VANCOUVER, BC,
May 9, 2022 /CNW/ -
Ritchie Bros. Auctioneers
Incorporated (TSX: RBA) (NYSE: RBA), the "Company", "Ritchie Bros.", "we", "us", or "our") reported
the following results for the three months ended March 31, 2022.
(All figures are presented in U.S. dollars)
"As we continue to operate in this unprecedented tight supply
environment, our strong growth in GTV and service revenue is a
testament to the tenacity of our organization and early signs of
our strategic growth initiatives bearing fruit. We also
activated more organizations in the first quarter of 2022 than all
of last year combined with 103% quarter-over-quarter growth,
helping us lay the foundation to our marketplace and create deeper
and stronger relationships with our customers", said Ann Fandozzi, CEO of Ritchie Bros.
Net income attributable to stockholders increased 532% to
$178.1 million, compared to
$28.2 million in Q1 2021, which
includes a $169.1 million gain on
property, plant and equipment for the sale of a property located in
Bolton, Ontario. Diluted earnings
per share ("EPS") attributable to stockholders increased 540% to
$1.60 per share in Q1 2022 as
compared to $0.25 per share in Q1
2021. Non-GAAP diluted adjusted EPS attributable to stockholders*
increased 44% to $0.46 per share in
Q1 2022 compared to $0.32 per share
in Q1 2021.
For the first quarter of 2022 as compared to the first quarter
of 2021:
Consolidated results:
- Total revenue in Q1 2022 increased 19% to $393.9 million
-
- Service revenue in Q1 2022 increased 19% to $244.9 million
- Inventory sales revenue in Q1 2022 increased 19% to
$149.1 million
- Gain on property, plant and equipment in Q1 2022 was
$169.1 million due to a sale of
property located in Bolton,
Ontario
- Operating income in Q1 2022 increased 423% to $232.8 million
- Non-GAAP adjusted operating income* in Q1 2022 increased 54% to
$88.9 million
- Net income in Q1 2022 increased 533% to $178.1 million
- Non-GAAP adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization* ("EBITDA) in Q1 2022 increased 44% to
$104.9 million
- Cash provided by operating activities was $185.1 million for Q1 2022
- Cash on hand at the end of Q1 2022 was $1.5 billion, of which $440.1 million was unrestricted and $939.8 million was restricted relating to our two
senior notes entered into in December
2021 to finance the proposed Euro Auctions Acquisition, and
the remainder is restricted for use
Auctions & Marketplaces segment results:
- GTV1 in Q1 2022 increased 13% to $1.4 billion and increased 14% when excluding the
impact of foreign exchange
- A&M total revenue in Q1 2022 increased 18% to $350.1 million
-
- Service revenue in Q1 2022 increased 17% to $201.0 million
- Inventory sales revenue in Q1 2022 increased 19% to
$149.1 million
Other Services segment results:
- Other Services total revenue in Q1 2022 increased 29% to
$43.9 million
-
- RBFS revenue in Q1 2022 increased 71% to $15.7 million
- SmartEquip revenue of $4.7
million was recognized in Q1 2022, which was its first full
quarter since its acquisition on November
2, 2021 In addition, total number
of organizations activated on our Business Inventory Management
System ("IMS"), a gateway into our marketplace, increased by
103% as compared to Q4 2021.
Other Company developments:
- On May 4, 2022, the Company
completed its previously announced redemptions of the US$600 million aggregate principal amount of
4.750% Senior Notes and C$425 million
aggregate principal amount of 4.950% Senior Notes, which were
issued to finance a portion of the cash consideration for the
proposed Euro Auctions acquisition
___________________________________
|
1Gross
Transaction Value ("GTV") represents total proceeds from all items
sold at the Company's live on site auctions and online
marketplaces. GTV is not a measure of financial performance,
liquidity, or revenue, and is not presented in the Company's
consolidated financial statements.
|
|
The Company presents
both GAAP and non-GAAP measures to provide investors with
additional information. Providing these non-GAAP measures along
with GAAP measures allows for increased comparability of our
ongoing performance from period to period. Non-GAAP financial
measures referred to in this news release are labeled as "non-GAAP
measure" or designated as such with an asterisk (*). Please see
page 9-11 for explanations of why the Company uses these non-GAAP
measures and the reconciliation to the most comparable GAAP
financial measures.
