/C O R R E C T I O N from Source -- Ritchie Bros. Auctioneers/
In c5138 transmitted on Tuesday, November 3, 2009, an error
occurred in the second paragraph. Under "Quarterly dividend" the dividend
payable and record dates were misstated. Correct copy follows:
Ritchie Bros. Auctioneers reports strong results through the third
quarter of 2009
Quarterly dividend
The Company is also announcing the declaration of another quarterly cash dividend of
Gross auction proceeds and auction revenues
Gross auction proceeds for the nine months ended
The Company achieved gross auction proceeds of
Net earnings for the quarter
Net earnings for the three months ended
Numbers of bidders, buyers and sellers
The Company had almost 247,000 bidder registrations at its unreserved industrial auctions in the first nine months of 2009, of which almost 72,000 were successful buyers. In the first nine months of 2008, the Company had almost 198,000 bidder registrations, of which almost 60,000 were buyers.
Ritchie Bros. worked with a large number of truck, equipment and other asset sellers in the first nine months of 2009, selling close to 209,000 lots on behalf of over 27,000 consignors. In the first nine months of 2008, Ritchie Bros. sold close to 178,000 lots for over 27,000 consignors.
Average Ritchie Bros. auction
The Company's auctions varied in size over the 12 months ended
Online bidding statistics
Ritchie Bros. sold over
Summary comments
"We are very pleased with our sustained earnings per share growth in 2009, as we continue to demonstrate success executing our strategy in the face of challenging market conditions in some of our markets. The ongoing uncertainty in the market has been impacting our customers' decision making, particularly in the
"Our business model and long term growth strategy remain intact in spite of the challenging market conditions," continued
The Company defines adjusted net earnings as financial statement net earnings excluding the after-tax effects of excess property sales and significant foreign exchange gains or losses resulting from financing activities that are not expected to recur, and has provided a reconciliation below. Adjusted net earnings is a non-GAAP financial measure that does not have a standardized meaning, and is therefore unlikely to be comparable to similar measures presented by other companies. The Company believes that comparing adjusted net earnings as defined above for different financial periods provides more useful information about the growth or decline of its net earnings for the relevant financial period and identifies the impact of items which the Company does not consider to be part of its normal operating results.
Gross auction proceeds represent the total proceeds from all items sold at Ritchie Bros. auctions. The Company's definition of gross auction proceeds may differ from those used by other participants in its industry. Gross auction proceeds is an important measure the Company uses in comparing and assessing its operating performance. It is not a measure of the Company's financial performance, liquidity or revenue and is not presented in its consolidated financial statements. The Company believes that auction revenues, which is the most directly comparable measure in its Statements of Operations, and certain other line items, are best understood by considering their relationship to gross auction proceeds. Auction revenues represent the revenues earned by Ritchie Bros. in the course of conducting its auctions, and consist primarily of commissions earned on consigned equipment and net profit on the sale of equipment purchased by the Company and sold in the same manner as consigned equipment.
About Ritchie Bros.
Established in 1958, Ritchie Bros. Auctioneers (NYSE andTSX: RBA) is the world's largest industrial auctioneer, selling more equipment to on-site and online bidders than any other company in the world. The Company has over 110 locations in more than 25 countries, including 39 auction sites worldwide. Ritchie Bros. sells, through unreserved public auctions, a broad range of used and unused industrial assets, including equipment, trucks and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum and marine industries. The Company maintains a web site at www.rbauction.com and sponsors an equipment wiki at www.RitchieWiki.com.
Earnings Conference Call
Ritchie Bros. is hosting a conference call to discuss its financial results for the nine months ended
Forward-looking Statements
The discussion in this press release relating to future events or operating periods contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties, including, in particular, statements regarding anticipated results for future periods; growth and demand for our services during challenging economic times; and our business model and growth strategy. These risks and uncertainties include: the numerous factors that influence the supply of and demand for used equipment; fluctuations in the market values of used equipment; seasonal and periodic variations in operating results; actions of competitors; the success of the Company's online bidding initiatives; economic and other conditions in local, regional and global markets; ongoing access to capital; our ability to attract and retain key employees, develop additional auction sites and successfully execute our strategic initiatives; and other risks and uncertainties as detailed from time to time in the Company's SEC and Canadian securities filings, including the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations for the year ended
Consolidated Statements of Operations Nine months Nine months
(Amounts in table and related ended ended
footnotes are in USD thousands, September 30, September 30,
except share and per share amounts) 2009 2008
(unaudited) (unaudited)
------------------------------
Gross auction proceeds $ 2,600,910 $ 2,713,233
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Auction revenues $ 280,068 $ 273,125
Direct expenses 35,481 36,736
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244,587 236,389
Expenses
Depreciation and amortization 22,419 18,223
General and administrative(1) 123,308 126,221
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Earnings from operations 98,860 91,945
Other income (expense)
Interest expense (365) (743)
Interest income 1,770 3,618
Foreign exchange gain (loss)(1)(2) (737) 523
Gain (loss) on disposition of
capital assets(3) (138) 6,813
Other income 1,471 992
-------------- -------------
Earnings before income taxes 100,861 103,148
Income taxes 29,243 28,888
-------------- -------------
Net earnings(2)(3) $ 71,618 $ 74,260
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-------------- -------------
Net earnings per share $ 0.68 $ 0.71
Net earnings per share - diluted $ 0.68 $ 0.70
Weighted average shares outstanding 105,064,864 104,676,734
Diluted weighted average shares outstanding 105,681,072 105,711,309
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Net earnings in accordance
with Canadian GAAP $ 71,618 $ 74,260
Less: after-tax foreign exchange
impact of financing transactions(2) (664) (708)
Less: after-tax gain on sale of property(3) - (7,295)
-------------- -------------
Adjusted net earnings $ 70,954 $ 66,257
-------------- -------------
-------------- -------------
Adjusted net earnings per share $ 0.68 $ 0.63
Adjusted net earnings per share
- diluted $ 0.67 $ 0.63
(1) Figures have been reclassified to conform with presentation adopted
at December 31, 2008.
