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Over $3.8 billion of equipment sold through Ritchie Bros. auctions in
2013, including a record $1.1 billion during the Company's fourth
All dollar amounts are presented in U.S. dollars unless otherwise
VANCOUVER, Dec. 20, 2013 /PRNewswire/ - Ritchie Bros. Auctioneers Incorporated
(NYSE and TSX: RBA), the world's largest industrial auctioneer, sold
approximately $3.8 billion of equipment at 356 unreserved auctions
around the world in 2013. This represents a 3% decrease in gross
auction proceeds (GAP) compared to the record GAP the Company generated
last year. During the fourth quarter of 2013, the Company achieved
gross auction proceeds of $1.1 billion, a record for the fourth quarter
and an increase of 10% compared to the same quarter of 2012.
Ritchie Bros. conducted its final unreserved auctions of 2013 yesterday,
in: Chehalis, Washington; Raleigh-Durham, North Carolina; and, St.
Louis, Missouri. The Company plans to release its full audited
financial statements and Management's Discussion and Analysis for 2013
on March 4, 2014.
"We achieved some notable milestones during 2013," said Peter Blake, CEO
of Ritchie Bros. "In Canada, our most established market, we continued
to grow and again surpassed gross auction proceeds of over $1 billion.
We also held our first auctions in both China and Finland, and reached
a new record for online bidders and buyers. In fact, our online bidders
purchased more than $1.4 billion of equipment in 2013, or approximately
37% of our total sales. We're pleased that our customers are finding
convenience through our online bidding option, and comfort in the
ability to test and inspect the equipment being sold in our yards
before each auction. More than 43,000 consigners trusted us to sell
their equipment at our industrial auctions during the year, and over
425,000 potential buyers registered to bid on items."
Mr. Blake continued, "This was an important year for our business. We
had a focused strategy to grow our sales force and improve the
performance of our underwritten (or 'at risk') business. On both
counts, we have made great progress. During 2013 we grew our sales
force to the largest it's ever been, and we continued to invest in new
technology tools for our sales team that will provide better insight
into our customer base, enhance our service levels and improve sales
productivity. As well, the much improved performance of our
underwritten business allowed us to achieve record quarterly auction
revenue rates during 2013. We also successfully launched
EquipmentOne.com, a new online non-auction service offering that has
allowed us to reach new customers and broaden the solutions we offer
"Having made important investments in our auction platform over the last
several years, our worldwide network of 44 sites is now extremely well
equipped to handle expanding auction volumes. Our focus going forward
is on driving growth in gross auction proceeds to deliver the earnings
leverage that exists in our model."
Ritchie Bros. increased its quarterly cash dividend in August 2013, and
paid out total dividends during the year of $53.9 million, compared to
$50.0 million in 2012.
Industrial Auction Metrics:
Year ended Dec. 31, 2013
Year ended Dec. 31, 2012
Number of industrial auctions
Average Industrial Auction:
Year ended Dec. 31, 2013
Year ended Dec. 31, 2012
Gross auction proceeds (GAP)
Online auction bidding
Ritchie Bros. attracted record online bidder registrations and sold
approximately $1.4 billion of equipment, trucks and other assets to
online bidders in 2013, an 8% increase over 2012 and the highest amount
ever sold online by the Company in one year.
Auction site network expansion
During 2013 Ritchie Bros. opened three new auction sites. On March 19,
2013, the Company opened a new permanent auction site in Geelong
(Melbourne), Victoria, Australia. This is the second permanent auction
site in Australia, complementing Ritchie Bros. existing site in
Brisbane. On April 18, 2013, the Company opened a regional auction site
in Beijing, China - Ritchie Bros.' first auction site in China. On
October 11, 2013, the Company opened a regional auction site in
Manchester (Hooksett), New Hampshire, US. This site was opened to
replace the Company's prior site in Hartford, Connecticut, as the
Manchester location is more accessible and convenient for customers.
First auction in China
Ritchie Bros. held its first ever unreserved auction in China on April
18, 2013, and its second unreserved auction there on November 21, 2013.
Ritchie Bros. auctions in China are the culmination of many years
working with Chinese authorities and equipment owners to establish a
convenient and transparent channel for used equipment transactions in
China, and the export of equipment from China through the Tianzhu Free
Six-day auction in Orlando, Florida breaks online sales record
Ritchie Bros. held its largest auction of the year in Orlando, Florida
on February 18 - 23, 2013. This six-day auction broke the Company
record for total online sales at one auction, as online buyers
generated more than $53 million in GAP, or 31% of the $176 million of
total GAP generated at the auction.