|
Financial Overview
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in U.S. $000's, except
EPS and percentages)
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
2022
|
|
2021
|
|
|
2022 over 2021
|
Commissions
|
|
$
|
116,375
|
|
$
|
103,975
|
|
|
12
|
%
|
Fees
|
|
|
128,486
|
|
|
102,055
|
|
|
26
|
%
|
Total service
revenue
|
|
|
244,861
|
|
|
206,030
|
|
|
19
|
%
|
Inventory sales
revenue
|
|
|
149,060
|
|
|
125,525
|
|
|
19
|
%
|
Total
revenue
|
|
|
393,921
|
|
|
331,555
|
|
|
19
|
%
|
Costs of
services
|
|
|
39,015
|
|
|
37,866
|
|
|
3
|
%
|
Cost of inventory
sold
|
|
|
131,582
|
|
|
110,747
|
|
|
19
|
%
|
Selling, general and
administrative expenses
|
|
|
126,606
|
|
|
114,239
|
|
|
11
|
%
|
Total operating
expenses
|
|
|
330,901
|
|
|
287,121
|
|
|
15
|
%
|
Gain on disposition of
property, plant and equipment
|
|
|
169,820
|
|
|
68
|
|
|
249,635
|
%
|
Operating
income
|
|
|
232,840
|
|
|
44,502
|
|
|
423
|
%
|
Operating income as a %
of total revenue
|
|
|
59.1
|
%
|
|
13.4
|
%
|
|
4,570
|
bps
|
Non-GAAP adjusted
operating income*
|
|
|
88,860
|
|
|
57,775
|
|
|
54
|
%
|
Non-GAAP adjusted
operating income* as a % of total revenue
|
|
|
22.6
|
%
|
|
17.4
|
%
|
|
520
|
bps
|
Net income attributable
to stockholders
|
|
|
178,094
|
|
|
28,188
|
|
|
532
|
%
|
Non-GAAP adjusted net
income attributable to stockholders*
|
|
|
50,963
|
|
|
35,995
|
|
|
42
|
%
|
Diluted EPS
attributable to stockholders
|
|
$
|
1.60
|
|
$
|
0.25
|
|
|
540
|
%
|
Non-GAAP diluted
adjusted EPS attributable to stockholders*
|
|
$
|
0.46
|
|
$
|
0.32
|
|
|
44
|
%
|
Effective tax
rate
|
|
|
16.9
|
%
|
|
23.0
|
%
|
|
(610)
|
bps
|
Total GTV
|
|
|
1,439,105
|
|
|
1,274,539
|
|
|
13
|
%
|
Service GTV
|
|
|
1,290,045
|
|
|
1,149,014
|
|
|
12
|
%
|
Service revenue as a %
of total GTV - Rate
|
|
|
17.0
|
%
|
|
16.2
|
%
|
|
80
|
bps
|
Inventory
GTV
|
|
|
149,060
|
|
|
125,525
|
|
|
19
|
%
|
Service GTV as a % of
total GTV - Mix
|
|
|
89.6
|
%
|
|
90.2
|
%
|
|
(60)
|
bps
|
Inventory sales revenue
as a % of total GTV - Mix
|
|
|
10.4
|
%
|
|
9.8
|
%
|
|
60
|
bps
|
|
Certain amounts in
the prior period have been reclassified from selling, general and
administrative expenses to cost of services.
|
Segment Overview
|
|
|
|
|
|
|
|
|
|
(in U.S
$000's)
|
|
Three months ended
March 31, 2022
|
|
|
|
A&M
|
|
Other
|
|
Consolidated
|
|
Commissions
|
|
$
|
116,375
|
|
—
|
|
$
|
116,375
|
|
Fees
|
|
|
84,629
|
|
43,857
|
|
|
128,486
|
|
Total service
revenue
|
|
|
201,004
|
|
43,857
|
|
|
244,861
|
|
Inventory sales
revenue
|
|
|
149,060
|
|
—
|
|
|
149,060
|
|
Total
revenue
|
|
|
350,064
|
|
43,857
|
|
|
393,921
|
|
Ancillary and
logistical service expenses
|
|
|
—
|
|
10,755
|
|
|
10,755
|
|
Other costs of
services
|
|
|
25,574
|
|
2,686
|
|
|
28,260
|
|
Cost of inventory
sold
|
|
|
131,582
|
|
—
|
|
|
131,582
|
|
SG&A
expenses
|
|
|
108,811
|
|
17,795
|
|
|
126,606
|
|
Segment
profit
|
|
$
|
84,097
|
|
12,621
|
|
$
|
96,718
|
|
Total GTV
|
|
|
1,439,105
|
|
N/A
|
|
|
N/A
|
|
A&M service revenue
as a % of total GTV- Rate
|
|
|
14.0
|
%
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
(in U.S
$000's)
|
|
Three months ended
March 31, 2021
|
|
|
|
A&M
|
|
Other
|
|
Consolidated
|
|
Commissions
|
|
$
|
103,975
|
|
$
|
—
|
|
$
|
103,975
|
|
Fees
|
|
|
68,096
|
|
|
33,959
|
|
|
102,055
|
|
Total service
revenue
|
|
|
172,071
|
|
|
33,959
|
|
|
206,030
|
|
Inventory sales
revenue
|
|
|
125,525
|
|
|
—
|
|
|
125,525
|
|
Total
revenue
|
|
|
297,596
|
|
|
33,959
|
|
|
331,555
|
|
Ancillary and
logistical service expenses
|
|
|
—
|
|
|
12,269
|
|
|
12,269
|
|
Other costs of
services
|
|
|
24,304
|
|
|
1,293
|
|
|
25,597
|
|
Cost of inventory
sold
|
|
|
110,747
|
|
|
—
|
|
|
110,747
|
|
SG&A
expenses
|
|
|
102,781
|
|
|
11,458
|
|
|
114,239
|
|
Segment
profit
|
|
$
|
59,764
|
|
$
|
8,939
|
|
$
|
68,703
|
|
Total GTV
|
|
|
1,274,539
|
|
|
N/A
|
|
|
N/A
|
|
A&M service revenue
as a % of total GTV- Rate
|
|
|
13.5
|
%
|
|
N/A
|
|
|
N/A
|
|
Q1 2022 Consolidated Performance Overview
Total GTV increased 13% to $1.4
billion and increased 14% when excluding the impact of
foreign exchange in Q1 2022. Despite a continued unfavorable supply
environment, GTV increased year-over-year across all regions with
notable strength in North America
and sector strength in construction and transportation. The
increase in GTV was due to strong used equipment values, aided by
inflation, partially offset by lower lot counts and unfavorable
mix. In Canada, total GTV
increased primarily driven by higher performances at our
agricultural events as well as strong execution by our Canadian
strategic accounts team. Canada
also benefited from the shifting of the Truro, Nova Scotia auction from Q2 2021 to Q1
2022, positive year-over year performance in our Montreal, Quebec auction and a new
Prince Rupert, British Columbia
auction. In addition, Canada saw
significant volume growth in RBFS from providing escrow services
for private brokered transactions. In the US, total GTV increased
primarily driven by a large dispersal of construction equipment in
our Phoenix, Arizona auction, as
well as positive year-over year performances, notably at our
flagship Orlando, Florida event
where we welcomed customers back in person, and at our Las Vegas, Nevada event. These increases were
partially offset by a lower supply of equipment from our US
strategic accounts in the finance and rental sectors and
softer performances in our regional combined events. In
International, total GTV also increased primarily in Australia, driven by the addition of one new
event in Corio, Victoria as well
as two agricultural events, the use of local satellite yards and
the lifting of border restrictions.
