Rb Global, Inc. · TSX:RBA
Rb Global — Ritchie Bros. Auctioneers — Q3 2017 Earnings Presentation
31 slides from Rb Global's earnings presentation, Nov 10, 2017
Slide 1: November 10, 2017
rb IRBN November 10, 2017 rbane
Slide 2: Forward looking statements and non-GAAP measures
Forward looking statements and non-GAAP measures Caution Regarding Forward-Looking Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable US and Canadian securities legislation (collectively, “forward-looking statements”), in
Slide 3: Opening Remarks
Opening Remarks Ravi Saligram, Chief Executive Officer
Slide 4: Q3 2017 Business & Financial Review
Q3 2017 Business & Financial Review Sharon Driscoll, Chief Financial Officer 4
Slide 5: Q3 Consolidated Financial Performance Overview
Q3 Consolidated Financial Performance Overview ▪ All figures unadjusted unless otherwise noted. (In $US Millions except EPS) GROSS TRANSACTION REVENUE OPERATING DILUTED DILUTED VALUE INCOME EPS ADJUSTED (GTV) EPS 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 $1,019 $999 $141 $129 $16.9 $2.3 $0.0
Slide 6: Consolidated Operating Expenses
Consolidated Operating Expenses ▪ Total Reported Operating expenses increased versus last year primarily due to the inclusion of the acquisition but declined on a Like For Like basis Reported Operating Expenses SG&A Composition Cost of Services ($) SG&A ($) (in $US thousands) (in $US thousands) $85,
Slide 7: New Segment Reporting
New Segment Reporting ▪ As of the third quarter of 2017, the Company announced a new reportable segment and a resulting change to its segment information. ▪ The change in presentation now distinguishes between revenues generated from transactional asset disposition services and revenues from non-tra
Slide 8: Auctions and Marketplaces Segment - GTV
Auctions and Marketplaces Segment - GTV ▪ Segment GTV increased 2% driven by the acquisition volumes but continue to be offset by significant equipment supply shortages in the US ▪ Lapping significant $76 million Columbus, OH non recurring auction occurring in September 2016 $1,500 Auctions and Mark
Slide 9: Auctions and Marketplaces Segment – Revenue
Auctions and Marketplaces Segment – Revenue ▪ Auctions and Marketplaces revenue increased 8% driven by growth due to the acquisition and strong international performance partially offset by lower volumes in Canada and US due to supply constraints ▪ Segment revenue rate expansion – improved 66 basis
Slide 10: Other Services Category – 3rd Quarter Insights
Other Services Category – 3rd Quarter Insights ▪ RBFS Revenues delivered solid 20% growth in the quarter ▪ RBFS Funded volume improved 15% ▪ Mascus delivering strong revenue growth of 19% driven by new customer acquisition RBFS RBFS Mascus Revenue Funded Volume Revenue In Thousands In Thousands In T
Slide 11: Balance Sheet & Liquidity Metrics – YTD 3Q17
Balance Sheet & Liquidity Metrics – YTD 3Q17 YTD Q3 2017 Balance sheet and liquidity metrics (all unadjusted unless otherwise noted) Adjusted Net Operating Capex Debt/ Return On Free Cash Flow Intensity Adjusted EBITDA Invested Capital (non-GAAP) (TTM) (non-GAAP) (non-GAAP) 3Q17 3Q16 3Q17 3Q16 2Q17
Slide 12: Forthcoming Q1 2018 Adoption of Revenue Recognition Standard ASU 2014-09
Forthcoming Q1 2018 Adoption of Revenue Recognition Standard ASU 2014-09 (Topic 606) While continuing to assess all potential impacts of adoption of ASU 2014-09, our current analysis indicates that the most significant change will be in the presentation of revenue generated from certain contracts an
Slide 13: Integration & Strategic Update
Integration & Strategic Update Ravi Saligram, Chief Executive Officer 13
Slide 14: Integration Progress Update
Integration Progress Update Making good progress against integration milestones… Post Close Q3 2017 Q4 2017 H1 2018 • Deployed training on ✓ • Territory Optimization to ✓ • Marketplace E launch ✓ • Drive combined Orlando “Trusted Advisor” role to integrate sales team, align Auction (Feb) • Integrate
Slide 15: Sales Force Integration
Sales Force Integration Salesforce coming together as ONE TEAM driving multi-channel solution sales Sales Productivity Q4 Actions TTM 3Q 2016 TTM 3Q 2017 ▪ On going focus on full suite of on-site and $12.5 Million per $11.1 Million per online solutions Revenue Revenue Producer Producer ▪ Strong focu
Slide 16: Launching Marketplace e – Moving Upstream
Launching Marketplacee – Moving Upstream Always On – On Your Terms ▪ Online marketplace with $200 million in equipment at any one time by combining EquipmentOne + the IP Daily Marketplace ▪ 6× more traffic to all listings ▪ Access to 1.9 million registered bidders through the IronPlanet site ▪ Listi
Slide 17: Transforming Our Operations
Transforming Our Operations Leverage technology to operationalize and enable multi-channel go-to-market approach and drive structural efficiencies ▪ Site closures: ▪ We are optimizing our live auction network by - Manchester, NH rationalizing sites with marginal returns and - Raleigh-Durham, NC focu
Slide 18: Will deliver total run-rate cost synergies of $20 million
Will deliver total run-rate cost synergies of $20 million End of 2017 End of 2018 $10M Run Rate $20M Run Rate ▪ Various SG&A efficiencies ▪ Auction Site Optimization ▪ Technology infrastructure ▪ Operational structure efficiencies 18
Slide 19: CAT Alliance gaining momentum
CAT Alliance gaining momentum Building a strong relationship as a trusted strategic partner with CAT Inc. and it’s dealer network Providing compelling solutions with a dedicated team Narita, Japan Dealer Momentum ▪ 40 of 47 North ▪ Ability to co-market American Dealer services Agreements signed at t
Slide 20: Q&A Members of the RBA Management Team
Q&A Members of the RBA Management Team 20
Slide 21: Appendix
Appendix DELIVERING CHOICE
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 22
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 23
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 24
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 25
Slide 26: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 26
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 27
Slide 28: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 28
Slide 29: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 29
Slide 30: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 30
Slide 31: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 31
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