Rb Global, Inc. · TSX:RBA
Rb Global — Ritchie Bros. Auctioneers — Q1 2020 Earnings Presentation
24 slides from Rb Global's earnings presentation, May 8, 2020
Slide 1: May 8, 2020
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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: Ann Fandozzi, Chief Executive Officer
Ann Fandozzi Chief Executive Officer 3
Slide 4: First Quarter - CEO Perspectives
First Quarter - CEO Perspectives Our True North Performance ▪ Be there for our consignors when they need liquidity ▪ Solid Q1 results in a challenging environment the most while keeping the health and safety of our ▪ Driving demand and price performance for our employees and customers at the forefro
Slide 5: COVID-19 Response
COVID-19 Response PRIORITIES BUSINESS CONTINUITY ▪ Health and Safety of our Employees, our Customers and their families ▪ Crisis Management Steering Team ▪ To ensure we continued to be there for our ▪ Work From Home Policy implemented on Customers March 16th ▪ Strictly adhere to all safety regulatio
Slide 6: Pivoting To Online Amid COVID-19
Pivoting To Online Amid COVID-19 Even before COVID-19…. Across all channels - 65% of our winning bids were coming in online1 COVID-19 highlighted that the spheres between our Live and Online realms are blurring, interconnected, and strengthen one another 1. Refers to full year 2019 winning bids 6
Slide 7: Sharon Driscoll, Chief Financial Officer
Sharon Driscoll Chief Financial Officer 7
Slide 8: First Quarter Highlights
First Quarter Highlights YTD Cashflow GTV TOTAL REVENUE REPORTED from Operations (in billions) (in millions) EPS (in millions) $1.1 -2% $273 -10% $0.21 +24% $4.1 -94% ▪ Comprehensive global RBA team response to COVID-19 with very successful pivot of our live auctions to online while protecting our e
Slide 9: First Quarter Consolidated Performance ($mm)
First Quarter Consolidated Performance ($mm) SERVICE INVENTORY SALES OPERATING TOTAL REVENUE NET INCOME REVENUE REVENUE INCOME + 6% - 31% - 10% + 1% + 26% 131.1 303.4 22.8 33.6 34.1 273.3 18.2 183.1 90.1 172.4 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 • 1% increase in • Total inventory sales
Slide 10: Auctions & Marketplaces - Service Revenue
Auctions & Marketplaces - Service Revenue Service revenue increase of 8% driven by higher fee revenue from fee harmonization, strong U.S. region rate performance and GovPlanet ▪ US Service revenue +17% ▪ Canada Service revenue -6% ▪ International Service revenue -23% A&M Service Revenue & mix as a %
Slide 11: Auctions & Marketplaces – Inventory Sales Revenue
Auctions & Marketplaces – Inventory Sales Revenue A&M INVENTORY SALES REVENUE (MIX) $200 15.0% Inventory sales revenue 11.8% 11.2% 10.6% 10.3% $150 decreased 31% driven by 8.2% 7.9% 10.0% $100 International/Orlando Supply softness and non- 5.0% $50 $158 $131 $159 $111 $114 $90 repeat of contracts in
Slide 12: SG&A Expenses
SG&A Expenses SG&A dollars increased 3% to $98.4 million 1Q20 62.5 15.6 10.3 10.0 $98.4 from additional 1Q20 investments in growth vs initiatives and travel, 1Q19 61.5 15.9 9.1 8.7 1Q19 $95.2 offset by lower share in millions (USD) based payment Employee Compensation Buildings/Facilities/ Technology
Slide 13: Liquidity and Balance Sheet Strength
Liquidity and Balance Sheet Strength ▪ Ending 3/31 cash and equivalents of $290m plus restricted cash of $66m Cash / Liquidity ▪ Available credit facilities of $640m of which $462m is unused at March 31st ▪ TTM OFCF of $228m is up 95% over comparative period ▪ TTM ended 3/31, repaid $68m of term loa
Slide 14: Balance Sheet & Liquidity Metrics
Balance Sheet & Liquidity Metrics 2020 Balance sheet and liquidity metrics Adjusted Net Debt/ TTM Operating TTM Return On Capex Spend Adjusted EBITDA Free Cash Flow Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) 1Q20 1Q19 2020 Capex Spend 1Q20 1Q19 1Q20 1Q19 $227.7M $116.9M Revised FY Range 1.3X
Slide 15: Ann Fandozzi, Chief Executive Officer
Ann Fandozzi Chief Executive Officer 15
Slide 16: A Platform Of Opportunity
A Platform Of Opportunity The scalability and agility of our multi-channel platform allowed us to quickly and effectively transition our business to 100% online for our customers We are meeting the needs of our customer in many ways… AUCTION PLATFORMS - Unreserved & Reserved Auctions SERVICES – Fina
Slide 17: Current Trends and Looking Forward
Current Trends and Looking Forward Q2 PRIORITIES MAINTAIN BALANCE HEALTH AND SAFETY CUSTOMER SHEET STRENGTH & OF OUR EMPLOYEES EXPERIENCE FINANCIAL & CUSTOMERS FLEXIBILITY Q2 CONSIDERATIONS Current conditions indicate that Q2 could be the most challenging quarter of 2020 Company Specific Macro Consi
Slide 18: Q&A Members of the RBA Management Team
Q&A Members of the RBA Management Team 18
Slide 19: Appendix
Appendix rb RITCHIEBROS.
Slide 20: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 20
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 21
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
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