Total revenue increased 19% to $393.9 million in Q1 2022, with total service
revenue increasing by 19% and inventory sales revenue increasing by
19%.
Service revenue increased 19%, with fees revenue
increasing 26% and commissions revenue increasing 12%. Fee revenue
increased 26% primarily due to the increase in total GTV of 13%, as
well as from the higher buyer fee rates implemented in 2021 and
early 2022. In addition, we saw higher fee revenue earned from the
continued growth in RBFS and the inclusion of fees from SmartEquip
since its acquisition on November 2,
2021. These increases were partially offset by reduced mix
of small value lots across all regions, as well as lower fees from
a decrease in lot volumes and from our ancillary services, most
notably in the US. We also saw lower fees associated with online
inspections driven by lower online lot counts sold in the US.
Commissions revenue increased 12%, in line with the growth in
Service GTV of 12%.
Inventory sales revenue increased 19% primarily in the US
and International. In the US, we saw a large inventory package
dispersal of construction equipment in our Phoenix, Arizona auction, partially offset by
a lower volume of inventory contracts in Orlando, Florida and Atlanta, Georgia events. In International,
inventory sales revenue grew in Australia primarily due to higher inventory
contracts driven by the addition of a new event as well as two
agricultural events and the use of local satellite yards.
Costs of services increased 3% to $39.0 million. This increase was primarily due to
higher employee compensation expenses as a result of the
acquisition of SmartEquip on November 2,
2021 and in our GovPlanet and Xcira businesses to support
our growth strategy. Building, facilities and technology expenses
also increased to support our flagship Orlando, US event, as well as the inclusion of
SmartEquip's costs. These increases were partially offset by lower
ancillary and logistical service expenses, in line with the
decrease in ancillary fees driven by lower lot counts and lower
fees earned on redeployment of assets in the US.
Cost of inventory increased 19% to $131.6 million, in line with the increase in
inventory sales revenue.
Selling, general and administrative ("SG&A") expenses
increased 11% to $126.6 million.
SG&A includes share-based payments of $5.4 million, non-recurring advisory, legal, and
restructuring costs charges of $2.3
million, as well as SG&A from SmartEquip of $3.1 million. The increases in SG&A were
primarily due to higher professional fees mainly driven by our
investment in new modern architecture to support our future
marketplace and services strategy, and higher fees related to
audit, SOX compliance and consulting. Wages, salaries and benefits
expenses also increased, driven by a higher headcount, in part due
to the acquisition of SmartEquip, as well as to accelerate our
growth initiatives and our transformational journey to become a
trusted global marketplace. Building, facilities and technology
costs also increased due to higher licensing and subscription
technology expenses as we shift to cloud-based solutions to improve
customer experience and higher costs with the expansion of our
local satellite yards. In addition, we saw higher global travel
expenses and higher advertising and promotion costs for new
tradeshow events and marketing initiatives to support new product
launches. We also saw higher share-based payment expenses primarily
due to the premium-priced options granted in 2021 and a higher
expense from the mark-to-market revaluation of our
liability-classified share units driven by a higher share price
over the comparative period. These increases were partially offset
by lower short-term incentive costs.
Net income attributable to stockholders increased 532% to
$178.1 million, which includes a
$169.1 million gain on property,
plant and equipment for the sale of a property located in
Bolton, Ontario. The
remaining increase was primarily related to higher operating
income, offset by a higher interest expense incurred on our senior
notes held in escrow, and the increase in income tax expense
resulting from the sale of the Bolton property. Non-GAAP adjusted net
income attributed to stockholders* increased 42% to
$51.0 million in Q1 2022 compared to
$36.0 million in Q1 2021.
Primarily for the same reasons noted above, diluted EPS
attributable to stockholders increased 540% to $1.60 per share for Q1 2022 from $0.25 per share in Q1 2021. Non-GAAP diluted
adjusted EPS attributable to stockholders* increased 44%
to $0.46 per share in Q1 2022.
Dividend Information
Quarterly dividend
On May 6,
2022, the Company declared a quarterly cash dividend of
$0.25 per common share, payable on
June 17, 2022 to shareholders of
record on May 27, 2022.