(2) Net earnings for the first nine months of 2009 included a foreign
exchange gain of $759 ($664 after tax, or $0.01 per diluted share) on
U.S. dollar denominated bank debt held by a subsidiary that has the
Canadian dollar as its functional currency. The equivalent amount in
the first nine months of 2008 was a foreign exchange loss of $2,057
($1,759 after tax, or $0.02 per diluted share). The bank debt was
assigned in January 2009 to a U.S. dollar denominated subsidiary to
eliminate this foreign exchange exposure. In addition, the foreign
exchange gain recorded in the first nine months of 2008 included the
reclassification to net earnings of foreign currency translation
gains of $2,769 ($2,467 after tax, or $0.02 per diluted share). These
gains were previously recorded in the cumulative translation
adjustment account and were reclassified in the first nine months of
2008 as a result of the settlement of a number of foreign currency
denominated intercompany loans that had been considered long-term in
nature. No long-term intercompany loans were settled in the first
nine months of 2009 that resulted in a significant foreign exchange
adjustment. The Company has highlighted these amounts because it does
not expect such foreign exchange gains or losses relating to
financial transactions to recur in future periods.
(3) Net earnings for the first nine months of 2008 included total gains
of $8,304 ($7,295 after tax) recorded on the sale of excess property.
The Company highlighted this amount because it does not consider this
gain to be part of the normal course of its operations.
Consolidated Statements of Operations Three months Three months
(Amounts in table and related ended ended
footnotes are in USD thousands, September 30, September 30,
except share and per share amounts) 2009 2008
(unaudited) (unaudited)
------------------------------
Gross auction proceeds $ 693,288 $ 767,718
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Auction revenues $ 75,934 $ 75,909
Direct expenses 10,515 10,240
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65,419 65,669
Expenses
Depreciation and amortization 7,823 6,636
General and administrative(1) 42,106 41,294
-------------- -------------
Earnings from operations 15,490 17,739
Other income (expense)
Interest expense (139) (229)
Interest income 550 1,272
Foreign exchange loss(1)(2) (1,267) (1,922)
Loss on disposition of capital assets (41) (497)
Other income 773 315
-------------- -------------
Earnings before income taxes 15,366 16,678
Income taxes 2,474 4,744
-------------- -------------
Net earnings(2) $ 12,892 $ 11,934
-------------- -------------
-------------- -------------
Net earnings per share $ 0.12 $ 0.11
Net earnings per share - diluted $ 0.12 $ 0.11
Weighted average shares outstanding 105,228,846 104,759,284
Diluted weighted average shares outstanding 106,183,300 105,780,001
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Net earnings in accordance
with Canadian GAAP $ 12,892 $ 11,934
Less: after-tax foreign exchange
impact of financing transactions(2) - 1,091
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Adjusted net earnings $ 12,892 $ 13,025
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-------------- -------------
Adjusted net earnings per share $ 0.12 $ 0.12
Adjusted net earnings per share - diluted $ 0.12 $ 0.12
(1) Figures have been reclassified to conform with presentation adopted
at December 31, 2008.
(2) Net earnings for the third quarter of 2008 included a foreign
exchange loss of $1,276 ($1,091 after tax, or $0.01 per diluted
share) on U.S. dollar denominated bank debt held by a subsidiary that
has the Canadian dollar as its functional currency. The bank debt was
assigned in January 2009 to a U.S. dollar denominated subsidiary to
eliminate this foreign exchange exposure. The Company has highlighted
this amount because it does not expect such foreign exchange gains or
losses relating to financial transactions to recur in future periods.
Selected Balance Sheet Data September 30, December 31,
(USD thousands) 2009 2008
(unaudited)
------------------------------
Current assets $ 441,457 $ 193,940
Current liabilities 389,623 146,831
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Working capital $ 51,834 $ 47,109
Total assets 1,064,244 689,488
Long-term debt 128,533 67,411
Total shareholders' equity 534,597 465,162
Selected Operating Data (unaudited) Nine months Nine months
ended ended
September 30, September 30,
2009 2008
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Auction revenues as percentage of
gross auction proceeds 10.77% 10.07%
Number of consignments at industrial auctions 27,014 27,068
Number of bidders at industrial auctions 246,967 197,824
Number of buyers at industrial auctions 71,984 59,625
Number of permanent auction sites 31 30
Number of regional auction units 8 8
%SEDAR: 00010198E
For further information: Jeremy Black, Vice President, Business Development, Corporate Secretary, Phone: (778) 331-5500, Fax: (778) 331-4628, Email: [email protected]
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