Ritchie Bros. reports fourth quarter and 2016 annual results

VANCOUVER, Feb. 21, 2017

VANCOUVER, Feb. 21, 2017 /PRNewswire/ - Ritchie Bros. Auctioneers Incorporated (NYSE & TSX: RBA, the "Company" or "Ritchie Bros.") reports results for the three months and year ended December 31, 2016. 

During the fourth quarter, the Company generated $146.8 million of revenue, an 8% increase compared to revenues of $135.5 million in the fourth quarter last year, and net income attributable to stockholders for the fourth quarter of $27.9 million, a 40% decrease compared to the record $46.5 million of net income attributable to stockholders earned in the same period last year. There were a number of non-recurring events that affected Ritchie Bros.' fourth quarter results in 2016 and 2015. Included in the fourth quarter 2016 results were $6.8 million of pre-tax ($5.0 million of after-tax) expenses related to the early termination of pre-existing long-term debt due to recapitalization activities. The year ago quarter, Q4 2015, benefited from the after-tax impact of $15.2 million of non-recurring events. Removing these non-recurring events, adjusted net income attributable to stockholders (non-GAAP measure) during the fourth quarter of 2016 was $32.9 million, a 5% increase compared to $31.4 million in Q4 2015.

Diluted earnings per share ("EPS") attributable to stockholders during the fourth quarter was $0.26, a 40% decrease compared to diluted EPS attributable to stockholders of $0.43 in the fourth quarter of 2015. Adjusted EPS attributable to stockholders³ (non-GAAP measure) during the fourth quarter of 2016 was $0.30, a 3% increase compared to $0.29 in the year ago quarter.  $4.6 million of before-tax acquisition-related costs are included in both GAAP and adjusted (non-GAAP) fourth quarter 2016 results.

During the year ended December 31, 2016, the Company generated $566.4 million of revenue, a 10% increase compared to revenue of $515.9 million in 2015.  Net income attributable to stockholders during 2016 was $91.8 million, a 33% decline compared to $136.2 million in 2015, and diluted EPS attributable to stockholders was $0.85 in 2016, a 33% decrease relative to $1.27 in 2015.  Included in Ritchie Bros.' 2016 results were a $26.4 million ($28.2 million pre-tax), non-cash impairment charge related to EquipmentOne goodwill and customer relationships and a $5.0 million ($6.8 million pre-tax) charge related to the early termination of pre-existing debt.  Removing the impact of these non-recurring items, adjusted net income attributable to stockholders (non-GAAP measure) for 2016 was $123.3 million, a 2% increase from adjusted net income of $121.1 million in 2015. 

Diluted adjusted EPS attributable to stockholders (non-GAAP measure) for the year ended December 31, 2016 was $1.15, a 2% increase from $1.13 last year.  Included in both the Company's GAAP and adjusted (non-GAAP) 2016 results were $11.8 million of before-tax acquisition-related costs.

"In 2016, we laid a strong foundation to accelerate Ritchie Bros.' growth trajectory through several acquisitions, including Mascus, the premier listing service in Europe; Kramer Auctions, a regional agricultural auctioneer in Canada; Petrowsky Auctioneers, an industrial auctioneer in the U.S. North East; and acquired 100% ownership of Ritchie Bros. Financial Services.  Importantly, we announced the landmark acquisition of IronPlanet, a leading online equipment marketplace and a strategic alliance with Caterpillar.  Collectively, these initiatives are transforming Ritchie Bros. into a significant multichannel player with the unique ability to be a one-stop-shop solution provider to customers for their various asset management and disposition needs," said Ravi Saligram, CEO, Ritchie Bros.