Q1 2022 Earnings Conference Call
Ritchie Bros. is hosting a
conference call to discuss its financial results for the quarter
ended March 31, 2022 at 8am Pacific time / 11am
Eastern time / 4pm BST on
May 10, 2022. The replay of the
webcast will be available through June 10,
2022.
Conference call and webcast details are available at the
following link:
https://investor.ritchiebros.com
About Ritchie Bros.
Established in 1958, Ritchie Bros.
(NYSE and TSX: RBA) is a world leader in asset management
technologies and disposition of commercial assets. We offer
customers end-to-end solutions for buying and selling used heavy
equipment, trucks, and other assets. Operating in a number of
sectors, including construction, transportation, agriculture,
energy, oil and gas, mining, and forestry, the company's selling
channels include: Ritchie Bros.
Auctioneers, the world's largest industrial auctioneer offers live
auction events with online bidding; IronPlanet, an online
marketplace with featured weekly auctions and providing the
exclusive IronClad Assurance® equipment condition certification;
Marketplace-E, a controlled marketplace offering multiple price and
timing ; Mascus, a leading European online equipment listing
service; Rouse, a leader in market intelligence on sales and rental
equipment data; SmartEquip, an innovative technology platform
offering equipment lifecycle support and part procurement; and
Ritchie Bros. Private Treaty,
offering privately negotiated sales. Our suite of multichannel
sales solutions also includes RB Asset Solutions, a complete
end-to-end asset management and disposition system. We also offer
sector-specific solutions including GovPlanet, TruckPlanet, and
Kruse Energy Auctioneers, plus equipment financing and leasing
through Ritchie Bros. Financial
Services. For more information about Ritchie Bros., visit RitchieBros.com.
Forward-looking Statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable U.S.
and Canadian securities legislation (collectively, "forward-looking
statements"), including, in particular, statements regarding future
financial and operational results, including future auctions and
estimated GTV thereof, and growth and value prospects and payment
of dividends. Forward-looking statements are statements that are
not historical facts and are generally, although not always,
identified by words such as "expect", "plan", "anticipate",
"project", "target", "potential", "schedule", "forecast", "budget",
"estimate", "intend", or "believe" and similar expressions or their
negative connotations, or statements that events or conditions
"will", "would", "may", "could", "should", or "might" occur. All
such forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks
and uncertainties, certain of which are beyond the Company's
control, including the duration and impact of the COVID-19 pandemic
on the Company's operations, the operations of customers, and
general economic conditions; the numerous factors that influence
the supply of and demand for used equipment; economic and other
conditions in local, regional and global sectors; the Company's
ability to successfully integrate acquired companies, and to
receive the anticipated benefits of such acquisitions; and the
risks and uncertainties set forth in the Company's Annual Report on
Form 10-K for the year ended December 31,
2021, which are available on the SEC, SEDAR, and Company
websites. The foregoing list is not exhaustive of the factors that
may affect the Company's forward-looking statements. There can be
no assurance that forward-looking statements will prove to be
accurate, and actual results may differ materially from those
expressed in, or implied by, these forward-looking statements.
Forward looking statements are made as of the date of this news
release and the Company does not undertake any obligation to update
the information contained herein unless required by applicable
securities legislation. For the reasons set forth above, you should
not place undue reliance on forward looking statements.
GTV and Selected Condensed Consolidated Financial
InformationG
TV and Condensed Consolidated Income Statements – First
Quarter
(Expressed in thousands of United
States dollars, except share, per share amounts and
percentages)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in U.S. $000's, except
EPS)
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
2022
|
|
|
2021
|
|
2022 over 2021
|
|
GTV
|
|
$
|
1,439,105
|
|
$
|
1,274,539
|
|
13
|
%
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Service
revenues
|
|
$
|
244,861
|
|
$
|
206,030
|
|
19
|
%
|
|
Inventory sales
revenue
|
|
|
149,060
|
|
|
125,525
|
|
19
|
%
|
|
Total
revenues
|
|
|
393,921
|
|
|
331,555
|
|
19
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Costs of
services
|
|
|
39,015
|
|
|
37,866
|
|
3
|
%
|
|
