Slide 1: Q1 2018 Earnings Review and Update
Auctioneers’ DELINERING RITCHIEBROS. [200 Q1 2018 EARNINGS REVIEW AND UPDATE RITCHIE BROS.
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: First Quarter 2018 Summary
First Quarter 2018 Summary GTV Total Revenue Agency Proceeds Diluted Earnings per Share (Non-GAAP) Reported Adjusted Reported Like for Reported Reported Like for Like (Non-GAAP) +29% Like +4% +30% +36% +10% +60% +33% Q1 Highlights Strong live auction performance with price Supply continues to be
Slide 5: First Quarter Auction Highlights
First Quarter Auction Highlights >70% of live industrial auctions posted year-on- year growth comps across major geographies Successful new BIG SPRING weekly featured auction in March $23 million in GTV Orlando, Florida Edmonton, Alberta Toronto, Ontario US$278 million US$47+ million US$28+ million
Slide 6: Q1 2018 Business & Financial Review
Q1 2018 Business & Financial Review Sharon Driscoll, Chief Financial Officer 6
Slide 7: Changes resulting from adoption of ASU-2014-09
Changes resulting from adoption of ASU-2014-09 Revenue from inventory contracts now presented on a gross basis and reported as separate revenue line with Total corresponding separate cost of inventory sold line Revenues Ancillary service and RB Logistical Services revenues now presented on a gro
Slide 8: Q1 Consolidated Financial Performance Overview
Q1 Consolidated Financial Performance Overview All figures unadjusted unless otherwise noted. (In $US Millions except EPS) GROSS TRANSACTION TOTAL AGENCY OPERATING DILUTED VALUE REVENUE PROCEEDS INCOME ADJUSTED (GTV) (non-GAAP) EPS (non-GAAP) 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 $1,16
Slide 9: Auctions and Marketplaces Segment – Agency Proceeds
Auctions and Marketplaces Segment – Agency Proceeds Agency proceeds rate (non-GAAP) increased 60 basis points to 13.5% due to continued strength in pricing environment and partial fee harmonization A&M Agency Proceeds A&M Agency Proceeds Rate % In US$,(000) $156,776 13.5% 12.9% $115,677 12.4% +36%
Slide 10: Other Services – 1st Quarter Insights
Other Services – 1st Quarter Insights Overall revenues improved 36% RBFS Revenues delivered solid 43% growth in the quarter RBFS Funded volume improved 53% Mascus delivering strong revenue growth of 30% RBFS RBFS Mascus Revenue Funded Volume Revenue In Thousands In Thousands In Thousands $4,
Slide 11: Cost of Services / SG&A
Cost of Services / SG&A Cost of Services and SG&A combined increased 41% versus last year primarily due to the inclusion of the acquisition and increased 7% on a like for like basis* Costs of Services and SG&A Expenses (in $ US Thousands) 2017 RB Only As a % of Agency Proceeds Costs of Services ($
Slide 12: Balance Sheet & Liquidity Metrics
Balance Sheet & Liquidity Metrics 1Q 2018 Balance sheet and liquidity metrics (all unadjusted unless otherwise noted) TTM Agency Adjusted Net Operating Proceeds Capex Debt/ TTM Return On Free Cash Flow Rate Adjusted EBITDA Invested Capital (non-GAAP) (non-GAAP) (non-GAAP) (non-GAAP) 1Q18 1Q17 1Q18 1
Slide 13: Strategic & Operational Update
Strategic & Operational Update Ravi Saligram, Chief Executive Officer 13
Slide 14: First Quarter Operational Update
First Quarter Operational Update A positive start to 2018 with continued focus on execution Q1 growth Record Q1 revenue Global CAT dealer volume RBFS revenue +43% quarter for GovPlanet up in Q1; 80 dealer Record Q1 in Asia; Mascus revenue +30% agreements now executed continued success in
Slide 15: Leveraging Technology
Leveraging Technology Unified live and on-line auctions RBA Mobile App operations management technology platform Launched in 2016… we’ve made significant progress MARS Project is underway… 50,000+ average users in Q1; up 60% from Q1 2017 Working 1st phase: Replacing the legacy 7% of GTV was pu
Slide 16: Evergreen Model (Post – Topic 606)
Evergreen Model (Post – Topic 606) New Revenue Recognition Standard has resulted in NO CHANGE to Evergreen targets (Average expectation over a 5 to 7 year period) High Single Digit Agency Proceeds Growth Rate to (Previously Revenue Growth Rate) Low Teens Evergreen metrics Low Double Digits EPS Growt
Slide 17: Q2 Perspective
Q2 Perspective April 2018 GTV: Q2 Considerations: April 2018 GTV was $456 million; a 29% increase Good start to April from April 2017 Equipment supply constraints still very tight in U.S. Good performance in Edmonton ($207 million • Could start easing by end of Q3/Q4 CAD$); providing additio
Slide 18: Q&A
Q&A Members of the RBA Management Team 18
Slide 19: Appendix
Appendix DELIVERING CHOICE
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
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 Continued from previous page… 27