Rb Global, Inc. · TSX:RBA

Rb Global — Ritchie Bros. Auctioneers — Q2 2020 Earnings Presentation

25 slides from Rb Global's earnings presentation, Aug 7, 2020

  1. Slide 1: August 7, 2020

    August 7, 2020 1 1

  2. 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

  3. Slide 3: Ann Fandozzi, Chief Executive Officer

    Ann Fandozzi Chief Executive Officer 3

  4. Slide 4: Second Quarter - CEO Perspectives

    Second Quarter - CEO Perspectives Our True North Performance  Be there for our consignors when they need liquidity  Strong Q2 amidst an uncertain environment the most while keeping the health and safety of our  Continue to drive solid demand and price employees and customers at the forefront perf

  5. Slide 5: Strong Performance against our Q2 Priority Focus Areas

    Strong Performance against our Q2 Priority Focus Areas  Sustained vigilance on hygiene, disinfection protocols and social HEALTH AND SAFETY distancing guidelines OF OUR EMPLOYEES  Continue to work-from-home policy & CUSTOMERS  Mandatory safety (PPE) gear for our team members (i.e. masks+)  Messa

  6. Slide 6: Sharon Driscoll, Chief Financial Officer

    Sharon Driscoll Chief Financial Officer 6

  7. Slide 7: Second Quarter Highlights

    Second Quarter Highlights All amounts In USD unless otherwise stated YTD Cashflow GTV TOTAL REVENUE REPORTED ADJUSTED from Operations (in billions) (in millions) EPS EPS (in millions) Flat $1.5 Flat YoY $389 -1% $0.49 $0.54 +10% $198 +24% YoY  Sustained comprehensive global RBA team response to COV

  8. Slide 8: Second Quarter Consolidated Performance ($mm)

    Second Quarter Consolidated Performance ($mm) SERVICE INVENTORY SALES OPERATING TOTAL REVENUE NET INCOME REVENUE REVENUE INCOME Flat - 2% - 1% + 14% -2% YoY 393.2 389.1 88.8 54.1 53.1 234.6 234.1 77.9 158.6 154.9 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 • 7% decrease in • Total inventory sa

  9. Slide 9: Auctions & Marketplaces - Service Revenue

    Auctions & Marketplaces - Service Revenue Flat Year-Over-Year Service revenue driven by negative impacts of Covid-19 constraints in our International and Government business units, offset by higher fee revenue from fee harmonization and asset mix  US Service revenue +5%  Canada Service revenue +2%

  10. Slide 10: Auctions & Marketplaces – Inventory Sales Revenue

    Auctions & Marketplaces – Inventory Sales Revenue A&M INVENTORY SALES REVENUE (MIX) Declined 2% due to $200 cycling a large inventory 15.0% 11.2% 10.6% 10.3% 10.4% deal as part of the $94m $150 8.2% 7.9% Columbus, OH auction 10.0% $100 from 2Q19 and lower 5.0% $50 volumes in our Int’l $- $131 $159 $

  11. Slide 11: SG&A Expenses

    SG&A Expenses SG&A dollars increased 3% to $100.6 million 2Q20 70.8 14.6 4.8 10.4 $100.6 primarily due to higher incentive expenses SG&A resulting from stronger Expense business performance 2Q19 63.9 14.6 9.2 10.0 Breakdown $97.7 and a one-time Covid-19 in millions (USD) incentive accrual, partially

  12. Slide 12: Liquidity and Balance Sheet Strength

    Liquidity and Balance Sheet Strength  Ending 6/30 cash and equivalents of $390m plus restricted cash of $148m Cash / Liquidity  Available credit facilities of $640m of which $470m is unused at June 30th  TTM OFCF of $349m is up 112% over comparative period  TTM ended 6/30, repaid $70m of term lo

  13. Slide 13: Balance Sheet & Liquidity Metrics

    Balance Sheet & Liquidity Metrics 2020 Balance sheet and liquidity metrics Adjusted Net Debt/ TTM Operating TTM Return On Net Capex Spend Adjusted EBITDA Free Cash Flow Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) 2Q20 2Q19 2Q20 2Q20 2Q19 2Q20 2Q19 $348.7M $164.5M $19.3 M 0.9X 1.8X 10.1% 8.3% 1

  14. Slide 14: Ann Fandozzi, Chief Executive Officer

    Ann Fandozzi Chief Executive Officer 14

  15. Slide 15: A Platform Of Opportunity

    A Platform Of Opportunity True Omni-Channel Marketplace for Products and Services 🗝🗝Inspections 🗝🗝Decision making tools 🗝🗝Storage 🗝🗝Market trends 🗝🗝RB Asset valuator 🗝🗝Appraisals Services Data Insights 🗝🗝RB Price estimator 🗝🗝Redeploy 🗝🗝R&R 🗝🗝Reports and dashboards 🗝🗝More……

  16. Slide 16: Current Trends and Looking Forward

    Current Trends and Looking Forward Q3 PRIORITIES MAINTAIN BALANCE HEALTH AND SAFETY CUSTOMER SHEET STRENGTH & OF OUR EMPLOYEES EXPERIENCE FINANCIAL & CUSTOMERS FLEXIBILITY Q3 CONSIDERATIONS The pandemic will continue to cloud the outlook in Q3 Risks Opportunities  Covid-19 2nd wave drives new restr

  17. Slide 17: Q&A Members of the RBA Management Team

    Q&A Members of the RBA Management Team 17

  18. Slide 18: Appendix

    Appendix rD RITCHIEBROS. MOVE | BUILD | GROW

  19. Slide 19: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 19

  20. Slide 20: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 20

  21. Slide 21: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 21

  22. Slide 22: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 22

  23. Slide 23: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 23

  24. Slide 24: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 24

  25. Slide 25: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures 25

Ritchie Bros. Auctioneers — Q2 2020 Earnings Presentation on 6ix