Cost of inventory
sold
|
|
|
131,582
|
|
|
110,747
|
|
19
|
%
|
|
Selling, general and
administration expenses
|
|
|
126,606
|
|
|
114,239
|
|
11
|
%
|
|
Acquisition-related
costs
|
|
|
9,637
|
|
|
2,922
|
|
230
|
%
|
|
Depreciation and
amortization expenses
|
|
|
24,225
|
|
|
21,070
|
|
15
|
%
|
|
Foreign exchange
(gain) loss
|
|
|
(164)
|
|
|
277
|
|
(159)
|
%
|
|
Total operating
expenses
|
|
|
330,901
|
|
|
287,121
|
|
15
|
%
|
|
Gain on disposition of
property, plant and equipment
|
|
|
169,820
|
|
|
68
|
|
249,635
|
%
|
|
Operating
income
|
|
|
232,840
|
|
|
44,502
|
|
423
|
%
|
|
Interest
expense
|
|
|
(20,686)
|
|
|
(8,946)
|
|
131
|
%
|
|
Change in fair value of
derivatives, net
|
|
|
1,263
|
|
|
—
|
|
100
|
%
|
|
Other income,
net
|
|
|
920
|
|
|
1,002
|
|
(8)
|
%
|
|
Income before income
taxes
|
|
|
214,337
|
|
|
36,558
|
|
486
|
%
|
|
Income tax
expense
|
|
|
36,236
|
|
|
8,419
|
|
330
|
%
|
|
Net income
|
|
$
|
178,101
|
|
$
|
28,139
|
|
533
|
%
|
|
Net income attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Stockholders
|
|
$
|
178,094
|
|
$
|
28,188
|
|
532
|
%
|
|
Non-controlling
interests
|
|
|
7
|
|
|
(49)
|
|
(114)
|
%
|
|
|
|
$
|
178,101
|
|
$
|
28,139
|
|
533
|
%
|
|
Earnings per share
attributable to stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.61
|
|
$
|
0.26
|
|
519
|
%
|
|
Diluted
|
|
$
|
1.60
|
|
$
|
0.25
|
|
540
|
%
|
|
Weighted average number
of share outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
110,647,700
|
|
|
109,972,997
|
|
1
|
%
|
|
Diluted
|
|
|
111,655,861
|
|
|
111,267,392
|
|
0
|
%
|
|
Condensed Consolidated Balance Sheets
(Expressed in thousands of United
States dollars, except share data)
(Unaudited)
|
|
|
|
|
|
|
Year ended March
31,
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
440,120
|
|
$
|
326,113
|
Restricted
cash
|
|
|
150,203
|
|
|
102,875
|
Trade and other
receivables
|
|
|
292,418
|
|
|
150,895
|
Less: allowance for
credit losses
|
|
|
(4,339)
|
|
|
(4,396)
|
Inventory
|
|
|
78,890
|
|
|
102,494
|
Other current
assets
|
|
|
50,699
|
|
|
64,346
|
Income taxes
receivable
|
|
|
19,517
|
|
|
19,895
|
Total current
assets
|
|
|
1,027,508
|
|
|
762,222
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
939,755
|
|
|
933,464
|
Property, plant and
equipment
|
|
|
445,517
|
|
|
449,087
|
Other non-current
assets
|
|
|
157,874
|
|
|
142,504
|
Intangible
assets
|
|
|
341,771
|
|
|
350,516
|
Goodwill
|
|
|
947,798
|
|
|
947,715
|
Deferred tax
assets
|
|
|
7,187
|
|
|
7,406
|
Total assets
|
|
$
|
3,867,410
|
|
$
|
3,592,914
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Auction proceeds
payable
|
|
$
|
539,739
|
|
$
|
292,789
|
Trade and other
liabilities
|
|
|
258,595
|
|
|
280,308
|
Income taxes
payable
|
|
|
24,967
|
|
|
5,677
|
Short-term
debt
|
|
|
22,083
|
|
|
6,147
|
Current portion of
long-term debt
|
|
|
3,564
|
|
|
3,498
|
Total current
liabilities
|
|
|
848,948
|
|
|
588,419
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,578,420
|
|
|
1,733,940
|
Other non-current
liabilities
|
|
|
150,105
|
|
|
147,260
|
Deferred tax
liabilities
|
|
|
64,572
|
|
|
52,232
|
Total
liabilities
|
|
|
2,642,045
|
|
|
2,521,851
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Share
capital:
|
|
|
|
|
|
|
Common stock; no par
value, unlimited shares
|
|
|
|
|
|
|
authorized, issued and
outstanding shares:
|
|
|
|
|
|
|
110,735,243
(December 31, 2021: 110,618,049)
|
|
|
231,064
|
|
|
227,504
|
Additional paid-in
capital
|
|
|
61,123
|
|
|
59,535
|
Retained
earnings
|
|
|
989,923
|
|
|
839,609
|
Accumulated other
comprehensive loss
|
|
|
(57,130)
|
|
|
(55,973)
|
Stockholders'
equity
|
|
|
1,224,980
|
|
|
1,070,675
|
Non-controlling
interest
|
|
|
385
|
|
|
388
|
Total stockholders'
equity
|
|
|
1,225,365
|
|
|
1,071,063
|
Total liabilities and
equity
|
|
$
|
3,867,410
|
|
$
|
3,592,914
|
Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of United
States dollars)
(Unaudited)
|
|
|
|
|
|
|
Year ended March
31,
|
|
2022
|
|
2021
|
Cash provided by (used
in):
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
178,101
|
|
$
|
28,139
|
Adjustments for items
not affecting cash:
|
|
|
|
|
|
|
Depreciation and
amortization expenses
|
|
|
24,225
|
|
|
21,070
|
Share-based payments
expense
|
|
|
7,590
|
|
|
7,193
|
Deferred income tax
expense
|
|
|
12,434
|
|
|
963
|
Unrealized foreign
exchange (gain) loss
|
|
|
(248)
|
|
|
459
|
Gain on disposition of
property, plant and equipment
|
|
|
(169,820)
|
|
|
(68)
|
Amortization of debt
issuance costs
|
|
|
848
|
|
|
720
|
Amortization of
right-of-use assets
|
|
|
3,455
|
|
|
3,172
|
Change in fair value
of derivatives
|
|
|
(1,263)
|
|
|
—
|
Other, net
|
|
|
1,111
|
|
|
1,184
|
Net changes in
operating assets and liabilities
|
|
|
128,701
|
|
|
117,855
|
Net cash provided by
operating activities
|
|
|
185,134
|
|
|
180,687
|
Investing
