share (“EPS”) attributable to stockholders increased 61% to $1.11 versus $0.69 in 2017, while diluted adjusted EPS attributable to stockholders (non-GAAP measure) increased 33% to $1.08 from $0.81 in 2017.

Other key highlights of 2018 included:

  • Total revenues of $1.17 billion, an increase of 20% compared to $971.2 million in 2017
  • Total company agency proceeds (non-GAAP measure) of $729.1 million, an increase of 19% from $610.5 million in 2017
  • Cash provided by operating activities of $144.3 million for the year ended December 31, 2018
  • Declared quarterly dividends aggregating to $0.70 per common share in 2018
  • A&M total revenues of $1.05 billion, an increase of 20% compared to $870.8 million in 2017
  • A&M agency proceeds (non-GAAP measure) of $672.2 million, an increase of 19% from $564.3 million in 2017

“It was a fitting end to an excellent year in 2018 in which we achieved full-year revenue growth of 20%. We are delighted with the strength of our balance sheet as we systematically paid down debt and significantly reduced our leverage ratio well below our target ceiling.” said Ravi Saligram, CEO of Ritchie Bros. “The record sale in Orlando last week is indicative that supply and demand are harmonizing and we are encouraged to see supply loosening. We’re enthusiastic about our growth prospects in 2019 as our technology and operational initiatives take hold, our multi-channel sales execution improves and both Marketplace-E and RB Asset Solutions start to build momentum.”


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Terry Mulreany
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