Over CA$1 billion in sales achieved for second consecutive year in
For the second consecutive year, Ritchie Bros. sold more than CA$1
billion of equipment and trucks in its Canadian auctions. The milestone
was achieved at the Ritchie Bros.' unreserved public auction in
Edmonton, AB on December 12 - 13, 2013. Other 2013 highlights from
Ritchie Bros. Canadian auctions include:
The six auctions at Ritchie Bros. Edmonton, AB site surpassed CA$425
million, a record for annual sales at the site
A record level of online buyers at the Edmonton, AB auction on April 24
- 26, 2013, where more than CA$36 million of equipment was purchased by
The largest agricultural auction in Ritchie Bros. history was held in
Saskatoon, SK on December 3, 2013, where more than CA$43 million of
agricultural equipment was sold
Ritchie Bros. Financial Services finances over CA$100 million in 2013
Ritchie Bros. Financial Services (RBFS) provided over CA$100 million of
financing to equipment buyers during 2013, a record for the business.
This represents a 122% increase in activity over the prior year and
continued growth since its inception in July 2011. RBFS works with
select lending partners to find financing solutions for customers
purchasing equipment, including loans and lease-to-own programs. RBFS
does not utilize Company capital in its financing activities.
Launch of Ritchie Bros. EquipmentOne
Ritchie Bros. commercially launched Ritchie Bros. EquipmentOne on April
8, 2013. Complementary to the Company's flagship unreserved auction
business, Ritchie Bros. EquipmentOne (www.EquipmentOne.com) is a safe and secure online marketplace for the private sale of
equipment and materials where buyers and sellers can negotiate,
complete and settle their transactions. This new solution provides
equipment owners with the ability to control the selling price and the
process during the sale of their items, and allows the Company to reach
new customers whose needs differ from those attracted to Ritchie Bros.'
The Ritchie Bros. website (www.rbauction.com), which is a gateway to the Company's online bidding system and
showcases upcoming auctions and equipment to be sold, attracted more
than 6.3 million unique visitors in 2013, a 12% increase compared to
last year. The website was viewed over 14.7 million times during 2013,
an increase of 15% compared to the prior year.
There are currently 77 unreserved auctions on the 2014 Ritchie Bros.
auction calendar at www.rbauction.com, which begins with a two-day auction in Houston, Texas on February 5 &
6, to be followed by auctions in:
Phoenix, Arizona on February 12, 2014
Tipton, California on February 14, 2014
Orlando, Florida (a six-day auction) on February 17 - 22, 2014
About Ritchie Bros.
Established in 1958, Ritchie Bros. (NYSE and TSX: RBA) is the world's
largest seller of used equipment for the construction, transportation,
agriculture, material handling, energy, mining, forestry, marine and
other industries. Ritchie Bros. TM solutions make it easy for the world's builders to buy and sell
equipment with confidence, including live unreserved public auctions
with on-site and online bidding (rbauction.com), the EquipmentOneTM secure online marketplace (EquipmentOne.com), a professional corporate asset management program, and a range of
value-added services, including equipment financing for customers
through Ritchie Bros. Financial Services (rbauctionfinance.com). Ritchie Bros. has operations in more than 25 countries, including 44
auction sites worldwide. Learn more at RitchieBros.com.
Gross auction proceeds (GAP) represents 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 Consolidated Income Statements, 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.
Forward looking statements
This press release may contain forward-looking information. Such forward
looking information involves material assumptions, risks and
uncertainties, certain of which are beyond the control of Ritchie Bros.
Such assumptions, risks and uncertainties include, without limitation,
factors influencing the supply of and demand for used equipment,
fluctuations in market conditions and values of used equipment,
seasonal and periodic variations in operating results, actions of
competitors, the success of the Company's new initiatives, economic and
other conditions in local, regional and global markets, and other risks
and uncertainties as detailed from time to time in the Company's
securities filings. Ritchie Bros.' actual achievements could differ
materially from those expressed in, or implied by, this forward-looking
information and, accordingly, no assurances can be given that any of
the events anticipated by the forward-looking information will
transpire or occur. Any forward-looking information is made as at the
date of this press release and Ritchie Bros. does not undertake any
obligation to update publicly or to revise any of the included
forward-looking information, except as may be required by applicable
SOURCE Ritchie Bros. Auctioneers
Image with caption: "More than 301,000 equipment items were sold by Ritchie Bros. in 2013 (CNW Group/Ritchie Bros. Auctioneers)". Image available at: http://photos.newswire.ca/images/download/20131220_C6086_PHOTO_EN_35205.jpg
Image with caption: "In 2013, Ritchie Bros. sold equipment for more than 43,000 sellers, and registered more than 425,000 potential buyers. (CNW Group/Ritchie Bros. Auctioneers)". Image available at: http://photos.newswire.ca/images/download/20131220_C6086_PHOTO_EN_35206.jpg
Image with caption: "Ritchie Bros. held its first ever unreserved auction in China on April 18, 2013. (CNW Group/Ritchie Bros. Auctioneers)". Image available at: http://photos.newswire.ca/images/download/20131220_C6086_PHOTO_EN_35207.jpg
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