activities:
|
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
|
(63)
|
|
|
—
|
Property, plant and
equipment additions
|
|
|
(2,002)
|
|
|
(1,556)
|
Proceeds on
disposition of property, plant and equipment
|
|
|
164,659
|
|
|
66
|
Intangible asset
additions
|
|
|
(7,762)
|
|
|
(8,769)
|
Issuance of loans
receivable
|
|
|
(1,099)
|
|
|
—
|
Repayment of loans
receivable
|
|
|
1,212
|
|
|
224
|
Net cash used in
investing activities
|
|
|
154,945
|
|
|
(10,035)
|
Financing
activities:
|
|
|
|
|
|
|
Dividends paid to
stockholders
|
|
|
(27,659)
|
|
|
(24,181)
|
Proceeds from exercise
of options and share option plans
|
|
|
986
|
|
|
6,719
|
Payment of withholding
taxes on issuance of shares
|
|
|
(1,531)
|
|
|
(7,542)
|
Net increase
(decrease) in short-term debt
|
|
|
15,376
|
|
|
(2,886)
|
Repayment of long-term
debt
|
|
|
(162,698)
|
|
|
(2,626)
|
Debt issue
costs
|
|
|
(2,261)
|
|
|
—
|
Repayment of finance
lease obligations
|
|
|
(2,506)
|
|
|
(2,629)
|
Net cash used in
financing activities
|
|
|
(180,293)
|
|
|
(33,145)
|
Effect of changes in
foreign currency rates on cash, cash equivalents, and restricted
cash
|
|
|
7,840
|
|
|
(2,782)
|
Increase
|
|
|
167,626
|
|
|
134,725
|
Beginning of
period
|
|
|
1,362,452
|
|
|
306,895
|
Cash, cash equivalents,
and restricted cash, end of period
|
|
$
|
1,530,078
|
|
$
|
441,620
|
Selected Data
(Unaudited)
Total auction metrics
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
% Change
|
|
|
|
2022
|
|
2021
|
|
2022 over 2021
|
|
Bids per lot sold
*
|
|
27
|
|
27
|
|
—
|
%
|
|
Total lots sold
*
|
|
105,767
|
|
116,259
|
|
(9)
|
%
|
|
* Management
reviews industrial equipment auction metrics excluding GovPlanet;
as a result, GovPlanet business metrics are excluded from these
metrics
|
Non-GAAP Measures
This news release references non-GAAP measures. Non-GAAP
measures do not have a standardized meaning and are, therefore,
unlikely to be comparable to similar measures presented by other
companies. The presentation of this financial information, which is
not prepared under any comprehensive set of accounting rules or
principles, is not intended to be considered in isolation of, or as
a substitute for, the financial information prepared and presented
in accordance with GAAP. Non-GAAP financial measures referred to in
this report are labeled as "non-GAAP measure" or designated as such
with an asterisk (*).
Non-GAAP Adjusted Operating Income* Reconciliation
We believe that non-GAAP adjusted operating income* provides
useful information about the growth or decline of our operating
income for the relevant financial period and eliminates the
financial impact of adjusting items we do not consider to be part
of our normal operating results.
Non-GAAP adjusting operating income* eliminates the financial
impact of adjusting items which are significant recurring and
non-recurring items that we do not consider to be part of our
normal operating results, such as share-based payments expense,
acquisition-related costs, amortization of acquired intangible
assets, management reorganization costs, and certain other items,
which the Company refers to as 'adjusting items'.
In 2021, we updated the calculation of non-GAAP adjusted
operating income* to add-back share-based payments expense, all
acquisition-related costs (including any share-based continuing
employment costs recognized in acquisition-related costs),
amortization of acquired intangible assets, and gain or loss on
disposition of property, plant and equipment. We have also adjusted
for certain non-recurring advisory, legal and restructuring costs
and the change in fair value of derivatives. These adjustments in
2021 have been applied retrospectively to all periods presented, as
applicable.
The following table reconciles non-GAAP adjusted operating
income* to operating income, which is the most directly comparable
GAAP measure in our consolidated income statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
(in U.S. $000's, except
percentages)
|
|
2022
|
|
2021
|
|
2022 over 2021
|
|
Operating
income
|
|
$
|
232,840
|
|
$
|
44,502
|
|
423
|
%
|
|
Share-based payments
expense
|
|
|
5,386
|
|
|
3,778
|
|
43
|
%
|
|
Acquisition-related
costs
|
|
|
9,637
|
|
|
2,922
|
|
230
|
%
|
|
Amortization of
acquired intangible assets
|
|
|
8,532
|
|
|
6,641
|
|
28
|
%
|
|
Gain on disposition of
property, plant and equipment
|
|
|
(169,820)
|
|
|
(68)
|
|
249,635
|
%
|
|
Non-recurring
advisory, legal and restructuring costs
|
|
|
2,285
|
|
|
—
|
|
100
|
%
|
|
Non-GAAP adjusted
operating income*
|
|
$
|
88,860
|
|
$
|
57,775
|
|
54
|
%
|
|
(1)
|
Please refer to page
12 for a summary of adjusting items during the three months and
year ended March 31, 2022 and March 31, 2021.
|
(2)
|
Non-GAAP adjusted
operating income* represents operating income excluding the effects
of adjusting items.
