Ritchie Bros. Auctioneers Reports Record Results for Quarter Ended March 31, 2005 and Declares Dividend
VANCOUVER, British Columbia--May 3, 2005--Ritchie Bros. Auctioneers Incorporated (TSX:RBA) today announced its results for the quarter ended March 31, 2005. The Company's net earnings for the quarter were $13.7 million, or $0.40 per diluted weighted average share, compared to $6.6 million, or $0.19 per diluted weighted average share, in the first quarter of 2004. Net earnings in the first quarter of 2005 include a $3.3 million after tax gain recorded on the sale of land that was not used in the Company's operations. Excluding this gain, net earnings would have been $10.4 million, or $0.30 per diluted weighted average share. All dollar amounts in this release are presented in United States dollars.Gross auction sales for the quarter ended March 31, 2005 were $456 million, 20% higher than the gross auction sales reported for the first quarter of 2004. This is the largest first quarter gross auction sales in the Company's history. Particularly strong sales volumes in the United States and Canada contributed to the growth in gross auction sales over the prior year's first quarter.
Auction revenues in the quarter ended March 31, 2005 were $48.6 million, an increase of 29% over the equivalent period in the prior year. Auction revenues as a percentage of gross auction sales were 10.65% this year compared to a rate of 9.95% in the first quarter of the prior year.
During the quarter ended March 31, 2005, Ritchie Bros. sold more than 40,000 lots for over 5,200 consignors at 29 industrial auctions attracting nearly 50,000 registered bidders. The Company also held four smaller agricultural auctions during the quarter.
The Company continued its global expansion during the quarter ended March 31, 2005, opening its new permanent auction site in Sacramento, California and establishing a new regional auction unit in Livorno, Italy. The Company also commenced construction of a new permanent auction site in Nashville, Tennessee. Subsequent to March 31, 2005, the Company completed the acquisition of an approximately 125-acre property in Houston, Texas, on which it intends to construct a new permanent auction site.
Peter Blake, the Company's CEO, remarked: "I am happy to report that the momentum we experienced in 2004 has carried forward into the first quarter of 2005. We saw record-breaking performances at several of our auction sites, including the largest auction in the Company's history at our permanent auction site in Orlando, Florida in February. We are continuing to see large audiences of bidders coming from around the world to compete vigorously for good quality, late model industrial assets. Demand is strong while supply remains tight, and prices at our auctions have reflected this situation. Our sales force is working hard to generate consignments and deliver value to our customers. We are excited about the remainder of 2005, as well as the years ahead."
During the quarter, bidders participating in Ritchie Bros. auctions using the Company's rbauctionBid-Live Internet bidding service purchased industrial assets with a value of over $63 million, a nearly 50% increase over the equivalent period in 2004. The rbauctionBid-Live service continues to complement the Company's live auctions, by increasing the average size and diversity of the bidding audiences. Internet bidders represent approximately 20% of the registered bidders at Ritchie Bros. auctions and are the buyers or runner up bidders on roughly 15% of all lots available to online bidders.
The Board of Directors today announced the declaration of a quarterly cash dividend of 11 cents per common share payable on June 17, 2005 to shareholders of record on May 2, 20057, 2005.
Gross auction sales represent the aggregate selling prices of all items sold by the Company during the period and are not presented in the Company's consolidated financial statements; the comparable financial statement measure is auction revenues, consisting primarily of commissions earned on consigned equipment and net profit on the sale of equipment purchased by Ritchie Bros. and sold in the same manner as consigned equipment.
About Ritchie Bros.
Ritchie Bros. is the world's largest auctioneer of industrial equipment, operating through over 110 locations in more than 25 countries around the world. The Company sells, through unreserved public auctions, a broad range of used and unused industrial equipment including trucks and equipment used in the construction, transportation, mining, forestry, petroleum, materials handling, marine and agricultural industries. Ritchie Bros. maintains a website at www.rbauction.com.
Consolidated Statements of Earnings Three months Three months
(USD thousands, except share ended ended
and per share amounts) March 31, 2005 March 31, 2004
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(unaudited) (unaudited)
Gross auction sales $ 456,260 $ 378,642
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Auction revenues $ 48,578 $ 37,670
Direct expenses 5,484 4,547
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43,094 33,123
Expenses:
Depreciation 3,399 2,962
General and administrative 22,556 19,417
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Earnings from operations 25,955 10,744
Other income (expenses):
Interest expense (679) (960)
Gain on disposition of capital assets 5,448 48
Other income 198 63
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Earnings before income taxes 22,106 9,895
Income taxes 8,431 3,305
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Net earnings $ 13,675 $ 6,590
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Net earnings per share (1) $ 0.40 $ 0.19
Net earnings per share - diluted (1) $ 0.40 $ 0.19
Weighted average shares outstanding 34,287,108 34,024,340
Diluted weighted average
shares outstanding 34,617,223 34,406,316
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Net earnings in accordance with GAAP $ 13,675 $ 6,590
Less: after-tax gain on
sale of excess land (2) (3,296) -
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Adjusted net earnings $ 10,379 $ 6,590
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Adjusted net earnings per share $ 0.30 $ 0.19
Adjusted net earnings per share -
diluted $ 0.30 $ 0.19
(1) Net earnings per share for the quarter ended March 31, 2004 has
been restated on a retroactive basis to reflect the two-for-one
split of the Company's common shares that occurred on May 4,
2004.
(2) Net earnings for the quarter ended March 31, 2005 included a
$5,493 gain ($3,296 after tax) recorded on the sale of excess
land. The Company does not believe that this gain is part of
the normal course of its operations.
Selected Balance Sheet Data
(USD thousands) March 31, 2005 December 31, 2004
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(unaudited)
Current assets $ 311,154 $ 171,302
Current liabilities 265,403 134,431
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Working capital (including cash) 45,751 36,871
Total assets 576,269 442,409
Long-term debt 4,154 10,792
Total shareholders' equity 298,790 289,264
Selected Operating Data
(unaudited) Three months ended Three months ended
March 31, 2005 March 31, 2004
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(unaudited) (unaudited)
Auction revenues as percentage
of gross auction sales 10.65% 9.95%
Number of consignors
(industrial auctions) 5,204 4,671
Number of bidders
(industrial auctions) 49,559 45,874
Number of buyers
(industrial auctions) 13,218 11,904
Number of permanent auction sites 23 22
Number of regional auction units 7 7
Ritchie Bros. Auctioneers Incorporated (TSX:RBA)