Ritchie Bros. Reports Q2/2019 Results, Names Interim Co-CEOs



Ritchie Bros. Auctioneers reported its results for the three months ended June 30, 2019. Net income attributable to stockholders increased 18% to $54 million, and diluted earnings per share attributable to stockholders increased 17% to $0.49 per share, compared to the same period in 2018.

Consolidated results included:

  • Total revenue in Q2 2019 increased 27% to $393.2 million as compared to Q2 2018
  • Service revenue in Q2 2019 increased 9% to $234.6 million as compared to Q2 2018
  • Inventory sales revenue in Q2 2019 increased 68% to $158.6 million as compared to Q2 2018
  • Total selling, general and administrative expenses (“SG&A”) in Q2 2019 decreased 4% to $97.7 million as compared to Q2 2018
  • Operating income in Q2 2019 increased 20% to $78.0 million as compared to Q2 2018
  • Cash provided by operating activities was up 49% to $160.4 million for the first half of 2019

“We delivered impressive second quarter results driven by our highest ever Q2 GTV performance of $1.5 billion and 7% growth on a constant currency basis.” said Ravi Saligram, CEO of Ritchie Bros. “Furthermore, our strong second quarter performance reinforced the power of our business model to achieve operating leverage and drive strong cash flow. We generated 27% total revenue growth together with disciplined cost management and achieved 20% operating income growth and record quarterly diluted earnings per share of $0.49. We are pleased that our operating free cash flow* grew 64% on a trailing twelve-month basis and we achieved an adjusted net debt* to adjusted EBITDA* ratio of 1.8 times.”

Ritchie Bros.’ board also named Sharon Driscoll, chief financial officer, and Karl Werner, president, International, interim co-CEOs of the company, in addition to their current roles, effective October 1st concurrent with the date of Saligram’s departure. Saligram will work closely with Driscoll, Werner and the executive team to assure a smooth transition, while the board continues its search for a successor to Saligram.

Ritchie Bros. additionally reported the following appointments and promotions:
• Jeff Jeter, president, Upstream and Emerging Businesses, North America will now also assume responsibility for digital operations. He will continue to play an important role in accelerating momentum behind key growth initiatives including oversight of North American strategic accounts, the Government business and the commercial roll-out of Ritchie Bros. Asset Solutions.
• Kari Taylor, currently chief sales officer, U.S. Regions, will become president, U.S. Regions, overseeing both sales and operations functions in the US.
• Kieran Holm, currently senior vice president, Operations Excellence & Efficiencies, will become president, Canada, responsible for all aspects of the region’s sales and operations.
• Matt Ackley, currently senior vice president, Product Management & Digital Marketing, will become chief marketing officer responsible for the entire Marketing function including digital product management and the global development of Ritchie Bros. Asset Solutions.

All four will continue reporting directly to the CEO.

 

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