|
(3)
|
Non-recurring
advisory, legal and restructuring costs include $0.9 million
related to severance and retention costs in connection with the
restructuring of our IT team driven by our strategy to build a new
digital technology platform, $0.5 million of terminated and ongoing
transaction and legal costs relating to mergers and acquisition
activity, $0.4 million of SOX remediation costs, and $0.6 million
of advisory costs relating to a cybersecurity incident detected in
Q4 2021.
|
Non-GAAP Adjusted Net Income Attributable to Stockholders*
and Non-GAAP Diluted Adjusted EPS Attributable to Stockholders*
Reconciliation
The Company believes that non-GAAP adjusted net income
attributable to stockholders* provides useful information about the
growth or decline of the net income attributable to stockholders
for the relevant financial period and eliminates the financial
impact of adjusting items the Company does not consider to be part
of the normal operating results. Non-GAAP diluted adjusted EPS
attributable to stockholders* eliminates the financial impact of
adjusting items which are after-tax effects of significant
recurring and non-recurring items that the Company does not
consider to be part of the normal operating results, such as
share-based payments expense, acquisition-related costs,
amortization of acquired intangible assets, management
reorganization costs, and certain other items, which the Company
refers to as 'adjusting items'.
In 2021, the Company updated the calculation of non-GAAP diluted
adjusted EPS attributable to stockholders* to add-back share-based
payments expense and all acquisition-related costs (including any
share-based continuing employment costs recognized in
acquisition-related costs), amortization of acquired intangible
assets, and gain or loss on disposition of property, plant and
equipment. We have also adjusted for certain non-recurring
advisory, legal and restructuring costs and the change in fair
value of derivatives. These adjustments in 2021 have been applied
retrospectively to all periods presented, as applicable.
The following table reconciles non-GAAP adjusted net income
attributable to stockholders* and non-GAAP diluted adjusted EPS
attributable to stockholders* to net income attributable to
stockholders and diluted EPS attributable to stockholders, which
are the most directly comparable GAAP measures in the consolidated
income statements.
|
|
|
|
|
|
|
|
|
|
|
(in U.S. $000's, except
share and per share data, and percentages)
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
2022
|
|
2021
|
|
2022 over 2021
|
|
Net income attributable
to stockholders
|
|
$
|
178,094
|
|
$
|
28,188
|
|
532
|
%
|
|
Share-based payments
expense
|
|
|
5,386
|
|
|
3,778
|
|
43
|
%
|
|
Acquisition-related
costs
|
|
|
9,637
|
|
|
2,922
|
|
230
|
%
|
|
Amortization of
acquired intangible assets
|
|
|
8,532
|
|
|
6,641
|
|
28
|
%
|
|
Gain on disposition of
property, plant and equipment
|
|
|
(169,820)
|
|
|
(68)
|
|
249,635
|
%
|
|
Change in fair value
of derivatives
|
|
|
(1,263)
|
|
|
—
|
|
(100)
|
%
|
|
Non-recurring
advisory, legal and restructuring costs
|
|
|
2,285
|
|
|
—
|
|
100
|
%
|
|
Related tax effects of
the above
|
|
|
18,112
|
|
|
(5,466)
|
|
(431)
|
%
|
|
Non-GAAP adjusted net
income attributable to stockholders*
|
|
$
|
50,963
|
|
$
|
35,995
|
|
42
|
%
|
|
Weighted average number
of dilutive shares outstanding
|
|
|
111,655,861
|
|
|
111,267,392
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to stockholders
|
|
$
|
1.60
|
|
$
|
0.25
|
|
540
|
%
|
|
Non-GAAP diluted
adjusted EPS attributable to Stockholders*
|
|
$
|
0.46
|
|
$
|
0.32
|
|
44
|
%
|
|
|
|
(1)
|
Please refer to
page 12 for a summary of adjusting items for the three months and
year ended March 31, 2022 and March 31, 2021.
|
(2)
|
Non-GAAP adjusted net
income attributable to stockholders* represents net income
attributable to stockholders, excluding the effects of adjusting
items.
|
(3)
|
Non-GAAP diluted
adjusted EPS attributable to stockholders* is calculated by
dividing non-GAAP adjusted net income attributable to
stockholders*, net of the effect of dilutive securities, by the
weighted average number of dilutive shares outstanding.
|
(4)
|
Non-recurring advisory,
legal and restructuring costs include $0.9 million related to
severance and retention costs in connection with the restructuring
of our IT team driven by our strategy to build a new digital
technology platform, $0.5 million of terminated and ongoing
transaction and legal costs relating to mergers and acquisition
activity, $0.4 million of SOX remediation costs, and $0.6 million
of advisory costs relating to a cybersecurity incident detected in
Q4 2021.
|
Non-GAAP Adjusted EBITDA*
The Company believes non-GAAP adjusted EBITDA* provides useful
information about the growth or decline of our net income when
compared between different financial periods. The Company uses
non-GAAP adjusted EBITDA as a key performance measure because we
believe it facilitates operating performance comparisons from
period to period.
In 2021, the Company updated the calculation of non-GAAP
adjusted EBITDA* to add-back share-based payments expense and all
acquisition-related costs (including any share-based continuing
employment costs recognized in acquisition-related costs), and gain
or loss on disposition of property, plant and equipment. We have
also adjusted for certain non-recurring advisory, legal and
restructuring costs and the change in fair value of derivatives.
These adjustments in 2021 have been applied retrospectively to all
periods presented, as applicable.
The following table reconciles non-GAAP adjusted EBITDA* to net
income, which is the most directly comparable GAAP measure in, or
calculated from, our consolidated income statements:
|
|
|
|
|
|
|
|
|
|
|
(in U.S. $000's, except
percentages)
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
2022
|
|
2021
|
|
2022 over 2021
|
|
Net income
|
|
$
|
178,101
|
|
$
|
28,139
|
|
533
|
%
|
|
Add: depreciation and
amortization expenses
|
|
|
24,225
|
|
|
21,070
|
|
15
|
%
|
|
Add: interest
expense
|
|
|
20,686
|
|
|
8,946
|
|
131
|
%
|
|
Less: interest
income
|
|
|
(544)
|
|
|
(303)
|
|
80
|
%
|
|
Add: income tax
expense
|
|
|
36,236
|
|
|
8,419
|
|
330
|
%
|
|
EBITDA
|
|
|
258,704
|
|
|
66,271
|
|
290
|
%
|
|
Share-based payments
expense
|
|
|
5,386
|
|
|
3,778
|
|
43
|
%
|
|
Acquisition-related
costs
|
|
|
9,637
|
|
|
2,922
|
|
230
|
%
|
|
Gain on disposition of
property, plant and equipment
|
|
|
(169,820)
|
|
|
(68)
|
|
249,635
|
%
|
|
Change in fair value
of derivatives
|
|
|
(1,263)
|
|
|
—
|
|
(100)
|
%
|
|
Non-recurring
advisory, legal and restructuring costs
|
|
|
2,285
|
|
|
—
|
|
100
|
%
|
|
Non-GAAP adjusted
EBITDA*
|
|
$
|
104,929
|
|
$
|
72,903
|
|
44
|
%
|
|
|
|
(1)
|
Please refer to page 12
for a summary of adjusting items during the three months and year
ended March 31, 2022 and March 31, 2021.
|
(2)
|
Non-GAAP adjusted
EBITDA* is calculated by adding back depreciation and amortization
expenses, interest expense, income tax expense, and subtracting
interest income from net income, as well as adding back share-based
payments expense, acquisition-related costs, and excluding the
effects of any non-recurring or unusual adjusting items.
|
(3)
|
Non-recurring advisory,
legal and restructuring costs include $0.9 million related to
severance and retention costs in connection with the restructuring
of our IT team driven by our strategy to build a new digital
technology platform, $0.5 million of terminated and ongoing
transaction and legal costs relating to mergers and acquisition
activity, $0.4 million of SOX remediation costs, and $0.6 million
of advisory costs relating to a cybersecurity incident detected in
Q4 2021.
|
Adjusting Items Non-GAAP Measures
In 2021, we began adjusting for share-based payment expenses,
amortization of acquired intangible assets and all gains or losses
on disposition of property, plant and equipment, which we did not
consider to be part of our normal operating results. These
adjustments in 2021 have been applied retrospectively to all
periods presented.
Adjusting items during the three months and year ended
March 31, 2022 were:
Recognized in the first quarter of 2022
Adjusting items during the three months and year ended
March 31, 2021 were:
- $5.4 million ($3.4 million after tax, or $0.03 per diluted share) share based payments
expense.
- $8.5 million ($6.4 million after tax, or $0.06 per diluted share) amortization of acquired
intangible assets primarily from the acquisitions of Iron Planet,
SmartEquip, and Rouse.
- $169.8 million ($145.5 million after tax, or $1.30 per diluted share) gain recognized on the
disposition of property, plant and equipment of which $169.1 million related to the sale of a property
located in Bolton, Ontario.
- $9.6 million ($8.0 million after tax, or $0.07 per diluted share) of acquisition-related
costs related to the proposed acquisition of Euro Auctions and the
completed acquisitions of SmartEquip and Rouse.
- $1.3 million ($1.1 million after tax, or $0.01 per diluted share) gain due to the change
in fair value of derivatives to manage our exposure to foreign
currency exchange rate fluctuations on the purchase consideration
for the proposed acquisition of Euro Auctions.
- $2.3 million ($1.7 million after tax, or $0.02 per diluted share) of non-recurring
advisory, legal and restructuring costs, which include $0.9 million ($0.6
million after tax, or $0.01
per diluted share) related to severance and retention costs in
connection with the restructuring of our IT team driven by our
strategy to build a new digital technology platform, $0.5
million ($0.3 million after tax, or
$0.00 per diluted share) of
terminated and ongoing transaction and legal costs relating to
mergers and acquisition activity, $0.4
million ($0.3 million after
tax, or $0.00 per diluted share) of
SOX remediation costs, and $0.6
million ($0.4 million after
tax, or $0.00 per diluted share) of
advisory costs relating to a cybersecurity incident detected in Q4
2021.
Recognized in the first quarter of 2021
- $3.8 million ($0.1 million after tax, or $0.00 per diluted share) share based payments
expense.
- $6.6 million ($4.9 million after tax, or $0.04 per diluted share) amortization of acquired
intangible assets primarily from the acquisitions of Iron Planet
and Rouse.
- $2.9 million ($2.8 million after tax, or $0.03 per diluted share) of acquisition-related
costs related to the acquisition of Rouse.
View original
content:https://www.prnewswire.com/news-releases/ritchie-bros-reports-first-quarter-2022-results-301542920.html
SOURCE Ritchie Bros.
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